Full text of Commercial and Financial Chronicle : December 17, 1953, Vol. 178, No. 5282

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7,

INVESTMENT BANKERS ASSOCIATION CONVENTION ISSUE

UNIVERSITY
OF MICHIGAN

18 1953

DEC

BUSINESS ADMINISTfiATIM
LIBRARY

Pat. Office

Reg. U. S

Volume 178;

EDITORIAL

It is conceivable that today, tomorrow and

the

day will mark the beginning of a train of
events destined to ensure the Republican party

Former

high and honored place in history. It is likewise
days will mark the

ton statements

from snowballing, says he has
"a sneaky feeling that Washington talk glosses over
some real difficulties in converting an inflationary boom
into sustained

prosperity.'' Stresses importance of pri¬
performance as element in maintaining
prosperity, and declares' "prosperity simply means full
utilization of productive resources."
Concludes, crucial
issue of 1954 is what policies big business management
and organized labor will follow.

other possibilities, but this
opportunity and this danger are both so great and >
course,

should dominate the delibera¬

tions of all those in conference with the President"

<

year.

the program of the party for the coming
These consultations begin today, and while

Just

three

months

I made

ago

*•'

,

,

/

title

was

usual

place,

an

the future,

in

is

true

future

who

place at the White House during these

all

President

are

in

speech

that

come

as

about

the

Edwin

G.

Nourse
we

of these talks are, however, readily available.

have

I

breathing any chill wind of
into public thinking.

of the list of essential requirements

dence

broad constructive

T.

Jerrold

Bryce

spontaneous

on

page

♦Remarks

96

Boston,

PICTORIAL

IBA

Mass.,

Dr.

Dec.

Nourse

10,

at

a

meeting

on

page

State and

Municipal

Securities
telephone:

HAnover 2-3700

90

to

at

Head

Office:

COMPANY




on

page

88

Invest¬
of the
64 incl.

State and

Municipal

.

OIL & MINING
Bonds

SECURITIES

in

Uganda

Bishopsgate,

London, E. C. 2
India,

In

Pakistan,

Ceylon,

Bend Department

Kenya, Tanganyika,
Zanzibar, and Somali-

Burma, Aden,

Uganda,

land

BANK & TRUST

26,

—

Ohio State University he entered the

Continued

SECTION—Pictures of incoming Officers and Governors of the
of America, also candid shots taken during course
Convention at Hollywood, Fla., appear on pages 49 to

the Government

been in

has

1953.

ol INDIA. LIMITED
Kenya Colony and

President,

Upon completing formal edu¬

WESTERN

Branches

Chemical

IBA

banking business for aljmost 40 years

of businessmen,

NATIONAL BANK
Bankers

Angeles,

Los

Co.,

employ
of the bond department of Harris Trust and Savings
Bank, Chicago.
Eight years later, after several years
in the United States Navy, he joined the Illinois Mercation

Association's recent Annual

U. S. Government,

&

Witter

his entire business career.

doubt or even business pru¬
Now these glowing proph-

private

investment

Association

Bankers

ment

of

Farrar,

K.

Cal.; and 'Walter
A. Schmidt, of
Schmidt, -Poole, Roberts & Parke,
Philadelphia, Pa.
Mr. T. Jerrold Bryce, ^the newly
elected

the

present situation; all
do is to refrain from

Continued

for the coming session of Congress, a

York; ^Holden

Dean

our

to

Ohio " Company, f

Ohio.

Smith, Barney & Co., Chicago;

prosperous as

as

Protectorate.

£4,562,500
£2,281,250

Capital
Capital

Authorised

Paid-up
Reserve

Fund-,

—£3,675,000

The Bank conducts every

banking

description of

and exchange

THE NATIONAL CITY BANK

Trusteeships and Executorships
also undertaken

1. A. H0GLE &
ESTABLISHED

CO.

1915

Exchanges
NEW YORK CITY
Denver
Spokane

>

THE

CHASE

Members of All Principal

OF NEW YORK

50 BROADWAY •

Salt Lake City

business.

Bond Dept.

Teletype: NY 1-708

Los

Angeles
and

*

of
Lewis
Miller, First National Bank of Chi¬
cago, Chicago; Ralph E. Phillips, of

New

-

that

the

of

Columbus,

easy

be

inherent in

Standards with which to measure the real suc¬

Continued

Hotel, Hollywood, i;
f

The Vice-Presi-*
h dents elected were Robert H. Craft,
American
Securities - Corporation, ]
r

outcome of forces and circumstances

fateful days.

a

*

yoai*, T. Jerrold Bryce, senior part- J
i/nerlof Clark, Dodge & Co., New York }
r
City, who succeeds Ewing T. Boles, {

optimism of those
confidently predicting that

the

1954 will

if the public is ever to know exactly

need for

J

r

1953—
or at least only some 5% below that
glowing record—and that this will

what the President and his advisers have decided

is, perhaps, the

Beach

Hollywood

the

prophet of disaster for our economy',
It

program

i

Fla., from Nov. 29 to Dec. 4 inclusive.
The Association
.elected as President for the ensuing

Safeguards." Some'peoples
seem to have interpreted those re-.~
marks as enrolling me in the ranks
of the pessimists about 1954 or as a;

another; some of-them are not. The
must disclose authoritatively and precisely

At the head

I
v

,

pression

scouted

cess

_

.

House
Association.; My
"Recession Fears and ;De-.

Clearing

Congress, nothing real¬

degree or

what takes

GeorgeM.

,

J

address torepre-/
sentatives. of the correspondent banks of the Memphis

ly-official has been forthcoming—and it is quite,
likely that some of the rumors have been "leaked*
for bargaining purposes or for determining the
drift of public opinion. Some of the reports which
have been in circulation are heartening in one

—that is,

President, T. Jerrold Bryce.

by SecyJ of the Treasury

•

theig have been various reports about what the
Administration will ask of

also

in this issue/ -*-'-•••
.J
-' '
' ; *
The Forty-second Annual Convention of the Investment Bankers Association of America was held at the
\

■»

about

Boles, and incoming

; *

i'

Humphrey, Ralph H. Demmler, William White, Ernest
R. Breech, Raymond J. Saulnier, Capt Edward V. Rickenbacker, and David M. Wood. - Text of these addresses,
also Committee Reports and other activities, given

business

vate

real that they

T.

Addresses

off recession and keep it

turies to come,"

so

Meeting at Hollywood Beach Hotel, Hollywood, Fla.,
Nov. 29-Dec. 4 is addressed by retiring President, Ewing

economist, commenting on Washing¬
that there is no danger of a serious busi¬

setback, and that government has means to ward

ness

country would be imperiled for decades, even cen¬

of

Advisers

Former government

beginning of a retrograde movement of the party
leading ultimately to the reestablishment of the
New Deal, the Fair Deal or some other similar
deal so firmly in power that the future of the

are,

Copy

a

42nd Annual Convention

Chairman,

President's Council of Economic

conceivable that these three

j There

NOURSE*

By EDWIN G.

.

next

a

Cents

Productive Capacity and
The Investment Bankets
Business Performance Association of America Holds

See
We

As

Price 40

7, N. Y., Thursday, December 17, 1953

New York

Number 5282

10

other Western

NATIONAL BANK
OF THE

CITY OF NEW

YORK

Cities

CANADIAN
BONDS & STOCKS

Arkansas Western
Gas Company
COMMON

Pqmduox Securities
(okporatio?!
40 Exchange Place.

New York b, N.Y*

IRA HAUPT&CO.
Members New York Stock Exchange
and other Principal Exchanges

111

Broadway. N. Y.

WOrth 4-6000

Teletype NY 1-702-3

WHitehall 4-8161

Boston

6

Teletype NY 1-2708

Telephone:

Enterprise 182<*

.

The Commercial and Financial Chronicle

2" (2362)

The Security I

position and trade in

We

Central

Public

Utility

Central

Public

Utility

1

This

Forum

a different group of experts
field from all sections of the country

in the investment and advisory

participate and give their

Central Indiana Gas

reasons

for favoring

(The articles contained in this forum

When Distributed

they to he regarded,

are

as an

offer

intended

not

are

particular security.

a

he,

to

EDWARD S. WILSON

Central Vermont Public Service

Manager. Research Department,
Hallgarten & Co., New York City

Citizens Utilities

Member, New

York

Eastern Utilities Assoc.
Sunbeam

Green Mountain Power

New England

Rockland Light
Rochester

Corporation

Hampshire

& Power

exceedingly

an

able and progressive management,
its

products have excellent trade

the
ings outlook

acceptance,

near-term

earn¬

nor

Hallgarten

Dept.,

s
favorable,
working capi¬

New York Hanseatic
Established

120

1920

Stock

New

Broadway,

B Arc lay 7-5660

stock,

York

a

5

Edward

£>.

Exchange

Stock

REctor

2-7815

vvi.ow.i

1

and

the

percentage

of

in

materially in the
near
future.
Over
promising

more

rea¬

the

to find

situation

capital appreciation and

At its

the
at

is

stock

1953

selling

now

earnings of $3.60

STRADER,TAYLOR&CO.,lnc.
Lynchburg, Va.
LD 39

from

per

in

1952.)

SOLD

—

advanced

1948

3.6

to

In

the

first

nine

a

gin

the pre-tax profit mar¬

and

to

rose

17.6%

sales

of

from

14.6% in the previous year. As a
result, net income climbed to $4,-

765,000 ($2.65
the

first

share)

per common

from $3,153,000

($1.75

nine

share)

per

months

of

1952.

The company has a substantial
equity in the earnings of its Ca¬
and

Australian

aries, which
In

1952,

are

these

subsidi¬

not consolidated.

subsidiaries

two

net income of

L, A. DARLING GO.
STOCK

000, respectively, in 1951.
deducting $150,000 in dividends

sidiary,

Members:
Midwest
Detroit

Stock

Stock

Exchange
Exchange

1051 Penobscot Building
DETROIT 26, MICH.
Office—Bay

City,

Mich.

the

from

the

Canadian

sub¬

company's equity in
earnings of these

undistributed
two

subsidiaries

$1.2

million

1952

as

(43c)

amounted

(69c

per

And Successor

Companies

the

the

1953, sales

Members

New

York

Stock

electrical

dehorner

calf

last

Tele. NY 1-3222




their

made

debuts

"Mixmaster
Junior" and the "Cooker and Deep
and

Fryer"

introduced. All five

were

of these

the

year

products have had "very
acceptance."

enthusiastic

earnings averaged in the three
prewar
years,
1939,

immediate

declared about Dec. 10.
this

total up to

Sunbeam's

profits

excess

tax

52%

a

the

tax

this

Based

tax.

management's

believed

and

respec¬

categories. The management looks
for

another

with

good

in

year

1954,

possible moderate decline

a

in sales of the

largely

existing line being

offset

sales

by

of

new

electric

blanket

Exchange

Exchange

St., New York 4, N. Y.

HAnover 2-0700

NY 1-1557

Orleans, La.-Birmingham, Ala,

Mobile, Ala.
Direct

wires

Interest

to

branch

our

exempt

Federal

We

own

offices

from all

Income

and

present

Taxes.

offer:

$100,000

on

has

Sunbeam

feat

unusual

the

five

past

2% Bonds

capital

count

Angeles, California

accomplished the

over

of quadrupling both work¬
and gross plant ac¬
and more than tripling the

years

ing

City of
Los

year.

stockholders' equity.

Due December

To Yield

1952, current assets of $24,643,000,
including cash of $7,678,000, were

1.60 and interest

equal to 5.2 times current liabili¬
of $4,737,000.
Net working

ties

capital

$19,906,000

of

253,000 in

(when

—

This
amazing showing in view of

an

the

on

that

fact

27,

Dec.
the

1947.

plant

gross

financed

was

tained

of

out

re¬

Broad

will

shares of
Dec. 27,

WHitehall 3-2310

Jan.
31
1,980,000
On last

stock.

common

the

Street, New York 4

Telephone

Capitalization after the 10% stock
payable next
consist
only
of

—

Gordon Graves & Co.
30

earnings and depreciation.

dividend

★

ac¬

during this five-year period
increased
by $12,445,000, all of

count

which

issued)

$15,-

was

of the $4,653,000

excess

reported
is

1959

1,

On Dec. 27,

carried out¬

company

side of current assets cash of $2.3

million

in

building and equip¬
which has been re¬
duced by only $200,000 over the
a

fund,

SHATTERPROOF
GLASS

years.

Bought

Sold

—

Quoted

—

with depreciation charges

Memorandum

Request

on

actual dividend payments of $3.60
and

$1.65

we

estimate

per

will

capital

share, respectively,
that

million

$2.25

net

show

working

increase

an

the

at

of

year-end

PETER BARKEN CO.
Member Nat'l Ass'n of Securities

Dealers, Inc.

32 Broadway, New York 4

without

Orders

products.

25 Broad

New

earnings
estimate, the company will prob¬
ably pay a little excess profits

of about
tive
fields.
The
"Shavemaster" $1.25 million. However, on the basis
of
estimated
1953 earnings and
and toaster also rank 1-2 in their
their

in

Stock

Stock

1953

Capital expenditures in 1953 of
about $2.5 million will compare

"Coffeemaster"

York

American

exemption amounts to $13 million
before normal taxes, or $3.47 per

past five

be the leaders

New

Members

$1.65.

master," "Cooker and Deep Fryer"
to

Members

However,

the year-end extra was
increased
to
65c,
bringing
the
year

of the giants of the electrical ap¬
pliance industry, Sunbeam's "Mixand

Steiner,Rouse&Co

1940, and 1941.

ment

Despite the rugged competition

Teletype NY

1-2500

are

share)

and

by ten small

pared
next

principally 57
loaders

Military
mm.

for

8%

and

for 8%.

year's

sales

recoillessj rifles

65%

mm.

aircraft
an

addi¬

heat-treating fur¬
The balance of ifhis

will

period
51%

shells, will account for
tional

in

business,

20

be

made

ujp

of

as

pounds

is

and
com¬

for

its

of

with

pared
five

years

ditures

of

entirely

capital

ex¬

of

re¬

out

of earnings

dividends
as

were

in the

paid

1948-1952

compared with ratios of

in the
in

1943-1947

the

However,

during

years,

the

lowed

a

period and

1938-1942

the

generous

period.

past

management

in

least $2

has

alone.
1954

Capital

expen¬

will amount to at
an

our

on

company's postwar plant

many

followed

a

developing

a

publications

Japanese securities

YAMAICHI

Established

ex¬

corpo¬

consistent

write

SECURITIES CO., LTD.
Home

industrial

or

current

ad¬

rations, the Sunbeam management

of

for

Opportunities
Japan

Call

main

the

pansion program.

has

in

plant expendi¬

plant at Chi¬
cago costing $1.75 million.
This
addition is expected to complete
the

Investment

net

com¬

million in the past

Office

Brokers

Tokyo

1897

—

111 Broadway,N.Y,6

Branches

48

Investment

&

Bankers

COrtlandtl-5680

policy

lower echelon of

executives to fill vacancies in the
senior

positions.

tensive

junior
stores

salesmen

least

fol¬

duction

"three

has

and
all

are

programs

in

the

and for graduate

in the plants.

It

There

training

ex¬

for

dealers'

engineers

Over-the-Counter

Quotation Services
for 40 Years

The company is at

deep" in

sales,

financial

executives.

employee benefits,

policy (25% in April, 1949, 331/3%

cluding

in

disability insurance,

April,

a

as

million, including

to

five

stock dividend

at

million

gross

of $12.4

tures

carried

was

$11.4

Unlike

earnings and depreciation,

pensions,

hospital

pro¬

in¬

National Quotation Bureau
Incorporated

and

Established 1913

1950,

April, 1952, and
dend in

"Clipmaster" for cat-

pounds

43
100

miscellaneous but profitable items,
the

mower

construction

such

as

until

million

only 32%

the egg cooker, and the

start

new

principally to the financing

$12.4

out

baker.

not

31

Dec.

figure

lightest competitor.

Due

of

only
with

automatic toaster, the baby bottle
warmer,

develop¬
scale

The

aluminum

penditures

iron,

for

last

dition

spring.

tained

dry

gas-

large

will

production

feemaster," the "Shavemaster," the
or

new

but

purposes,

next

appliances, the "Mixmas¬

steam

the

of

manufactured

ment

year.

few

A

year.

powered lightweight mowers have

in

$775,000
In
earnings of both

previous

tional distribution following next

been

ter" (Junior and Senior), the "Cof¬

naces

Plwie: HAnover 2-9766

a

King Lawn Sprinkler," the
"Baby Bottle Warmer," and the

weighs

Exchange

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

for

way

"Rain

of

and

OPPENHEIMER & Co.

of

products successfully in practi¬
cally every year.
In 1951, the

the Canadian and Australian sub¬

waffle

Bought—Sold—Quoted

each

operates
principle

chain"

its

en

the "Cooker and Deep Fryer," the

INTERNAL SECURITIES

products

and has been able to broad¬
line by introducing new

gram

"Ironmaster"

GERMAN

Al¬

and

of

acceptance

"endless

pave

to

with

compared

in

will be accounted for

1. G. FARBEN

and

Gardens")

("Ethel

company's

sidiaries are running at a record
rate well ahead of last year.
About 80% of 1953 dollar sales

Branch

year

might

payout

$1.3 million as com¬
pared with $8.5 million and $950,-

received

MOREUND S CO.

of

dividend

the

and

reducing the building and
for the new
running at equipment fund. The conservatism
of
the
company's
depreciation
twice the rate of production. The
electric percolator will be intro¬ accounting is demonstrated by the
fact that plant and equipment on
After duced in about a
month, with na¬

had net sales of $11.5 million and

QUOTED

COMMON

in

1953, net sales showed
year-to-year increase of over

nadian

BOUGHT

In

and

favorable
reception of new products.
The
management prides itself on its
research
and
development pro¬

months of

in

TWX LY 77

times

3.1

has

1949, 4.2 in 1950, 7.6 in 1951, and
9.3

25%

Life Insurance Co. of Va.

price

mean

Jour¬

Home

Gentleman,"

Homes

the

to

ratio of about ten times esti¬

a

mated

"Country
television

the

in¬

present price of about 36,

common

"Ladies'

consumer

on

creased income return.

virtually completed next

share after

in

expected to be larger in 1953,
magazines ("Life," "Satur¬

nal,"

for

American Furniture

Dan River Mills

company.

expenditures

ington") being the principal media
used.
In addition, the excellent

be increased

ratio based upon the average an¬

Commonwealth Natural Gas

anti-trust

its

bert" and "Bill Henry from Wash¬

nual

Camp Manufacturing

dismissed

paid

Trading Interest In

Bassett Furniture Industries

On

should

earnings

share, which compares with $3.36
in 1952.
(In the past four years,
the market has placed a steadily
higher value upon the company's
earnings, as the
price-earnings

Tel.

them.

with

against the

and

dividends

common

sonably

BROADWAY, NEW YORK 5

the

but

11, the U. S. Department of

"Better

out

Members

American

business

do

keeping,"

retained

plant expansion program will

war

day Evening Post," "Good House¬

e n-

out

and

both

120

20%-

at

prices,

with

of
depreciation

Exchange

producers
list

below

are

a

Stock

electrical appliances

offered

Advertising

longer term it is difficult

York

retail sell¬

minimum

a

marginal

suit

pro¬

earnings,

New

sign

ditures

tirely

ffipONNELL&fO.

to

Justice

has been

Bought—Sold—Quoted

In 1951 and 1952,
ing price and the company has four quarterly dividends of 25c
never
deviated from this policy.
each
were
supplemented by
a
In recent months, discount houses
year-end extra of 50c normally

to

very

financed

Since 1917

must

1952 amounted to $2.5 million and

gram

Rights & Scrip

dealers

postwar
capital expen¬

Teletype NY 1-583

Specialists in

dealers.

180,000

these

of

adhere

large

Exchange

and

Fair Trade contract agreeing to

Dec.

or

preferred

Member

Associate
American

debt

no

New

the calf dehorner,
King" traveling lawn

Sunbeam management has refused

there

strong,
is

Corporation

Co.,

well then be increased to the 70%

30%

position is
unusually

&

tributors

a

Louisiana Securities

City.

be

of

tal

S.

Research

sprinkler, and the hedge trimmer.
Sales throughout the United States
are
handled
through 1,500 dis¬

have

i

Telephone

Manager,

Wilson,

sheep,

"Rain

the

Each

has

Sunbeam

Gas & Electric

Public Service of New

Stork

Exchange
Stock Exchange

and American

and

tie

Alabama &

Sunbeam Corporation—Edward

York

Central Maine Power

Week's

Selection

sell the securities discussed.)

to

Thursday, December 17, 1953

Participant and

A continuous forum in which, each week,

Distribution

Ex

Like Best

...

a

a

2-for-l

split in

10% stock divi¬

January, 1954). The post-

surance

nuses.

plan,

a

medical in¬
46 Front Street

and

Christmas

bo¬

CHICAGO

New
SAN

York4,N.Y.
FRANCISCO

Volume 178

Number 5282

The Commercial and Financial Chronicle

..

.

INDEX

From Cold War to Hot Peace
*

\

Articles and News

By MELCHIOR PALYI

»llCHTinSTBIl!

Page

Productive Capacity and Business Performance

mmmmmmmmmmmmmm

—Edwin

Dr.

Palyi reviews the European Defense Community situation
and finds, after an analysis of developments, that for the
coming months and possibly for a couple of years, a relative
standstill or slowing down in the encircling of Russia is in
the cards.
Says "The Soviets must be highly satisfied with
this state of affairs," and holds Russia's diplomatic success
is not fully appreciated on this side. u

:

G.

reluctance

to

From Cold War to Hot Peace—Melchior

—

3
4
5

What to Expect from Agriculture in 1954—Thomas K. Cowden

6

Christmas

6

Palyi
Factors Indicating Easier Mortgage Money—Hugo Steiner
Air Conditioning—Roger W. Babson.
✓

1953—Alexander

;

—Edwin

•

J.

the

tremendous

of

American

China

concessions,

or

major Russian
blunders — on
the

•.

Nov.

Dynamics of

France

is

e-A.—w.
*

Three, a re¬
fusal they had
to

Any

the

Big

familiar with the inner
workings of French foreign policy

correct—to

bring about
revival.
not in

a
Melchior

is

It

Palyi

one

should know better.
the

Given

sight,

weakness

her national

and

prejudices — it
blind alley was its inherent un¬ was Britain that torpedoed the
reality (pointed out by the writer EDC project from the outset by
time and again in these columns). refusing to associate with it, or
even to commit troops on the Con¬
tinent. The U. S. accepted this
The German Thorn in the

v

What

the

carried

into

EDC

a

refusal without

French Flesh

But

ing.

much

as

what

is

as

groan¬

the
for

for

sauce

Telephone:

WHitehall 4-6551

«...

The French, and not only the
British goose should be sauce
French, are convinced that in a
the French gander. London's mo¬
purely
Continental
(six-nation)
tives are hidden behind the ex¬
Union a rearmed and reinvigorcuse: that it has an Empire which
a t e d
notoriously
"aggressive"
implies obligations transcending
Germany would become prepon¬
the European scene.
The French
derant. Such misgivings are well
answer is that they, too, have an
founded on the fact of Germany's
empire, and it is just as important
unprecedented
recovery
since
to them.
(And they are not will¬
1948—in contrast to France's stag¬
ing to share it with the Germans,
nation since 1951
even
if the
as they would have to in any sort
fears about her potential
(mili¬
of a European Union.)
tary) aggressiveness may be un¬
Churchill plays the EDC game
founded.
In any case, Paris has .
...
,,
.
a point when it makes its consent
Hfi doeg Ws ^ to
to EDC dependent on the condi¬
orate in postponements, if not in
tion of Britain's and/or America's
the ultimate scrapping of1 the proj¬
commitment to stay permanently
ect, in order to come to terms with
on) the Continent. So far as Mr. Russia. On the other hand, he
Eisenhower is concerned, the most
pays lip service to the plan and
he could offer at Bermuda—and
even
gives verbal lashings to the
take to Congress—is a "firm as¬

i

Harrisburg Steel

.

Jessop Steel

Getting Federal Budget Under Control
—Hon.

George M. Humphrey——

19

Progress of IBA in 1953—Ewing T. Boles

Acts?—Ralph H. Demmler
Competition Should Bring Greater Prosperity
—Ernest

^

I3i*00cli

R

23

Leadership Needed—Captain Eddie Rickenbacker
Thwarting Nuisance Suits
—David

M.

on

24
25

Bought

IBA Committee

Securities

Reports

.

'

Securities

JOHN F. REILLY, Manager

34

Committee...

Unlisted

☆

40

Committee..
*

*

15 Broad Street, New

41

New Members of the Order of the Jim

Daisy

*

NY 1-3370

Dlgby 4-1680

35

York 5

Teletype

Telephone

*

List of Those in Attendance at Convention

IBA to Move General Office to

Trading Dept.

36

Public Service Committee.

Securities

☆

32

Committee

,

Members New York Stock Exchange

30

Committee

Investment Companies
Canadian

■

Sold

BURNHAM AND COMPANY

28
29

Railroad Securities Committee

Industrial

'.

.

.

—

27

Municipal Securities Committee.
State Legislation Committee
Aviation

i

•

Securities Industry

Saulnier

J.

Portsmouth Steel

Public Borrowing

Wood

Basic Research for the

—R.

Newport Steel

22

Side of the Tracks—William White.—

The Positive

Lone Star Steel

20
21

,

How Shall We Amend the SEC

France

of

\

WALL STREET, NEW YORK

12
26

—

TEXTS, of addresses and Committee reports delivered at the
; v Annual Convention of the Investment Bankers Association of
; > America at Hollywood, Fla., appear on pages indicated:
v.;

the
Number One obstacle to Europe's
defense preparations.
She takes
Ihe whole blame—very unjustly.

with

11

—

Text of IBA Convention Addresses

be

to

Obsolete Securities Dept.
99

,

Indo-

Deadlock

a

supposed

Haven for Obsolete*!

9

Canada's Positive Tax Policies—Hon. Douglas Abbott

is paying the

The

3

refusal to meet

Ready

get

COME ON LET'S GO !

Efficiency—Henry Lyne, Jr. 10

Cold Facts About Steel—Ira U. Cobleigh
-t»

Money

|

Lawler

■> OS: c;; Allyn--—

,

a.

for

M.

for the Show

3 to

Foreign Trade—Key to World Peace and Prosperity

of

order

their

i

French defi¬
cit
in
the
European ; Payments
Union.
(France is losing in for¬
eign trade notwithstanding a 20%
to 25% subsidy to every export.)

and

pressure

aid

American

2

8

Railroad Credit Boosted'by More

,

for the

To 99 Wall Street

Schlesinger___

Air Conditioning—Recession Proof Industry

:

the match they must.
If they keep
European • Defense ./Community supporting Viet Nam—which is as
seems to have killed
the project, much opposed to them as to' Viet
Of course, the proposal can be re¬ Minh—it is in part to use. that
vived.
But it
situation as an argument against
will take either
Germany's rearming.
Also, part
*

Wilson....—

L

AMD COMPANY

1

Points for Planning An Investment" Program

V

join

■.

Cover

Nourse

■V —Matthew

French

3

(2363)

48

Washington

...

96

Golf and Tennis Tournament Winners at 1953 Convention____103

—

^

surance,"
that

he

draw

that

intend

not

does

our

The

whatever
troops.

Saar

'

Economic control

French,

over

spot.

sore

in

Americans

order

please

to

the

and to stop Ger¬
many's competitive progress. The

British

another

is

means,
to with¬

_

they

on

France's

French

make

no

ascribe the

bones

about

Federal

Repub¬

that small

sult

it would

if

re¬

pre-Korean

levels

in

while British
24%
(French

full-fledged Franco-Ger¬ prices
are
some
cooperation.
But it is not prices 40%!) above. And it over¬
likely to mean that much; and in looks the likelihood of Adenauer's
man

any case,

could

no

stand

German government
nationalistic

the

re¬

getting the lion's share in Ameri¬
can aid if he proceeds to build up

sentment of its voters if it volun¬

the

teered to "give

surate

up" the Saar.

ternationalization is the
tion

acceptable

sZv

baar

Union

As things stand

conflict
conflict

defies
aeries

Indo-Chma

as

cannot
man

the

solution

makes

as

that

war

£°es

on,

to

match

12

problem

Europe.

Having been aceli-

reowe

sacrifice, too, if only in
form 0f arming in a coopera-

some

But

Nadler Favors

Stock

Lower

Outlook

to A. T. & T.
"

'

'

'

specialized in

■

7

Continued

As We
Bank

See It

and

•

'•

'

Business Man's

Cover
105

Bookshelf

16

Canadian Securities

on page

Spencer Trask &. Co.

Coming Events in Investment Field

.13'

Dealer-Broker Investment Recommendations

Einzig—"The

Control

British

of

From Washington Ahead

*

Manchester, N. H.




•

TELETYPE N. Y. 1-5

Nashville

^

Chicago

*
•

<?

Glens Falls

•

Schenectady

•

15

of the News—Carlisle Bargeron

Mutual

Our Reporter on

Utility

& NY 1-1826

17

Governments

5

...

...

46

...

Securities

93
107

Offerings

109

Salesman's Corner
.

Mexican Gulf

Sulphur

17

and You—By Wallace Streete.

.

Keta Gas & Oil

99

Security

Prospective

Capitol Records, Inc.

...111

Securities Now in Registration

.

Exchange PI., N. Y. 3

12

Reporter's Report

The Market

40

Teletype NY 1-1825

106
...

...

Observations—A. Wilfred May.—-

Security

HA 2-0270

13

News About Banks and Bankers

Our

Singer, Bean
& MACKIE, Inc.

104

Funds

NSTA Notes

14

The

Security I Like Best
The State of Trade and Industry.

2

Newport Steel Corp.

4

Washington and You

112

94

*See

"Canada's Positive Tax Policies"

COMMERCIAL and

WILLIAM

B.

Worcester

Temco Aircraft

Corp.

Publisher*

York 7, N. Y.

Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical Issue — market quotation
record#, corporation news, bank clearings,
state and city news, etc.).
135

South

La

E.

C.,

Eng¬

as

second-class

Vitro Manufacturing

Co,

matter Febru¬

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

Subscription Rates

WILLIAM DANA SEIBERT, President

Offices:

26.

Company
Reentered

HERBERT D. SEIBERT, Editor & Publisher

Other

page

Copyright 1953 by William B. Dana

CHRONICLE

DANA COMPANY,

on

1 Drapers' Gardens, London,
land, c/o Edwards & Smith.

Reg. U. S. Patent Office

Thursday, December 17, 1953

ST., NEW YORK 4, N. Y.

Boston

8

Firms"

Indications of Current Business Activity

Members New York Stock Exchange

Albany

*

._

^

PREFERRED STOCKS

•

' *

.

Stocks.

REctor 2-9570 to 9576

BROAD

•

(Editorial)

Insurance

25 Park Place, New

25

93

...
••

.

Regular Features

FINANCIAL

TELEPHONE HAnover 2-4300

bonds.

16

Survey

"

,

Published Twice Weekly

have

Rate

stocks and

S. Now Has Over 50 Million Telephones According

U.

The

For many years we

225 unlisted

15

...

Corporate Tax

trading markets in

15

Inequities in Income Tax Discussed by Peter Guy Evans..
Colonel Herbert G. King Cities Increased Investor
Confidence in

firm

14

Over-the-Counter Issues

on

Railroad Securities
goes

m«Uzed to the Marshall Plan principle-that -we owe them a liv-

Ger-

in

the

much deeper.

us

6

N. Y. Security Dealers Assn. Urges Removal of Regulation
"T" Restriction

maintain

We
Cover

Burgess Hints at More Non-Bank Long-Term Treasury Issues 12
Status of Television in Europe Analyzed by Ernest A. Marx.. 13

Public

reserves.

However,

they

afford

divisions

commen¬

ing"—the Europeans deeply
things much senj. ^ new tenor: that
they

The French claim that

worse.

long

In¬

12 divisions and the

solu¬

both
sides,
Utopia: Euro-

to

Which presupposes a
pean

one

Holds

Period of Growing Pains Seen for TV Industry

it:

only

terms

of America

42nd Annual Convention

—

lic's tremendous recovery in inter¬
territorial national trade, threatening Britain
gain in World War II, significant in her own export bailiwicks, to
for its appreciable coal-steel po- the fact that the Germans
carry no
tential. The majority of the Saar armament costs* This is a
spuripopulation does not seem to feel ous theory, of course, which ig¬
strongly on the subject. Adenauer nores such simple facts as these:
may be willing to settle the issue that. German prices are back
to

is

area

The Investment Bankers Association

Salle St.,

tXhlcaga 3,*.IlL.4Telepbone STate 2-0613);

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COMPANY INC*

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4

The Commercial and Financial Chronicle

(2364)

industry,
i.e., schools,
building, road build¬
utilities, will maintain a
high degree of activity. Builders
might do well to pay special at¬
tention to the President's economic

Thursday, December 17, 1953

...

building

Factors

Indicating
Easier Mortgage Money
By HUGO STEINER

Mortgage Financing, New York City

price table of U. S. Government bonds,

all

savings accounts).

accounts

thrift

in

State,

Many banks will declare
to
their
depositors due

short-

govern¬

after

of 20 years.

lapse

a

York

New

the huge

"extras"
im¬

to

ment debt into

proved earnings. In order to main¬

long- term

payments, they will be
looking for quality mortgages.
tain

bonds.

indica¬

The

government policy.

to

There may be some

Chairman of

Braun,

order to sus¬
tain demand for this type of credit.

The sharp

(4) A slowing down in the rate

price improvement in government
securities which followed, starting

of

recently

booked

orders

and gaining power¬
ful momentum in September and
in mid-August

accumulations;

inventory

new

in

have

instances receded to the low¬

some

est levels since

early 1951.

October, has been one of the most
abrupt ever experienced.
To a

(5) Some subsidence in the rate
of business expansion.
The SEC

large degree, this rapid recovery
was sparked by the recent lower¬

curities issued

reported

ing of bank reserve requirements,

in

se¬

new

in the nine months

period ended Sept. 30; this is 10%
under the corresponding period ol

approximately $1.2

•which released

billion

$6.4

billion of funds of member banks

&

election

Detroit

Inc.,

Co.,

M.

the

office,

price and, hence, hammered
their yield from the 1.90%

down

tion

This double-barreled

brought

naturally
bonds and

of

the

Excess

This

will permit corporations to retain
more
of their earnings, thus les¬

ac¬

about

the

to

Profits Tax beginning Jan. 1.

a

their

sening

marked rise in long-term govern¬

Clifton

demands

the

on

market

for

a

more

corporate

below

wide

New

slightly
above $35.00 an ounce, will un¬
doubtedly go still lower. Once this
price dips below the $35.00 figure,
our Treasury will be the only pur¬

price range of certain gov¬

ernment issues since June

they

were

illustrates

1, when
at their low point, and

graphically why mort¬
is more readily avail¬

gage money

able

today.

fractions

chaser.

The writer believes

this trend will continue. The
are

in 32nds.

bank

The

profit

absorb

or

over-all

nationwide

con¬

struction outlook for 1954 presents
a cheerful picture.
Projected resi¬
dential

some

loss

for

poses

and

switch into mortgages, total.

bookkeeping

effect

tential of easier money.

it to their advantage to take
a

This will have the

enlarging the nation's
credit base and increasing the po¬

price of government se¬
curities forges ahead, institutions
either

now

further

of

price

As the

find

is

and

ago,

pur¬

housing

mated about 5%

Other

office,

1

Price

starts

esti¬

are

Yields

the

of

Price

June 1

Dec. 1

June 1

Dec. 1

Incr.

9/15/59

95.12

99.10

3.13

2.38

4.8

2*4% Bonds due 12/15/62

91.30

97.18

3.24

2.55

5.20

2

9/15/72

89.28

95.12

3.21

2.82

5.16

6/15/83

98.21

103.31

3.32

3.04

President.

firm

V2% Bonds due

3 y4% Bonds due

in

became

director

a

Vice-President.

Mr. Adams is

past President of
Detroit, a former
Chairman of the Michigan Group
a

Association

Bankers

Investment

Education Committee of the I.B.A.

Muskingum
College
and
Ohio
State
University.
He
graduated
from the latter in 1927 receiving
and

in Business Administration

was

in

Co.

to the

elected

1943

to

ciated

Honorary

Vice-President

as

that

with

firm

of

in

had

been

asso¬

municipal

bond

he

the

Sidney

Spitzer

Harris

A.

C.

&

1931

In

the

name

Shortly

Co.

firm became

that

Topping,

he

municipal

under

Hipkins

thereafter

kins

Co.

own

firm

brokerage
of

&

his

founded

Hip¬

continuing

as

such until it was dissolved in 1943

coincident with Mr. Hipkins' move
to

is

long-time

a

resident

Riverside, Connecticut and is
active

in that

is

Some

extra

The

of

was

Old

of

very

Trust

educated

Greenwich.
the

at

Canadian National
(Payable in United States

School

in

or

Railway

Canadian

and

of

new

Bonds

37 Wall Street, New York 5

Toronto




•

Montreal

with

officers,

the

Mr.

will

at

run

for

rate

the

final

the

formation

of

•

Ottawa

TWX: NY 1-1467
•

Winnipeg

Committee,

shorter
want

are

finding it

formerly

drop extra
though the

to

necessary

accepted

even

—

not needed.
relationships

trade

weekly

in

changing

are

Mills

notes.

other

delivery.

promised for
In

Some

are

now

specifying the week

even

particular month within

a

their

bottom,

drive

reduce

to

steel

some

duction
and

users

are

quarter.

a

inventories

and

them

hold

rock

at

The mills are

going to extremes.

One customer recently placed

cycles.

hob with

production schedules, observes this trade

Pressure
continues

additional concessions

win

to

strong.

And customers

their competitors.

by

for lower

Premium

extra

Nor

magazine.

freight absorption

on

jealous of concessions won

are

prices
And

of

high

producers have been slashed

cost

mills have been forced to give ground

some

charges but regular mill base prices have not yet been

challenged,

seriously

this trade

in

until

they find out what it will cost them to sign

contract.
.

This should

Placing
both

stimulating

of

be known

find

to

and

these

duction talk with orders.

wage

new

a

gloom

General

Motors

steel salesmen.

It was

Ford

by

among

and

backing their big pro¬

big customers

But these first February

orders from the

capital reminded steel sales people that others in the auto

motor

trying

to

quiet.

unusually

were

chew

inventories,

up

schedules had been cut,

Other
and

"The

to

Iron

$30.66

Age"

per

steel

gross

auto

in

makers

were

Schroeder, Vice-President, Toledo

still

production

cases

some

this trade publication reports.

Scrap prices continue to skid in
week

base prices

by midyear, it continues.

orders

February

pleasure

That will

points out.

authority

But steel firms will be loath to change

1954.

come

caused

their case

they timid in stating

are

steel costs.

right and left.
on

order for sheets

an

This can be done but it plays

requested delivery in 30 days.

ton.

scrap

This

a

depressed market and this

composite

price

is

low

new

a

also the lowest scrap has been since the

fell $1.33 a

for the year,

first half of 1950 before
•

industry output last week suffered a

the automotive

from

the

week

before

mainly

due

to

as

same

14%

changeovers

at

Company's Ford division.

Production for the latest week stood at 82,327 cars

trucks

against 97,010
week of

cars

1952

and 18,465

and 19,847 trucks in the prior

week.

production was 87,526 cars and 27,839

trucks.
So

H.

office.

they

being pressed for delivery promises well within' the normal pro¬

Adams, Mr. Hipkins, William

Hammond,
Vice - President,
Chicago office and Franklin L.

re¬

customers

report

delivery; they used to be happy if they could get delivery

an

including

this

quarter

said,

very
persnickety on quality; rejections for this
increasing. Customers are also demanding shorter and

are

In the

Mr.

annual

an

getting

are

reason

elec¬
Braun

'

Burns Bros. & Denton, lie.
to:

the

also

are

was

this

the Ford Motor

Simultaneously
tion

Stocks

first

a

low

consumers

too,

reduction

Executive

Wires

the

in

sturdy prop under
Department of Commerce pre¬

department

producers

Lehigh

University.

Canadian Dollars)

■

DIgby 4-3870

equipment

provide

Brooklyn,

Montclair High School and

announced

Tel.:

and

declines in

by

plant and equipment
record $28,000,000,000—about $1,300,000,000
\

a

producers

that

spects,

He

Polytechnic

from

the

customers

processing

In

i

to

offset

Korea.

Preparatory

in

1953,

Producer-consumer

City's civic affairs.

director

a

however,

steel

industry

Braun, Bosworth & Co.
He

continue

United States

1952.

charges

Co.,

&

which subsequently became Stran-

ahan,

the

plant

new

than

more

combination orders.

charge of their New York office.
Prior

will

was

trying to fatten their order books
profit items they declined to make
when the market was tight, according to "The Iron Age," national
metalworking weekly.
The low profit items are being offered as
sugar coated inducements to consumers of more profitable prod¬
ucts, with the hope that they will sweeten the mills' books with

ton

Executed

non-farm employment in November was
preceding month. Retail stores took on more

expenditures, it estimated,

all

Some

in

education

his

received

B.S.

:

Total

year

offering

by

the Bond Club of

Company of

Orders

expected to affect canning operations

were

outlays for

next

For

above

later

and

Senior

He

Specializing in Bonds of

October.

spending will reach

William M. Adams

in 1932

Assistant Sales
Manager of the Guardian Detroit
Company. He was elected a VicePresident of Braun, Bosworth in
1941

1953
were

Factory employment in November, according to the Bureau
Statistics of the United States Department of Labor,
dropped to 16,700,000, off 300,000 from October.
This decline,
six times as great as usual for the
period, was accompanied by
a
dip in factory workers' average weekly hours to 39.9, from

year.

the

after four years as

and

in

Labor

$300,000,000,

Adams

Mr.

joined

lost

Lay-offs

$28,000,000,000. That would be $800,000,000 above the pace
in the initial three months of 1953. It would represent a drop of

Vice-

Senior

man-hours

of

*

'

than

common

rate of

5.10

2J/4%Bondsdue

producers

economy,
dicted.
Such

as

number

slightly
'

'

a

Business

Wall

Street,

under this year's

segments

total

more

expected to be less than in 1952;

was

our

the

years

the

were

be

;

fortnight.

a

quarter

York

issues

indicates

in

can

within

A.

Hipkins of the

a

market.

money

months

employes, but the increase
factory and outdoor jobs.

as

and

production
the holiday

variety of industries including television, rubber,
textiles, apparel and farm equipment. The walkouts at the two

major

40.3

receptive
Business Administration Scholastic
Should the recent "Big Three"
and
fraternity Beta Gamma Sigma.
conference in Bermuda further al¬
mortgages.
At this writing, the
Mr. Hipkins spent 24 years in
long-term 3V4% 30-year bonds are lay the waning threat of war, the
the municipal bond business be¬
quoted at a new high—above 104. price of gold, which was $45.00
or
more
in the free market two fore joining Braun, Bosworth &
The table
ment

recent

Building,
President

He

Elimination

(7)

early September to ap¬
proximately 1.25% at the end of
October.

unavailable

made

housing market.

in

level

in

labor-management disputes

off 370,000 from the

1952.

thus

their

While

System.

Reserve

Federal

the

improvement was noted in total industrial
period ended on Wednesday of last week from
slowdown of the prior week but output continued to
under the high point of one year
ago.

Penobscot

and
a
former Chairman of the
(6) A decline in the demand for Board of the Municipal Advisory
Subsequent
open
market pur¬
expansion
and
working
capital Council
of
Michigan.
He
has
chases of Treasury Bills by the
funds
by moderate sized firms
taught
investments
at
Wayne
Federal Reserve poured additional
from insurance companies.
Sub¬
University Night School for the
money into the market, and per¬
stantial
Sums
were
absorbed
in
American
Institute
of
Banking
sistent
bidding by Federal Re¬
this manner and this money was
and is a member of the National
serve Banks for these Bills raised

in

Industry

Index

Production

Some

of

;of

of

Adams

of Braun,

of Directors

Board

Bosworth

in

of terms

easing

modiifcation

Then came a

months.
of

"on the cuff."

Fall

the

during

money

credit

consumers

purchases of durable goods

carry

continued

for

for

mand
Hugo Steiner

August were

tight

these

(3) Signs of leveling-off in de¬

early

in

M.

Walter

William

Removal of the 2Vz% Sav¬
ings Bank rate ceiling restriction
on

Price

Auto

Business Failures

the

reported

announced the

ods to convert

tions

Elect Pres., Sr. V.-P.
leading
municipal bond underwriters, has

or

Trade

Commodity Price Index
Food

and

from strikes

the

(2)

-

nancing meth¬

term

building

active

Braun, Bosworth & Go.

a

surance

to
f i

classical

credit

easier

to
an

savings by individuals to the high¬
est level on record
(through in¬

was

resorting

point

(1) Continued full employment
resulting in further increases in

Adminis¬

tration

signs

ditions are:

when

months,

Output

Retail

State of Trade

residential

new

Production

Electric

Carloadings

in

ward easier mortgage money con¬

early Summer
the

repair,

Steel

The

January.

year.

higher yield is available.
Other factors contributing to¬

where

is easier—rela¬
tively looser than it was during
the money pinch, which prevailed
in the mortgage market through
the Spring and

home

conditions and

capital due to subsidence in rate of business expansion.
money

in

Congress

to

report

of

Mr. Steiner
showing
lower prices since June 1. Lists among factors contributing to
easier mortgage money, continued full employment and further
increase in savings, along with a decline in demand for working
Mortgage

and

building and public works.
As we head into the New Year,

Calling attention to current easier mortgage money,
a

ing

Among other matters, this report
will deal with credit, stimulation

President, Berkeley-Steiner, Inc.

presents

commercial

far this year

United States production has been 5,898,602
Last year to this date it was

cars

and

1,142,101 trucks.

cars

and

1,155,115 trucks. *

*

,

4,099,617

.

Continued

on

page

100

Volume 178

Number 5282

The Commercial and Financial Chronicle

...

\

5,

(2365)

o

Opportunities for Positions

,

Air

Conditioning

Observations...

By ROGER W. BABSON

models

,

The

Babson, pointing out the need of new industries to provide
our rapidly
growing population, points to air-condi¬
tioning as means of providing more and desirable comfort.
Says he is "bullish on the air-conditioning business, and pre¬
dicts in a few years there will be more air-conditioning

work for

Capital Gains Market Approach—Pro and Con

So

clear and representative

proach

to

question

is

argument for the Market

an

ap¬

investing policy has come to our attention, and the
so
crucial, that we herewith cite the significant ex¬

cerpts, which

we

follow with

dissenting commentary. This
position of the advantages
of going after changes in

price,

our

opposed

as

centration

to

Will

take

a
with

cri¬

biles?

would

be

Cortese, market analyst of

condition

A.

real

M.

pany,

Kidder

in

October

Com¬

and

article

an

issue

and Estates

in

of

the future

course

difficult

true

May

an

only
and

task.

that

It

investor

no

A.

J.

escape
the
task,
though
think they avoid it. Every time the investor buys a secu¬
rity, even if it is only for income, he tacitly assumes that between
the time he
.buys it and the time he will sell it the market value
will not decline by an amount
greater than the total income.
many

Without this

assumption, he would not buy it. And the assumption
involves a judgment regarding a future
price. Usually, this is a
long-range judgment; yet, who can tell today what he will think
several years from now about the outlook for the same

"From

the

security today
next

6

12

or

shorter-term

aspect, the

purchase of

tacitly involves the assumption

months

the

income

will

more

an

that

than

security?"

offset

any

the
de¬

preciation.

Many investors will deny making this assumption.
They say that the security was bought for long-term holding, that
one cannot predict market fluctuations and that
they are not con¬
cerned with

temporary depreciation. What they are saying is that
judge the future several years away better than the

they

can
future of six months

situations, this is

a

or

one

Except

year.

as

regards

rare,

special

claim which the writer finds difficult to accept.

It is

a claim which is
commonly responsible for sterile portfolios
substantial, permanent losses. It seems to me that if one has

or

vision into conditions several years hence, he should
into the next 6

or

shouldn't invest."

12 months

the

field

have vision

of

on

the

the
b i 1

e.

Outlook

stocks, investment results can be
improved, I believe, by a more frank recognition of the fact that,
explicitly or implicitly, judging future security prices cannot be
avoided, and by a closer attention to the near-term outlook. Many
capital losses can be prevented and portfolios can be more pro¬

Consider

Roger W. Babson

lieve

cheap

that

United

of

more

tories,

thousands

the

to

agencies, and

new

of

fac-,

automobile

stations,

gas

air

basically

roads, exist to¬

States

and

clothes,

tion,
Some

or more

do

not

home

building, plus modern
advertising must be thanked for
the

high

and

full employment,
prosperity of today.

wages,

general

Unfortunately, however,
the

economic

setup

industry

stay,

other

must

along

come

that

the
here to

accepts

automobiles

some

now

as

new

to

industry
keep

the

prosperity ball rolling.
Industries Needed

u.j■,

big help.

TvT

•

v

u

new invention has
in economic importance, however, the internal coma

No

made

be

This

makes

lieve

that, in

will

be

units

a

than

radios.

furniture

like

an

open

and

not

for them will

mand

increase

for

returns

this year

the

last

that

quarter

increase

for

last

over

of

all

T

will

„

Labor

case,

While

sales

around

be

this total

that previ¬

than

will

still

be

record

indicated,

ously

unions

.

smaller

be

will

1953

level.

year's

to be the

high

of

it

^

are already calling
tioned factories.

well

for air-condi-

above

the

reached

$164,085,000,000

in

1952.

ductive by the pursuit of what I call a "flexible investment pol¬
icy." Because the year-to-year risks of owning common stocks are

greater than the annual income,

even the most conservative com¬
portfolio endeavors to obtain capital gains to offset
losses that arise from unforeseen developments, errors in judging
prospects and from the difficulties inherent in anticipating future
market conditions.
Capital gains and losses are, therefore, an
important part of successful investing [bold face ours] in common
stocks. Following a flexible policy, the investor will:

stock

mon

"(1) Sell an issue when he
reason, doubts about its outlook.

Looking ahead to

What

"(3) Be uninfluenced by a loss (or by the tax on a profit) in
judging whether a substitute issue may be more promising."
"In the first quarter of this year, it was obvious that either

This prospect

was

widely discussed,

are

1963

IN

Canada's prospects,

what is Canada's present
An informative address

automobile prices or production would decline considerably in the

and

on

prosperity based?

on

this

subject

was

given recently by Rt. Hon. C. D. Howe.

was

clearly evident in the industry's own estimates and appeared after
a three-and-one-half-year rise
in automobile stocks of consider¬
more

.

CANADA

"(2) Become less interested in owning or buying a stock the
the lower it falls
(excepting, of course, those infrequent instances when the fall is
for reasons that are permanent).

ably

. .

first experiences, for whatever

higher it rises, and conversely, more interested

second half of the year.

As Canadian Minister of Trade and
Commerce and Defence Production and

than 100%, so that the investor had reason for doubts
As always,

about the future market values of automobile shares.

formerly Minister of Munitions and

however, it was impossible to tell whether the issues would de¬
cline or whether any decline might be substantial
enough to

Supply and Minister of Reconstruction,
Mr. Howe is

Few investors would have denied the risk of at
slight fall, while fewer still
would have denied that
declines were more probable than rises.
"The flexible investor does not wait for the market to resolve

warrant selling.

least

issues with

a

to

position and

future prospects.

He sells when he doubts and transfers his funds to
better outlook; the latter can always be found.

uniquely qualified

evaluate Canada's present

some

such doubts.

It has been

Since

our

privilege

to

print

Mr. Howe's address in booklet form. We

the two leading automobile stocks have declined
There are some, but not many, who can tolerate
equanimity this much depreciation, especially when they are

the first quarter,

will

20% and 27%.
with

gladly send

have

one.

a copy to

those who wish to

Please write and ask for—

long-term holders for income. The important point, however, is
that there is still the risk of depreciation over the next six to 12

"Canada in 1963"

Prices even then would be higher
the lows of 1949, when the year-ended earnings of one com¬

months by another 20% to 25%.
than

pany were about the same as now and those for the
much higher. This year, full-year earnings for one are

Gairdner $

other were

likely to be
oinly slightly higher than in 1949 and for the other, much lower.
Should further market declines
will sorely

40 Wall

take place, the inflexible investor

;

<

Telephone: WHitehaU 4-1656

wish he had sold last spring, when his doubts first ap¬
Canadian Affiliates

Selling

r

"It is

a

on

Gairdner & Company Limited.

Efoubt

Toronto

curious fact that while the flexible investor pays more
Continued

★

Company Inc.

Street, New York 5, N.Y.

peared. ..."
i

Quotation

by

special




permission

of

"Trusts

and

on

Estates.'

page

of

will show little, if any,

If this proves

buildings will require
,u!nnn^

6.0%

were

possible, says the

It now seems

most houses $171,000,000,000.

of

room

office

conditioner.

year

Alexander Hamilton Institute,

un-

every

air

for
this

of

higher than in the corresponding
period of last year.

depend

till

an

sales

months

The de¬

and

•

year

a

by the fact that
the
first
nine

indicated

is

as

will look

window.

of

level

the

models

New

out which

previous months of this

above

total

the

on

May

The year-to-year gain of
4.0% in September, however, was
smaller than in the earlier months,

business.
I be¬
few years, there
air-conditioning

more

coming

are

bullish

me

air-conditioning

step

ago.

offering

by

perhaps
into

coming Atomic Age.

in

was

comfort.

upon

The
radio
industry, including
broadcasting, has prolonged prosperity. Television has also been
r

yet equalled

must

peal
more

Get

all.

of

and

This is really our

war.

the value of retail sales in
United States in September

the

transporta¬

ity of families already have these
things. To sell something big to
these 40,000,000 families, the ap¬

new

trade,

foreign

year,

furnishings. But the great major¬

(espe¬

self-starter), plus the
instalment credit business,
plus

available every¬

power,

As

need

The automobile industry

the

partially syn¬
could provide

Reach $171 Billion

may

more
entertainment.
need more homes and

or

made

This

1953 Retail Sales
be¬

day because of this industry.

cially

or

eliminate

Conditioning

do

temporary.

de¬

the field, I
conditioning

now

only

where, and revolutionize industry

partly fill the need. People in the

making of steel and the refining
oil

Air

over

few

its equivalent will. be

thetically.

the

Looking

tries, from the

be

or

"breeded"

with

-

Indus¬

will

bet

taxes, which
pend upon profits.

automo-

More New

Near-Term

this

Uranium

best

duce

doesn't have that, he

common

Junior's lawn mower!

big new industry must
develop, to provide work for the
rapidly growing population and
to take up the slack caused by
the labor-saving machinery which
employers are installing to offset
labor's demands for higher wages
and
fewer hours.
Furthermore,
such is needed to enable the Fed¬

day is due to

[Bold face ours.]

Attention
"In

and that if he

even

to¬

income-

during

;

the

business

Cortese

biles and trucks, but for boats,
ships, farm machinery, airplanes,

eral and state governments to re¬

„

'"c"'

v

,

that

of

25%

can

f

*!$£.%■

esti-

is

*

Jif sipfr

mated

also

is

horses

|
'

+

buggies?

secu¬

extremely

,fgy*

driving

were

It

rity prices is

"is

general
business if we

Trusts

of

estate,

and

magazine.*

gas engine.
This is now
being used not only for automo¬

Some,

f

o

bustion

and

the

employment,

the

"It is true that estimating

Wilfred

your

What

teria, is set forth by A. J.

A.

few

minutes
family
your community would be
today if there were no automo¬
you
discuss

and

made

however, give employment and
profit to millions of people. Any
young man who is determined to
know more than anyone else in
his community about air condi¬
tioning has a great opportunity.
One
more
thought.
We must
not
forget
the
possibilities1 of
solar and gravity energy—also of
atomic power. Just now the latter
is * handicapped
because of the
limited supply of uranium.
But

units than radios."

what

con¬

Value

on

ex¬

be

the

most of
by a

that

will

large companies. Their sale, in¬
stallation, and maintenance will,

Mr.

By A. WILFRED MAY

And Profits

-

I. suppose

Hamilton

105
1

* 'F

Gairdner, Son & Company

Montreal

Quebec City
Calgary
Kitchener
Kingston

-v

Winnipeg
London

6

The Commercial and Financial Chronicle

^

(2366)

agriculture

What to Expect

hom
Agriculture in 19S4

; If
■■

■■

continuation of but

see a

in farm incomes than in

condition is

1953, agricultural economist

when farmers who contracted high

situation" for

says

is

a

indebtedness during

"in trouble." Says this is not

were

agriculture, and

that is not in debt too

an

is

culture," is

broad. There

very

Ihousands

of

people

are

working

on

various phases of it throughout the
United States,
it

is

to

know

difficult

upon

the

Wide

fluctuations

of many

ctop

plus

such

on

am

farm
as

population.

source

farm

many

year

boys

farms

sur-

a

Each

reach

there

re-

on

as

try to do two

leased

things:

Historically, with the exception of

give
cf

First,

you some

the

a

basic

by deaths and

been

factors under¬

pie

lying why

Many

have

we

of

some

lems

prob¬

in

Thomas

Cowdcn

K.

agri¬

culture,

there

years,

has
of

movement

a

from

retirement,

rural

people

cities,

to

areas

overlook

al-

peo-

the

full

imPact °f ^is. In

—^

these

few

very

ways

and

a price economy' if People are to move from
one

area

or

from

one

job to

an-

eco-

other, it usually means that opportunity is greater elsewhere,

applies to
agriculture and the banking busi-

As long as there are more people
produced in agriculture than can

ness.

be

second,

present

nomic

It

broad

sqme

outlook

it

as

in

used

that

profession,

it is

going to be difficult to get sotalk on the politics of agriculture called
equality for agriculture,
we
had
perhaps better look at Much more could be said about
why we have some of this agita- the immobility of population and
tion in agriculture and why, in
the variations among different
my judgment, it will continue for
areas, but this will suffice to call
to

seems

time

some

that following a

me

to

back

and

there

days,

If

new.

we

concern

to

attention that population

your

pressures

cause

of

so m e

our

Granger Movement and

other similar activities

the last

in

yP
°t problems. One is
weather problem confirmed

the

pri-

rnarily to the Great Plains area.
This is not, however, confined
was widespread discontent
among
exclusively to that area, as has
the farming population
at that been demonstrated this oast year.
time.
Many of us in this room The °?her type of problem dealcan
remember the discontent in
ing with uncertainty of yields is
the 1920's and the agitation that the fact that in order to have
something be done by the gov- enough we sometimes have too
This

establishment

culminated
of

the

in

Federal Farm Board in 1929.
farm programs in

familiar

these

all

to

tural

given

us

that

with farm

away

will

be

government as
this

The
r
not

has

it

pro-

It is my guess that farm

programs
in

record.

indication

real

any

grams.

on

Administration

plans to do

of

continued

even though we
highest agricul-

the

incomes

nrocont

present

were

Many

us.

were

during the 1940's
experienced

The

the 1930's

of

programs

the

ill-fated

room

long

of

concern

a

as

be

of

some

the

P.ian

ing

constant.
l/A.

deflation.

by

,

,

„

(4) Most agricultural commodities have an inelastic demand and

un-

to

fol-

and

This

h

a s

or

little

a

a

big drop in prices

bit less than

prices.

means

is needed

big

a

.less

by
continuing to produce
than he does by
cutting back his
production.
many

During such periods

other

businesses

production because they

—77—
An

address

by

Dr.

curtail

loss less

Cowden

the

in., Nov.

17,

1953.




in

soil,

tributed

that

country

adequate,

rainfall,

have

(Dnce

dis-

well

and

the

other

have

good

other

or

And

soil

lack

there

regions in the country that
have adequate rainfall and other

Claus

needed

for

tive

rather

bring

Lancl

is

If

it

e0urce

bandled

All

about

,

con-

is

not

re-

properly

;

obligation
t0

on

best

to

our

pass

generations
p0ssible condition,
A

/1A.

.

..

,

small changes in prices. This
about many problems in

(5)

It is difficult to modify the
patterns of resource use in agriculture.

farm
quite

Once

buildings
a

task

drastically.

a

barn

or

built

are

other

it

to

change them very
Soils
and
climatic

conditions in various regions
adaoted

to

make

crop

to

is

certain

patterns.

crnns

basic

The

are
ft

changes

ic

in

population in

our

that Christ's natal day is the only
when we give some thought to friends
and strangers and endeavor to do something in the
way of a friendly act, a remembrance, or a word of
encouragement to cheer the fortunate and unfortunate.
It

the

in

,

happiest of all

to

seems

us

time in the year

resources

future

which Christendom venerates the

*shakes, greetings and gifts.

conservation

a

on

holidays for Man, Woman and Child, because at that
time there is more love in our human relationships
as we strive to make others happy with smiles, hand-

problems,

depletable

a

is

there

these

holy day,

birth of the Prince of Peace, is the

poorly located rela-

markets.

to

ditions

myths and memories, hallowed by centuries that
brighten up a sad war-ridden world.

This

agri-

cultural production, and these are
often

„

should

things, but lack good soil. We find
a
rather unequal distribute of
resources

inter-

two at

Children, young and old, will revive the old Santa

are

other

the

nearly all climes and

and peoplo of

over

factors,

that

know

we

worshipped.

persuasions will gather together for friendly
course and to forget; if
thqy can, for a day or
least, their domestic cares and forebodings.

rainfall,

climatic

but

good

1760,

built

lower Broadway,

on

Washington

the festive Season will be celebrated

more

world

the

which

regions

some

Parish,

George

By ALEXANDER WILSON

requirements for good agriculproduction. We also know
are

Gen.

Cljnsfutas 195 3

tural

there

Trinity

Chapel,

where

some

,

Christmas is the

^ Agriculture is dependent
^?0n1Q|2rdQ "
19f5-49 p
Y exported

tobacco.

day for one and all to give thanks
good and perfect gifts and for a
renascence
of all the happiest recollections of our
lives and the spiritual blessings of the Saviour of Man¬
kind in the days to come.

Pendent upon toreign marKets as
an outlet for a considerable pro-

in

^

01

0

v,

While this was perhaps
abnormally high,, we still are de-

P°rtjon °f certain ofour agncu
„nmLt5tiS„^

Giver of all

the

to

approximately 35% of our wheat,

As Christmas

-

the

morn

ushers in

of Dickens'

words

bless us, every

day, let
Tiny Tim:

new

a

immortal

us say

"God

one!"

ni

™,hniJotvilin

in rnnfiint with

cSmE

07our othe^ Tnte?n^
Agriculture todav is deeolf
Agncuiture today is deeply
volved

in

most of

our

in-

in-

The TV

nroblems
nn

Period of

international

^

«

the

tlon u°£

tr^ctor

?,e,rta'nly

-

hard

£■?»«
tion, Chicago,

at

this

areas

good

are

increase

agriculture associated with widely
keeps fluctuating prices.
loses

that there

know

For

for their products.
During periods
of falling prices the farmer
he

of

all

we

Paul's

St.

unequal distriagricultural resources,

brought some problems. We have
many
products
?een the sheep mdustry move
farmers do not shift their product fr0™ !h.t easter" to*he western
tion plans rapidly where there Part of the country The same has
are small changes in prices, or boon tiue of wheat. And we are
consumers
do
not
switch
very
?ow witnessing a change in cotrapidly from buying one product ton-producing
areas. All these
t° buying another when there an, K1many, °ther .charts bring
quite often

brings

because

bution

Old

an

lt
but this change does
brmg a-bout Pr°blems in agricul'.V6' For example, the inven-

are

producing

There is

(8)

simply

the

on

that there are large areas with
relatively few people living in
them.
This brings up all kinds
of problems associated with roads,
schools, electrical service, telephone service, mail delivery and
health problems,

°Ur ec°"omy ,la growing
andchangmg We would not have

meant

a
very wide variation in
prices farmers have received

too

are

supply.
Without going
into all
the
technicalities
involved
this

means

(1) The economy is unstable.
We have had a series of wars aclowed

the

ducts

basic

inflation

cannot

you

exactly

much

I am going
briefly 12 things:

by

just

us

of

agriculture.

companied

have

right amount of a crop such as
potatoes or cabbage, because
weather conditions, insects and
other factors enter in to make
variations in yields, even though
the number of acres may be held

deriving economic factors affect- in
list very

In agriculture

to

means that a little bit too
of many agricultural prod-

look just for a little bit at what

might

rnuch.

So let

any

remain alive.

many
of
us
haven't
about.
These problems
commonplace.
It means

perhaps

_

half of the 19th century illustrate
and confirm the fact that there

ernment.

Farms are segregated. Agri¬

In agriculture.
problem. A wise use of our natu(3) There is an uncertainty of
,
rf>coiirce<?
is
of
Dublic
conyields in the production of farm cern We as a nation feel a moral
.

problems, crops. This divides itself into two

,en .u0r ^agricultural
Also
»

the

go

history of
will see that

government

was

in

we

the

review

the colonial

Politics

come.

agriculture is not

performing ■} re¬
other services

agriculture.

thought

are

jobs in agriculture

number of

many

by its very nature re¬
quires land. Land requires space.
The fact that space is required
brings up many problems that

farm problems.

working age

going to

the

and

(7)

prices 'and

are

a

culture

farmers,

Rural areas produce

twice

broad topic.

a

I

(2)

to

of

in

in farmers' income

just

where

thinking

It
in

'

by curtailing production than by
continuing full production. This
has had a very material effect

where to start
and

for

depression.

a

not

are

in

involved

search

90% of capacity, and, in addition, we have a number of tech¬
niques which should help in the depressing situation. Reveals
disturbing factor in current declining farm prices is that they
are taking
place in period of high consumer incomes. Does not
expect

they

position to do research themselves
as in the case with a large busi¬
ness.
It means that government

heavily will be able to operate at around

This topic, "Economics of Agri-

that

position.

bargaining,

means

infla¬

efficient, well-organized farm

an

small. ;-Farming

are

business.
This" means
farmers are oftentimes in a

weak

"disastrous

a

Farms
small

a

that

developing similar to that during 1922-29,

now

tionary period

(6)

less rapid decline

a

immobile..

-y

agriculture

periods of low prices most of the
agricultural resources continue to
be used in some manner.'" ' 'r -;

Michigan State College

Holding 1954 will

that

not switch rapidly.
This is
especially true in moving out of
agriculture.
Farmers may grow
different crops, they may make
some
changes, but even during

By THOMAS K. COYVDEN*

|

fairly

is

means

does

Head, Department of Agricultural Economics,

:

this

All

Thursday, December 17, 1953

...

Problems. to certain segments of
a&ncuiture(12) Food is a basic necessity,
In this country we have never
really experienced a shortage of
od*
fake an adequate food

fppply, pfetty much for grantedNevertheless there is a realization
fthat an adequate supply of nutntious foods is one of our strong•examp e'the slogan,
1

F°°d Wl11 Win the

the peace" is not

war

and Write

mere idle chat"
Continued on page 85

Growing Pains Seen for TV Industry \

industry is experiencing

and will cost $800 or more.

some

will

Larger

tubes and somewhat lower

are

growing pains and prospects
that this period of discomfort

will

continue

months

or

so,

according

the

to

But

number

United Business Service of Boston.

Although around
TV

sets

were

seven

million

produced this

prices

goes

of

white

the

tubes

on.

foundjn

of

times

parts.

Advertisers will wait
before

they

black

three

component

sets—and

number

assume

some

time

the price for

of color TV.
One color programs, and most telecasts
development has will continue to be in black and
make consumers wary of white for some years to
come.

approach

been

this

of

result
to

buying black and white sets. The
industry faces a period of hard

Nevertheless,

competitive selling.
Service

the

1954 will

lion sets.
TV

time

as

color sets have two times the

and

year,

the outlook for 1954 is clouded by

the

offered

six

another

for

be

as

output

in

time

aid

sales—espe¬

of

it becomes

apparent to

TV

that reasonably-priced

color TV receivers

are

still

a

con¬

due

still

are

Opening of further new
will

urban
to

the

in

for

some

equipment costs

black

generation
technicolor.
sets will

and

after
Black

white

the
and

a

advent
white

thus not become ob¬

solete, and sales will pick up when
the public begins to realize that
color for the

siderable distance ahead.

limited to

be

stations

involved. Note that 70% of movies
full

the public

telecasts will

larger

5V2 million to 6 mil¬

run

stations

cially

forecasts

Color

mass

market

is still

the Service
predicts, before color sets of large
screen size and moderate price are

well

available

for TV sales and earnings for

It will be two years,

than

in

200,000

produced

in

Not more
sets will be

quantity.
color

1954.

.E'arly

in the future.

From

Service

a

long pull viewpoint, the

sees

a

promising outlook
the

industry, but only after an inter¬
models vening period of uncertainty and

will have only 12 to 14 inch screens

growing pains.

Volume 178

Number 5282




..

The Commercial and Financial Chronicle

(2367)

hereafter

imposed by. the un
t

vi/

•

•

i

',680,000

;

*

/

Authority

Hotiswig

iff '%!¥» 5*>~
J*r
;>
"

?>

'Cti-I?
:

*

:

?v
"■

**'
•

;

-

vfr

.;

:

.
v-'

*

?

mm'

or at

'

'•

&?&<* •:

"

I

iM~
:

m

wmfm

4^

at the option of the holder, at the office of the Fiscal Agent of the respective Local
Housing Authorities
in the City of Chicago, Illinois. Coupon bonds in the denomination of
$1,000, registerable as to

fe

i

-

-

,

L HI-

<

.

,

y

:

or

.

*

i*

saylshown belotv
ai're

State of New York

:.

i'

';v

and b 2%%

'

».

:

'

Principal and semi-annual interest payable,

4

-tit'

Sll

-

■

" *>*<■

:'

:i

/-

*

the office of the Alternate Paying Agent in the City and

principal only,
interest, with the privilege pf reconversion, at the expense of the holder, into
coupon bonds.

both principal and

or as to

Legal Investment for Commercial Banks, Savings Banks and Trust Funds in New York and many other states, and Legal Investment without limitation
as to amount of investment
for all National Banks organized under the laws of the United States

These bonds, to be issued by the various local housing authorities listed
below, will constitute, in the opinion of counsel, valid and

legally binding obligations of the
a first pledge of annual contributions unconditionally payable pursuant to annual Contributions Contracts with the Public
Housing Adminstration (an agency of the Federal Government) in an amount which, together with funds of the local authorities actually available for such purpose, will
be sufficient to pay the principal of and interest on the bonds when due.
respective local housing authorities, secured by

The United States Housing Act of 1937, as amended, solemnly pledges the faith
of the United States to the payment of the annual contributions by
Public Housing Administration in accordance with the terms
of the annual Contributions Contracts.

In

an

the

opinion rendered
U. S.

to the Presidedt of the United States on
May 15, 1953,
Attorney General, Hon. Herbert Brownell, Jr., stated in part:

"In summary, I am of the view that: * * * A contract to
pay annual contributions entered into
by the PHA (Public Housing Administration) in conformance with the provisions of the act
(U. S. Housing Act of 1937, as amended) is valid and binding upon the United States, and that

the faith of the United States has been
in the

same

terms its faith has been

solemnly pledged to the payment of such contributions
pledged to the payment of its interest-bearing obligations."
(parenthoei not in original text)

LOCATION OF

MATURITIES AND YIELDS

AUTHORITIES AND AMOUNTS

Group
GROUP 1

Group■

■

1

2

3

1969

2.05%

2.10%

2.15%

1.20

1970

2.10

2.15

2.20

1.30

1971

2.15

2.20

2.25

1.40

1.40

1972

2.20

2.25

2.30

1.45

1

GROUP 3

1.45

1973

2.25

2.30

2.35

1974

2

3

1954

2%% Bonds
$ 2,250,000

Watertown, N. Y.

4,085,000

6,170,000

Norfolk, Va.

1.20

1.25

1.30

1.35

1958

Alexandria, Va.

1.15

1957

Passaic, N. J.

1,780,000

1,710,000

1.10%

1956

Madison County, 111.

1.10%

1955

21/2% Bonds
$ 3,845,000

Omaha, Nebr.

1.10%

1.40

2l/2% Bonds
$ 6,475,000
3,875,000
735,000

1,020,000

7,220,000
5,310,000

9,345,000

1.50

1.50

1.50

1.55

1.55

1.60

1.60

1962

2%% Bonds

2.45

2.45

2.50

2.45

2.50

2.55

1977

2.50

2.50

2.60

1978

1.55

1961

Atlanta, Ga.

2.40

2.40

1976

1.45

1960

2.35

1975

1959

GROUP 2

1.60

1.65

1.65

Framingham, Mass.

5,235,000

Kansas City, Mo.

4,295,000

Newport News, Va.

Troy, N. Y.

1979

2.55

2.60

2.65

1.80

1980

2.60

2.65

2.70

1.80

1.85

1.90

1981

2.60

2.65

2.7.0

1.90

1.95

2.00

1982

2.65

2.70

2.75

1967

Galveston, Texas

1.70

1.75

1966

Newport, R. I.

2.625

1.70

1.70

1.95

2.00

2.05

1983

2.65

2.70

2.75

1968

1,470,000

Brockton, Mass.

2.55

1.65

1964

Newark, N. J.

2.50

1963

1965

$12,860,000

Peoria, 111.

2.00

2.05

2.10

1984

—

2.70

2.75

(Accrued interest to be added)

Memphis, Tenn.

The bonds of each issue will be redeemable
at a

on any interest payment date on and after ten
years from date of the bonds as a whole, or in part in inverse numerical order,
redemption price of par and interest accrued to date of redemption plus the following premiums: 4% if redeemed on or before 15 years from their date; 3% if redeemed
on or before 20 years from their date;
2)4% if redeemed thereafter but on or before 25 years from their date; 2% if redeemed thereafter.

thereafter but

These bonds

are

offered yvhen, as and if issued and received by us and are subject to
prior sale and approval of legality by Bond Counsel.

Descriptive Circular

Bankers Trust Company

The Chase National Bank

Chemical Bank & Trust Company

upon

request.

Harris Trust and Savings Bank

The First National Bank
of

Kidder, Peahody & Co.

Salomon Bros. & Hutzler

The Philadelphia National Bank

C. J. Devine & Co.

Chicago

Blair, Rollins & Co.
Incorporated

The First National Bank

American Trust Company

of Portland, Oregon

San Franci.co

New

York, N. Y., December 16, 1953.

City, Mo.

Barr Brothers & Co.

B. J. Yan Ingen & Co. Inc.

W. H. Morton & Co.
Incorporated

City National Bank & Trust Co.
Kan.ae

Seattle-First National Bank

Commerce Trust Company
Kaneas

Carl M. Loeb, Rhoades & Co.

City, Mo.

Statement* herein, while not guaranteed, are bated
upon information which

The First National Bank
of

wo

believe

to be

reliable.

Memphie

Bache & Co.

7 '

Thursday, December 17, 1953

The Commercial and Financial Chronicle...
8

-(2368)

the desirability of stocks

measure

Points ioi Planning an
By EDWIN J.

Program

with the

forward-

a

handle

Important for

(22)

they

as

portfolio

a

consist of the right percentage

to

York City

situations

new

of

(23)

It

bullish on

be

to

pays

the future of the United States.

taken
by the Wash¬
ington Admin¬

Well to anticipate lower
prices for prime corporate bonds
and better preferreds, even though
Returns for September provided
interest rates may for a time de¬ further evidence that cash income

istration

cline.

is

by what

politically
pedient.
(2)

ex¬

ber

to

e

f

1

u

i d

r-w

t

c

u

tions
J.

(3)
trade

i d

Schlesinger
v

o

well-rounded

A
and

a

e

below

good

an

railroad

ties

keel.

even

presently
the

on

160 mil¬
steadying in¬

over

lion, should have
fluence

a

business.

nation's

agricultural products, if too long
force, are bad for the economy.

in

Desirable merchandise,
properly priced, should sell well

(17) The state
the prices

up.

(18)

(7) A sound economy callsTor a

and

cline

gradual

a

Even

and

of

(19)

serve
as

it

warrants

should

careful

prove

watching,

helpful

in

re¬

the

best stocks
markets

poor

come

1954

10%

portfolio should

A

in

ficiently
foreign

(20)

(21)

a

the

below

the

level

of

a

year

Limited, 320 Bay Street, Toronto, Ont., Canada.
Gains Program

Capital

-

-

Rates—Booklet

Food

i
E. I. du Pont de

—

■

v

r

,

.

.

Transfer I Tax
of current rates—Registrar and Transfer ComOriginal; Issue ^nd

Stock

State

and

^

brochure

Wilmington, Del.

Nemours & Company,
Federal

7

,

Illustrated

—

Homer

Babson & Company, Inc., 40*.

Street, Boston 9, Mass.

Chemicals

Farm

—

.

Chemicals—Analysis—David L.
Broad

trial subscription

Free

—

Fahrner, Corning, Calif.

Machinery

-

Corp.—Analysis—Francis I. du

Chemical

&

\

7',":.

50 Church Street, New York 7, N. Y.

Co., 1 Wall Street, New York 5, N. Y. Also available
the current issue of "Gleanings"—an analysis of P. R.

Pont &
in

Mallory & Co. and

selected list of Low Priced Stocks.

a

Investment Opportunities in
rities Co..

Japan—Circular—Yamaichi Secu¬

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

Over-the-Counter Index—Folder showing an up-to-date com¬

parison between the listed industrial stocks used in the Dowand the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

Jones Averages

National
York

market

and

yield

Quotation

13-year period—
Street, New

a

Front

Producers—Analysis—Fridley & Hess, First Na¬

Gas

tional Bank

Building, Houston 2, Tex.

Offerings

New

performance over
Bureau, Inc., 46

4, New York.

Natural

Tokyo Exchange—In current issue of Weekly

on

Bulletin—The Nikko Securities Co., Ltd., 4,

Stock

to be

John

Goodbody & Co.

C.

yardsticks

used

Lee,

Manager

cotton

department,

mitted

to

to

will

partnership

in

of

be

the
ad¬

Good-

body & Co., 115 Broadway, New
York

taken.

Register

1954

City,

York

Stock

members of the New

Exchange, on Jan. 1.

Directors

of

1-chome,

Executives—Contains

and

known companies, titles
all leading officers and directors, technical per¬

listings

corporate

and duties of

In

over-all

the

keep a portfolio in
shape, some calculated
have

Canadian

brochure reviewing

Monthly

—

Street, New York 5, N. Y. and Gairdner & Company

40 Wall

Poor's

satisfactory come¬

average

Since

fact that

of farm products are now

To

risks will

flexible to cope with
and domestic uncertain-

of the

view

in¬

prospect for

to be in

seems

A fur¬

farmers'

the

John C. Lee Partner

of

vigorous

be suf¬

in

decline

high

record

the

$33,085,000,000 in 1951.

ther

de¬
but

buying during poor markets.

vealing whether inflation or de¬
flation has the upper hand.
(9)

To

with

in

Review

growth stocks and subjects of current economic interest to
investors in Canadian industry—Gairdner & Company Inc.,

Marunouchi, Chiyoda-ku, Tokyo, Japan.

securities, their purchase
should be spaced with the heaviest
cost

This, will

$32,648,000,000

with

and

1952

not

will

$31,450,000,-

less.

be

may

compare

in¬

benefit pay¬

1953

of

amount to more than

back.

the Treasury and the Federal Re¬

all

for

between

relationship

The

(8)

indicates

estimate

latest

The

that the farmers' cash income,

000

Street, New York 5, N. Y.

Canadian

pany,

ago.

of stocks.

during

was

great influence on

a

usually stage

reduction of the national debt.

oflhe investors'

total

4.9%.

prices

emotions has

keep employment

budget

markets,

prices.

(6)

balanced

advancing

during

gains can prove very costly.
(16) The purchase of growth
stocks is desirable but not at fancy

(5) Artificial price supports for

at all times and

year,

the same
while the

year-to-year decrease in the
for
the
first nine
months

well-rounded ments,

to build a

especially those enjoying tempo¬
rary popularity.
(15) Buying stocks with eyes
directed solely on possible capital

(4) The country's growing pop¬

ulation,

way

portfolio.
(14) Dispose of weaker securi¬

industry should keep the economy
on

1953 level.

the

last

of

month

in

than

smaller

7.6%

fall much

not

by

buying and selling securities is a cluding government

d.

foreign

prosperous

as

are

(13) The exercise of patience in

be

e

should

companies

a-

may

a

Edwin

they

as

dividends

economy,
v

never

are

bad

as

nor

1953, net earnings after taxes and
of
soundly
managed

changes in the
o

conditions

that

painted.,
•/
(12) While the volume of busi¬
ness
is likely to be less than in

promptly
adjusted to
are

the farmers in the
United States during 1953 would
show a decrease for the second,
consecutive year, according to the
Alexander Hamilton Institute.Their income in September was
received

good

If taxes

conform

2nd Consecutive Year

(11) In deciding on the advis¬
ability of buying or selling secu¬
rities, it is important to remem¬

tempered

be

Canada—Monthly business review—Bank of Montreal, 64 Wall
v

(10)

may

Farm Income Down for

& McKinnon,

Street, New York 5, N. Y.

11 Wall

1954:

are

Energy in Industry—Review—Thomson

Atomic

ties.

as

understood that the firms mentioned will be pleased
send interested parties the following literature:

to

ning the investment program for
^

It is

stocks, bonds and cash.

following 23 points are sub¬
mitted in connection with plan¬
(1) Such economic measures

Recommendations & Literature

preferred

stocks,

common

ties, and be in a condition to take
advantage of buying opportuni¬

The

Dealer-Broker Investment

arise.

SCHLESINGER

outlines 23 points to be considered in connec¬
planning of an investment program for 1954.
pays to be bullish on the future of the U. S."

Concludes "it

have

to

looking investment policy able to

Mr. Schlesinger
tion

essential

is

Investment
Investment Counsel, New

change continuously, it

and bonds

nationally

of

sonnel, traffic managers, sales managers, purchasing agents,
etc.; includes histories of 80,000 executives; breakdown of
203 classifications of industry, with a products index of over
commodity and service items—For examination copy
Dept. A735127, Standard & Poor's Corporation, 345

2,500
write

Hudson

Street, New York 14, N. Y.

Stock Transfer and Registrar

Services—Booklet—Stock Trans¬

Department, The Chase National Bank of the City of
New York, 11 Broad Street, New York 15, N. Y.

fer

Richardson

R.

issues—James

&

Sons, 173

Winnipeg,

and

Man.,

Royal

♦

East

Canadian
Portage Avenue,

Long Dividend Records—Tabulation of

Stocks With

*

Building, Toronto,

Bank

Ont., Canada.
Air

$4,830,000

Springs,

New York

Inc.—Bulletin—D'Avigdor Co.,

Maryland Railway Company
Equipment Trust Certificates, Series R

mature

To be gua ranteed
-

—

Report

Carriers & General Corporation

Central

Hirsch & Co., 25 Broad

—

Study

—

La

$322,000 annually from December 15, 1954 to 1968, inclusive

—

Calvin Bullock. 1

Street, New York 5, N. Y.
Public

Utility

Corporation

Salle Street,

Central Indiana Gas
Peck & Co., 208 South

and

Company—Circular—Link, Gorman,

(Philadelphia Plan)
To

Work^

Street, New York 4, N. Y.
Wall

3%

Wall Street,

63

5, N. Y.

American Water

Western

*

Chicago 4, 111.

Guaranty Trust Co. of New York—Bulletin—Laird,

Bissell &

Meeds, 120 Broadway, New York 5, N. Y.

unconditionally as to pay ment of principal and dividends by endorsement
by Western Maryland Railway Company

Gulf Cities Gas
Stout

Indiana

MATURITIES AND YIELDS
(Accrued interest

to

Gas

& Water

be added)

Investors

1954

2.25%

1959

2.90%

1964

3.075%

1955

2.45

I960

2.95

1965

3.10

1956

2.55

1961

3.00

1966

3.10

1957

2.70

1962

3.025

1967

3.10

1958

2.80

1963

3.05

1968

3.10

Corporation—Analysis—Eisele & King, Libaire,
Broadway, New York 4, N. Y.

& Co., 50
&

Water

Co.,

Inc.—Annual

report—Indiana.Gas

Co., Inc., Indianapolis, Ind.

Diversified

Services,

Inc.

—

Study

—

New

York

Corporation, 120 Broadway, New York 5, N. Y.
Also available is an analysis of Metal & Thermit Corp. and

Hanseatic

the Municipal Market.

Micromaiic Hone Corporation—Bulletin—De Witt Conklin Or¬

ganization, 100 Broadway, New York 5, N. Y.
~

Continued

.

on page

110

Issuance and sale of these Certificates are subject to authorization by the Interstate Commerce Commission,
The Offering Circular may be obtained in any State in which this announcement is circulated
such

of the undersigned and other dealers

as may

from only
lawfully offer these securities in such State,

Quality Stocks
American Enka

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

IRA

&. CO.

HAUPT &. CO.

GREGORY

&

SON

,

L. F. ROTHSCHILD &. CO.

Olin Industries

M. A. Hanna

Time Inc.

Grinnell Corp.

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

HUTCHINSON

■r

Primary

Valley Mold & Iron

Markets

Troster, Singer & Co.

CO.

INCORPORATED

HA 2December 16, 1953




2408

Members: N.

74

Y.

Security Dealers

Association

Trinity Place, New York €, N. Y.

NY 1-

376

i

Volume 178

Air

Number 5282

The Commercial and Financial Chronicle

...

(2369)

pects for our equipment and serv¬
ices, and represent probably the
largest potential dollar volume for
our industry.

Conditioning—
Recession Proof Industry

Stressing air conditioning
Lawler gives

as

reasons

as

a

dustries

recession-proof business, Mr.

fibres

tell

me

what the air
outlook is today as

conditioning

you

it.

we see

by

last

leaps

decade.

at

that

Of

allunits

room

the

best students

of this subject
and
their

Matthew

M. Lawler

forecast of

sales of central residential systems
for the next five years is as fol¬
lows:
No. of
Year

Units

1954

120,000
240,000
360,000
540,000
700,000

1955_

1956
1957-__„

1958.
10

years,

the

Institute,

most

will

home

tioned

according

to

non-air-condibe

the

of

parts

in

conditioners

the

\

1

industry,
to get

seem

the

publicity. Reporters trying
our complicated indus¬
try have seized on room condition¬
ers as a simplified expression of
the entire field—and perhaps have
given this part of the business
more emphasis than
it has war¬

to valuate

Management

the

obsolete in

country

and

'round air conditioning will
equipment in practi¬
cally all new homes.
Now you may well ask: what is
the basis—what is the justification

year

be standard

industrial

Americaii homes.
built at
for
That's the

New homes have been

the rate of one million a year
years.

seven

growing end of the home market.

million of U. S.
central heating

Twenty-five

homes today have
and

more

than

half

of

these—

million—are equipped
air heat
and can,

about

13 y2

with

warm

therefore, be considered prospects
'round air conditioning.

for year
About

IV2

million of these are

gravity systems
and will require completely new
combined
heating
and
cooling
units plus modification of the duct
equipped

Systems

with

establishments—is

of the oldest divisions of

ness.
But our guess is that the
potentialities in this field are still
enormous.
Only a fraction of the
business, commercial and indus¬

establishments

trial

try

are

Real estate

Commercial Packaged

Equipment

take a look at com¬
packaged equipment. This
was the industry's biggest
for commercial packaged air
let's

mercial
year

year

agricultural fertilizer
explosives is at an all-time
high. Plant expansion to provide
has

involved

refrigeration equipment
scale.

:

*

new

large

in

an

in

an

wider scale by manu¬

a

who

or

air-conditioned

res¬

taurant, spend the evening in

an

the

feel

pinch of

to be offered

fully air-conditioned, while rental
properties not so equipped would
have

to be modernized with

air-

conditioning to remain rented to

in

we

have provided

the

of

coun¬

year

'round residential units. We

also look for

a

steady increase in

sales of central station equipment.
To help us tackle our great

opportunities,
the
Worthington
management put a reorganization
plan in motion last August."
This

new

setup will have three

distinct advantages.
It will give us a stronger, more
self-sufficient,
more
flexible
operating unit, geared to moye
fast in a fast-growing industry.
.

our

industry is
as

as

any

nearly

you

can

gineering unit to keep pace with,
demands for products.

your

It will quicken the pace of; opr.

research.

Worthington's Strong Position

Net let'? look at

our position in
promising field.
Worthington has a strong position
in every one of the five divisions

this

rich; and

NY Stock

Exchange
Lights Xmas Tree

air-conditioned

club

or

theater, night
living room, and end the
the same air-conditioned

strong
to

me

and

continues

healthy but it

seems

almost certain to go up, no

matter what

happens.

ucts which you

experts tell

us

will

see

expanded

advertising

promotion

program,

There

are

panded

that

re¬

to

distribution

later,

and

our

New

York

sales New

and
an

ex¬

organization

Jan.

City, members of the

York
1

Stock

Exchange,

will

admit

to

William C.

even

reasons

to

argue

cession would have

This

a

a

positive ef¬

give

us

coverage,

more

we

intensive market

believe

we

can

at¬

announcement is not an

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

mann

will

Hartmann.

acquire

a

Mr. Hart-

membership

in the New York Stock

to

Exchange*

buy these securities.

that

15%
the

of the total, the owners of
remaining space are forced to
condition

are

their

in

levels

rent

order
and

to

keep

$20,000,000

retain

their

tenants.

Philadelphia Electric Comp any
First and

Refunding Mortgage Bonds,

3H% Series due 1983
Dated December 1,1953

Due December

1,1983

Price 99.517% and accrued interest

space.

in the business districts of

But
New

York

there

are

343

reason¬

ably modern structures, not air-

conditioned, containing 67 V2 mil¬
feet of rentable area—

lion square

almost
as

The

that

six

times

already

owners

as

much

The Prospectus may be obtained in any State in which this announcement is circulatedfrom only such

of the undersigned and other dealers

lawfully offer these securities in such State.

air-conditioned.

of these buildings are

obtain the necessary

services

as may

space

HALSEY, STUART A CO. INC.

already installing air conditioning
or are planning it as soon as they
can

to

Worthington,

technical
jobs.
example,
has

for

BLAIR, ROLLINS A CO.

DICK

1
A

MERLE-SMITH

INCORPORATED

the

execute

BAXTER, WILLIAMS A CO.

WEEDEN A CO.

WM. E. POLLOCK A CO., INC.

INCORPORATED

contracts to furnish air condition¬

gathhospitals,. department stores and
Air Conditioners
Ga., Dec. 4,1953. manufacturing plantsareall pros¬
_

on

partnership

office space in a given city reaches

by Mr. Lawler at a




a

It will help us develop our en¬

"recession proof"
find.

The

restaurants, ing equipment for the American
and similar places. •Express Building and the United
States Lines Building.
We estimate that over 75,000
Of course, office buildings,,are
units were produced during the
bnly part of the story. Hotels,
ing - of Worthington
stributorai; Sea: Island,

for

much
larger program than we did this
year;
and to a lesser extent in

BACHE A CO.

NEW

YORK

HANSEATIC CORPORATION

for

conditioners,

con¬

«air-conditioners

room

which

capacity.

t

train

automobile, have lunch and din¬
ner

ones.

packaged air

ditioners, where we foresee an
increase of 60% in 1954 over 1953;

Third, competition in the hous¬
ing field would be such that new

air-conditioned bedroom,
air-conditioned

an

in

customers

competition.

travel to his air-conditioned office

in:

on

facturers

More" in

expect the major portion
increase to come in sales

the

of commercial

Hence it would tend to be

I think

The day is not far distant when
the average American will wake
up

used

*

stores, offices

•An address

on a

tives.

"40%

the amount of air conditioned

once

can see

the

Now

am¬

for

ammonia

new

of

and

condition

present

homes would have

for synthetic

and

the

attract

air

to

hold

more

Second, manufacturers will be
seeking ways to lower production
costs and improve the quality of
their products. Air-conditioning of
factories has dramatically proved
its value in achieving both objec¬

air-conditioned.

Some 2^2

what a great poten¬
warm-air market holds
for us. In addition, there are IIV2
million dwelling units equipped
with steam or hot water heating
which are prospective users of
central water chilling packages or
independent summer air condi¬
tioning systems.
You

tial

many

stores
to

goal of

one

busi¬

our

If this
rule is
correct, think
what it means to your business—
million are using
and ours!
forced warm air furnaces more
Take a look at the office build¬
than five years old, and can be
considered as prospects for re¬ ing situation in New York City,
placement year 'round units with for example. New York has had a
construction boom
in¬
little change in air distribution postwar
volving some 51 new buildings
systems.
completed, under construction or
In addition there are about V/2
to be completed before the end of
million homes with relatively new
1955.
These buildings contain
forced
warm
air heating units
more than 12 V2 million square feet
which are prospects for an add-on
of air conditioned
prime office
cooling package.

work.

demand

if the general economy

Station

Central

any

last

of

First, sharpened competition for

and

this

We

of the air-conditioning industry.
Wall
Street
community
During 1953 our sales of commer¬ ; The
cial
packaged
air
conditioners Christmas tree was erected on
day in
(SCY and RCY) jumped by 60% Broad Street by the New York
bedroom.
ranted.
Stock Exchange on Tuesday, Dee
over 1952.
15. The tree, a 45-foot Norway
:
Don't misunderstand me — I'm
A Recession-Proof Industry
Our volume of Freon compres¬
spruce,
is
the
30th
to
not deprecating the size and im¬
bring
and
There has been so much talk sors
condensing units in¬
Christmas cheer and warmth to
portance of the room air condi¬
and we held our
about an eventual recession that creased 25%,
the financial community.
tioner market. Although the in¬
own
I think it is worth noting that you
competitively in the installa¬
dustry didn't realize the goal of have
tion of large centrifugal systems.
Commencing Friday, Dec, 184
in
air-conditioning what
one million units that the optim¬
will
be
tree
seems to me to be a very strong
Overall we showed a 16% in¬ the
lighted and
ists predicted, about $270 million
defense against any possible re¬ crease in total volume of air-con¬ Christmas carols will be
played
worth of units were sold this year
cession. What will happen to the ditioning and refrigeration prod¬
from the outside gallery of the
—big business in anybody's lan¬
ucts. Moreover, our contribution
air-conditioning industry if we
guage.
Exchange during the noon hour
have a general business recession?
percentage-wise to the total cor¬
and in the late afternoon, as in
Furthermore, we expect this I would expect the volume of airporation volume increased during
volume to double in the next five
conditioning business to keep right
years past.
the year.
years.
Perhaps then it may level on increasing. That's what it did
off at around two million units
We now expect a 40% increase
during
the
depression
of
the
per year in the following
five- 1930's.
in overall volume next year. With
Spear & Leeds Admitting
year period.
That looks like an¬
Obviously it will go up faster our new facilities, our new prod¬
Spear & Leads, 11 Wall Street,
other half-billiOn dollar volume.

such optimistic sales
Central station air conditioning
figures as these? Let me give you
business, commercial and
some
facts
and figures about —for
—for

The
monia

this volume will

most

Institute of

Within

$150 million.

Room Air Conditioners J

The Ameri-;

of

total retail volume

~

first.

one

construction

r

pun—let's

look

the

plants in which refrigeration
equipment plays a major role.

the half billion dollar mark.

near

rayon,

new

in the succeed¬
ing five years. In 10 years, in
other words, we'll be getting up

hottest

as

are

caused

and doubled again

topi c—i f
you'll pardon
the

of over

a

such

nylon and
wholly dependent on re¬
frigeration. The plastic industry's
growing demand for ethylene has
orlon

be doubled in the next five years,

air

conditioning is
the

That's

year.

We predict that

Since resi¬
dential

the

the

without

Let

is

increased
in

tain

'54."

retail sales would force
order

with

Synthetic rubber cannot be made
a
refrigerant. Synthetic

(!) the increasing competition will spur retail stores to
conditioning; (2) manufacturers will look to air
conditioning as means of lowering production costs and im¬
proving quality of products; and (3) modern homes will
require air conditioning, Cftes growing sales of air conditioners
by Worthington Corporation.
nstal! air

can

has

bounds

and

why this industry will continue to

grow;

:

field

great
potentialities is refrigeration. Its
application to the processing in¬

Vice-President, Worthington Corporation
-

another

the sale of air-condition¬

on

more

Industrial Refrigeration
Still

By MATTHEW M. LAWLER*

fect

ing systems.

9

THE ROBINSON-HUMPHREY COMPANY, INC.

December It, 1953.

.

The Commercial and Financial Chronicle

(2370)

10

By More Efficiency
Assistant Director, Security

very

Lyne stresses fact that although railroads since the depres¬
their proportionate share of

"Credit"

is

However, for the
comments

war

"the

prewar

traffic

was

This

the

mercial

industry and

and

the size of its

tional

financial

stant

li g a t i o
The

the
power

ns."
greater
earning
of the

Lyne, Jr.

Henry

relation

to

com¬

in

1952 than in

with

pared

increase

an

dependent
of railroad
traffic and second upon the abil¬
"Earning

power"

is

ity
'i

to

into

to

net

with

of

.severe

a

gross

carried

much

publicized fact that the railroad
industry's proportionate share of
the country's traffic (as measured
by
ton-miles
and
passengermiles) has been steadily declin¬
ing.
However, this unfavorable
proportionate

trend

provides

a

misleading
actual

impression
of
the
growth of railroad traffic

in the postwar period.
railroad
industry

severely
and

from

both

While the
suffered

competition

depression during

National

talk

a

the

Association

1930s

by Mr. Lyne before
of Mutual Savings

Banks, New York City, Dec. 7,

1940

in
on

125%0

of

be¬

compared

1952,

increase

80%

and fuel and

about

and

in¬

rates

wage

150%?

costs

about 50%

slightly less

freight

rates

and

the average in pas¬

fares, it is obvious that
the industry
had to seek othermethods of making up the differ¬

to

in

than

in

ship

1952

22%

3%

were

Again, as in the case of many
other large industries, the solu¬
tion to the problem lay in in¬
creased operating efficiency—do¬
ing the job with less man-hours

in

the

65% higher).

in

about

was

1940

If

the

car¬

number

even

more

amounts

of

perform

a

in

traffic

in
in

1952

1929,

miles operated

of

new

37%

whereas
in

1952

that

the

and

the

materials required

by

improved

ciency.

eral

I Railroads

Income

in

year—being 118%
1929.

over

since the previous periods,
after Fixed Charges (but
Federal Income

1940

above

(Results given

are

Taxes

because

taxes

in

offer

to

sell

nor

a

440%

would

the

1940

distort

otherwise

1929

lower

in

comparison.)

Therefore,
if
railroad credit may be measured
by the earning power of the in¬
dustry as a whole in relation to
the

size of its fixed

financial ob¬

ligations, I believe it is clear that
railroad credit has improved very

significantly since the end of the
decade.

prewar

1952
than

were

the

about

amounts
same

one-

fuel

of

half

higher

as

Individual

Many

Railroads Better Than Industry

good
railroads
has

individual

many

been

of

a

much better than that
industry as a whole.
In

very

the

fact, the performance of Class I
Railroads as a group is heavily
weighted by that of a few large
railroads operating in the North¬
The Eastern railroads have,

east.

in

general,

had

less

ful in

ent

in

growth

traffic and have been less

success¬

off-settir.g higher costs—for
which
their

in

control of

largely inher¬

are

location

of operations and

nature

and

beyond the

are

required

was

about

words, throughout the
postwar years to date, the em¬
phasis in the railroad industry

6%
was

offer

to

buy these securities.

The offer is made only by the Prospectus.

Long

Haul Truck

($1

par

part

of

Copies of the Prospectus
writers,

may

be obtained in

including the undersigned,

as

per

lost

to

competitive. trans¬
media — most particu¬

the

of

pense

and

intercity

in¬

trucking

The long haul truckers
gaining traffic at the ex¬

still

railroads

the

have

been

labor

but

rising

is

their

also

for
on

creasing

"make

sharply

may

the

of

a

As

than

more

ably

20

years—is

handicapped

lation

and

by

Co.

had been made
within

the

or

Rupe & Son

the Transportation
America

has

&




Weeks

Lasard Freres

&

Co.

Wertheim & Co.

Government,
Association of

been

performing

a

constructive service in point¬
ing up the Federal Government's

very

conflicting policies and
the

in

fields

transportation
subsidization and

and

providing

activities

of

specific suggestions

for

desirable changes.
While
extensive
changes

can

reasonably be expected to take
place
only
gradually,
there
is
bill

one

which

now

is

much

before

designed

of

the

Congress
eliminate

to

the

delay in granting
freight rate increases which may
be

in

needed

higher

the

future

operating

to

costs.

offset

In

past, extensive delays in

the

approv¬

ing higher rates have been typi¬
and

cal

have

sums

of

cost

the

money

railroads

in lost

rev¬

Conclusion
believe

I

I

make
have

a

it is

a

defined
very

it—has

that

important potentialities also

exist for

further improvement

NY Investment Ass'n

Elects Officers
William

S.

Goedecke

laden

Smith,

firm,

was

elected

President
the

of

Invest¬

ment

Associa¬

tion

ve¬

of

New

ing of the As¬

toward

the

annual

have

Dec.

showing

on

trains

of

flat

major points of distribu¬
there are many ob¬

to

the

be

point
*>k%1

overcome

of

view

—

both

of

the

new

were

also elected

a

cars

held

1953.

Other

as

follows:

Francis
William

S.

Goedecke

J.

C

of

u

11

u

m,

The First Bos¬

to the railroads to be

over

15,

officers

large trucking

been

meet¬

f

sociation

zero

While

';

of

Barney & Co., investment banking

a
typically small per¬
in the trucking industry

between

•

in

the future.

to

cutting their operating ex¬
by turning loaded truck-

from

only

Yorkatthe

country

stacles

not

the end of the prewar decade but

wider recog¬

heavily

this reason,

tion.

statement

credit—as

significantly since

companies in various parts of the

trailers

fair

railroad

that

left for net—which

"ferried"

Hornblower

com¬

under way

are

Federal

result, the margin of

dwindling
point.

Dallas

regu¬

In
addition to various studies which

penses

&

inequit¬
to

peting transportation agencies.

the
high¬

caused

—is

of

Loeb, Rhoades

gov¬

both

by subsidies

growing interest in the possibility

Carl M.

the

on

and

railroad indus¬

been

centage

securities in such State.

the

of

more

damage

by

hicles.

lawfully offer these

Policy:
there has been

try—although it has operated in
a
highly competitive field for

rules

In addition,

because

and

revenue

highways

State only from such of the several Under¬

profitable

a

more

work"

the rise.

need of the states for

For
any

<

the

sharply.

becoming

unionized and has been

more

nition

Share

reduc-

and

industry

that

improved

has

$11

costs

years

both

ernment

been

gross revenue

Price

haul

Transportation

several

to

way

value)

substantial

a

Competition:

state taxes and fees have been in¬

Common Stock

be¬

long haul
latter would

increasing recognition

an

large

management.

Demands

Corporation

cooperation
the

would obtain

of
course, be better than it now is
if a substantial amount of prof¬
itable, long haul traffic had not

are

Texas Natural Gasoline

a
magnitude
strong economic

o r

line

gaining large wage increases com¬
bined with costly fringe benefits.

209,000 Shares

It is obvious that'
a

since

Federal
For

Railroad earning power would,

Truck

1953

the

Some Future Possibilities

costs

December 17,

which

enues.

unit
one-

allow¬

no

form of traffic.

new

in

performance

f

regulation

Average

,

The

re¬

much.

In other

average

an

of

delivery

a

makes

great

so

of service in 1940 and the amount

of

solicitation of

before

the

number

by over-the-road truck

by

in

former

the

before Federal
effect

and

are
an

benefit
tion

income

was

fast

as

provide

truckers,

50% above 1929.

Income

dustry.
neither

Taxes),

and

highway, and

tween the railroads and

large reduction in Fixed Charges

larly

announcement is

of

same

truck-tractors

incentive

1940 and

over

an

one-

the

require.

would

peacetime

Because

than

the

This

savings of

higher

was

1G0

would

(before Fed¬

previous

less

over

movement

effi¬
1952, the in¬

Taxes)

any

of

least

at

the

operating

For the year

of Class

portation

This

rail¬

Available for Fixed Charges

come

flat
New

of course, for the savings in
gasoline, wear and tear, etc. on

combination of higher rates

a

and

50

on

from

ance,

largely

been

hauled

haul

to

trailers

on

of increased unit costs

waves

reasons

to

unit of transportation

less

third

are

were

motive

fact

the

quired to perform the

were

invest¬

man-hours

by

in

service

were

lower, locomotive ownership

1953.

illustrated

were

comparisons
1929,
ton-miles

with

to

machinery
and
other
equipment and the adoption of
improved operating methods were
necessary.
The
improved
effi¬
ciency that this policy produced is

5%

same

made

order

efficient

more

cars

Charges

In

power,

27% lower.

over

in

ments

13% lower than

Fixed

and

materials.

less

accomplish this, large

freight

important, total railroad debt
1952

rent

of

lower

lower and

freight
What is

and

owner¬

car
ownership was only
higher (although ton-miles

ried

has

Performance

1940, locomotive

was

by

ex¬

Chicago by rail with

schedule.

ence.

by

erated

than
•Resume of

railroad

senger

Although the volume of traffic

earnings avail¬

well known and

on

only

which

—

the

1952

balance,

industry

road

income

unfavorable effect

Charges

depression of the 1930s, it

has been

an

an

than

fixed

meet

to

tween

the railroads in 1952
charges and was very much higher than in
■other financial obligations.
1940, this increased business did
not require a substantial expan¬
Railroad Traffic Volume
sion in railroad plant but actu¬
Ever since the beginning of the ally was handled with a smaller
plant. Average railroad miles op¬
able

I

dollars

transfer

business

the

of

slowness

granting increased
offset higher costs has

material

Size of Plant, Debt and Fixed

first upon the volume

The

creased about

66%

Relation

in

Com¬

Commerce

Interstate

of

successful in offsetting the recur¬

15%

Since

in the future. I

Volume

costs
by charging
products through

their

railroad earnings.

for all intercity passenger traffic.

Traffic

their

of

part

offset

unit

also had

com¬

of

the rail¬

other industries,

for

rates

con¬

1940,

up

Commission in

prices.

miles

greater the
degree of assurance is that these
financial obligations will be met
the

make

wages

of Operating Expenses.

mission.

intercity freight traffic
71% in the Gross Na¬

about

in

a

On

than

the

competition, the railroads
still carried 43% more passenger

finan¬

of its

size

the

obligations,

been

has

regulation over rates imposed by

traffic

industry is in
cial

with an increase
period of about

Product expressed

this

today

quired

total

is

debt

billion

For

temh the number of man-days re¬

amount is 13% less than in 1940.

both by the considera¬
tions of competition and by the

Although competi¬
tion
from
private automobiles,
buses and airplanes has affected
railroad
passenger
traffic even
more
severely than has freight

ob-

$10

trailers

be

expenditure

of this

the

years,

Railroad

I

about

however,

same

postwar

Class

faced

increasing rates and fares. They
have been limited in this respect,

substantially

80% in the ton-miles of all

power

of the railroad

the

in the post¬

have

more

in

has been the constantly

60%

higher

almost

wartime demands).

compares

during the

single problem the

because

Like

railroad

which

not

stimulated by

re¬

lationship be-earning

in

year

in spite

to

the

long

on

great.

109

of

could

York

It is

that

costs

estimate indicates that

one

train

cars

fi¬

certificates

trust

equipment

from

additional investment of $9 billion

problem faced by indus¬

roads

rail¬

of

were

Power

try in general, the impact on the
rails has been greater than av¬

65%above the 1954 level (the last

prod¬

tween

1952

Earning

Net

While

waterways,

ton-miles
in

traffic

road

will

uct of the

inland

and

nevertheless,

Credit"

road
as

lines

my

a

remainder

the

of

most

or

estimate

labor

be very

can

ings during the postwar years and

common

over

hauls

in

ample,

terials.

erage

officials

savings

earnings, part irom cui rent earn¬

rising unit costs of labor and ma¬

years,

ating

war-time

from accumulated

railroads—be¬

ferry

"piggy¬
a large
movement, railroad oper¬

volume

came

any

the

back" project may become

this large sum

of

Part

purpose.

and

this trailer

fore

prewar

have

years

truckers

on

making

smaller
physical
capitalization and
smaller
Fixed

The greatest

railroads

again been subject to severe
competition
from
trucks,
pipe

"Rail¬

define

postwar

on

nanced at low interest rates.

Railroad
•

has

to¬

I

day,

of

purpose

the

during

and,

intan¬

not

but

In the postwar years through

noteworthy that,

rail traffic has been increas¬

emphasis in the railroad indus¬
been on expanding plant but on making existing
plant more efficient.
somewhat

a

been

expanding plant
it more elficient.
1953
about $9 billion has been spent by
the railroads primarily for this

has

volume

larger
in

than

considerably

out, throughout postwar years,

gible thing and may not be meas¬
urable in specific financial terms.

handling a

now

Charges.

economy

try has not

is

with
smaller

plant,

and efficiency of operations have improved.
Notes reduced capitalization of railroads, accompanied by
much lower fixed charges in relation to revenues, and points

•

considerably

business

period,

sion of the '30's have been losing

ing, and

industry

of

Research Bureau, Philadelphia

nation's transportation business,

21%

was

road

By HENRY LYNE, Jr.*

Mr.

own¬

car

lower.
Funded
debt in 1952 was 12% lower and
Fixed Charges 36 % lower than in
1929.
In other words, the rail¬
ership

Railroad Credit Boosted

5

freight

lower and

42%

.Thursday, December 17, 1953

..

ton

Corporation,

Vice-President;
H. Lawrence Parker, of Morgan
Stanley & Co., Secretary;
and
Norman
W.
Stewart, of F. S.
Smithers & Co., Treasurer.

Volume 178

Number 5282

.

.

The Commercial and Financial Chronicle

.

(2371)
living, in essence,

Foreign Trade—Key to

produce.

Our

Prosperity

President, National Cash Register Co.

trade

deficits.

In

one

important single factor in promoting world

keep the American

industrialist stresses trade

'*

■/

,

these

swer

is that the basic

together

there is such

prominent

economy prosperous,

largest
country, in

order to match the total
output of
the United States on a 40-hour
week basis,
they would have to
work between 103 to 117
hours.
Add

most

of

in those countries with the

By S. C. ALLYN*

Asserting

a

man

hour, is substantially greater than

World Peace and

trade is to

ability to
per

means

output,

and

the

an¬

reason why
strong demand for

a

American

magic wand.
fact

and

cumstances,
right with

And

matter

a

business

our

today, but it

many

as

considering the
everything
is

all

in

Ger¬
Ger¬

as

of the keys

one

'

operation

haps

depends

of your

power

the

on

trade imbalance.

with

world's

little

a

anecdote from
World War II.

sterling

Our National
Cash
Co.

Register
office

Paris
t h

in

was

on

line

e

march

of

when

Hitler's Wehrmacht

rum-

banking

financial

London

the

was

it

does

their

on

to

center—and

center

of

the

the

world's

besides.

area

economy

is

of the factors

one

foreign trade field.

Add that factor to all the others that constitute

hurdles

Then World War I

besetting the

to

the American

business

along, man interested in expanding fortrade, and his ingenuity is
strongly tested.

came

and to finance it, the
sterling area
sold some of its investments in

America.

is only natural that a potenWar II the sterling area had subinvestor in world trade should
stantially liquidated its holdings b? af?aid of s0 many fisks in cornin this country.
That meant no hination, but there is no reason
the

By

end

of

World

.

"

allow those risks to paralyze
route.
This
liquidation
had
a him to the point of inaction.
They
global impact because two thirds are ncd as terrifying as they look.
dollars

more

bv

the

dividend

115

an

miles

southwest

ancient

Freyburg
woods.

of

champagne
in

—

So

the

Berlin

cellar

to

in

Thuringian

might

you

say

from

that part of the story that Ameri¬
can
business
abroad
sometimes
has

to

pects

go

to

there

was

not

underground

if

CARE packages, and we did
that.
The packages contained
cigarettes
which we had intended for our

per¬

-

testify to that

office.

point,

help that our headquarters
Dayton could send to Herr

in

heart

foreign staff

than

more

an

they did be¬ Rohm and his men in their minia¬
foreign trade ture enterprise. But we could send

successful

a

that

much

tant to mention what

.

•

At

people themselves who made
this possible.
I think it's impor¬
cause

for

rooms

man

products is our ability
head power and their hand
power.
produce quality goods at at¬
Our Berlin
stability. Holds U. S. can develop
manager, Herr WiL
tractive prices.
;.
a much
helm Rohm, began to read be¬
larger volume of its foreign trade despite such road•*! In the long run further increases
tween the lines of Herr Goebbel's
blocks as exchange
in'% foreign productivity will do
controls, non-convertibility of currencies,
optimistic war communiques in
much to solve the dollar
import and export controls and tariffs. Says tariff elimination
shortage 1944 and
privately decided that
problem. Their increases in turn
will not close dollar
the Russians would
gap, but might disrupt our economy. Urges
occupy
the
depend* to a considerable extent
U, S. companies
city within a few months. He also
on 4he
operating abroad employ native managers.
,
exports of capital and tech¬
guessed that his beloved factory
nical assistance from the
United
There can be no doubt that for¬ abroad
would be a prize piece of loot
for about 80 years.
This States. To
encourage
export of
eign trade is a key to world didn't hurt
for the Soviet government.
anyone very much for American
capital
abroad
some
peace.
It may not be the whole a
So he lined up as
long time because other coun- form of tax relief and
many trucks
other Reen¬
answer, but it is one key to the tries had huge investments in this
as he could and loaded them
with
tives should be instituted,
answer. I beblueprints and tools and parts
country.
The
dollar
dividends
It is certainly true that the
dy- and
1 i e v e I can from those investments
key employees and moved
offset the namics of the
American

nations

among

world peace and political

to

The owner of a small hotel
let him stow his
gear in the base¬
ment and let him use two
little

zone.

cir¬

our

was

11

it

ex¬

survive.

men's
own
pleasure.
But
they
thought up a better way to use
them. Cigarettes were a medium
of exchange at that time—and a

far better medium than
money. So
our

people traded their cigarettes

for tools and equipment and
grad¬

ually built up a self-sustaining re¬
pair business. I suppose you might
they literally smoked out busi¬

say

where it didn't exist.

ness

even

managed to lay aside
working capital to resume
facturing.
a

of

They
a

little

manu¬

Finally, they were able to lease
plant at Augsburg, and in March
1949, the first postwar, com¬

pletely

German - manufactured
cash register, came off the assem¬
bly line. So, you see, the National
Cash Register
Company has also

survived
a
cigarette
economy,
which is another hazard that isn't

anticipated
when
the
Fre.yburg adventure didn't usually
long. Herr Rohm was tipped risks of foreign trade are talked

The
last
off

that

Thuringia

had

been

about.

We also know what it is to live

labeled for inclusion in the Soviet

with

dollar

a

shortage. As World
a close, we could
Stanley C. Allyn
impending shortage of
dollars in practically all the coun¬
nized the possibility of his tools
see- une oi the sterling area. And so the dol- ft Obstacles Can Be Circled
tries in which we hoped to sell
the tanks swerved out of
line and lar ean came into being
If the American manufacturer being seized by the Russians — machines.
This could only lead to
headed straight for the Office.
and he also recognized the pos¬
The
Th_
TInitpr1
Statps
haq
bepn has th(? rigb£ product and knows
tank came to a halt and
increasing difficulty in shipping
disgorged u Af•
A, 7 r
tbe ngh methods to sell it, he can sibility that prowling Soviet
from the United States to those
a German soldier
who thundered bndging that ga? with
cjrcie the obstacles and jump the troops might imprison him and his countries. We had to
economic
<on the door
and made it plain he
develop a
and^ military aid to the hurdies. He can make a decent men—or shoot them.
tune ot about $6 billion a
source of supply for machines for
wanted to come in. So in he
year, return on
his investment, and he
Finally he found a refuge in
came,
but this is purely a stop-gap operand there he stood in
can
a]s0 have the satisfaction of Gunzenhausen
that enemy
in the
Continued on page 1G2
American
ation.
It cannot be a permanent
uniform—with a gun on his
knowing that he has contributed
hip
solution, as we all know.
and a grim look on his
a little
face. Our
something toward a better
Some people think; they have
employees had a bad moment, and
international understanding — and
a
permanent solution. They say good will
then the German
among men.
suddenly smiled
This announcement is
matter of record only and is neither an offer to sell, ncx M
that all we have to do is to lower
and said:
The
National
Cash
Register
solicitation of
offer to buy, any of these Securities. The
offering
American tariffs. They say that Company has been in world trade
I m
is made
from
the National
only by the Prospectus.
Cash
;f we did that other peoples could for 68 out of the 69
bled into town

along

,,

,

the

^"one'of

,

W?rlr Yde' eY°f'

T„

.

„

zone,

so

his

took

caravan

to

the

road

again. It traveled mostly by
night because Herr Rohm recog¬

War II drew to

foresee

an

J

^foreign

a

an

^

Register Co.

in

Berlin.

I'm

,

sorry

I can t
stay very long, but I was
just wondering if you made
your
quota last year?"

sell

to

buy

more

far

as

right

ligerency—at least

the

viduals

far

concerned.

are

When peo¬

ple of different countries
sociated

in

indi¬

as

are

as¬

a

mutually profitable
enterprise, they frequently over¬
come

from

be

able

That is

us.

it goes.

as

to

true
*

It sounds fine, but the cold fact

I think that little
story goes to
show that friendly business relations do take the edge off bel¬
so

hence

and

us

is that

ratio of customs duties

our

now

world!

ratio

in

been in existence.

has

.

Other

of

The

New Issue

duties

America

has

declined

We

because

152,465 Shares

still

are

in. foreign trade
have learned to live

we

with

already

We are
low-tariff country. But

roll

dollar

Dixie

methods may not work for
every-

traditional animosities. They
prejudice and gain un¬

a

trade

Can't

outgrow

Close

exists,

still

gap

Dollar

Gap

the

complexities

with

the

and

—

punches.

to

Our

they might

They come to need
another—and in essence, what
else is foreign trade
except inter¬

have free trade

dependent

serve

clues

as

Cup Company

5% Convertible Preferred Stock, Series A

°ne'and
but they have worked for
us,

by

Eliminating Tariffs

derstanding.

IDE)

enced

68% in the last 16 years!
the

December 8,

our

customs

J '

concerns

have been in world trade
longer than that, but we have been
in long enough to have
experimay

almost
everything
that
imports could
happen
to
an
American
is among the lowest in business abroad,

the total value

to

it

years

($50

value)

par

nate the tariffs and close the dol-

one

gether

to

working
totheir separate

satisfy

and

needs
If

people
wants?

we

could

magnify that feeling
inter-dependence in a global

of

sort of way, I believe the chance
for lasting peace and world
pros¬

perity would be substantially
hanced.
States

en¬

I also believe the United

^

^

can

develop

much greater
volume of foreign trade, although
the

road

to

that

a

desirable

objec¬

tive is full of obstacles and hur¬
dles.

Other

Roadblocks to Foreign Trade

suspension
formed

A

few

of

these

roadblocks

are

These

barriers

international

its

United States.

area

trade

with
a

the

lit-

tie tough to say, but its true. Let
me
see
if I can spell it out a
little more:
recent

years,

and

on

average,
we
have been
other countries about $5

the

buy from them.

we

that

we

abroad

have

than

The

benefit

we

selling
purchase

The

is

more

from

♦An

address by Mr. Allyn at the 58th
Congress of Industry, sponsored
the National Association of Manufac¬

Annual

New

York

City,

Dec. 2,




United

1953.

suspensions,

States

higher the

the

is

level

activity,, the

t

p

eco-

•

^

of

do¬

our

higher

rpL«

^

-

the

_1

*

___

t
nrnmntini
P°rtant sing:le :factoii in promoting
a

at home does

twL elseTo

strnn?

more

in

Of the

Experiences

the

Our

business has lived

overseas

through

and

wars

In

political
of

many

we've entered,

Cash Register

rfh'

A

tom

ic

any-

keep imports at high

nn

p0iicies

should

be

rimihf

that

nnr

piic

dou„ AtnaA„?AACA?:
and

procedures

reexamined.

In

addi¬

consistent tariff policy not
subject to the whims of a chariga

economic
way

in

climate, will go a
building confidence

for the foreign trader. In
my opinion that is more important than a

further reduction in tariffs.
The

three

other

and,

*

standard

States
times

is

the

nacj

of

per

share to holders of its outstanding Common Stock, 149,008

subscribed for by holders of

writers

purchased from the Company and resold the remaining 3,457 shares.

coun-

the National

government.

We
Copies of the Prospectus

hasn t

happened

the

several

to

wboie

may

be obtained from

underwriters only in

underwriters

are

and in which the

others,
a

Subscription Warrants (including the

Underwriters) pursuant to the right to subscribe. The several Under¬

Company has lasted

the

it

were

several

up-

qualified to act

Prospectus

any

of

States in which such
dealers in securities

as

may

legally be distributed.

factory stolen

from

us#
jf usecj f0 be jn Berlin,
Now it's somewhere in Russia. It
was a beautiful
factory than once

employed kj
3,500 people. Somehow,
^ bad escaPed being bombed
during the war, but when the

viiij/Avj vu

UUllltilV/W

came

in, they virtually

rolled [t up like
the

elevators

and

the

them

up

loose

machine

them

in

didn't

a

a

and

parts

grand

leave

heard

on

top

jumble.

thing

that

of

They

staff in

fast

American Securities

White, Weld & €i»

details

Corporation

A. G. Becker & Co.
A. G. Becker & Co.

Hemphill, Noyes &

Incorporated

W. C.

Carl M. Loeb, Rhoades & Co.

Langley & Co.

(/

Paine, Webber, Jackson & Cu-iii

from

G. H. Walker & Co.

Spencer Trask & Co.
First of

the

Stone & Webster Securities Corporation

Lehman Brother

Bacon, Whipple & Cjw

was

Michigan Corporation

Fulton, Reid & Co.

The Illinois

Company

our

employees when I arrived in Berlin in August, 1945 as a
guest of
the Army.
What was left of our

living in the
rising at a rate

Smith, Barney & Co.

Eastman, Dillon & Co.

dumped

movable.
I

The First Boston Corporation

wood-

work and the Windows and then
loaded

Hornblower & Weeks

a rug and took

11 home with them' They ripped

out

Glore, Forgan & Co.

j

Kaiman & Company,

Inc.

Raffensperger, Hughes & Co.

Laird, Bissell & Meeds
Schwabacher & Co.

Piper, Jaffray & Hopwocd
F. S. Smithers & Caw

Incorporated

ghosts.

gutted

Berlin

emerged from the

building
like
so
many
They behaved as if I
a. magician who. could make
trading nations,
know, the standard of everything all right again with
as

important

as you

because

very many

152,465 shares of 5% Convertible Preferred Stock, Series A, offered for

subscription at $50

War

shares

Pr>nn" Russians

thin

Selse t0 keep imP°lts at mgn

United

»

turers,

tariff

hub of the free world today.

mestic

ing

———

by

from

Lowering or elimination of tariffs
do not provide the entire answer.

long

fact

thinking

with the United States are the have even lived through one risk
smallest would receive the Ingest that I didn t mention previously

billion

been

dis-

In

and countries whose trade deficits longer than

selling

worth of goods in excess of what

in¬

Register's

Cash

tries

tion,
In

which

people admit would

have

to balance

I know that's

tariffs

are

foreign trade for the first

heavals.

largely resulted from the inability
of the non-dollar

of

who

time.

most—only reduce the trade deficits problem by less than 40%,

V CI

restrictions.

should

we

those

terms of

rupt our economy—would—at the

nomic

exchange LUlHJLV/JLa. non-convertiLi""
controls, XlUll"bUIl
bility of currencies, import and
export controls, tariffs and quota
CALllCtllgC

say

completely. Elimi¬

lar gap. But will it? On the basis
of
my
information, a complete

The

v

people

for

,

as

several

iw

Scott, Horner & Mason, Inc.

Sterne, Agee & Leach

Wurts, Dulles & Cot.

were

+

4

The Commercial and Financial Chronicle

earnings, and (2) depreciation and
amortization.

Cold Facts About Steel
By IRA U.

Some reflections

on

Wall Street"

of steel

the current financial strength

com¬

market

and their neglected position in respect to

panies,

of

number

A

statisticians have pre¬
pared postwar studies of these for
several companies. I won't burden
you
with the calculation tables,
but in the 1946-52 period U. S.
Steel had over $50 a share in this
retained revenue department,
Bethlehem $63 and Wheeling $70.

popularity.

Deputy to the Secretary of the Treasury
raising of

In the course of

fore

the

t h

in

week

of

available

e

Liberia, Labrador

from

America. So consider
the steel mills of today in splendid
South

and

"Manchester

Guardian"

(England, not

of

Hamp¬

Del.
8,
W.

for the eco¬

nomic
house

dog

here;

that

first

the

e'l 1

w

either

105%.

about

have four mil¬

capacity in existence Jan. 1, 1952.

lion

Obviously

or

un-

so

ployed
of

by

added,

with

July;

...

,

and our only salvation from cyclical cataclysm is
a $25 billion Federal deficit. Well,
Colin Clark is quite a guy and his
to

more

come,

postwar prophetic flights into financial fancy have, in a number
of

cases,

He

rate.

proved amazingly accuuses not
a crystal
ball

capacity has been

new

or

saying

Ira U. Cobleigh

Fourth

next

a

capacity ratio

120

to be on a
have been darkly

appears

(of

80-85%

of

figure

a

96'million

is

than

was

turned

tons

more

—

in any

out

war

complicated slide rule forown.
He has, how-

little or no company for his
Cassandra-like vaticination, either

producing with the most modernizecj facilities.
Overtime payrolls

but

a

all his

ever,

here,

among
the economic
Merrie England.

or

Marxmen in

don't

Now
not

alarmed—were

get

going to plunge you into a longeconomic dissertation today.

hair

80%

and

year;

diminish

would

Actually 80% is pretty swell historically.

under 20%.

showed

steel

operations

Clark

above

is

of restatement of the

attributed

feet

to

cyclical detype of

our

iet's

running

60%

start

not

capitalism.

for

year.

downspin of

be

pnH
and

thnnrv

in
in

equities

dangerous
latrh
latcn

onto,

"J

the

against

murmurs

t

or

iimrtiirP

juncture,

think the good
wp+

and

pro-

aim

wp

tn

the

on

Aluminum,

ground

plvwoods

and

are

Iyw,. b dlc!

.

,

displacing steel

it is

5ut

steel

other

like

Longer

To
10

be
oe

cyclical

not
not

as
as

has never been in better
nas never oeen in oetter

financially,

shape

is
is

the

from

or

teeh-

standnnint nf mndernitv and

standpoint ot modernity and teenmcal progress.

It

may

neriod
period

transitorv
transitory

be

in

lush
lusn

to
to

now

from
irom

J
prefabricated

with

fine

are,

•

over

making

costs

Md, of transport-air,

time

before

Finishing plants and rolling mills bund material.
evidenced the gieat-

In

all

curp
j

and

furnncp«?

old

fur

aces

with

new

old

hopped

up

dpvippq

have

for

of

rontrol

ocvices for co
insulation

pres-

0

0

gas

g

against loss

better

per

sky-

a

as a

Stock

York

New

„

.

,

splendid
p
7

.1"

Commodity
Chicago

shape

the Period
industry

Although

J cv
uV
1947-52 debt
j

doubled

New

Orleans
And

ings

Exchange

Cotton

Inc.

^other Exchanges

and

the

for

a

Another

is

money

powerful
kept

two

in

element

sources:

the
(1)

GENEVA, SWITZERLAND




the

same

next

the

job

to

About

year.

debt

still

do

Hartland

S.

been

again

over

within

Mr. Maynard

a

J.

took us a long time to
get into this mess and it will
take a long time to get out.

P.

joined the staff of
Co. Incorporated

Morgan &

It

year.

shall

the

start

year

structure,

accustomed
better

to

in

Vice-President

with

public

freedom,

what needs to be

done, and with

since

June,

Waterhouse &

staff

the

J.

of

of Incorporated

understanding

college

1951.

Forester, formerly with

Mr.

a

from

1937, and has been an Assistant

market Price,

money

a

more

being graduated

on

tl|e advantage of a more flexible
rate

K.
Matthews,
and
MacCuaig,
Assistant

J.

Robert

Trust Officers.

one-quarter of

matures

troller in

P.

Co., joined

Morgan &

Assistant

as

Co.

Comp¬

April, 1948.

>MFC!T JSk

JiH 9 JL

Notes

AA

ED WELCH HEADING EUROPEAN

Ed

by

is

now

Current

should

no

over

and

$95

MsOmm

per

position

393/4

Indicated

Book

1953

48%

National
465/8

dividends

value

1st

6

12-31-52

months

earnings

to

and

is

may

join

cover

a

comprehensive

Members of the Na¬

Association and others

Mr.

Welch

on

the tour

being arranged through the Ameri-

Express Company.

For full details of rates

itinerary, write Mr. Welch direct.

Edward H. Welch

SECURITY TRADERS

ASSOCIATION OF NEW YORK

York (STANY) Bowling
of Dec. 10, 1953 is as follows:
Team:
Points
Klein (Capt.), Fredericks, Murphy, Weseman, Huff
40%
Security Traders Association of New

League standing as

(Capt), Bass, Valentine, McGovern, Bradley
37%
(Capt.), Pollack, Cohen, Smith, Strauss
35
(Capt.), Rogers, Gold, Krumholz, Gersten
33
Leone
(Capt.), Nieman, Gannon, Tisch, Greenberg
33
Growney (Capt.), Bosgs, Siegel, Voccolli, Lienhardt
30%
Meyer (Capt.), M. Meyer, Frankel, Wechsler, King
30
Donadio (Capt.), Craig, Gronick, Bies, Demaye
27
Hunter
(Capt.), Brown, Reid, Farrell, Barker
27.
Burian (Capt.), Gavin, Clemence, Montanye, Whiting
25%
Kaiser (Capt.), Hunt, Werkmeister, Swenson, Ghegan_____
24
Manson (Capt.), Jacobs, Topol, Weissman, H. Frankel_____ :; 17

Bean

Krisam
Serlen

$3

5 Point Club

200 Point Club

town

Inland

38%

42%

$3

$3

S3

$4

S4

7.5%

regular

Yield

6

Data

Bethlehem Republic
51

interested

can

Youngs¬
U.S. Steel

12-11-53

extensive tour of Europe from

is

With E'PT about to expire, with
fine cash resources, lower costs of
scrap
iron, and lesser overtime
payrolls, modernized plants, and
prospects for reasonably sustained
demand, the good steel companies
offer
considerable
investment
merit and attractive yields,
And they're lots less cyclical
than they used to be.

Share

an

July

attractive itinerary.

which

«barpc-

excellent, and for the past six
(to 12-31-52) Youngstown
had an average operating rate of
94.3%, the highest in the industry
for this^period with one exception
(Inland).

in

19 to

tional Security Traders

means

pnmmr.n

cash

TOl/R

Welch, Sincere and Company, Chicago,

planning

May

years

years

business
retained
Per

Price

PITTSBURGH

Roger

Mr.

has

J.

George

>pbat alone is $8

value,

n q(-n nnn

in

realized by fast
charges can be reprogram of debt re-

Exchange Bldg.

DETROIT

who

West,

"Looking ahead, we have about

seems

V
civ mnntbc nt
10^^
t avpmup
ic
in this Slx months ot 1953. Leverage is
interest provided by $93 million of debt

cash

NEW YORK 4, N. Y.
CHICAGO

Board

Vice-Presi¬
dent and Comptroller, remains a
just a good beginning. We have
succeeded in raising $9 billion of Vice-President.
Samuel R. Callaway, Investment
new
cash with little, if any, in¬
crease in holdings of government
Officer, has been appointed As¬
securities by the commercial bank¬ sistant
Vice-President,
and
the
ing system.
In summary, debt following appointments were also

•

the financial strength of the steels
from

N. Y. Cotton

Comptroller.

putting the govern¬
sounder shape are

in

debt

ment

on hie 3,35U,UUU common shares,
they were % of that for the first

duction.

Trade

Exchange

"The

forts towards

1952 earnings were $6.84

share.
are

acquisitions reduced earnings in
a
period of high EPT taxes, affording a more favorable expense

leased

of

the

elected

had

policy, Mr. Burgess Maynard Vice-President, and that
Frank
Forester,
Jr.,
Assistant
results of the year's ef¬ Comptroller, had been appointed

stated:

earnings

three

the

$47

up,

™UsStrwyereC10™J^head.

depreciation

Exchange,
Board

that

announced

Directors

of

Incorpo¬

Wall Street, New York

23

City,

President

Co.

&

Morgan

debt and fiscal

than the stock is selling for;
book

blown

,

in

Exchange

Cotton

York

New

rated,

Alexander,

C.

P.

But 11
«

projected)

(1953

over
and

^

7
?
nonunion
Financially, steel companies

Exchange

Stock

American

Speakin g
of the
T r e a s u r y's
year.

W. R. Burgess

J.

of

if

But

cause

Retained

for

sbare

m0re

mori-

ratio in later years, to wit and viz.;
1954 and 1955.
Right now earn-

Mevibers

adeouate

1950_53

the makings of fuearning power; and accelerated depreciation on new plant

H. Hentz & Co,

this

(

shareholders.

its

with

Youngstown.

ture
1856

Henry

bonds

is

well spent on

Established

has

csTe^n

Strong Financial Condition

efficiency and labor

But

saving.
been

in
Rut

the

3%%

rail high-

build

you

So don t write off steel

have perhaps
gains

to

of

ac-

an

■

est

similar
issue

Morgan Go.
Appoints Officers

at current
turned in

wltnout aciequate cause.

iust

steel

iu
oni
up111011 ingot tons, scraper with plastic I beams, or
Thats 20%un three years, of shiny shave with an aluminum blade.

«avincf

can

sc;vlLC;r7

Republic

without

Ktv From mid- here to stay;and pipeline be some
way, water
steel is
total
and it will

assets.

is¬

bonds,

,

1950 to the end of this year,

efficient

services

an<?wpr

cutting

highly

of

sue

J. P.

e r m

a-

££Zch^Sore^ompeUUve

and

another

g-t

n

non-bank

nnp

whenever, however, you skim
industry ouioklv like this
it
s
steel SDonsors through its ?u
" industry quickly like tnis,
s.p?nso*s mrougn 11s there 1S invariably one question
Gunnison division, have an intera(;kpf]
"whirh is the eheanest in
estine
future
New
methods of ? ?
>'
,0„ tne
es"n& Iulur®- .iNew metnoas or todays market?" and you might
actually producing steel, such as
n weasel-fashion bv savcontinuous ineot castine and elec- ans^r 11 ™easel Iasmon Dy say
continuous in^°l casting and eiec ing they all have been neglected,
trie furnaces for carbon steel, are
n

o

government

earnings this year and been

gener0us

for the jet age;
steel homes, which

ting ready to rust in idleness or
unpromabihty.
■

new

anri

,

just good times, but it is not get-

capacity will have increased from

IpvpK*

goo^stedsT^
steels like these

the

alloys

new

trust

Stppl

certainly not

are

good

fevtls '
of

Industry

steel
steel

it used to be; and the

as

industry
industry

Cyclical

specific
specmc,

mid-century

ranks

research

Dozens

.

,

Ri^

tonsider' Jbtee.1

u

tain investment
f
1ulve5imem

°' P°S"

Steel

*

the

or

bit at a loss to see how cer-

is a

enterprises, doesn't sit idly by and

^

No

4, the
Treasury will

"We

indi„

selling at inflated levels, and one

"ue'

tention by

the

rnncidpr

(nflntpri

^iiinp.

true

.

s

investor

mjaht

I I, 71,g

certain usages,

in

provide capsule proof of our con-

displaying the defenses

"

•

1

hnvpr

plas-

copper,

moderate

a

shares

^mpeuuon 1S geiung LO° and Bethlehem

I
u
tough.
tics
v.

offered

are

drastic

no

just

—

actual

the

-.7

that the competition is getting too

,

and

continue

5 vidual

retain,

to

ail

ic

fpccnr

Some

Qf

steels

*

a

leveling off—seems indicated.

higher than that, anyway.

be

we

Frankly,

probably

will

is

sales slippage

hp

tnis

at

It

1954,

heavy

should

the prospect of 80%

would

this

at

nntn

wnniH

ctppic

steels

tneory

next

for

construction, military
demands and railway car buying

in

apples

selling

on

moderately
and the current
lowering factor.
be

may

strike

But

So

average.

need

lower
can

slightly

at

the

on

steel

with

profit

some

the street

And if we're in the
a cycle, then the first
industry to show it would be steel;

On the demand side, motor car

1932 rate was just
For the years 1935-37

The

The ponderous

prediction of Senor
merely offered as a sort

disappear,

or

that

1 9 5

the

for

in most cases as there have been
cash extras in Republic, Youngstown, etc., this year, which have
not been included in setting down operations of the year have had made:
v
indicated dividend rate, the idea no inflationary effect. They have
Alfred H. von Klemperer, As¬
being more to project probable thus directly contributed along sistant
Vice-President; Alfred R.
distribution for 1954 than to recite with budget control to meeting
Turner, Clement D. Gile, Donald
the extra bounties of the recent the President's fourth point of R.
Atkin,
Assistant
Treasurers;
past.
checking inflation.

Well, just how bad is that?

39%

Treasury,

in

1

The table understates the yield

for the first half of

million)

1954.

sacred

this

now

glide and many

hinting

would

gallon

Right

quarts!

like
4%

be
contains

it

else

operation would
merely mean shutting down the
0ider and less efficient plants, and

mula

the

offer

flulck; °n a price-earnings ratio
gey re certainly not dear. Yet
fhey .have been singularly neg£<*"1 uby the investment trusts,
Bethlehem is the only steel in
he, ^ ot ®°. sto+cks most popu|arly^ found in trust portfolios,
the yields here are marvelous,
fj] dividend coverage excellent,
Kindly examine the table.

1953 was at
That is 105% of the
of

thing

Secretary of
indicated

Operating Capacity

quarter

good
and a
good thing for the people to have
these bonds widely distributed in
the
hands
of many
millions of
people. In this program we need
your help, particularly in the pay¬
roll savings plan."

Ran¬

dolph Burgess,
Deputy to the

money.
Shares Not Overpriced!

or

new

updated.

"We shall continue to stress the
sale of savings bonds. It is a

E>ec.

on

year.

stronger and more experienced
Treasury team.

a

the

of

at Wilmington,

Well, where does all this leave
A word should be
said about the innocent investors right now?
operating
percentages which Steels have been bedeviled as a
have
no
doubt
appeared a bit suc^er for cycles, but their curconfusing to you.
For instance, rf.n
a"d indicated earnings are

headed

we're

capacity

Prospective

that

diction

total

substantially

with a
startling pre¬
shire)

Meeting

,

operating shape, with at least 65%

New

likely to be repeated next

address be¬

an

Delaware State Chamber of Com¬

Compare these items with today s
s^re quotations and you11 P^bably conclude either that steeis
a/"e statistically quite cheap or
that the managements had a hole
"J their head to reinvest so rouch.
^ayk® y0d ^
* ey
have bought oil stocks with the

heat. In addition, much impire economist,
provement has been made in ore
author
of
"The
Conditions
of and coke handling. Another thing,
Economic Progress," came out last a better quality of ore is now
Britist EmColin Clark,

distinguished

Annual

this year's

says

cash without increasing bankholdings of U. S.

new

securities is

merce

The

Thursday, December 17, 1953

Burgess Hints at More Non-Bank Long-Terms

splendid

COBLEIGH

Author of "Winning in

a
a

...

(2372)

12

7.9%

8.1%

6.52%

7.68%

$68.01

$86.22

$69.88

$44.91

$91.56

$47.49

$3.54

$5.87

$4.72

$3.28

$4.46

$3.20

7.0%

Art Burian———
Will Krisam^

231
223

-

"

.

'

Mike Growney
Roy Klein
-

f *
.

Joe Donadio

'

Hoy Meyer

" t

Volume 178

Number 5282

..

.

The Commercial and Financial Chronicle

(2373)

Status of Television in

the Social Security Administrator

Europe

extended trip

an

-The Allen B. Du Mont Labora¬

tories, Inc. has released
prepared

by

Director

of

Ernest
its

Division,

on

vision

report

a

A.

European

tele¬

Lille

lowing his
trip through
the

Euro¬

nent.

from

report

the

Mr.; Marx

in

Germany
coun¬

Ernest

A.

the

air

in

the

following

Berlin, Frankfurt, Dusseldorf, Hannover, Hamburg, Weinbiet

(Heidelberg), Munich.

will

be

connected

lengths

which

by

These

microwave

already

extend
Hamburg to Frankfurt.

"Eventually
planned

in

22

stations

Germany and
Germany will

that

are

it

is

go

to

ultra-high

frequency when this
occurs.
Presently, the television
receivers are being made by about
35

and

Germany and
which

system

625 line system but
sound.
As a result of

same

AM

Belgium

receive

Marx

cities:

likely

the

made with

try is forging
ahead rapidly in television. Very
shortly there will be seven sta¬

from

Holland

with

on

Belgian-

this confusion, television receivers

West

tions

manufacturers.

In

all

in

Brussels

Justice
at

from
is

but

low

very

started

now

the

Palais

limited

very

(300

power

some

and

Dusseldorf

programs

others

by microwave

were

were

from

re¬

Han¬

One day there was an at¬
tendance of 60,000 people at this
show.
nover.

"The

ing

(Jermans

are presently us¬
diodes in their

germanium

television receivers in
of

screen

nected

originate

by

is

and

microwave

and 21".
In addition, they
manufacturing
transmitting
and studio equipment and are well

in the

of

the

of

rest

world

the

development of transistors.

"The largest radio manufacturer
in

Europe is located just outside

of

Neuremberg in South
These
people
are

Ger¬

many.

manufacturing
with

television

American

manufacturers

They

now

receiv¬

have concluded contracts

and

ers

Cathode-ray tube
the

at

exporting
countries in Europe.

most

"There

is

Germany

considerable

at

the

talk

length

television going commercial in the
future, and it looks very likely.

able

the
entire
television
picture in Belgium is too complex
to
analyze thoroughly or make

France

handicapped

by

fact

that

The

In addition to the trans¬

system.
mitter
is

on

the Eiffel Tower, there
in Lille, Lyons and

station

a

the

broadcasts
will

from

from

that

Belgium.
The
population of Belgium

from

casts

Germany.
Holland

sum

studio

single

a

located

Hilversum,

near

the Eiffel Tower station in the

future.

in

Bor-

outside

of

which

television

Bordeaux, Marseille, Nice and
Eventually there will
probably be many other cities in
the

planning of stations has
only the

for the time

"In
show

being.

September,
was

siderable

There

previous cities

in

television

a

Paris and

interest

are

French

held

shown.

was

approximately 15

television

con¬

receiver

or

20

manu¬

facturers and three large Cathoderay
tube
manufacturers.
This
number

increase consider¬
ably in the near future.
may

'

"Programs
on

film

similar

are

both

live

£^nd represent somewhat
types

of

U.

S.

program¬

ming in its early stages.
the

and

television receiver

Most of

models in




Dean

Manion's, a first-class
being manufactured—ap¬

a lifesaver for him in his
bid for re-election next
year. The
Senator is not in the best of favor

was

of its most laugh¬

one

had

of

one

the

news¬

quest for the Presidency last year
he forgot all about the mores and

prejudices
went

of

his

State

own

and

I

impersonating

understand

can

the

let them take
This was just a
rollicking skit but it so happens

to

do

ments

"movement"

a

of Tennessee

and "interests,"
mostly the latter, has been or¬
ganized with a well-heeled lobby
here in Washington "to save the
citizens

TV A."

Receiving some of its literary
importunities to join in with the
rest of the right-thinking citizens
this

save

with

great

the

the

on

and

increase

of

part

Ways

that

become effective Jan. 1.
increase

wants

and

of

to

pay¬

both

employee

ministration

em¬

is

to

The Ad¬

forego the

Messrs.

Reed

and

Curtis don't, surprisingly enough.
But
rightly or wrongly, Social

is1

deeply

nomic

of

more

imbedded

structure.

in

the

eco¬

would

It

take

revolution

a

than

ac¬

companied Roosevelt to get it out.
-About that "fear of depression"
which Stevenson speaks—who

of

does

He

he

think

should

And

is

look

while

spreading that?
to

the

his

stuff

followers.

about

TVA

and Social

Security might be good
clean political fun, the organized
campaign for a depression is dan¬
and

gerous

disservice

a

to

the

country.

prisers who have been able to get
sponsors to finance a campaign on

that

House

and Means Committee about what

Senator's

miration

Valley

Representa¬

the

"liberals."

working

Estes

and

of

whole-hog with the Eastern

Senator
Kefauver of Tennessee, and

papermen

the

goes

basis

realize

this fear but

up

this fear.

of

that

enter¬

When

Congress
the

over

EVENTS
In

Investment

Field

you

a

pe¬

riod of 14 years could not get

gether

COMING

ad¬

my

those

to

to¬

Dec. 18, 1953

(Los Angeles, Calif.)

Security Traders Association of
Muscle Shoals, around which TVA Los Angeles Christmas Party at
originally turned, you can imagine the Hotel Statler (Buffalo & New
just what success this Administra¬ York Rooms).
on

disposition

of

tion would
over

it

to

were

have in turning TVA
Jan. 14, 1954 (New York City)
private enterprise even if
so disposed.
Advertising in Action Confer¬

But there is another fear which

boon to hu¬
is

Enterprise, I looked up the or¬
ganization to find out what it was
all about.
To my amazement I

the organized labor leaders aren't

able

strides

has made consider¬
in

this country and
presently operating
in Milan, Turin and Monte
Penice,

stations

between Rome and Milan.

own

an

Even¬

was

assured

being seriously

that

it

threatened by

being

worked

Stevenson

getting

is

and

up

ignores.

It

any response

ence

at the Waldorf-Astoria Hotel.

which Jan. 22, 1954
that

seems

any more

to

New

(New York City)

York

Security

Dealers

Association 28th annual dinner at
the Biltmore Hotel.

to

turn

try.
ment

it

over

to

private indus¬

As evidence of this a state¬
by

President

that the TVA

was

an

Eisenhower
example of

New

bait their clientele.

They have

an

Eisenhower Administration's plan

are

have its

I

But

Italy

an

exposure

come

up,

now,

with

that the Republicans

York

annual

dinner

June 9-12, 1954

(Canada)

of Canada

services

Jasper Park Lodge.

Arthur

J.

Altmeyer,

Annual

Convention at

The Vatican will

station

as

well.

"These stations have been

con¬

nected

by microwave lengths and
eventually will be hooked up to
the
European network through
now

appears as a matter

of

Germany. There
approximately 30 tele¬

receiver

and

a

American

manufacturers

substantial
receivers

receivers

are

still in

December 15, 1953

in

have

also

Italian Cus¬

"In September there was a tele¬
show held in Milan which
attracted
people from all over

ported

Although

to be shown

siderable

chassis

,500,000

at

this

Storer

Broadcasting Company

Cumulative Convertible Preferred Stock
($100 Par Value)

complete im¬

were

number

were

cabinets
names.

no

receivers

of record only.

number

vision

Italy.

•

placed privately by the undersigned and this announcement

Switzerland and
are

'

►

This Stock has been

permitted

show,'a
of

exhibited

under Italian

con¬

American
in

Italian

trademark

•

"The

prices of receivers in Italy
and
in
Europe
generally - are
higher than in the United States.
A 17" set costs about $425 to $450.

"Some Cathode-rayi tubes are
being manufactured inu Italy but

Continued

on

page

HQ*

Reynolds & Co.

the

Investment Dealers' Association

the purpose they have enlisted the
of

at

Waldorf-Astoria.

plan to scuttle Social Security. For

additional

toms.

France

have

Curtis

The studio uses all found a
group of primly starched,
their screams about the slave la¬
equipment,
including apparently well paid men at desks bor
Jan. 29, 1954 (Baltimore, Md.)
quality of the Taft-Hartley
two
Iconoscope
cameras.
The with telephones and
secretaries
Baltimore Security Traders As¬
Act.
I don't mean to say they
transmitter is located near Utrecht,
readying themselves to alert the
sociation Annual Mid-Winter Din¬
operates at 5KW, and covers a country and to descend upon Con¬ have dropped their campaign to
ner at the Lord Baltimore Hotel.
primary area of about 45 miles gress when it reconvenes to save abolish or
greatly modify it. But
in radius.
They are on the air something of which it will come
May 7, 1954 (New York City)
they have been searching for ad¬
only two or three days a week as a startling surprise to most of
Security Traders Association of
ditional raw meat with which to
for a few hours each day.
us, is in the slightest danger.

France which will have television.

in

will

are

involved

he

hand and Chair¬

one

Reed

is one of those things
: like
TVA, that is here to stay. It

Amsterdam.

Toulouse.

But

skits

tive

Dan

things, the. Security

here to stay.

was

on the payroll of the movement—
and Senator Kefauver is
hoping it

been

cities

have

is

difference of

a

borrowed

imported into the country.
However,
customs
duties
and
other taxes on imported receivers
are
very
high, and, as a result
of this, a
good many imported

"Other

it

manity from the grasp of Private

"Presently Holland has
television

vision

eventually

ington and

and

Italy,

on

Flemish

from

listen to the German broad¬

Strasbourg.

near

will

broadcasts

the

and

the

on

Belgium.

Belgium

Dutch

Holland

German

night

Waltz, "Don't

system

to

from

now

It is expected that
equipment will be installed

and

that
their

TV A away."

Flemish

listen

same

my

obvious

the French broadcasts from France

it

differs from the rest of European
television in that it uses a 819 line

engendered

see

is

occa--

that

plain

will be

the

it

in

station in Rome.

the

Bargeron

the
famous
Gridiron
holding forth in Wash¬

was

the

on

man

parently quite profitable for those
Carlisle

Belgium will listen to

"Today
French

it

singing to the tune of the Tennes¬

predictions about its future.

tually there will be
"French television is somewhat

and

of

the

On

several

on

made

the

in his native State because in his

speaking,

confused,

"Television

time of

present

to

has

we

fear

fear

should check up on the fears

con¬

private enterprise.;

However, from Eisenhower's ut¬
"creeping socialism"

com¬

being

he would

terance about

freedom itself.

Club

to
in

one

the

e ar

Manion

didn't want any more TVA's
but,
in the very nature of

had

Mr. Stevenson

time.

same

presently

are

f

it over to

sions

ourselves

and

the transmitter. With the language
situation in Belgium also rather

sizes

are

of

his way

Administration

depression,

fear

had

Dean

way," and

few

to

by

ion is not in the
government and
will not have his

country—fear
of

tion

was cited, to¬
statement during a

a

debate

that if he

to be

seems

opinion between the Administra¬

Well, unfortunately, Dean Man-;
ployer

brought "four
fears"

radio

turn

source.

building, where present radio

broadcasts

17"

abreast

Min¬

day,

a

licans

INR

modified

ceived

delphia

are

and the French broadcasts

originated

Dockstader

Phila¬

at

The studio exists in the so-called

held

at

de

and

watts).

position

which

said

of

four systems.

"Broadcasting has

of this year a
from

Lew

Allen any

presently being'
munism,
four-point switch to'

are

a

September
huge television ex¬

was

the

modulation,

CCIR-Belgian

uses

follows:

"This

since

wit

from, strels, also the
equal of Fred

received
•

barnstorming

gether with

one

the Republicans are try¬
broaden the coverage of

to

Social Security to embrace about
10
million
additional
persons.

Stevenson, the darling of "creeping socialism"

the intellectuals and to my
mind,
the
greatest -

days ago that
the CCIR-<
the* Repub¬
European system which is received
positive

v

The

;

of

is

France,
the
system
which

develops
from the French system by using
negative modulation instead of

conti¬

pean

in

French

nine countries
on

which

system

fol¬

progress,

Adlai

They consist of the normal French

tronics

e c

the News

funny thing about this

that

ing

By CARLISLE BARGERON

Belgium
"This country unfortunately has
four separate television systems.

The
is

There

14" and 17" with very

are

few 21".

Marx,

International

and

1

e

France

Washington

Ahead

that continent.

on

whom the Republicans fired.

From

Ernest A. Marx, Director of International Division, Allen B.
Du Mont Laboratories, Inc., describes progress of television in

Europe following

13

Oscar E.

Dooly & Co.

i

14

The Commercial and Financial Chronicle

(2374)

bly the air conditioning issues chill any enthusiasm else¬
like Carrier Corp. and York where.
if
if
if
Corp., and some of the other
stocks far more popular in
More tangible proof of the
the hot weather, like Canada do-nothing nature of the mar¬
By WALLACE STREETE
Dry. The "seasonal" shares ket is the fact that the daily
normally popular at this time, total of issues that end un¬
For all but the holders of a cancer
possibilities in tobacco, such as department stores and changed has exceeded 300
handful of issues, it was an¬ failed to cause
(out of some 1,100 issues that
any sympathet¬ toy makers, were either in¬
other
disappointing week for ic ripples elsewhere. The to¬ active or weak including R. H. trade) for 10 of the last dozen
the stock market. The techni¬ baccos, in fact, showed some Macy which posted a new low sessions. This, while not an
' ;
excessive increase over what
i
cians, searching vainly for a signs of trying to stabilize in in midweek.
.

Thursday, December 17, 1953

$100 Million Bonds of
World Bank lo Reach

THE MARKET... AND YOU

'

....

Market in January
Eugene R. Black, President In¬
Bank for Reconstruc¬

ternational
tion

and

Development, issued the

following statement concerning
p r ospective
•
bond issue
the

a

1

by

Bank:

.

vigorous

year-end

start about
to add up

the

roughly dead center
range for the year.
❖

An

%

a

of

formance

unusually large number off,
leaders

was

throughout the sell- Gamble, the latter showing
the best acting in the evidence that the traders are
*

bit

move a

wider, it

of up one

case

a

from

a

if

of

matter

technical

the

market

Fall

has

fact,

even

standpoint

throughout

the
by a
fairly evident lack of followbeen

afflicted

through whenever
mally considered
were

important

made. Even the

lows

ber

moves nor¬

most

were

a

as

Septem¬

achieved

one-day

al¬

wonder

face of all the

tainties

day and down

:|s

As

Automotive issues did little
in the

was a

the next with little net result.

*

*

and the

uncer¬

facing the industry
impending unveiling

over

a

the

over

new

highs

consistently, and this
at a time of year when the
list for
It was strongest of the market's sea¬
sonal
upswings
should
be
surprise in the

something of

a

case

of P & G since the stock

has

been

hadn't

of

one

rather wider

range than most of the
in the group, probably

issue

in

participated

equals this level.

if

Otherwise, the technical in¬
dications
week.
the

were

neutral for the
still

The market is

in

regarded

of 277-285
as normal

until it makes up

its mind to

trading
is

that

range

action.

It

is

some

decisive

notch

higher than dead center

the

295

was

The

show¬

if

if

Neutral Technical Indications

for

sjs

others

underway.

that

those

the
of their new models failed to
runup
in the averages last
spark any hopeful buying. year. In fact, its price in 1951
Steels likewise did little de¬ of 80, which was the peak
spite a fairly general opinion, since the 2M>-for-l split in the
at least among brokers, that
previous year, has been in no
they are logical candidates for serious jeopardy ever since
good action in any year-end and there is still the best part
upturn. Bethlehem Steel of 10 points to go before the
traveled

their lead
rather

starting to cull the
split possibilities.

group.

virtually nothing and for
large group of others that

did

pro¬

shade weaker than the

did
a

rather

a

at

%

of traditional market

"normal,"

as

is

Other of the diverse issues tracted string. Another of the
pack,
ploughing into new low popular included Gillette, Na¬ statistical indications that all
its ground, while Philip Morris, tional Dairy, Union Carbide, is not well is the fact that new
which put on a superior per¬ Swift & Co. and Procter & lows have managed to hold

held

list

taken

be

can

nevertheless

Splits

for

Looking

Tobacco continued to be

can

the unfavorable fac¬

while

tors

to this week's dealings. Ameri¬

rally

instead had

now,

year

to

generate

some

aimless nevertheless.

item

on

*

larly

the

of

top

recovery

For

the

*

oils

*

it

the list. But if the switch

was

also

a

to

achieved

was

ward each

day with

in

the

case

of little action either way

ular

to

Freeport Sulphur, the stock

wasn't

a meager

rally at the end of trading,
except that the late rallying

*

join

Cities Service

the
was

new

*

since the high

and the low 255

pastime

For the rails it

tinuation

of

day old
story
pretty well canceled out

was

con¬

a

a

Development
expects to off

e

or

on

r

about

Jan

1954,

12,

$100,-

a

issue

000,000

United

of

dollar

States
bonds

through
Eugene R. Black

nation-wide

a

underwriting
.
syndicate managed by The First
Boston Corporation and Morgan
Stanley & Co. The maturity of
the

issue

new

is

expected

be

to

approximately 15 years. The ex¬
act maturity, and the price and
interest rate for the issue, will be
determined in the

light of market
prevailing at the time
the offering."

conditions
of

Urge Removal of
Reg. "T" Restriction
On "Counter" Issues
New York
sociation

against

popular

bit

with the brokers has been to
root out dozens of issues that

At

a

Security Dealers As¬

discrimination

protests

over
as

-

the

-

counter secu¬

loan collateral.

General

Meeting

of

the

membership of the New York Se¬
curity Dealers Association held in
New York City on Dec. 8,

still

are

the

selling

level

same

and

for

the

around

they reached when

September lows

these,

*

lows.

somewhat

Recon¬

rities

was

overly aware of it.
generally. Monterey Oil ran Freeport did put on a show of
middle of a
trading session
superior
stability
recently,
out of its recent strength, at
and didn't even hold
but that doesn't necessarily
by the
least momentarily, and Deep
end of that day. Since then
show any earmarks of any
the list has fluttered down¬ Rock was sufficiently unpop¬ great accumulation.
285.20

for

struction and

the investment end of
one

widespread liquidation. Simi¬

Inter¬

a

ap¬
switching out of Texas
when
breaching the signal ing the signs of year-end Gulf Sulphur continued, proximately. Here again it is
levels had generally been ex¬ evening up, but it was pretty
keeping the issue a casualty only a surface picture because

pected

"The

national Bank

a

good

even,

the

were

set

portion

of

September

lows weren't too far from the

Regula¬

tion

Reserve

T

of

Federal

the

Board was discussed.

The opinion

expressed, it is announced by
Secretary Edward J.
Enright, that the restriction in the
regulation
affecting
Over-thewas

Executive

Counter
A

is

issues,

resolution

was

obsolete.
unanimously

now

adopted for the appointment of a
special committee to study the ap¬

—

erratic but weakness

what

is

now

an

one

lows

recorded

in

earlier

the

plication of the regulation in its
almost complete decline of last June.
They are relation to the prohibition against
was
tendency disappeared this
inability to work up any en¬
added proof that after the the extension of credit by brokerby a rebound the next. High- thusiasm among investors.
week.
dealers on all securities, except
initial retreat from the highs
<!
*
*
priced and normally wide- Pennsylvania, on prospects of
exempt issues, not traded on ex¬
at the start of the year, what changes.
No Sympathetic
Following
moving Amerada decided to falling profits in the tail end
The suggestion was made that a
of the year, was prominent in has followed since in
of Tobaccos
many
cut its daily gyrations down
category
of
certain
Over-thenew
low ground. Erie also
One of the few
investment
issues
in
spots has been no better than Counter
cheering to fractional moves.
sold off to its poorest price
which there is a well established
*
*
if
a standoff.
aspects of the market was that
market, be set up and recommen¬
since 1950 to prove that mar¬
the near-panic over the tobac¬
[The views expressed in this dation made to the Federal Re¬
Among the few issues able ket
averages aren't the whole article do not necessarily at any serve Board that they be made
co
shares, as a result of the to make substantial progress
time coincide with those of the available
as
collateral
for
loan
story. It is surprising in Erie's
latest controversy over the were some odder
Chronicle. They are presented as nurposes similar to listed securi¬
ones, notacase

since it

sold

price

poorer

'

Pennsylvania

NEW

down

to

those of the author only.]

ties.

either

than

Central

or

a

al¬

ISSUE

though its dividend record is
far

300,000 SHARES

jj;

THE TRI-DENT CORPORATION
Common
Par

Value

10

cents

per

Still

share

—

Dealers
a

The

are

the

Non-assessable

Share

rails

invited to participate with

is

financing: of this issue has been

that

he obtained from

the

UNDERWRITER

they

Street, New York 4, N. Y.




put a

DISTRIBUTORS

CORPORATE

ami DEALERS

AND

on

BOwiing Green 9-673T

to

chew

rally. With only

Securities Dealers, Inc.

build

during
a

a

up

SECURITIES

help

up

the

in

the

year-end

EMANUEL, DEETJEN & CO.
NEW YORK STOCK EXCHANGE

Members

MIDWEST STOCK EXCHANGE

•

•

AMERICAN STOCK EXCHANGE
COMMODITY EXCHANGE, INC.

couple of

weeks left to 1953f continued
reluctance among

MUNICIPAL

the hopes

resistance

area

t

strength. Time

could

industrials

280-85

i

25 Broad

to

enthusiasm

overhead

CHARLES J. MAGGIO, Inc.
Association of

following for

all the attempts of

running out

enough

Members, National

Following

continued

on

their range on

arranged through the undersigned.

may

a

the industrials to break out of

concession of 200 per share

Offering Circular

Rail

No

damper
Price $1.00 per

•!{

The lack of

Stock

undcrwritcrs,

superior.

the carriers

could, if only psychologically,

120

Broadway

•

Telephone DIgby 9-0777

New York 5, N. Y.
Teletype NY 1-1973

Volume 178

Number 5282

.The Commercial and Financial Chronicle

..

Board of Trade.

The Control of British firms

can

ideal

an

His

task

will

be

kinds

against

Dr. Einzig,
noting recent efforts of certain financiers

each

to acquire
important British firms, says, on a small scale move
resembles struggles between
Jay Gould, Vanderbilt, and others
in U. S. in late 19th
Century. Points out old type of business¬
man
and financier is
dying out in Britain and a new

In few instances

solution

ferent

By PAUL EINZIG

the solution which

found,

balance

to

of

be

the least bad.

dif-

find

to be

appears

sive

Yet it is urgent to

disadvantages

of too

and

out

into wrong hands.

other

to

adopt

companies should fall

many

months

the efforts of certain fi¬
nanciers to acquire
controlling in¬
terests in various
important firms

itures

Inequities in Income Tax

.

capital and labor
compelled the proprietors to pay

payer more

State- Certified

ants, St.' George, S. I.,
Peter
Guy

much

in

In

shares

the

firms

of
are

widely

very

held

among

the

general

investing pub¬
lic, so that a

comparatively
small percent¬

of the to¬

age

tal share

tal

is

capi¬
suffi¬

cient to

secure

relatively

a

considerable

The

old

businessman

Evans,

a

dving out in Brit¬
alarmingly rapid scale.

York

ain

of

and

despots"

Former

control

of
as

taxation

industry

relinquish

result of prohibitive
their
incomes
and

a

on

In

cern.

ceeded

steps

to

su¬

con¬

instances they

suc¬

taking

the
the

prevent

control.

at¬

their

considerable

some

in

these

against

necessary

transfer

of

In

doing so they were
guided solely by a natural de¬

not

sire

retain" control.

to

large extent they
in

the

interests

To

very

acting also

were

of

a

the

rank

and

file of shareholders.

For, in some
rate, those trying

instances at any
to

control

secure

prompted

by

motives.

object

praiseworthy
obviously their

Quite

to make

was

not

were

very

quick capital

a

the

without

much

long-range

regard

interests

for

of

the

firms and without any regard for
the interests of the employees.
The methods

employed by both

sides in these struggles for control
recall
the
romantic ; period
of
American

Century.

capitalism

On

scale' the

Gould

struggles

and

the

19th

between

Jay

Vanderbilt, with their

and

moves

in

infinitely smaller

an

counter-moves,

legal

to

do

since.

few

the

of

fortunes could

ever

family

prewar

be maintained

in¬

tact.
A

type of capitalists

new

The

war.

fortunes

examination.

arose

majority

of

The wealth of

some

of them originated from war prof¬
it successfully concealed from the

operations

in

has

the

and

which is not

handicapped by con¬
of public interest or

siderations
social

conscience.

They

just

are

the make by fair means or by

foul.

They

control of well-

secure

established business combines not
order

to

make

expand them for the

quick

a

regard

profit, without
long-term conse¬

for

quences.

Their

cilitated

by the artificially low
the
shares
of
many

prices

of

activities

are

fa¬

firms, due to the voluntary limi¬
tation

of

dividends.

Under

gov¬

ernment pressure most

companies
have been ploughing back into the
firm

large

proportion of their
instead
of
distributing

a

profits

tice

has

financiers have

the

ruthless

of

the

discount. The

a

the

of

means

pro¬

of

the

quotations

government to take the

consider

the

interests

nec¬

them

induce

to

steps

essary

of

to

buying
their

up

intrinsic

Most

the

to

fied

little

when

brought
the

or

no

bear

to

pressure

was

business by
even by pub¬

on

government or

lic opinion, most business leaders
in

Britain

paid

much

considerations

social

regard

and

to

consid¬

value.

In

at

free

will

under

In

tradition.
control
been

in

of

the

most

business

the

so

of

hands

not under

their

own

influence

instances
concerns

of

family for generations.

the

of

the
had

same

Long be¬

fore the change in the balance of




one

loss

a

adopt

Guy

there

is

confidence

in

"The

individual

white

collar

worker,

taxpayer
laborer

—

Mr.

Evans

taxpayers

capital

tax,

said.

who is in business for him-

like

the

salesman,

lawyer,

accountant,

serviceman,

usually

pays

riod,

to

legally

owes.

he

stated,

He

asserted,

legitimate

expenses

are

contends

personal

or

that

.

,

and

deeply

part-

are

entrenched

permitted to deduct

ination of

widows

in

deductions
and

baby

for

be

allowed

dependency

sitting

while

they

Tuition

and

educational

defense

this

or

panies

the

a

Evans
the

basic

upside,

says

transactions

without

difficulty imposed
of

shares

is

pects

Mr.
on

and

term
Evans

Carl

duplication
42

M.

Wall

Street,

members

tax

rate

pros-

declared

were

maintaining

an

expen¬

Loeb,

of

Exchange

financial markets with

"shot

govern¬

hurt

to

can

of

partnership

panies

beneficial

concerned.

finding

the

possible.

The

borderline

constructive
for control

the

to

and
is

There

can

be

stance.

no

to

slight burden
the

its

im¬

general

It will

on

be

circum¬

will

place no
the shoulders of

Minister,
President
of

responsible

Thorneycroft,

specific

task

years

We would be

happy

to

tell

you more

about it.

AF-GL

be suitable for

application.

This

offer eighty

bids

if not

for the government to
each instance individually

according

you

expensive ammunition.

of

necessary

judge

lot of

between

destructive

difficult

a

experience in creating advertising patterned

acter.

com¬

task

your

pattern" must be regulated, too. Or

waste

Mr.

the

Albert Frank-Guenther Law, Inc.
Advertising
PHILADELPHIA

•

BOSTON

131 Cedar Street, New York 6, N. Y.

•
•

WASHINGTON

•

CHICAGO

•

to

New

on

for the market regardless of its size and char¬

all

Moreover, in many
change
of
ownership

be

wou'd

on

Admit
&

York
York

Co.,
City,

Stock

leading Ex¬

changes, will admit Stanley Grant
to

advertising dollars,

To interested prospects, we

shareholders.
instances

now

Rhoades

other

do

the transfer

on

public

more

the New

and

Shot patterns—When you're shooting at

paralyzing
Any

bound

of

com¬

Col. King.

Loeb, Rhoades

lot toward the elim-

waste

long

based

im¬

to

stocks

activity is

two in¬

what

the

receiving

are

and

spending.

strongly intrenched leading

some¬

felt

Exchange.

change in the inves¬

psychology,

favor and

government and even possible

His

are

ex-

tor's

too-

further tax cuts,

care

earning incomes, he contended.

continued

public

our

Stock

economic and political philosophy
would help

operations, working mothers and
also

Y.

inflation and government

more

With

Mr.

change in

a

N.

spending, low interest rates

bill"

are

in

However,

opined that

in connection with their

should

the

here to stay, as they

ai;e

nerships

of

Mr. Evans felt that high taxes

are

expenses

footing

Ci ty

There is, he adds, increasing talk

by allowing the deduction,

thinking.

corporations

is

cut

a

New

Yo.rk

Col. Herbert G. King

or programs which are
speculative merely because "the

government

and

the

business
tax,
according to Col. Herbert G. King,

warned by Mr.

squander money on
M

divi-

on

hope for
in

projects

tailed records.
Since

were

the

taxa¬

dends

member

de-

no

be cut down legitimately

Taxpayers

very

they

of

because

tion

tax

the resultant

often disallowed because the government

counsel,

in

double

By

savings can be
used for further expansion,

good part of his

a

can

and

time."

same

tax

proper

bills

than* he
He can't be both-

keeping books for Uncle Sam
for detailed traveling, entertaining,
and supplies expenses and
produce income and earnings at
the

operations.

the
pe¬

reduc-

a

tion

of tax problems and tax
business

getting

tax

more

in

and

short¬
of

holding

all

closely.

presence

individual tax-

"The

a

gains

a

ening

tax

counselled

tax,

change in the

advan¬

onerous

end

excess

profits

study the tax laws
Such a study will
taxpayers to recognize the

most

the

the

of

the

the

of

pointed out the respective

rates,

or

the income

tax,

Because

and

growing realization of
the increasing possibility of a cut
a

considera¬

legal, tax and business,
tages and pitfalls.

Evans

also legitimate transactions.

automatic

but

Peter

extremely difficult to
rules
against undesirable

eral.

They had done

give

is

rules which would

pressure

showing signs of

investor

"

government

erations of public interest in gen¬

any

renewed

an

them, however, the
It

businessman sin¬

to

individual

institute

was

gularly devoid of social conscience.
Before
the Second World
War,

en¬

inquiries to
ascertain the identity of persistent
buyers of shares. Having identi¬
ment

of financier and

In Stock Outlook
The market is

thing ought to be done about the

next.

conception in British opin¬
ion there arose, however, a type

be

,

Investor Confidence

new

people realize that

their

Together with the development

acted

the

tax

\.

Cites Increased

type
opportunity of
these shares well below

employees, the consumers and the
nation in general.
of this

he predicted.

based

are

the

result

pelled

to

stay,

their inadequate divi¬
a

lic interests and that if they have
the

services, benefits, assist¬
etc., high tax rates are here

Stock

on

stances

is up

Their

As

take-over bids.

conscience" it

intrinsic

dends.

duction and distribution must have

"social

indi¬

not

the

shares.

regard for considerations of pub¬
no

do

largely

prevailing conception is that those
of

shareholders.

increased

Second

survival

equitable

be

payer

mar¬

traditions

no

Exchange

control

people to the public

In

ered

to

early

must

Evans

which

on

dividends

changes

income

self

radically different from the atti¬
tude of American opinion in the
19th
Century.
Since
the

in

many

questions in business transactions

through

or

value

fittest has been at

additional

activities, and have

discussing the various forms
of
doing
business — individual,
partnership or corporation — Mr.

cornering goods
to take advantage
of^their scar¬
city. The majority of new post¬
war capitalists
belongs to The type

kets

the middle of the 20th Century is

War

personal

of

Evans

sheets

the

to

for

fortune out

Others have
a

balance

of

ance,

for

help

Most

World

made

amounts

professional man—is the forgotten man in our tax laws," Mr.

cate the extent to which this prac¬

principle

be

certain

black

taxation authorities.

managed to pile up
of

given

by taxpayer proper tax recognition
close and equitable tax treatment.

ain in 1953.

late

should

of

life insurance premium payments
by taxpayers, he stated.
Double

largely

their

opinion in

to

should

Very

so

among

The difference is that

Excess

that

continue

them

attitude of British

the

of

to

actions, etc., were revived in Brit¬

the

governments

many

tion.

benefit of all concerned but solely

object

Provision

deduction

D. C. declared

in

that

Act¬

ing Chairman

taxation

of

ttfx.

pursue

ney

Council,
Washington,

result

a

gai|i which in Britain is free of
They meant to

Dec. 16,

crushing burden of death duties.
Many of them began to live on
capital during the War and had

as

which would not bear

with

local
on

and

With 37 million people
receiving government checks for

student

Profits Tax

more

means

premacy

and

payrolls.

should also be allowed

the

even

made

come,

on

and

an

them

directed

throughout
Federal, State,

The

taken

added

taxpayer or to the
supporting
his
son
or
daughter .going through college.
Students should be permitted to
earn more than
$600 without the
parent losing the right to claim
the exemption for the child as
a dependent.

Ac¬

countant

on

became subject of such "take-over
has

the

Account-

New

One after another the "benevolent

the

practice
known—viewed

Public

Attor¬

type

and financier is

since

the

ex¬

tent.

effective control.
The boards of
directors of the companies .which

be

1960.

parent

to

to

the

tacks

sub¬

expect

military expend¬

wages,
penses

most instances

to

county
services

equitable tax treatment.

Speaking
to
the
Richmond
County Chapter of the New York

discussion

bids"—as

in

after

nation.

have

Guy Evans, New York Attorney and former Acting
Chairman of Excess Profits Tax Council, tells accountants
income tax changes should be enacted to
give individual tax¬

due regard to legitimate interests
of employees and
consumers, they
had done so of their own free will

London.

L.iiis.11;

the

.Peter

•

ject

I'aui

cannot

we

cuts

until

if

Even

Mr. Evans pointed

tating the high taxes

Cites

:

has been sub¬

Dr.

that

stantial

machine.

war,

conclusion,
Mr.
Evans
pointed out the factors necessi¬

between

power

no

In

type,
devoid of old high
principles, are coming in with their "take¬
over
bids. Sees problem of control of
business firms difficult.
recent

military

there is

solution before the control

a

control of

LONDON, Eng.—During

15

(2375)

SAN FRANCISCO

Jan. 1.

16

At

Connecticnt Brevities
the

'

.

rate

dividend

$3.00

that

time

of

Britain

New

declared

Company

dividend

jn

consideration

1954

at

In report on

Corpora-

Steel

Follansbee

The

points out

lowering of tax rates in

a

Corporate

single story ware¬
house structure of 50,000 square
used for

normal

permitted to drop
to the 47% rate as provided under
present law, Dr. Marcus Nadler,
consulting

it

if

it

Acquisition of Shetucket Worsted
in Baltic, has been

Reoffered

Mills, located

-be operated as a

A

subsidiary under

Walarne

of

Mills,

Inc.,

Public

to

;

by The

underwriting

Nadler

d 1

a

e r

a s-

the

of

one

said,

he

notable role in the postand were an important factor in providing corporations with
the
necessary
wherewithal to meet the very high
volume of new capital expendiwar

N

Savings Bank; The First National

saving s,"

"These
"played

Bank, on "The
Importance of
Savings," Dr.
serted ,that

24-m ember

including

dividends—Dr.

and

taxes

Hanover

;

,

.

o

Hanover

lished

Prices to Yield

at

From 1.10% to 2.75%

completed by Matson Mill, Inc., of
South Glastonbury. The mill will

t

Bank, said in said the total for 1946-1952, ina
report pub- elusive, reached $76:4 billion. :

Group Submits Top Bids for ;
$80,555,000 Housing Authority Bonds j-i

*

ment of all expenditures

The

Bankers Trust

feet, to be built at a cost of about

porate revenue retained after pay-

economist

a new

$750,000.

than in the immediate
past."
>
Discussing corporate savingswhich he described as total cor-

future

surtax

and

rates should be

Gait, Ontario, and will gram has been largely completed,
operations early next Earnings for this year are estimated at about $8.00 a share,
~ "
~~
"
T.

at

space

buyers' market woutd

a

lead to lower prices.

Fairfield, commence
has purchased an eight-acre tract year.
in Wallingford.
The site will be

the

"The Importance of Savings," published by The
City, N. Y. University economist

Hanover Bank of New York

be

would

through

tion, presently located in

Corporate Tax Rate

$2.00,

*
given to payment of a stock divirights,
229,898
Manning, Maxwell & Moore has dend to capitalize part of the reshares were taken up and the bal- organized
a
wholly-owned sub- tained earnings of lecent years,
ance offered by underwriters.
sidiary to operate under the same The company's modernization, ex*
*
*
name
in Canada.
It will occupy pansion
and diversification prooffered

Brass

holders

Nadler Favors Lower

an

bringing
total payments for the year to
$5.35, it was indicated that early
extra

.

of

the

Machine

of Bridgeport after the increase.
21 y2
to stock*
*

stock

common

shares tion

240.672

of

total

the

Of
of

.Thursday, December 17, 1953

The Commercial and Financial Chronicle..

(2376)

a

economy

tures."

:

headed
by
the
Bankers Bank of Chicago; J. P. Morgan &
problems con¬
Company of New York City Co. Incorporated; C. J. Devine &
fronting cor¬
was the successful bidder for $80,Co.; Kidder, Peabody & Co.; Saloporations is
Marcus Nadler
iV. S. Rubber Company is pur¬ 555,000 out of a total of $121,- mon Bros. & Hutzler; Kuhn, Loeb
the
ultimate
local
housing authority & Co.; The Northern Trust Co.
chasing a tract of land in Nauga- 225,000
decision
on
The
tuck from The New York, New bonds offered at competitive sale
Philadelphia National corporate normal and surtax rates.
Haven and Hartford Railroad. A on December 15.
It is fully
Bank; Blair, Rollins & Co. Incorrecognized, he said,
name

and will

produce

group

pew

warehouse will be built at a

cost

of

about

$4,000,000 to con¬
solidate all the warehousing activ¬
ities

the

of

company's

footwear

plant.
it

Winning 18 out of the 29 issues
offered, the group's tenders named
interest

2%%

of

rates

for

1954 to

it

it

,

Trust

yarns.

bonds

new

Ives

plant is under construc¬

Tifaven

New

B.

manufacturers

Company,

for The II.

of

builders' hardware. The

ities will be used to produce com¬

ponent

company's

the

for

parts
it

-

from

yield

the

it

*

Bement

This
1IUS

Hie
the

Wets
was

Company

bonds

under

it

Stockholders

Light

Company

rights

purchase

to

5;28%
at

Bridgeport Gas
have
received

share

one

of

convertible preferred stock

$25

for

each

common

stock

Nov.

The

27.

three

shares

owned

of

of

record

preferred will
be convertible share for share into
common.

new

Rights

Stockholders of

Company and
Inc.,

have

Fafnir

of Hart

approved

Cooley,

merger

a

of

Fafnir

been

holding

a

The

name.

latter

as

well

the

as

Company.
new

issuer.

the

the

are

whose

entire

ley stockholders of

for

Allied

will

thus

conduct

a

heating
and
air - conditioning
equipment business. Fafnir share¬
holders will receive
ber

of

shares

an

the

of

equal
nfew

the

ft

bonds

obligations of the issuing
the

the

of

payment

by the annual contributions by
-

Pubjic Housing Administration.

after
the

bonds
their

are

if

104%

redemption

a

redeemed

15 years

..

price
later

not

from their date and

thereafter at decreasing
*

10 years

date, at the option of

issuer, at

of

callable

t

premiums.

.

,

Fire

Insurance

Feb. 25,
holders will vote

sues

which

for

high bidder

1 HI

of

the

syndicate

a

of

the

,

.

m

$9,345,000 Memphis, Tenn., 2V2S,

plan to declare

a

25%

....

Directors
stock divi¬

n

New York: Walter J' Gruber of
'
~
*"
Union Securities Corp., New York;
Paul B- Hanrahan of Hanrahan &
Co.,

Worcester,

ErPf o£ Carl

Mass.;

Armand

Loeb- Rhoades &

Co" New Y°ork; and Don F' Daly
o£ WeSe"®r
a y' ®°*se'
°Stockholders

The

organized

further

Committee

the

last

spring
of

merger

with

to

period of

to

to

or

explained.
rates

tax

in

36th

a
—

strong buyers' market

a

lead

prices

of

decline

a

in

the

Water

f

A

A

.

,

,

.u

.

re,

.

bank

and

con¬

sumption expenditures. The highlevel

the

er

the

the

national

the

greater

and

higher

the

is

will

Congress
of

sources

business

Turning

activity

the

to

American

have

taxes

12

general."

in

by the

and

excess

profits tax should be in

better

position

to

the

Washington

$6,170,000 Norfolk, Va., 2V2s, at

Stockholders

2V2s, at continuing

101.134.

about

$5,235,000 Galveston, Tex., 2%s,
101.438.

a

insist
,

.

Committee

its

its

upon
.

Associated in the syndicate with

Company

are:

(

_,

The Chase National Bank of the

rnately

efforts

satisfactory
__

stockholders.

Bankers Trust

which

a

and

still

is

to

of

bring

merger and

submission

u

x.

were

not

one

subject to

of the

net

may

strengthen

to

for

to

working

capital

approxi-

utives, and

Puget Sound

"It

is

retained

committee

to

ment of

dividends may

& Trust

on

their behalf.

what

industry, with

of

service

and

examination

Dept.

A735127,

copy

items.
write

Standard &

Corporation, 345 Hudson

en¬

likely, however, that the

portion

these objec-

breakdown of 203

Street, New York 14, N. Y.

already authorized the

City of New York; Chemical Bank tives

commodity

and

etc.,

80,000 exec¬

products index of over 2,500

Poor's

modernization and

plant

a

to

largement.

stock have

pursue

used

officers

agents,

purchasing

classifications

retain sub¬
be

leading

all

and

titles

companies,
of

expect

out only

For

amounts

to

cor¬

directors, technical person¬

agers,

earnings in the form

dividends and will

stantial

Directo„

Contains

—

includes histories of

.

Holders ot

25%

of their

(paper).

nel, traffic managers, sales man¬

relatively moderate percentage

The

Service Commission.

Association,

Street, New York

Register o(

duties

a

Public

Bankers

Executives

known

with

compete

a

of

Avenue,

(paper).

porate listings of nationally

elimination of the

the

approval

Research,

Westnedge

36th

poor>s

"Corporations favorably af¬

that corporations will pay

100.749.

Upjohn In¬

said:

Nadler

fected

East

16, N. Y.

profits

tax, due to disappear at year end,
Dr.

E.

Kalamazoo, Mich,

the

also

excess

An¬

An

only Personal Money Management—

not

but

certain

impact which
on

consider

revenues

South

709

that the

hoped

be

to

W.

Thole—The

"In formulating a new tax pro¬

it

n,

^

Bibliography—Henry C.

stitute for Community

government would be.

gram

Additional

million).

.

notated

of

immediate future

without

(with total assets of less
$71/2

„

income

revenues

lowing

terminate

member

Management Controls

business activity

of

submission to stockholders despite

to

without

ABA

copies at $1.00 each.

demand

consumer

$6,475,000 Atlanta, Ga., 2y2s, at

it

copy

each

late

this tax. As in the past, so in the

21/2S, at 101.294.

East

12

One

—

to

than

those

City,

Paper

charge

in

improvement

an

Association,

Street, New York 16, N. Y.

the quality of many commodities.
This in turn would tend to stimu¬

Puget

Washington

the directors of Puget Sound

It is indicated that consider¬

continua-

Nadler

Dr.

lowering

would

70

11.

in the Smaller Bank—American
Bankers

,

will

to

...

...

"

ation

given

in-

new

terests have joined the committee,
T^e new members are: Albert H.
Gordon of Kidder, Peabody & Co.,
New York, Richard F. Beck of
Hogle & Co., Salt Lake City,
Leon Goldrluss of Abraham & Co.,

dend.

be

Chairman

Marks,

Inc

York"

New

Avenue

(ci0th) $8 65 Part I.

y

How to Set Up an Audit Program

business

on

under the merger agreemen'. al"

Kansas

proposal to

the

"A

prentice-Hall

__

Fifth

capital

on

fused to extend the closing date

$7,220,000

at

son

^

savings

and

bearing

Mo.,

100 807

at

Com¬

increase the authorized capitaliza¬
tion from $16,000,000 to $20,000,-

approved

M.

profits

direct

a

activity,"

Sound Power & Light

ann°unced that several

Sound

1l(r

Busing^ policy—Charles L. Jami-

whole.

a

7

j

purchasing

dollar."

investments and hence

Newark, N. J., 2%s, power Company. On Nov. 12, 1953

'

the

as

de¬

a

But, he added, "it must be borne

have

is¬

was

in

of the

must

it leads to

r

I

Puget Sound Pr.

Laurence

are:

74

A

terioration

try as

for

was

Fafnir

1954, the stock¬
on

r-»

Stockholders Comm.

.

,

Among the larger individual

$5,310,000 Troy, N. Y.,

meeting

on

If

the

the U. S. Government through the

ft

annual

Hartford

000.

local

territores of

100.029.
it

pany

or

financing

run

"Corporate

exempt

from

exempt

long

power

num¬

Bearing.
At

is

-

for five

one

a

i
1

Memphis

In¬

principal and interest is provided

stock

will be distributed to Hart & Coo¬

basis.

bonds

Although

authorities,

Allied Thermal

company,

Corporation,

mid-1951.

in the states

The two wholly owned

subsidiaries will be transferred to
a

in

en-

lire stock of Tuttle & Barley, Inc.
and Hart & Cooley Manufacturing

x-

Company Stockholders Committee

generally

owning

company

stock in Fafnir

has

*r

j.

is

taxes

the two companies with the re¬
than
sulting company operating under

the

n-

0f the Puget

The

Bearing

&

housing
Housing

the

Carl M." Loeb Rhoades °and oneffect on business activity
& Co verse the
economy of the counFirst National Bank oi
,
—J

from all Federal income taxes and

Dec. 22.

expire

Ui
of

finance J slum clear¬
and low-cost public housing

ance

in

as

that
continuing
high
& Co.; City National Bank & Trust in mind
Co.; Commerce Trust Company; corporate tax rates have an ad-

to

it

of

2.75%

ScUt:
sale

S.

deficit

posible be avoided because

amended, since the

recently purchased the East got underway
Greenwich, Rhode Island, plant of terest on the
Textron, Inc. Production of tricot
being completed and the pres¬
ent textile machinery will be sold
by Textron.

U.

the

has

is

ClgllUl
eighth

"that
far

prices Morton & Co., Incorporated; Bache

at

to

government-guaranteed

program

Pond

public
1.10%

according to maturity.

Act of 1937, as

products.
Niles

to

to

facil¬

new

2%%, 2 V2% and pany; Seattle-First National
maturing from Bank; Barr Brothers & Co.; B. J.
are being
Van Ingen & Co., Inc.; W. H.

1984. The bonds

reoffered
A

tion in

porated; First National Bank of
Portland; American Trust Corn-

smaller

in

after

the

Public Housing in New York City

the -pay-

be

some-

immediate

—New York Chamber of Com¬
merce,

65 Liberty Street, New

York 5. N. Y.

(paper).

Company; Harris Trust &

CONNECTICUT
SECURITIES
0'M

1#

CHAS. W. SCRANTON
Nlemben New York Stock

&

New Haven

stGyRirtEs




Chronicles For Sale

CO.

Exchange

BRAINARD, JUDD & CO.

HARTFORD, CONN.
New York

—

SET

ALL BOUND AND IN

Hartford 7-2669

1911 TO

DATE

EXCELLENT CONDITION

AVAILABLE AT "N. Y. C."

REctor 2-9377

Teletype NH 194

FROM

75 Pearl Street

HARTFORD PHONE

NEW YORK PHONE

7-5291

HAnover 2-7922

'

For Price and Fall Details Contact Edwin L. Beck,
-

BELL

TELETYPE

HP

197

25-Park Plaee.New York

(7)

REctor 2-9579

Volume 178

Number 5282

.

The Commercial and Financial Chronicle

..

\

(2377)

Securities Salesman's Corner

News About Banks

By JOHN DUTTON
The

CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS, ETC.

following letters have been
with

used

Bankers

and

REVISED

can

ing for
ter

C.

Brunie,

President

Empire Trust Co., New York,
nounced
of John

an¬

Dec. 15 the promotion

on

P. Stickeler to Vice-Pres¬

ident

from

dent;

William

to

of

Assistant

Assistant

H.

McElnea,

Vice-President

to

from

Assistant

Sec¬

retaries.
Mr.
to

Stickeler

the

will

Banking

be

attached

Department

charge of the company's
spondent bank relations.
$

*

of

in

corre¬

DeCoursey Fales, President of

will provide
panoramic view

a

The

appointment of 22 officers

Chemical

at

Bank

Trust

&

Com¬

on

Vice-Presidents

Assistant

New

Frank N. Hibbard and William P.

■Schweickert, Jr.,
retaries
Jan.

of

the

1, 1954.

Assistant Sec¬

as

bank,

effective

Their activities

are

sis

:j:

*

Mr.

Secretary; Mr.
of investment
Assistant

Cox,

C.

R.

Railway System, and

Smith, President of Ameri¬
Airlines,

can

elected

Inc.,

members

directors

of

of

the

Dec.

on

10

by

the

of

National

announced

was

John

of the

been

board

Chase

Bank, New York it
Chairman

have

sistant

J.

McCloy,
Board.

*

Meuche,

The

and

Assistant

as

14

Frank

L.

B.

Mochwart

Vice-Presidents

Manufacturers
New York

of

Carl

Trust

announced

was

of

Company,
on

Dec.

by Horace C. Flanigan, Presi¬

dent.

from

In¬

turers

Trust in

vanced

to

an

1929

1945

ad¬

was

came

Secretary

to the bank

Head

of

and

officer

the

Commercial Loan Department. He
advanced
to
an
Assistant

officer

trust

vestment trust

per¬

investment

to

officer, and

Ginglen,

ment

dling

for

Both

Mr.

Mochwart

The

McKevitt

and

Office, 55 Broad Street, New York.
A

model

building, will be on
display beginning early in Febru¬
at the office of Manufacturers

ary,

Trust

Company,

5th

Avenue

43rd Street. The model is

a

and

repre¬

sentation, made to exact scale, of
the bank's newest Midtown
under

now

The

the

display shows not only
and

architec¬

new

structure,

arrangements

tural

office,

directly

the street at 510 Fifth Ave¬

across
nue.

construction

design of the

but als'o the Otis Escalator system
that will carry passengers between
the

lower

banking floors.
When ready for occupancy in
1954, this will be one of the most

modern

Central
most

structures

in

the

Grand

District and certainly the

interesting,

because

it

will

G.

J.

#

Hanover

Riddell,

Assistant

Owen R.

Banking

financing

Jenkins

G.

Moore,

do

Murphy,

Jr.,

Stanley

S.

Assistant

G.

Blake

and

*

The

*

New York

York

specialist

Trust

as

in the

E. Chester

has

National

announced

has

of
that

from
and

advanced

administrative connection with

banking institution, financing
organization or industrial con¬
cern, preferably in Philadelphia
Broad

experience in all
phases of installment sales and
area.

commercial

financing,

new

business

development, adver¬
tising and public relations,
personnel management, insur¬
ance,

credits

and

collections.

BOX No. Z 1217.




*

New

York

Trust

has

the

same

it

meeting
Bank

that

on

&

reported

as

Dec.

Continued

10 of the

Sterling Na¬

Trust

Company,
on

Com¬

is

you

will be

Mr.

is

also

member

a

of

board

of

directors

of

Allied

of how

measure

Abram

J.

Feuer

New

Hempshire Gas Co., Colonial Utili¬
ties Corp., and

missed.

Lucky Tiger Com¬
Co.

bination-Gold Mining
You may

You may

splash all
you

stir

you

please

enter,

up

With Merrill Lynch

the water galore,

(Special

But

stop; and you will find in

That

it

looks

quite

the

same

before.

to

Financial

The

Chronicle)

a

PORTLAND, Ore.—Christopher
S. Strahan is with Merrill Lynch,

minute
as

Pierce, Fenner
Building.

& Beane,

Wilcox

\

FLASH ANNOUNCEMENT!
1954 Register
of Directors

dust

Coming Off The Press

the
• Gives

21,000 corporate listings of

titles and duties of all leading officers
and

two

or

directors, technical personnel,
managers,

advertising

sales

managers,

purchasing
agents. Also number of employees

foundation

managers,

and nature of product manufactured.

high,

are

we

•

consideration it

Includes

of 80,000

Any

men.

complete

case

histories

top-flight executives

throughout the country with their
home addresses, educational

ground,

de¬

year

back¬

place of birth,

and

information

sign

• Also includes a breakdown of 203

below

classifications of industry... a prod¬

name

your

the

self-addressed

ucts index of over

en¬

and

&

All information is

•

truly,

like

would

ments. The first and

CO.

2,500 commodity

service items.

kept up-to-date through quarterly cumulative supple¬
only National Directory of Executive Personnel. Begun

1928—- revised yearly ever since. Includes a reference privilege in the
largest Financial Library in the world. This 1954 edition includes over
245,000 type changes.

name.

details"

more

For FREE INSPECTION USE COUPON

Address

—

Telephone

will

the foregoing

|

STANDARD & POOR'S CORPORATION, 345 Hudson Street, New York 14, N.Y.

produce business if you fol¬

|

Gentlemen:

mailings

leads

the

salesman

letter.

Wait

as

conscientiously.

page

least

the

builders

names
or

letters to

in

more

ter

of

have

you
10

letter

can

of

too,

you

Only send

have

settled

expensive homes in bet¬

neighborhoods.

list

at

home

new

purchasers.

those who

be

sent

professional

| Directors and Executives.
Please send me an examination copy of the important new 1954 Register of

97 averages."

work

The

J
J

a

Firm

Address.

Zone

City.

general

men.

the

State—

.A735-127

I

Signature-

j

second

The
to

NAME

Here

STANDARD & POOR'S CORPORATION
345 Hudson

must

I
I

follow each

should

until

was

1953.

Board of Directors of
tional

hole

remaining
a

Name

The

reserves,

September 30,
a

"I

24th

while undivided profits remain at

At

the

Salesman's

the

announced today by Joseph Pulvermacher, President. The bank's
surplus now stands at $6,250,000,

on

the

thousand

one

BLANK

low

from

of

Michigan

interlocking connections.

use

Such
&

di-

the
and

out

common

Yours very

in¬

$1,377,387,

it

velope enclosed.

surplus account by
through the transfer of

sum

Pull

make will be given

you

F.

on

and

your

wrist,

special interest in work¬

a

I.

its

$750,000
this

and

s's

Sterling National Bank
of

in

aims

your

please

Assistant

Broadway
*

creased

to

up

serves.

office.

Company

hand in it

your

to

Waite have

are

a

rector

in

Benjamin

Cashiers. These officers
the

few

a

laid

Assistant

from

elected

nationally known companies. Shows

selected

has

to

Assistant Vice-

to

Presidents

g, Feuer
Co., was

er

&

pany.

by having "capital

as

the careful

and

advanced

Stock

and Executives

during

sums

ing with professional

York,

Theodore

been

Vice-President

of

wish

you

If you would like

Bank

k

truly,

if

invested

inquiry

14,

C. Bier-

New

r

Sugar

bucket and fill it with

y

Company

Salamon

little

If

Gersten, President of

Public

Yo

Feuer

Put

on

J. Feuer, part¬
ner of the New

Professional Men

years

stocks

Vice-President

♦j!

hole,

simple instruction,

for future security.

A.

Dec.

a

stockholders

Michigan,

Dec. 8, Abram

b

unfillable

of

Saginaw,

Exchange firm
of S p i egel-

feel that

Thinking About

carefully

Banking Division.

The

the

in

traffic

Company,

on

wirth

Street

a

As

take

announced

to

sizable

dollars

in

Walter

an

you

gain programs."

Wil¬

were

letter

You

past 10

*

Assistant

the

lated

Weyant.,

the appointment of John

Trust

for

water,

Many doctors, lawyers, den¬
tists,
accountants
and
other
professional men have accumu¬

Cavanaugh.

New

it

in

qualified

Investing for Profit?

A.

Managers

the foreign department
liam

take

Feuer, Director

meeting

a

I remain,

references

Letter

A

and William A. Wells.
Named

held

so.

and

Edward

INDISPENSABLE

cor¬

of

ner

Treasurers

Stephen

NO

A. J.
At

how it humbles your soul.

see

Take

of

be

Bancroft, Frank M.

Llewellyn

were

staff

Top level executive, 49, in five
figure salary bracket, accus¬
tomed to handling $10,000,000
daily cash outstandings, seeks

pleasure

can

Creighton, and Edmund J. Hall.
Appointed Assistant Secretaries

been

I'umniercial

the

listed in the lower left hand

Are

Bank, New York,

And

and hop¬

SALESMAN'S NAME.

*

Gordon and Frank G.
ami

call

soon,

you

best

leave

when
or

IS

(Author unknown to me—J. D.)

ego's in

govern¬

write,

Yours very

As¬

Would

Mutual Is

and

me,

the

Sometime, when
your going

investments.

have

to

meeting

officers.

new

Vice-President

rredit

their

Torleaf
H.
W. Turner, W. J.

Officers;
A.
G.
Assistant Manager, Mu¬
Bond
Department,
and

Named

Mr.

and

assigned
to
the
Banking Department in the Main

municipal

in

can,

MAN.

room;

you

ing

today announced the appointment
of 10

you

over-the-

bonds,

kind personal regard

Reginald Luhr, Assistant Manager,
Government Bond Department.

were

are

interested

and will be pleased to
assist you in many ways. With

was

Secretary in June, 1948.

many

if you are around our way. We
will have the welcome mat out

in¬

Trust

nicipal

Sometime, when

include

clients

securities,

Telephone

Mitchell, Assistant

Fred

for

Wallace, Assistant Managers; H. J.
sistant

your

bonds, and above all else,

Treasurer;

Heinsohn

Sometime, when
.bloom,

invest¬

in conscientious service in han¬

Secretary; Kenneth F. Foster, As¬
Benestad,

the

here

are

stocks,

Funds,

trust

appointments

our

you

remember,

for

Sometime, when you're feeling
important,

Just follow this

in

our

who

counter

Assistant

from

the best

it.

been

and

listed

Managers to Assistant Secretaries.

sistant

have

people

Stanley Davison and

officer

new

a

stranger in

a

business

officer; Irving White, from

officer

in

years

in¬

to

trust
officer;
Clinton
A.
Wells, from assistant trust officer
trust

happiness

We

to

sonal

to trust

wish you

we

are

bought

just the best

proud of yourself, but

SOMETIME

You're

community, or a long-time resi¬
dent, our door is open to you.

officer; E. W. Tom-

*

Division

as

and

Assistant

in October, 1943.
Mr. Mochwart
in

to Manufac¬

came

Mar,

linson, from trust officer to

Haskell,

Mr. McKevitt

per¬

are

ment

trust

*

appointment

a

Be

Your Britches!

this
or

Big

:

have

you

If you

Stalker, As¬

and

from

clude: David L.

McKevitt

of

review;

Mr.

or

home and

Other promotions are: Arthur J.

New
*

is

worthwhile.
or

of
up

THERE

You Ever Feel Too

often

city,

notice

Secretaries.

Richard

Bank's

It

whether

is

all

The moral in this
quaint example,
Is do

the salesman.
If

your

people move to
old residents,
who purchase a new home. We

Brown,

Manager,

Division;

Messrs, Platten

baugh,

Harry A. DeButts, President of
the Southern

Quite

our

pension trust officer; R. W. Sinsa-

devoted to the Real Estate Dept.

call.

qualifies

prospect

not

who

Dear Mr. & Mrs.

Cox, Jr., Frederic E.
Mar, D. C. Platten and William B.
Stalker. Mr. Boyles formerly was
Manager

to

prospects,

qualified. The rest is

are

follow

can

so, an appointment
sonal visit follows:

W.

George

whom

few days with

a

If

Aubrey Boyles, R. P. Brown,

are:

Manager, Credit Department,

appointed

new

phone

which
the

people
homes in

salesman

friendly

not

interested

you

prospect¬
The first let¬

to

low up is all important. Any form
of advertising can only seek out

granted

Chairman.

ternational

has

The

if

you

New York was announced
Dec. 10 by N. Baxter Jackson, Letter to Purchasers of New
Home

Board

Trustees

city.

we

pany,

The Bank for Savings in the
City
of New York, announces that the

of

sent

bought

call

#

£

be

and

your

clients.

new
to

to

in

this letter within
a

activity within the bank.

Assistant

*

sealed

entirely

that

public with
%

Jr.,

Secretary and the ap¬
pointment of Randolphe P. Swenson, William B. Snyder and George
Clements

exterior,

glass
the

almost

an

,

Vice-Presi¬

Assistant

Felix

have

is

have

along

them

use

results

good

them

pass

CAPITALIZATIONS

Henry

17

"law of

salesman's

fol-

Street, New York 14, N.Y.

18

(2373)

The Commercial and Financial Chronicle

}

k

*

>

K

'

'P''

i

'

fa

"

**■'

"Why don't
"More than 750

'

ppi iii miipi v/11pipi:

/l

companies

are now

Agent

or

using Chase

"That sounds good, Ed. I think I'll

Registrar."

"Z)o that, I'll bet you'll find, as we did,

*<

can you

think of business

services.

"Sorry, Ed. Can't get the office off my
the market last year

after 30

private ownership. Now it
half my

years

seems

of

I spend

a

"Believe me, Bill, Fve got the answer to

troubles to

Chase National

Bank

stock transfer job

for

never




had

a

a

has

an

expert.

handled

long time

worry."

to handle

our

a

couple of blocks of

both

the

Stock

now,

our

and

big scale. Most of

our

It pays to do business with Chase

"Surprisingly little! As
actually saved

money

a

Ed?"

matter of fact,

when

trying to do the job ourselves."
v

THE

transfers get

"How much does this cost,

.j

Transfer Department,

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.

nuisance

stock transfers could be."

that one—take your

"W/ty, Bill, it takes Chase far less time

on

time writing letters to stock¬

holders. "Never realized what

we've

Write for booklet

agent do the job?"

mind. You know, we put our stock on

business with Chase."

"Doesn't it take longer to have an

on a

trip like this?"

pip "*

look into it."

that it pays to do

Bill, how

^

talk to the people at Chase?"

you

their stock Transfer

as

.Thursday, December 17, 1953

" 7',T

,

ft A/i

..

we

stopped

Chase
NATIONAL
OF

THF.

[member

CITY

OF

BANK
NEW

YORK

federal deposit insurance

corp.)

Volume 178

Number 5282

.

.

.

The Commercial and Financial Chronicle

(2379)

19

Getting Federal Budget Under Control
This Administration is dedicated
to

the

accomplishment

of

By HON. GEORGE M. HUMPHREY*

two

That

'

of

They
have

we

are:

Only

military strength

but

also

to

help -promote
in

peace

world.

the Federal Government under control."

the

cit has been

s

•

And that

from $11

cut

we

maintain

present Federal Administra¬

indicate

a n

of
sufficient

out

cut

expenses

or

1955 fiscal

raise additional taxes.

and

year

d

ti

u c

v e

to

tinuously

the

Concludes "it is high time for

George M. Humphrey

posture.
are

aware

of the vital

need to provide all the
military
strength that is required for the
defense of our nation.
We
are
aware

without

a

deficits

the

of

of

con¬

Eisenhower,

the

weeks

and

out

that this Administra¬

tion would strive to
and

economic

would

by

of

our

tion's

more

The

message,
in

policies

economic

sources.

fiscal

which

secure

health

outlined
and

six

These objectives

the Annual

Bankers

by

Secy.

Association

-wood, Fla.,

of




manage

the

inheritance of debt

obligations;
menace

of

possible

fect
of

reduction

remove

of

the

inequalities,

tax

cover

reconstruct the tax

et

of

Investment

make

zens.

remove

wage,
and

the

these

objectives

in

has been in office.
But

before

re¬

otherwise

debt

have

to

than

pay

been

the

case.

The Debt Limit
This

can

is

financial

a

inheritance

which gives us great concern. The

expen-

present law requires the payment
of the great bulk of corporation

considering
this
let's look at some of the

growth

the strait-jack¬

price, and other
which

con¬

then

country hide-bound and

plans

to

en¬

The public debt is now practi¬
cally at the limit of $275 billion.
In addition to inheriting a debt of
enormous
size, we also inherited
a
debt that had been badly man¬

aged.

tasks
and

more

difficult

in

the

fiscal

economic fields.

were
(1) the huge public
debt, (2) the restrictive debt limit,

(3) the $81 billion in C. O. D.

or¬

ders, (4) extragavance in govern¬
ment, (5) the staggering tax bur¬

den, (6)
omy,

a

and

rigidly controlled
(7)

in
,

econ¬

top of it all,

on

war

an

of stalemate

A brief look at each inheritance

will

tions
start

develop

the

difficult

confronting
was

know, nearly threequarters of the debt we inherited
in
January matures within less
at

five

the

large

is redeemable

or

holder's option, with too
proportion in the hands of

a

banks

years

than

rather

distributed

made

to

us

condi¬

when

reach

the

our

ob¬

to

Both

of

these

conditions

affect

the supply of credit. They are in¬
flationary. They have contributed
to
cheapening the value of the

dollar.

the

price

of

govern¬

manner

refinancing and placing of
sues

by

have

is¬

been important

causes

sulted

the

new

of

to

in

past

the
the

Administration
contributing

inflation

which

heartless

theft

re¬

of

jectives set forth in the State of

hard-earned savings from millions
of
Americans as the
dollar de¬
clined

from

100

cents

Blyth S. Co., Inc.
*

Underwriters and
NATIONWIDE

first

this

enacted

ticular
the

calendar

last half

This

year.

of

a

law substan¬

tially increased government
ceipts in the first half of that
the

then

re¬

par¬
was

current

fiscal year, and

so this dispropor¬
tionately larger collection of taxes

a

used to substantially reduce
budget deficit in that year.

The practice then began of is¬
suing tax anticipation bills in the
fall when tax collections

Distrib
of Securities

to 52

cents

were

low

against expected receipts the fol¬
lowing spring when corporate tax
that

were

high.

government

porarily goes
comes

This

means

borrowing tem¬
in

up

the

fall

down in the spring,

and

and

so

automatically
forces
increased
borrowing over at least a sixmonth period.

Pegging

the Union Message.

the initiative of free citi¬

ago,

collections

long-term investors.

ment securities and the

Korea.

When

years

was

As you well

than

Among the more serious of the
legacies we inherited last Jan¬

year.

few

The Public Debt

inheritances to which this Admin¬

unending costly

directives

constructive

courage

Holly-

vigorous

economy;

Sixth, to

held
before

the

upon

our

of

uary

Fifih, to work toward the earli¬

trols

America,

Dec. 1, 1953.

plishment

the 10 months this Administration

istration fell heir, which made our

inflation;
est

very'substantial progress
has been made toward the accom¬

re¬

that

were:

Convention of the

huge costs

laws to lessen their restrictive ef¬

policies

Humphrey

earliest

Some

progress,

the

properly

our

burden,

in

Admin¬

the

Fourth, to check the

objectives

economic

to

omissions and

and

President,

the

planned

defense;

the

na¬

at

balance

meet

strength

which would be sought.

"■Remarks

and

develop fiscal

reinforce military

making

his

then

Second, to

Third,
in

previous

limits of safety;

burden of

Message two
assuming
office,

the

budget
by reducing Federal expenditures
to the very minimum within the

Union

after

pointed

the

of

time

that

economy

healthy

fact

tary strength is impossible.
State

reduce

possible

tinuous maintenance of this mili¬
President

to

istration

fully

equally

total

more

eventually

dar

First,

port that mili¬
We

dollar

taxes in *he first half of the calen¬

sup¬

tary

and

would

con¬

power

much

carry

the

paying so much more
bought that we now

we

have

present estimates

says

unless government

devalued
our

for what

defi¬

current

and

sulted in

ditures to be controlled."

1

>

pro

prospective

billion to $4 billion, but

deficit of $9 billion for

a

Points

economy

strength

tion

tion, reviews public debt, tax burdens and budget situations, and concludes,
despite difficulties and delays, "we are on our way toward getting the budget of

our

defense

own

ironically enough, this
policy which produced infla¬

same

Secretary Humphrey, after stating objectives of

not

'

for

purchasing power in the short
of only the last 14 years.

span

And

sufficient

power

in

Secretary of the Treasury

*

great goals.

ance

has

This fixed inherit¬

made

the

present

debt

limit too restrictive.
When
summer
we

we

to

pointed

would

handle

asked
raise

out

enable
its

that

the

fiscal

Congress

the

last

debt

the

limit,
change

government

affairs

orderly, businesslike

Continued

in

to

more

fashion, doon

page

SO

The Commercial and Financial Chronicle

Thursday, December 17, 1953

...

(2380)

20

$tj

i

rr

id.D#-

.

if

?

I

if

*

t' t <

I'H

Progress of IBA in 1953
My administration of the

than

of

all

In

with

d

w a r

reporting

done.

the turn away

our

seductive
doctrine of the

state

the

enlightenment of public

rvic

Poole, Roberts & Parke
Norman Smith
Merrill

e

There

Association.

Bankers
so

was

to

done

fulfillment

Knowlton, Kuhn, Loeb

of

responsi-

our

the

capital needed in this

& Co.

LtcL

Wood) Gundy & Co

growing economy.

FuIto

for you by the

the

in

might
in your
been

accomplished more
behalf. It nevertheless has

Securities-

Governmental

„Go™r™American^
Amencan

Gratt'

interesting and challeng-

an

Perrigo,

past year so

have

is

it

industry,

Harris, Upham

Jr.,

industry.

Co.

&

I

must

give

praise

Pre-emptive

Rights:

to

eral

Robt

Securities

becuntics

sociation

Murray Hanson, Gen-

teU

to

gnd

year.

It

.

be

should

made

very

.

Exchange

cause:

First

our

Malon C.

two

long^eeded
Federal

Se¬

have

that

conceded by

interests

is

also

and

the

Our present Commission
of

aware

will

you

investor

the

of

industry.

first

hearing,

these

and

needs

the pleasure of
hand,
from
Mr.

have

Ralph Demmler, Chairman of the
Securities and Exchange Commis¬

sion, at this convention. If the in¬
vestment banking industry is to
better serve the American public,
these

technical

largely

of

are

first

the

changes

of

order

impor¬

tance.

of taxation we have

In the field

f

clear

been, in

common

the industry,

tion

the

to

taxation

with the rest of

trying to draw atten¬
inequities

double

of
and

dividends

of

the

to

undesirable economic consequence
of the Capital

might

ing

it

tax

system

Gains Tax.

In pass¬

noted that our
such a wilderness

be

is

business is planned for this year were post- of taxes for revenue and taxes
generany the first order of the day poned until the program can be aimed at social reform and taxes,
they so ably advanced
ster
Dougherty,
A.
Webster and then fouows the fun without effected and it could be more such as the Capital Gains Tax,
Dougherty & Co.
any
dimjnuti0n of the old IBA clearly established what new per- based on Marxist theories that it
Vice-Presidents:
Nominating: Joseph T. Johnson, traditions of hospitality, good fel- sonnel and what capacities may be is a herculean task to break a way
Courts, Courts & Co.
The Milwaukee Company.
lowship and good cheer.
needed in the field of research through this jungle. We are de¬

and

with which

the

of

Acts—revisions

past Securities & Exchange Com¬
missions to be needed and in the

gutr0 & Go

our

much

making

for many years been

who really did

devotion

SEC Acts

we'are

toward the partial solu¬

curities

the job. May
Investment Companies: Robert is a vitally important level—we staff headquarters to the end of
I take a moment to mention these l. Osgood, Vance, Sanders & Co.
are making great progress. From more efficient and increased servthe
days
when group meetings ice
to our membership. Some
people to whom you and I are so
Membership: Robert L. Harter,
were nearly all social and little if
needed services which were
greatly indebted for the diligence,
bers

and

forward-looking

tion, at least, of the

them lor their fine contribution

yQU

the attention

all

of

progress

nfL?r f!,
°nS
own'
We a*e honored by the presence
}^re °* representatives of all of
t{jese organizations and we salute

There is little cause to be served
in reporting to you that the regular Board and Gr0UP meetings

industry are of
that they con¬

Revising

p"
'■
that every group was visited — to
Seneral welfare.
Group Chapmen s: Andrew M. this you expect of your President.
As recommended by my predthat this was a team job and that Baird> A. G. Becker & Go.
However, it is both stimulating ecessor, Past President Johnson,
we
were
especially fortunate in
Industrial Securities: Claude F. and significant to report to you we have made much progress
the high ability of the team mem- Turben, Merrill, Turben & Co.
that at the group level—and that toward centralization of staff and

ing

that the services

our

feel

We

inviestor, ■the industry and the

Special Secretary.

hdd

Stock

of

Firms, the National Association
of Investment Companies, The
American Stock Exchange and the
Regional Exchanges. On all corn™n problems they have shown
leadership and couiage and a will\° rPfhCf inHnctrv^^+hl

Counsel; Robert Stevenson,

3rd; Secretary & Treasurer; Dudley c Smith, Municipal Secretary;

been

Associa-

National

tion of Securities Dealers, the As-

' \

Barry, Shields & Co.

the

all

members of the Investment Bank¬

the officers of the New York Stock

P. Exchange,

Eugene

and

ing Industry.

past

.

Exchange Relations: J. F.

Stock

offices

our

will have the fi¬

attract

to

support

"!fing '®amall segments of our
f.wor^ dutring the
year by

laney, Mullaney, Wells & Co.

Burns,

tinue

acknowledge the in-

J'

.

opportunity were not
Finance:
Charles
R.
that we Hornblower & Weeks.

wisdom and
ours

made

have

we

oroeress

be chronicled

the

Legislation: Paul L. Mul-

Fuiton, Reid & Co.

State

Erwin w> Boehmler, Educational
Director; Gordon L. Calvert, Asreports of our national commitFederal Legislation: H. Warren sistant to General Counsel; Mary
tees. The advance is encouraging Wilson, Union Securities Co.
R. Lincoln, Assistant Secretary;
but much remains yet to be done—
Federal
Taxation:
James M. Elaine Holmes, Secretary to Genand we regret that more of time, Hutton, Jr., W. E. Hutton & Co.
eral Counsel; Mary Lou Coburn,
What

will

of

we

effectiveness

such

give credit to our
Pas* leaders for the fine relationshlPs they established and we

W.

Statistics:

&

The Staff:

MC MarlJ<fI/^ern ^ar^S'
Lauience M. Marks & go
Education: Norman Smith, Merril1 Lynch> pierce' Fenner &
Beane-

rapidly

within

the
the

high of nearly eight hundred.
render

we

for

expedite these programs

revisions

Scott,

Pearson

W.

Canadian;

bility—that of providing to free
enterprise and free government

Hugh

Securities:

Aviation

needed
clear the way for
much that

unity

L.

Chas.

Yost

Research

Lynch,

Banking

vestment

Securities:

Railroad

in

can be put into effect.
membership nears an

they
Our

Schmidt, Bergmann, R. W. Pressprich & Co. mandatory to

Schmidt,

A.

to the In¬
Industry—and Pierce, Fenner & Beane.
the
magnificent opportunity for
n0w our National Committee
leadership this offered to the In- Chairmen:

the

securities industry.

National

First

Miller,

Walter

would bring

this

vestment

to

nances

of Chicago.

Co.

&

Boles

T.

Ewing

opportunities
s e

So

facilities.

program,

be

namely

personnel
above,

We like to think

resultant

be

on

and

cited

reasons

Public Service Securities: War- to our industry and be of large
ren H. Crowell, Crowell, Weedon importance to the nation.
Ralph E. Phillips, Dean Witter & Co.
in the field of harmony and
Lewis

Bank

enterprise. We
had visions of

to

functions

re¬

may
year

one

any

of our

one

history and partially because

time

of free
competitive

that

of Administration's tax

for

amalgamation

needed

and, in addition, progress is being made toward

be
of

had

Our surplus

did not get to add some needed

we

as

ciples

o r

field of finance and membership, "we have had one

and urges more

three years.

to

have

we

years.

largest

our

prin¬

tested

f

Points out, in

finest years,

time-

the

though advances have been encouraging, much remains to

visions of the SEC Acts." Calls for support

welfare

the

changes in the affairs of the IBA and the investment industry,

the

from

to

on

Mr. Boles says

hopes to

high

bership
finest

us

two

every

In the field of finance and mem-1

Columbus, O.

President, The Ohio Company,

for-

looked

Association of America

Retiring President, Investment Bankers

period
of suspended
animation
following Ike's landslide victory
and

ties of the IBA not less frequently

By EWING T. BOLES*

affairs

office in the

of the IBA came into

*PresidentiaI

consummate

Address

Boles

Mr.

of

skill

...

0

Oil

at

&

Francis

.

A.

Securities:

Municipal

Gas

Natural

Weld

Co.

Hollywood, Fla. Nov. 30.

any

Securities:

White.

Ke™an.

,

Web-

&

business

There

were

a

the

said

group

and niember visitation.

the

of this must be
£

the

credit

continuing

able

Chairmen

group

of

to

TTT1

Committee,

reached

have

.,

we

undertook

this

at the suggestion of Wick-

Shreve, Vice-Chairman of the

Andy Baird
We

,

greater
detail
by
Norman
Smith, Chairman of the Education

the
me

at
at

no

plateau of
level in
level in

group
group

and

the

®Si°nn

'r ^
vlslitatl0nClties The four cities
°* a11 member firms in
certain

of

RAILROADS

•

of group meetings. There

by Erwin Boehmler and Baltimore

still

great strides to be made

and Pittsburgh by Gordon Calvert.

are

INDUSTRIAL CORPORATIONS
PUBLIC UTILITIES

activity

and

many

.

reach

INSURANCE COMPANIES

BANKS

FUNDS
arc

AUTHORITIES

MUNICIPALITIES

STATES

CANADIAN GOVERNMENT

PROVINCES

pace

which

zation
a

ex-

striving to
..

.

the

visited

were

Denver and St. Louis

™itation? Proved generally

to be very popular with the mem-

level

ot

we

keep

up

Board of Governors will want to

of progress

we

take steps to carry out this policy
U endorsed at the Greenbrier so
that

activity

However,

present

are

.

if

f?oine- to have a trade
golng t0 nave a trade

make

THE

the

leaders.
the

MUTUAL

groups

in

will

magnificent

orsanior§ani

increasingly

bers

visited.

every

a

We

are

sure

and

explanation

ward

an

enlightened tax program,

equitable
revenue

of

free

our

reward

for

to

of
the

all

needed

for

and

and not for the changing

for

competitive system of
achievement nor in¬

penalizing
benefit

any

class

one

An

another.

of

amazing lot of work needs to be
done

the
evils

by
of

and the
tion

our

industry to acquaint
public
with
the

American

of

the

Capital

Gains

Tax

inequities of double taxa¬
dividends.

You

can

There

are

many

Continued

other
on

things

page

MUNICIPALITIES

•

V

FOREIGN GOVERNMENTS

Our Facilities

INSTITUTIONS

•

are

Available

BANKS

INDIVIDUALS

Harriman

•

•

State, Municipal and Revenue

to

CORPORATIONS

DEALERS

Bonds

Ripley & Co.

Incorporated

63 Wall
BOSTON

•

Street, New York 5, N. Y.
PHILADELPHIA

Representatives in other Cities




CHICAGO

all

help and we know you will help.

of

contribution the educational and other activi-

give every support
Administration to¬

to the National

the

member will have such

visitation

should

We

deed

general
cellence

and Dealers in the Securities

effort to do just that.

every

in

leadership of their Chairman, year,

perfection
periection

Treasury and the House Ways and
Means Committee are making

While it will be reported to you

.

the

both

that

however,

lighted,

Visits to Member Firms

not hit

did

attendance

,,

to

our

Capital Issues

few

indeed

high. All

new
...

of

now

m^thigs we" attended""tilis "year
where

Underwriters and Distributors

—

Lehman Brothers

33

Volume 178

Number 5282

.

..

The Commercial and Financial Chronicle

(2381)

21

How Shall We Amend the SEC Acts?
One

.

day

a

to

see

stopped
•another
the

few

Federal

thought

months

the

ago,

Chairman

Commission

that

could

we

I

By RALPH H. DEMMLER*

of

Chairman, Securities and Exchange

in

with

profit
exchange some

SEC Chairman presents

ideas

the Securities and

how

live

to,

in

like

the SEC. Acts

it.

Among

his

effect

that

good

keep

track

and duplicative work,

sary

well

as

as an

to

in

some

so

powers.

of

mission is

to

Praises cooperation of securities industry, and hints

a

ment

is

stables

agency

to

make

speech

Ralph H. Demmler

a

about

work

your

once

in

It compels
you
to sit
reflectively and to come to

few

a

have

conclusions

done,

interfere

why

to

as

what you

did

you

it,

and

what

else you plan to do.
I am
grateful to you, therefore, for the

opportunity to present a general
of current events at the

prise.

and

Exchange

of

concepts is only

Philosophical

ties

laws

in

or

administering
much
of

ly

if

this

the

group,

of

honestly
and

the

address

42nd

by

that

the

of
the

should

that

tape,
should

ob-

Com. Demmler before
Convention of the In¬

Bankers Association,

Fla.

2,

1953.




a

change

the

enter¬

general
short first step.

anybody;
whether

in

govern¬

Commission's

Task

cates

self-evident

the

which

mission.

truism

magnitude

confronts

us

of
at

indi¬

the
the

task
Com¬

The

capital markets are
dynamic, and the Commission's at¬
titudes

therefore, never re¬
main static. It must keep review¬
ing its major premises as well as
can,

its administrative procedures.

The

change of national Administration
merely

emphasizes

this

responsi-

a

This proc¬

general policy

decision

by the Commission, then
a ferreting out of particular com¬
plexities or particular procedures
of

of the

public;
changes

related

requires first

ess

meaning only as they
are
reflected in specific detailed
laws, rules, forms and policies.
Magnitude

other

might be necessitated.

have

ment

the

by

desirable

some

:

doubtful

value, the drafting of

tentative proposal, circulation of
the proposal pursuant to the Ad¬
a

ministrative Procedure Act, tabu¬
lation and consideration of com¬

ments, modification in the light of
those comments, and finally, adop¬
tion.

Please don't think that I

trying to stir

up

ly pointing out that
to

do

with

some

very

the

am

sympathy for the

bureaucrat's hard life.

I

am

mere¬

work has

our

administration

technical

statutes

of

and

that it must be done with technical

precision.

A

willing heart is not

Hollywood,

In

re-examining policies it isn't

enough
such

a

some.

to

decide

that

such

and

procedure is too cumber¬
It

must also

be determined

what, if any, substitute is re¬
quired; whether the change could
be made by rule or whether
legis¬
lation
is
required; whether the

enough.

The

practices

Acts have been
whole
The

20

year

business

would

be

haphazard,

the

built

under the

up

period

over

since

community
last

to

impulsive

the

Some of

been

not

The

been

sharp and

some

of the leg¬

islation, but the

process of

capital

STATES

STATE

to

eliminate

and

imprac¬

unnecessary

com¬

and of the public interest
ently afforded by the Acts.

(2) The Commission's

pres¬

own

pro¬

cedures and policies should be ex¬

amined

so

sary and

as

to eliminate

unneces¬

duplicative work

formation goes on pretty efficient¬

as

ly

statutory
One

the

well

as

powers.

there

and

for

is

public

no

outcry

major changds.

The
has

administration
criticized

been

of

the

from

Acts

time

to

over-strained

of

things

which

time, sometimes for being too leni¬
ent, sometimes for being too harsh,

general

but

members

the

criticisms

concerned

few

areas

some

have

largely

personalities,

a

of over-ambitious statu¬

tory construction, occasional overzealousness, arid, in earlier days,,
a manifestation
of punitive spirit.
I think you will agree that much
of

this criticism

The

old

Hoover

Force

found

itself

"on

notably

well

the

has died

critics

the

down.

Commission's
that

whole

the
has

administered,"
of

"concede that its

the

Com¬
been

that

Commission

staff is able and

ing

conclusions.
of

try

who

the

found

is

that

I

mean

the

among

Commission

those in

represent

a

the forego¬

on

By

of

heartening

very

have

agreement

its staff and

your

in

you

and

indus¬
such

matters.
Last

ceived

June

the

Commission

re¬

inquiries from representa¬

tives of most segments of the se¬
curities business, as to the manner
of submitting proposals for

tive

action

Commission
make

its

legisla¬
by the Congress. The
indicated

service

it

available

would
to

the

Banking and Currency Committee

conscientious, and that the Com¬

Broadway
New York

MUNICIPAL BONDS

I

construction

general agreement

GOVERNMENT SECURITIES

AND

be

ors

Deale rs in

UNITED

the
ad¬

basically sound, but
changes in some

are

Acts

behind

plexities,
leaving
undisturbed,
however, the protection of invest¬

of New York
New York 15,

be

can

Commission

the

should

the

Guaranty Trust Company
140

that

principles

which

ticalities

amended

There has

all.

mission

of

in

bitter criticism of

at

Task

series

hastily conceived changes.

have

1933.

a

of

The statutory

insignificant particulars.

the

approve

adopted

were

period 1933 to 1940.

Acts

Conclusions

conclusions

(1)

scheme has been amended only in
the

in

simply these:

Acts

next session.

The Acts which the Commission
administers

keep

drawn from what I have just said

Administration of SEC Acts

adversely
affect
whether it would be

misunderstood

on

theories

would

be

there

red

unnecessary

vestment

Dec.

to

association,

agree

government

Annual

of

meeting

useless

no

put

staff

a

conducted,

interpose

*An

the

were

the

to

or

Undoubted¬

securities

be

that

not

determination

teachers

would

everyone

should

to

or

-

of

involves

question

parent

selling

them
a

securi¬

methods

attitudes.

Commission,
a

the

than

more

general

the

in

in

Com¬

mission.

changes

capital

private

Agreement

That

Making

of

unnecessarily

summary

Securities

raising

but in eval¬

.

outstanding example

an

its best."

there

the

management

while.-

a

down

or

to

.

should

unneces¬

ministers

govern¬

.

one

It

course

of the independent commission at

over-strained construction of statutory

changes in SEC plans will be presented to Congress early in the

the

of

are

mind the basic fact that the Com¬

administration
of

weaknesses

Two

to eliminate

as

"There

uating them,

are

where you are

going

basically sound. Says, however, there should be changes

are

said:

The

a

way

of current events and problems at

summary

procedures and policies should be examined

own

td the

was one

general

a

eliminate impracticalities and unnecessary complexities. Says Commission's

ggestions

s u

also

Exchange Commission, and contends the principles behind

a

bureaucracy
and

generally
conducts
its
dispatch and expedition

work with

where speed is most essential."

mutual

on

mission

Commission

Continued

on

page

77

22

The Commercial and Financial Chronicle

(2382)

Thursday, December 17, 1953

...

Competition Should Bring Greater Prosperity
I

am

America for two good reasons.

is

In

addr

to

cries fears of

invited

such

im-

America

a

approach to economic problems, has given

industry

in the automotive

to

long

as

people have

as

as

rep¬

many

taining and expanding economic progress,

resentative di-

of

rectors

harder selling

Stresses better management and

automobiles.

find anywhere

of

wFh

we

to

and

need

against sliding back into

warns

it.
on

That

dealer is

a

where

cars.

here

production.

convention.

E.

advice

Your

have

counsel

and

•nfluence

out

not only
thinking,

business

think¬

political

American

of

tremendous

a

the pattern

on

American

of

are

Breech

R.

What's more, it is
through the use of your services
that American
businesses, small
ing

well.

as

important
capital funds which have been
and are still so necessary for the
continued growth of our research,
production and distribution facili¬
and

obtain

large,

the

ties.
In

the second

place, this seems

•o

present may views as American
enters
what, to many,

business
will
but

be

a

and

new

strange

is actually as old

I

itself.

as

of course,

mean,

era,

industry
era

an

of competition.
Transition to
After
ket

in

almost

in

transition

market

brings

choice: We

can

tnrough

ly.

and
and

expand
the

of

ress

critical

a

bold¬

ahead

move

management

maintain
economic prog¬

selling,

the

to

eight

oast

slide

buyer's

a

it

better

harder

increase

to

with

of

again

Or

years.

in fear
controlled
economy,
restricted
production
and a kind of economic plateau
can

we

and

backwards,

trembling,

which

to

ing

some

of

trend

a

direction

months.

alarm¬

been

symptoms

latter

for

efficiency and

have

The automotive

the

in

during

recent

industry,

example, has been accused by
of

producing too much and
being too competitive. Appar¬
ently there are those who would
some

a

Buyer's Market

every

mar¬

major line—

like

to

mark

days

see

the

of

eight years of the greatest pros¬
perity, production and employ¬

seller's

automotive

easy

market have

ended.

ment

the

that

now

and

down

slow

us

time,

the

has

world

seen—

ever

witnessing a rela¬
tively rapid transition to a buyer's
market.
The tremendous buying
we

are

now

built

pressures

by

up

our

amaz¬

■

Perhaps
but I

reacting

been

met

by

this

to

typical,

clear indi¬

people
set

new

are

cir¬

of

urged

by the auto workers'

were

union

have

not
a

some

Earlier this year, we

ing population growth and steady
individuals

is

it offers

how

of

the

cumstances.

increases in the spendable income
of

field

think

cation

experience in

our

to

to

cut

level it

back

production—

out somehow—because

they feared that production would
*An
42nd
ment

address
Annual

by Mr. Breech before

Convention

Bankers

Hollywood,

Fla.,

of

Association

Dec.

3,

the
of

the

Invest¬

America,

have

to

half of

be

reduced

in

last

the

1953, with consequent un¬

employment. Well,

1953.

the

so

loss

we

maintained

that

the

and.

for

expect,

we

of

quarter

at

time

to

cut

vious

has

even

that

they

have

failed

difference

the

in

consumer
a

the

enterprise has

want

there

is

and

have

and

tain

state

being

dealer

associations

are

you.

vocal minorities
to ask for laws which, in the end,

would

urged

Since

for

in

no

War

of

some

them,

too,

since

II.

the

Distributors

has

more

in

in

the

of

two

or

of

of

spending
power
American
people.

the

we've

emphasis

last
year,

at both the fac¬

on

with

field

put

great

a

sales

the
deal

training

in

off.

some

paying

1,800

anything sacred about his¬

not upon
or

what

think

we

can

sell

of the
next

dealers'

Since
sons

market

as

five years
we

or

1947,
other

on

throughout the
In

our

schedules, however,
by

dealers'

American Stock
Exchange

Liverpool Cotton Assoc'at

Chicago Board of Trad;

Chicago^Mercantlle Exchange
Midwest Stock Exchange




on,

10-day

Los Angeles Stock
Exchange

New York Cocca
New York

1845

Exchcnge

Stock

Exchange

U

Exchange

Exchange, Inc.

Coffee & Sugar Exchange. Inc.

Memphis Cotton Exchange

New York Cotton

Montreal Curb Exchange

New York Prcdiue

Exchange
Exchange

in¬

reason¬

a

production

reports

Continued

it
Ltd.

the

we are

BASLE, (Switzerland)

•

as

your

CI

Wall

guided
as

their sales and stocks of both

New York Slock

New Orleans Cotton

In

share

company.

determining

PASADENA

MEMBERSHIPS

our

far ahead

plan

what

1954.

on

Clark, Dodge & Co.

American

EXCHANGE

in

and, for

MEMBERS

Commodity Excua-ge, Inc.

sold this

increase
each
year.
We're
backing up our judgment with a
very
sizable expansion program

have been grad¬

Founded in 1902

BUFFALO

Our

upon

fact, we have estimated

SHEARSON, HAMMILU CO.
BEVERLY HILLS

we

last year, but

exceed formation,

ing

is

we

ESTABLISHED

New York Stock
Exchange

will

able

recent years,

in'

year

v

the

Today that train¬

Advisorv Service

DALLAS

a

of

production next year will be

based

than

1952.

and

total

nine
after the

still

should

dealer personnel

HARTFORD

level

torical shares of the market.

first

this model

of

there's

netted

profits

1952.
Even
"cleanup" in

profits

dealers,

of

Investment Securities

HOUSTON

been

the

in

be spent for more and better goods

World

dealers

18%

netted

they

of

petitive market.

^

with

Much of that money can and

nine months

first

our

year,

almost

will

end

the

intensive preparation for the com¬

LOS ANGELES

prod¬

money

there

is discretionary
among
the

It

prime obligation

the

In

this

of

accomplish just this result.

Perhaps

tory

MONTREAL

people

when

improved

increase

American

every

a

1940,

five-fold

our

the toughest competitive

was

period

by

In

CHICAGO

We be¬
such thing

and services beyond the necessi¬
ties of life—in other words, for
ing dealer who is on the job climate of competition. Most of
higher living standards. Automo¬
throughout the year and the deal¬ the yells occasioned by the combile men have for years watched
er who
prefers to maintain high petitve market have
not
come
a growing demand not only for the
Ford
dealers.
profit margins per unit of sale from
They
are
medium and higher-priced lines as
through restricted production so doing all right and will continue
pgainst the lower-priced lines, but
that he may continue to devote
to do so.
for more luxurious styling and ac¬
a
small part of his time to run¬
You may be interested to know cessories in the most
inexpensive
ning his business and the rest of that Ford,
Mercury and Lincoln cars. New developments like auto¬
his time to enjoying life.
dealers made a higher profit in matic
transmissions, power steer¬
Apparently both groups — the the third quarter of this year than ing
and
power
braking
have
union and some dealer associa¬ at
any
time since the second caught on very readily. We see no
tions— are in favor of lessened quarter of
1952—the end of the evidence that people won't buy a
competition through lower pro¬ period of great scarcity. And the good product, fairly priced.
duction.
We even read that cer¬ third auarter of this year, mind
Nor
do
we
at
Ford
believe

those

NEW YORK

sec¬

history.

in

newer

ucts

people of this nation to be
competitive
and
to
promote
a

their

and

trucks, the

overproduction

as

to the

they have failed to distinguish be¬
tween the hard-hitting, enterpris¬

that

approximately

be

and

cars

highest

lieve

the

too,

men

organization.

that

belief

our

soeak,

I

majority of

dealer

great

It's also obvious that

for

healthy

be

that

sure

month

Research

ond

and for the economy as

so-called

and

to

return

will

year

7.4no.(100

which to buy them.

vast

months

Underwriters

haven't this

I

whole.

I'm

to

the

competitive positions of the indi¬
vidual automobile manufacturing
companies.

will

Second Highest in

Output

The total output of the industry

if

this

welcome

Ford

.quences

been

some

recognize

here,

say

competition. We believe it is long
and
that
the
conse-

dealer associations
back production.
It's ob¬

urged by

me

overdue,

industry

competitor.

History

already made it obvious, that we

thereafter.
The

sive

a

market.

Competition
Let

1954—

some

take

ever

securities

Welcome^ Return to

Ford

overtime basis for at

first

will

one

no

the

in

Auto

a

produc¬
tivity will be strait-jacketed.
There

least

obtaining his share

5%

What's more, we have heavy
overtime schedules, and will con¬
an

not

our

a

and

year,

year.

on

is

employment in

of

payrolls have reached an all-time
peak rate of nearly $1 billion a

tinue

and

protection!

from 1

this

over

half

first

an

we

Following out that philosophy, of the market, we much prefer to
maybe a scheme can be devised help him become a smart, aggres¬

domestic employees,

193 000

It

temporarily lose

we

So,

dealer

Washington

on

mand

and

of

prolonged seller's

a

longer

no

This

timely occasion on which

very

Goods

is once
Salesmanship
prime importance.

on

a

production as planned. Our em¬
services ployment at Ford Motor Company
this fall has averaged more than
short supply.

equally tremendous growth in

an

this

for

march

common

might be selling
a
competitive
de¬ standpoint alone, wherever a Ford

American cor-

porations as
are
gathered

plain

economic waste.

an

that

is

offer every
those who

part, because losing

our

outlet

economy.

much con¬
health

very

financial

assistance

of

means

controlled

a

,

are

the

dealers, and

our

kind

factors in main¬

as

men

young

automotive

We at Ford

cerned

with which to buy

money

the

own.

sense

difficult

for

management

field.
Many of our larger dealers have
s.'miiar training schools of their

oortant group.

It would be

Ford Motor Com¬

our

Merchandising School, which
a thorough training in
re¬

entering

for confidence, and denies there will be over-production

cause

new

a

tail

an era

Eisenhower Administration, in its

ess

an

offers

of competition, executive of leading auto producer de¬
slack 1954 and "a general run for the storm cellar." Points opt

Hailing return to

honor

an

be

to

pany

Executive Vice-President, Ford Motor Company

the first place,
it

uated from

By ERNEST R. BREECH*

pleased to have this

very

opportunity to address the Invest¬
ment
Bankers Association of

Street, New York 5, N. Y.

to

new

page

82

Volume 178

Number 5282

.

The Commercial and Financial Chronicle

.

.

(2383)
11

'»**•.'%«

i

"

-

*■-

:

<

'

i~k

'

'

Uil

»
,

'

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.

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n

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r

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f-

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23

f1

*

»•

The Positive Side of the Tracks
Forty-one
ciation

The

place

and

one

first

its

this Asso¬

ago

years

held

By WILLIAM WHITE*

convention.

New

President, New York

then

result in doing a better job for the

railroads. And
smce
s o

you

have

other forms of transportation.

graciously

invited
come

to

me

public.

Deploring investor pessimism toward the railroads, prominent rail executive
pleads for more equitable treatment of railroads in their competition with

the

was

tem, to do a better job for our
share-owners, which would also

Central System

York

City
of the principal topics of
discussion
was

definite

and betterments, and

vestment
Bankers Asso¬

Tells of dramatic change from steam to Diesel
power, and concludes "there

-

ciation

is

still

interested

in

is

railroads

says

are

of railroad additions

program

roads

.heir share-owners.

have

Slate

;ious

Commissions*

and. to

problems. But

ture of their

pects—those
I

like

suspect

ment

plus
to

factors—that

talk

that

within

community,

I

today.

treatment,

invest¬

ings and
they good

about
the

elsewhere,

as

the problems of the railroads have
been emphasized to such an ex¬
tent

that

they have obscured the
positive aspects of our sit¬

many

uation.

And that

is why the title
today is "The Positive

of my talk

be

Committee

the years has shown

a

over

keen under¬

standing of the industry's regula¬
tory and legislative problems. And
that

committee's

reports

receive

close attention from railroad

agement.
ate

in

a

No business makes

reports of
the
*An
42nd
ment

its

for

we

all

more

operations

railroads

to

the

oper¬

to

than

us.

do

Interstate

a

result

of

And I would

are

you

to if I didn't say that we
often
concerned
about
the
me

tendency
seems

ent in those

We

pessimism

to

to have become

feel

an

which

ingredi¬

judgments.

that

the

you

rails

pessimism

shows

itself

in

toward
many

It probably shows most

the

Annual
Bankers

by

Mr. White

Convention

of

Association

before
the

of

Hollywood, Fla., Dec. 3, 1953.




the

Invest¬

America,

cases, emphasizing truly
earnings are inadequate.
Similar testimony is given before
legislative committees, and speak¬

of

plain
saying

this

that

negative
the

rail

for

ers

our

clearly in

attitude

railroads

the

to

for

over

press

industry

stress

many'

problems because it is

essary

repeat

them

nec¬

and

over

emphasis in order to im¬

by

them¬

gloomy pic¬

State

the

airports
well

as

as

pres¬

too

or

slow

to

from

un¬

recognize

monopoly

competition.

to

Nevertheless,

there is growing public awareness

that

the

legislation

regulated

are

is

by which

we

outmoded.

But

there is always a great reluctance
to remove shackles.
This reluct¬
ance

is

fear

that

largely born out of fear—

terprising will lead to old abuses.

in

There need

upon

national

transportation

policy.
because remedial legislation
is necessary, public awareness of
these things is vital.
And

But,

actually,

forward

haven't

contained

informed

railroad
know.
alarm

these

statements

scene

straight¬

of

the

anything

observers
didn't

facts

that

of

the

already

They haven't sounded
to

send

investors

an

running

for cover.

freedom

tne

be

to

such

no

be

en-

fear.

The

railroads

no longer have a
monop¬
oly and they do not ask to be re¬
lieved of regulation that is neces¬
sary in the public interest.
They

ask

only

moded

for

of

from

out¬

that they can

so

competition

equal basis.
free

freedom

regulation
their

meet

on

an

They ask also to be

unwarranted

public authority

intrusion

their

upon

by

man¬

agerial functions and responsibili¬
ties.

Railroads Operated Under Con¬

cept

of

We do

Monopoly

Spokesmen for the railroad in¬

dustry

must
impress
upon
the
American
people that railroads
are

of

regulated

monopoly.

under

The

the

not seek

to

destroy that
regulation which, born of experi¬
ence, has proved to be good; nor
do

we

seek

to

destroy

our

com¬

petitors.
In
the
final
analysis,
concept what we seek is the opportunity,

Congress and under

are

our

capitalistic

f

.

•

/

•

profit

*

by

NATIONAL

sav^NOS

Bond Investment

to
use.

,

FRANCISCO

airways

and
investment

no

That

users.

which
tain

own,

their

is

a

'improve and main¬
rights-of-way and

own

taxes thereon.

pay

Is

it

not

should

proper, then,
seek
a
partial

that

facilities

with
public
monies,
charges adequate—but

than
use

is

users

of

provided
pay

user

greater

no

necessary—to

of those facilities

we

solution,

which is that commercial

transportation

cover

and

the

relieve

taxpayers, including the railroads,
from assuming that burden?
If
we are to operate under a
capital¬
istic
profit
system
successfully,
the

rules

must

be

fair

simple rule is that the

all.

to

user

A

of any

form

of transportation should pay
the full cost of whatever form he

elects to

use.
Then, say the rail¬
roads, "let competition reign" and
"let
the
chips fall where they

will."
The
enue

railroads, out of each rev¬
dollar, pay out 23 cents to

the cost of owning, main¬
taining and paying taxes on their
rights-of-way.
The truckers pay

cover

out

of

dollar

every

Continued

.

ASSOCIATION

Department
CALIFORNIA

,

United States Government Securities

STATE

that

necessary

great advantage over the railroads

sys¬

.

waterways,
—
require

commercial

iBank of Antcrtra
SAN

concede

But, having been built with pubthese facilities—high¬

transition

keen

not

build airports for commercial

groups, have been either

sure

been

there

lie, monies,

legislatures,

willing

do

monies

public

regulatory bodies and
legislators the inequities that exist

the underpricing of rail stocks and
bonds on the securities markets.

selves usually paint a

rate

ways.

There have been attempts to ex¬
address

This

prospects.

of course, to statements
made by railroad officers in vari¬

well

spotlight

turn on us is good for us, but that
too often it is colored blue.

see.

detailed

As

speaking less candidly than

Investor

Furthermore,
fish-bowl

man¬

bad.

ple make about
want

know
Rail¬

or

availability of all this infor¬
mation, the railroads are scrutin¬
ized, analyzed and criticized. Nat¬
urally we are interested in the
judgments which investment peo¬

Our problems you
already
about.
The work of your

Securities

publish their find-"
also their opinions—be

the

Side of the Tracks."

road

and

own

refers,

we have,
There are jiferaily hundreds of ous
also, pius
factors, and it is those positive as¬ security analysts in your business that

would

I

ways,

Commerce Commission, to the va-

that

.

potential growth in the railroad industry."

Today, as in
1912, the rail¬

vviwic

nurs¬

since

to

grown

recognize

monies.

in best physical condition in history.

the railroads.
William

long

and

longer

no

need

maturity.
is only
one
way to provide public high¬
ways, waterways and airways, and
that
one
way
is
with
public

their improved financial status, and their

are

possibilities of growth. Reveals gigantic

are

that

weaned

We

address you, I
must conclude
that the In

competitors
industries

They have

ing.

Recites favorable factors in condition of the

railroads tcdav, among which

here and

Our
infant

and MUNICIPAL

BONDS

Specializing in the General Obligations of the State
of California and its Political Subdivisions

of
on

revenue

page

73

The Commercial and

(2384)

24

Financial Chronicle

...

Thursday, December 17, 1953

Leadership Needed
Chairman of the Board, Eastern Air

"That dream of

should

life

After denouncing

be

and

fuller

handouts, and introduced

for

every

man

with

for

maintains,

opportu¬

nity

being

able

grow

to

fullest

as

We

^oman>

Un¬

hampered
had

by

slowly

civilizations,

unrepressed by social orders which
had

developed for the benefit of

the

classes

rather

has

Adams

have

have

We
our

to

of

that

which

How far from that

concept

fathers

in

the

and

happened
Dream"

spoke?

original

wrong

for
any

of

class."

"American

far

than

being

of

the

traveled

we

founding

strayed?

we

How

down

the

highway?
have
own

become

confused

so

thinking that, instead

of
relying
upon
those
eternal
principles upon which our great
republic was founded, we have

permitted

the

Kremlin

to

mad

in

men

dictate

the

nation's

our

Instead of
actions

stumbling

another,
might

or

our plans and
realities, we are
from one guess to

on

what

the

might not do.
ourselves

to

Soviet

We

be

have

led

Wisp that, instead of leading,
have been diverted

in

into

and

the

we

shame¬

a

costly rear-guard
light for freedom.

action

vestment

ica.

Annual

Bankers

Hollywood,

Convention

of

Association

Fla.,

Dec.

the

of

2,

at
In¬

Amer¬

1953.

them free

group

a

and

to

of

plosion.

them

sure

against

of

something
Election

that

by
bu¬

the

mush¬

atomic

of

cloud

hearts

the

exr-

dark¬

struck

fear

until, finally,
about it.

Turned

Last November
to

set

greedy

an

depth

that

our

did

left pect government subsidies to in¬

manipulate the ma¬

The

into

fires

like

us

cloud

prices before they even sow their
crops.
Business and industry ex¬

uals

more

than 20 years,

the life span of

tion,

we

with

our

through

entire genera¬

an

have been

so

concerned

favor—these

established
of

so

our

free

intent

the material
were

age

our

ignored

been

responsibilities
duties as self-

We have
accumulating

men.

upon

things of life that

trading

our

thinking

of independence for

a mess

and

in

false

entirely

govern¬

the

a

halt

when

march

fateful

Tide

called

we

we

the

Individ¬ American

loss.

our

well—wage

as

earn¬

businessmen—were

ers,

farmers,

won

over

by this false philosophy.

of us,

in all walks of life, be¬

to

gan

turn

to

of

think that we need only
the government for tem¬
even

or

permanent assist¬

ance.

backs

of

with

on

those

blood

Constitution,

we

these

facts

when

you

first principles

the

to

the

suffering

and

fore

you

we

sacri¬

fice endured to give us our herit¬
age

of

eignty

independence, the
of our individual

and

freedom

pur
citizens.

sover¬

states,

individual

as

But 20 years is a

was

lost,

were

the

office.

as

well.

Federal

aid

means

Control

control.

Fed¬

has

this

false

power.

Power

ers

want

And

which

doctrine taken hold that our farm¬

tion.

means

guaranteed government the hands of

centralization

in

vember.
At the time of that Presidential

election there
lion

citizens

these

dawn

vote

in

States.

Of

that

98

voting

of the

That

98 mil¬

some

to

million

52
of

were

eligible

United

citizens

had
age

become
since the

"New Deal"

means

in

1933.

that the majority of

citizens entitled to vote today

have lived their entire

a

few

—

our

the

lives under

an

philosophies

of

Of that 98

in

1952,

million eligible vot¬

less than

Continued

end to this

75 million
on

page

Underwriters and Distributors

of
UNDERWRITERS, BROKERS nnd DEALERS
iittributing

Corporate and Municipal Bonds

Corporate and municipal securities

Investment Preferred Stocks

tince 1
>688
,Y

Equipment Trust Certificates
.; i
'

.

i

W. E. HUTTON & CO.

Union Securities Corporation

Members Neiv York Stock
and other

65
BOSTON

Broadway, New York 6
BUFFALO




PHILADELPHIA

CLEVELAND

SYRACUSE

Philadelphia
Lexington, Ky.

Baltimore
Easton, Pa.

Exchange

leading exchanges
CINCINNATI

NEW YORK

O.¬

HARTFORD

the

New Deal and the Fair Deal.

ers

seriously endangered.
had to be

political

entire

system of Federal Government is

There

more

—

tremendous power

Be¬
granted,

much

evaluate

to

means

centraliza¬

means

with

long time.

take too much for

need

million,
what

applied to gov¬
applies to the individual

Because,
ernment

eral

widespread

we

carefully what happened last No¬

our

So

in

Independence

of

back

remember the lives that
and

groups

All

Think

think

upon
which our
Republic
trend founded. Think of these when

freedom-loving

in

want

prophets

new

only millions of individuals

porary

our

Declaration

but

we

priceless herit¬

principles, written
our

an

any

America.
Not

governing

above

selfish interests that

own

neglected

and

those who treasured their

scorn

independence
ment

For

By turning
42nd

have failed them;

we

ourselves.

political pottage.

,*An address by Capt. Rickenbacker

the

to

opportunists

political

lic

we

blind alleys of economic
appeasement,
have
trained
so
many of diplomacy's Wills-of-the-

Government

eral

by

and corruption in

which

over

in

financial

inevitably breeds, the
of
"big
government"

rooming
ness

of

people, by exercising
"security" without the the priceless privilege of their
chinery of the people's govern¬
ment to satisfy their own selfish necessity to work for it.
franchise, chose a new leadership
for our country.
wealth of manpower and mate¬ greed for power.
A Warped Concept of Government
Their hold over us was gained
All those who had
been con¬
rials in a frustrating attempt to
Relationships
cerned with the way we had been
keep things from getting worse.
gradually. Little by little, our
But this is only one part of the
drifting toward destruction of our
Any right-minded person knows people, and particularly our young challenge we face.
Our whole democratic
were
taught that there
way of life were en¬
that such a course can only lead people,
concept of governmental relation¬
was
no
longer the need to work
couraged to read into this choice
to defeat and disaster. Why, then,
ships has become warped. Through of
in a country as wealthy as ours;
Dwight Eisenhower for Presi¬
did we follow it?
Why have we
the "brainwashing" process of the
that
free
dent a sudden end to our nation¬
enterprise
was
out¬
gone so far astray?
Federal "dole," every one of our
wide
economic
and
world-wide
moded; that an all-powerful gov¬
The answer, gentlemen, is sim¬
48 sovereign states has become in¬
ernment could best take care of
political troubles.
ple enough if we have the cour¬
creasingly dependent on the Fed¬
their every need.
I am sorry to say that many of
eral Government.
age to face the facts. You and I
them, because they failed to ap¬
have failed. You and I, once the
The Philosophy of Doles
A fact-finding mission discov¬
preciate the enormity of the task
products and the trustees of the
By doling out largess here and ered that, through grants-in-aid, given to this new leadership, are
system of freedom and enterprise,
the
Federal
Government
influ¬
there, by offering easy govern¬
sitting
back
impatient
because
which our founding fathers passed
ment jobs or handsome
govern¬ ences and to some extent controls the new Administration has not
on to us, and by which our coun¬
ment handouts to those who would 75% of the total activities of our cured the ills of the
past two dec¬
try became great—we to whom
follow—and by holding up to pub¬ individual state governments.
ades in its first few months in
the
American
people
look
for

up

many

ful

our

basing

to

spectre
loomed

Warns attempts at change will be met

opened the sanctuary of our Fed¬

Astray

demonstrating

leadership, instead of concentrat¬
ing our God-given talents and re¬
sources on making things better,
we
have
been
dissipating
our

and

on,
as

allowed
so

of

leadership;

policies.

our

Gone

Have

and

out

office,

reaucracy

bureaucrats,"
probability of immediate business collapse.

Decries

Instead

been erected in other

public

new

cloud of calumny "generated by smudgepots of entrenched

a

doors

bankruptcy.

Smoked

government in business is most

says

the

moral

wholesale graft

devel¬

man

which

curbing this trend and

by

to

and

entire system of Federal Government is seriously endangered

difficulties of

to

ours

Capt. Rickenbacker

problem today faced by people.

the

opment

Capt. E. Rickenbacker

our

Administration

"A dream of

What

who favored doles and

vital

achievement.

human

years,

government in business,

more

through concentration and expansion of government. Sees

each

according
t o
his ability or

barriers

false prophets of the last 20

and

richer

every

with the public's tax
bribing the people with
the people's own money — which
was
bringing this great nation of
power

funds—of

land in which

a

better

simple

cal

Lines, Inc.

Dream":

"American

the

fantastic process of buying politi¬

By CAPTAIN EDDIE RICKENBACKER*

Many decades ago James Trusof the

low Adams had this to say

Boston

Davton

Portland, Me.

Hartford
Lewiston, Me.

65

-

#

Volume 178

Number 5282

.

.

The Commercial and Financial Chronicle

.

(2385)

Thwarting Nuisance Suits
The
for

filing of law suits merely

the

public

of

purpose

business

become

Partner, Wood,

prevalent that serious considera¬
has

given

to

the

In pointing out

by

The

and

Per¬

the

public body to
construct

public

a

im-

vement,

p r o

Wood

have

d is

-

that

merely by filing a
suit questioning the
validity of
the bonds which the public body
to

proposes

issue

to

finance

peal to appellate courts within

the

remedies

heretofore

far

gone

enough.

in

teeth

forts of

Any

defeat

or

ridiculous law

contentions

suit.
is

The

is

the

in

construction

validity

de¬

person

delay the ef¬

of

sufficient

to

deter

of

suit

the

the

judicated

notwith¬

and

notwith¬

standing the fact that the Statute

ing the securities.

to

set

at

all

rest

suffer

issue of State

municipal bonds.

or

barring the institution of

any action

ity

of

questioning the valid¬

bonds

pledged for
the

of

has

the

taxes

payment

States

under
may

to

of

not

have

which

cause

be

a

he

will

Suggested

enacted

a

which

has

taken

proceeding

the

purpose

file

proceed¬

appropriate

an

the

of

ceeding
given
sons

pendency of the

shall

by

of

ment of the validation

or

revenues

the

tion
in

of

court

order

of

the

actions

in

any

ac¬

before it.
to

the

State

in

proceeding pending

This

would

then

the

enable

or

it for

pending

State

validity of the
taxes

of

proceedings with

bring before

cases

and

consolidation

or

the validation

the

trial be¬

or

issues

such

may

proceeding then pending

any

for its

court

joint hearing

a

or

may

the

be

required

publication

to

to

all

the

proceeding

shall

in

the

trial
any

involving the

bond

issue

revenues

or

of

pledged

payment, and would avoid

multiplicity
so

often

of

taxes

to the

and

General

to the

or

is

propriate official.

valid

that

and

judicial

the

bonds

incontestable.

decrees

have

are

Such

likewise

proven to be ineffective.

issues,

authorized

bonds,

from

and

might be taken

appellate courts.

after

After the

affirmation of the de¬

an

by the appellate courts, the

court

might

enter

a

validating the bonds,
be

authorized

tion

until

to

proceeding.
thereafter

final
or

retain

or

order

be

guilty

I

believe

statute

were

islatures
any

objection
bonds
court

to

them

a

realize

body might present to the
a

It

would

showing

supplemental
the

petition

proceedings

which

of

the

located,

terested

bond

the

or

in

issue

or

for

some

the
or

taxes

pledged

to

Any

be

given

his

other

he

would

tempt of court.

validity

in

the

other

of

validity

protect

from these

public

goes

to

a

step

beyond

It

the payment

I

believe

it

work.

of the

issue, shall be entitled to

anything

\ *An
address
by
Mr. Wood at
the
Municipal Committee meeting of the In¬
vestment Bankers Association, Hollywood,
Fla., Nov. 28, 1953.

appear

in the

proceeding and contest the

validity
taxes

of

or

the

bonds

revenues

of

the

pledged

for

or

their payment.

State
Blair,

and

Rollins

Municipal Bonds

&• Co. Incorporated

Municipal Bond Department

Underwriters, Brokers and Dealers in Securities
Municipals

•

TELETYPE NY 1-708

Public Utilities

•

Industrials

Mutual Funds

THE NATIONAL CITY BANK OF NEW YORK
44 Wall

Street, New York 5

Telephone DIgby 4-4000

^SbNAlcsS

Teletype NY 1-1109

Head
55 Wall

Private Wire System
Ntw

York

Albany
Grand

Rapids




St. Louis

68 branches

in Greater New York

Street, New York

Connecting

Chicago
Rochester

Office:

Philadelphia
Buffalo.

San

Francisco

Detroit
Toronto
MEMBER

FEDERAL

DEPOSIT

INSURANCE

a

the
con¬

real

legisla¬
bodies

con¬

sideration.

■

I desire to propose a remedy.

run

sub¬

Loudon

Chicago

of

mit this suggestion for their

the

of

the

nuisance suits, I

New York

revenue

but

bringing

If there is

the part of the

Established 1850

in¬

the

purpose

Hallgarten & Co.

ap¬

of

day in

a

objections and

State,

person

a

legitimate

a

issuance

considered

that

to

proper

of

such

being committed for

tures

these

rev¬

by the leg¬

suit, merely for the

risk of

After

or

if

adjudicated,

who

sale

which

suit

harassing the public body, would

it might

proceedings have been taken, the

the

state

on

suits

per¬

contempt

that

who had

to

have

person

of

enacted

would

desire

bonds.

a

I

the

throughout the country,

person

jurisdic¬

proceedings have been

the

Any

,

filed

of the taxes

court.

taken by the public body for the
of

in

pledged for their payment,

would

the

appeals might have been taken,
cree

teeth

the bonds

be

this order appeals

'

put

proceeding.

interlocutory decree

the

for

*

prosecuting attorney of the

court, before which the proceed¬

declaring

an

the

or

district in which the public body

ing is brought, to render

decree

would

of

pledged

revenues

T

be

ment

a

enter

court,

occurs.

no¬

of the

the

of

should

attacking the

bonds

be

Attorney

pay¬

trial

State

the

per¬

posed bond issue and the validity

authorize

court

validating

required to be given either to the

pledged for its

the

No¬

of testing the validity of the pro¬

which

the

who

per¬

raising the issue of the validity of

Right of Appeal
After

any

instituting
proceeding in any

or

or

enues

the

or

permanent

thereafter

commence¬

the

of

son

a

pro¬

interested, and perhaps

tice

the

proceedings
court, the

petition praying for the

validation of the bond issue.
tice

motion

fore it

now

in

after

issue

their payment.

expiration of the time within such

public

any

to

body

in

taxes

to

the

authorizing

a

statutes

court

pledged for their payment. Upon

court

court,

the

action

This

suits

other suit involving

enact¬

the State legislatures of

statute

body

the

is

bonds

public

for

ment by

Legislation

propose

time.

prevented

judicial

instituted

I

statutes,

such

the

What

the

validity of the taxes

court

so.

ings to authorize the issuance of

institution of nuisance suits. Several

that

after

specified

a

existence

however,

of

or

their

elapse

The

knows

enjoying
court

any

run

penalty if he does

no

in

validity of the bonds

all

Statutes of Limitations have been
enacted

he

re¬

proposed

a

have

against the institution of the suit,
because

questions

garding the validity of

the

such
may

order

an

State of any

order

of

Limitations

for

institution

attacking the

bonds,

valid

as

court

most

investment bankers from purchas¬

Many attempts have been made

from

validity of

also prevent the institution of
any
new

the

restraining

any

similar

public im¬

a

bring

may

Upon the filing of the petition,
public body may petition the

the

no

litigation standing they may have been ad¬

fact that

mere

pending

raised

are

public body to finance

a

gardless of how frivolous

the

There

them.

siring to

provement

be

proposed

have been futile is they have not

constructing the improve¬
ment, is sufficient to accomplish
their purpose, and this is true re¬
may

the

reason

such

by

to

validation
which has been proposed to date,
but I believe that the

cost of

the

and

injunction

limited period.

a

a

if

to

interlocutory

validating the

bonds

ap¬

desiring

thwart

efforts of

M.

of ob¬

purpose

remedy, enactment by State legislatures of laws authorizing
any
public body which has authorized an issue of bonds to file, in an
appropriate
court, a petition praying for the validation of the issue. Would
permit an

many

others.

David

mere

proposes, as a

American Bar

covered

of law suits for the

menace

and

subsequent

the

approved

son

Associa tion

sons

the growing

of

court would then be authorized to
enter a final decree

structing public business, particularly the issue of municipal bonds, Mr. Wood

the

as

IBA,

to

decree,

Dawson, Attorneys, New York City

taken

entry

are

organ¬

izations

King &

been

the

been

problem
such

have

Chairman, Liaison Committee of the Municipal Section of American Bar Association

so

•

tion

Borrowing

By DAVID M. WOOD*

obstructing

has

Public

on

25

CORPORATION

would

The Commercial and Financial Chronicle
26

Thursday. December 17, 1953

...

(2386)
4

A J

r

.

•

•

»

.

*

►;

,

*

t'»

O

.

*t'

■

Canada's Positive Tax Policies
dian
is

Minister of Finance of Canada

Cana¬
corporation income tax which
the

of

one

now

profits.

of

sources

he states, are

for

revenue

Federal

our

Canada's attack

before

But

outlining

our

businesses.

corporation
income

tax

policy.
should
the

set

main

ments

out

ances."

the

Canadian

through sales and excise taxes. Explains

revenue

double taxation and its

on

upon

program

15% tax, and

for tax relief to small

Canada has

says

Says Canada has

on

J

About

■and

30%

revenue comes

Hon.

Abbott

C.

tax

and

this

to

taxation,

excise

special

addition

a

tax. It

come

tax in Canada.

Federal

Another 30%

Revenue

comes

from

revenue

tax

which

from a

These

comes

revenue

earning.

on

When

structure

I

spe¬

the

from which is paid into a

pay old age pensions,
special taxes are a 2%

we

defense effort in 1950 we

our

decided

icy.

began rapidly to ex¬

we

on

In

pol¬
budgets

pay-as-you-go

a

post-Korean

our

lnnliiflinrt

torn

Q<\r-ninrt

nn

In pand

special extra-budgetary fund from

corporation income tax. About 21%
of Federal

in

taxes.

personal in¬ should mention that we levy
is the only personal in¬ cial old age security taxes,

come

in

manufacturers' sales

a

progressive

steeply

of

D.

indirect

from

the form of

of Federal tax

from

C

profits, with 20%
At the end

able.
cess

profits tax

of

sonal
rate

1947

income

the

on

corporate

method

in

used

There, the share¬

the

ex¬

For

be

"grossed

jargon

up,"
of

the

as

the

gatherers has it. Nor did

tax

we

fol¬

pattern, "frequently

the

low

surtax

however, the dividends

purposes,

to

behalf

his

on

corporation.

refund¬ unpleasant
the

standard

the

at

withheld

been

by

have

tax

his dividends because this

on

has

taV

repealed.

was

of

holders does not have to pay per¬

tern, including excess profits tax,
was 40% minimum with 100% on
excess

the

Britain.

Great

nrnfltc

ovnooc

taxation

follow

not

scrap¬

spending and taxes other taxes and by 1942 the pat-

personal and corporate incomes tween taxes on

...

Taxation

attack

profits is, I think, unique. We did

tax

picture.

double

completely re¬

Double

on

Canadian

double

allow¬
working solution of competing tax jurisdictions,

a

been

has

Attack
The

corporations right to capitalize undis¬

payment of a

three-quarters

moved.

ped old concept of depreciation and adopted a system of "capital cost

ele¬

of

needed

new

Reveals plan which gives

tributed income

I

taxation

aimed to hold down both individual and corporate income tax

and to raise

rates

Government.

about

For

of the corporate taxpayers,

developments, which,

Canada's Finance Minister describes recent Canadian tax

largest

two

through the personal income tax,
of the dividends paid out of these

By HON. DOUGLAS ABBOTT*

give most of my time

I want to

today to talking about the

ad¬

vocated here, of

allowing the cor¬
to cover an increase of about 50%,
brought personal income tax rates poration to deduct from its income
the amount paid out as dividends.
in total expenditures. In designing down to
fairly reasonable levels as
That would convert the corpora¬
our tax policy to bring in enough
compared with top wartime rates.
tion income tax into a tax on un¬
revenue to meet all expenditures,
Corporations, however, did not
to find the revenues

have had

we

Successive

cuts

tax

postwar

distributed
we
have had to
remember the have a
profits.
For
Canada
comparable reduction. The
manufacturers' sales tax, a 2%
such a tax, apart from anything
8%, and personal income tax, limited to a desirability of increasing national Federal rate was lowered to 30%
that
may
be said
in principle
from a special excise tax on a maximum of $60.00 per year, and production, of encouraging a high but the two large provinces,
in
level of savings, and of keeping which many firms have their head against it, would be extremely ex¬
broad
group
of
less-essential a 2% corporation income tax.
within
reasonable offices, re-entered the field with pensive, because of the large vol¬
consumption
items.
(I should note, however,
Why More Reliance on Sales and bounds. We strove, therefore, to
ume of dividends
that go abroad.
that there is no sales tax on al-*
7% taxes. In 1949 we introduced a

.sales tax applied at
iurers' level at

rest

fuels, building ma¬
capital goods.) The

nor on

of

the

Federal
excise

from

comes

the manufac-

rate of

Excise

most all foods,

terials,

a

tax

revenue

duties

tobacco products and liquor,

on

Taxes

A credit for these dividends would

find a balance between taxes and
special low rate of 10% in the
be of some in¬ earnings—income taxes, and taxes first $10,000 of profits and in¬ substantially undermine our cor¬
terest to you Americans that we on spending — sales and excise creased the rate on all
profits over porate revenue. Our present law
rely so heavily on sales and excise taxes. After Korea we applied $10,000 to 33%. With the 7% allows a credit only in respect of
I

it

think

from taxes.

I

may

have

been

much conof income
they tend

duties, non-resident in- cerned over high rates
tax, succession duties and so tax. We, in Canada, feel

customs
come

to

-on.

encourage

taxes

extravagant expen- spending

,

7,

,

.

,

before the
Association, New
York City, Nov. 20, 1953.

American

Management

phasized

a

reasonable balance be-

wp

were,

brake

ment and labor. Thus we have em¬

taxes

saving

on

and

found,

we

Federal

is the

valuable

n

a

personal

income

During and since World
we

II

Dealer

a

have

quite

gone

a

in Canada toward find¬

way

ing

•

wartime

the

was

i.

i

working

are

the

and

Canadian

unaffected

itself

corporation
by

present

our

ar¬

rangement.

rate

standard

One minor point here.

General¬

solution

to

the

As

result

a

increase

tax

post-Korea

the

re-arrange¬

with the

of taxes

ment

the

of

and

provinces,

to which I have referred, the spe¬

cial

low

had

to

rate

on

businesses

small

the preferred

share¬

holder

Small Business

Taxing

tax

only personal income tax in

long

Distributor

brought back to the

was

which

□

I mentioned that

War

•

provinces

holder

by

The non-resident share¬

ly speaking

Canada.

Underwriter

large companies in the two large

inflation.

on

A moment ago

the

these

encouraged

u/prp

.

*An address by Mr. Abbott

received

in provincial tax, the overall level of dividends
residents.
corporate income tax
for most

bring

to

a,3Sorb PurchasingvnmnhiP 40%
power.
fniinrl

bulk of revenue is diture by business and they blunt
*>
J
Tnpv
They
raised by the two income taxes
the incentives of both manage¬
,

believe

I

needed.

But the great
.

spending

on

about 45% of the new revenue we

not

bear

burden

does

the

of
The

corporation
falls

burden

shareholder.

income

on

the

Under the

tax.

common

Canadian

entitled to
credit.
Simplicity was one
greatest arguments for this

law, however, both
a

the

tax

be

are

brought up for a time of the
problems of competing tax juris¬ to 22%. It is now at 20%. My last
Our tax credit was der
system.
dictions, which plague all Federal budget made a further important vised not
only to remove double
systems of government.
adjustment by increasing the spe- taxation, out also to encourage
Nine out of the ten provinces of cial low tax bracket from $10,000 Canadians to join in a wider
par¬
Canada

have

to

$20,000. (For convenience, I ticipation of equity ownership, to
including the 2% old age se¬ encourage them to participate in
renting certain of their tax fields curity tax on corporate income in the expanding industrial wealth of
to the Federal government. As a these percentages.) This low rate our
country.
result of these agreements there on the first $20,000 is extremely
with

Securities of the United States

are

Government and its Instrumentalities

the

no

provincial

corpo¬

tax, and only

two

With

important
every

to

Industrial, Public Utility and

estimated

this

been

of all corporate taxpayers

Canada

fall

within

this

of

dividend

in surplus

$20,000

turn to the

me

policy
affected

as

some

of the
cor¬

in the
at

the

big

concerns

by

A

dividend

tax

low

individuals

•

years

in

ago

rate of tax

our

was

on

only 8%. Twenty

1933

it

was

only

12%%.

During the early

Canadian Bonds

War II,

pushed

Foreign Dollar Bonds

years

of World

of course, the rates
up

rapidly

along

were

clare

the

in

rate.

This
to

credit

same

tax

was

time

credit

deduct

as

in-

were

were

reasonable

the

allows

from

their

Personal income tax liability 20%

re(^uc^nS double taxation, that is,
the taxation of corporate profits

with and

the

subsequent

in

needs.

as

a

taxed

authority

dividend

and




San Francisco

they

accordingly. While this

had

not

been

used

was,
a

to

never¬

potential

understand

that

here

your

equivalent section 102 has for

taxation,

in

the

United

Continued

on

Exchange

Chicago

NEW YORK
Cleveland

a

of its

Shareholders

it .n ,<i

Philadelphia

that
of

excess

CORPORATION
Pittsburgh

case

earnings

of the dividends they receive from any great extent, it
Canadian tax-paying corporations. theless, regarded as
This is an important method of source of trouble. I

Members New York Stock

FIRST BOSTON
Boston

tax

deemed to have received this

excess
were

particular

any

accumulated

BEAR, Stearns & Co

The

New York

earned
our

law. Our old income tax law used

corporation

troduced at the

corporations

now

49%.

prise.

Acceptances

still bear1 tax

higher rate, which is

government is taxing away nearly

Back in 1929

/

problem

and

sketch
of
the
tax bracket,
although
by
far
the to contain authority for the Min¬
Canada, I would like greater part of corporate profits ister of National Revenue to de¬

Under present rates the Federal

Company Stocks

Securities of the International Bank for

/

'that

Problem

Tax

Now let

to discuss

now

poration income tax.

Development

Solving the Undistributed Surplus

structure in

main features of the Candian

Corporations

Reconstruction and

about

has

duties.

in

in the small towns and villages. It

half the profits of corporate enter-

Bankers'

businesses

small

part of Canada, particularly

to turn

Bonds, Preferred and Common Stocks

Bank and Insurance

am

70%

succession

Canadian Corporation Income Tax

Securities

Railroad

one

income

provincial

State, Municipal and Revenue

of

agreements

government

provincial personal income

taxes, only
ration

signed

Federal

CHICAGO

States

page

45

.

Number 5282

Volume 178

.

.

The Commercial and Financial Chronicle

.

Basic Research for the Securities
an

increase in basic research in the

ever

Dr. Saulnier describes the scope of economic

economic

eral

has

truly
able

i

c

1

a

Investment Bankers Association.

at

of securities marketing.

has

Says there is need for

banking and the problems of

ment

alto¬

gether

rate.

pointed

Yet

is

tion of immediate problems; there
is
little
opportunity,
unfortu¬

it

widely

that
the

efforts

our,

workings of

social

voted

A

that

was

of

research

study

the

clarifica¬

Labor

billion
indus¬

This
is

view

reseach

financial

of

quite

probably

variance

at

and

development. with what many people currently
comparison of this figure with believe.
It
is
broadly
true, I
one that fairly represents
expen¬ think,
that
people
understand
would

ard

financial

on

research

obviously require

definition

what

of

ficult

to

give,

tion

dif¬

fact

what

ment;
pect
of

is

defini¬

annually

we

achieve

better

a

spend

financial system is but a very
fraction of one percent of
what is spent on industrial re¬

nitudes
terest

itself
it

understand
I

take to

ion,
what

the

the

industrial

broadly

of

called

We

applied

and

or

immediate
its

to

pure

utility

purest

all

it

to

when

attempt i tions of

we

describe

our

and

economic

the interest of foundations
seach

in

these

worthy,

and which

many concerns

a

extent
re¬

which

also,

the

that

have

in

is

It

areas.

certain

been

re¬

note¬

set

new

of

up,

the Merrill Foundation for

we

Advancement

Financial

of

economy

directed

are

cation

lem.

of

some

the

to

more

Often these

lems

of

impact

or

clarifi¬

less

by

deal with

public

of law

financial

our

nar¬

no means

policy

tinued
Influence of Governmental Control
And

and

the

but

is

that

in

recent

case;

may be concerned with some
problem wholly within the sphere
private policy. Examples may
be cited in great number: let me

mention

our

returns

and

studies

lending,

on

in

long-term

the

on

urban

on

the

costs

mortgage

factors affecting risk

farm

properties,
federal lending

on

financing

of

a

last

ingly

this

of

most

financial

our

20

number

the

reasons

important
system

has

years—certainly in the
—
become increas¬

years

the

respects

focus, and in certain
the creature, of govern¬

mental

control

This

has

phasis

given
the

to

of

financial

our

basic

regulation.
decided em¬

a

for

need

understanding
and

and

of

system,
research

of
we

we

result is

the

case,

extended

have

strengthened

or

be

given from

an

our

our grasp,

Examples

understanding.

the

can

almost endless

variety of fields: national income,
production, expenditures,
credit, etc.

of

the

sort

have in
"basic"

though

sketched
mind

above

when

financial

you

will

we

that

speak

research,

understand

that

I

cannot, in the time at my dis¬
posal, give an adequate picture

much
had

as

of

control

business

and

finance.

cial

system

mental and

that

are

shaped by. funda¬

swiftly moving trends

have

whole

already changed the
shape of much that
is

familiar

to

us

and

which

give
every
sign
of
producing
still
of the full variety of investiga¬ further and deeper changes in the
tions that would fall within this years that lie ahead. We are com¬
category. It will be equally clear, ing more and more to realize that
I
expect, that there is a sharp we must know what these forces
difference
these
are

between.

types

and

made in the

I

manner.

have

in

Banking

the

of

studies

studies

day-to-day

that

opera¬

are,

of

and how they operate, if
to

are

see

things to

even

we

to

years

in

resources

Perhaps

the

most

or

20 years,

mind

particularly

Research

Fund

the
the

of

Association of Reserve City Bank¬
has

and

15

however, has been the formation
of a number of industry groups
specifically for the purpose of
promoting basic financial studies.

ers,

has

last

opment of the last 15

economic

our

the

considerable

interesting and significant devel¬

better

a

in

expend

to

which

over

the last 15 years

contributed
the

around

Financial

$900,000

Research

Pro¬

of the National Bureau and

gram

the impact of its
object
the
clarification
of the
Life
Insurance
our economy, problems having to do with social Research Committee

on
the experience of investors

on

are

Regulation

perhaps

is

this

necessarily the

but

on

regulation

system,

There

prob¬

and

of

their

information.

available

of

either

of

Investment
of

the

Life

Insurance Association of America,
which has made substantial con¬

tributions to studies by a number
of
institutions
and
individuals.
The
list could be considerably
lengthened, though these are the

outstanding examples in the field
of

finance, but this is hardly
to

essary

there has been

by

the

the

establish
a

business

fact

nec¬

that

clear indication

and

financial

community of its interest in the
support of basic research.
So much for what

basic

research

in

we

dimly the shape
Continued

come.

mean

economics
on

by

and

page

68

national

the

result;

becomes

In

range,

there

in

only

ment of

cases

sources, and in some cases the
estimation of new data from frag¬

same:

be¬

science

the

of

form

of

science:

interest

no

nature

many

ous

ments

re¬

are

not

and

First,

studies, to mention
principal utility.
In some

to

pure

distinction

the

speaking,

little

in

It

lytical

our

field

consists of studies in which
is

in¬

characteristic

field.

with

pure

less

financial

is

of invest¬

survey

studies
are
with corporate bonds as cases in
A second reason is the increas¬
made that are plainly fact-find¬
point.
ing realization that the institu¬
ing in nature. In effect they pro¬
vide the basic materials for ana¬
Generally speaking, it is studies tions of our economic and finan¬

important to

far

be

than

tween

lack

widespread

a

that, contrary to what they involve the compilation and
a widely
held opin¬ arrangement of facts from vari¬

might

familiar

ex¬

of
what we
economic and financial

by

(1)

mag¬

little

no

is

I

be

in

search

of

also

devote

we

efforts

is

other hand,

its scope:

development.

is

but

develop¬

understanding

me

understanding of

simple comparison of

there

and

may
be useful for
describe, briefly, the chief
types of studies which fall within

to

small

This

the

research.

our

search and

research

on

mean

put on financial research,

we

what

of

industrial

mean

very

the

but

regardless

social

years

the

lags
behind
scientific
study in other fields has increased

regulation of the securities business.

reasonably well what is meant by they

stand¬

a
we

by research, and this is

that,

proper

rowly defined and specific prob¬

A

ditures

in

cal

that
Research

esti¬

for

1952

which

20

of

search

and the various phases

comprehensive

a

last

...

Scope of Economic and Financial

by

than $3%

more

expended in

trial

directly to

and

recent

Department

mates

as

de¬

research

in¬

explain

understand

resources

industrial

development.
the

the

a

in

some seg¬
may call "operating" research.
but also to There is no mystery as to why Knowledge is an outstanding ex¬
an
institution will do axjcertain, ample.
nately, to work in an atmosphere
why it takes the form
that
is free
of the
A substantial part of our basic
compulsions that it does and what forces have perhaps a considerable, amount
exerted by immediate and press¬ impelled
its
development
and of operating research.
research
has
But why financial
always
should
been done by government agen¬
resources
be
ing problems of a very practical change over a period of time. *
devoted
to
sort.
:
(3) Finally,
we
have
studies basic studies?
cies, and government has con¬

fact

negligible

are

with

to

to

a

our economic and

system

compared

to

the

awareness

foundations

ac¬

cepted

support
from

and

sources,

that in

say

growing

un-

parallel
J. Saulnier

economy

forward

an

con¬

significant contributions to
the support of basic economic re¬
search.
I believe it is correct to

Putlines objectives in various research proj¬

relating to capital requirements of the

ects
,

that

forthcoming

of

re¬

espe-

ly

gone

time

creasing amounts. Our great phil¬
anthropic foundations continue to

associations, including the National Association of Securities Dealers and the

this

period, but fi¬
search,

is

make

remark¬

nancial

research, with

Research undertaken with aid of- subventions from various organizations and

been

over

and financial

been

number

special reference to basic financial studies of the National Bureau of Economic

re¬

search in gen¬

kind

fortunate in

are

has

The growth of

R.

we

National Bureau of Economic Research

before.

have

we

of this

suming and costly, of course, but

•.

experi¬

enced

anything

Work

Director, Financial Research Program

rapid than

more

Industry

By R. J. SAULNIER*

The.last 15 years has witnessed
field of finance far

27

(2387)

a

The second type of research

(2)

systematic search for understand¬

is what might
be called
Applied the "descriptive survey." This in¬
hand, is volves
the
development
of
a
essentially utilitarian, or "practi¬ systematic,
factual
account
of
cal," as the saying goes. Actually, some defined area of our econ¬

ing

as

science,

the

in

the

on

we

nomic

do

and

in

work

itself.

other

overwhelming

what
*

end

an

proportion

the

field

financial

of

of

research

their

istics and
*An

42nd
ment

address

Annual

Bankers

by

Dr.

Convention

Saulnier
of

Association

at
the
Invest¬

the
of

they

America,

which

units

scribe

is

which

in

omy,

the

eco-

tem

fit
as

we

picture
de¬
character¬

may

make

leading

it

UNDERWRITERS

up,

activities, and show how
into the financial sys¬
whole.
Investigations

a

of this sort become more analyti¬

Hollywood, Fla., Dec. 1, 1953.

DEALERS
Underwriters

—

BROKERS

•

Distributors

Established

Dealers

1868

PUBLIC UTILITY, RAILROAD

INDUSTRIAL and MUNICIPAL

Spencer Trask & Co.

SECURITIES

25

BROAD

STREET, NEW YORK 4, N. Y.
Members

,

New York Stock Exchange

W. C.

Langley & Co.

Members New

115 Broadway
Tel.




York Stock Exchange

New York 6, N. Y.
BArclay 7-8800

ALBANY

BOSTON
NASHVILLE

CHICAGO

American Stock Exchange

GLENS FALLS

SCHENECTADY

MANCHESTER, N. H.

WORCESTER

If

28

The Commercial and Financial Chronicle

(2388)

...

Thursday, December 17, 1953

Municipal Group Protests Federal Competition
At the

opening session on Nov.

tion

the

of

IBA Committee says

of

meeting

America,

derwriter of bonds issued

Fla., A. Webster
Dougherty, of A. Webster Dough¬
erty & Co., Philadelphia, Chair¬
man of the Municipal Committee,
at

Hollywood,

the

released

report

market

outlook for substantial amount of

issues coming

new

owned industrial

o

a

r

d

o

£
in

Governors

elated amendments added

All

experienced municipal d e a 1 e r s
and municipal bo n d attorneys

sssyszsm

vari-

matters

o u s

referred

to

in

yf$ngsr of'Sertion840Ufa) yt
Iv

0f

Laws aie included in eac.i legis
latWe enectmentof the new Unitorm Commercial Code.
Many

their students and faculties.
This Section of the law

Op-

as

the

of

ciation and
section of

American
one

our

The

decision
of

Uniform

Bar

State

from ^ Part^c^ar
J o

the

Laws

While the above subjects were

Editorial

ArtiplP a of the nronosed

Code

by

on

amend

to

f ^ars amend+mei?t U..is e?hen wor^e* A*
?e2Llat^n' 3 p™ctlc?i ™aiier,the amendment
&rPPnm_

Uniform

adding the

discussed

tion

at

results

received

and

consideration
our

did

and

last
not

careful

recommenda-

annual

meeting

materialize

somewhat later.

bid

quotations

prices

or

bfh ne?*d ^alf^utstlnd-

taxPayers

for

money

may

sources

up

l'

M^LhL

=nH

=rii,,<-Hnv

hv

Payers.

^
e

^nde[.

the aboye section>

ueiieve is cieariv evident

^neve Is c\eart£
erally

subsidized

as we

in-

our

'

h

Fed.

encroachment in

the making of loans for such pur-

'ges.

from

Dealers

are

forced

maIV

instances the Agency

Joans'° purpose have been at
educational institutions
f0r
the

°

awav

bidding by the provisions in

rates less than

that which

United States with a life anywhere nearly commensurate with
th°se of the dormitory revenue
bonds of the educational institu-

the law and/or by agency opera- tions under discussion,
tions under the law. Additionally,
On April 13 last an issue of
is evident from observation of United States 3y4% 30-year bonds

Nobody else could meet the com-

ized

petition.

in the way of rates leads

Section

That

titled, "Housing
Institutions,"

Educational

for

until

to

do and has done

regularly
the edu-

cational institutions to place conditions in their public offerings
which of themselves not only dis-

Aq

a

nraptipil

Vf

tL o^tinn

p

writing

of

To

Administrator

the

of

pfflpt
HirppHvp
thpt
thi
1LH" l 11 h
tvJ

assist educa- courage, but practically prohibit,
tional
institutions
in
providing any dealer or investor from bidhousing for their students and fa¬
401(a)

"Sec.

maffpr thp rpcmit.

tL^POnotrnHi^

of

these

loans

Continued

on

with
page

may

make loans of funds to such insti¬

tutions
such

construction

the

for

of

F. S. Smithers & Co.

housing;
That

Provided,
shall

be

tional

to

the

the

ESTABLISHED

loan

1857

MEMBERS

educa¬

shows that it

secure

funds for such
sources

such

no

unless

made

institution

unable

INVESTMENT SECURITIES

New York Stock Exchange

is

•

American Stoch Exchange

necessary

housing from other

terms and conditions

upon

generally comparable to the terms
conditions applicable to loans

and

under this
And

title;

UNDERWRITERS

AND

DISTRIBUTORS

Provided Further, That no

such loan shall be made unless the

Administrator finds that the hous¬

ing will be undertaken in such
moted in its
it will

Members New York Stock

15 Broad

Exchange

Street, New York 5, N. Y.

a

that economy will be pro¬

manner

BURNHAM AND COMPANY

RAILROAD,

PUBLIC

INDUSTRIAL

AND

UTILITY,

construction, and that

not be

travagant

of elaborate

design

or

or

ex¬

MUNICIPAL

materials.

Any educational institution which,
prior to the date of enactment of

SECURITIES

this

Act, has contracted for hous¬
ing may, in connection therewith,
receive

this
may

authorized

loans

title, as the
determine:

under

Administrator

One Wall

Provided Further, That
loan

no

Street, New York 5, N. Y.

such

shall be made for any hous¬

ing, the construction of which

was

begun prior to the effective date
this

of

tional

Act.

A

loan

institution

to

an

educa¬

be in an
amount
not
exceeding the total
development cost of the housing,

R. L.

Day & Co.

ESTABLISHED

18G2

Exchange

shall

be

secured

in

such

at

rate

a

determined

by

DISTRIBUTORS
SECURITIES

PRIVATE PLACEMENTS

the
not

less

INVESTMENT

•

rate has been specified as
provided herein, shall bear inter¬
est

OF

SECURITIES

annual

Boston Stock Exchange

AND

MUNICIPAL AND CORPORATE

and be repaid within such
period, not exceeding 40 years, as
may be determined by him; and,

manner

Administrator which shall be

UNDERWRITERS

UNDERWRITERS AND DISTRIBUTORS

with respect to loan contracts en¬
tered into after the first minimum

MEMBERS
New York Stock

may

determined by the Administra¬

as

tor;

than

rate

which

the

minimum

CORPORATE FINANCING

annual

the

Secretary of the
Treasury shall specify as applic¬
able to the six-month period (be¬
ginning with the six-month period
ending
Dec.
31,
1953)
during

"VAN ALSTYNE, NOEL & CO.
Members:

which the contract for the loan is

BOSTON
SPRINGFIELD




NEW YORK

HARTFORD

New York Stock

made;
Provided,

NEW HAVEN

the

Treasury Department can borrow
through the sales of bonds of the

e£L,1-^ft

lsu.lr?

culties

UNDERWRITERS AND DEALERS

the

periods

Vail&g 'rates' fo^sudr^curmes"

"rSatVaveraVanmal
„

years

time to time.

of

Commissioners

the

Commercial

Ay.v>

by the municipal

Association for the

know, arise from
Board

Re-

May

funds

^XrketablLobhgatonsofth^ 11 creales an ""healthy situation
{OS mi™tabl,e oblig«ti<ins ol me from the standpojnt of our ecQn_
Umted Mates having a ma^nty Qmy fey imposing an unneces
^ lyof s™ch month of May and costly operation upon the tax-

was

of June 30 last.

amended

the

,

Title

Housing Act.

National

the

Section has to do with fur-

This

elasped before aH of the orations under that Section before
A. W. Dougherty
port were:
states had adopted the current u was amended were such that
The
apUniform Negotiable Instruments
was practically impossible for
pointment of Liaison Committees, Law which as will be recalled, private industry to meet the Fedone
by the Section of Municipal did not include
bonds payable eraj competition.
Since that
the

and

to 40 years

through other
fair going rates — ties

-

a"d investors will appreciate the nishing Federal loans through
value of this action. It is now the Housing and Home Finance
a
written In- very important
to see that the Agency to educational
instituterim
Report amendments recommended by the tions lor the purpose of assisting
»
"
Ma
y.
Commissioners mi Uniform State them inprovidinghousm
for
Among

up

Loaning Federal funds for such
purposes—where
at

submitted

we

life

be obtained

market

Act

and

February

a

3.01% basis.

privately

developments.

National .Housing

S03sssea»

Law

market in next few

on

Reiterates opposition to municipalities issuing securities for

During the .year our Chairman
reported ver-

B

bonds

revenue

have

weight of the maturities
predominantly in the later years,
at prices yielding from a 2.75% to

with

prices of municipal bonds from May 1952 through June of 1953,

of this report follows:

Meetingo/the

The

Housing
Agency then
issues, which are

the

principally
which

issue.

Finance

purchases

by educational institutions. Reports steady decline in

of the Com¬
years.

text

the

Home

with the

mittee.
The

and

Housing and Home Finance Agency is sole un¬

stitutes directive under which

Bankers

Investment

Association

ding for

amendment of June 30 last of National Housing Act con¬

42nd Annual Conven¬

30, of the

annual

rate

That
for

such
each

minimum

Exchange

52 WALL

six-month

period shall be determined by the
Secretary of the Treasury by es¬

timating the average yield to

ma¬

turity, on the basis of daily closing

y
Room 831, Western

American Stock Exchange

STREET, NEW YORK 5
T
;—;
Philadelphia Office
.

Savings Fund Building, Broad & Chestnut Sts.

the

46

Volume 178

Number 5282

.

..

The Commercial and Financial Chronicle

29

(2389)

'

'•

,

*1 *

•.

.

:'

f"1

+

,v

SEC and State Laws Impeding Capital Flow
r.
On Dec. 3, the State Legislation
^.Committee
of
the
Investment

Bankers

Association

of

of

IBA State

whose Chairman is Paul L. Mul¬

"qualification" type contain

laney of Mullaney, Wells & Co.,
Chicago, 111., released its report

and

to

the

in

42nd

Annual

Convention

commissions.

state

cumbersome procedural requirements

unnecessary

place too much emphasis

Hollywood, Fla.

work by Mr. Frank Reissner
(Indianapolis
Bond
and
Share
Corporation, Indianapolis) in co¬
operation with Mr. Robert Fink,

Legislation Committee points out present securities laws of the

America,

approval of individual securities

upon

Reviews recent amendments to State blue

issues

The text of the Report follows:

and

There is

ments

wide-spread complaint
that

the

Fed¬

eral Securities

Act

the

and

securities laws
of

states

some

regulate
i

the

stment

n v e

banking

sky laws.

In Washington, a

,develop- adoption of the new law this year requirement for
interest to the rather than to wait at least an- assets of certain

were

many

specific

,

investment

o

the blue skv

it

of

was

.

California

Report

for

Illinois

While

Michigan
Minnesota

Secu¬

rities Act and

the state securities

disclosure

New

the

and

Jersey

North

securities, one of the principal
objectives of this Committee has

West

been

Wisconsin

obtain

the

adoption

securities laws which pro¬
vide that protection for investors
with a minimum of restraint on
the conduct of the securities busi¬
ness

by

reputable

securities

In

states

many

laws

type
and

unnecessary

procedural

place

phasis

upon

vidual

issues

too

require¬

much

approval

of

of securities

state

securities

urge

that
be

the present se¬
the "qualifica¬

of

contain

cumbersome

effort

of

State

the

in

em¬

indi¬

earnings

Virginia

+v.io

a

such

made

to

In

We

states

obtain

an

Georgia

curities

law,

i

ronnrt

complete

a

3nai

n

of

requirements
tne

as

a

con-

exemption.

new

embodying

this

se-

the IBA

through

year

work of Mr. Malon Courts

Co.,

with
of

state

Atlanta)

Mr.

State

rities

greater simplicity and uniformity,
greater emphasis upon supervision

ties law is

Jan.

law

a

cooperation

complete

was

1954.

1,

in

the

(Courts

in

the

sec-

recognized manual.
(5) Provides for the registration by "notification" of securities registered (or being registered) with the SEC and issued
by
seasoned
companies
which

a
.,

Fortson, Secretary meet specified requirements as
Georgia.
to average annual net earnings.

In Illinois

securities laws which will provide

of

elude

the

Mr.

joint

Gilbert

Mem-

committee

Osgood

in-

included Mr. Fred Blanchett
(Conrad Bruce & Company, Seat-

ernor

tie), Mr.,Sherman Ellsworth (Wm.
P. Harper &

&

James G. Dern

Son & Co., Seattle),

Mr. John J. Hasfurther (Blyth &

Co.,

Inc.,
Mr. Hemphill

(Blunt

new

secu-

adopted effective
This new securi-

In Alabama,
tbe

Alabama

an amendment to
Securities Law ex-

empts any security registered with
tbe

gEC

if tbere sbaP bave

Commission

a copy

been

Securities

Spokane); Mr.Waldo
(Waldo Hemphill In-

vestments, Seattle), Mr. Beardslee
Merrill
(Richards,
Merrill v&

Peterson, Inc., Spokane), Mr. Wal-

Prospectus

a brief statement regarding the securities and payment of the prescribed fee. In effeet, this amendment provides a
notification

procedure

(6). Provides for the use
identifying statements.
(?) Where balance sheet of
.

This amendment

under

the

was

the result of

work by a Committee of the Ala-

bama

Dealers

tee of the Pacific Northwest Group

of the IBA has recommended that
the

Association

under

the Chairmanship of Mr. Mortimer
A. Cohen (Sterne, Agee & Leach,
Montgomery), who is also Chairman of the Legislation Committee
of the Southern Group of the IBA,

steps

necessary

with

—all

.

of

plished
tive

which

can

without

protection

be

accom¬

lessening

of

effec¬

investors.

The

IBA model law of the notification

type provides the pattern for a
simple but effective law to achieve
those purposes.
At

the

wishes

to

operation
rities

or

year

In Texas, a bill was introduced

in

the

Texas

legislature
Securities

were

State

to

including provisions (1)
clarifying the exemption for unsolicited agency transactions, the
exemption for sales
who

owners

gaged
and

in

the

the

new

of

several

securities

to

the

adopted this

legislatures

laws

securities
year.

in reg¬
ular session this year in 44 states,
were

securities

UNDERWRITERS

and

a

in

law

that

of

Securities

DISTRIBUTORS

securities

an

In

Indiana,

an

amendment

to

described

therein

securities. Unfortunately,

the

Illinois

bill

em¬

the

Commit¬

Law

desirable

that

to

it

obtain

DEALERS

and

Revenue Bonds

RAILROAD, PUBLIC UTILITY, INDUSTRIAL
f

NATURAL GAS ISSUES

Municipal Department

oAllen

&

Company

Established 1922

GORDON GRAVES 6- CO.
Street, New York 4, N. Y.




by

Y
dis¬

the

in

of in cooperation with the Attorney Tex"a*s"and (3) liberalizing the
General of Alabama.
exemption for municipal and util-

State, Municipal

30 Broad

sales

of
identifying
state¬
prior to registration of the

STATE AND MUNICIPAL BONDS

Telephone WHitehall 3-2840

en¬

business

tribution
ments

tee) would make so many major
improvements over the
present
be

for

authorizing

Group attempted
adoption of a notifica¬
Illinois, the Com¬
finally concluded that it
be
impossible
to
obtain

recommendations

Illinois

behalf of

dealers in the secondarv

(2)

bodying the proposed new law
(as changed to incorporate many

would

on

not otherwise

exemption

registered

g
market,

are

States

year

the

that Act,

tion type law in

this

revise
to

embody
several important amendments to

obtain

mittee

to

Act

Legislation Committee of the

Central

to

after

ifsuer is required, makes balance the Indiana Securities Act, au- this bill passed the senate in
sheet as of a date within 120 days thorizing the distribution of iden- Texas, it was impossible to get
of fl!inS acceptable (present law tifying statements prior to
regis- final action in the House before
1r®.?Pfre® a baIan<:? sbeet dated tration of the securities Hesrriheri the legislature adjourned. This
the SEC and issued within 60 days of filing).
Continued on page 70
(8)
Eliminates the mandatory therein in Indiana, was the result
companies. Although

Committee adoption of such

the co¬
by the secu¬

commissioners

amendments

laws
L

this

acknowledge

states where

the

would

outset,
this

by seasoned

taken

session of the legislature.

basically of the "qualification"
type,
but
it
affords
and less emphasis upon approval
a
notification procedure for the
of individual issues of securities
registration of
securities
regisby the state securities commission tered
of securities dealers and salesmen

be

resubmit the bill (with perhaps
minor improvements) at the next

of the official

ondary market, of securities about Alabama Securities Act for all sewhich information is published in curities registered with the SEC.

Ben

of

bers

filed with the Alabama

ppn

model law of the notification type
with a few minor changes, was

adopted

Group of the IBA and

District No. 8 of the NASD.

of the Committee for their work,

u

by the &

commission.

all

States

^ Expands and clarifies the
tains a summarv of those amend- ?xemptl°n fofr
by a c0rp0ra"
mint,
t10^}0 -lts stockholders.
pill fn vmfr
Ipltain
( i Simplifies, clarifies and
fiw!
fVwSS broadeils the exemption for sales
of
the most ^ important
of thos_
AnnnnHiv

tral States

Legislation Ellis

Central

securities listed on principal exchanges and completely eliminates

amendments.

curities

ments

the

by registered dealers,

dealers.

tion"

Dakota

Oregon

of

ac-

Com-

included in the Annual

cp^i+Sc

South Dakota

to

the

(o\

protection
of
investors
against
fraud in the purchase and sale of

state

of

for the most part by a joint
legislative committee of the Cen-

on

^

New Hampshire

laws, i.e.,

full

detailed

A

work

for

submitted

ter J. Nicholls (Walter J. Nicholls
& Co., Spokane), Mr. Earl F.
(1) Expressly exempts munici- Wyllys K. Morris (McCormick & Waterman (Earl F. Waterman &
pa]
bonds
issued
by
a
public Co., Chicago) and Mr. Robert A. Co., Seattle) and Mr. Lyle Wilson
agency
or
instrumentality of a Podesta (Cruttenden & Co., Chi- (Pacific
Northwest
Company,
political subdivision of a state
cago). We commend the members Seattle). The Legislation Commit-

Indiana

general pur¬

of

Committee

Idaho

in¬

the

memo-

reasons

Simmons, Chicago),
(Smith, Barney &
Group of the IBA. A few of the Co:, Chicago), Mr. Arthur Grossmajor improvements made by the man (Straus, Blosser & McDowell,
new
Illinois Securities Law over Chicago),
Mr.
Earl
F.
Meyer
the present law are the following: (Blyth & Co.,
Inc., Chicago), Mr.

Colorado

capi¬

Federal

detailed

mittee

Arkansas

and

funds

the

the

°f

of

American

to

both

.

explaining the

count

Georgia

dustry.
subscribe

-

recommendations

by the industry.

provide

poses

the

Alabama

unnecessar¬

tal

of

an

,

before

years

PreParation

randa

Connecticut

Mullaney

two

Arizona

ily difficult to

we

laws of

the following 19 states:

thereby make

Paul L.

other

banking industry.

to

vear

unnecessary

degree

bill to provide
securities act of

new

?helegislature.^^ Members

this

a n

t

complete

the notification type, prepared by

appraisal
a
committee
appointed
by the
companies,
* Governor of Washington, did not
making
(9) Permits sellers who have
pass the legislature; but it is planany changes in the law. The ne- sold securities in violation of the
necj that the bill will be introAmendments to State Blue Sky
gotiations - with the Illinois Se- act to make voluntary restitution durpH again at the
next session of
Laws
curities
Commissioner
involved to the purchasers.
of the
There have been amendments many days
conferences and the
The work in Illinois was carried committee appointed by the Govof

in¬

dustry

there

In¬

of

diana.

a
v

Commissioner

Securities

by

Teletype NY 1-8909

NEW YORK 4, N. Y.

%

30

The Commercial and Financial Chronicle

(2390)

Growing Sans Financing

Aviation Industry
The

report of the Aviation

curities

Committee
Bankers

t

iri e n

America

of the

Association

the

York

in

earnings of air transport companies along with volume of air traffic and

of the report follows:

last year's report we
on

small
of

re-

the

volume
invest-

new

ment

capital
going into the
This

ness.

record

year s

has been
more

even

meager,

The total
all

of

fi-

public

of

nancing
airlines

and

aircraft

manu-

facturingcomKnowlton

panies in 1953
been

has

3

$4,-

consisting of the follow-

indeed

is

Airlines

Bonds

debs.

or

Manufacturing
Companies

None

None

equipment

trusts

stock-

None

e

$460,556

issue

of

the

securities

of

a

new

financing,

involving

deben-

How have these needs been met,

of Industry

not

investment

the

through

as

in

1952

18.3%.

in

In the

case

of

manufacturers report-

jng for the first nine months, the
have risen from $3,105,000,000 in 1952 to
$4,489,000,000 in
an

increase of 45%.

growth of the airlines has
accompanied I by a tremen-

dous increase in capital equipment, mostly represented by new
and faster planes.
The growth of the manufactur-

ing branch of the industry has not
necessitated a comparable increase

have

been

able

finance

to

working

enormous

payments

made

pal

customer, the United States
Government, and by bank bor¬
rowings.
manufacturing side

erating net has shown
absolute
and

the picture the great question

ap-

Possible for the companies to
with

capital

terms

of

op-

resources

so

done.

There

has

Department
in

the

will

matter

be

of

facturers
their

to

substantial

a

terms

to

credit

the

ing income

meant

This

has

in its past

the

for this

reason

to keep up

with the rise in

is the down-grading

gross revenue

of the price of the product sold,
or

tourist

July

Oct.

Change

Table I
Standard

Poor's

&

Indices

(1935-9-

1951

1950

IOOI

July

Jan.

Jan.

168.6

172.8

136.9

192.1

197.6

185.5

183.4

+36%

177.8

157.5

181.1

187.0

206.6

195.4 214.9

+81%

107.5

105.6

91.2

96.8

97.4

102.5

105.5

247.4

242.7

336.8

323.4

376.3 328.6 352.8 315.3 231.1

183.0

175.5

199.5

187.1

201.0

July

Jan.

135.1

138.2

118.8

148.8

87.8

'■"Composite Index—
480

t9

%

stocks

aircraft

mig.

aircraft

cos

mfg.

__

cos.

Of

composite
25

Air

air

transport
v

cos...

transport

—

__

:—

industrials,

rails,

20

utilities.

40

Wright,

Douglas, Lockheed, Martin, North
Eastern, Pan American, TWA, United.

tBoelng,
American,

171.0

173.0

170.0 153.0

j
Consolidated
Republic,

'

,

Vultee, CurtissUnited,
tAmerican,

aggregate market ^alue of common
of shares of each issue used.

Standard & Poor's indices computed on

NOTE:

stocks

included,

i.e.,

the

price

times

the number

Table II
*8

too

the

Transport

Companies
Pel1 cent

not

Change

11/13/53

11/13/52

161/8

Average price

1'3%

—14%
+ 36%

Average earnings per share

$2.02

$2.75

Average dividend

$0.45

$0.46

+

2%

1'Average dividend

$0.72

$0.74

+

3%

$13.45

$15.20

(12 months ended

9/30)_

Latest average book value-_

8.0

Price

earnings ratio
Average yield
Per cent payout-1
fAverage yield

____________

5.0

2.8%

4.7%

33%

24%

120%

92%

gener¬
^American, Capital, Eastern, National, Northwest, TWA, United
and
of

assume

attendant

Western, accounting for about 85% of total operating revenues
13 major domestic trunk lines.
fExcluding three companies

the

not

paying

dividends.

.

on

NOTE:

AH

averages

arithmetic.

pay¬

y

manufacturing companies, for the
reason
that theie are relatively
few senior securities outstanding.

the

aviation

From

and MUNICIPAL SECURITIES

this table

marked

a

last

with

compared
market.

INDUSTRIAL, PUBLIC UTILITY, RAILROAD

four

the

TRIPP & CO.,

have
years

general

between

the

STATE

performance of airline stocks and
that

of

the

stocks

action

of

the

former

and

•

MUNICIPAL

aircraft

companies.

the

unimpressive

of

INC.

will notice

one

contrast

manufacturing

UNLISTED TRADING DEPARTMENT

industry

the

over

as

PUBLIC REVENUE BONDS

The

has

been

compares

un¬

favorably with that of the Standand

and

indices.
be

Poor's

general

market

The contrary is shown to
of the aircraft manufac¬

true

turing stocks, whose performance
the

on

ceeded

Laurence M. Marks & Co.
York Stock

Exchange

ket.

upside
that

has

of

the

Both records

greatly
general

are

a

Tables II and

NEW YORK 5

III

show

a

TELEPHONE:

com¬

year

ago

in

HA

respect to market

price,
earnings,
price-earnings
ratio, dividends, yield, percentage
pay-out,

book

value

book value ratio.

and

TELETYPE:

of the

industry, of the situation today and
a

Teletype N.Y. 1-344

40 WALL STREET

tion of trends noted in your Com¬
mittee's report last year.

Exchange (Associate)

Street, New York 5, New York

ex¬
mar¬

continua¬

parison, for both branches




/

—37%

17%

4.1%

% of book value

i

+ 13%

3.3%

22%

tPer cent payout
Price

manufac¬

asked to

costs

Air

analyzing the action of avia¬

fared

Telephone HAnover 2-9500

+14%

of

cos.

composite

*420

117.0

stocks of the. airlines and aircraft

of

49 Wall

%

1953-

1952

July

Jan.

Table I shows how the represent¬
ative stocks in the two branches

Stock

These

take the form of coach

un-

most part confined to the common

:\

American

half

failure

tion securities the field is for the

Teletype NY 1-1110 & NY 1-1111

Z:

Members New

first

Action of Stocks

New York 5, N. Y.

Telephone HAnover 2-5000

the

equally important factor in
of net operating in¬

come

unit

in

\

Exchange
In

Wall Street

is

substitute for such

a

ments.

11

in

decline

9.7%

Exchange

Stock

An

the

per revenue passenger

What is the

policy of progress

be

aditional

finding

been

that

or

turers should

Stock

observation

pro¬

your

payments,

American

their

implying a belief on the
Committe that the

as

of

ous

Members

increase

or

government

York

to

1953.

anc* Per available seat mile. i.e. reductions in fares.

their

on

financing of aircraft

duction.

part

New

fully

more

borrow

future play a more important part
in

Members

manu¬

capital.
In this possible
development lies a hope that the
investment
banker
may
in the

Asiel & Co.

1952

of

expressed in net operat¬

as

tion burden from 8.5% of operating revenue in the first half of

pay¬

equity

Since

ancl

liberal

less

utilize

ability

own

Brokers and Dealers

rapid build-up of larger
expensive fleets. Also,
significant fact,

more

dollars

been

progress

ments, thereby forcing the

Servicing

and

small in relation to the volume of
business

/

the

to

gain in

no

total

recent indication that the Defense

\

p re¬

growth in operating revenue and
revenue passenger miles, the op-

of

pears to be whether the government will continue to make it
erate

IV

shown a tremendous and steady

%

the

greatly increased in dollar
during the past year, due

of the airlines for three successive
12 months periods up to the first there has been a tendency during
of September, 1953.
the past year for the industry to
From these statistics there shorten the depreciation period,
emerges the unpleasant fact that thereby increasing the deprecia-

re-

their princi¬

by

the

volume

sents the operating performance

their

capital

quirements out of liberal progress

On

Table

Also

labor.

and

analyst is mindful of the enor¬
mous depreciation charges in the
airline industry.
These charges

Trends

Airlines:

have been living
increasing cost of

we

of

materials

other

although the airline industry has

market?

sales

company

This

..

.

if

aircraft

been

organized to finance the
cquipment needs of an airline,

has

The

the

he

spite of
while some of the weaker airhaving had so little recourse to the lines have had difficulty in fimarket for new long-term capital,
nancing their equipment desires,
both the transportation and manu- most of the
major airlines have
facturing branches of the aviation been able to finance their capi¬
industry have shown continued tal requirements out of cash earn¬
growth in terms of volume of ings supplemented by bank bor¬
gross business.
In the case of the
rowings. Reserves providing for
13 major trunklines, gross operrapid
depreciation
of
flight
ating revenues have risen from equipment have made a major
$631,000,000
in
the
first
nine contribution to cash earnings.
months of 1952 to $746,000,000 in
'
The aircraft manufacturers
the comparable period of 1953, an
Again

The

The only other public financing
the aviation industry was an

for

'

Growth

None

3,384,434

that

activities."

1953,

None

$300,000

Preferred

Common stock..

fortunate

banker

Industry

as

time

a

have

facilities because enorexpansion had already

plant

mous plant

*akcn place during the war. But
larSe sums have nad t0 be avail"
not 'h9(J to depend in recent years able
f°r the acquisition of che
\tiorTindustry"as*an"im^ bu£e inventories necessitated by
pof-tant source of his underwriting the product output.
It

jnvestment

14

Aircraft

>n

totalled $1,550,000.

increase of

ig:

Conv.

preferred stock and common in

stock,

busi-

aviation

? 44,990,

in

concerning aviation industry.

matters
tures,

marked

Hugh

Reveals

City, the Chairman of

text

our

industry and the action of aviation securities in stock market.

tion

Committee.

The

relating to growth of avia¬

penses,

of

was

lywood, Fla., on Dec. 2, by Hugh
Knowlton, of Kuhn, Loeb & Co.,
ISfew

Aviation Securities Committee presents data

IB A

presented
to
the
Convention meeting in Hol¬

42nd

satisfactory showing? In seeking
it one immediately thinks of ex¬

Se¬

Invest-

Thursday, December 17, 1953

...

sr

1,

price-

y

2-5252

NY

1-2030

Volume 173

Number 5232

fares, and to a
family-plan fares.
The
this

figures

reduced

pressive.

The Commercial and Financial Chronicle

.

traffic

degree,

growth

the

on

traffic

fare

from

.

An

They show

of 341%

1952,

lesser

.

show

of

riod

it is

believed

that the

total

lines

in

will

the

rise

mark.

fare

Table

the

percentage is

is considered

it

Bache

shows

fare received from the coach and

the

percentage

sharp increase in
of this class of

Continued

on

page

75

BROWN,

Hurry,

&

Inc.,

R.

glen*
New York

a.

&

BROWNING,
Commission,

ROBERT

BIVINS,
Chase

•

A.

Bank, Boston

M.

11/13/52

York

New

.

HENRY J.*
Spartanburg

BRYAN,
.

BLAKE,

Jr., WILLIAM O.
O'Neal, Alden & Co., Louisville

JOHN L.
Eaton & Howard, Boston

.

H.

Boston

M.

Byllesby

Blair,

Philadelphia

Average price

273/4

+ 21%

$3.85

$5.63

$1.55

$1.95

$25.40

Average earnings per share
(latest available 12 mos.)
Average dividend
Latest

book

average

Change

227/8

$28.00

+46%
+ 26%
+ 10%

_

value

cent

Price

payout-

_

90%

_

99%

_

The

Incorporated, Boston

ALLYN, ARTHUR C.
a. C, Allyn & Co., Inc.,

—18%

JOHN W.
Allyn & Co.,

ALLYN,
"

-

C.

*BelI, Boeing, Consolidated Vultee, Curtiss-Wright, Douglas,
Fairchiid, Grumman, Lockheed, McDonnell, North American, North¬
rop, Republic and United.
All

averages

Coffin

arithmetic.
IV

Operating

revenue

(millions)

expenses

tmillionsi

operating income

Revenue

Load

-% change from-

revenue

seat

Operating

+41 %■

$861

+19%

—17%.

$108

+20%

+49%
—0.9%

14.98

+20%

+46%

22.71

+36%

12.46
16.66

+10%'

74.8%

NOTE:

to

expenses

4.5c

5.7c

5.8c

+

2%

—

4%

—

5.8c

+

4%

2%

LeROY H.
Harriman Ripley & Co.,

4.0c

+

—

1%

,71c

avail¬

calculations

predicated

without

—31%

.49c

.71c

„

effort

to

on

total

segregate

.47c

operating

—

—34%

4%

and

ex¬

revenues

and

revenues

non-passenger

New York

New

Corp.,

York

WARREN

thereto.

D.

|

New York;

L.

Associated

Chicago

/

CARBERRY, PATRICK
Wall Street Journal, New York

Detroit

J.

New

MARION

CARDWELL,

S.*

Jackson

York

J.

B.

Hilliard

Curtis,

&

CARHART.

John

E.*

New York

Lee

&

Louisville

Son,

>

H. WHITFIELD*

C.*
Co.,

&

Chicago

LEE W.

Carroll

W.

Savings Bank, Chicago

Jacquelin, New York

Nuveen

A.*
New

&

CARROLL,

Trust Company,

Jr.,

FRANK

CARR,

&

H.*

CHARLES A.*

CAREY,

Carlisle

Press,

'

CHARLES A.

Lee Higginson Corporation,

JOHN

BROPHY,

Association,

Bell, Gouinlock & Co., Toronto
CAPEK,

York

Guaranty

York

L.

Bankers

Washington

New York

Co.,

BROOME, ROBERT

H.*

CAMPBELL, IRVING H.*

H.*
Putnam & Co., Hartford

HOLLIS*
Tindall & Company, Atlanta

& Co.,

Newark

Continued

York

on

page

WILLIAM M.*

BAER,

Table V

New

York

DAVID

GORDON

Harris Trust

Webber,

BROOKS,

Co., New
Jr.,

Investment

JOHN

Paine,

MURREY*

&

DONALD*

&

CALVERT,

Boston

Company,

Fenn

•

First of Michigan Corporation, New

ERNEST R.

Phelps,
BRICK,

AUSTIN, J.
W.

Dallas

WHITNEY

FRED C.
Moseley & Co.,

Motor

Barth

J.

CALLAWAY,

Jr.,

BREWER, ORLANDO

Boston

ATWOOD, CHESTER A.
L. P. Rothschild & Co.,

J.

S.

Ford

ATWILL, Jr., WILLIAM*
Atwill & Company, Miami Beach

,

P.

S.

Philadelphia

C.*

Henry Herrman & Co., New York
CALDWELL,

Nashville

Co.,

Howard,

Philadelphia

W. KEEN*

Sherrerd,

CAHN, Jr., WILLIAM M.

D.*

C.
&

W.
&

BYRNE, WILLIAM D.*
Byrne & Phelps, Incorporated, New York

Lord, Abbett & Co., Atlanta

ADDISON

J.

&

BREECH,

Orleans

Dickson & Co., Charlotte

S.

R.

—32%

Co.,

BRAYSHAW, DONALD B.*

Crane, New

P. S. Moseley & Co.,

ATKINS,

—33%

.70c

1.05c

-

trends

J

Inc.,

W.*
Arthurs, Lestrange & Co., Pittsburgh

revenue

per

&

ARNOLD,

5%

+

3.8c

5%

Eaton

BRAUN,

WILSON*

H.

Arnold

Trust

Co., New York

Bradford

C.

BRADLEY,

Nashville

GEORGE

Hanseatic

York

ARNOLD,

ARTHURS,

available

mile

allocated

4.3c

revenue

per

Derivative

—4%

—2%

6.5c

&

Boyce, Baltimore

J.

C.

HOWARD*

EDMUND

BYRNE,

HUGH*

BRADFORD,

Jr., WILLIAM J.

.Equitable Securities Corp.,

'

3.8c

emphasize

3%

&

Treasury, Washington

Byrne & Phelps, Incorporated, New York:

Southwestern Securities Company,

R.

APGAR,

New
—

York

New

Deposit

EL WOOD

BRADFORD,

J.

ANDERSON,

Bros.

Hallgarten &

York

New

Butcher

PREVOST*

C.

Stein

BOYNTON,

Incorporated,

Group,

ARMSTRONG,

66.0%

6.6c

6.8c

mile

seat

$970

+22%.

15.12

—

per

•

revenue

;

expense

+18%

available

per

le

Distributors

+50%

10.23

4.5c

m

operating income

penses

+19%

+24%

$91

——

passenger mile
Net
operating income

able

$811

67.7%

per

per

expense

passenger

1950-1

$720

mile

Operating

seat

(billions)

mile
revenue

1951-2

$578

;

passenger

Operating

1952-3

1950-1

$109

—

(billions)——

miles

seat

factor

Operating

Net

miles

passenger

Available

1951-2

BOYCE,

C.

HERBERT

ANDERSON,

$687

(millions)

Mercantile-Sale

EDWARD C.
Anderson & Strudwick, Richmond

from

Net

New York

III,

BUTCHER,

MEREDITH*

C.

New York

RANDOLPH

Butcher & Sherrerd,

FRANCIS B.
National Bank,

Chase

Co., New York

City Bank, New York

BUTCHER,

R. H. Moulton & Co., San Francisco

BOYCE,

ANDERSON,

%, change

Operating

Boston

Kuhn, Loeb & Co., New York

Years Ended Aug. 31

.

W,

National

Baltimore

JONAS

Bullock.

United States

Bank,

Development

BORDEN, ROBERT W.

New York

New York

Street Journal,

ANDERSEN,

...

Summary of U. S. Air Transport Operations, Major Trunk Lines

1950-1

Incorporated,

Burr,

Calvin

Rico

Puerto

Bank,

K.*

BULLOCK, HUGH*

BUSH, ROLLIN

•

ANASTASIA, A. A.
Wall

Table

&

E. P. Hutton &

York

Columbus

BOWMAN,

AMES, AMYAS
Kidder, Peabody & Co.,

RICHARD

BURGESS,

Chicago

Inc.,

.

Atlanta

BUECHLER,

'-

Company,

Government

*

Incorporated,
-

BONNIWELL, D. R.*

Chicago

ALTGELT, Jr., E. J.*
Harris Trust & Savings Bank,

-

Ohio

EMMONS

Rollins & Co.,

BOLTON, FREDERICK j.
Lentz, Newton & Co., San Antonio

AMAZEEN, EDWARD S.*

NOTE:

LAWRENCE

H.

Cleveland

The Citizens So Southern National

Eastman, Dillon & Co., New

W.

ROBERT

.Coffin & Burr,

A.
_

Jr.,

%

Plain Dealer,

EUDD, Jr., JAMES S.*

W.

BOLES, EWING T.*

35%

% of book value

Bank, Cleveland

ERWIN

Investment Bankers Association, Chicago

Inc., Chicago

New York

Allen-& Company,

ALLISON,

7.0%

40%

_

Per

4.9

6.8%

BOEHMLER,

BOGERT,

•

6.0

earnings ratio
Average yield

National City

York

ALLEN, HERBERT
.

Price

New

York.

BRYCE, T. JERROLD*
Clark, Dodge & Co., New York

BLYTH, ROBERT B.

GUSTAVE A.
Marachb & Co.,

RAY
E. Ray Allen & Company,

allen, e.

Western New

York

New

& Co.,

of

JOHN E.

Cleveland

BRYANT,

BLAKE, SIDNEY S.*

ALDRICH, GEORGE D.*
The Parker Corporation,

Co.

Buffalo

BRUCHLOS, WERNER C.
; The Bond Buyer, New York

Co.,

WALTER F.

Goldman, Sachs & Co., New York

Metropolitan St. Louis Co., St. Louis

ALDEN,

Granbery,

.11/13/53

Denver

HOMER*

Marine Trust

Bank,

Jr.,
&

Law

BLAINE,

AINSWORTH, WALTER W.

A.

National

BLACKFORD,

AHEARN, JOHN W.*
Rockland-Atlas National

Companies
Per cent

F.*

Boettcher & Company,

H.*

Exchange

&

ALEXISSON,

Aircraft Manufacturing

Hill

Malvern

&

Incorporated,

Company,

York

Volume of Domestic Trunkline Passenger' Traffic Carried at Reduced

New

Fares and at Standard Fares During Last Four and One Half Years

BAGGS,

»

miles

Remaining
Total

%

reduced

reduced

traffic

passenger

passenger

at

rate

rates
——

miles—
traffic

_

of

miles

1950

1951

1952

1953

(OOOt

Passenger

HENRY McK.
The Pennsylvania Company, Philadelphia

1st 6 mos.

Calendar Years1949

(0001

(000)

(000)

ANDREW M.*

BAIRD,

(000)

1.703,108
2,115,306
3,268,290
1,652,250
6.052,900
8,095,418
8,852,499
5,289,603
7,766,008 10,210,724 12,120,789- fr,941,853

741,645
5.820,935
6,562,580
%

total.
—

11.3%

'

••

21.9%

.

Becker

G.

A.

"

Si Co.,

Reynolds

PHILIP

BAKER,

Weld

White,

31.0%

Inc., Chicago

& Co.,

BAKER, Jr., JOHN D.*

'

27.0%

20.7%

Co.,

&

York

New

D.

Richardson

BANCROFT, E.
,

York

New

D.

RALPH

BAKER,
James

&

Underwriters—Distributors

Winnipeg

Sons,

M.*

Stranahan, Harris & Company, Toledo
.

ARTHUR L.

BANEY,
E.

Stein

'

/

.

'%•.'

'■.*

.

■

<

■ v.

Members

K.*
Philadelphia

WILLIAM

Jr.,
&

Bros.

/

Baltimore

Jones & Co.,

R.

BARCLAY,

Boyce,

American Stock Exchange

New York Stock Exchange

S.
Barcus, Kindred & Co., Miami
JAMES

BARCUS,

MARION

Mrs.

BARKSDALE,

and

Other Principal Exchanges

HORNER

Lynchburg
F. SEYMOUR*
Brothers &Co.,

BARR,
Barr

New

NEW YORK 5, N. Y.

BROADWAY

120

York

CHARLES S.
Harry Downs & Co., New York

BARRINGTON,
■

Underwriters and Distributors

WILLIAM R.
& Co.,

BARROW,

EUGENE

BARRY,

Investment Securities

BARTOW,

FRANCIS

Jr.,
Leeds

Bartow

Offices in:

P.*

New York

& Co.,

Shields

Shreveport

Leary

Barrow,

of

&

D.

New

Co.,

PHILIP K.
Wood, Struthers & Co.,

New York

Jack

W.

E. Hutton

Baxter,

DANA

BEAVERS,
Trust

J.

STREET




YORK

5,

N. Y.

Co.,

Santa Rosa

Hagerstown

Detroit

M.

Beissner & Co.,

RUSSELL

Greenshields

&

Houston

Direct Private Wires to

D.
Co.,

All Branch Offices

Montreal

BENNETT, CHARLES R.
United

1

AH

States

Investor,

Detroit

Boston

BERGMANN, CHARLES L.
R. W. Pressprlch & Co., New York
BESSE,

HARRY W.
Exchange, Boston

Boston Stock
*

Maryland

C.

HENRY

BEISSNER,

BELL,

Raleigh

&

Morbney,

NEW

Vineland
Santa Cruz

Winston-Salem

Atlanta

Orange

Morristown

San Mateo

North Carolina

Jersey

East

Cleveland

Georgia,

of

Lerchen

Watiing,

M.
Cleveland

New

Salinas

Durham
Co.,

&

CHARLES

BECHTEL,

WALL

Chicago

KARY

Company

Sacramento

Chicago Heights

F.*

Miller

Hayden,

42

Incorporated,

Williams & Co.,

BAXTER,

York

Illinois

CHARLES

Jr.,

Scranton

Oakland

New York

& Co.,

York

BAXTER,

Lancaster

Carmel

Syracuse

BATEMAN, FRANK B.
Blair, Rollins & Co.,
New

Allentown

Berkeley

Rochester

earl k.

bassett,

Philadelphia

San Francisco

Brooklyn

Nashville

& Co.,

Bass

M.

New York

M.

BASS, Jr., JACK

Pennsylvania

California

New York

York

BARTOW,

Carl M. Loeb, Rhoades & Co.

-

.

Pressprlch & Co., New York

BROWN, DONALD
HENRY R.

BISHOP,

Co.,

CLARENCE

Table III
*13

BARRETT*

W.

Fordon, Aldinger & Co., Detroit

that in 1952 the average passenger

also

Bingham, Walter
Angeles

Los

Washington

When

category.

only

BINGHAM, CURTIS H.*

M.*

Blyth & Co., Inc., Boston

Securities

words, nearly half of
the present growth of passenger
traffic
is
in
the
cheaper
rate

this growth in absolute terms but

the

CHARLES

ABBE,

other

In

billion

not

pe¬

ADAMS,

classes

shows

V

year

acheson,

air¬

four

reduced

above

the four

through

increasing.

1953

passenger traffic of domestic

in

is believed that this

from 741,645,000 to 3,268,miles. This in¬
is continuing in 1953 and
passenger

crease

In Attendance at IBA Convention

in all

increase

the

of

1952, reduced fare
traffic has been responsible for
45%
of the total increment.
It

of

or

290,000

traffic.
this table will

31

passenger

of

traffic of the domestic

lines

tfunk

increase

an

1949 to the end

that

passenger

im¬

are

total

to

analysis

(2391)

Denotes

Mr.

and

Mrs.

Lincoln

-1

•

•

Buffalo

Omaha

•

•

and

to our

Correspondents in

Indianapolis

Des Moines

•

•

St. Louis

•

Sunbury

Sioux'City— Toronto, Canada

35

32

The Commercial and Financial Chronicle

(2392)

...

Thursday, December 17, 1953

Outlook for Railroad Securities Clouded
Annual Convention of the Invest-

Railroad Securities Committee, in report to the 42nd Annual Convention of
.01
a
•
ac
a
: J
,1
1.1
,
1Qe,
the Investment Bftnkers Associfttion ot AmcriCE^ notes that although lt/5w

tarUBHno^fywo^Flal0 waT6™-

railroad earnings increased, not all carriers are sharing equally in the relative

The

report of the Railroad SeCommittee to
the 42nd

eurities

,

.

min!dCharlese
W.

levProsperity. Finds
of e,.R

Tho
i ne

ni

fort

lexi

oj

th*

follows

Ponnrt

me

nepuri j

o.

^ committee

^

This report

curities

of the Railroad Se¬

mittee will be

Appraised in terms of
property investment or in terms of purchasing power, railroad earnings are
still inadequate.
Also, under Inthey

being to
recapitula-

t i

t

impor-

road securities

during
a

tax

the

Charles L. Bergmann

1 9 5 4.

Central

Railroad, will address

of

business

the

42nd

sessions

Convention

and

of

this

dress

should
an

or

from

therefrom, and
additional comments

excerpts

possibly by

probably

gratified

roads

basis
pears

of

.

this

likely

On

country.

estimates

that

gross

it

are

snaring

which

of

level

equany

in

prosperity,

operating in the heavily inEastern
Region are

hampered earnings-wise by

with

many

servatively capitalized companies
seemingly fail to appraise their
responsibility to their stockholders and the reasons they advance
are not entirely convincing. A
maximum degree of investor interest m railroad securities can
be achieved only by a combination
of adequate protection of bond-

om improved conditions,

™>na: raised^Dilliops ot doll^s, the

Ja*{™ads

a group of aggressively interd /ecurity holders can be a
ap~POwerfuU influence in promoting
m0^e enlightened regulation and

o^

fa™L

sale of,equiipment trust certifi- modernization of our national
•'
havp snent ahout $8 hil- transportation policy.
It is in the
down of business activity would
modernizing their road and ?i?
interests of the nation that
have a definite bearing on the
eamilnffl de
J radroads be permitted to pervolume of railroad traffic and
Sedation fundT and workins fo5? ?e ia/k re^mre^ of them
earnings. However, we are of the |£ec ation
without undue governmental re-

opinion that a modest decline in
idinuau

rpmiir#»H

part by additional

the most

for

fpaip ^nendiW? ThI

vuiumc

operating economies and thus net
earnings need not be seriously affected on this account.

«

.

b

tb

issuance of

a

wa?

from

nart

substantial vol-

eclu|pment

ume

bal

funric

certifi-

trust

categ and conditional sales

0bliga-

s^aints and handicaps that too
X,

v

Changed conditions require new
aPProaches. This committee proP°-Ses to con^nue hs efforts to

^™lt?b0Uiiin.rd+ehd chanSe and

A more serious threat to lail- tions. However the issuance of ear"nestly solicits the cooperation
other sec- road earnings is posed by the de- these types of obligations was par- a
assistance of the entire investtions of the country.
Thus, as a mands of railroad labor unions for tially offset by the retirement of ment banking fraternity,
group, their earnings and rate of increased
wage rates and other Qther long term
debt
bearing
Respectfully submitted,
problems which do not confront

,

of current

as

dustrialized

the
earnings ot the Class I rail.

1953

ac-

emphasized is that not

relative

Those

this committee.

be

carriers

the

Many railroad security holders
are

less than

reservation

further

A

report

businessmen to anticipate a slightly lower level of business activity

Not the

trast with most others, was not an holders' iinterests and a philosophy
that the stockholders should a so
be permitted to benefit financially

allow-

the

reported.

the

be supplemented by his ad¬

may

in

figure would be approxi-

mately $150 million

one

re-

Looking ahead, the outlook for

such securities.

dencJ Policies of railroad managements are unduly conservative.
Managements of some very con-

1954 is not clearly indicated at important seeker of capital in our
the present time. There is some public security markets. In the
tendency
for
economists
and year 1953, during which corpora-

the in 1954 than prevailed during 1953
but forecasting is not within the
province of this committee. It is
that the net sufficient to comment that a slow-

included
estimate

we

income

the

result

*.

If

accounts.

amortization

were

counts

White, President of the New York

but

reflected in the

are

accelerated
ances

deducted

account

savings which

income

ported

potential

William

Mr.

Commission

not

are

income

tax

therefrom

of

developments

during

the

income

summary

appraisal

purposes

from

1953 and

some

Commerce

tprstate

accounting procedure, accelerated
amortization charges allowed for

affecting rail¬

year

railroad

on

£

*

u

in

Sng^KuroaV^
^mfnyTnsLteerthafrne'mvl-

is a problem which should not be other forms
of transportation
regarded lightly by anyone con- which is in prospect. It is a source
cerned with the maintenance of a of both disappointment and constrong national transportation sys- cern that more progress was not
tern.
The recent change in the made on legislation during 1953
basis of dividing rates between and it is to be hoped that a greatthese carriers and those operating er measure of progress may be
in Southern and Southwestern experienced during 1954.
territory is only a minor conDealing now with finance rather
tribution to the solution of the than earnings, it may be noted
oroblem
v
that the railroad industry, in con-

factors

t

a n

the

of

o n

seem.

return

time

more

jn

the favorable financial results are not all

limited for the

a

stated

the 1952 annual report,

Com¬

dence

clear outlook for 1954 at present time.
A

net income may approximate the
1942 record of $902 million. How-

3

Dec

on

no

Co., New York

Pressprich &

City

road bonds and has served to deYelop ? ®*ater degree of confi-

„

carriers

the
ap-

return

revenues

will approximate $10% billion and

in

operating

on

property investment are

below the industry average. This

requested

were

granted in full the cost to the carriers could be well over $1 billion
and the additional cost
tional work benefits

represent

sought

-

wou

large

further

a

of te

d

sum

which cannot be estimated in pre-

For your
guidance it might be noted that

cise

figures at this time.

each

cent

one

hour increase in

an

rates cost the Class I railabout $30 million annually
before taxes.
With this figure in
wage

roads

HIRSCH &

mind

Members New York Stock Exchange and Other

Exchanges

the

of

culation

make

can

©ne

higher ra?es

^ough
debt

interest. In conse-

1952 the

of tbe Qass i iine haul

rierg

.g

es£imated

modest

f jxed

£be
lion

charges

increase

have

car-

have

to

creased ordy $553 miiiiori.
0£

in-

in spite
in

decreased

in

perjod hy about $81 milabout 15%

Tbe improved physical

\

^

...

SECURITIES

COMMITTEE
Charles L. Bergmann, Chairman
R.

W.

Pressprich & Co.,

New York

debt,

same
or

RAILROAD

totaflong15 term

and

George A. Barclay

Kean, Taylor & Co.,
New York

fi,

Pa»cial Position of the railroads
18 reassuring to investors in rail-

Clarence W. Bartow
Drexel &

Co., New York

quick cal¬

a

approximate cost

of any

UNDERWRITERS, DISTRIBUTORS AND DEALERS

settlement of hourly wage
rates. However, it is likely that a
protracted period of negotiation
may take place before a final set¬
In such event

tlement is reached.

is

there

NEW YORK

WASHINGTON

—

that

BALTIMORE

—

LONDON

further

the

possibility

changes finally agreed
upon may be made retroactive for
some
period. If the final settle¬
ment imposes too great a burden
on

any

the carriers there is

reason

to

DISCOUNT
CORPORATION

believe they

Representatives* Offices: GENEVA—AMSTERDAM

will petition the ICC
for offsetting relief in the form of
higher rates. This leads to some
about

comment

the

current

level

OF

of railroad rates.

The

temporary freight rate in¬
granted in April 1951 orig¬
inally
scheduled
to
expire
in
February 1953, were further ex¬
tended to February 1954 and have
creases

now

The fact that these

are

tem¬

increases is not conducive

porary

to

long range planning by railroad
In addition, being

management.

temporary,
surcharges

Established

entail

1856

and

from them.

(Sherry-Nethertond Hotel)

•

DETROIT

•

PITTSBURGH

•

GENEVA

•

reaching

MIAMI BEACH

*

CORAL GABLES

•

HOLLYWOOD, FLA.

•

.

Distributors

of Corporate Securities




of

minimized.

application and
decision should be

A bill

now pending in
Congress seeks to provide a for¬

mula

Underwriters and

Bankers Acceptances

tween the date of

Plaza 1*2220

CHICAGO

desirable

sought to offset higher
it would seem

operation

to get away from
granting tempot-ary re¬
lief.
Further, if a new rate pro¬
ceedings is undertaken it is a ma¬
jor concern that the time lag be¬

BOwiing Green 9*8420
FIFTH AVE., N. Y.

are

of

decisions

New York 4, N. Y.

United States Government Securities

If further increases in

most

Exchang* and othor

hading stock and commodity oxchangos

711

of

expense

which reduces the benefit derived

costs

60 BEAVER STREET,

amount

accounting

rates
Mombort Now York Stock

Dealers in

they are applied as
on base rates and thus

substantial

a

clerical

H. HENTZ & CO.

YORK

extended to the end of

been

1955.

NEW

minimizing such time
lags and we strongly urge its en¬
actment

into

possible

moment

law

at

the

after

earliest

Congress

i convenes.

The so-called

only

Fifty-Eight Pine Street

for

"Time-Lag Bill" is
of several pieces of legis¬
affecting the railroads and

one

lation

New York 5, N. Y.

Volume 178

-Number 5282

.

The Commercial and Financial Chronicle

..

Todd Cartwright

ingredient if still further progress salesmanship as they have met
is to be made.
equally challenging problems in

Sampson Rogers, Jr.

Sweney, Cartwright & Co.,

Hutchinson

McMaster

Columbus

&

(2393)

Co.,

Chicago

Rowland H. George

man' will

Dick

New

Estabrook &
Theodore

V.

Thors

Kuhn, Loeb & Co., New York

Co., Boston

New York

Vilas

&

more

Wendell W. Witter
Dean Witter &

Co.,

San Francisco

Hickey, New York

not

voice

the

of

the

is

is

by

Progress oi IBA in 1953
about.

The

unfailing courtesy and
afforded me
everywhere I went, the magnificent cooperation I received, the great
hospitality

community of interests evidenced
by our Canadian members and
fine

the

But

these

of

they

programs

vancing.

ad-

are

will hear much

you

things in

detail

this

at

convention.
We

,

can

tribute'to
ment and

not

pass

without

on

the leaders of

a

govern-

industry who have made

great sacrifices of time and schedtile
us

be

to

our

speakers.

They do

great honor and again we like

to think the presence

©f such stature and

offices

of

our

here of

men

ability in high

nation

in-

of

and

indication of their
understanding of the important
contribution we are making to the
is

dustry,

free
tern

©f

an

competitive
that

has

enterprise
this

made

nation

a

down
year

in

fifty-three

history

as

of American

known.

We

have

be

is

the

our

Dr;cb

be

jj.
ence

for

our

nation.

a

jr

and Allan W

to

rpciHPnt

hi

Yor^

w.

Reglnald

a^mifted

be

kExchsmre

st

offi

Betts will

general
th*>

in

partner-

firm'*

rewarciing experi- Walker

With Walston & Co.

clearly than

Swi

P

will

withdraw

from

ner

Walston

1 oT*

^ ^0,> ^ ®

JU ffe Meama s Ari»ule

o

greater need of selling to the
people

and

the world,

higher

It

standard

standards

better

and

is

is

which

the

of

ing

sentence

opinion

part

of

of Tucker,

Anthony & Co. and

for 25 years a partner of R. W.

plrf1' Pressprich & Co.

Mr. Pressprich

dismissing

suit

the

Just1^ agai^j

Railroads

Industrials

investment

Preferred Stocks

Canadians

^

Bank

exaggerate the importance of

necessary

Equipment Trusts

his

of

one

bro^ght Uy the Department of

living

better

the

Judge Medina said in the open-

Acceptances

banking to the na¬

This is the statement of

a

great

Salomon Bros. & Hutzler

industry composed as it
personnel, which is
numerically, at least, not so large
as it was over 20 years ago.
The
by

UNDERWRITERS and DISTRIBUTORS

our

is

of

of

limited

challenge

Members New York Stock

Sixty Wall Street,

personnel

of decreased

Boston
CLEVELAND

ture

in

agricul¬
in bringing better products,

ever

industry

of

consumer,

DOOLITTLE & CO.
YORK

STOCK

LIBERTY BANK BUILDING

New York

Branches

on

are

City Wires

Direct

private

Tucker, Anthony & Co.

Goldman,

Rialto Bldg., Lockport, N. Y.

wires to

Sachs

&

Co.

them

is

the

to

American
their merits. By this

based

This

portance

on

also

—

the pub¬

the sound founda¬

our

nor

SfiectefaU itc

benefit.

job.

I

could

an

would I express
so

industry led by men

of such vision and
our

that

confidence

but

important

this

and

franciico

not, if I would, exaggerate its im¬

up

Underwriters

chicaso

•an

hartford

great

method the purchases of

anything
2, N. Y.

selling

the

tion of knowledge and

EXCHANGE

BUFFALO 2, N. Y.

•

public,

lic

,

and

philadelphia

increasing volume to mar¬

and

ket

1919

•

-

Privets wins tt

bigger opportunities and re¬
sponsibilities is commonplace in
American

Established

Exchange

New York 5, N. Y.

and

INVESTMENT SECURITIES

70 Niagara St., Buffalo

ability

membership,

growing

as

will

problem

of

make
solve

public

Distributors

OF

Investment
Public

Utility

Industrial

Securities
Railroad

Municipal

B

C. J. DEVINE & CO.
SCH0ELLK0PF, HUTTON & POMEROY, INC.
63 Wall

Street, New York 5

70

BOwling Green 9-2070

48 Wall 5»reet,

Niagara Street, Buffalo 2

Chicago

Washington 8060

Teletype NY 1-2827




the

He was formerly a part-

tivities.

.

public trust, which is ours. It is
a
large order that is undertaken

NEW

Npw

effective Jan. 1,1954;
y l Brokaw will be

tional economy."

MEMBERS

Jm*

gp'css:

industry and for our partnership on the same date,
:
Mr. Pressprich will head the
firm's corporate underwriting ac-

salesmen

our

,

that

Judire Medina's Tribute

.

American

pro-

of

more

Y

A

then that this has

it is apparent

prosperity yet living.
built

heard

what

to

^

f N

nQunce

Co., One Wall

rliZ

take the zealous use of any and ajso
a
all these media over many years, admitted and "be resident in their
to tell this interesting and in- gt Louis office; Walter G. Rafformative story so clearly that all ferty at Hartford, and Gilbert M.
America will understand it.
■
Mears at at Providence.
James W.

before.

ever

going these products which bring about

greatest

and

voice

the

been a year that has emphasized

1953: A Great Year

proper

Walker &

H.

capacities in practically
The more the American people °ers ot
iNew York and Fmia- was a former chairman of the
every field of endeavor to a point know
about our industry, the
" annniinrp that
R
New York group of the Invest"
which assures new highs in the more they know about our prod- warrpn Trknow a worsted with ment Bankers Association of
output of goods and services.
ucts—securities—their advantages
America as well as a Governor of
The extent of such capital and disadvantages^ the-rewards
a*a
the IBA He was also a Governor
spending is perhaps not fully real- they bring, the degrees of risk uve m uieu
omce.
of the Association of Stock Exized—maybe these few figures they have inherent in them, the
Millard Director
Firms. Mr. Betts has been
will help make the facts of our more that public will buy the
™
^ S1™e « ,as
expanding economy come alive, securities of American industry
Mark J. Millard, partner of the .Manager while Mr. Brokaw was
From 1947 to 1950 we spent from and government.
New York Stock Exchange firm formerly a partner of Friedman,
14 to 16 billion of'industrial capiMany of our members have seen of Carl M Loebj Rhoades & Co., Brokaw & Co. of St. Louis.
Mr.
tal per year.
It reached more the necessity of such a program 42 Broadway, New York City, has: Mears since 1943 has been con¬
than 23 billion this year.
of sales and advertising and are
1'
<
„rUVl
Productive capacity in all man- reaping rich rewards in the sat- been elected a director of New nected with the Providence office,
ufacturing industries, according to isfaction of service and increased York Water Service Corporation, and Mr. Rafferty has been at
Hartford since 1950.
a McGraw-Hill survey, increased remuneration. It is not something it was announced.
" ^ J
1Acn
by 75% from 1946 to 1954. In the we may or may not do—it is
field of agriculture we produced something we must do or our
in 1953 more corn, more wheat, function in the economy will be
more
cotton
and
more
tobacco eventually absorbed by others,
than we did at the highest peak May I suggest to you that I am
of production during any of the not just seeing ghosts when I
U. S. Governments
Municipals Public Utilities
recent war years.
mention such a possibility.

the

Nineteen

other

any

or

G.

ductive

sys-

people of progress.

versation

required, of us
growing nation,

nay

great

a

must

live up

and

ours

expected,

then

which I would like to talk to you

security

If we are to
responsibility

the job done.
the
great

gets

20

page

direct mail,

public forums and in direct con-

and
government
clearly in 1954

that

from

hope,

the

telling

fulfill

Continued

To Admit Partners

heard

a

be heard
than ever
before?
You may call this voice
selling, or education, or public
relations, or any other name that

try

Biddle, Whelen & Co.,
Philadelphia

George E. Richardson

is

advantages means of public or private comof investment in American Indus- munication or education.
It will

James D. Winsor, 3rd

Morgan Stanley & Co.,

G. H. Walker & Co.

the past,

American industry and agriculsalesman,

Inc., Savannah

Samuel B. Payne

be/increasingly

land—that

Will

Varnedoe, Chisholm and Co.,

York

sales-

ture.

Samuel L. Varnedoe

Low

Bear, Stearns & Co.,
New

Merle-Smith,

Emerson

J.

William T. Kemble

the

in

New York

York

&

of the

May indeed the voice of the security salesman, giving the facts
that is not a prediction—that is about investments,
be heard in
a
definite part of the plans of the land through the newspapers,

Alfred J. Ross

Wood, Struthers & Co.,

voice

the

1954

In

33

Boiton

Cleveland

Teletype BU 122
Private Wire Between Offices

♦

☆-

•

HAnover 2-2727

New York 5
•

Philadelphia

Cincinnati

•

•

Washington

St. Louis

•

•

Pittsburgh

San Francisco

The Commercial and Financial Chronicle

(2394)

34

Thursday, December 17,

...

1953

Improved Outlook for Industrial Financing
America,

of

Bankers

financing, finds there

Holly¬

in

Fla., Claude F. Turben, of
Merrill. Turben & Co., Cleveland,
as

nual

The
In

by

securities,

Chairman delivered the an¬
report of the Industrial Se¬

ments

Committee.

curities

text

over

require¬

onerous

If

we

Your

subtract approximate-

would

like

offerings present the following facts in

to
or-

we

in

prices

with

and

in

provisions
could

the

to

less

some

be obtained

$9.7

bd"ion,

$4.7

privately

bHhon

and

fifmrp

nifinnnt

however

51.4
from

billion of
offerings

despite

the

to

the

was

this
of

The sisindustry

our

fact

was

billion

$5

nffprpd to the public

Of

that

only

money

came

common

stock

attainment

of

the

highest levels in 23 years for the
Dow-Jones
and

ing

Industrial

Averages

generally satisfactory marketconditions

throughout

the

(4) ^For the past five years over
50% of all notes, bonds and de-

decline to about hall of that for

MM ** in part of course to a bentures

have been privately
Investment bankers were

generally declining stock market placed.

from Jan- 5 to the middle of Sep- compensated in about half of these
tember. There is not much new transactions.
A relatively small

number of jfirms participated for

i" these figures as the total
amount of equity capital supplied
by new issues, including preferred
stocks, has averaged less than $2
billion annually since the war.
During this

same

period

a gross income to the industry oi

between $5 and $6 million
nually.
In
the

over

these

of

an-

circum¬

stances it is apparent that the
only
area of corporate

corpor-

underwriting in
possibility of

ate debt has risen from $85 billion
to

light

insurance

companies.

reams

of

the

fact

tions,

We

that

be

to

copy

the subject.

the

industries

which entered

written

all

are

many

and

that

realize

tions,

in

industrial

adequate profit

is

dustrial

financing.

equity

committee

aju.

feels

in

that

present briefly the

GmwuKM

lack

of

that

of

the

period

done

of

with
he

not

or

have

these
with

have

slackening

market where

a

loans

be

can

equities.

quire debt free status.

Many

created
was

records

while

their

which

to

equity

financing,
possible at the

not

was

time of the original financing. For
many reasons a

loans do

of

qualify

for

if

a

only

large part of these

not, for obvious
refunding.

small fraction of

billions of loans
into

equity

dustry

reasons,

However,

can

The high

idends, which
Underwriters

and

Distributors

securities

by

our

contribution

stantial.

to the economy

For

interested

are

those
in

subject

corpora¬

1946-

may

I refer

of

(3)

The

you

to

a

fiscal

new

....

DISTRIBUTORS

in

state

the

the

and

first

(4)

Scrip

-

Warrants

Reorganization Securities

over stocks

municipal
quarter

only

to

of

bonds
this

in

200,000,000

in

Members

The vast amounts of funds

panies

and

in

insurance

banks

New York

com¬

which

to

in

(5)

NEW YORK

The

narcotic

of

120

BROADWAY, NEW YORK 5

inflation
.

which has hidden the real dangers
of debt.

CHICAGO

,

•

Stock Exchange

American Stock Exchange

a

great extent must have outlet
debt securities.

^OAjmrcdian

McpONNELL&(b.

year

quarter.

accumulating

PHILADELPHIA

-

For instance,
invested $800,000,000

second

contrasted

BOSTON

Rights

policy.

individuals

V

,

(7)

The

to

geous

-of

use

the

which

both

the

Tel.

REctor 2-7800

Detroit Office:

Buhl Building, Detroit, Mich.

forward

is

advanta¬

borrower

and

lender.
Let

examine each of these to

us

if in this past year there have

see

appeared
•

trial

Dominick
Members

New

&.
York

Stock

financing.

In the Field of Taxes:

Exchange

its

tax

bility

DISTRIBUTORS OF

of

CORPORATE AND MUNICIPAL
SECURITIES

relief

Investment Securities

We believe there

ing expiration of the
and

income

UNDERWRITERS AND

pointing to

several.

are

Dominick

signs

from any of the above deterrents
to equity and other public indus¬

reduction

taxes.

of

The

start

a

in

The

excess

in

the

com¬

prof¬

personal

strong

possi¬

direction

eliminating the double tax

dividends

in

the

next

on

Also

year.

some

possibility of a reduction in
holding period for capital
gains.

the

14Wal

,teertS

5

Pension

Canadian

Dominick




Fund

broadening

Affiliate

has

been

tor for

Corporation of Canada, 1

a

our

Buying:

of

bond

the

The

I. F. Rothschild & Co.

market

MEMBERS

Montreal

business.

24,000 pen¬

sharing plans, with
added monthly, has

being
it possible

made

sized
-

bond

YORK

STOCK

EXCHANGE

distinctly bullish fac¬
120

sion and profit
400

NEW

to

issues,

place

such

kingas

the

General Motors offerings at better

BOSTON

BROADWAY, NEW YORK 5, N. Y.
CHICAGO

ROCHESTER

-

<*

t

(6) The onerous requirements
of the SEC registration which en¬
courages private placement, mostly in debt securities.

commitment,

this
study

by the American Institute of Man-

■

things

attractiveness

municipals

who

pursuing

which has been accentuated
by the

INVESTMENT SECURITIES

Ctmaxuxwi Securities

div¬

on

'

relative

of tax free

sub¬

you

level of personal

among other

in¬

profit picture will be
considerably improved and our
our

encourages financing by the reten¬
tion of earnings.

of

these

be converted

income taxes.

(2) The double taxation

debt

privately held and today lend

themselves

we

UNDERWRITERS

of

these companies have matured and

for the
ap¬

of

paid down to
the point where it is practical and
desirable for the company to ac¬

in¬

are

re¬

Many

been

parent to you all.

(1)

was

Your

reasons

the

investment

an

should

we

it, most of which

of

them

corpora¬

from

been

whether

funded

individuals

When

have

may soon

some

the

factor.

loans placed
companies
and

the demand for capital
we

depression pe¬
riod of the thirties, heavily en¬
cumbered
with
debt, were re¬
sponsible for greatly deepening
and lengthening that depression if
indeed
they were not a major

contributing

of

employed in the transaction. With

on

aware

majority

banker

In

which there remains

$160 billion.

is

for

moment

very

insurance

knowledge

private sale

vefr

olaced

becomes apparent that there

banks

than

cases

in

common

of industrial equity financing will

55%)

versus

place .at this

with

restrictive

.

in-

by

1922-1930

intelligent and profitable invest¬
ment
banking.
Business cannot

.

ings totaled $8.3 billion and
^•l.Tninfr rpfiinHin^
7 billion

the period

it

stock dustry is this lack of equity fi- addition the drastic decline in the
bond market of last spring has
equity for industrial United States nancing.
including
banks,
finance
com(1) Under competitive bidding made it possible actually to dem¬
presented the
panies et cetera.
This figure's the profit margin in the under- onstrate to corporation executives
following sta¬
about two-thirds of the average writing of public utility bonds has the
profit possibilities in repatriatistics for the
for the years 1922-1930 which was been reduced to $5 or $6 a bond
tionof debt for sinking fund purwhole of tne
the last period of sustained pros- and as a profitable part of our chases at
large discounts,
year 1952
perity comparable to this one. business has virtually disappeared.
which
for
Other interesting comparisons of No relief from this condition is in
Debt Consciousness and Other
b a c k g round
the two periods show personal in- prospect.
Factors: The most hopeful sign
purposes
w e
comes
rising from $85 billion in
(2) The margin in utility equity .for the revival of industrial equity
shall
briefly
1929 to $268 billion in
Turben
Claude
1952 and financing has been constantly re- financing is the growing awarereview.
More
personal savings rising from $3.7 duced for the same reason.
ness of the size of our corporate
(3)
H6fnr thp^xoansion of indus- billion to $18 billion. On the basis
(3) Railroad financing, other and private debt. An insignificant
Railroad
amount of deflation and a slight
thnn
in^ ao^
historv of figures released by the SEC for than for equipment, is virtually
hardening of the dollar has caused
TJew monev exclusive of refund- tbe first 8 months of 1953 the total non-existent.
$800,000,000

ing at White
Sulphur
w e

per¬

capital

new

forever expand at the expense of
its creditors.
-

find that this der to demonstrate more clearly
entire industry raised a little over how vitally important to our inthe figure

greater

a

their

a

bankers

committee

raised

(approximately 75%

stocks. Finds, however, industrial securities most favorable field for

ly 600,000,000 of Utility
from

the

meet¬

spring

double taxation of dividends,

are

of

debt than in

The
year.

Secu¬

for

which

equity and other industrial

new

of SEC registration, and the relative attractiveness of tax-free munici¬

investment

rities Commit¬
tee

have

1952,

prepared

report

In¬

your

dustrial

pals

among

still deterrents to

are

of the report follows:

written

a

rising volume of industrial

centage

wood,

O.,

on

Investment

the

of

Convention

Industrial Securities Committee, after giving data

the 42nd Annual

On Nov. 30. at

MONTREAL

Number 5282

Volume 178

.

.

Respectfully submitted,

M.

In Attendance at IB A Convention

Work

Salomon Bros. & Hutzler

Chicago

Southwest

First

A. M. Law &

Courts

Gairdner & Go. to

Co., Dallas

Issue Brochure Series
Of

ner

& Co.,

new

Weeks

monthly

be

will

pub¬

contain

and

fense

a

and

Commerce

outlines
for

Chicago

postwar

Kirkiand

May burn F. Landgraf

economic
will

underlying

the

stems

partly

10

feels

and

that

from

the

MacDonald

available
and

City'

Chicago

Country's
and

investment

enterprise.

economic

The

"climate"

Witter &

favor¬

controls; (b) sound budg¬
and monetary policies, and
bold trade
policies on the
this

York

brochures
obtained

in

the

from

Co.

may

Gairdner

&

be

Co.,

Inc., 40 Wall Street, New York, or

company,

*

Leroy A. Wilbur

STEWART
Devine

J.

A.*

&

Co.,

York

New

Rotan, Mosle & Cooper, Houston

Jr.,

Eaton

&

CHARLES F.
Howard,

EDWARDS,

New York

Co.,

Boston

WILLARD

DeSTAEBLER,

Inc.,

Calvin

.

Sills,

DEWAR,

DITTMAR,

E.*

DIXON,

W.

Chicago

Brothers,

CLARKE,

Jr.,

&

JOHN W.
Clarke, Incorporated,

W.

CLAYTON,

C.

Chicago

COMSTOCK

Clayton Securities Corp., Boston
CLOSE,

L.

Mericka

J.

DOMINICK,

II,

&

Close & Kerner,

W.

DORBRITZ,

COBURN,

Moore,

Ripley &

MARY

Inc.,

Co.,

ERNEST

DOUGHERTY,

Chicago

K.*

DOWNEY,
Union

A.

York

New

&

Wm.

Co.,

National

W.*

&

City

Dougherty & Co., Philadelphia

F.

New

W.

&

K.*

Chicago

Co.,

Bank

&

Trust

Co.,

Continued

York

on

page

Schoellkopf, Button & Pomeroy, Inc.,
York

'

Agee & Leach,

Sterne,

FRANCIS

COLEMAN,

Gairdner

&

Company

Stein Bros. & Boyce

Limited, 320 Bay Street, Toronto,

Baltimore

Montgomery

X.

& Co.

Francis Ldu Pont

Incorporated, New York

Son,

MERRITT

COLEMAN, C

Allen & Company, New York

.

COLLIER,

W.

T.

K.

Collier, Norris & Quinlan, Montreal

Canada.

C.*
Philadelphia

Jr., CLIFFORD

COLLINGS,
*

C.

C.

Collings & Co.,

CHARLES M.
National Bank,

COLYER,
Central

JOSEPH

CONDON,

Stocks

Bonds

*

Comnliodities

*

Cleveland

Underwriters, Distributors, Dealers in

P.

McDougal & Condon, Inc., Chicago
B.

Bacon, Stevenson & Co.
Members New York Stock

Exchange
Members American Stock Exchange

CORPORATE AND MUNICIPAL SECURITIES

V.*
Van Ingen & Co., Chicago
RAYMOND

CONDON,
J.

POWHATAN

CONWAY,

Bankers Bond Co.,

M.*

Christiana Securities Company, Common

Louisville

Spencer Trask & Co., New York

Van

J.

B.

H.

ROBERT

COOK,

Members New York Stock

& Co.,

Ingen

Miami

Paine, Webber, Jackson & Curtis,

Chicago
*

BONDS

JAMES

COUFFER,

Hirsch &

&

Courts

k

Telephone DJgby 4'4100

Co.,

L«s

W.

Miami

Rochester

YORK

5,

N.

Y.

Teletype: NY 1-1181

Chicago

Cleveland

Bakersfield
White Plains
Newark

San Francisco
Miami Beach

Washington

'

Beverly Hills
Elmira

Charlotte

West Palm Beach
Private

London

Lausanne

Wires to

Buffalo

Columbus

Cincinnati

Atlanta

Corporation,

Securities

Philadelphia

Fort Lauderdale

NEW

•

Cable: Rhetpont

Direct

H.*

ROBERT

American
New

.

STREET

Pasadena

Angeles

Minneapolis

Atlanta

M. J. M.
Curtiss, House & Co., Cleveland

COX,

CRAFT,

WALL

DIgby 4-2000

Wilmington.

York

Co., New

RICHARD

COURTS,

Broadway, New York 6, N, Y.

Tel.:

JACK

COUIG,

39

ONE

G.*

Van Ingen & Co., New York

L. J.

Exchange

Principal Security and Commodity Exchanges

W.*

JOHN

CORRINGTON,

MUNICIPAL

and Preferred

H.

HAROLD

COOK,

York

CRAIGIE, WALTER W.*
F. W. Craigie & Co., Richmond
JAMES

CRANFORD,

A.*

National Bank, Jacksonville

Atlantic

HENRY

CRAWFORD,

J.*

Squire, Sanders & Dempsey, Cleveland
Robinson-Humphrey Company,
JOSEPH

CROLL,
Aslel

CROSS,

WERTHEIM & co.

J.

C'.

&

&

CHARLES

Chicago

Bank and

B.
Crouse & Co.,

&

DeHaven

Insurance Stocks

Detroit

GORDON
Townsend, Crouter & Bodine,

CROUTER,

and

Utility

Municipal Bonds

Co., New York

Livingstone,

and Distributors

Public

Railroad Securities

York

LOUIS J.
& Weeks,

CROUSE,
R.

Industrial,

JOSEPH*
Devine

CROSS,

S.

Atlanta

D.

Co., New

Hornblower

Members New York Stock Exchange

Underwriters

S.

F.DWARD

Jr.,

CROFT,

Unlisted

Securities

Philadelphia
CROWELL,

Crowell,

WARREN H.*
Weedon & Co., Los Angeles

CUNNINGHAM, SAMUEL K.*
'

K.

S.

Cunningham & Co., Pittsburgh
ARTHUR

CURTIS,
A.

NEW YORK

G.

W.

DAVIS,

120

ROBERT

Wells & Company, Chicago

DAVIS, G. POWELL
-

YORK STOCK

DU

EXCHANGE

BROADWAY, NEW YORK 5,

Telephone BArclay 7-3500

DeWITT

Mullaney,

»Bell leletype NY 1-124849
44 WHITNEY

PONT BUILDING

WILMINGTON,

N. Y.

LINCOLN

Richmond

JOSHUA

Blair, Rollins & Co.,
New
*

Incorporated,

York

Denotes

Mr. and

LIBERTY BUILDING

PHILADELPHIA,

A.

Mrs.

AVENUE

NEW HAVEN, CONN.

DEL.

Willis, Kenny & Ayres, Incorporated,

DAVIS,




MEMBERS NEW

E.
Pacific Northwest Company, Seattle

DANIEL,

N

Laird, Bissell & Meeds

Becker & Co., Inc., Chicago

York.

,

City

NORMAN S.

Corporation,

New

D.

National

Kansas

Inc.,

Cleveland

Corporation, Chicago

Barney

FARRELL,

York

Co.,

Co.,

PAUL

Boston

Smith,

Pittsburgh

»•

New

J.*
&

FARRAR, IIOLDEN

O.

Lynch,

&

r

'

Inc.,

Clark

FAIRCHILD,
First

&

SEYMOUR

LESLIE

Fahey,

Bank

Co., Wheeling

Pollock

E.

FAHEY,

Charlottesville

WEBSTER

Securities

W.

&

Buffalo

Leonard

A. Webster

LOU

GEORGE

COGGESHALL,

York

New

Eankers Association,

Investment

Dominick,

& Co.,

Masten

Tripp

Atlanta

Co.,

Illinois

FABRIC ANT,

Inc.,

SCOTT

Harriman

Cleveland

Co.,

BAYARD*

DONNALLY, JESSE P.*
Peoples National Bank,

Doolittle

Philadelphia
CLUETT,

&

&

Chicago

ROBERT

E.

York

New

A.

FAATII, HARRY W.

DOOLITTLE, ROY W.*

PAUL*

Rambo,

>

A.

York

New

Co.,

THOMAS

>»Co.,

EVVING,

H.*

CARL

Dominick
John

Corporation,

&

Evans

A.

Continental
Trust

Securities

HARRISON

Johnson, Lane, Space & Co., Atlanta

CLARKE,

<

Co.,

W.

CLEMENT

EVANS,

Antonio

Ycrk

DOERGE,

Miami

Co.,

Wm.

CLARKE,

A.

W.*

HAGOOD

Kindred

Barcus,

ELMER

JOSEPH

American

Dodge

EVANS,

Clement

Dittmar & Company, San

York

New

ROBERT

Pancoast,

&

,

C.

&

CARNOT

Clark,

H.*

Robertson

Trask

Spencer

Incorporated,

Antonio

San

Bullock,
Jr.,

EUSTIS, BRITTIN

L.

Harris,

&

Chicago

Co.,

Jr., RUSSELL M.*
&
Company,
Incorporated,
Philadelphia

■

EVANS,

HAL

Dewar,

Co.,

EUGENE

Fairman

&

H.*

Stroud

Exchange Commission,

York

New

Chapman

LESTER

American Trust Company, San Francisco

Washington

Landstreet & Kirkpatrick,

CLARK,

and

A.

ERGOOD,

RALPH H.*

Securities

Bank & Trust

EMPEY,

Bodine,

>

DEMMLER,

HOWARD

Farwell,

WALTER T.

Incorporated,

Company,

Francisco,'

EMIG,

Los Angeles

Co.,

Inc., Oklahoma City

California

San

G.*

Eichler &

H.

JOHN F.

First

Baltimore

York

New

*

Edwards,

EGAN,

& Sons,

Garrett

J.

R.

JOHN

succeeding

series

by writing directly to the parent

York

*

.

Chicago

DeHaven & Townsend, Crouter &

W.

HAROLD

Gregory &

&

C.

COHEN, MORTIMER A.*

Co.

Francisco

Rothschild

&

DeHAVEN,

Louis

FORRESTER A.

CLARK, ROBERT

New

and

A.

St.

Winston-Salem

part of the Canadian Government.

of

ARTHUR
Gardner,

JOHN J.*

Wachovia

results

lack of bureau¬

a

&

CLARK, JOHN C.

cratic

Copies

Taylor

Eugene Treuhold
New

private

largely from (a)

(c)

Fulton, Reid & Co., Cleveland

F.

to

resources

New York

Bank,

GEORGE

Bateman,

Nashville

etary

Frank B. Reid

L.

free

able

Nichols

Ames, Emerich & Co., Inc.

San

New

G.

DUSON, C. PHARR

EATON,

National

DeGROOT,

c

.

Wainwright & Co., Boston

Clark,

Can¬

partly from favorable opportuni¬
ties and good economic "climate"

natural

*-

New

growth

Smithers & Co.,

Robert

Pressprich & Co., New York

C.

CLARK,

years.

future

W.

Lehman

Corporation,

Burke & MacDonald

H.

of

Canada

the Canadian Gov¬

Minister

recent

ada's

course

development

take in the next

ernment

indi¬

and

general

-

York

New

DeGROFF, RALPH L.

A.

Chisholm & Co., Inc.,

Jr.,

CLARK,

remarkable

abundant

Dean

C.

Co.,

SYDNEY

DUNN,

B.*

*

T

Indianapolis Bond and Share

Indianapolis

FRANK

Reinholdt

Mr.

the

S.

Rand

NEWELL*

F.

CHRISTOPHEL,

De¬

Canada's

In summary,

Jenks, Kirkiand & Grubbs
Philadelphia

and

inr which

development

what

cates

Hunt

White, Weld & Co., New York

Eaton

&

Blyth & Co.,, Inc., New York

Exchange, Chicago

HOWARD

American

Childs & Company, Chicago

C. F.

bro¬

speech

recent

a

Production,

causes

E.

DUFFY,

E.

Upham & Co.,

DEGENER,

CHISHOLM,

R.

containing

Howe

Kansas

Wertheim

Montreal

BARY, MARQUETTE*
F.

York

New

Canadian

in

Inaugurating the series is
chure

Sills, Fairman & Harris, Inc.

Donald

ALLEN

'

CLAPP,

of Trade

David J. Harris

H.

DUBOIS,

DECKER, O. PAUL

B.*
Corporation,

Boston

Savannah

investors

Jr.,

Harris,

Cleveland

WILLIAM

(The)

Varnedoe,

by Rt. Hon. C. D. Howe, Minister
Glassmeyer

Frederick

First

re¬

to

DEAN,

de

Reid & Co.,

Fulton,

CHAPPELL,

Canadian

of

industry.

Blyth & Co., Inc., New York

N.

JAMES

Midwest Stock

New York

Louisville

Lyons & Co.,

growth stocks
and subjects of current economic

views

York

Samuel

by Gaird¬

L.

W.

CHILDS,

interest

Jansen

GEORGE J.

Chicago

*

*

Ltd., Toronto, Canada,
&
Co., Inc., New

brochures

lished

Blair, Rollins & Co., Inc.

E.

DROBNIS,

CULLOM

DUDLEY*

Dawson, Hannaford Limited,
DAY,

P.*

& Trust Co.,

CHAPMAN, R. C.

„

Cross
&

M.

*

'

JAMES W.*

CHANDLER,

Gairdner

The

Joshua A. Davis

Edward

a

to American
series of bro¬

York.

Chicago

New

is

investors

Cook

Hornblower

interest

great

chures being published

York
J.

CHAMBERLAIN,

■

Spencer Trask & Co.
New

SHELBY

Shelby Cullom Davis & Co., New York
DAWSON,

Allyn & Co., Chicago

Chemical Lank

and

Louis

C.

A.

,

Co., Spartanburg

York

H.

.DAVIS,

D.

Atlanta

Co.,

'

Eastman, Dillon & Co.
Harold

&

DOUGLAS

CASEY,

H. Lawrence Bogert, Jr.
New

HUGH

'

Merrill, Turben & Co.

Henry J. Blackford

Jr.,

CARTER,

Claude F. Turben, Chairman

Thomas Beckett, Jr.

31

page

BYancisco

Robert

COMMITTEE

Cleveland,

from

35

Wulff, Hansen & Co.
San

SECURITIES

Continued,

J. Paul Woollomes

Value of Corporate

INDUSTRIAL

(2395)

Chronicle

The Commercial and Financial

"The Doubtful
Debt."

entitled,

agement

.

PA.

39

36

(2396)

The Commercial and Financial Chronicle

Thursday, December 17, 1953

...

Mutual Funds and the Investment Banker
On Dec. 3, at

the Fourth Session

IBA Investment

of the 42nd Annual Convention of
the

Investment

Associa¬

Bankers

Convention,

tion of America, Robert L. Os¬
good, of Vance, Sanders & Com¬
pany
of Boston,
as
Chairman,
delivered
the

the

Annual

Investment

Report

Companies

of

For

for

this

company

example,

$66,000,000

worth

owned

was

Associa-

recently

by

of its shares
investors
with

$50,000

holdings

the belief that

that, of this total, about $33,600,000
represented
investors
each

distribution of

vestment

com-

shares

p a n y
<

largely

was

confined

That

to

this

clientele

looked

is

.primarily
among small¬
individual

er

investors. The
facts
Robert

L.

Osgood

coming to
light, showing

that this is not the

is

It

true,

of

that

course,

of

sold

to

other
of

mutual

fund

shares

smaller investors.

a

num¬
are

On

the

hand, the trend toward sales

large dollars amounts of shares

to

fiduciary, institutional
and
other larger investors continues
This

upward.
stimulated

cluding

trend

has

been

legislation

and

the

these

dicated

and

more

member
have

firms
not

of

over¬

developments is in¬

an analysis of a list
published by "Finance."
This magazine gave the names of
128
investment banking f i r m's
with capital in excess of $1,000,-

by

000.

It

that

106

has

been

of

these

distributing

one

reported
firms

to

us

maintain

relationship

with

investment company

more

or

Of

underwriters.

the

remaining

22

firms, one has since discon¬
tinued
business, and except in

one

of

are

not

instances

two

active

in

others

the

the

dis¬

retail

Sales

of

Shares

Continue

Again, in the current
of shares of open-end

companies

High

year,

sales

investment

contributed

tially to the income of investment

porations,

banking firms.

investment

of

use

company

mutual

the

by

shares.

funds

For

substan¬

Figures compiled

National

Association

of

amounted
12

to

$511,637,000.

months

ended

Help

Build

Exchange
In

relation

be

may

of

quest

New

a

survey

among mutual

certain

funds with respect
1940

through

Exchange by these compa¬
the following observations
in

statistics supplied

a

sent

summary

UNDERWRITERS AND DEALERS IN

state, municipal, housing authority,

have

growth

nancial

as

large

one

that

are

trusts.

and

vestor'.

The

the

dustry is apparently

the

in¬
in¬

effective

an

The

its

facts

well

may

New

and

indi¬

York

Stock

19%

shares : had

the
in

STREET, NEW YORK 5, N. Y.

and

sales

SANTA

BLVD.,

BEVERLY

this

HILLS., CAL.

is

highly satisfactory. Not only

but

there

laws

trustees
care

number of additional

a

in

are

14

specifically

to

invest

funds

investment

In

in

their
se¬

curities,

within sound limits of
prudence, discretion and intelli¬
gence.

These

are:

obtain
proper
and management of
small

Kansas

bill, subsequently enacted, per¬
mitting the investment of such
a

monies

in

securities

pies

as

investment

under

the

the

company

same

"Prudent

made

The independent invest¬
companies committee played
large part in helping with this
legislation and in setting up the

pioneering
been

methods

that

to

tasks

could

accomplished

important
not

note

that

of

shares have

mutual

from

come

Atlantic

Seaboard,

the

Dakota

banking

Pennsylvania

stances,

Carolina

business.

this

individual

In

support

some

came

members;

in

that

Washington

part of the state legislative com¬
mittees of our Association. Thanks

Wisconsin

a

concerted

effort

W. H. MORTON & CO.
INCORPORATED

Fifteen Broad Street, New York
5, N. Y.

HAnover

Underwriters

2-5620

—

Dealers

STATE

AND

MUNICIPAL

BONDS

with

done

in

NEW YORK, N. Y. and JERSEY

through

afford

economies

and

other

CITY, N. J.

advantages

sales

of

would

and

State

free booklet setting forth the Current Federal

Stock

Original

Issue

and

Transfer

Tax

Rates.

TRANSFER COMPANY
Established

New York 7, N. Y.

1899

BEekman 3-2170

15 EXCHANGE PLACE

Jersey City 2, N. J.
HEnderson 4-8525




to

to

commonly

the

this

acted

in

draft

known

Man

1949,

broaden

as

12

states

court

the

formed
is

1950,

Shattuck,

the
a

INDUSTRIAL

BONDS

EQUIPMENT BONDS
RAILROAD

BONDS

the

"Model

been

which

had

the

decisions

a

By
en¬

GREGORY & SON

not

Incorporated

Massa¬

which

"Prudent

40 Wall Street

New York 5

Man"

concept of trust investment.
In

PUBLIC UTILITY BONDS

now

Statute."

had

followed

STATE AND MUNICIPAL BONDS

American

what

Rule

statute

previously
chusetts

1942,

Association

committee

established

Over 53 Years of Efficient and
Economical Service

produce

words, the

Extension of Prudent Man Rule
in

UNDERWRITERS AND DISTRIBUTORS

areas

banking industry.

Prudent

50 CHURCH STREET

result

otherwise avail themselves of
facilities of the
investment

Back

and

is

result

Bankers

REGISTRAR

In other

by

a

in

ownership of listed stocks, espe¬
cially among investors who might
the

our

is

shares

otherwise

which

not

and their stockholders.

appear

Exchange

their

effective

to

underwriters, distributors, corporations

Write for

the

investment companies
of

little volume.

We

It would

good share of the business

a

others,

from

exactly the reverse, with approxi¬
mately 70% from the North At¬
lantic Seaboard.

in¬

from

Tennessee

the balance from other
areas, the
origin of business on the New
York Stock
Exchange is almost

AS TRANSFER AGENT

the

support,
at the
local
level, of firms in the investment

some

pany

have

without

company

30% of the
investment com¬

were

energetic

York Stock

words,
participation

Rule

ment

are

other

princi-

Man

Statute."

Needless to say these

Mexico

South

im¬

adopted.

Hampshire
Jersey

North

local

After
careful
consideration, the
Attorney General's office drafted

Nebraska

New

comparatively
for

provements, maintenance of parks
and other philanthropic
purposes.

bookkeeping

Maine

New

left

sums

inability

diversification

a

Colorado

New

invest¬

the

com¬

that

investment

sales

North

them

allow

company

increased

only

of

of

with

firms'

interesting

whereas

have

type

same

New Hampshire was the

"legal

work

by approxi¬
mately 100% during the more re¬
cent period.

Teletype: n.y. 1-2848

MONICA

of

the

the

only
group between

same

1948.

securities

It
9643

New

compared

member

of

been

organizations

by the

1940

wm. e. pollock & co., inc.

40%

investment

members of the

Exchange

HAnover 2-8244

about

mutual

through
trust certificates

industry and

was

period
of

pany

public utility bonds

open-

brought up-todate for the three
years and nine
months ending September, 1952.
The
most
significant change in
the figures indicated that in the
sales

been

of

sound

to

are

its growth."

study

pas¬

list" concept.
results

New

Public Trustees

Ohio

members

end investment trust

by

of

A serious problem faced by
pub¬
lic
trustees
of
public funds in

toward

com¬

funds

market.

that

work

ready enacted, and advocate

whose

mechanism for serving and devel¬

disclosed

to

obtaining

laws

ment.

sage of the amended Rule in other
states still bound

states,

'small

mutual

this

make

amendment of the rule where al¬

fi¬

of equity capital

as

Prudent

independent

an

industry

undertook

The

the

currently exists is owned by
knows

"Model

Statute,"

in

the

limits, securities of
companies.
In addi¬
tion, the insurance laws in Kansas
were changed to
permit insurance
companies (other than life) to

Mr.

enacted in

group which the financial

munity

original

by

to

investment

the draftsman

has the "Prudent Man Rule" been

self-evident, the

source

Assisted
was

of

community in particular
suffering from a short¬
equity capital.
For rea¬

which

sons

the

of

both

of

of

that

to

whole

a

dictate.

Shattuck, who

instrumental

within

use

vigor

a

investment

economy

a

shown

comparable

open-end

propriety of such

clearly spelled out by legis¬

The

"Few industries in the financial

later

revenue, railroad, industrial,

to

Exchange member firms:
field

the

Man

Based

This

TWENTY PINE

similar

Hampshire and Rhode Island to
permit savings banks to purchase,

committee of those associated with
the investment company

1948.

nies,

if

made

benefiting directly from the

equipment

investment

same
independent invest¬
companies committee was

amendments

com¬
pany securities than might be the

Stock

to

appeared

also

tant about using investment

was

phases of their invest¬
on

The
ment

no

York

ment activities from

the

was

statutory pro¬
vision
on
the
subject in most
states, fiduciaries were more hesi¬

lative

trends, it
at the re¬

that,

there

cause

were

Business

the

Exchange,
to

Stock

these

to

noted

Exchange

Securities

torney and authority on trust law,
learned from a survey that be¬

case

Funds

cate

Government

last

Sept/30, such sales totaled $726,038,000.

herein

DEALERS IN

1953,

shares by 108 mutual

oping

United States

in

within

limits.

Companies show that

new

the

age

development of simplified profitsharing and pension plans for cor¬

making

Investment

are

tribution of securities.

by several factors, in¬

new

or

recently

a

case.

large majority of the total
ber

now

are

larger

Association

firms whose
,

invest

shares,

company

stability.

for the first nine months of
sales of

owning $100,000 or more. Another
company has reported
that 24%
of its assets are held by share¬
holders owning $50,000 or more.

in¬

open-end

,

of

stated,

that approximately

tion have held

-

also

may

Savings Banks

of

members

many

opinion of the Supreme Court of

Oklahoma, trustees in these states

Com¬

of the report follows:

years,

addition, by probate judges'
in Masschusetts, and by

opinion

company shares continue high and
help build stock exchange business. Gives indications of mutual

funds'
One

text

In

to the 42nd Annual

sales of investment

says

mutual funds

mittee.
The

Companies Committee, in Annual Report

Telephone DIgby 4-1180

late

Mayo Adams
prominent Boston at¬
•3 r

Teletype NY 1-1691

on

the

0

Volume 178

Number 5282

.

..

due

are

pated
In

all

to

in

who

this

The Commercial and Financial Chronicle

I'M

»■

have

partici¬

constructive

work.

1953, the independent commit¬

tee

dissolved and the further

was

development of its program
assumed by a committee of
National
ment

Association

of

was

the

Invest¬

Companies.

Other

the

for

Investment

for

considerably

investment,

shares, the result

activities

has

of

the

Code

which
tion
the

a

bills

the

that

for individuals be

Section

a

to

be
of

subsec¬

of

trustee

retirement

funds

bank,

104 of

as

the

de¬

Code.

of this

been

purpose

institution of public standing will

com¬

these

of

favorable

in

deposited funds and

that they

see

not made available

are

mitted

by the Code.

"We

the

permis¬

trustees

to

pur¬

ferred stocks

terms

permits

that

investment

solely

obligations of the United States

Government

or

in shares

of

pub¬

licly-held investment companies
registered with the Securities and
Exchange Commission

bonds.

or

under

the

Federal Investment Company Act
Jenkins and
The

committee

new

NAIC

has

also

of

Keogh Bills
of

taken

the
active

an

interest in Federal legislation re¬

lating

to

plans

for

the

tax-exempt pension
the self-employed.
At

hearings

last

August, before
Means Com¬

the House Ways and

mittee,

it offered the following
explanation and amendment to
the

Jenkins

and

its

through

Keogh

Bills,
Edwin
S.

counsel,

Cohen, of the firm of Hatch, Root,
Barrett, Cohen & Knapp, of New
York City.
"With the general objectives of
H. R.
Jan.

and

10

3,

vide

1953,

11, introduced

which

the

in

Code

H. R.

seek

Internal

to

pro¬

Revenue

mechanism for retirement

a

plans for individuals comparable
to those permitted
to be estab¬
lished

there

employers,

by
can

"We

be

no

should

we

sound

like,

believe

objection.

however,

call to

the attention of the

mittee

one

bills

which

corrected

to

we

submit

1940,

the

require that
tee

but

bank

a

statute
a

should
be

curities

a

in

should

bank be the

require

the

of

trust

not
trus¬

only that

custodian

the

under

se¬

ap¬

propriate regulations of the Sec¬
retary of the Treasury.

A trustee

is charged with the
responsibility
of selecting investments as well
with

as

the

and

care

custody

of

the securities in which the invest¬
ments

made.

are

For

this

reason

the

charges of a bank are sub¬
stantially greater when it acts as
trustee than when

custodian.

Most

ment funds

to be

established

der the

proposed statute, particu¬
larly in the early years following
their

creation, would be a
atively small size, and the
ferential

in

the

bank, depending
acted

of

dif¬
the

whether it

trustee

as

would be
such

charges
upon

rel¬

or
as
custodian,
especially significant in

be

Sec-

small

curities

and

shares

of

se¬

publicly-

quate
in

ap¬

investors

risk

of

of

moderate

and

expert

man¬

So long as ade¬

safeguards

established

are

the

retirement funds in those

securi¬

ties should be facilitated.

the

trust

funds

must

be invested in United States Gov¬

securities

ernment

shares
ment

the

of

in

or

publicly-held

the

invest¬

companies, the objectives of

statute

tained

by

would

be

fully .at¬
requirement that a

a

bank act as custodian only.
The
custody agreement with the bank
would

provide, under regulations

of

the Treasury
the bank could

part

any

the

of

with

ance

Department, that
deliver

not

over

the

trust assets to
except in accord¬

taxpayer

the strict terms

of

the

statute.

therefore,
to

where

the

the

a

respectfully

Committee

trust

that

investments

are

limited, the statute should

quire only

that the

custodian

and

bank

relieve

re¬

act

the

as

tax¬

from the additional expense
which would be incurred if the

payer

bank

acted

with

the

as

trustee

a

duty

vestments.

charged
selecting in¬

of

Of

pointing

this

course

would

taxpayer from

bank

a

«•'%

i

notable

■

J I I

Ml

kj

in

work

Because

pension
be

may

the

insurance
which

nature

in

fixed

a

the

dollar

the

future, the insur¬
ance company must invest its own
assets
largely in dollar obliga¬
tions.

As

result, the return

a

amounts

is

on
insurance

in

invested

contracts

comparatively

when
of

to

plan

Programs for Continuous
Investment
In

For

fiduciary buyers, mutual invest¬
ment

the

goal of broadening
the ownership of securities.
In
particular, 1953 witnessed a fur¬
ther

the

up

plans,

or

involving in¬

trust depart¬
well-staffed in¬

vestment

management
depart¬
These
organizations are

ments.

prepared

perform

to

management
basis.

services

Many

banks

in

investment

sound

smaller

on

a

fee

commercial

cities, however,

and

experienced

invest¬

to administer

natural

to

employee

utilize

which

surance

the

companies

benefit

plans

services
or

of

in¬

the invest¬

ment

management services of
banks, there is also a substantial

field

for

mutual

plans

using

shares

investment

companies

of

of

companies, by
small to moderate

capital from
of.

partici¬

~

..

provide

programs

for

large

or small, from $250 up, and
subsequent cash investments.

for
All

money

nated

custodian

in

desig¬

investment

by

com¬

independent

an

and

provision

the reinvestment of

dividends.

by

receive

the

usual

commis¬

both the

on

original and sub¬
sequent purchases.It may

while

low,

be pointed out here that

the

minimum

the

be

ample,

are

tend

higher.

For

considerably

of companies, for

group

the

vestment

figures

amounts

average

average

for

the

past

three

"We

submit

of

the

for

Section

the

the

and

average

vestment

was

subsequent

173

to

Many firms have found that
through these plans they can ob-

Continued

on

ap¬

form

a

page

of

the proposed

(b)(2). which

would

add

at

the end

line

5)

the following language:

thereof

MUNICIPAL

(page 11,

'provided, however, the require¬

MUNICIPAL and REVENUE

ment that the trustee be

(as

BONDS

bank

a

defined) shall not be
applicable to any trust inden¬

BONDS

so

ture

which

authorizes

rects the trustee

and

di¬

trustees

or

(a)

to invest and reinvest the assets

of

the

trust

solely

in

obliga¬

tions of the Government of the
United
of

States

in

and/or

investment trusts

or

shares
compa¬

nies

RAND

&

registered under the

eral

Investment

of

GO.

1940

from

as

amended

arid

Fed¬

Company
time

(b)

Act
time

to

maintain the assets of the trust
1

Tel.

WALL

WHitehall

STREET, NEW YORK 5, N. Y.

4-3432

.

in the custody of a bank

regulations
to

time

as

be

protection

from

may

prescribed
of

Established

20

&

Co.

1920

PINE ST.

TELEPHONE

(as so

defined), under such rules and

Teletype NY 1-838

Boland, Saffin

place and

to

NEW

YORK 5,

N. Y.

WHITEHALL 3-3414

time

for

the

Bell

System Teletype

—

NY 1-535

the

participating
by the Secretary.' "

members

The above amendment had pre¬

viously been discussed with the
special committee of the Ameri¬
Bar

can

Association

American

and

Medical

the

Association

(who had

initially sponsored the

bills)

has received their

and

These bills

proval.

ap¬

currently

are

STATE, MUNICIPAL

being considered by a joint Con¬
gressional Committee and by the

and

Internal Revenue Service.

Employee

Benefit

Plans

Another important development
of

For

over

20 years our

independent financial

advisory service has proved its value to
of

all types

governmental agencies in financial public relations,

improvement of public credit,

sound financing of

capital requirements and other

Consultants

on

Municipal Finance

corporation profit shar¬
ing, retirement programs and

other employee
In

this

fits

for




•

NEW YORK 5, N. Y.

out

ance.

one

of

or

it

each

time.

Such

pension
fixed dollar

more

insurance

*

be

plans
bene¬

participant at

great many pen¬
financed by insur¬

plans

require

to
of

the
the

to

be

-

Incorporated

purchase

the

which

44 Wall Street

New York 5,

N. Y.

de¬

of

great variety

contracts

BYRNE AND PHELPS

some

A

contributions

wholly

may

that

sion plans are

annual

benefit plans.

connection

provide

voted
PINE STREET

company

shares in

future

70

investment

mutual

must

Wainwright, Ramsey & Lancaster

REVENUE BONDS

reaching

now

significant proportions, is the use
simplified plans employing

pointed

individualized service are invited.

years,

of

problems of

public finance.
Inquiries about this

recent

are

Telephone DIgby 4-2410

in¬

about $100.

considera¬

Committee

brief amendment

in¬
and

one-half years, since this method
was
made
available, was $570,

case.

tion

ex¬

original

trustee in any

as

is
all

Application forms are
investment dealers,

furnished
who

invested

bank

for

made

sion

is

mutual

•

shares

pany

reasons

it therefore appears that, in addi¬
tion

use

pro¬

initial deposit of any amount,

one

economic

of

income

current

to

this type of service.
For

accumulation

Typical

cannot afford to maintain the sub¬

stantial

investment

pants.
an

with

maintain

promising growth in the

"cumulative

the

many of the country's
largest trust companies and com¬

ments

are

desirable

is

vestments,

banks

underwriters

company

contributing materially toward

combina¬

a

which provides for

profit-sharing

com¬

grams," "periodic investment
plans" and similar methods for

of return

is

concern,

"combination" plans

mercial

ever-widen¬

of

be in insurance.

to

to the

shares among corporate and

pany

perhaps 70% to be invested and

30%

addition

approach,

new

higher rate

a

primary

*

relatively

currently

low.
A

*

L

size, many of which prefer to
avoid fixed dollar commitments.

pen¬

of

operation,

company

requires

payout

»

ing market for investment

the

of

ment staff necessary

"We,

so

* t

sion plan field.

tion

"If under the terms of the trust

agreement

i

designed for
Such plans

especially
plan use.

com¬

proposed statute for the
protection of the Treasury, inex¬
pensive means for investment of

held investment companies would

■0'

in

opportunity for diversi¬

an

»

done

also

the securities

panies, which are subject to regu¬
lation by the Securities and Ex¬
change Commission, and which
to

I »»

I »

So

publicly-held investment

furnish

*

|.t ♦

fairly expected to meet their pri¬
mary objectives and the Ameri¬
can life insurance companies have

are

not preclude a

States Government

size.
obvi¬

are

cases.

"United

yk-

investment for

funds.

cases

suggest
un¬

Com¬

should

propriate

it acts only as
of
the
retire¬

point in the pending

before passage.

retirement

of

**

retirement

securities

desirable

a

agement advice.

however,

suggest,

in

of

ously

for

relatively

Government

means

per¬

rule have

broadened

of

fication

specifically

where the trust agreement by its

powers

investments

37

.(2397)

ft*

U

* »

u

particularly appropriate forms

trusts

circumstances

respects to the investment
banking business, as many states
previously tied to the "legal list"

sive

M

to the individual except under the

other

chase other types of investments,
whether common stocks, pre¬

t!

«.

173

add

in

require

(b)(2)

restricted

fined in

would

Section

new

would

hold the

widening

market

4

the

>

.

4

requirement
undoubtedly is to insure that an

Bankers

pany

tion

The

Benefits

Besides

»{..„•

Teletype NY 1-1474

38

38

(2393)

The Commercial and Financial Chronicle

Thursday, December 17, 1953

...

'■

Continued

from

That

37

page

to

stability

early

the

funds

Mutual Funds and the

this

days of

is

lowing

made

who

would

investors

by

they

reason

facilities

individuals

otherwise

not

that

and

profitably
cient

from

14

be

from

relatively small amounts of money
which the investment plans pro¬
vide.

More

and

firms

more

a

desirable

reached

low

its

bought

and

the

Answered

question

as

of

to

whether, in

a

205.62

close

of

the

funds

in

that

970,000 in

pe¬

the

redemption

at

but

year,

the

these

period sold $27,shares and had

new

of

only

$10,362,-

000.

falling

of

177.20

to

redemptions

prices, open-end
investment companies might, be¬
cause

privi¬

the last

the

first

the

week

week

sharp break
June, 1950,

of
of

War,"

to meet

tional Association of Investment

redemptions. On this sub¬

Secretary of the NAIC, made
in

a

tual funds

ad¬

recent

disclosing

dress:
"A

made

survey

Stock
of

he

the

(by

Exchange firm)

largeset

of

Mutual

shares

large

a

continued,

Companies made
covering 64 of the

ject, Mr. John M. Sheffey, Execu¬
comments

formulated

forward

the

plans

for

which

step,s

This

is

the

bankers

generally.

establishment

of

a

Public Information Committee.

At

in its efforts toward
to

exist

of

the

sion,

in

of

request

this

the

SEC

issued
the

Des

four

and

for

that

that

groups (showed) that from Aug.

"The

a

larger
same

sales

exceeded

Na¬

survey
mu¬

week,

of

new

redemptions

that portfolio purchases by

the funds themselves

Fund

ties

of

Moines

Spokane
Paul

soon

A.

doubled

their

more

sales."

than

NAIC

had

been

for

ment

Paine,
Webber,
Curtis, Boston

to matters relating to Fed¬
legislation, such as SEC rules
and
regulations, tax
problems
and related subjects. At the same
time, the industry has had in
eral

the

importance

ordinated

public

of

a

co¬

relations

pro¬

gram.

The executive committee of the

organization recently submitted
specific proposals for such a pro¬
gram.
If approved by the mem¬

bership,
be

the

plan

put into effect.

will

promptly
Its scope will

be limited to such efforts

as:

pub¬

lic relations and educational work
with

the

financial

press,

publishers, educators,
news

editors,

columnists,

commentators,

librarians,

New directives

A

$100,000 has

tentative

as¬

budget of

been set up

end

relating to
companies

investment

pany

of

and

the

Executive

National

Securities
tive

Robert

Committees
<of

coming

more

of the

part
of

mutual

believe
be

on

This

ness.

a

Robert

bankers

who

Cleveland

Putnam

us

Distributors,

Three Partners for

to

steady progress will
made, through cooperation by

issuers,

A.
On

un¬

V.

dealers, in solving

the

remaining problems in
dymanic field of investment.

for the

Fund

Inc., Boston

seek

encourages

company

Shepard

Charles M. Werly

that

investment

O.

Prescott, Shepard & Co., Inc.

well-rounded busi¬

fact

Wiesenberger Co.
Jan.

2.

this

Alvin

Tomaselli

Underhill

partnership
berber

Respectfully submitted,

and

will

Ruml, Arthur
Arthur

be

in

C.
to

Arthur

Wiesen-

Co., 61 Broadway, New
City, members of the New

York
York

COMMITTEE

been

associated with

L.

some

time.

,

Robert

192 5

J.

admitted

&

INVESTMENT COMPANIES

FOUNDED

Co., Inc.

Lord, Abbett & Co.

be¬

are

&

New York

and more an integral
day-to-day activities

investment

to carry

funds

Baird

Harry I. Prankard, 2nd

signed to deal with sales practices.
In
summary,
it can truly be
that

W.

Milwaukee

states have adopted the new
regu¬
lations which, in general are de¬

said

Morgan

Ludlow F. North

were

Administrators, effec¬
1, 1953.
At least
15

Jan.

&

Philadelphia

open-

Association

L.

Jackson

The Wellington Co.

adopted by the Investment Com¬

derwriters and

colleges and various types of
sociations.

"Blue Sky" Regulations

con¬

fined

Manage¬

Co., Chicago

Robert VV. MacArthur

purpose.
New

Just

Television Shares

changes in regulations which, in
the iight of
experience, it believes
have accomplished no worthwhile

October, 1953, the activi¬
the

Henderson

Pacific Northwest Co.

1950.

recommendations

C.

Harper Joy

be¬

will

Howard, Inc.

T. C. Henderson & Co.

Commis¬

Committee

submit

Theodore

State¬

in

&

Boston

remov¬

restrictions

Policy

York

Eaton

during the

progress

impractical

ment

last few weeks,

investment

to

New

Charles F. Eaton, Jr.

Investment Companies

encouraging
year

.

Kidder, Peabody & Co.

Committee of the National Asso¬
ciation of Securities Dealers made

lieved

Program

should prove of interest and value

Korean

the

leges of shareholders, be forced
liquidate underlying securities

these

Relations

has

mind

"Following
in

to

tive

including
1932."

i

Dudley F. Cates

.

Walter

from

Again

During this year the drop in
stock
prices again brought for¬
ward, in some quarters, the old
riod

1931 and

Within the

Until

Question

year,

Planned

NAIC

new

1946:
"Dow-Jones Industrials broke

Old

period, sales
redemptions by four

1930,

another

He observed that during

The

1927-36

every

Public

point,
of

proposed

Federal Regulation of Sales

same

ing

come.

,

in

1929,

$11,525,000

Sheffey pointed out that a
similar example was given in the
break of 1946, a rather prolonged
decline.

firm's in¬

the

this

of

year

activity.

fol¬

Sales exceeded redemp¬

one.

tions

the

Mr.

cumulative

effect of increasing the

257.67

to

$3,559,000."

are

to

1953, when

those bonds and redeemed only

finding that as the number of
plans in operation increase, they
produce

276.74

investors

these

15,

Sept.

market

effi¬

of the

for handling

mutual
the

first

Literature

exceeded

the
Dow-Jones Industrials dropped

do it

can

to

from

back

address:

Investment Banker
business

the
in

clear

comment

"In

tain

dates

•

•

..

Osgood, Chairman

Stock

Exchange.

All

have

the firm for

Vance, Sanders & Co., Boston

Louis Bookman With

Edward S. Amazeen
Coffin & Burr,

Inc., Boston

Spingarn, Heine Co,

Herbert R. Anderson
Distributors

Group, Inc.

Louie

New York

Hugh

staff of
Wall

Bullock

Philip

L.

Street,

members

Calvin Bullock, New York

Deiaware

Bockman is joining the
Spingarn, Heine & Co., 37

Exchange.

Carret

of

New

the New

York

City,

York

Stock

Mr. Bockman

was

for¬

Granbery, Marache & Co.

merly Cashier for Wilson & Marx,

New

Inc.

York

Fund
A

MUTUAL

INVESTMENT
Prospectus

upon

from

your

dealer

or

the

FUND
• Bond Series

request

investment

•

undersigned.

•

Delaware Distributors, Inc.
300

Broadway, Camden 3, N. J

•

Balanced Series

Preferred Slock Scries

Income Series

I Stock Series

Speculative Series

A

Mutual

&
Investment

•

Growth Stocks Series

Fund
Information Folder and

Prospectus

on

Request

NATIONAL SECURITIES & RESEARCH
CORPORATION
120

Prospectus
from

may

Broadway, New York

5, N. Y.

be obtained

investment

dealers

EATON & HOWARD

or

BALANCED

EATON

EUND

& HOWARD

STOCK FUND

PROSPECTUSES OF THESE TITO INVESTMENT FUNDS MAY
BE

THE
200

PARKER

Berkeley St.

Boston, Mass.




120

So.

DETAINED

FROM

YOUR

INVESTMENT

DEALER

OR

CORPORATION
EATON
I.n

Salle

Chicago, 111.

St.

453

S.

Los

Spring St.

&

HOWARD

INCORPORATED

Angeles

BOSTON
24 Federal Street

BOSTON

333

Montgomery Street

SAN FRANCISCO

Number 5282

Volume 178

.

.

The Commercial and Financial Chronicle

.

(2399)

Continued

from

GRAY,

35

page

EDWARD

New

York

C.*

Stock

Exchange,

HAYDEN, DONALD VV.
Eaumgartner, Downing & Co., Baltimore

York

New

GREEN, J. BRADLEY*

Guaranty Trust Company,

In Attendance at IBA Convention
FINNEY,

Jr.,

FISHER,

&

Co.,

CHARLES

Singer,
FISHER,

ROBERT

Blyth

&

Co.,

Blunt

Ellis

&

Hanrahan

&

Polger,

Nat'l

Co.,

Yarnall

Co.,

&

Kidder,

EDWIN

Kaiser

R.*

Co.,

San

FORREST,
Paine,
Los

Francisco

GEORGE

Detroit

Clark,

M.

&

Curtis,

FORREY, Jr., GEORGE C.
Indianapolis

Geo.

& Share

Bond

Corporation,

Indianapolis
FOSTER,

A.

SCOTT*

DAVID

Rand

&

Co.,

FREDERICK,

New

PAUL

York

New

York

GLYNN,

Howard.

„

,

of

J':"

Robert

Labouisse,

Friedrichs

&

GOODWIN,

&

Co.,

Jr.,

Securities

Orleans

.

ARTHUR

Folger,

S.*

Nolan-W.

Hibbs

B.

&

GRAHAM,

Co.,

First

Washington
FROST,
Assn.

Fort

HORACE
of

Stock

W.

&

Exchange Firms, Boston

Denotes

Mr.

and

T.

Mrs.

B.

J.

W.

Chicago Tribune,

A.

New

St.

Louis.

Jr.,

Co.,

Investment

York

IIAPP,

of

Fort

HARVEY

Lemon

Win.

B.*

&

Co.,

Washington

HILSON,

R.*

-

JOHN

A.

&

Ingen & Co.,

New

Stifel,

■

WELLINGTON

Allen

Lynchburgr

/

&

Co.,

Philadelphia

'
York

New

Washington

Jr., JOSEPH C.*
Bullock, Chicago

Calvin

S.*

HOWELL,

WILLIAM

Hallgarten

H.*

HO YE,

Chas.

S.

Co.,

W. Scranton

HUDSON,

York

&

F.
New

York

WILBUR G.

FRED

Co., New Haven

&

W.*

Ball, Burge & Kraus, Cleveland

CLIFTON A.
Bosworth & Co., New York

Continued

on

page

83

Certificates of Participation in

■■■■■■■■■■■■■■■■j

Co., Seattle

INVESTMENT

FUNDS

J.
&

HENRY

Harris,

Incorporated,

investing

their capital

L.*

Sachs

&

Co.,

IN

York

New

NORVIN

&

Company, New

National

■■■■(■■■■■■■■■■■
'■(■■■■■■•(■■■■■•■
■■■■■■■■■■■■■■■■a

Citv

Bank,

BONDS

York

New

(Series B1-B2-B3-B4)

York

HART, MAURICE
*'

New

York

New

York

■■■■■■■■■■■■■■■■a

l< ■■■■■■■■■■■■■■■■■

Hanseatic

Corporation,

Custodian

Sutro

.

&

Co.,

San

STOCKS,

PREFERRED

HARTER, ROBERT L.

H^ai ■■■■■■■■■■■■■■■■

■■■■■■■■■■■■■■■J

C.

Harper & Son &

HARRISON, JAMES L.»

■§■■■■■■■■■■■■■■■■■

■■■■■■■■■■■■■■■■3

(Series K1-K2)

Francisco

■■■■■■■■■■■■■■■■■■■a

■■■■■■■■■■■■■■■3

HASSMAN, ELMER G.

■■■■■■■■■■■■■■■■■■■a
■■■■■■■■■■■■■■■■■■aa

■■■•■■■■■■■■■■•31

■■■■■■■■■■aimil

A.

!»■■■■■■■■■■■■■■■■

Lecker

G.

&

Co.,

Inc.,

Chicago

■■■■■■■■■■■■■■■■a

■■■■■■■■■■■■■■■■3|

HATCHER,

■■■■■■■■■■■■■■■■
(■■■■•■•■■■•■■I

MAURICE

First

National

Chase

White,
HAWES,

FOUNDED

1928

ROBERT

Jr.,

Funds

3, PA.

L.*

Bank,

New

York

HARDIN

&

Sanford,

Prospectus from

New Orleans

your

local

investment

ROLLING

Turben

Tke

W.*

lAeystone Company of Boston
50

New York

&

Co.,

Congress Street, Boston 9, Aiass.

Cleveland

We

Bond Fund
OF

BOSTON

Bulloch Fund

ISAassachusetts
Investors Trust

Canadian Fund

Dividend Shares

Massachusetts Investors

Malion JFide Securities

Growth "Stock Fund

cdtmd

Century Shares I

rus t

Calvin Bullock
Established 1894

Canada General Funi3
One Wall Street

A prospectus relating to
investment funds may he

the shares of any of these separate
obtained from authorized dealers or

VANCE, SANDERS
111

DEVONSHIRE

&

COMPANY

STREET

BOSTON

Broadway




I.OS ANGELES

CHICAGO

YORK
lie

South LaSalle Street

2io

W

est

Seventh Street

dealer or

H.

JOHN

Merrill,

STOCKS

(Series S1-S2-S3-S-I)

GILBERT*

Hattier

Herald Tribune,

HAY,

COMMON

Dallas

Harris Trust & Savings Bank, Chicago

HAXALL,

prospectus from PHILADELPHIA

Bank,

National

IIATTIER,

>

M.*

4

HATCHER,

fti

Inc.,

Association,

DICKINSON

P.

HARRIS,

(■■■■■■■■■■■■■■■a

nmuuanatnHi

NEW

Mason,
C.

Horner, Lynchburg

Nicolaus & Co.,.Inc., St. Louis

Chicago

York

!«■■■■■■■■■■■■■■■■■■■■■■

iimmuiNinuuiirJ

!

B.

HOUSTON,

Hewitt,

Wertheim & Co., New

Braun,

B.*

SALLIE

Edwin

Wertheim

York

HIPKINS,

Philadelphia

A.

HARRIS, DAVID
Sills, Fainnan

C.*

■■■■■■■■■■■■■■■■■■■a

■■■■■■■■■■■■■■■■■■■J

Chicago

Bankers

WILLIAM

HARPER,

■*■■■■■■■■■■■■■■■■■»■■

■■■■■■■■■■■■■■■■■■■■a'

Co., New York

Eldredge & Co., New York

New

Co.,

EDWIN

Horner &

HORTON, CHARLES*

Boston

Worth,

■ «■■■■ ■■■■■■■■■■■■■■■■■■■■■■■■

■■■■■■■■■■■■■■■■■■■IfJ

&

WILLIAM

EDWAR.D

,

Penington, Colket & Co.,

I,.*

Peoples National Bank, Charlottesville
HILLS,

Co., Incorporated

EDWARD

HARKNESS, ROBERT B.
Dwinnell, Harkness & Hill, Incorporated,
Bank

■■■mmmumm■■■■■■■■

**a*"a**aa^H^H

MAX

&

Jr.,

HORTON, ARTHUR
Houston

duPont

Kreeger

Chicago

Co.,

E.

Globe-Democrat, St. Louis

Goldman,

J222S22

Jones,

HII.DRETH,

&

HORNING, BERT H.
Philadelphia

E.

CHARLES
I.

t.

Washington

HARRIS,

■a"aaa"a2H"aa«"»""«

HORNER,

P.*

WILBUR

York

HANSON, MURRAY

M.*

E.

DUNCAN
Van

&

J.*

&

With

Fridley & Hess,

Chicago

Co.,

DOUGLAS

Shields

Drexel

.

HARRY

Morgan

HORNER,

Francis

New

Byllesby

HOPKINSON,

'

*

'

K.*

Bosworth &

HANSEL,

Worth

Johnston,
GRAY.

*

Securities" Corporation,

M.

P.

Scott,

ARLEIGH

Association,

L.

New York

C.

Woodcock, Hess & Co., Inc.,
HESS,

Winthrop & Co.,

Braun,

A. JACKSON
Exchange Commission,

National

GRAM,

-

York

S.*

Bankers

ROBERT

Day & Co., New York

L.

HESS,
-

HALLOWELL, HENRY R.*
Hallowell, Sulzberger & Co.; Philadelphia

Canada,

Washington
FRIEND,

R.

York

-

J.

Co., Des Moines

THOMAS

York

New

HOPKINS, JOHN

THEODORE
&

New

Co.,

JENTRY

P.*

HEWITT,

'

Angeles

BERTRAM

H.

KARL

HEWITT,

York

New

HERZER,

G.

ROBERT

HOLT,

RALPH*

Henderson

Co.,

V.

Washington

Heimerdinger, '

Elizabeth

J.*

Nashville.

HAMMOND,
Assn.

JOSEPH

Haupt

SHELBY*

New

Inc.,

'

Los

C.

Bodine,

J.»

&

Investment

Hugh W. Long & Company, Inc.,

York

New

&

York

D.*

Day & Co., New

Equitable

-

B.

Heilner & Glynn,

GOLDSMITH,
Ira

Weil,

Company,

.

WAYNE*

Bank,

Jr.,

Blewer,

T.

Inc.New

DENTON,

L.

HALLORAN,

New York;

Dealers

M.

HALLIBURTON, GUS

»

Co.,

Woody

&

Brothers

HOLMES,

,

World-Telegra^ & Sun, New York

Richmond

Inc.,

C.

Barr

■

Cincinnati

Corporation,

C.*

HAMPSON, PHILIP F.

California

Co.,

Jr.,

'

HEIMERDINGER, JOHN M.*
Walter,

Forgan

HOLLAN, JOHN
'

G.*

Woody & Heimerdinger,
i
:

HENDERSHOT,
JOHN

HALLE, STANLEY

J

,■

GERARD*

GLOVER, W.

O.*
&

FRIDLEY, EARL G.
Fridley & Hess, Houston
FRIEDRICHS, G.

;

1

York

York

Montreal

Williams

Baxter,

New

New

J.

Allyn & Co.,

Hanseatic

Jr.,

Halle & Stieglitz,

&

York

H.*

HALL, EDWARD B. 1
Dean .Witter & Co.; Chicago

.

C.

GEORGE

Investment

JAMES*

R.

-

C.

GINGRAS,

Pershing & Co., New York
FOSTER,

HALL,

\

M.

Gibbons

B.

GILLIES,

Walter,

CHARLES

Clore,

New York

JOHN

Cincinnati

H.

HODGE,

PAUL

York Times,

HERBERT,

York

New

York

GEORGE

New

Jr., WILLIAM G.
Russ & Co., San Antonio

Philadelphia

HEIMERDINGER,

York

New

KURT

Tripp & Co.,

M.*

Co.,

York

HENDERSON,

Ripley & Co., Inc., Chicago

GIBBONS, Jr.,

Gregory,

York

HAIGHT,
„•

Co.,

Co.,

EDWARD

Harriman

1

&

&

&

New

WILLIAM

Mason-Hagan,

'

' *

J

B.

P.

New

EUGENE

Dodge

GEORGE,

Jackson

Angeles

V.

New

H.

<•

WILLIAM H.
DeHaven & Townsend, Crouter &

-

C.

HEFFERNAN.

Incorporated,

Gregory,

Republic Company, Chicago

JOHN

HOBBS,

HOBSON, Jr.,

Dtmpsey-Tegeler & Co., Los Angeles

York

HAGAN,

EARLE*

Hayden, Stone
GEDDES,

Webber,

Bonner

Philadelphia

Co.,

Central

York

New

WILLIAM

III,

GRUNEBAUM,

'

New

&

&

Dealers,

FRANCIS

&

GATCHELL,

Aldinger & Co.,

Bonner

H.

ROBERT

Jr.,

E.DDE K.

HECKT,

Bank,

& Son,

GREGORY,

Exchange, New York

Peabody

Reynolds

FORDON, RALPH
Fordon,

"

KEITH

Co.,

GARDINER,

York

New

NEAL*

1

GALLAGHER,

Washington j

FLYNN, GEORGE T.
Hornblower & Weeks,
FOLEY,

W.

HERBERT

&

York

'

Company, New York

Stock

GALLAGER,

Hibbs

National

GREGORY,

New
York

New

W.*

B.

Chase

Gregory

Securities

As n.

FUNSTON, G.

J.*

Worcester

Nolan-W.

Jr.,

Tjkist

New

R*

GREGORY, GEORGE M.

Washington

J.

Simmons, Chicago

ROBERT

SHELDON

"

S.

FULtON, WALLACE
York,

WALTER

CHARLES

FLEMING,

Bankers

Pittsburgh

W.

New

FITZGERALD, Jr.,

FLEMING,

FULKERSON,

Seritaner,

GREEN,

Chicago Daily News, Chicago

York

New

N.

Deane &

CHARLES

FRYE,

HOWARD*

Stearns

Bear,

HAYS,

39

New York 5

'
\

40

The Commercial and Financial Chronicle

(2400)

A New Era for Private
Warren H.

IBA Public Service Securities Committee hails

Chairman of the IBA Public Serv¬

policy, which is opposed to further government competition with private utility

ice
1

Securities Cbmmittee, on Dec.
the report of his Com¬

projects. Says this should result in

issued

the

to

vention

of

42nd

the

Annual

Con¬

Investment

tion of power

Bank¬

Association, meeting in Holly¬

ers

wood,

facilities between

liberal laws and

more

Fla.

The

full

text

this

of

follows:
It

.to

is

this

record

committee's

o

inspired

f

the

prise

our

an

predeces¬
have

public

truism

sig n i ficant
changes which

decades,
than

promise

Equit¬

stand

and

rassment

•trend

t

which

r

Warren H. Crowell

all

enter

our

full

^ soHdify. We

next

expansion

cognizance

from

our

in

recorded
is

Federal

The

Ad-

the

power

to

recommend

finds

busi-

Government

with

view

a

of

that

Government

,

.

businesses bave been

surrender

»

a

-

to

policy in

ernment

will

not

utility projects,
parallels
ion

the

the

is

which
a

the

policy

new

both

of

Federal

Power

was

...

-

and

expansion

requirements of the next 10
will

demonstrate

(h|t

the

ba§

years

the1 "socially

to

diction

rjgbj.

financing

named

is

noteworthy

H00ver Commission

new

forced to

It

a

2-3-member

study

"task

Government

ac-

be marketed for the benefit
His

a

of

detailed
mercial

plan

S.

economic

a

the

com¬

any

branches,

or

of

our

our

neutralized.

should

be

of

..

,

en-

Although
remains
that

tion

and

„

new

Power

sions

such

The

Massachusetts
authorized

a

New

in

case

panding withdrawal from a rigid
"net original cost" formula to that
of "fair value"
occurred in

Maine.

*

Three

It

is

committee
should

judgment factor

or

Illinois, Maryland and
the

opinion

that

devote

public

derstanding

efforts

and

toward

private

vs.

rates

and

Resources

over

a

and

rendered

test

a

public

a

new

one-half
in

inflation, the cost
plant is about two and

times

in

the

service prior to
on

cost

the

the

lags

basis

too

far

establishment
will

and

cover

the

is

-

the

Administration

&

Canadian
7

or onto

Stock
Stock

Branch

62

unfair

regulation; now attract
industry as a whole
much enlightened under-

reveals

a

investors

who

Continued

on

QUEBEC

-

O

Underwriters and Distributors

Members Montreal Stock
The Toronto Stock




-

Security Issues

Canadian Stock

Exchange
Exchange
Exchange

Hart
507 Place

d'Armes, Montreal

Exchange

Exchange

West., Montreal

City, HAnover 2-6625

TROIS-RIVIERES

CHICOUTIMI

Greenshields & Co

Offices:

William St., New York

ST.

-

SHERBROOKE

JOHNS, P. Q.

Ottawa

ex¬

fixed

charges. Because of this

.

°f

Head Office: 23# Notre
Dame St.

rates

must

utility

Greenshields & Co Inc

Members: Montreal Stock
Exchange

net

behind

lag, there
Kales
Formerly a few leading utility is danger that in some sections
companies carried the burden of earnings will be insufficient to

Association of Canada

Savard

of

of

increased

Members of The Investment Dealers'

Canadian

plant

operating

Sav ard, Hodgson & Co., inc.

MONTREAL

of

cost

World War II.

Sti

•

by

facilities. As

power

$2,000,000,000—600 branches spanning Canada

—

is

which

result of past

of

of original

power

This

one

imperative

more

of

for ac- Regulation

up

but

bal¬

manage¬

investor.

crusade

new

expansion
a

consumer,

the

San Francinco, 333 California St.

230 Notre Dame St. West

fair

realistic

UNITED STATES OFFICES:

Chicago, Special KepresentativeV Office, 38 South Dearborn

a

un¬

for

need

more

between

ment,
is

to

Canada's First Bank

New York, 64 Wall St.

this

regulatory

the

of

of

association

our

Montreal

of

the

Supreme
Court
$10 million rate in¬

in

'

England

which

Montreal.

Bank

note

we

Supreme Court deci¬
as

Telephone

penses

resisting

Bonneville

commissions,

examples of welcome reversion

recent State

concept will be experienced when which
the Senate reconvenes,

the

with

came

consequently

K

application

contracts

un¬

unduly

im-

more

granting to four private utili20-year

areas

of

the unprecedented demand for the

of

or

Office

iovem-

ity companies in that State
,

jurisdiction

a large majority passed the Capehart-Martin-Miller bill which
would permit the development of

a

of

As evidence of this

enlightened

the

not

to

of

applications. In the

der

restrictive

wider

ties of the Northwest Power Pool

Canadian

Head

be

partial nature.

regu¬

to

Federal

the

new

developments,

of industrial

toe

reseu^u by the federal govern

before this bill

time

provision

clear analy¬

and

surveys

.^^ed bT

rate

.

additional hydroelectric power at
Niagara by private enterprise,
represented by the five utility
companies. The Senate adjourned

the- "preference clause"
in effect, administration

.

conditions. To receive this

larly, write
IJ.

you

development ^a
^

in

monthly Business Review

Canada's

.

,

employed by the nontaxpaying Power Authorities will

CANADA ?

help. It brings

great

sis

pow|r
.

,

practices

'

our

genlrl

Questions

aUng and transmissl0n Questions
.

tion of the need for rate increases
also in accelerated action on

but

gress. Last summer the House by

of

principles"

You'll find

*pll

pendtog

transmisSi0n

state

crease
which the Department of
of Public Utilities had
rejected. Other
decisions lending hope to an ex¬

courages the hope that the unfair

Keeping up-to-date
f

on

several

ance

bmmi——____set Federal power rates at a level
as low
as possible consistent with
"sound
business

on

,

of

power

promise

mav

attitude

not

nor at the expense

taxpayers."

dtSs
..

between

private

The

„lif,nmpnt

non-

in

in

that power generated
Government projects "should

the

h

prob¬

bills representing each of the entitifs lnuthe Niagara Redevelopment
Plan have been submitted to Con-

belief

chosen few

and

deveiopments.

Commission.

Recently, Federal objection

facilities

0f

government

was

tax_

COoperation and

dupiication

chambers.

p^ing

pro-

digious

to

of

era

new

regulatory

regulatory commissions is happily
being noted, not only in recogni¬

as

to private enterprise in the
utiiity industry should result in a

in

withdrawn to the Hell's Canyon
Dam and Power project long proposed by the Idaho Power Company,
and
now
pending before

com-

jant

by the House AppropriaCommittee and other hey

committees

private utility
the Northwest,

Careful nurturing of this stimu-

which

affirmed

to

future

of

panies in

Gov-

stability and

stock¬

regarding

ize, if not liberalize, laws and
policies regarding rates. Improve¬

status

need

no

and

of

through

emphasis
must
be
placed at state levels to modern¬

importance of this dethe

planning

private

oppose

program

to

is

consumers

or¬

Particular

Utility Districts of

There

the

cision

pertinent significance

at this meeting

us

power

the

operated

sold

Public

area.

detail

more

withdrawn to the Pacific Gas &
pdvate inMor haDe Klecric dam and power project
to
"this or that" interest but a
been liquidated.
Negotiations for on the Kings River
realistic "middle of the road" enthe
sale
of
Government
owned
tn a statement issued in August,
deavor to create
a
hea thy ellsynthet? rubber lants b Jan. Secretary of Interior Douglas
mate for continued growth under
^ 1955 is a major step in the McKay offered the heartening
judicious regulation.
The
no,
not

„
is

the

of

the

to

and

operating

Reviews

detriment

of
also

and

relations

lems.

energy.

without

any

conducting studies Last May Federal opposition

industry

Several

Ad-

with

field

warranted.

the

new

ministration
ministration

_t

holders

ment

Power Policy

Of

this April

in

progress

so-

busi-

toward
feasible
elimination
over-lapping operations,

period

that

oolfcv 'of the
of thTn^Fe^f
Federal
policy

com-

"creeping

Government

been

private

strive

with

not

activities which compete with

ness

will

y

the

firmly

more

must

retreat

Notable

ministration

utility in-

u s

of

already

a

of

the
d

in

authority
changes it

long-awaited turn to the nght has

ha¬
is

we

against

ness.

encroach¬

that
or

cialism"

years

realize

we

ever

after

ment

of

developments of the last two

able treatment

f

cornerstone

tivities

advancing standard of living.
evaluating the experiences

ably espoused
in previous re¬

o

the

elements
private
enter-

In

so

and

20

power"

that

remains

vigorously and

ports.

of atomic

use

appreciation

opposition

public

closer communication with

and discusses briefly questions of

year

competitive bidding and

privilege

ganized
good

the

initiation

sors

current

standing and

power

and private enterprise. Calls for

government

policies by state commissions regarding rates.

public utility financing in

report

Administration's

new

of cooperation and nonduplica-

a new era

.Thursday, December 17, 1953

Utility Industry

Crowell, of Crowell,
Weedon & Co., Los Angeles, Calif.,

mittee

..

Quebec

Sherbrooke

Toronto

page

_be

79

\

Number 5282

Volume 178

.

The Commercial and Financial Chronicle

..

(2401)

41

Canada's Future Potentialities
W.

of

Scott

Pearson

Wood,

IBA Canadian Committee discusses

Gundy & Company, Ltd., Toron¬
to, Canada, on Dec. 1, delivered his
report as Chairman of the Cana¬

taken

Bankers

of

Association

America,

and role

holding its 42nd Annual Conven¬
tion at Hollywood, Fla.
The

text

to

the country's future

out

over

gregated

about 790,000 and
considerably above levels for

was
any

similar period since 1930.

program

Through
the population growth in Canada

Canada's

well

as

in

as

the

United

States,

domestic and neighboring markets
for production have been greatly

is inextricably tied to trade policies of U. S.

economy

roughly 28% of the total was repayable after 10 years and about
Canada's eco¬
30% repayable from five to
10
nomic progress
years. Canada's immediate refundhas gone hand
ing problem is relatively simple.
in hand with a
Excluding
Treasury
Bills
and
capital invest¬ Notes
(both revolving funds and
ment program
held largely by banking instituof
unpr ecetions, including the Bank of Candented size
ada), only about $600 million of
and

scop e.

Annual

This

of the

Report

Canadian
C

i ttee

o m m

sketches

briefly
Scott

few
more

sign ificant
developments

that have already taken

the

on

and free of many excesses normally associated with booms. For

instance, a breakdown of the national income, by industry, for the

Foreign Trade
The pastwar period has been ac-

companied by notable expansion

8X'

place, and

attention

focuses

very
a

the

of

further encouragement to investing in the industrial growth of
the country is the absence of a
tax on capital gains.
a

in
connection
with
taxes,
a two years 1946 and 1952 shows the *** foreign trade.
Comparing the
study* for Canada showed that tax overall increase well distributed, calendar years 1946 and 1952, excollections by governments (fed- with only small changes in the ports to all countries
increased
eral, provincial and municipal) proportions represented by manu- from $2,339 million to $4,356 millast year approximated $5V2 bil- facturing, retail trade and other lion, and imports from all counlion, whereas in 1939 they were key industries.
v
tries, from $1,865 million to $4,the funded debt matures within iess than $1 billion.
It may be
Dynamic factors underlying the 030
Last year, amongst all
the next 12 months.
worth noting that sales and other country's
economic progress in♦ Canada
With respect to taxes, govern- indirect
taxes comprised about elude growth in population, for- ?a
e? •
m
exports and
ment policies have tended to pro- 51% of the preliminary 1952 total, eign trade and capital investment. imP°rt_s*
During the seven years 1946vide real encouragement for the with direct taxes on personal in1952, in relation to Canada's gross
Population Growth
development of the country's basic comes 24% and on corporations
national1 product,
exports aver¬
wealth.
For instance, the excess 25%.
From
1946
to
1952, Canada's
aged
nearly
19%
and
imports
profits tax was repealed at the
population (excluding Newfoundend of 1947.
Special depreciation
Gross National Product
r
.,
.
,,
land in both years) increased from
Growth in
the gross national an estimated
allowances permit defense and al¬
12,292,000 to 14,056,- more
States absorbed slightly
than half of the total ex¬
lied industries to write off costs product probably provides the best 000 or over
14%; the comparable
more
rapidly than would other- overall measurement of Canada's increase in the United States was ports and supplied close to threequarters of the total imports.
wise be the case.
These special economic progress in the postwar u%. The rate of Canada's

-

then

and calls attention

Canada's tremendous capital investment

played by U. S. investors in Canadian securities. Points

II,

Since the end of World War

P.

on

Canada

enlarged.

report follows:

William

economy

into

the past seven calendar years ag¬

Committee's

the

of

place in Canada's

potentialities. Gives data

dian Committee of the Investment

Immigration

significant developments that have already

country's future potentialities.

ri"u

popu-

have

particu- period.
Between 1946 and 1952, fation growUi overlhis ^periodreCanada's trade pattern shows a
shipbuilding Canada's gross national product fleets partly a higher rate of na- m**ch higher degree of market
ft seems appropriate to recog¬ and steel industries.
Special write- increased by roughly 89%; the tural increase and partly a more concentration than that of most
nize that government policies have off
privileges also apply to explor- comparable figure for the United active immigration policy.
- leading trading nations.. For exhelped to provide a proper envi¬ ation and prospecting expenses in States was around 65%. On the
ranaH,,.
.
ample, last year two countries, the
ronment for broad economic prog¬ oil and
mining industries.
basis of the respective populations th
f
^
United States and the United
allowances

Government Policies

larly

proven

beneficial

to

Legislation
With respect to

debt reduction,

since the end of the

war

'Shares

the

active

assets

(see

Table

below);

the unmatured funded
consists

which
and

other

Treasury

government

debt

Funded

fiscal

of

years

over

was

debt,
bills

securities.

the past

reduced

seven

from

a

Repayment of the funded debt
reasonably well. At

Is spread out

end

of

of

the

last

1953,

in-

of dividend payCanadian

from

the deduction

increased

fiscal

year,

the

With

about

away

profit, it

government
half

of

a

that

portion

taxing

company's

only fair that

seems

allowance should

tax

of

some

be made

the

on

remaining

of *be J.wo ^countries,

the

to

shareholders.

glased fr0™ aboat $978 to $1,-

595 or by nearly 63%, whereas the
United States gross national prod.per capita increased from
apoui

already taken, of course,
greatly stimulated public in¬
terest
in
equities
of Canadian
companies and also have encour¬
aged participation, at the owner¬
ship level, in development of the
country's industries. Incidentally,
have

D7

!

*bar\ 49%.
the

cee(jec}

.ss

birth rate for

anv

vear

1922

and the death rate has

tended^

prelim-

inary figure for the rate of natural
increase in

1952

of

18 7

ner

1 000

population is a striking contrast to
the rate of onlv 10 7 in 1939

£*n&dom, together accounted for
of *°*a* exP°rts an(l 83% of
total imports- - Although the de£ree °f concentration in these two
marhcts combined has not al-

tered aPPreciably from pre-war
Continued

on

Nevertheless, despite

page

42

larger percentage gain, Canada's gross national product per
capita still falls substantially be¬
low

that

Canada

of

the

United

States.

scarcely expect to
close the gap until there is a much
higher
basic

can

degree
raw

direction
as

of

fabrication

materials

country itself.

The

should

within

trend

be

in

of
the

this

W ood,

Canada's industrial base broad¬

At

Gundy & Co., Inc.

accelerated

ens.

The

measures

Canada's

&ross national product per capita sjnce

profit which is distributed in divi¬
dends

peak of $16.8 billion to $14.8 bil¬
lion or by about 12%.

the

their

Subsequently pre¬
ferred shares were placed in the
same category, and a second major
step, effective from the beginning

net

over

therefore it should not be confused
with

from

to 20%.

liabilities

of

business

corporations.

"net debt" represents

excess

10%

received

ments

next.

31

deduct

to

taxes

come

pect for the current fiscal year to
March

on

rection, taken in 1949, consisted
in permitting holders of common

plus was achieved in each of the
past seven fiscal years; the seven
surpluses together aggregated
over $2*4 billion and the net debt
was
reduced by that amount or
17%. Another surplus, or at least
a balanced budget, seems in pros¬

The term

enacted to les-

The first step in this di-

profits.

unique record. A budgetary sur¬

-end

was

taxation

double

sen

the Cana¬

has established

Government

dian
a

ea^h

^3tHe

ress.

14

Wall Street, New York 5
•

f

times, people refer to

ada's

as

105 West Adams

Street, Chicago 3

expansion

years

Can¬

a

of the past few
postwar boom. Such a

description may be rather mis¬
leading, because the expansion ap¬
pears to have been well balanced
1 Canadian Tax
Journal, Canadian Tax
Foundation, Toronto, Vol. I, No. 3, p. 314.

Affiliated ivith

Wood, Gundy & Company
Limited
Toronto

Montreal

Quebec

Ottawa

Regina

Edmonton

•

•

Winnipeg

Hamilton
•

Calgary

•

•

Halifax

Kitchener
Victoria

London, Eng.

'

Canadian

^vIaRKETS maintained
Stock orders executed
or

Securities

Complete
facilities for

in all classes of Canadian external

Canadian Slock

and internal bond issues.

Exchanges,

1

STOCKS

BONDS

,■

•

Vancouver

London, Ont.

•

and Bond trading.

on

the Montreal and Toronto Stock

net New York markets

quoted

on

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request.

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Exchange

Montreal Stock
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1857

Vancouver
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HEAD

OFFICE—WINNIPEG

Off ices from Montreal to Victoria

42

The Commercial and Financial Chronicle

(2402)

Continued, from page

mental

41

like
■

g

Pn In

New

whereas
before
1939 the United Kingdom held this

present trading position.

best

customer,

which

Canada imported

year

goods valued at $360 mil¬

exports
should

vorable balance for Canada of ap¬

around

conditions

nancial

in

Kingdom could lead to some en¬

largement in Canada's export and
import possibilities with that mar¬
ket and perhaps extend to other

of

parts

the

Commonwealth

as

Private

1946-1953

Years,

/

and

,

in

the

factor

capital

19.3%

in¬

1946-1953, new public and

well.

mi

•

The

4,026

take

steel

j

there

*

their

and

products

,

of

products,

chemical

and

and

iron

paper

latter

the

end

products

14.3 million

the

galn

tion
w""

.

an

end

increase

fi°nfth^raCC0Unted for?hbout one- t0.?416
$1'million, or more than
807

continue

100.0%

end

of

of

1951, there
from $352 million

with 70% of the

direct investment.

m

There

hp.

of

last

year

nearly 1 hp.
capita of the population. Yet

per

13.1

1945
was

connection, the
a case in point.

of

capacity at the end
to

the

areas

high de¬

a

the
war,
3.7
hp. has been developed,
bringing total .installed turbine

19.7

comparing

coun¬

million

•

yt*

the
some

extension.

industry is

power
Since

8.4

However,
with

in

pressing needs for

are

the

In

5.0

3,913

•

j.

place

Besides, even in
already developed to
further

3.8

2,522

to

try.

13.4

1,123

5,905

...

industries

base

structure.

many
sectors they have
only the initial stages of
developments that seem des¬

gree,

17.3

$29,947

has

industrial

economic

in

demands for

Over the eight

vestment program.
years

progress

tremendous

the

been

Canada's

in

the

Canada's

of

tined

% of Total

1,505

significant

most

strengthened

the

$5,780
5,173

commercial services-..,.

finance and

questionably broadened and

But

Canada:

Amount

housing)

Capital Investment

Perhaps

as

(preliminary)

Government departments (excluding govern¬
ment-owned enterprises and institutions

the

years.

upon

housing,

Thursday, December 17, 1953

marked
Investment

...

from the United States
high levels of recent

imports

United

the

and

Schools, hospitals, churches, etc
Residential housing

be better able to maintain

lion, whereas exports totaled $751
million; the net result was a fa¬
proximately
$391
million.
The
improvement in economic and fi¬

Trade,

Canada

market,

that

to

demands

residential

^uuuc
public acivices biu.il
services such

Manufacturing
Agriculture, fishing, forestry, and construction
industry
Mining, quarrying and oil wells—

Through substantial expansion in

British

heavy

for

(million)

narrow

last

been
for
xui

Utilities

In trade with the United King¬

dom,

and
emu

Sector

Naturally, Canada would like to
the unfavorable balance in
trade
with
the
United
States.

position.

'

8

imports
from Can¬
might upset the

into the United States

and

Public

against

directed

tariffs

have

capital

stantial growth in population there schools, hospitals and highways.

Canada s mure roteniianues
percentages, there has been a de¬
cided shift in emphasis; the United
States has now become Canada's

industries

_

Da|d«| If sllllAC

ada

manufacturing

steel, cement, pulp and paper,
with the subwmi tnc ouw-

and ciicimtcus. nisu,
ctuu chemicals. Also,

...

of
"jl

to

electricity in Canada
mount

sources

and

capacity
ucujaeiiy

new
new

required.

or

With

water

permitting

DOtential

of

66

construc¬

is
is

an

million

urgently
urgently

power

re-

estimated
hn

Can-

^da.s

present installations;' large
they are, comprise less thin

private
investment
should
ap¬ third of the
capital expenditures has probably been some further
other
one-quarter of the country's total
proximate $30 billion or roughly shown in the above table for the increase
in
these
investments
the
hydro potential.
one-fifth
of
the
gross
national manufacturing sector, while cen- since that time
United States, last year Canada's
The Province of Ontario is
fro]
plpptrip
QtatinnQ
£inH
croc
imports approximated $694 mil¬ product over that period. As one
works accounted for about $2WI1^*ie™ inyesunenis particularly i n t e r e s t e d in the
lion and exports $1,256 million, indication of the size of this capi¬
481
million, or more than twoamnnd
P°Wer pha-Se °f lhe St* Lawrence
resulting in a favorable trade bal¬ tal investment program, in each fifths of
the capital expenditures
Sonn
inth»
JYer project where a joint de~
ance of $562 million.
shown for utilities.
$4,200 million in the seven years vei0pment of the • International
year from 1948 on, new public and
In trade with the United States,
New
private
investment
acRfC'- '
?* 9veur
Rapids between the Province and
private investment has exceeded
last year Canada imported United
counted for nearly 74% of the to°
increase is attributable the §&ate of New York would
States goods valued at $2,977 mil¬ the value of Canada's exports to tal in the
seven-year period
of
vernr^? „ Canada credits,
about 2.2 million hp., of
lion, whereas exports were only all countries.
1946-1952
and
will
probably be
in the form of loans and which Ontario would obtain oneA substantial part of this huge a similar
$2,349 million.
Relative to the
percentage of the 1953 advances to the United Kingdom half. Nowhere else in the world
respective populations of the two capital has been used to establish total.
a
other governments. Direct have two neighboring countries
countries, these figures imply that
The bulk of all the capital has
a
firm
foundation
for
a
sound
inv,es,
increased by approxi- the good fortune possessed by
Canadians spent
about $14 per
come
from Canadian savings, of
$600 million, a substantial Canada and the United States in
For example,
capita on United States goods for growing economy.
citizens,
business
and
govern- "Sure tor a country of Canada s the joint system of fresh water
every $1 per capita spent by citi¬
large sums have been channelled ments. For the period 1946-1952 .Slzefigure lakes reaching into the very
zens of the United States on goods
into basic industries such as pow¬ inclusive, if the amounts lent or.J®
ny avaflabJe, the value of center of the continent they share,
trade

In

with

as

countries

than the United Kingdom and

SmTmillioTto8
Jv

iii!?!

.

!*f1

furniljl

.

*

,

imported from Canada.
The

above

into exploration and

er,

figures

should

be

ment of

resources

kept in mind in the consideration

ore,

of any

and modern

increase in the restrictive

and

into

develop¬

like oil and iron

new

plant

capacity

equipment for funda¬

invested

abroad

account,

taken

are

Canadians

into

have

pro-

h?n£[r
'U'e.c.
lnvestPients in
the United States rose from $455

vided enough

capital out of their "J A*°'n
*° $^06 million
savings to finance the whole de- a^
end °t 1951.
velopment program.
There
was
The tremendous capital investactually a small net investment ments of recent years have unabroad

the

over

seven-year

Through the development of a
short stretch of the St. Lawrence

River,
could

North
costs

the

trade

of

the

world

be

brought to the heart of
America at
much
lower

than

those

now

prevailing,

pe¬

riod.
The

accumulated

foreign
ada
of

capital

is

now

the

than

Although

month

Members of The Investment Dealers' Association of Canada

or

so

the

Direct private ivires to
Vancouver and The

of

Montreal,"Ottawa, Winnipeg, Calgary,

First

Boston

Stock orders executed

from

all Exchanges

50

of

MONTREAL

OTTAWA

LONDON

CALGARY

VANCOUVER

WINNIPEG

KITCHENER

QUEBEC-

HAMILTON

NEW

YORK

to

23%.

total

United

the

Dealers
Winnipeg

and

the

total

in

inflows

of

new

million

ment

of

and

earnings

Host on

of

BUSINESS ESTABLISHED 1889

Dec.

three-quarters
direct

was

mainly

capital

million.
and

Incorporated

New York

from

ended

years

of

by
of

by

some

reinvest¬
than

more

Inflows

into

Affiliate of Watt & Watt

exploration
develop¬
refining and into min¬

of

United

Toronto

Members

States.

new

capital

from

the

Long-term investments in Can¬
ada
owned
by residents of the
United
Kingdom
increased • to

roughly $1,800 million
of

1952

this

and

have

fairly

year.

on

ada

of

during

United

States

Kingdom,
substantial

capital

have

other

and

in .Can¬

than

the

never

the

part of 'the
investment
in

Canadian Securities

a

foreign
Canada.

Exchange

Winnipeg Grain Exchange
Investment Dealers Assn. of Canftdi

Watt&Watt
Incorporated

Private Wires
Toronto

Member National Association
of

Security Dealers, Inc.

70 Pine Street,

New York 5, N. Y.

Montreal
Buffalo
and Winnipeg

WHitehall 4-3262

United

formed

Exchange

Montreal Stock

the

the emphasis has
investment rather
portfolio investment.

countries

Toronto Stock

growth

direct

than

signs of

substantial

Broadly,

the end

period

on

at

shown

Long-term investment
Members of the Toronto Stock
Exchange

„

A. E. Ames & Co.

1952

increased

increase

been




of

residents

financed

postwar

Spence & Co.

Exchanges

.

hold¬

bonds

end

by

Nearly

investment,

further

TORONTO

■

ing aggregated an estimated $632
million or over half of the total

Mills, Spwice A Co. Limited

Milner.

b

$4,990 million to
$8,000 million dur¬

inflow

Montreal

-v.

OFFICES IN 14 CITIES IN CANADA AND ENGLAND

of

seven

1952.

petroleum

affiliated with

Toronto

United

slightly

one-third

over

States

estimated

ment

Investment

In

Canadian

owned

$1,000
BROADWAY, NEW YORK 6

Members Toronto and Montreal Stock

Cana¬

$1,215

Securities

A. E. Ames & Co.

31%

of
ownership
of
bonds,
non-resident

book value

of

115

the

increased

represented

ing
31,

Investment

to

distri¬

Canada

an

Canadian

end- of

they represented less than 16%.
Long - term
investments
in

a

Mills, Spenee & Co. Inc.

UNDERWRITERS AND DISTRIBUTORS

the

the

the

Limited

-

owner¬

38%

though

•

between

the

1939, whereas at the

King Street West, Toronto, Canada

two

i.

dian

Office

from

total,

22%

ings
Head

for

non-resident

portion

bution
on

and

A. £• Ames & Co.

the

industry,

1939

total

'a

of

of investment.

declined

States

Corporation, New York

of

the

Investment Securities

indi¬

some

extent

ownership

Canadian

1950,

gives

ago

of

end

Canadian

in¬

years.
or

areas

ship

earlier

an

specific
In

proportion

capital

are

in

the

all

Can¬

available,
publication .issued

changes

CANADIAN SECURITIES

of

in

comprehensive

data

cation

DEALERS IN ALL

in

no

current

official

LIMITED

smaller

a

country's total

vestment

McLeod,Young,Weiii & Company

value

invested

Bell

System

Teletype N.Y. 1-374

to

Volume 178

Number 5282

Canada also has

yast

.

.

The Commercial and

.

Canada

country's growing population investment for residential hous- expenditures will automatically striking changes that technology
high standards of living will ing, 'highways, schools, hospitals be extended to industries manu- could
bring about even within a
naturally continue to'require new and other public services. These facturing the durable goods now decade, one need
only think of
taken for granted in the average
External Trade

required ;
and

of all

these
the

Year 1946

the

zation
In

With tinted States:

the
foreseeable
progressive utili¬
broader development

over

for

'

resources.

oil

from

1947

pe¬

than

60

milliori

1946

to

barrels. in

1st 7

1952,

last

of

1953.

mos.

1,322.7
1,422.3

.

1,704.4
1,958.9

-

i,

,
•

With United

Kingdom:
Year 1946
-

year.

*

■

"S't

598.8

\ ***'"

.753.7-'

1948

688.7-

•

1949

709.3

:

1950

becomes available.

basic

tion

met

through

the

soon

be

one

largest

producers

in

the

of

requirements

1st 7

pleted.

With
in

1952

7

mos.

1953

1946

Wages,

connection

1

2,761.2
3,174.3
4,084.9
4,030.5
2,293.5
2,622.0

-

Military

pay

Investment

Brazil.

tAccrued

within

economic

are

mercial

farm

re¬

range

of

being

Net

2,445

national

income

.<

•

.

production

(tons)

'3,289,867

1st 9 mos.

10,943,320

1st 8 mos.

93,908

1st 8 mos.

179,602

(tons)

(tons)

1st 7 mos.

(tons)-

1st 7

$6,055,000,000 $6,053,000,000
tl93.1
190.6

(kw. h.)

43,726,267,000 40,617,253,000

mos.

1st 8 mos.

freight (cars). 1st 39 wks.

trade:

3,666

1st 8 mos.

1st 9

+
+

9.9%
1.3%

+

7.7%

—

2.8%

$647,897,000

+

5.7%
4.4%

$3,985,800,000 $3,707,800,000

+

1,223

1,518

1,504

1,503

2,106

1,934

1,189

1,326

1,369

1,444

1,503

$5,226,000,000 $4,900,900,000
$3,647,700,000 $2,978,700,000

+

At Sept. 30

September

$1,293,900,000 $1,230,500,000

+

$676,557,000

note

At Sept. 30

Canada

circulation

6.6%
+22.5%
+ 5.2%

1,522

$9,821

—

official

estimate.

t Preliminary.

$10,985 $12,560 $13,194 $14,550 $17,128 $18,135

1,269

.

1,604

1,772

sim-

and

1,830

2,018

2,468

1,276
+5

1,437

1,636

1,889

+1

—1

—35

2,687
-

,

903

1.118'

+33

+61

costs

mar¬

of

estimate

national

Residual

product

error

Gross

market

prices

2,070
+119

at

.

$12,026, $13,768 $15,613 $16,462 $18,203 $21,450 $23,011

—

''Includes

knowledge

through

cellulose.

capital needed for

undistributed

includes

adjustment

valuation

income

National

Source:

Bureau

development,

of

Accounts

of

*

C°

LIMITED
earnings

grain

for

in

the Canadian Wheat Board, and an
Wheat Board channels, on a calendar

of

UNDERWRITERS

basis.

JIncludes net

industrial

L G. BEAUBIEN

Newfoundland.

item

tThis

inventory
year

DEALERS

AND

independent professional practitioners.
and

Income

Statistics,

1926-50

Expenditure

and

Dominion

1949-52,

Specialists in Securities Originating in the

Ottawa.

Province
'

f

.

of QUEBEC

■

,

•

.

.

Government, Municipal, Corporation,
School Commissions, Parishes and Fabriques,

Religious Institutions.

Interested in Canadian Securities?

221

NOTRE DAME STREET, WEST

MONTREAL
Quebec

-then consider this:

St.

Ottawa

-

.

Hyacinthe

•

'

•

_

'

\

I
Tfois-ftivieres

-

Shawinigan Falls

-

Paris

Canadian

Sherbrooke

-

Brussels

-

-

Affiliate

W. C. Pitfield &

Company,

Limited
Members of The

vestors

Investment

Dealers' Association of

chiefly with American institutional and private in¬

deal

We

in

Government, Provincial,

/Av

Municipal and

/uumtm IHIX

Corporation securities.

Canada

Private

Branches:

wires

Canadian

Halifax

Montreal

Canadian

Saint John

Moncton

Ottawa

connect

with

twelve

1
Branch

'

offices

of

~

our

Canadian Securities

affiliate, W. C. Pitfield & Company, Limited, Head

Office, Montreal, and additional offices in London,

England,

Underwriters

-

Distributors

-

Dealers

Cornwall

Toronto

Winnipeg

Hamilton

Edmonton

Calgary

and

Kingston, Jamaica, B. W. I.

Our

Associates, Hugh Mackay & Company,

Vancouver

all

'

London, Eng.

Members of

Orders accepted for execution on

all stock exchange#

important Canadian Stock Exchanges.
■

1

•

The

Kingston, Jamaica

are

impressive growth of

our

Wire connections: Montreal

business speaks for itself.

-

Toronto

•

W. C. Pitfield &. Co., Inc.

*




V

-

30 Broad Street

NEW YORK

HAnover 2-9250

Royal Securities Corporation
Limited
244 St. James Street West

-

,

Montreal 1, Canada

Telephone HArbour 3121
Toronto

Calgary

'
•'

}■

deposits in

"Second

;

7.5%

$7,835,219,000 $7,411,725,000

mos.

banks:

loans in Canada

Active

3,337,685

3,244,923

Manufacturers' inventories est. vai._At
Aug. 31

Chartered

.*

«•

Total retail sales

.

:
;

t

1st 7

(1939^100)_At Sept. 1

output

}

•

..

income

revenue

,

4.6%

$1,173,700,000 $1,181,900,000 — 0.7%
->594,300,000
687,900,000 —13.6%

Crop year
4

Carloadings

+

.

-lst6mos.

(bu.)_—

Electric energy

236,791
111,992

V

income—

employment

+30.5%
+ 45.5%;

2,642,320 +24.5%
12,352,353 —11.4%
94,608 — 0.7%
171,666 + 4.6%
213,045 +11.1%
92,173 +21.5%
2,906,048 — 0.2%

,2,901,049

'

crop

'

mos.

1st 8 mos.

production (fine 02.)__

Indust.

3,642

56,362,583
55,351,527

.

57,902,347

—1st 7 mos.

cash

i

'

;

Current
.,

31,737,496

-

82,028,656
'

factor

at

allowances

distant
forest
brought into com-;

In addition to

■

Labor:

more

be

(

41,415,973-

'

mos.

operated

already

use

•

ore

Wheat

1,071

subsidies—

less

business

?

+23.1%
+10.9%
+29.3%

4

mos.

Labor

+.12.5%
+22.9%
•

14,718,978
11,959,750
$1,731,269,800 $1,561,199,700
69,463
53,511

mos.

Farm

$9,676 $10,743
201
270

288,764

,

Agriculture:

1,112

__

cost

Deprec.

mos.

Zinc production

-

-

business

taxes

1st 8

mos

(bbls.)„ 1st 7

Gold

*1952

2,410,941

•

-

355,029

;

_lst8-mos,

Lead production

*1951

3,155

....

2,713,159

mos.

*

.

Savings
,

*

.

.

non-farm

of

Indirect

liar

115

+11.9%

.

+

pro¬

—

income

unincorporated

gained from research and the de¬
velopment of new products based

further

2,464

income of farm

from

duction

JNet

for the benefit of existing plants.

However,
areas will

2,269

340
1,975

4,636,000

Copper production

—204.0

$8,311
137

0.2%
9.1%

production (tons).
NickeL production (tons)

unincorporated

net

(tybls*)„

Coal

+203.4

'>1950

0.2%

+

*

,

gas:

Mining:

+325.5

$7,761

.

operators

limits

timber

allowances—

$7,170
82

business:

forest areas are
those of Russia

Most

of

ingots production (tons)—_ 1st 8

pipeline net deliveries (bbls.)-lst 7
(M cu. ft.)-1st 7

Oil

—121.5

'>1949

$6,221
83

$5,323

income

income

&

Retail

1948

+

6,594,683
134.515

5,186,000

Department store sales

income——

and

1947

4,257,448

6,608,104

(M bd. ft.)— 1st 8 mos.

production

% Change

1952

4,264,023

146,769

Natural gas product'n

17.2

—

1953

r
„

1st 9 mos.

(tons.)

Crude petrol, production

+237.8
+473.1
+261.2

2,636.9

>

+

Period

Dwelling units started (units)

supplemen¬

&

labour

do¬

timber

with

sources, Canada's
exceeded only by

salaries

tary

are

of course,

Canada,

_

-

Building:

Oil

(Millions of dollars)

particularly for iron and steel.

on

'

+474.6

2,573.9

.

production

Cement production

Canada: National Income and Gross National Product, 1946-1952

mestic demands will also expand,

kets

mos.

1st

Net

zation

and

.

1952

being de¬
further industriali¬

own reserves

*
.

Construction contracts awarded—1st 10

+ 130.4

1,864.6

3,110.0
3,022.5
3,157.1
3,963.4,
4,356.0
2,496.9
2,418.0

1951

world

United States and other countries

In

;
-

ore,

whose

Canadian Business Conditions

+

Motor .vehicles shipments (units) _lst 8 mos.

+391.3
+ 277.9

266.7

the

,

Steel

+214.7

359.8

:

This Report has briefly covered
or% a few of the highlights in
;
Continued on page 44

Steel:

+ 389.2

-

c

nummary

.

.

;+401.8
+ 68.3

-

195.5

2,811.8

■

1950

the

paper

Iron

1949

base metals and other
strategic minerals should become
still more
significant in export
trade over the years ahead
to
meet increasing demands from the

:

'

2,339.2

1948

material.
Iron

paper:

Fine

; +457.5
+564.3

4

■

of

(tons)l—1st 9 toOs.",
Pulp production (tons)—1st 9 mos.

4

421.0

397.1

radio-active

or

Pulp &

'

,

en-

Newsprint production

f

—536.7
"

t

404.2

i

473.4

1947

and, in all likelihood, will be the
source of supply for North Amer¬
ica's

—381.6

-

307.5

;

751.0'4

*

Year 1946

quate markets can be provided.
In uranium, experts predict that
will

to
flow

visualize

t
:

With All Countries:

being made
whereby ade¬

Canada

To

!

—627.9

299.5

-

472.5

4

1953

mos.

are

of wqys and means

"

1952

mos.

1st 7

lines running both
east and west. A similar problem
now
concerns
natural, gas, and

extensive studies

services.

-

—479.0

189.4

635.7

1952
7

1st

construc¬

pipe

of

.

1951

problem of bringing

Western Canada oil to market has

been

likely

continued

80.0

—

i4i.3;
:

4

higher production when the hew
refinery capacity now being built
The

—427.8

„

r

^

1947

will

reserves

and

Lumber

''

■

justify

Proven

i—283,6

2,130.5
-2,812,9:
2;977.0

-V 2,349.0

1952

mos.

1st 7

this year was 30% above the cor¬

period

r

•

seems

the

capital to meet the .ever-increasing demands for hew products

—918.1

:

-

which

courage

■

and for the first seven months of

responding

1

,,

'

—496.7

.

1,951.9'

.

2,333.9
1

1952

more

•

2,050.5

;

,

1951
'

in

'r

;

tor

unfavorable —)

1,405.3
1,974.7
1,805.8

r

:

tak-*

now

•

Imports

-

1,524.0,}-

1950

one-half

and

seven

barrels

-

1,056.6;
1,522.2,

1948
1949

industry,, crude

around

908.6<•

*

troleum production increased
million

^

•

i

ing place in synthetic fibres, tele-

In Canada, as elsewhere, tech- vision, electronics, jet aircraft and
nological progress, is another fac- atomic energy,

Balance for Canada

Exports
(inel. re-exports)

the rapid developments

household.

(Excl. Gold) of Canada

(in millions of dollars)

any country on the globe. Largescale capital will continue to be

future

421

and

a
total energy potential
probably unsurpassed by

is

(2403)'

the

resources

potential energy in oil, natural
gas and
nuclear power. * These,
together with water power., give

of

that

Financial Chronicle

Halifax

Saint John

Edmonton

Quebec

Vancouver

Ottawa

Hamilton

Charlottetown

Winnipeg

St. John's, Nfld.

r.

44

The Commercial and Financial Chronicle

(2404)

Continued from page

tined

43

to

play a

and

more

•

more

important role in supplying stra¬

195408

Canada's Fntnre Potentialities
Available for Export

New Gold Production
_:»»t—„

0[

millions

(In

Insur., pension & guaranty accounts

further

Sta¬

95.8

abundant scope for

1947.

99.3

in

119.0

1st

1952—

mos.

94.4

of

Summary
of

this

Foreign

Statistics.

of Gold and U. S. Dollars

Holdings

fCanada—Official

(Millions

of

dollars

S.)

U.

the

tied

inextricably

economy

the

to

are

best customer.

your

also

353.9

1,154.1

1946

536.0

708.9

1,508.0
1,244.9

fare

1947

286.6

215.1

501.7

vital

a

that

—

source

of

1949

*486.4

630.7

1949

486.4

430.7

1950

580.0

1,161.5

1951

841.7

936.9

885.0

975.2

*1,117.1
*1,117.1
1,741.5
1,778.6
1,860.2

888.5

978.3

1.866.8

1952

—-

1953—January

______

892.9

April

____

May

—

_

_

June

951.0

September

959.8

827.5

Canada

♦Exclusive

in

be

permitted
and

growth
flow

development

serious

are no

should

continued

trade,

Source:
1

broadening

of

our

wide

presents

op¬

by the Exchange Fund Account and
dollars held by other Government of

U.

and

S.

of

million

$18.2

U. S.

aside

set

purpose

the

by

guaranteed

issue

of the proceeds of a
Feb. 1, 1950, a secu¬
of Canada and payable

out

of retiring
Government

on

dollars.

Bank

Source:

of

Canada

$13,421,400,000 $11,161,700,000
fiscal year ended March 31,
p.

AVERAGE:

♦Canada

tUnited States

$United Kingdom

2.15

2.52

2.63
2.59
....

2.20

2.93

2,61

2.41

1

2.82

2.85

2.24

2.93

2.77

2.24

3.19

3.21

2.58

3.49

3.54

_

2.64

4.23

1953:

AVERAGE

3.59

2.74

3.60

2.77

4.09

3.60

2.85

3.97

3.62

2.90

_

February

—

1

4.16

3.87

W.

Pearson

Scott, Chairman

3.05

3.83

3.70

3.11

3.85

July

COMMITTEE

3.64

June

3.72

2.98

3.89

August

CANADIAN

2276.

Long-Term Government Bond Yields

3.73

2.96

3.83

3.73

2.93

3.74

September

——

Wood, Gundy & Co., Ltd.
^Canada

Toronto

3%

fUnited States
B.

Ashplant,

Bank

of

1, 1961/66

due Dec.

15, 1963/68

due Apr.

15, 1959/69

$United Kingdom
Source:

due Sept.

2J/2%
3%

—

Canada

Statistical

Summary.

Co.

York

Stanley E. Nixon,

Canadian Securities

Vice-Chairman
Dominion

Securities

Corp.,

Ltd., Montreal

Municipal

J. BRADLEY STREIT

Arnold B. Massey, Sec.-Treas.

Corporation—External and Internal
r

over

March

em¬

May

New

•

$6,756,800,000

1947, pp. 2-3, Part I.: The Canada Gazette, No. 31, Vol. LXXXVII,

January

Vice-Chairman

Provincial,

545,800,000

$5,538,400,000

Public Accounts of the Dominion of Canada for

MONTHLY

Respectfully submitted,

F. B. Ashplant &

Government,

150,000,000

April

portunities for the profitable

Frederick

Statistical Summary.

on

assets)———.

1.949

there

impediments to the

Canada

losses

ASSETS

1948

this

of

Providing

possible

2,591,800,000

sun¬
-

(excess of liabilities

ANNUAL

the

for

ACTIVE

NET DEBT

not

impede

to

trade.

of

charges,

accounts, etc.)

realization of active assets

NET

Accounts.

refunding issue for the
rity

$7,302,600,000

suspense

Reserve

U. S. dollars held

tGold and

of

$5,688,400,000

Less:

ahead.

August

Bank

interests

selfish

1,750.1
1,755.7
1,764.4
1,787.3

813.5

Canada

479,500,000

ployment of capital over the years

813.4

__

1,119,900,000

dry

nations requires

our

1,761.2

942.2

_

2,366,400,060

wel¬

815.4

934.7

—

July

1,864,900,000

2,933,300,000

Other assets (deferred

of

838.2

923.0

--

--

930.0

1,845.3
1,843.7

both

of

1,837.1

939.5

913.7

_____

944.2

905.8

February
March

1199542067—

817,300,000

net active

are

supply

The future

basic materials.

$18,959,800,000 $17,918,500,000
817,900,000

is

We

$863,900,000
183,100,000
1,567,100,000
14,810,500,000
493,900,000

Loans to U. K. & other governments
Other loans, advances and invests.

trade

We

March 31, 1953

$182,400,000
1,366,400,000
458,000,000
16,807,200,000
145,800,000

Cash and other current assets

self-

it is

however,

Report,

Total

1945

in

figures presented

policies of the United States.

U. S. Dollars

Gold

End of Period

Liabilities
ASSETS:

Total active assets

evident that Canada's

Trade, Calendar Year 1952, and Monthly
Trade, July, 1953. Dominion Bureau

Review of Foreign

Source:

and

unmatured

debt

liabilities

ultimate

90.5

1953__

mos.

1st

more

markets

consumer

From

150.1

——

with

and,

Other

matically expand.

149.8

—

1952..

is

There

sizable growth

Funded

productive activities should auto¬

162.6

-

population

people,

138.9

-

capital into

development.

dollars)

1946.

Year

March 31, 1946

dustry at home and abroad.

domestic and foreign

(net exports of non-monetary gold)

Government of Canada: Net Debt at March 31,1946 and March 31,1953

Floating debt
Deposit and trust accounts

some

Thursday, December if, 1953

LIABILITIES:

tegic and basic materials for in¬

indication of the future po- bility in government and sound
ture.
However,
the Committee tentialities of the country. Can- financing provide a solid foun¬
hopes that the Report does give ada's natural resources seem des- dation for the continued flow of
pic-

investment

broad

Canada's

...

Mills, Spence & Co. Ltd.

'

Toronto

STOCKS

—

Executed

Orders

at

on

Canadian

Exchanges

regular commission rates

Ralph D. Baker
James

Richardson

&

Sons

Member:

Winnipeg
Russell D.

The Toronto Stock

Greenshields

Burns Bros. & Benton, lot.

Exchange

Calgary Stock Exchange

Bell

& Co., Inc.

Winnipeg Grain Exchange

Montreal

Canadian

Stock

Exchange

W. T. K. Collier

Tel.:

DIgby 4-3870

37 Wall Street, New York 5

TWX: NY 1-1467

Collier, Norris & Quinlan Ltd.

Affiliated with:

Montreal

Burns Bros. &

Burns Bros. & Denton
Limited

The

Members:

Investment

Association

Company

A.

G.

Curry

Members:

A.

Dealers'

The

Toronto Stock Exchange

New

o/ Canada

Wires to:

Montreal

Toronto

C.

Ottawa

•

•

Winnipeg

G.
A.

66

E. Ames &

Co., Inc.
City

York

&

STREET, WEST

TORONTO

Fullerton
E. Ames

KING

Phone: EMpire 3-7477

Co., Ltd.

Toronto
James A. Gairdner
Gairdner and

Co., Ltd.

Toronto

Percy R. Hampton

NESBITT, THOMSON AND COMPANY

Bell, Gouinlock & Co., Ltd.

Midland Securities

Toronto

corpn. limited

Limited
W. H. R. Jarvis

;

I

;

v

;

'

members:

McLeod, Young, Weir Inc.

and The Investment Bankers Association of America

New York

UNDERWRITERS and DISTRIBUTORS

Edward

S.

The Investment Dealers' Association of Canada

V

Johnston

Canadian
and

Government, Municipal

Corporation Securities

Wood, Gundy & Co., Inc.

Government, Municipal,
I

Public

New

Utility & Industrial Issues

■%

York

George P. Rutherford
Dominion

New

The Midland

Securities Corp.

York

1531

i

PHONE

(MONTREAL)

HARBOUR

(jp

Gerald G. Ryan

9221»

L.

G. Beaubien & Co.

member:

Company

The Toronto Stock

Stock orders executed

Exchange
on

all

Exchanges

Montreal

355 St. James
MONTREAL
KITCHENER

QUEBEC

TORONTO

WINNIPEG

VANCOUVER

Street, W.

REGINA

VICTORIA




OTTAWA
CALGARY

-

Montreal

HAMILTON

EDMONTON

SAINT JOHN, N. B.

LONDON. ONT.
LETHBRIDGE

FREDERICTON

Arthur

Toronto, Ontario: 50 King Street West
S. Torrey

W. C. Pitfield &

■

Co., Ltd.

Montreal

Douglas

B.

Weldon

Midland Securities
London

Corp., Ltd.

London, Ontario: Huron & Erie Building
Sault Ste. Marie, Ontario:

110 March Street

Volume 178

Number 5282

Continued

from

page

.

.

The Commercial and Financial Chronicle

.

(2405)

tear.
In
the
past, there - were
depreciation 'allowances which

26

theoretically .-were geared to
loss, by wear and tear, of

Canada's Positive Tax Policies

assets
asset

in

used

Special

-

treatment

of

would doubtless exist

sort

some

*

under

even

but I
tax

45

shpuld stress the point that
have

devices

abatement

low tax rates, but it seems to me
the that because of high corporate" played a quite important part as
our
natural
re¬
If an tax rates more than ordinary con- incentives ,in

production.

the

a plant, cessions should be granted.
First, sources industries.
liquid earned surplus in the com¬ then there was no basis in theory, there is the three-year exempThat concludes what is merely
section of our law was repealed pany was not much help in meet-, and I believe in
practice also, for tion from tax given to new mines,
in 1949. There is now nothing in ing a succession duty liability be¬
granting the taxpayer any deduc- Second, a mining and oil com-' a review of some of the major
our
law which enables the gov¬ cause in order for it to be made; tion in
respect of depreciation of Pany> instead of being allowed to' points of interest in the Canadian

many

been criticized.

years

ernment

influence

to

were

standing idle in

This

any

available

oper¬

would have

dividend

a

>

that;asset.

Some• countries

pro-

paid. Winding up the; com-.; vided especially for obsolescence,
pany offered no solution because. but our law never did
recognize
upon winding up the whole of the this factor.
tained earnings as an important accumulated ; surplus
would
be:
11
deemed to be a dividend. The high
source of capital funds for expan¬
+WGf
.°verboard
the concept of depreciation
and
sion. There has, in fact, been a wartime tax rates would have leftadopted a system of capital costonly about $25,000 available for
quite notable change in the degree
allowances. The new concept is
to
which Canadian
corporations succession duties.
the amortization of capital costs
have paid out earnings over the
Under
present legislation the • rather than allowances in respect

ating

company as to

how

be

to

when

or

it pays out its earnings. Corpora¬
tions these days depend on re¬

T

,n.n

,

,

^rew

decade.

past

If

corporations

aniortize the capital cost of the-, corporation income tax structure.
?re body which it operates, which
Some Conclusions
in manY uses may represent a
very. small outlay, is granted de-

pletion allowances.

These make

from

tax

Expenses
most

recent

develop-

our

law

lieve

significant

in the past

Canada

changes

since

decade. I be¬

is unique

dividends

as

in

of half the

The

1949.

earnings

benefit

allow¬

in

ing this kind of treatment

legislation is available to all

of

panies but, needless to

re¬

this

of

com¬

say,

to

head

a

when
rates

during

the

World

personal

were

possible then for

an

War

income

high. It

very

in

came

Canada

do

we

not

tax

capital

gains.

II

im¬

individual to

happens to

Coupled
ophy

method

Perhaps

an

even

for

expected

tant

of any

tion tax policies deals with "capi¬

of

ter

tal cost1 allowances"

capital

shareholder of
pany

a

the

upon

closely-held
death

of the

to

development in

be

called

ances."

com¬
man

In

our

or

corpora¬

what used

there

was

an

large

the

provide
a

10

for

year

tax.

allowances

10

The

years.

operate

their

This

from

is

income
a

.

.

,

departure

off

are

approximately double the

old straight line depreciation rates
but the doubled rate applies

..

,

encourage

undertake

companies

deep-test

information

only

to

what

count

left

is

after

in

the

the

asset

previous

this

not

drilling

regarding the

elaborate

somewhat

further

specialized

rapidly

our

We

of invest¬

high level

a

in

both

ex¬

must

manufacturing

in¬

dustry and natural resources.

At

the

time

same

high

level

without

stress that

is

much

social

Our tax system

policy of achieving

I

inflation.

should

easier

devise

to

when

is

it

and

backed

been

our

ada that in
upon

our

which

heavy

I

complex economy

have

been
of

demands

field

investment
of

living,

ment

and

no

policy

a

one
can

laid

defense,

Coupled

Collier Norris
£ ■

Quinlan

members

■

expense

will

whether

' £

the

not,

MONTREAL

STOCK
STOCK

the

govern¬

do the job alone.

ac¬

be

system

new

all

capital

amortized,

assets

used

are

or

is

EXCHANGE

when

is

asset

an

realization

price

disposed of thesalvage value

or

CANADIAN GOVERNMENT
PROVINCIAL AND MUNICIPAL

must be subtracted from the asset
account

if

or,

is all written

the

asset

account

SECURITIES

off, the selling price
profit and loss

must be taken into

account.
does

&

Investment

Bankers

Association

Association

of Canada

of America

Montreal

Toronto

507 Place d'Armes

320 Bay Street

HArbour

2201

the asset.

capital

systematic
miss

EMpire 8-2984

the

matter
jm*

the

when

low

hit

or

operated

when

and

-—

incentive

were
proper

Accelerated

common

was

during

which

would

assets

little

"Double

peacetime value.
depreciation"
was
al¬

lowed

Municipal

the

II

to

in

and

at

used

World

recently

the

device for

a

United

States

in

or

capital

been

used

economic

Equitable Securities of Canada
LIMITED
.

'

policies.

re-thinking
law

visions

Toronto. Canada
i

Telephone: EMpire 6-114}




tax

and
.

.

we

soon

our
ran

corporate
into

the

making suitable pro¬
for
companies exploring

exploiting natural

Such

tries.

treatment
Canada

is

in

most

no

CANADIAN

BANK

OF

EMPIRE

COMMERCE
3-5821

resources.

companies have been given

special

SECURITIES

has

broad

problem of

■

Bay Street

In

further these

GOVERNMENT-MUNICIPAL-CORPORATION

factor

allowances

cost
to

CANADIAN

certain di¬

the extent to which this

of

Canadian Funds for delivery in Canada.

220

of

rections. I think Canada is unique

United States Funds
the

in

Canada

been

discouraging

capital investment in

quoted in

COMPANY

Members Investment Dealers' Association of

period.

deferment

allowances has

cost

as

War

BRAWLEY, CATHERS &

capital formation

reconstruction

the

capital

of

end

encourage

More

Corporation Securities

delivery

KITCHENER

HAMILTON

such a vital
be these days.

devices.

for

wartime
have

for

WINNIPEG

TORONTO

MONTREAL

not

may

depreciation

Prices

1920

heard of how we
capital cost allowances

have used
as

Government,

LIMITED

ESTABLISHED

You may have

and

Canadian

BELL, GOUINLOCK & COMPANY

in

rates

tax

was

it

as

old

which

system

days

relatively

Dealers in

avoid

gains.

than

accounting

Underwriters

original

This is to

Recapture,
in effect, provides that a taxpayer
may write off, that is, amortize
only the net cost to him of an
asset. He may write off the origi¬
nal cost less disposal price, if any.
This system, it seems to me, is
eminently fair, and it is far more

members

Dealers'

the

of

excess

taxing

Quinlan

Limited

Investment

in

cost of

Collier Norris
The

Recapture,
of
course,
apply to any purchase

not

price

coun¬

exception.

TORONTO

of

rising standard

line of

year's

the so-called recapture
provision.
Recapture means that"

EXCHANGE

CANADIAN

with

guarantees that

the

high level of

allowance has been taken.

which

It

experience in Can¬

social security, of a

on

to
up

balanced budget and by the

a

has

a

in my view tax policy

administer

by

for

prepared¬

imposing the unfair

of

burdens

pay

expanded

an

program.

is part of our
this

to

defense

of

for

and

ness

must gather in

we

sufficient

revenue

,

5-rr,—. T «•
ticulai value to the country.
shall

maintain
ment

to

a

system

tax

appropriate monetary policies.

have been

offered „to
where

to

principles,

Speclal
to

subject

radical

ordinary tax

e

would

years

allowances

cost

earning

straight
$100.00

a

depreciation

$10

were

normally would be

last

to

is,

exaccount as if 11 were incurred in

Our

year.

so-called

That

and aU thls "ofl-property"
Pen(*ltuie may be taken into

im¬

our philosophy
subject. The term "depre¬
ciation" implies physical wear and

this

on

each

°j* „wells

or

philos-

new

go

in hunt-

away

"depreciation allow¬

1949

portant change in

who had built up a large business
out of retained earnings. A

taken

method.

retain much

more than
$25,000 out
dividend payment, no mat¬
how large. Imagine, then, the
position of the estate of the chief

thousands of miles

depreciation allowances

machine which

impor¬

more

be

leave their property and

may

change
in
the
arriving at the allow-

in

we

develop

economy.

Mining and oil companies security

come.

out.

the

of

to

ances

asset

is used but

or

wear

with this

was

line

"Capital Cost" Allowances

though the

even

used at all

never

never

taken

tax

was

is

it is

earnings. The problem, of only the closely-held companies
that have much interest in it. I
course, arises from
the facts of
both high corporate rates and high should mention here, perhaps, that

tained

personal income tax rates. It

amortized

panding

to

income

appropriate

tax

,

most

how

you

tried

have

Allowance of Capital Exploration-, corporation
The

I have

points

the

show

will

Canada

itself can clear this of physical
wear
and. tear.
A ment affecting natural resources
going to depend more on retained accumulated surplus of any future reasonable
basis
for
amortizing are provisions which allow min-'
earnings fot capital expansion our tax liability in the hands of the costs
is, of course, a period cor- ing and nil companies to chargelaw is as it should be in not com¬ shareholders
by payment of a 15% responding roughly to the period, capital
exploration expenses dipelling distribution.
tax. The right to pay this tax on
during which the asset will be rectly to profit and loss account,
The
right of corporations in post-1949 surplus is conditional earning income. The main differ- Ordinarily the only charges alCanada to capitalize undistributed upon the payment of the tax upon ence,
however, is that once a lowed against income are those
income on hand upon payment of all surplus accumulated up to the machine, for example, has been which
have been incurred diend of 1949 and upon the payment
a 15% tax is, to
purchased the cost of it may be rectly in the earning of this inmy mind, one of
the

hope that

made

<

corporation

are

I

a*

portion of the net profit exempt'

BUILDING

46

(2406)

The Commercial and Financial Chronicle

dose

of

the

"open

mouth

Continued

opera¬

from

tion."

Our

Reporter

Governments

on

Discount Issues Sought
The

interest

shown

By JOHN T. CHIPPENDALE, JR.

in

which

is

the discount

,

es¬

pecially those that come under
The
belief
that
the
economy They point out that the powers the
longer term classification, has
will be feeling the effects of the that be have given the market the been
very
definitely bullish on
"clernsing
process"
in
a
more cooperation that it has needed and
money market sentiment. Institu¬
positive
tinues
fluence
as

have

the

has

helped to iron out tight
were developing.
The cutting of the rate from 2%

in¬

tions

spots that

market

money

and

this

con¬

constructive

a

the

upon

whole

a

in the future

manner

to

to

government

1%%

bv

market in particular. The opinions

on

Federal

larger

will

be

amounts

available

of

for

money

investment

in

the

Treasury obligations in 1954 is
bringing investors into the market
now, especially in the quest of is¬
that

sues

still

are

the par level.

selling

to be in the

is also

direction

in

minor

amount

been

taken

tion.

The

distant
well

of

been

Although

to

ment

in

there

nite

more

advance.

the

The

might

sharp

do

to

make

of

a

of

debt

two-way

Highlight
for Treasury

demand

obli¬

gations continues to be substantial,
according to advices, even though

prices of
have

of these

some

unexpected development.
but

it

The up¬

of

in

though

even

traders,

admit

trend

in

there

a

of

to

issues, mainly in the"

and

longer

and

to

be

there the

maturities,

cropping

question

up

as

to

ditions

highs

new

which

have been made in certain issues
from time to time there
appears
to
f s

be
a

real

no

fear

of

the

However, such

Lave

generally
velopments in

rothing

been
any

than

more

reactions

healthy de¬
market, but

a

backing

filling operation is looked
many

market

money

effect
cause

be

cannot

allowed

partment;

Pine

for

or

by

to

Louis

Effective
&

Jan.

with

offices

New

de¬

1

A

tempering

might

come

of

the

incline

through either

market operations

or

open

"open mouth

operations" and the talk

now

be¬

at

in

Newman,

which

is

J.

R.

30

ing heard about what the

mone¬

tary

in

authorities

way of

could

dc

5141 the
Business Act specified that:

tions

financial

assistance

Co.,

&

31.

The New York Stock
Exchange

essence

making monetary policy
a

a

mild

of

the

Campbell to Robert

following firm

L.

read

to

educational

providing

students

American

loans

of

dollars

with

with

of

institu¬

housing

for

faculties

and

the

(2)

under

It

is

neither

be

can

the

be

our

H.

for

present

form

(a)

of Title

forces

our

govern¬

business

into

and

private

It is

not right

that

our

in¬

that

its

cannot

meet

economically

an

mate¬

or

interest

of

a

this

tional

the

capital and avoid

Transfer of the Exchange mem¬
bership of the late Harry R. Engeman
to Joel A. Batchker will be
considered by the
Exchange on

use

in

connection

this

loans

title,

author¬

the

as

Oetjen

\

RETAIL DISTRIBUTION

Robert

from

through

Dec.

CORRESPONDENT WIRE SYSTEM

in

L.

will

retire

McGinnis

amount

A

loan

not

as

to

Harter

will

in

the

of the

and be

ner

not

housing,

40

years,

determined

be

The

by

to

t

Chicago
Chicago

•Wm. J. Mericka &
Co., Inc.

Dallas

Southwestern Securities Co.
-B. E.

Detroit

•R. C.

Fl Paso

O'Donnell & Co.

Harold S. Stewart & Co.
<

Houston
liaasas City

Simpson & Company

Blair F.

Claybaugh & Co.
Company

a

Los Angeles
Midland

•Hulburd, Warren & Chandler

Denver

llarrisburg

Company

■McMaster Hutchinson & Co.

Cleveland

,

&

form

enacted,

of

is

the

be

sound

a

action

and

would,

and

private industry.
Tidelands
Last Spring Congress passed the

badly

needed

"Tidelands"

meas-

Municipal

retire

BOND

DEPARTMENT

-Southwestern Securities Co.
New Orleans -T. J. Feibleman & Co.
Phoenix
-Kenneth Ellis & Co.

Pittsburgh
St. Louis

-Dempsey-Tegelerft Co.
St. Louis
-White & Company
Salt Lake City-A. P. Kibbe & Co.
San Antonio

Crockett &
-

San

Burke & MacDonald

Toronto

Tucson— Henry




-Blair F. Claybaugh & Co.

limited

-Matthews

Oahiberg & Company

&

Co.

Co.

Chamberlin,
general
Paine, Webber, Jack¬
Curtis, will become a
in

partner

effective

Jan.

FOUNDED

New

1.

York

American
Canadian

I. Losee, general partners in Salo¬
mon Bros. &
Hutzler, will become
limited
John

in

become

Dabney
a

limited

&

Stock

Exchange

Stock

Boston

Exchange

Stock

Exchange

Bankers

Association

25 BROAD

Tyson,

Boston, Mass.

effective Jan. 1.

j

York

Exchange

Stock

State

Exchange

Bankers

Assn.

Investment Bankers Association of America

STREET, NEW YORK

Washington, D. C.

Oil City, Pa.

partner,

Stock

Midwest
New

Telephone: Dlgbv 4-3900

Adie, general partner

Townsend,

will

American

partners, effective Jan. 1.
W.

1842

MEMBERS

Edward L. Holsten and Herbert

-Lentz, Newton & Co.

Francisco-Wulff, Hansen &

&

son

LAIDLAW & CO.

W.

con¬

protective of

31.

partner

as

suggested

simple and

partnership in Sutro & Co.

D.

-Dempsey-Tegeler& Co.

pe-

him."

ner

Albuquerque Quinn

man¬

repaid within such

exceeding

amendment

and

MUNICIPAL

an

total

determined by the Administra¬

Bonds

C. Schmidt, general part¬
in Hecker &
Co., will become
limited partner, effective Jan. 1.

was

educa¬

be

Co.

Otto

such

no

an

may

exceeding

development cost

authoriza¬

from

&

Ad¬

determine;

be made for any hous¬

Act.

of pri¬

of Federal funds in

State

23.

may,

institution

econ¬

believe that Congress will

use

contracted

ing, the construction of which

structive

free

encourage

of the

has

begun prior to the effective date

if

barrier.
the

enact¬

Act,

Provided Further, That

arbi¬

unsound

in

construction,

design

receive

under

may

it

this

of

loan shall

field of

and

the

undertaken

Any educational institution

riad,

will tion

in

housing

dustry should be driven from the

security financing simply

no

unless

tor; shall be secured in such

industry out, and

vate

made

that economy will

ministrator may

IV

Housing Act in its

not

are

finds

be

manner

therewith,

of

Section 401

mem¬

Frederick

be

extravagant

ment

Federal

wish to

Exchange

late

will

promoted

or

nor

omy we

to

a

rials.

bil¬

necessary

or

and that it will not be of elaborate

done through private

of the National

In

shall

Administrator

such

sources.

(4)

loan

housing

where financing of that

purpose

(3)

consideration,

And Provided Further, That
such

the

its

or

er:

government be increased for such

type

only where funds
the prevailing rate

at

otherwise available to the borrow¬

ized

right that the debt of

a

made

rates for the character of the loan

taxpayers'

Exchange

23.

partnership
Dec. 31tf

fol¬

as

ton, will be dissolved Dec. 31.

6, N. Y.

of

Provided, That such loans shall

French, Harrison & Co., Hous¬

'

rec¬

Housing

Administrator may make loans of

this Sec¬

money.

Cahill will

the

George W. Young
considered Dec. 23.

Dec.

New York

and

by

bership of the

assist
in

their

shall

of private enter¬

government

of

because

Henry

Broadway

lions

trary

Prince

we

401(a)

Industry cannot compete in which, prior to the date of
making

Transfer of the Exchange mem¬
bership
of
the
late
Oliver
S.

Dec.

purpose

Section

the National

amended

credit,

changes:

Transfer of the

be

"To

reasonable terms."

economic system

Street,

Exchange
Weekly Firm Changes

on

of

lows:

Federal

New York Stock

Exchange—American Stock Exchange

MARKETS

Con¬

July

"The

ment

the

Midwest Stock Exchange

TRADING

Act

24,

recently,

be

(1)

formed

Broad

Kennedy

considered

that

IV

need.

on

the

Kennedv

being dissolved Dec.

be

MEMBERS

39

Title

We would like to point out that:

City, as a New York
Stock Exchange member
corpora¬

has announced the

McManus & Co.

hew York Stock

enterprise

that

serve

ommend

Congress also states in that Act:

York

be

Joseph

the

To

fea¬

H.

Company, Inc. will be

upon things as a whole be¬
they have gone to extremes

two-sided picture could be

specialists.

able

to

Kennedy Co.,
NYSE Corp., Forming
In New York City

adverse

an

in either direction.

market

whole. To be sure, there could
as there has been
in

be reactions
1he past.

always been
two-way proposition since con¬

velop which will have

the

of

more

assist¬

where

be extended pursuant to

Rudolph
J.
Chval,
Manager of the institutional de¬

tide

management in it in spite of what
may be said in certain quarters.
a

Evident
Despite

utilized

can

fair

Fenner tion unless the financial assistance funds to such institutions for the
Street, New applied for is not otherwise avail¬ construction of such housing;

Debt management has

Confidence in Price Level

governmental

be

do so at prevailing rates and
going terms for the character
of the loan sought.

as

Pierce,

department;

certain amount

needed

was

appears

here

govern¬

quotations

need

total

"No

securities has been princi¬ whether or not the monetary au¬
Officers
are
pally of investment quality which thorities will interfere with the tion.
Jay Richard
imparts important strength to the market in order to keep it from Kennedy, President; Charles M.
market.
As long as the
majority getting out of hand on the upside. Newman, Exchange member,
of opinions are on the
constructive Although this market is known as Vice-President and Secretary, and
Aide, and most of them are at this a "free market" there is nonethe¬ Arthur B. Behal, Vice-President
and Treasurer. All were
time, there is very likely to be a less a
considerable
amount
of
partners

Treasury securities.

it

total

in adopting H. R.

gress

partnership O. V.
Manager of the municipal

Cecil,

securi¬

70

the

enable private

serve

Small

Stock

will

not out of

are

ment

favorable

to

to

City, members of the New
Exchange, on Jan. 1

York

ac¬

Lynch,

Beane,

York

posi¬

Because of the sharp rise which
taken place in quotations of

buying which has been
the

&

Managed Market

a

middle

of

and

the

That
shall

sible

buying the 314s of 78/83.

Merrill

defi¬

very

government

assistance

ened

most

a

However,

most

government

in

(2)
ance

their

Many New Partners

has

that the market has broad¬
out in many of the
leading
on

held

Merrill Lynch to Admit

and

fbr Treasury issues
been
and
will
most

dealers

means

going

been

important/ invest r

very

has

Still

what is termed good volume which

issues. The

than

more

longer
though

even

part of
and

Only

present levels.

has been rather precipitous
has been accompanied by

trend

in

the

a

it can,

J. R.

securities

gone to levels where a de¬
of hesitation would not be an

gree

of

That private enterprise
encouraged to serve as

prise is free competition.
Only
through full and free competi¬
Engel, Jr.;
tion can free
over heavy positions in
Treasury William A. Forrester, Jr.; Titus
markets, free entry
bills.
into
The intermediate and longbusiness, and opportunities
W.
Fowler;
Robert
O'Connell;
term
for the expression and
government
issues
in
the
growth of
Joseph C. Quinn of Boston; Don¬
hands of professionals are being
ald
T.
Regan, Manager of the personal initiative and individual
shifted rather rapidly according to
trading department, and Robert judgment be assured and that the
reports which indicate these secu¬ A.
Woods, Assistant Manager of
preservation
and
rities are still moving into invest¬
expansion
of
the syndicate department.
ment
positions and in this way
such competition is basic not
only
keeping dealers and traders from
to
the economic
well-being but
accumulating
inventories
that
to the security of this Nation."
might
become
burdensome
at
ties

Strong Buying Market
The

purchases

so

1949 it spe¬

of

be

large

being crowded

governments

own

professional interest in these

line

street.

•

has

cording to reports,

prevailing

more

management

case

demand

tions

level of quotations is causing some
talk about what the monetary au¬

thorities

there

obligations.

maturities/are still being
despite

a

likely continue to be

remedy this situa¬
and

is

a

indigestion

intermediate

another

their

they have

Dealers' Positions Favorable

market, steps have

bought

price

has

as

in¬

of

(1)
shall

and

funds

as to to
eliminate the existing
inequities by changing the specifi¬
cations in order that private in¬
dustry may be afforded an oppor¬
tunity to do the financing where

Housing Act

cifically stated:

point.

still

there

given

needs

pension

competition with it. We trust that
Congress will amend this Section

tional

selling, quotations

are now

pri¬

When Congress enacted the Na¬

and

issues

considerable

a

it is

as

very

the near-term

is

the

tax

state funds
in

meet

various
for

not

of

Private

term

to

vestors

below

government market.

Although

towards

certificates, notes and bonds by

Federal

important force
determining the course of the

in

have.

the government market. Also sales

The belief that the

same
a

monetary authorities

these

it

of many of them would have ad¬
vanced
more
sharply than they

of

trend of interest rates is expected

r.ow

New York and Chicago
repurchase agreements is given
an
example of the attitude of

as

of

were

amount

28

page

taxpayers' money and that
vate business is eliminated.

large and small have taken

hold

Reserve

Banks of

that

the

Thursday, December 17, 1953

Municipal Group Protests
Federal Competition

being

issues,

...

Teletype: l\. Y. 1-2916
Bloomfield, N. J.

Montreal, Que.

Princeton, N. J.

Toronto, Ont.

•

Number 5282

Volume 178

.

..

The Commercial and Financial Chronicle

and
President
Eisenhower
signed it on May 22. It is Chapter

ure,

The

is

Act

and

es¬

tablish titles of the States to lands

beneath
state
ral

navigable

within

waters

boundaries and to the natu¬

within

resources

lands

such

and waters, to provide for the use
and control of said lands and re¬

and to confirm the juris¬

sources,

diction

and

States
the

of

control

bed

sea

of

the United

the natural

over

resources

Continental

of the

Shelf seaward of state boundaries.

But

its

life-span

short

so

was

that its builders may not have re¬

gained

their money's worth. The

road

out in 15 years,
had
disappeared

wore

traces

and its
the

by

ward

boundaries of

State

a

sea¬

or

or

of the Great Lakes

any

existed

at

became

a

or

the

time

member

such

of

State

the

Union,
by the

heretofore approved

as

Congress,

or

extended

as

they

as

or

con¬

firmed pursuant to section 4 here¬
of but in no event shall the term

'boundaries'

the

or

term

'lands

beneath

navigable waters' be in¬
terpreted as extending from the
coast

line

graphical
Ocean
into

three

miles

into

the

the

geo¬

Pacific

or

than

more

than

more

Gulf

the

Atlantic

of

Section 6(a) reads
that, "The
United States retains all its navi¬

gational
of

said

and rights in
regulation and con¬

lands

waters for the

and

navigable

constitutional pur¬

of

poses

the

the

and

of

lands

that

and

natural

resources

and

assigned to the respective
others by the section

Section
in

this

affect
the

9

part

in

States

of

and

tinental

of

deemed

the
to

that

deliver

a

factors
tive

of

of
the

of

the

the

lands

of

area

be¬

navigable waters, as defined
in section 2 hereof, all of which

natural

resources

United

States,

and

appertain to the
the jurisdic¬

and

control

which by

of

States

is

hereb.y

the

above

Con¬

enactment

gress has again expressed itself
respecting this controversial sub¬
ject. It will be recalled that twice
before
to

Congress passed
these

restore

vetoed

We

the

re¬

measures.

understand

that

of Alabama has filed

Supreme Court
file

to

and

the states, but in each
former
President
Tru¬

instance
man

a

State

in the U. S.

against

the

of

Texas, California,
Florida, and Louisiana and against

of

Priest.

jections
to

States

Mrs.

permission

the

to

file

to

motion

ob¬

they

and

until

approximately Dec. 1,
file these objections.

in

by

winning
its

and

of

the

of

us

in

of

few

the

which

the

years

cost
runs

of

of

miles
been

past
and

compara¬

know

such

into

know

have

which

roads

constructed

tively

who

thousands

many

toll

today

the

ing in such
interest

the

on

these

"The

on

roads,
this

is

The

picked

effectiveness

of

basis

same

this

winners.
first

the

of

from

year

nine

noted

are

below:

advertise-

many

contestant

entered

in

the

It

in

Bond

An

Buyer"

&

wishes

"Back

in

cents

to travel

1848, the
for

from

a

charge

horse

and




5.69%

pre-

1,210,647,897

1,728,065,122

far

that

noted

the

10-month
that

exceeds

vol-

"The

is

of

1952,

be

that

marketed

amount

unissued

but

bonds

pal

units reflected

of

as

basis

May

mu-

during the

next

few years.
Market

and

the

other

factors

new

there

in-

issues

and

25, 1953.

basis

3.09%
There-

underwent

a

in

Public

past we have
review, comparison
reference the monthly

shown by the above
index for the preceding
years.
It is four years

several

an

was

steady decline in the

since

mu-

1952

1951

1950

1949

1948

1947

2.11%

1.66%

2.07%

2.19%

2.36%

1.85%

ada at its 47th Annual Conference

2.48

2.07

1.58

2.05

2.17

2.441

1.83

1.31

Mar.

2.65

2.09

1.63

2.02

2.21

2.47

1.99

1.29

2.65

2.05

1.92

2.02

2.16

2.42

1.90

1.29

May

2.75

2.03

1.94

2.02

2.10

2.33

1.89

1.37

"

,

2.11

2.15

1.99

2.21

2.23

1.83

2.02

2.18

2.27

1.81

City, and Stifel, Nicolaus &

Aug.

2.92

217

2.06

1.85

2.13

2.33

1.81

2.92

2.28

1.98

1.83

2.12

2.39

1.82

May—Model,

Roland

&

June-r-A group

Oct.

r2.82

2.34

2.05

1.82

2.16

2.43

1.84

ment

acquire and /or construct

to

facilities

2.38

2.04

1.75

2.13

2.45

2.03

leased

to private
corporations
generally recog¬
nized governmental functions,
where the acquisition costs
are
financed or are to be financed by

for

other

be

or

than

of

general

of

arising

from

leased property;

Whereas,

Co.;

Butcher

&

vate
an

In

venture

the
for pri¬
generally had

earlier
has

adverse effect upon

of other public

Sherrerd;

Townsend,

Crouter; &

Dolphin

Co.;

&

&

Co.;

which

such

industrial

2.37

2.09

1.75

2.11

2.31

2.09

Co.;

&

deemed

be

not

desirable

t

<

munity from taxation of the
income from municipal obli¬
gations;
the position of sovereignty as
between local-State and Fed-

Continued

on

■

.

Sachs

Dillon
&

Close

Peabody
&

Co.;

G. H. Walker & Co.

Co.;

&

Kerner,

ESTABLISHED

Inc.;

1900

Schaffer, Necker & Co.; Schmidt,
Poole,
&

Roberts

&

Parke;

Stroud

INVESTMENT BANKERS
i

Company; Wurts, Dulles & Co.,

and

Yarnall &

Co.

July—Merrill
&

Pierce,

-

•

-

New

Beane, New York.

August—The

•

.

■

.

■

Members:

Lynch,

.

Fenner

Ohio

Company,

Columbus.

Stock

York

American

Midwest

Stock

Stock

Exchange
Exchange (Associate)

Exchange

September—The Northern Trust

Company, Chicago.
Presentation

of

the

award^wh 1^^^
made

to

the

for 1953

Northern

winners

Underwriting and Re-offering of Investment Securities

previous
4

/

annual

awards

1950—r-Ira

★

Dealers in Local and Over-the-Counter Securities

the

of

★

Trust

Co., Chicago—Editor.]
The

★

this

at

awkrd

[The

★

annual

were:

Haupt &

Municipal Securities

,

Co., New
-

York.

★

1951—The

Northern

Trust

Company, Chicago.
1952—B

r a u n

,

an

winner
award

was

in

the

presented
form

of

: /

,

HARTFORD

was

Each

★

ST. LOUIS

~

PROVIDENCE

&

Company, Toledo.

with

★

■

NEW YORK

Bosworth

★

a

BRIDGEPORT

in

it can adversely influence the
position and traditional im¬

(1)

(2)

to

respects, among others, these:

1.90

Co.; Hemphill, Noyes

Kidder,

Rambo,

.■*'

prop¬

may,

be

C.
;

municipal

Whereas, Although the purposes

Bodine;

Eastman,

Goldman,

Harrison

C.

years,

credit; and

Co.;

Inc.; DeHaven &

the

of such public credit

use

Blair, Rollins & Co.; Boenning &

Collings & Co.,

of

rentals

and

of Philadelphia

Dealers: Aspden, Robinson &

revenue

or

obligations the debt service there¬

1.66

Dec.

to

individuals, firms

some

1.73

2.64

Nov.

Stone,

fol¬

Some

-

..

as

mitting

1.58

dealers.)

rec-

State Legisla¬
legislation per¬
subdivisions of Govern¬

1.51

Sept.

comprising^a sub¬

its

as

resolution last June reads

f.42

New York.

resolution

lows:

deemed to

1.37

2.20

of

by

locally, be
desirable, nonethe¬
less, a continuation and broaden¬
ing of the present trend and prac¬
tice
of
use
of
public credit is

1.42%

2.15

number

Private

In our Interim Report of last
May we referred to several of the
organizations expressing concern
respecting the latent risks in¬

erty is acquired

2.40%

2.90

syndicate

Credit for

1946

Jan.

Louis.. (Managers

of

as

we
have presented such a
listing in this Report and it has
nicipal market from early May of been suggested that we do so at
1952 to
the end of June,
1953. this time. It follows:

almost

record
low

Operations

issuance

the

for

later

and

2.03%

a

1952,

market

times

forth

market

weight of

market

improvement,

yield price

,

With

the

At
set

3,

of June

as

needed

expected

are

Buyer's"

period dex of bonds of 20 large munici-

substantial

a

authorized

to

Bond

3.04.

stantial

record

reported by The Bond
Buyer's index in May, 1933.

Whereas,

as will be recalled, an
high volume record was

nicipal

&

St.

all-time

was

previously
adopted respecting municipal in¬
dustrial financing. The text of it®'

2,346,864,122

Apr!

Co.,

the

volved in the issuance of munici¬

10 Mos. J953

June

&

is

all-time

reiterated

10 Mos. 1952

after

Sherrerd,

Peabody

1946

An

On June 3 of this year the Mu¬
nicipal Finance Officers Associa¬
like- tion of the United States and Can¬

a

July

Company,

3

rider

during

Inc., New

April—Tripp

a

of

top.

pal bonds for privately owned and
operated industrial developments.

years.

JO Mos. 1951

1,231,842,561

be

There

New York City.

of

Chicago to River¬

and

year

period of each of the three

which,

March—Kidder, Peabody & Co.,

appeared
Oct.

this

Feb.

February—Kidder,

article of
of

of

competi- ceding

JO Mos. 1950

during the

all-time

of

of

tures have enacted

1953

in

as

set

$4,360,308,948 $3,924,189,070 $5,481,093,721 $6,707,440,948

will

ume

are

new

of

$3,128,466,387 $2,713,541,173 $3,753,028,599 $4,360,576,826

Total

Philadelphia.

of

4

for

January—Butcher

York

of

ommendation

1953

highways

subject

amount

Municipal Securities Financing

of'judges

monthly

winners

months

last:

12

committee

a

originality,

among

dollars think little of the pioneer¬

in

that

for

leadership. The annual award

The

also

billions

the

By

is

of

advertisements

contest

advertisement

made

was

Those
of

the

the

Convention.

Turnpikes

,

below

here.

there

above

Thursday in each month.
highest price (lowest yield
1.29% as of March 7 and April

put out during the first 10 months

As

The defendant States have

requested
have

United

the

made

comparison

feature,
reference

issues, both notes and long-term,

each

as

be

be

this

some

may

contest.

may

but

that

should

of

forth

or

set.
month

the

individuals, Secretary of the
Treasury Humphrey, Secretary of
the Interior McKay, Secretary of
the Navy Anderson
and Treas¬

publication

it

way

of

field

prepared especially for

have been

attrac¬

chosen by "The Bond Buyer"

&

the

motion for leave

complaint

a

States

urer

them

measures

lands

to

sources

program

make

tember—from

the

con¬

firmed."

By

other

to

pub-

shown

the first

The

the importance to the

of

believe

we

Yields

to
but

investments.

Con¬

lying seaward and

Association

our

respecting the

message

which

entered

natural

neath

United

previous report,
active support

the

of

Buyer"

;
advertising securities. Its pur-"
is to arouse interest and de¬ Long-term
velop effective methods of adver¬ Short-term
tising municipal securities and to •

to

rights

the

portion

seabed

Shelf

outside

be

wise

any

resources

tion

in

Bond

pose

that, "Nothing

shall

United

"The

years

Co., New York City.

states

Act

subsoil

our

is

been

to

and

3 of this Act."

limited

not

are

of

municipal

advertise-

an

have

Education Committee relating

our

are

States

in

contest

development of

specifically recognized,
confirmed, established, and vested

in

four

It will be

"The

in

ments

this

is

use,

Entries

Because

qualify for

not

need

stated

As

be

leasing,

entry in this contest

this

for

which

past

continuance

noted that in order to

Buyer" has been conducting
municipal advertising contest.

its

commerce,
navigation,
defense,
and
interna¬
tional affairs, all of which shall

rights of ownership, or the rights
of
management,
administration,

contemplates

this contest in 1954.

of

any
For
Bond

national

paramount to, but shall not
be deemed to
include, proprietary

stand,

Securities

servitude

and powers of

trol

Municipal

Ocean, or
A winner is selected each month
marine leagues
—this year January through Sep¬
Mexico;".

three

tion.

members

Bond

Buyer" to judge
the municipal advertisements con¬

lished

Advertising

its

boundaries in the Gulf of Mexico

"The

ment

1860's."

Section 2(b) provides that, "The
term 'boundaries' includes the

by

open to all.
planks and extended 10 miles,
Volume
according to Cook County records sists of Victor J. Cevasco, Albert
cited ' by
The amount of new municipal
the American Public Frank-Guenther Law, Inc., Up¬
E.
Works Association.
A two-horse ton
Liptrott.
"American issues
put out each year : during
and William S. Shanks
wagon was charged 25 cents for Banker"
the past few years has been either
of "The Bond Buyer." .
crossing, and the toll went to
"The Bond Buyer," we under- record breaking or close thereto.
27^ cents for four-horse wagons.
of

confirm

to

"That early toll road was made

47

(2407)

side, Illinois, on a toll road that plaque suitably inscribed and
$100
cost only $16,000 to build.
in cash.
The committees selected

1st Session of

65, Public Law 31,
the 83rd Congress.

cy

-

WHITE

PLAINS

page

48

48

The Commercial and Financial Chronicle

(2408)

Continued

from

page

of type and kind for enacted in the states during the
other
than, generally year. There were several of im^
recognized
governmental
func¬ portance and interest to the mu¬
tions:
nicipal trade in both categories.—
Therefore, Be It Resolved, That Editor.]
property

47

the

Municipal
of

Association

Finance

(3) the practice

af¬

local gov¬
ernments to issue obligations
for purposes not usually re¬
garded as being for regular
governmental functions; and
causes

Whereas, This Association at the
46th

Annual

Conference

assem¬

in

fully
verse

credit

(2)

Boston,

June

1953,

3,

ommendation

COMMITTEE

Miami, Fla.,

reiterates

its

private

J.

oppose

the

issuance

of

mu¬

nicipal debt obligations to acquire

[Appended

the

to

references

Report

various

to

decisions rendered and

are
court

B.

Van

J.

Charles

Co., Inc.,

Ingen &

R. Durgin

Goldw ater,

Higginson Corporation,

the

Boston

Julien Collins & Co., Chicago

,

'

Godbold

W.

\

St. Louis
G.

Elmer

Y

'

Gartman

J.

is

man

Co., Inc.,

Jim

Kenower, MacArthur & Co.,

Daisy Initiates

Named At investment

Edwin B. Horner

Scott, Horner & Mason, Inc.,
Lynchburg

Bankers Convention

First Southwest

the

Company,

Jim

Corporation,

Durham

Blyth & Co., Inc., Los Angeles

Dain

M.

&

Company,

National Bank of

ald &

Topeka

J. P. Morgan &

Offer Phila. El. Bonds
Halsey,

James W. Means

at

Company, Columbus

S. Prosser

Seattle-First National

Anaconda Reduction

Bank,

Seattle

Philip J. Rhoads
First

Bank

&

Trust

Company, Oklahoma City
&

"Anaconda" STANDS

FOR MORE THAN METALS!

New

Co.,

farmers.
A
plentiful supply of phosphate is vital to plant
growth, a prime requisite for bountiful crops.The
soils of many Western States, low in
phosphates
to
begin with, lose more and more with each har¬
vest. With Anaconda's Treble
Superphosphate or
Phosphoric Acid, farmers can easily replace this
necessary chemical and substantially increase their
per-acre production.
Anaconda's fertilizers are produced at the com¬
pany's Reduction Works at Anaconda, Montana,
from phosphate rock mined at Conda, Idaho.
Containing about 42% available phosphoric acid
(almost triple the amount available in ordinary
low grade
phosphate fertilizers) Treble Super¬
phosphate's granular form permits easy spreading.
During 1952, Anaconda produced more than
100,000 tons of treble superphosphate and phos¬
phoric acid. Based on numerous agricultural col-

conducted in the
area,
this production, properly
applied, would increase food crops in 15 Western
States

the

Inc.,

300,000,000 pounds of vegetables
750,000

First

Brainerd H.

to

This

a new

sulphuric acid plant is being

and

directed

the same
goal
products for the country.
to

Chile

.

.

.

program are

more

30,

Company

Copper Mining Company

Copper Company

Greene Cananea

Anaconda Sales

Copper Company

International

Corporation,

A. G. Becker & Go. to

Elect New Offiicers
SAN

and better
63274-B

FRANCISCO,

fective

Jan.

will become
C.

4,

S.

A.

Company

Douglass

Vice-President, Donn

Douglass,

Emmett

Calif.—Ef¬

Earl

Assistant

Larkin

Secretary,

Naillen, and

Second

Vice-

Presidents of A. G. Becker & Co.

in

electric

the

business.
12

months

ended

Sept.

and its
consolidated subsidiaries had

the

company

operating

revenues

of $184,-

of $29,equal,
after
preferred
dividends to $2.36 per common

727,906

and

net

income

530,650,
share.

Hill Brothers to Admit
ST.

LOUIS, Mo.—Hill Brothers,
Security Building, members of the
New

York

and

Midwest

Stock

Exchanges, on Jan. 1 will admit
George H. Erker to partnership.
Mr. Erker has been with the firm

for

some

time.

Incorporated, members of the New
York

Stock

Company

Smelting and Refining Company

primarily
the

1953,

gross

and Ralph E. Van de

Company

gaged
and gas

New York

expansion program, at mines, mills and

fabricating plants. All phases of the

Andes

of

facilitate Anaconda's fertilizer
production.

mining and processing of phosphates is
only a small part of Anaconda's operations. Pro¬
ducing a lai^e family of metals for America, Ana¬
conda is
nearing completion of a far-flung improve¬
ment

Bank

Whitbeck

The First Boston

Presently,
built

in¬

company and
1954 through

For

4,000,000 bushels of grain

con¬

meet

Philadelphia Electric Co. is en¬

National

Chicago, Chicago

4,500,000 sacks of potatoes

Anaconda Aluminum




The

To

amounts in later years.

George B. Wendt

tons of alfalfa

company's

program.

its subsidiaries from
1958 plan to spend
about $310,000,000.
Of the total
-it is planned to spend about $76,National 000,000
in
1954,
with
varying

Philadelphia
Bank, Philadelphia

tons of beet sugar

the

of

creasing demands of its customers
for electric, gas
and steam, the

Fahey, Clark & Co., Cleveland
The

200,000

proceeds from the sale of
applied toward

cost

the

Co., Pittsburgh

Robert V. Wehrheim

Anaconda Wire & Cable

COPPER MINING COMPANY

&

redeemable,

bonds will be

struction

William H. Watterson

by:

The American Brass

AnacondA

tests

intermountain

\

;

plus accrued interest.

Net

Orleans

Thomas

lege and County Agents'

'
be

the

year,

Anthony E. Tomasic
A little known part of Anaconda is its production
of high-strength phosphate fertilizers for Western

will

bonds

option of the company, at
prices ranging from 105% for the
first five years to par the last

Denver

James E. Roddy
Scharff & Jones,

Electric

Philadelphia

and

of 99.017%.

bid
The

at

Ray L. Robinson
Garrett-Bromfield

11 offered $20,-

refunding mortgage
bonds, 3 Vs% -series due Dec. 1,
1983, at 99.517% and accrued in¬
terest, to yield 3.15%. Award of
the issue was won by the group
at competitive sale on Dec. 10 on
a

National

first

Inc. and

Co.

&

Dec.

on

of

000,000
Co.

Dennis E. Murphy
The Ohio

Stuart

associates

Courts & Co., Atlanta

Anaconda, Montana. Bags
are
filled at rear, go through I
".
stitching and sealing operations,
then are carried by
conveyor
directly to freight cars.

Company. Cleveland.

Halsey, Stuart Group
Co., Incorpor¬

ated, New York

at

Chicago; Jerome

Tegeler,

Company, Inc.,

David B. McElroy

Malcolm

New

Beane,

&

City; George B. Wendt, First

York; C. Bert McDonald, McDon¬

Harold P. Lowe
&

Hess,

Dempsey-Tegeler &
Co., St. Louis; Harold J. Schulter,
First
National of Chicago, New

Minneapolis

Estes

Fenner

F.

William J. Lau
J.

E.

&

York

Summers D. Lamon

Wilbur

are

Hess, Houston, Texas,*:
Norman P. Smith, Merrill Lynch,

Fridley
Pierce,

Securities

First

Association

Bankers

Convention
Charles F. Jones

Order of

the

Daisy elected at the In¬

vestment

Dallas

of

members

New

William C. Jackson, Jr.

Works

Cowin and
in

partners

are

Hettleman & Co."

Detroit

operation

Josephthal

in

Mr.

Rose,

Goldwater

Mr.

part¬

Mr. Gart¬

Norris Hitchman

T.

Superphosphate bagging

limited

.

partner

a

Co.'-Mr.

&

Chicago

Treble

Margaret

LKastor,

.

ner.

>

Hassman

G. Becker &

A.

M.

n

...

.

&" Co.,

Dempsey-Tegeler

;

and

„

,,■

*

Earl

Exchange

member, gen¬
eral
partners,

S. Emerich

Milton

Rose,

Cowin,
Leo J.

and

Lee

J.

Daniel

legislation
Chester

be

Gartman,

York

New

-

will

ners

Mortimer

James G. Couffer

brief

the

business. Part¬

Louisville

Almstedt Brothers,

en¬

urities

sec

Burkholder, Jr.

R.

to
in

gage

Dougherty & Co.,
Philadelphia

adopted.

and

purposes,

City,

A. Webster

consider the long-term ad¬ Court Decision and Legislation in
effects of the use of public
the States
for

Co. will be formed

&

A.Webster Dougherty,Chairman

rec¬

heretofore

as

the New York

1

of Gartman,
with
offices at 1 Wall Street, New York
Rose

SECURITIES

MUNICIPAL

To Be Formed in NY
Effective Jan.

Stock Exchange firm

States

and Canada assembled at its 47th

Mass., June 18,
1952, adopted a resolution recom¬
mending that municipal finance
officers and legislators (1) care¬
bled

Respectfully submitted,

Officers

United

the

Annual Conference in

Government may be
fected adversely;

eral

Gartman, Rose Co.

purposes

Municipal Group Protests
Federal Competition

Thursday, December 17, 1953

...

make

firm's
Street.
ners

&

Exchange.

their
office
All

They will

headquarters
at

were

465

in

the

California

formerly

part¬

in Douglass, Van de Naillen

Co.

Thomson & McKinnonAdd
On
will

Jan.

1,

Camille

B.

Rogers
part¬

be admitted to limited

nership in Thomson & McKinnon,
11 Wall Street, New York City,
members of the New York Stock

Exchange.

,

Volume 178

Number 5282

.

The
Commercial and Financial Chronicle

..

(2409)

INVESTMENT BANKERS ASSOCIATION

OF AMERICA
•

4*

'

✓

-

'

.

_

'

;

:

.

,

'

.

•

.

,

OFFICERS 1953-1954

:

)

'

•

•

"

'

•

••

••'•

\

President

Vice-President

Vice-President

T. Jerrold Bryce
Clark, Dodge & Co.,
New

Robert

H.

American Securities

York

Holden K. Farrar

Craft

Smith, Barney & Co.,

Corporation,

Chicago

New York

Vice-Presid ent

V ice-President

V ice-Presid ent

Lewis Miller

Ralph E. Phillips

Walter A. Schmidt

Dean Witter & Co.,

Schmidt, Poole, Roberts & Parke,

Los Angeles

Philadelphia

First National Bank
*




of Chicago

49

50

(2410)

The Commercial and Financial Chronicle

Thursday, December 17, 1953

...

IBA GOVERNORS

Charles M. Abbe
Blyth

&

Co.,

W, K.
Stein

Inc.,

Boston

Philadelphia

William S.

Wm. C.

Hughes
&

First

Durst,

Eaton

&

City

H.

Morton

&

Co.,

&

Dallas

Co.,

Fahey,

Clark

Cleveland

Harriman

Co.,

Russell A. Kent
Bank
N.

Mich.

of

Sutro

Incorporated,

San

&

J. G.

Co.,

T.

&

S.

W.

A.,

Hutton

New

York

&

Boston

Woody

Waldo

&

Waldo

Heimerdinger,

Blair

James E.

Roddy

Hemphill

Hemphill

Co.,

Jsmes H. Lemon
Johnston,

Co.,

Co.,

City

Lemon

Walter
<fr

Maynard

Washington, D.C.

Co.,

New

York

Stone &

City

Joseph L. Ryons
Lester,




Ryons

Los

&

Angeles

Co.,

Joseph W. Sener
John

C.

Company,

Legg

&

Baltimore

Garfield J.
Inc.,

Taussig

Day
St.

& Co.,

Louis

Corp.,

Chicago

&

Nathan K. Parker
Kay,

Company, Chicago

Taussig,

Webster

Securities

Richards &

John J. Quail
Quail

Co.,

Pittsburgh

&

Davenport,

Co.,
Iowa

William M. Rex
Clark, Dodge &
New

York

Philip J. Rhoads

Co.,

First

City

&

NatiovMl

Trust

Oklahoma

Orleans

&

Seattle

Robert G. Mead

Shearson, Hammill &

Francisco

William

Louis

E.

Wainright & Co.

Ga.

Heimerdinger

Walter,

Francisco

H. C.

Co.,

Cincinnati

James J. Lee

America,

Lee H. Ostrander

Chapin S. Newhard
Newhard, Cook & Co.,
St.

&

&

Atlanta,

City

Robert L. Harter

George

Ripley

Courts

Bullock,

York

New

City

Forrester A. Clark

Hugh D. Carter, Jr.

Hugh Bullock
Calvin

Co.,

Chicago

MacArthur

Detroit,

York

Edward C.

Co.,

&

Trust

York City

Scharff & Jones, Inc.
New

&

Company, Chicago

Incorporated,
New

Wells

New

Leslie J. Fahey

Howard,

John L. Kenower
Kenower,

Southwest

Mullaney,

<

Robert E. Broome
Guaranty

Boston

Paul L. Mullaney

William H. Morton

Company,

Columbus

San

W.

Ohio

City

Incorporated

Jackson, Jr.

Company,

Inc., Los Angeles

The

Chas. F. Eaton, Jr.

Securities

York

York

New

Corporation,
New

Ewing T. Boles

Goldman, Sachs & Co.,

Boyce,

Joseph W. Dixon
American

Townsend,

Crouter & Bodine,

Wagenseller

&

Philadelphia

Gordon Crouter
De Haven &

Walter F. Blaine

Barclay, Jr.

Bros.

Arthur

S.Torrey

W. C. Pitfield &

Co.,

Ltd., Montreal

Charles S. Vrtis
Glore,

Forgan

Chicago

&

Co.,

Lawrence B. Woodard
Woodard-Elwood &
Co.,

Minneapolis

Paul E. Youmans
Bosworth,
Co.,

Sullivan

Inc.,

Denver

Bank

Company,
City, Okla

Henry J. Zilka
&

j

r

Williston

Bruce

&

Co.,

Portland, Oreg.

'

Volume 178

Number 5282

.

.

.

The Commercial and Financial Chronicle

Pictures Taken at 1953 IBA Convention
At

New

Hollywood Beach Hotel, Florida

Officers:

Barney

&

Witter

&

Robert H. Craft, American Securities Corporation, New York; Holden K. Farrar, Smith,
Co., Chicago; T. Jerrold Bryce, Clark, Dodge & Co., New York; Ralph E. Phillips, Dean
Co., Los Angeles: Walter A. Schmidt, Schmidt, Poole, Roberts & Parke, Philadelphia;
Lewis Miller, The First National Bank of Chicago, Chicago

Ewir.g T. Boles, The Ohio Company,

Columbus, Ohio,
Clark,

pinning badge of office on T. Jerrold Bryce,
Dcdge & Co., incoming President

Gordon Crouter, De Haven & Townsend, Crouter & Bodine, Philadelphia; Edward C.
Harriman Ripley <£ Co. Incorporated, Chicago; William C. Jackson, Jr., First Southwest
Company, Dallas; James J. Lee, W. E. Hutton & Co., New York; Walter Maynard, Shearson, Hammiil
& Co., New York; William H. Morton, W. H. Morton & Co. Incorporated, New York; Paul L. Mullaney,
Mullaney, Wells & Company, Chicago; Chapin S. Newhard, Newhard, Cook & Co., St. Louis; Lee H.
Ostrander, William Blair & Company, Chicago; James E. Roddy, Sharff & Jones, Inc., New Orleans;
Joseph W. Sener, John C. Legg & Company, Baltimore
\
New

Governors:

George,

Mr.

&

Mrs. Dclmont K. Pfeffer, National

of New

City Bank

York, N. Y. C.; Richard W. Courts,
Courts

&

Co., Atlanta

Mr.
Mr. & Mrs. T.

Clark, Dodge

Jerrold Bryce,

&

Mrs. Ewing

The Ohio

T. Boles,

Company, Columbus

& Co., New York




Board

of

Governors

Education Committee:

Meeting

State

Legislation

Committee:

Paul

L. Mullaney,

Mullaney,

Norman P. Smith, Merrill Lynch, Pierce,

Wells & Company, Chicago,

Chairman

Fenner & Beane, New York,

Chairman

\

52

(2412)

The Commercial and Financial Chronicle

•

Wilbur
&

F.

G. Hoye, Chas. W. Scranton
Co., New Haven, Conn.; Mrs. Frank
H. Morse, New York

Lester
H.
Empey, American
Trust
Company,
San Francisco;
Paul W.
Waterman, Jr.^Security-First National
Bank, Los Angeles

Mr.

& Mrs. R. Victor Mosley, Stroud & Company, Incorporated,
Philadelphia; Mr. & Mrs. ArleightP. Hess, Woodcock, Hess & Co.,
Philadelphia

H.

Virgil Sherrill, Shields

& Co., Houston,
Mrs.




Henry
Stock

Mrs.

&

Donald

National

C. Jackson, Jr., First South¬
Company,
Dallas;
Dudley
C.
Investment Bankers Associa¬
tion, Chicago

Sloan, Donald Sloan & Co., Portland, Oreg.; Mr. & Mrs. Henry J. Simonson, Jr.
St Research
Corp., New York; Mr. & Mrs. M. G. H. Kuechle,
National Securities & Research Corporation, Chicago

Peters, Peters, Writer & Christensen, Inc., Denver; E. Ray
Allen, E. Ray Allen & Co., Chicago; Mrs. Donald F. Brown, Denver;
O, Jerry Jorgenson, Peters, Writer & Christensen, Inc., Denver

Mr.

&

W. Putnam,
Association of
Exchange Firms, New York;
Funston, President of
New York Stock Exchange

G. Keith

Securities

Gerald P.

& Company, New York City; Joseph R. Neuhaus, Underwood, Neuhaus
Texas; Mrs. H. Virgil Sherrill; Paul W. Fairchild, First Boston Corporation, Chicago;
R. Neuhaus; Avery Rockefeller, Jr., Dominich <ft Dominick, New York

Joseph

William

Smith,

New York

Mr.

Thursday, December 17, 1953

west

George C. MacDonald, McLeod, Young,
Weir, Inc., New York;
Edward
F.
Mulqueen, Mills, Spence & Co., Inc.,

V. Reilly, Commercial & Financial Chronicle,
New York; Mr. & Mrs. Thomas M. Johnson,
Johnson, Lane, Space & Co., Savannah; James E. Roddy, Scharff & Jones, Inc., New Orleans;
Wm. Russell Barrow, Barrow, Leary & Co., Shreveport

...

Mrs. Marquette

Mrs.

Marion

Horner,

Barksdale, Lynchburg, Va.; Mr. & Mrs. Edward
Scott, Horner & Mason, Inc., Lynchburg, Va.;
Sallie C. Horner, Lynchburg, Va.

de Bary, F. S. Smithers

<&

Co., -New York;

B.

Robert B. Harkness, Dwinnell,
Birmingham;

Harkness & Hill, Boston; Mr. & Mrs. Miles A.. Watkins, Jr., Stubbs, Smith <ft Lombardo,
Frank A. Chisholm, Varnedoe, Chisholm & Co* Savannah

Volume 178

Number 5262

,^rs"e ?.8,ePB
bmtth &

otubbs,

r

.

.

.The Commercial and financial Chronicle

Lombardo,

Lombardo,

Mr. & Mrs. David H. Callaway, Jr.,
First of

Birmingham

Mr. & Mrs. William W. Mezger, G. C. Haas

& Co.,
New York City;
Mr. & Mrs. Arthur S. Friend,
Folger, Nolan-W. B. Hibbs & Co., Washington, D. C.

Michigan Corporation,
New

York

(2413)

Robert H. McCrary, Parker Corpora-

J. Kary Beavers, Trust Company of

Angeles; J. Denny May,
Corporation, Boston

Georgia, Atlanta; Walter H. Stohl,
Fidelity Union Trust Co., Newark

tion,

Los

Parker

Mr. & Mrs. Irving J. Rice, Irving J. Rice & Co.,
St. Paul; Mr. & Mrs. Ira D. Owen, AllisonWilliams Company, Minneapolis

Shields; Mr. & Mrs. Eugene Barry, Shields & Company, New York; Mr. & Mrs.
Baker, Jr., Reynolds <ft Co., New York; Cornelius Shields, Shields & Company, New York

Mrs.

Cornelius

John

D.

&.Co., Atlanta; Charles S. Frye, Chicago Daily News, Chicago; Philip J.
Bank <£ Trust Company, Oklahoma City, Okla.; George R. Waldmann,
New York; George Le Vind, Blyth & Co., Inc., New York City; Homer
Browning, Marine Trust Company of Western New York, Buffalo; William P. Sharpe, Mercantile Trust
Company, St. Louis; Harry W. Faath, Tripp & Co., Inc., New York; Mark A. Lucas, Jr.,
Lucas, Eisen & Waeckerle, Kansas City, Mo.

James

W Means,

Rhoads,

First

Courts

National

Mercantile Trust Company,




Mr. &

Mrs. Homer Browning, Marine Trust Comof Western New York, Buffalo; Mr. & Mrs.
Anthony Tomasic, Thomas & Co., Pittsburgh

pany

Mr.

& Mrs. Harvey B. Gram,
Johnston, Lemon & Co.,
Washington, D. C.

53

Jr.,

Gus G. Halliburton, Equitable Securities Corporation, Nashville; Mr. & Mrs. Marshall H. Johnson,
McDaniel Lewis & Co., Greensboro, N. C.

Mr. & Mrs. Henry J. Zilka, J. R. Williston, Bruce <6 Co., Portland, Oreg.; Mr. & Mrs. John Swaney,
The Keystone Company, Boston; Mr. & Mrs. Sidney L. Sholley, The Keystone Company, Boston

Robert

L.

Osgood,

Vance,

Sanders

&

Company,

Boston;

John H. Edwards, R. J.~ Edwards, Inc.,

Oklahoma City, Okla.; E. Norman Peterson, Equitable Securities Corp., New York City; Mr.
E. J. Altgelt, Harris Trust & Savings Bank, New York City; Hugh D. Carter, Jr., Courts

& Mrs.
& Co.,

Atlanta; Craig de V. Simpson, Bankers Trust Company, New York City; Eugene G. McMahon,
Heller, Bruce & Co., New York; Jack Couig, Hirsch & Co., New York City; Eugene De Staebler,
Sills, Fairman & Harris, Inc., New York City

54

The Commercial and Financial Chronicle

(2414)

George M. McCleary, Florida Securities Company,
Petersburg; Herbert I. Shaw, Vance, Sanders &
Company, New York; Joseph W. Sener, John C.
Legg & Company, Baltimore
St.

Mr.

New
New

&

V.

h'coT
Cook,

Theodore A. Von Glahn, Salomon
Bros. & Hutzler,
Seymour Fabricant, William E. Pollock & Co., Inc.,
City; Mr. & Mrs. William E. Pollock, Wm. E. Pollock
& Co., Inc., Beverly Hills, Calif.

B

Gallager,

Yarnall

&

Co.,

Philadelphia;

B.

J.

Van

Elvin
S.

K.

Lee,




Robert

L.

Osgood,

Quigg, Paine, Webber, Jackson
York City;
Miss
Mary Lincoln,
Association, Chicago; Charles
Perrigo, Hornblower & Weeks, Chicago

Cur.is,

Investment
R.

New

Bankers

Popper, I. M. Simon & Co., St. Louis; Mr. & Mrs. Eugene
Valley National Bank, Phoenix, Ariz.; Julian L. Meyer,
Bros. & Hutzler, Chicago; Joseph
E. Refsnes,
Refsnes, Ely, Beck & Co., Phoenix

Ingen,

B.

J.

Van

Ingen

&

Co.,

Y/°rk CitI ;rFra,ncis P' Gfa»a^er' *,dder' £e<lboiy..& Co> Nfw •Y°;rkpCit(.y:pR^bert
Co.
Incorporated,
Miami^ Donald C. Patterson, Chemical Bank & Trust

Companies Committee:

Mr. & Mrs. James F.

&

Salomon

B
i
B. J. 7
Van Ingen &

Investment

.

.

Mrs.

York;
York

Herbert
H.

Donald W. Hayden, Baumgartner, Downing & Co.,
Baltimore; Robert W. Allison, Coffin & Burr, Inc.rpcra'ed, Boston; Walter V. Kennedy, Coffin &
Burr, Incorporated, New York City

Vance, Sanders & Company, Boston,

Chairman

C.

B.

McDonald,

McDonald

&

...

Thursday, December 17, 1953

Edward J. Jennett, First National Bank of Chicago,
Chicago; John Latsnaw, E. F. Huttcn & Company,
Kansas
City,
Mo.;
Francis
B.
Bowman,
Chase
National Bank of the City of New York, N. Y. C.

Allen J. Nix, Riter & Co., New York; Mrs. Edgar J. Loftus;
Joseph
Ludin, Dillon, Read & Co., New York; Mrs. Henry R. Hallowell,
Hallowell, Sulzberger & Co., Philadelphia; Edgar J. Loftus,
R. S. Dickson & Co., Inc., New York

Co

Cleveland-

Milton

C.

H..W

John Redwood> Jr., Baker, Watts'& Co., Baltimore; Wm.
Shreveport; Clifton A. Hipkins, Braun, Bosworth & Co.,

rin„or

Russell

X

Barrow,

P

Barrow,

Leary

&

Co'.,

New York City; Claude W. Wilhide,

Stock Exchange Relations Committee: Charles Morse,
Jr., Hemphill, Noyes & Co., New York, Chairman

Volume 178

Herbert

R.

Number 5282

Anderson, Distributors

rated, New York;
Robert

Ewing

Mr

.

The Commercial and

Group, Incorpo-

E.

Daniel, Pacific Northwest Company,
Seattle; J. Emerson Thors, Kuhn,

Co., New York

(2415)

Financial Chronicle

&

Mrs

G.
&

Chicago; Irving Koerner, Allen & Company, New
York City; W. Frederick Spence, Townsend,
Dabney & Tyson, Boston

V.

John

T.

Knox,
San

Wm. E.

Pollock, Wm. E. Pollock & Co., Inc., New York City; Seymour
Fabricant, Wm. E. Pollock & Co., Inc., New York City

Co.,

55

Beverly W. Landstreet, 3rd, Clark, Landstreet &
Kirkpatrick, Nashville; Henry B. Tompkins, The
Robinson-Humphrey Company, Atlanta; William J.
Anderson, Jr., Equitable Securities Corporation,

Nashville

Federal Land Banks, New York; J. Hayden Hull, Bank of America, N.
Francisco; Mr. & Mrs. James C. Ward, Third National Bank, Nashville;
Mr. & Mrs. Leland M. Kaiser, Kaiser & Co., San Francisco

Salim L. Lewis, Bear, Stearns & Co., New York; Mr. & Mrs.

Sidney J. Mohr, Jr., Thornton, Mohr & Farish, Montgomery, Ala.; Karl P. Herzer, R. L. Day &
New York; Mr. & Mrs. Denton D. Hall, R. L. Day & Co., New York; Mr. & Mrs. James P. Foster,
Rand & Co., New York; Mr. & Mrs. Powhatan M. Conway, The Bankers Bond Co., Inc.,
Louisville, Ky.
\




Dougherty, A. Webster Dougherty &
Philadelphia;
Murray
Hanson,
Investment
Association, Washington, D. C.; Robert
Wehrhe.m, Philadelphia National Bank, Philadelphia; David M. Wood, Wood, King &
Dawson, New York

Co.,

Bankers

C. Smith, DeCoppet & Doremus, New York;
Chas. W. Scranton & Co., New Haven, Conn.;
L. Parry, DeCoppet & Doremus, New York

Howard
Hoye,

Mrs. Sidney

Webster

Gilbert Hattier, Jr., White, Hattier & Sanford, New
Joseph P. Condon, McDougal & Condon,

A.

Orleans;

Kilburn, Greenshields & Co. Inc., Montreal; Louis G. Mudge, International Bank, New York City;
T. Boles, The Ohio Company, Columbus; Mr. & Mrs. I. D. Owen, Allison-Williams Company,
Minneapolis; Mrs. Ewing T. Boles; Amory Parker, The Parker Corporation, Boston

Wilbur
Mr.

.

Mrs. Don Sloan, Portland, Oreg.;

Loeb &

Peter

.

T. & S. A.,

W. L. Lyons, W. L. Lyons & Co., Louisville, Ky.; Mrs. Roderick D.

Moore, Richmond, Va.; Mr. & Mrs. James W. Chandler,
W. L. Lyons & Co., Louisville

Rudolf Smutny, Salomon Bros. & Hutzler, New York; Bert Horning, Stifel, Nicolaus & Company,
Incorporated, St. Louis; Mrs. Rudolf Smutny; Arthur A. Christophel, Reinholdt & Gardner, St. Louis;
Mrs. Walter W. Craigie;
Robert W. Clark, Jr., Lehman Brothers, Chicago; Walter W. Craigie,
F. W. Craigie & Co., Richmond, Va.; F. Seymour Barr, Barr Brothers & Co., New York

56

(2416)

Mr.

&

Mrs.

The Commercial and Financial Chronicle

Hugh Bullock,

Mr.

Calvin Bullock, New York

Ernest

Mrs.

Graham

Mr. & Mrs. Kurt H. Grunebaum, New
York Hanseatic Corporation, New York

Walker, Joseph
York

McManus & Co., New

Richard
G.

&

B. Walbert, Blyth & Co., Inc.,
Chicago; Mr. & Mrs. Willard
DeGroot, Bateman, Eichler & Co., Los Angeles; Donald E.
McFarland, Kalman & Co., Minneapolis

Mr.

&

Mrs.

Mr.

&

Claude
Mrs.

C.

F.
B.

Turben, Merrill, Turben & Co., Cleveland;
McDonald, McDonald & Co., Cleveland

O.

Dorbritz, Moore, Leonard <£ Lynch, Pittsburgh; Bayard Dominick II, Dominick & Dominick,
Mrs. Charles McK. Lynch;
Avery Rockefeller, Jr., Dominick & Dominick, New York
City; Mrs. Bayard Dominick; Charles McK. Lynch, Jr., Moore, Leonard & Lynch, Pittsburgh;
F. Vincent Reilly, Commercial & Financial
Chronicle, New York City

New York

Federal

Taxation Committee:




James M.

Mr. & Mrs. James H. Lemon, Johnston,
Lemon & Co., Washington, D. C.

Hutton, Jr., W, E, Hutton & Co., Cincinnati, Chairman

Mr.
J.

...

Thursday, December 17, 1953

Mr. & Mrs. Hugh W. Long, Hugh W.
Long & Co., Inc., Elizabeth, N. J.

&

C.

Mrs. Richard C. Noel, Van
Alstyne, Noel & Co., New York;
Bradford, J. C. Bradford & Co., Nashville; Mr. & Mrs. Julian
A. Space, Johnson, Lane, Space & Co-., Savannah

Lester H. Empey, American Trust Company, San Francisco; Erwin W. Boehmler, Investment Bankers
Association, Chicago; Harold J. Schluter, First National Bank of Chicago, New York
City; George B.
Wendt, First National Bank of Chicago, Chicago; Lewis Miller, First National Bank of Chicago,
Chicago; Carl T. Naumberg, Stern, Lauer & Co., New York

Public Service Securities Committee: Warren H. Crowell, Crowell, Weedtn & Co., Los Angeles, Chairman

Volume 178

Number 5282

.

.

.

(2417)

The Commercial and Financial Chronicle

Lawrence

Mr.

&
Mrs. John
C.
Hagan, Mason-Hagan, Inc.,
Richmond, Va.; Mr. & Mrs. Dean McCormick,
McCormick & Co., Chicago

Malcolm

Chase

S.

Prosser,

National

Bank

Phoenix;

Russell R. Rowles,

Mrs.

Seattle
of

the

Robert

First National Bank, Seattle; Mrs. Robert L. Hatcher; John S. Linen,
City of New York; Mr. & Mrs. Eugene S. Lee, Valley National Bank,
L. Hatcher, Chase National Bank of the City of New York

Rowles, Winston & Co., Houston; Walter C. Lyklema, A.
Dallas; Arnold J. Kocurek, Rauscher, Pierce & Co.,

Charles C. Pierce,

Pierce, Rauscher, Pierce

& Co., Dallas; Mr. & Mrs. Paul A. Just,
Chicago

Federal Legislation Committee:




B.

Philadelphia;
Municipal Securities Committee: A. Webster Dougherty, A. Webster Dougherty & Co., Phila., Chairman

C. Allyn & Co., Chicago;
San Antonio; Charles C.

Television Shares Management Co.,

H. Warren Wilson, Union Securities

Corporation, New York, Chairman

r

,

Illoway,
Mr.

Close

&

Aspden,

Robinson

& Mrs. L. Paul Close,
Kerner, Philadelphia

57

&
Co.,
Rambo,

& Mrs. Kelton E. White, G. H. Walker & Co., St. Louis; Mr. & Mrs. Henry J. Blackford, Jr.,
M. Law & Co., Spartanburg, S. C.; Mr. & Mrs. Joseph T. Johnson, The Milwaukee Company,
Milwaukee, Wis.; Mr. & Mrs. William S. Hughes, Wagenseller & Durst, Los Angeles; Arthur N.
McGeoch, Jr., The Milwaukee Company, Milwaukee. Seated: Mr. & Mrs. Alden H. Little,
Investment Bankers Association, Chicago

Mr.
A.

E.

Desmond

Dominion

B.

Magee, Dominion Securities Corporation, New York City; Andrew J. Raymond,
Corporation, New York City; George C. MacDonald, McLeod, Young, Weir, Inc.,
Edwin F. Peet, Burns Bros. & Denton, Inc., New York; J. A. Kingsmill,
Investment Dealers' Association of Canada, Toronto

Securities

New

York;

Membership

Committee Meeting:

Robert L.' Harter, Sutro & Co.,

San Francisco, Chairman

\

58

(2418)

The Commercial and Financial Chronicle

Joseph R. Neuhaus, Underwood, Neuhaus & Co., Houston; Mrs. C. Meredith Boyce; John H. Brooks,
Putnam & Co., Hartford, Conn.; Mrs.
Joseph R. Neuhaus; Mrs. John H. Brooks; C. Meredith Boyce,
Mercantile-Safe Deposit & Trust Co., Baltimore

Mr.

& Mrs. Clarence H. Adams, Securities & ExCommission, Washington, D. C.; Murray
Hanson, Investment Bankers Association,
Washington, D. C.

change

Albert

Pratt, Paine, Webber, Jackson & Curtis,
Boston; Holman R. Wilson, The Kentucky Company,
Louisville; John Brick, Paine, Webber, Jackson <ft
Curtis, New York

J.
R.

Kary
S.

...

Thursday, December 17, 1953

Beavers,

Dickson

Mrs. J. W.

Trust Company of Georgia, Atlanta; Mrs. James S. Budd, Jr.; Logan V. Pratt,
Co., Inc., Chicago; Mr. & Mrs. J. Hollis Austin, J. W. Tindall & Co., Atlanta;
Tindall, Atlanta; James S. Budd, Jr., Citizens & Southern National Bank, Atlanta

&

Mr.

& Mrs. Jesse P. Donnally, Peoples National
Bank, Charlottesville, Va.; Mrs. W. Olin Nisbet, Jr
Charlotte, N. C.

Rollin
Dana

C.
F.

Maurice

Bush,
Baxter,

M.

National City Bank, New York;
Hayden, Miller & Co., Cleveland;
Hatcher, First National Bank in Dallas,
Dallas

X.J

Mr' & Mrs. Arnold J. ^ Rowl. es'Rowles, Winston & Co., Houston;
t ™rs' ARuSfln.

Mr.

Mr. & Mrs. Henry S. Lynn, Sterne, Agee & Leach, Birmingham,

Kocurek, Rauscher, Pierce & Co., San Antonio

Ala.;

Mr. & Mrs. Mortimer A. Cohen, Sterne, Agee & Leach,
Montgomery

Mr. & Mrs. John H. Rauscher, Rauscher, Pierce & Co., Dallas; Mr. &
Hal H. Dewar, Dewar, Robertson &
Pancoast, San Antonio

Mrs.

n

,

-

a

x

v, y

II

LSnSF

J'**?-*':

>-»•

*

—$r
»

,

^*-

■.

ir

J#

%z=- •s

;«

*'%mr

'

"V

.

.

Y
K...
Association of Stock




Exchange Firms Breakfast

Industrial

Securities

Committee;

Claude

F.

Turben, Merrill,

'

>

Turben

&

Co., Cleveland, Chairman

-Volume 178

Mrs. Wiilard A.
Samuel

L.

Number 5282

.

..

Lynch, New York City; Mr. & Mrs.
Varnedoe, Chishotm & Co.,

Varnedeie,

Savannah

W.

Pearson

Mr. & Mrs. John Corrington,
&

Paine, Webber, Jackson

Curtis, Chicago; Mrs. Charles M. Werly,
Mrs. Robert MacArthur, Boston

Scott, Wood, Gundy & Co., Limited, Toronto;

&
Mr.

Mrs. R. W.
&

Boston;

Mr.

Pressprich, Jr., G. H. Walker & Co., New York;
J. Crawford, Squires, Sanders & Dempsey,

Mrs. Henry

Mr.

&

&

Monroe V. Poole, George
Mrs. Edward

Mr.

James

Mrs. K. P. Tsolainos, Baker, Weeks & Co.,
York; Milfon A. Manley, Manley, Bennett
&

Noel, Van Alstyne,
W. Pearson Scott;

Mrs.

Mr.

&

New

Edward S. Johnston, Wood, Gundy & Co.,

Inc., New York; Eric S. Morse, W. C. Pit.ield & Co., Inc., New York; Richard C.
Noel & Co., New York; W. T. K. Collier, Collier, Norris & Quinlan, Montreal; Mrs.
Mrs. Edward S. Johnston; Mrs. Eric S. Morse

Mr.

(2419)

The Commercial and Financial Chronicle

&

G.

John

Mrs.

&

£. F. Hutton

A.

Lyles,

Corporation, New
Clark, Calvin Bullock,

Boston

First

Mr. & Mrs. Robert E.
New

York

Latshaw,
Woody &
Cincinnati;

Heimerdinger, Walter, Woody & Heimerdinger, Cincinnati; John
City, Mo.; Mr. & Mrs. John M. Heimerdinger, Walter,

Company, Kansas

Cincinnati;

Heimerdinger,

B. Gibbons & Co., New York;

New York

G.

Stanley

Julian

H. Hills, Eldredge & Co.,

York;

Co., Detroit

59

A.

Mr.

McKie,

Magnus,

&

Mrs.

Denver;
Mrs.

Magnus

Weil,
&

Co.,

Roth

&

Irving

Co.,

Cincinnati

W. Pleasants, International Trust Company,
Barcus, Barcus, Kindred & Co., Chicago; Mr. &
Bancroft, Stranahan, Harris & Co., Toledo

Aaron

James
E.

The

S.

M.

Cleveland

Mr.

Hornblower & Weeks, New York City; Robert E. Clark, Calvin Bullock, New York
City* Norman P. Smith, Merrill Lynch, Pierce, Fenner £ Beane, New York City; Emil J. Pattberg, Jr.,
First Boston Corporation, New York City; James A. Lyles, First Boston Corporation, New York City;
Dennis H
McCarthy, First Boston Corporation, San Francisco; Joseph C. Houston, Calvin Bullock,
Chicago; Mrs. Robert Clark; Mrs. Emil J. Pattberg; Mrs. James A. Lyles; Mrs. Dennis McCarthy;
George

T. Flynn,




Mrs.

Joseph Houston

&

Mrs.

Chemical

Alfred

Bank

&

Kidder, Peabody & Co., Philadelphia;
Company, New York; Walter V. Moffitt,

Rauch,

Trust

Mr. & Mrs. William S. Renchard,
Kidder, Peabody & Co., New York

City; Hugh D. Carter, Jr., Courts & Co., Atlanta; Mrs. D. A. Lowry; George J. Gillies, A. C. Allyn
<fi Co., New York City; Mr. & Mrs. Emil J. Pattberg, Jr., The First Boston Corporation, New York
City; David,A. Lowry, Carlisle & Jacquelin, New York City; Mrs. Hal H. Dewar, San Antonio, Texas;
Lee W. Carroll, Lee W. Carroll & Co., Newark

60

Mr.

(2420)

&

Vind,

Mrs.

The Commercial and Financial Chronicle

James

Blyth &
York;

A. Cranford, Atlantic
National Bank of Jacksonville, Jacksonville; George Le
Co., Inc., New York; Mr. & Mrs. J. Bradley Green, Guaranty Trust Company, New
Mr. & Mrs. T. George Van Hart, Salomon Bros, & Hutzler, New York

Frederic P.

Paul

M. Rex;
M.
Rex,

Burns,

Mullins, A. E. Masten & Co., Pittsburgh; Mrs. William
Nathan K. Parker, Kay, Richards & Co., Pittsburgh; William
Clark, Dodge & Co., New York City; E. Jansen Hunt,
White, Weld & Co., New York City

E.

Thursday, December 17, 1953

Joseph L. Ryons, Lester, Ryons & Co., Los Angeles; Hugh D. Carter, Jr., Courts & Co., Atlanta;
William M. Rex, Clark, Dodge & Co., New York; Walter A. Schmidt, Poole, Roberts & Parke,
Philadelphia; Robert Stevenson, 3rd Investment Bankers Association, Chicago

Youmans, Bosworth, Sullivan & Co., Denver; A. G. Pickard,
Pickard, Chicago; Mr. & Mrs. William M. Baer,
Hill & Company, Incorporated, New York City; Lawrence
B. Illoway, Aspden, Robinson & Co., Philadelphia

Corbett &

Malvern

...

Beverly W. Landstreet, III, Clark, Landstreet & Kirkpatrick, Inc.,
Nashville; Mr. & Mrs. John M. Heimerdinger, Walter, Woody &
Heimerdinger, Cincinnati; Jack M. Bass, Jr., Jack M. Bass & Co.,
.

Nashville

Mr.

& Mrs. Henry J. Blackford, Jr., A. M. Law &
Co., Spartanburg, S. C.; Robert A. Podesta,
& Co., Chicago; David J. Harris, Sills, Fairman &
Harris, Inc., Chicago; Mrs. Sidney J.
Mohr, Montgomery, Ala.; Arthur C. McCall, Alester G. Furman Co., Greenville, S. C.; Mr. & Mrs. John
P. Labouisse, Howard,
Weil, Labouisse, Friedrichs & Co., New Orleans;
John L. Blake, Eaton &
Howard, Incorporated, Boston

Cruttenden

Mr.

&

Mrs.

Julius

Reinholdt,

holdt & Gardner, St. Louis




Rein-

Blyth's
York

Black

Bean

Broth

Partv-

Robert

W

FUher

City; Mr. & Mrs
Charles
M
Abbe
Bnst'nn
and Sidnev G . Duffv
New York Citv
bn«t«
'
y
f y, Ne
York City, hosts

Mrs.
The

Howard Butcher,
Philadelphia; Mrs. Charles McK.
Wellington Company, Philadelphia; Mrs. William S.

Lynch, Pittsburgh; Walter
Renchard, New York City;
Collings, Jr., Philadelphia; Mrs. Sidney S. Blake, Philadelphia

**

o

**

™

^

^

r?1""
Mrs. Charles V. Thackara, Thackara, Grant & Co., New York City; Mr. &
Barclay, Jr., StemBros. & Boyce, Philadelphia; Robert W. Borden, R. H. Moult on & Co.,
1

Mrs,

Olivia

Behan,

Ft.

Lauderdale,

Fla.;

James

L. Morgan,
Mrs. C. C.

P.

Jamieson,

Glore,

Forgan

&

Mrs. Wm. K.
San Francisco;

Co.,

Chicago

'

\

Number 5282

Volume 178

.

.

.

The Commercial and

W. L.

Huntley; Sheldon Dubler; Roberto de J. Toro,
Development Bank, Puerto Rico; Guillermo
Rodriguez, Government Development Bank,
Government

Puerto

Mrs.

Mr.

&

Co.,

Mr. & Mrs. Frederick W. Straus, Straus, Blosser &
McDowell, Chicago; Mrs. Philip M. Stearns, Boston

New

Eugene

York City;

L. F. Rothschild &
Ensign Charles R. Treuhold

Treuhold,

A.

Co.,

W.

Mackall & Coe, Washington, D. C.; Mrs.
Savannah, Ga.; F. Scott Perry, Gordon Graves &
York; Mrs. William W. Mackall; Mrs. Scott Perry
Mackall,

Standing:
Charles F. Eaton, Jr., Eaton & Howard, Incorporated,
Boston;
John L. Blake, Eaton & Howard, Incorporated, Boston.
Seated: Stephen Whitcomb, Eaton & Howard, Incorporated, Boston;
Woodford
Matlock,
Broad Street Sales Corporation, New York;
Whitney

Bradley, Eaton

Beane,
&

Co.,
&

New

New

B. Joseph,

Inc.,

Stubbs, Smith

Birmingham;

& Lombardo,
(seated) Mrs.

Mrs.

Karl

D.

Pettit

Mrs. William

J.

W. Pevear, Irving

Earl Jardine,

York City; William D. Byrne, Byrne & Phelps,
& Co., New York City; Joseph P. Lombardo,
Birmingham, Ala.; Miles A. Watkins, Jr., Stubbs, Smith & Lombardo,
Marquette de Bary; Mrs. Joseph P. Lombardo; Mrs. Miles A. Watkins

Securities
Karl D. Pettit,
Walter V.
New York;
Arnold J. Stalker;

(Standing) Alfred J. Stalker, Kidder, Peabody & Co., New York; Robert H. Craft, American
Corporation, New York; Joseph W. Sener, John C. Legg & Company, Baltimore;
Knickerbocker Shares, Inc., New York; Alfred Rauch, Kidder, Peabody & Co., Philadelphia;
Moffitt, Kidder, Peabody & Co., New York; Amyas Ames, Kidder, Peabody & Co.,
(Seated) Mrs. Joseph W. Sener; Mrs. Robert H. Craft; Mrs. Alfred Rauch; Mrs.




&

Trust Company, New

York;
Mrs.

Trust Company, New York; Mr. &
William R. Stoats & Co., Los Angeles j

Robert E. Broome, Guaranty

& Howard, Incorporated, Boston

Marquette de Bary, F. S. Smithers & Co., New
New
York;
Paul O. Frederick, Baxter, Williams

Joseph, Mellen &
Cleveland;
Charles S.
Vrtis, Glore, Forgan & Co., Chicago
Miller,

&
Scott

S.

Herman

Smith, Merrill Lynch, Pierce,
York;
Orin T. Leach.
York City; Buford Scott,
Stringfellow, Richmond. Va.

Mrs. Norman P.

Fenner

Rico

Space,

New

Mr. &

Estabrook

Mr.
William
Julian

61

(2421)

Financial Chronicle

Arthur Wiesenberger,

Arthur Wiesen-

berger & Co., New York; William F.
Shelley, Vance, Sanders & Company,
Boston

Russell E. Siefert, Stern Bros. & Co., Kansas City, Mo.; Thomas M. Johnson, Johnson,
& Co., Savannah; Earl G. Fridley, Fridley & Hess, Houston, Tex.; Charles S. Werner,
Co., New York City; Wilbur E. Hess, Fridley & Hess, Houston; Julian A. Space,
Johnson, Lane, Space & Co., Savannah; (Seated) Mrs. Russell E. Siefert; Allen C. Du Bois,
& Co., New York; Mrs. James J. Lee, New York; Mrs. Thomas M. Johnson, Savannah;
Mrs. Julian A. Space, Savannah
(Standing)

Lane,

(

Space

Wertheim

&

Wertheim

62

The Commercial and Financial Chronicle

(2422)

Frederic

P.

Tex.;

Means, Courts & Co., Atlanta, Ga.; Arnold J. Kocurck, Rauscher, Pierce & Co., San Antonio,
Lewis F. Lyne, Mercantile National Bank, Dallas; Donald B. Brayshaw, Lord, Abbett & Co.,
Atlanta; Wdlard A. Lynch, W. C. l.angley & Co., New York
■,'''«■■

i✓

Thursday, December 17, 1953

St. Louis Room: Over-the-Counter Executives, Bert H. Horning, Stifel, Nicolaus & Company,
Incorporated; Harry Theis, Albert Theis & Sons; Kelton E. While, G. H. Walker & Co.

Mullins, A. E. Masten & Co., Pittsburgh; Mr. & Mrs. Jesse A. Sanders, Jr., Sanders &
Dallas; Mr. & Mrs. W. Carroll Mead, Mead, Miller & Co., Baltimore

Newsom,

James W.

...

Mrs.

H. Wilson
Arnold, New Orleans; Mrs. James C. Ward, Nashville; Mrs. Thomas Johnson,
Savannah; Arthur C. McCall, Alester G. Furman Co., Greenville, S. C.; Mrs. Sidney J.
Mohr,
Montgomery, Ala.; Julian A. Space, Johnson, Lane, Space & Co., Savannah; Mrs. Arnold Kocurek,
San Antonio; Mr. & Mrs. John P. Labouisse, Howard, Weil, Labouisse, Friedrichs & Co., New Orleans;
Mrs. Julian A. Space; H. Edward Vollmers, Morgan Stanley & Co., New York City

f

l

r:t;
—

'//'/A
^

/

.f

'

/A'/,

|
'

Jchn

F. Egan, First California Company, Incorpo¬
rated, San Francisco; George T. Flynn, Hornblower
& Weeks, New York; Mr. & Mrs. Charles L.Hewitt,
Francis I. du Pont & Co., New York

(Standing)
&

Burr,

Putnam

J

1

Mr.

&
Mrs.
Howard
Butcher
3rd, Butcher
&
Sherrerd, Philadelphia; Mrs. Eugene Lynn, New
York; Belmont Towbin, C. E. Unterberg, Towbin
Co., New York City

Walter V. Kennedy, Coffin & Burr, Incorporated, New York; Edward S.
Amazeen, Coffin
Incorporated, Boston; Charles S. Werner, Wertheim & Co., New York; Charles Werly,
Distributors, Boston; (Seated) Mrs. Edward A. Amazeen; Mrs. Philip M. Stearns,
Boston; Mrs. Walter W. Craigie, Richmond; Mrs. Charles M. Werly
*
"

Fund




Mr. & Mrs. John J. Clapp, Jr., R. W. Pressprich &
Co., New York; Mrs. Gethryn C. Stevenson, New
York; Charles L. Bergmann, R. W. Pressprich & Co.,
New York

Mrs. Robert L. Hatcher; J. Hayden Hull, Bank of
America, N. T. & S. A., San Francisco; Malcolm S.
Prosser, Seattle-First National Bank, Seattle; Robert
L. Hatcher, Chase National Bank of the
City of New York, N. Y. C.

Mrs. Walter H. Steel;
Arthur R. Robinson, Anderson & Strudwick, Richmond; Walter H. Steel,
& Co., New„-York; Hempstead Washburne, Dean Witter & Co., Chicago: (Players) Wickliffe
Shreve, Hayden, Stone & Co., New York City; Edward Hopkinson, Jr., Drexel & Co., Philadelphia

Drexel

Maurice
New

Hart, New
York Hanseatic Corporation,
York;
George P. Kenny,
Willis, Kenny &
Richmond; George Armstrong, New York

Ayres,

Hanseatic

Corporation, New York; Kurt H. Grunebaum, New York Hanseatic Corporation, New York

William

F.

Howell, Hallgarten

& Co., New York;

Edgar J. Loftus, R. S. Dickson & Co., Inc., New
York; Logan V. Pratt, R. S. Dickson & Co., Inc.,
Charlotte; Clifford C. Collings, Jr., C. C. Collings
& Co., Philadelphia; Mrs. Edgar J. Loftus;
Mrs. Clifford C. Collings, Jr.

Mr.

&

Mrs.

Charles

M.

Abbe, Blyth

&

Co., Inc.,

Boston; George LeVind, Blyth & Co., Inc., New York; Robert W. Fisher, Blyth & Co., Inc., New York;
Thorburn Rand, Rand & Co., New York; Mr. & Mrs. Frederick W. Straus, Straus, Blosser & McDowell,
Chicago; Richard G. Walbert, Blyth & Co., Inc., Chicago

Hayden,

Stone

&

Co.,

New

Earl

Gatchcl!,

Mrs.

Harley L. Rankm, Philadelphia; Daniel
Northern Trust Company, New York

York;
O'Day,

Mr.

& Mrs. W. M. Baer, Malvern Hill & Company,
Incorporated, New York City; Mr. & Mrs. Frank
C. Carr, John Nuveen & Co., Chicago

(Seated) Mrs. James P. Stearns, Ball, Burge & Kraus, Cleveland; George B. Gibbons, Jr., George B.
Gibbons & Co., New York; Mr. & Mrs. Arthur F. Humphrey, Jr., Hulme, Applegate & Humphrey,
Pittsburgh; Milton G. Hulme, Glover & MacGregor, Pittsburgh; Mrs. Frederic T. Seving, Philadelphia;
Mrs. Robert W.
Ewing, Wheeling, W. Va.; Mrs. Milton G. Hulme; Mrs. Charles McK. Lynch,

Pittsburgh; Mrs. Fred W. Hudson, Cleveland; (Standing) 'W. W. Keen Butcher, Butcher & Sherrerd,
Philadelphia; Howard Butcher, 3rd, Butcher & Sherrerd, Philadelphia; F. Brian Reuter, Mellon
National

Bank,

Pittsburgh; Robert W. Ewing, A. E. Masten & Co., Wheeling, W. Va.




Henry Grady Wells, Jr., Andrews & Wells. New
York; Jack R. Staples, Fu.ton, Reid & Co., C'cvcland; Charles Horton, Werlheim & Co., New York

William H. Morton, W. H. Morton & Co., Incorporated, New York; Frank D. Farrell, City National
Bank & Trust Co., Kansas City; Mrs. Wf.liam H.
Msrton; Harden H. Hawes, Harris Trust &
Savings

S. R.

New

Bank,

Harold X. Schreder, Distributors
Incorporated, New York

City;

Chicago

Group,

Winslow, Winslow, Douglas & McEvoy, New York; Mr. & Mrs. Karl P. Herzer, R. L. Day & Co.,
York; C. Meredith Boyce, Mercantile Safe Deposit & Trust Co., Baltimore; Lawrence W. Morgan,
Parker

Corporation,

Chicago;

William
Mrs.

C.

H. Gregory
Meredith

Russell E. Siefert, Kansas City; Mrs. George
Kneass,
Philadelphia;
Mrs.
Robert
W.
Ewing,
Wheeling, W. Va.; Mrs. Carlton P. Wilson, Milw.
Mrs.

(Front)
DeHaven

Bonner

&

Gregory, New

York;

Robert

E. Broome, New York City; Mrs. Al¬
Philadelphia; Mr. & Mrs. G. C. Steven¬
Bacon, Stevenson & Co., New York

fred Rauch,

Philip M. Stearns, Boston; Mrs. Robert
Townsend, Crouter & Bodine, New York;

Mrs.
&

Mrs.

III,

Boyce

son,

H. Warren, New York; Walter T. DeHaven,
Mrs. P. M. Conway, Louisville; William H.

Hobson, Jr., DeHaven & Townsend, Crouter & Bodine, Philadelphia; Walter V. Kennedy, Coffin & Burr,
Incorporated, New York; (Rear) Robert H. Warren, Geyer & Co. Incorporated, New York; Kurt J.
Huttlinger, F. P. Ristine & Co., Philadelphia; George Degener, Rand & Co., New York; Lawrence C.
Uloway, Aspden, Robinson <fi Co., Philadelphia; Arthur N. McGeogh, Jr., The Milwaukee Company,
Milwaukee; Powhatan M. Conway, The Bankers Bond Co., Louisville

\

64

The Commercial and Financial

(2424)

Philip M. Stearns, Estabrooh & Co., Boston; Orin
T. Leach, Estabrooh & Co., New York; Robert H.
Warren, Geyer &
Co. Incorporated, New
York;
Frederick W. Straus, Straus, Blosser & McDowell,
Chicago

Charles
N.
Fisher,
Singer,
Deane
&
Scribner,
Pittsburgh;
Malcolm
E. Lambing,
Peoples, First
National Bank, Pittsburgh; Walter H. Weed, Jr.,
Union Securities Co., New York; Henry S. Lynn,
Sterne, Agee & Leach, Birmingham

William M. Rex, Clark, Dodge & Co., New York;
Carlton P. Wilson, Robert W. Baird & Co., Incor¬
porated, Milwaukee; Wm. Russell Barrow, Barrow,
Leary & Co., Shreveport; Paul L. Mullaney, Mullaney, Wells & Company, Chicago

ty'/ty'////'/>/•/

I,

■

'■''/%/'

Chronicle

C.

V.

...

Thackara,

Thursday, December 17, 1953

Jr.,

Thackara, Grant

& Co.,

New

York; Denton D. Hall, R. L. Day & Co., New York;
Karl Panke, Blair, Rollins & Co., Inc., New York;
David H. Callaway, Jr., First of Michigan
Corporation, New York

'/////,• s

;v:
\

Mrs.

Mr.

Douglas R.
&

Mrs.

J.

Hansel, New York; Mr. & Mrs. Arnold B. Massey, Mills, Spence & Co., Toronto;
Savard, Savard, Hodgson & Co., Inc., Montreal; Ralph D. Baker, James
Sons, Winnipeg; Mrs. Irving H. Campbell, Bell, Gouinlock & Co., Toronto;
George Degener, Rand & Co., New York

Ernest

Richardson &

^

^ i mm

(Seated)
New

George A. Newton; Mrs. Chester H. Lasell, New York; Mrs.
Mrs. James L. Harrison, New York; Mrs. H. Edward Vollmers;

Mrs.

York;

Newton,

G.

H.

R. W. Pressprich, Jr.,
(Standing) George A.
& Co., New York;

Co., St. Louis; H. Edward Vollmers, Morgan Stanley
G. G. Halliburton, Equitable Securities Corporation, Nashville

Walker

&

n

G. H. Walker, Jr., G. H. Walker & Co., New York;
Mrs. George D. Aldrich, Boston; William A.
Parker, Parker Corporation, Boston; J. Denny May, Parker Corporation, Boston; Mrs. Laurence W.
Morgan;
Mrs. Joseph R. Neuhaus, Houston, Tex.;
Amory Parker, Parher Corporation, Boston;
Laurence W. Morgan, Parker Corporation, Chicago; Mr. & Mrs. John W. Ahearn,
Rockland-Atlas National Bank, Boston

James J. Lee,
W. E. Hutton & Co., New York;
A. W. Iglehart, W. E. Hutton & Co., New
York; Milton S. Trost, Stein Bros. & Boyce, Louisville; V. Theodore Low, Bear, Stearns & Co.,

C. J. Devine & Co., New York

New York

Paul

Victor

Bank, Los Angeles;




Tripp & Co., Inc., New York;

Trust Co., New York; George J. Schaust, First
National
Bank,
Minneapolis;
Stewart
A.
Dunn,

Leon

Lees, Jr., Ira Haupt & Co., New York; R.
Mosley, Stroud & Company, Incorporated,
Philadelphia;
Harry B. Snyder, Yarnall & Co.,
Philadelphia; Frank L. Newburger, Jr., Newburger
& Co., Philadelphia
>

(Standing) Charles S. Barrington, Harry Downs & Co., New York; Harry W. Faath, Tripp & Co., Inc.,
York; Wm. G. Hobbs, Jr., Russ & Co., San Antonio; Russell Siefert, Stern Bros. & Co., Kansas
City, Mo.; Edward D. Muir, Russ & Co., San Antonio; C. M. Haight, Jr., Tripp & Co., Inc., New York;
(Seated) John E. Hopkins, J. P. Morgan & Co., Incorporated, New York; Jerome C. L. Tripp,
New

W.

Waterman, Jr., Security-First National
George R. Waldmann, Mercan-

tile

Joseph

Mrs. Edward D. Muir

Herman B. Joseph, Joseph, Mellen & Miller, Inc.,
Cleveland; Elvin K. Popper, I. M. Simon & Co.,
St. Louis; J. W. Wolff, Zuckerman, Smith & Co.,
New

York

Volume 178

Number 5282

Continued J
from
mm

~

r''

1

Financial Chronicle

'

'

r

;

■<

,

'

h

contribution

ASIlAV(*hlVI

interested enough in the is-

and

has

to

*

r.

(2425)

that manufacture

well-being.

happened

handle—

does, is a lot harder to

purpose

—

business

Ma An All

facture

votes

-

affairs

the

most

challenge that has faced

serious
our

na-

party

spite of this
b^es.f tion in its 175 years of existence.
of those nearly 75 million who makes a profit—out of which it There will
shortly be published,
did register, only a total of 61 milpays taxes to support government for the first time, a list of the
lion took the trouble to vote.
business
ventures,
such as the business enterprises in which our
;
We can make the most tragic Post Office. Federal Government is engaged.
mistake, in my opinion, if we asBehind these statements stand
That list will reveal hundreds
sume, falsely, that the 34r million the clear principles for which the of services and thousands of acsues

Americans

who

Eisenhower
votes

as

to

even

elected

President

Dwight

cast

their

protest against the

a

DeafAdminktration
in power.
s

register. And

that

po-

then

was

and

win

General Eisenhower

elected

was

President of the United States by

majority of only 6^ million
votes; scarcely half the number of

for

every

his

American

independence, his freedom to hold

privilege

welfare
}

d

.

and

direct

a

of

dollars

—

for

voted

because

all

the

way

for

attempt
unit™

„

hue and

f

wftat

whpn

which will be heard

cry
npw

a

iPaHpr«?hin

practical politics" ™nen a new leaaersnip attempw'° cur" these cozy government

0f

America,
vprTimpnt

g

permit
tn

Wv

,

businesses.

national

a

tavps

y

.

.

JP

.

nesses.'

Are

we

parasites

going to
to

cimnlp

.

.

linuidatinn

to

compete with the very private in-

people of America

dividuals

Treasury of these United States
some 30 billions of dollars not
Continued on page 6&

from

nesses

the

are

the

and

whom

private

busi-

those

taxes

collected?

and

You

I, and

..

v..'.*.

V

'

.

'•

."'V'

!'■>"'"-'J ^
rSome Blue Ribbon Winners

*

V

•

0f ffo Past!'7- .'..i'■

r

•-•••

.

^B
m

t

.

'

-

:

,

,

i

ing

the

of

America.

FASTER

like

to

a

most

to

the

of

old

tion of
our

more

to

feet,

own

free

as

to

it

part

return

principles which made
once

to

more

walk

in

men

recogni¬

a

need to stand

a

26.25

the

Knots

Ambrose

Average

to

Voyage...

—

Cherbourg.

free

a

the

on

citizens

our

country great,

our

of

interpret

burning desire

as

of

MAURETANIA —Fastest

that

reawaken¬

a

spirit

real

We

into

FASTER

once

clear,

bracing air of freedom and enter¬

iiWSfSv?

prise.

l"^v*>X'W

But, and I repeat, 20 years is a
long time. We know, only to a
limited degree, the damage that has

And Still the

been done in those two decades of

Red Horse

decadence in

national political

our

philosophy of government.

Flying

BREMEN-7-Fastest
27.83

Knots

Cherbourg

Voyage.

Averageto

Ambrose.

Keeps Pace!

*

We do not even begin to know
today the extent of that malignant

how

growth;

that

far

cancerous

disease has eaten into the vitals of

national

cur

7 I

today

most

here

everyone

recall

can

SOCONY-VACUUM

strength.

believe

the

days

men¬

tioned

by the late Dr. Nicholas
Murray Butler who, when he was
President of Columbia

NORMANDIE —Fastest

created

31.2

University,
widespread interest all
Europe when he delivered a

over

series

of

popular lectures

structure

American

of

Knots

Ambrose to

the

on

Average

Voyage

—

Bishop Rock.

WSMfM

Govern¬

ment and its

relationship to indus¬
try and business.
To

the

underscore

role

played

by the

ernment in the

insignificant
Federal

gov¬

ordinary daily af¬

fairs of the American businessman
contrasted

as

—

to

fingers and prying
ment abroad—Dr.

that

the

live

an

meet

average

only

one

ly the mail
days

—

Government

and

with

here

can

before

men

QUEEN

and

of

Ambrose

to

Cherbourg.

name¬

Federal

to

be

all

and saddled the

with

for that experiment.

Recently, I read an "ad" in one
our
business magazines which
that

{<<<<•

has

days

% UNITED STATES —Fastest Voyage.,

of

a

which Dr. Butler spoke. This "ad"
stated

the

government will

letter from

for

Voyage

remember

our

highlighted the change
taken
place
since the

a

MARY-Fastest

31.72 Knots Average-

back-breaking debt,
industry and the individual
a
crushing burden of taxes,

to pay

of

life

representative

attempted

things to all
nation

Butler declared

American could

Government,
carrier.

Some of you
those

probing
of govern¬

industrial

entire

the American

the

eyes

three

35.59

Knots Average

—Ambrose to

1 Bishop Rock.

carry

Texas to New York

cents.

But

the

govern¬

ment loses money on the

trip and

we

have to pay taxes to make up

the difference.

Business

carries

gasoline

the

on£-fifth

of

not

be

the

same

three

same

a

gallon

journey'
cents.

It

of

for

SOCONY-VACUUM OIL COMPANY, INC.
and Affiliates:

may

door-to-door de¬

livery, but the gallon of gasoline
weighs 104 times what the letter




MAGNOLIA

PETROLEUM

COMPANY

•

GENERAL

PETROLEUM

^
<

■'

r

'

A■

thinking

every

like to read

change of leadership

and to the?

—

»

American,

Thm
nara-

.

graft and corruption

philosophy promoted
original political spon-

their

Save?
these

of

.

.

Sltlc business enterprises I haw
mentioned would return to thar

permit

continue

Economize?

Trim?

nri

nn

^

r

and.

,An,r0

had

sors.

sound

the country
was
made

our bloated national budget. How-

:
•

a,change of:leadership
could 'no
longer

everybody"

on

,

the

across

ever, that was but a whisper to the

They

*

g

recall

tri™ a few biHion ^ollars from.

political

,
.

+rirY1

an

—

/■; '

who

grown
up
in the old
order, but who may still be sympathetic with the "everything for

by

.

®

when

C5

protects them, and we, the people

typical pri-

"A"

from

they

stomach the
that

millions

.

y

1S now termed

the

It is important to appreciate in

many

the

will

—

—

that slim majority of only 6 V2 million popular votes, that there may

have """ been

for

installed them

,

his vate business enterprises, ranging

are

who,'having registered, did not bother to vote.

i

of

of

These

of those

votes

You

fury that raged

manu-

these

millions

well-being

his

and that is to

with

the and mine.

to

limbs,

va*e individuals and private busi-

in

pr0portion

artificial

tivities, which were financed—
and are still being maintained—

sharing

of

that

.

'that which he rightfully earned, taxpayers'money—of your money
his

'

in

American revolution was fought—
to

of

through multiples of every letter
in the alphabet to "Z" for zinc.
They have only one productive

to that
concept makes the Federal Government's invasion of private and

-

at stake

individual
What

v

«

kb

i

Lcaueisnip WvvUvU
were

*

welfare

■

.

¥

24

vaoe

r

The Commercial and

...

CORPORATION

'

'•■■■

66

(2426)

The Commercial and Financial Chronicle

Continued

jrom

pessimist. I am, and always have

65

page

been, a realist. I try to look at
the facts. In my
opinion, we have
to
fly out of those clouds, as

Leadership Needed

pleasant

millions, gentlemen

Americans

great

thirty bil¬

—

dedicated

lions of dollars.

himself

What

New

National
Has

Our

national

new

Leadership

—and

Done

I

of

both

what

to

has

parties,

Mr.

described

job
his exact words—

quote

leadership has described

his

as

'staggering

eco¬

taken

some
significant steps to¬ nomic
burden,'
to
restore
and
free
returning the government strengthen
enterprise,
re¬
the industry and commerce of duce the burdens of taxation, les¬

and

United

Our

States

President,

attracted

other

qualified

minded

all,

of

has

and

of

some

and

and

men

people.

cabinet

positions,

key

best

the

first

his

to

to

most

to

life today. They are, without

ex¬

ception, willing to sacrifice what¬
ever political ambitions
they may
have

ever

had in order to take the

corrective

steps

out

carry

the

to

necessary

mandates

that

of

leadership. Their assignments

are

difficult indeed.
The
for

No

one,

government."

our

for

When Herbert
dent

of

short

these

Hoover
United

decades

national
sisted

a

he

ago,

400

two

headed
that

Federal

a

con¬

agencies

employed
about
600,000
The annual budget was

people.

in

Today, 20
Wars

ahead

to

later, the

Federal

Govern¬

ment is

departments, and his

are,

in light of recent his¬

tory, certainly revolutionary.

billion, and the national
The

Smudge Pots of Calumny

applied

ence

upon

competition in

a

instead

omy,

of

competition

a

extravagance, is certain
about the heads of the

ship

smudge

of

see

of

the

entrenched

bureaucrats, it will take
perception to

leader¬

from

the

in

through this fog

disperse it.

Perhaps the
all

the

most

President's

which brings the
the

important of
acts,

cause

by

country

levels

of

our

the

and

one

closest to

the

unrealistic

activity,

are

of

personal

foundation

Years

ago

does

not

depression

the

in

ecutive Branch.

able,

no

more

Certainly
patriotic,

no more
no

more

public spirited American could be
chosen for this tremendous task.

Serving with him is

a

group of

aviation

flying

over

mountains, that innocent looking
as

big

can

as

nearly 20

have

rocks

mountain

in

them—

peaks.

For

the economics of

years,

our

with

up

Now
as

a

can

we

am

mean

coming.

with

sure,

nation, that economic
have rocks

in

clouds

economic machine

Contrary to the
ion

of

many

can

crash.

expressed

people,

I

opin¬

am

no

I

economy on
must

tor re-adjust
footing,
thinking.

The

main

rest

of

our

This

which

all

of

use

the

I

you,

term

"re¬

readjustment

lead¬

The

our

simply and actually

natural

and

an

inevitable

fortunate

move

the last 15

in

but

of

economy is that
which we have all
sound

Now

those

oracles

same

preached inflation

are

the

are

raised

deflation

and

national

political

complish

nation's

There

to

a

trim

is

a

strong

skies

of

nomic

lives

to

for

run

a

new

and

ac¬

crawl

them

over¬

to

then
can

economy,

rebuild

a

what

appears

pull the hole in

after

the
I

storm

in

freely

this country.
This

not

can

pillars

happen

until

which

upon

sible

labor

—

and

sound

business

out

of

scale

with

our

entire

economic

the

cause

structure

to

unbalanced.
For

nearly

stance,

at

the

other three. As

ponents
overrun

of

a

for

in¬

extended

its

years,

has

expense

of

result, the

This

tion

of

that

sound

depend

Big Government have

their proper sphere. Man¬

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away from its

and

To

inevitable

march

guarantees,
must

merce

far
a

better

a

of

economic

in

a

to

sought to

once

foundation

is

that

absorbs

produce

of

our

products

of

our

is

the

160

In

the

our

we

million

bulk

mar¬

could

us,

hope

headlong march to de¬

That
moral
~us

change
well

as

an

opportunity

lives

our

in

gives

us

and

the

Federal

gives

reorganize

thinking.

chance

fathers,

the

to

our

another

establish

leadership,

material,

as

principles
and

to

of

to

as

an

Government

to

American

people.

welfare

But

it

of

all

behooves

member that this

ership gives
spell

in

the

us

to

or

a

to

a

breathing

re-orient

distributor of secondary

market offerings

ESTABLISHED

1914

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MEMBERS

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New

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us

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all

polit¬

interested in:

underwriter

THE PHILADELPHIA
NATIONAL BANK

an'

agency devoted to, and capable of,
and

this

are

I

our

restore

Pennsylvania School Authority Bonds
either

It
re¬

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We

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life¬

a

struction.

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years

our

protecting the economic

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moment that

nation of

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people. This is the principal
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defending those principles

founding

today

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by false prophets,

against the

progress

com¬

the

act of

far down the

public had been forged in

be¬

restored.

are

so

road—we had

fundamental principles of

chal¬

and

continue

a

of

an

great leader, whose faith in the

ingenuity and the

industry

Consider for

more

deeply into the economic wilder¬

than

beyond its present limits,

sound

was

Providence than of politics.

future, to meet the

which American

President

as

United States

insure

cause, to meet the economic
our

the election of
Dwight D.

me

Eisenhower

this readjust¬

and

be¬

our

was

still

stronger

re¬

and

political life.

time of

lenge of

to

truth

which

upon

the

founded, and
our
willingness to demon¬
them, in our personal and

upon

ness

through

we

come,

younger genera¬

stronger

say

eternal

country

strate

ever.

I

and
to

ability

our

the

principles
loved

people,

generations

upon

establish

business organizations

better

free

a

of

We had drifted

can

life

in the

as

freedom

con¬

can

the

as

time, for America, and for
American, is now. Our sur¬

wrong

a

in

well

as

vival

in

of peace, of
wars,

management,

come

ment

to

on

time

a

That

eco¬

the

spans

comes

every

management

experience, which

be passed

the
pro¬

which

the

the

individual, when

their aftermath.

and

will

20

labor

have

flicting elements

pillars

expand

through

cycles

dollar—respon¬ experience

management—are properly aligned.
To permit any one of these
to

back

go

nomic

how

stop to take inventory, when
we
must get back to basic
prin¬
ciples.

—

gov¬

is

re-adjust our¬
quickly can we get

must

If management
goes into that

roots

Enterprise must stand—good
ernment—a stable

the

then,

we

of every
nation,
life of every

These may find the
going rough
many of them may fail. But
most business and
industry whose

Free

can

Principles

bet¬

ter.

to function

more

problem,
How

There

hole, that's just where they will
stay—in the hole.

once

optimistic

Time to Get Back to Basic

to

make it possible for
private enter¬

be

have lost, but to
speed
promise of that future.

at

prise

to

we

them,

know

with

purchase

national economy back on the
right road? Because this we must
do, not only to recover the time

or

bomb-proof hole—

—they will weather
fine shape. You and

must

we

into

be

force

our

first sign of economic clouds.
They somehow think that, if
they hold tight to what they have

for

working

to

fail

can

quickly

eco¬

shelter

million

country's past history, with
appreciation of the potential
truly free and independent

a

tendency

prosperity all their

earnings,

selves?

have

sails

shall

we

175

feed, bodies to clothe,
satisfy. It also

probable

a

Our

way

who

their

years

but

for the future.

known

their

times,

to

to

people,

ex¬

the

loudest

about-face
we

of

among members of management
who have lived under the
sunny

who

leadership

night. But before
our

felt.

tighten their belts.

those whose

demand that

this

sweated

hard

had

never

dollar.

shortcut

a

our

any

responsible positions who

never

through

hearing

years

in

men

have

our

forgotten—the

have

160

the
products of that production.
No one with
any knov/ledge of

nothing but blossoming prosperity,

a normal
economy.
The prime mover in the recon¬

element

who

country will

of 72 million to
produce and,

20 years, members of

or

management

not

their

ecutives that has grown
up during

the direction of

vital

be

is whole generation of business

economy

broad economic
readjustment that
has long been overdue. It will be
a

first

We must remember that
there is

of

course

shall

few

1960,

needs and desires to

It is in business and
industry
that the effects of this
inevitable

ob¬

eight

mouths

see

even

or

means

ership of which our free enter¬
economic prise system is so
eminently cap¬

of

our

a

by

even

that within the next

means

have,

must

progressive

the

perhaps,

Project

ahead

175 million.

seven

eco¬

however,

before.

ever

of increase

and

reach

our

burden

recovery,

upon

than

the population of

sound

a

readjust

powerful drive of free enterprise

Dealers

faster

this rate

op¬

finance, labor and
management must bring into play
the sound lessons of
experience.

see

can

pri¬

by

Government,

cession."

them, too—the monopoly

hard rocks of
reality upon which
our

that

I

familiar. I

are

ject to the

be

have suddenly
realized,

and

years
we are

our

mother

cruising other three, must
inevitably

rose-colored glasses.

public

weakened

possibility of such an
collapse for good and substantial able.

four

in

we

learned,

to

no

of

country today.

business

Commission

for the Reorganization of the
Ex¬

spend¬

seriously threaten¬

economic

country has been
people, is the appointment of
through clouds conjured

direct the Federal

the

wages, and the over¬

rate

ing which
ing

to

in

has raised

years

industrial

extended

philosophy

government

our

with

and

we

going to

are

down

voices

economic

intervening

clouds

former President Herbert Hoover
to

our

keen

no

but it will require a powerful fan
of truth to

those

false

bring high levels of

cloud

Generated

pots

to

new

enveloping

an

calumny.

econ¬

is

$265 billion.

over

New Leadership Must Fight

But it is certain that his insist¬

debt

debt

nomic

This
a

$70

ciples

with

us.

we

bulging with 1,500 various We
lived through
agencies. It employs more than
insistence upon devotion to duty
tha^-4nflation was
two million people and the Fed¬
prosperity^
and loyalty to constitutional
prin¬ eral budget is in excess of
government

travel

can

of

come

struction

and two World

years

we

other words

have

vate

Therefore, if

earth.

Presi¬

was

States,

government

of

which

demands

efficiency

In

reasons

certainly, could have

clearer concept of what that tre¬
mendous assignment involves.

about $4 billion.

President's &bwn

economy,

efficiency of

lies

overloaded

level

prosperity

that

sen

the

broad

in public

women

bureaucratic tyranny over our
citizens and generally improve the

which

sounder

a

economic safety if we are to reach
the infinitely
greater

"to lessen what the President has

ward

the

along

Hoover

his

as

to

17, 1953

responsibility, and the finan¬ figure has increased
by 20 million.
sub-structure
has
become Today
our
country
is
growing

cial

they seem, and make pressive taxes.

as

descent

our

true

Thursday, December

...

York

Telephone

COrtlandt

7-1202

our

Volume 178

.

.

The Commercial and Financial Chronicle

.

Task of Change Not Easy

of living. It also presents our

way

greatest
I

Number 5282

danger.
that because if

say

reclaim

now

do

we

do

we

not

now

reorganize

nal

truths
do

we

not

ship,

we

that

principles

in

assert

now

may

can

again

never

we,

upon

leader¬

our

have

can

,nity;

to

bring

forth

again
nation's leadership; to regain
economic
the

the

First,

•

-work.

To

those

'let

of

that

to

have

to

generation
that has

place

of

to

work,

fight

or

the

greatest

have

exercise

to

One

we

True,

have, potentially,

we

far the

by

is

is

history.
We have some 63
millions of people on the payrolls.

:Yet,

measured

by

the

moral

We
;
k

the

therefore

are

vital

very

whether

gant

the

welfare

to

tion's

to

vote

the

government

tory and,

give

his¬

in

to

to

the

the

we

To

provide

has

reorganize

into

peoples of the

our

of

servant

a

burden."

the

a

do

about teaching
whole generation how to work?
vou

well

as

go

that

of

support of

our rep¬

resentatives

in

How do you re-establish the prin¬

must have

ciple that the effort put forth must
be honestly equal to the pay re¬

Congress sufficiently

strong

one

level

deal

legislation

How

do

honest
moral

the

re-establish

you

the

carry

our

and

well-being

sweat

own

and

devoted

Let

to

and

this

on

the

all

principle that we have
right only to that part of

wealth

which

and

to

the

sound

American
each

authority

fight

one

to

behalf

of

on

of

therefore,

us,
us

substitution

persuade

seeking to obtain

a

cause

that strikes

ence

and

affects

Only

the

the

every

collective

cratic nation. But there

pect,

governmental

must

we

work

harder than

This

Not only must we work, but we
also teach. We must teach

is

must

this generation for the benefit of

to

future

our

generations, the importance
morality in public life.

We must re-establish

as

a

which

forgotten,

our

t

?

n

will

new

our

survival

of

fhi

SUpp0rt 0f the

,

•

commit-

.
*

£

of the Hoover

aims

oy
—

oTby
Dy

legislation

or

would be another

as

,

be that you, as close as
you are to the source of the submay

the

of

American

people,
nf

It is you, who perform the vital

of private
You,

enterprise.

and

the

vital

us.

giVCI1

every

American should

j^ve
T

,

,,

have

but

establishment

all

upon

the

but

any

welfare

of

more

our

power

of evil could prevail against

us

EverY ni^ht

before we S° t0
us pray for the
strength
guidance and for the power t0
inspire in others the gratitude we

and

and

owe

the

responsibilities

leaders

our

on

partisanship.

factories,

our

is

program

of

moral

order,

new

of

cause

but

and

the

of

some

eco-

age-old

independence,

upon

some

*or

safety

rather

is

up

the

life

Christian
our

in

than

terms

generalities, when
your

the

generations to
If

living

each

of

daily life,
of

our

a

by

this

this

It

is

as

clear

erations to

independence

dependent.

a

call

to

a

call

to

duty

military service.

preciation

of

the

was

won

a

you con-

blessings

which

are

us

as

to restore

well

country,

principles

beloved America

upon

was

as

into

those
which

we

be able to

of

life

we

say,

burns

have contributed

Established 1888

Our

Utility,

Equipment Trust Certificates

1910

Members
AND

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the land which has contributed

founded, much to us."

Underwriters, Distributors, Dealers in
CORPORATE

they

when the candle

because

Sherrerd

&

greater ap-

low—"Thank

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ESTABLISHED

we

of should have for the benefits* and

Underwriters and Distributors of Public

Butcher

standard

gratitude

Drexel & Co.

as

of

inspire in the

generation

younger

is

far

cause

security

and

come,

ahead. Because America—then and then only shall

course

to

of their

thpir

contribution—and

terms of your individual responsi-

sider

appreciation

fnr

henta2e> for their own good and

free nation can make some small individual

a

Think of these things. Think in

vague

better

upruacfp

beyond political platitudes.

re-

'

every-

Our

by ^political

won,

This

is

are so

This

we

ours,

conscientious effort to set

than that independence

generation and well being of gen¬
come

leaders.

..

.,

ke strong again, so strong that no

operate

responsibility.

originally

was

been

whose

personal

,

*^5" oTyToCthe^basic
rules
beloved America would

a
job to leave "for
fellow," or to turn over

political

our

fam;iv

niir

0lxYS(~lYes> wltb our family, with
°Ur !nendS' and Tth °UT
ment—as

serious

n0mic re-armament. It is you who
must be the missionaries, not of a

demo-

other

given

'

n„rspiVp

example to inspire in our
youngsters, in your children and
where, must be the leaders in this mine
the'leaders of tomorrow
farms and in

our

are

has

function, through the investment have to this great land of
of private funds for the expansion
E
,
, f
,

into

too, in which we can effec-

My

simple.

bed—let

tbe alms of the Hoover Commis-

This is

a

ones, but Ifollow you to
urge it.
plan and

are

Second, try to live honestly with

which the American people

^demogtate government **
e"®ctlve' ®
g
It

God

•

nnw

5.

Commission—and later to demand

it

have lost.

.

a

rules

own

..

require

citizens'

of

_vpr

,

bility

re-

good

a

devise other rules

may

independence cannot be restored,

living

guide the true principles of free¬
dom, of faith, and frugality; virtures

can

to

can

as

•

You

not

the other

of

they vote for,
machinery

we

I have urged you to vote.

vital

me.

properly.

before.

ever

action

right-thinking Americans
store the liberties

and

American.

ways,

economy

organization

independ-

welfare

candidate

our

ahead, if

the

depends.

a

live

to

First, every day, in some tangiaggressive support and ble way, try to express gratitude

more

politics. It is

foundation, to maintain a
of
living
which
the

sound

standard

restore

lie

Commission

its survival as

American people have come to ex¬

that

years

to

are

our

ahead,

isTnot ^^subj^ct^for^^partisan
to the very heart of our

trying

are two simple
ruies which I have set up to guide

which the welfare of America and

the American people, regardless of
what party they claim or what

we
a

the

fair share

benefits, subsidies,

to

In

officials

and permits.

member of our family, all
friends, fellow-workers, and
neighbors to do likewise. Because
only by the demonstrative will of
every

entitles us?

of

must

and

innumerable

well-being of

people.

determine to vote. Let

labor

individuals

another,

or

with

in

Do something about
leaders should!

as

on a much wider basis. Perhaps the for the blessings of freedom which

all

He

government.

American principles to secure the

ceived?

a

a

of

freedom, all of our citizens are
today beholden to and dependent
upon the favor of government, at

in

must have the

30% of

corporations.

of government

country to a sound
footing, our President

private

every

citizens including

economic

How

Hoover

task

procedures

government power for individual

•

people and

the

In

waY m

every year, more than
total national income

Because

s

government

our

upon

sl°n.

as

the

h i

4-oi.av*
taken

be

ing

na¬

called

action

could.?u pd£t^.]fn dc?mnnrf

our

own

with

that

Appreciate that Big Governtoday—civic, state, and national—is collecting and dispers-

to restore the

world.

our

ment

this

our

leaders

"staggering economic

same time, con¬
financial support

of

rest

can

political

in

j
mand

stance

the

demonstrating
interest

affiliations, banded together to de-

correction

of

them,

These citizens> regardless of party American, there

corraS

regulator

monumental conclusions.

the

business?

re¬

franchise.

our

President

our

at the

tinue

set-up

tremendous

a

support they need to lessen what

extrava¬

most

by

fundamental

with
as

with

prise when Big Government has
become our biggest industry and

freedom

it

exercises

us

Only

not 30 million workers

or

maintain

can

faced

question

of

Enterprise

that
di

of
1

privileges

Let " us
no
longer
neglect it. Let us no longer abuse
it. Let us see, first of all, that each

a generation
ago,
scarcely half of these are actually
earning their pay.

prosperity
piu&p 1
y

What has become of Free Enter-

sponsibility.

standards of but

'

our
oui

is

to

us

greatest

the

with

carries

;our

k

nr^nt
urgent

Industry

fit. Today, this privilege

see

as we

greatest working force in

Free

findings,

work of the original Hoover Com-

even

Big Government Our Biggest

rignt to vote.

the

have

we

of

era

'

.

how
how

and
dnu

progress
piugie&s

fight the evils

oppressed

our

of

weapon

their

110ns.

present call to duty, contrast the

political

any

rpaii7p
realize

Tn
To

Try, in every hour of every day
night, to remember what thesfe
principles meant to you, to re-

and

gj* Commission's recommenda- formulate
and better

of Free

present day.

which

job.

a

the flag of

the system

Enterprise, according to the hon¬

to demonstrate

our

a govern

est effort of each individual.

opin¬
important

more

us

have with which to

and

men

our

Americans, than it is

are

wave

And

had to look

never

we

of

one

right to individual

under

determination

our

government and

our

Had it not been for the volun- member
something
which
you
tary organization of citizen groups know, but which you have failed
throughout the country to support to practice. But do not stop with

ity before the law and the right to
reward

express

mission might well have been lost.
\

ment of free men, to insure equal

party.

assignment. But
that we have an

repeat

women
a

who

us

ion, when it is far
for each

lives this does not

our

entire

.hold

.

inen
considei
asked to con-

sponsibility; to establish

The time has come, in my

difficult

a

me

.for

born

the

and

liberty rounaea on individual re—
founded
inaivictual re-

priceless heritage of freedom.

back

get

entitled to live because of

K?^gaVe
our

f

great land—as we

our

Stripes?

are

establish

must

our

everyone

must

we

worked all
.-seem

of

Stars and

paid,
we

this

tribute by comparison.

are

independence, which is

heritage

.under

citizens of this

they
l^tle

how

—by practice as well as by
preaching.
But,
beyond
all
of
these, we must live as free-born

we

remember

us

price

teach

help to restore
government to its rightful dig-

our

We

country to sound principles.

Let

work—work hard¬
before.

to restore

people of America, of every
shades
politics'and leanings made freedom their cause—and they were
willing to give their lives for it

and set the example.

ever

tively

class and creed, and of all

of

be

economic

we must

than

er

individual

as

the

not

whose

we,

nation's

Yes,

Americans, join this fight for free¬
dom? How

tne

the way

lifetime.

our

But

will

this

life, we
who have known other wars, post¬
war
depressions
and
changing
cycles of business, we must lead

our

based, if

was

opportunity in

How

,

and

freedom

our

that

experience
reaches beyond this particular era

'lives in accordance with the eter¬
which

admit

easy.

independence; if

our

not

I

,

67

(2427)

,

14 Wall Street

so

,,

68

(2428)

The Commercial and Financial Chronicle

]

Continued

from

page

the
in
the American economy and the
contribution which they make to
made which would re-examine

27

role

Research for the

of

As

make to the better solution

it

;

of problems of

can

public and private

(financial policy, and to the grow¬

ing claim which it has made on
the community's support. Let me
turn briefly, now, to the way re¬
search has developed in the fields
most closely related to the inter¬
the

of

est

Investment

may

their

Bankers

Financial

time

in

We should develop a fac¬
description of the present
structure and functioning of the
(1)

Research

1943

tual

the

at

we

National Bureau

were approached
by representatives of the National

Association

of

Securities

with

the

suggestion that
certain

Deal¬

we

specific

since

proposal
time

that

was

made

was

very

search

were

far

capital

funds

money

that

wider than

to

measure

the

of, the basic factors determining
the supply of, and demand for,

carefully
con¬
became increas¬

sidered, but it
ingly clear that the needs for

and

character and extent of the effect

The

at

identify,

to

un¬

studies

market.

1900.

(2) An attempt should be made

dbaling with the problems of the
over-the-counter

the United

States, and trace its development

which had recently appointed
Special
Research
Committee,

dertake

in

business

securities

ers,
a

suggestions. The Committee

proposed the following:

and

Some

one

back

looks

now

the

on

more

the

in

American

market.

School

Finance

of

and

Commerce of the University of
Pennslyvania on the nature and
functioning of the over-the-count¬

orig¬

tion

the work

we

set

from

out

the

to

on

all

universities, and

government.

The

end

from

result

ences

different

of

classes

of

in¬

their typical methods of
published in 1946 under the title, portfolio
management,
and
the
"Research in Securities
Markets," experience which they have had
# pamphlet in which we set forth with particular types of securities.
the general lines along
(6) Impartial and factual studies
which, in
was

vestors,

with

assert

that

we

little

no

in

are

today than

conferences
to

of

interested

consider the

research

lines

should

people

along which

be

pursued; we
will again make a report which
wjll set forward the main lines
along which studies may most

profitably be pursued in the years
Exploratory should be made of the effects of immediately ahead.
So far we
Committee, research should pro- government policy and operations have focused on two principal un¬
on the organization and function¬
dertakings.
We are preparing a
•ceed
if
we
were
to
make
the
ing of the securities markets.
special report, now in preliminary
broadest possible attack on our
(7) Finally, in the light of the form, entitled "An Inventory of
problems and obtain the maxi¬
above, a capstone study should be Research in the Capital and Secu¬
rities Markets," in which we will
set forth the

DISTRIBUTORS

BROKERS

have

been

which

are

determine
which

&

Company

Members:
New York Stock

Exchange

•

American Stock Exchange

Philadelphia-Baltimore Stock Exchange

since

1943,
in process. We

now

or
are

Third

how

seemed

much

of

the

in 1943
has by now been completed. Sec¬
ond, in the light of the work al¬
ready
completed,
and
of
the
changed problems of the capital
and securities

necessary

markets,

we are

ture
of

Largest Trading Area

research.

interest to

confidence

better

a

position

before, and that

ever

New York

City

Philadelphia 7, Pa.

Lebanon

Klngsley 5-4500

•

Atlantic City

'

i

Vineland

recent

research

has run, for it is only in
of these
achieve¬
ments that we can see where the

a

knowledge

gaps

lie,

work

should

and

where

be

additional
forward

Turning first to the

1946

pro¬

posal that studies should be made

Public

Utility

!

Railroad

•

-

of

the

organization and function¬

and

Guaranteed

Television

and

Leased

Equipment Trust

National f Bureau

the

leadership

of;

Funds

in

level

of

What

expanding the
funds

order

to

than

it

maintain

in¬

must

be

important,

more

which

all agree that the

we

theoretical

for

The

is

fact

study

that

theory

structure,

though

substantial

DeHaven
YORK

1500 Walnut
Philadelphia Phone
Klngsley 5-1716

the




Teletype
PH 677

New

York

1500
HEW YORK

mat¬

most notable in

the

field of statistical studies of busi¬

financing practices. Outstand¬

ness

ing in this work is that which has

explored the economics of internal
financing

by

Perhaps of
ance

business

concerns.

greater basic

the continued

are

the .Board

import¬

efforts

of "^Governors

of

of

the

Federal

Reserve
System and
Department of Commerce
provide reliable factual data

of

the

and

sources

of

uses

American corporations.
enable

ures

us

to
on

funds by

These fig¬

follow

to

American
tal

and

economy

requirements

its capi¬
attempt to

and

than

ever

In the

of

some

formulate

some
rough judgments
financing
concerning the prospects for both
savings
and
capital
investment problems

the calculable future?

over

but

Sponsored by funds made avail¬
able

through

Investment

the

Life

Research

Insurance

has

five

restricted

are

of

large

been

10

or

Committee,
of

tiated

sized

business

it

fair

both

of

studies

the

last

these

few

problems

just

completion.

now

One

are

years

is

and

on

both

coming

to
Raymond

Dr.

have

W. Goldsmith's monumental
study
of savings in the American econ¬

which

omy,

count

will

going

give

back

to

us

the

an

ac¬

economic

implications

of

small

than

to

in

the

and

that

say

far

it

improved

last

medium-

think

I

while

this

to

before

ever

much

the

the problems

concerns.

understand

we

on

solution

no

middle

more

and

we

problem,

are

position

fully
in

to

a

ap¬

praise the various proposals that,

decades of the last century. I will
resist the temptation to dwell on

the

financing

is

done

years

major undertakings have been ini¬
in

to

corporations,

should also note the work

we

that

before.

main, studies of business

more

the

less

or

perennially,

of¬

are

fered for its solution.

findings of this study. At long last
we
on

shall have a firm factual basis
which to construct analyses of

the

Question
Risk

rapidly increasing institution¬

alization

of

mean

changed
an

The

the

almost

affair

the

into

savings

You
process.

the trend that has

saving

wholly

process

from

one

&

performed

Townsend, Crouter

STOCK

EXCHANGE

will agree,

CHESTNUT

STREET

WILKES-BARRE, PA.

I

am

sure,

that

aspect of the business financ¬

during much of the period

1946,

namely,

the

&

Bodine

18U

AMERICAN

Adequate

ing problem has been paramount

individualistic

something

of

Capital

STOCK

EXCHANGE

PHILADELPHIA

2

Phone

WHitehall 4-7000

report

can

in these

progress

ters has been

PHILADELPHIA-BALTIMORE STOCK EXCHANGE

Street, Philadelphia 2, Pa.
-

an

in its devel¬
last few years.

MEMBERS
NEW

lack

financial

therefore, than that we* should
the principal trends in the capi¬
study carefully the factors affect¬
ing the flow of savings in the tal markets with more confidence

ESTABLISHED

Investment Securities

need

greatest.

of

we

Obligations

Philadelphia-Baltimore Stock Exchange

of

progress

in

opment

However,

is
still

we

adequate

high the

a

employment and income.

could

Charles A. Taggart & Co., Inc.
Members

the

Simon

;of;; the ^University

:

Stocks

Shares

under

Professor

Bank and Insurance Stocks

Mutual

/

ment? pf- the, American economy,
which is being carried forward at

Corporate & Municipal Issues

Securities

Line

America's Economy

Paralleling this study of sav¬
ings: in .the American economy is
the study; of the capital require¬

Distributors, Dealers, Underwriters

Jersey and General Market Municipal Bonds

Electronic

.

Study! of Capital Requirements of

Industrial

SECURITIES
New

be

in

of

By this I

pressed

in the future.

Dealers and Brokers in

active

vestment

re¬

Perhaps it will be
indicate briefly the

principal line along which
1342 Walnut Street,

job

viewing research needs and pre¬
paring certain proposals for fu¬

Effective Distribution
In the Nation's

less

principal studies that
made

taking this inventory in order to

Newbvrger

system still

us.

—

the judgment of the

UNDERWRITERS

for our

means

and financial

mostly before

in¬

broad

a

lies

Pennsylvania. This is the broadest
stitutions
life insurance com¬ possible attack on the question of
IBA's Interest in Research Relat¬ panies, commercial banks, savings how much capital is used in vari¬
and loan associations, etc. — that ous sectors of the American econ?
ing to Securities Market
As I expect you know, we are,, engage in urban mortgage financ¬ omy, how these demands for capi¬
ing, the broad study which we tal have-changed over the years,
currently engaged in doing again
have made of agricultural financ¬ what factors have tended to influ¬
what was done in 1944-45, name¬
ing, and the recently completed ence these changes, and what the
ly, reviewing the current status of
of the activities of the requirement; for capital is likely
basic research and, in the light of survey
Federal
Government
in
direct to "Be over the coming years.
£
the new and continuing problems
lending, loan insurance and loan
On the third research topic sug¬
faced
by the securities markets,
guarantees. This is an impressive gested in 1946, namely, an an¬
re-examining the needs for re¬
search over the years ahead. This record, but I think it will be free¬ alysis of the merits of various
work is being done with the aid ly admitted that there are many forms of business financing and of
the factors affecting the choice as
of generous grants of funds from gaps still to be filled.
When we come to the study of
this Association and from the Na¬
among different financing plans, a
forces and factors affecting the se¬ considerable amount of
tional
Association
of
Securities
research
curities markets, I think we can has been done. Here is a
field in
Dealers, and with the cooperation

shares, and compare, in this con¬

Accordingly,

make

exploring what this
economic

recently completed Kuznets

at the National Bureau

Again we have appointed an ad¬
in this area the research contribu¬
nection, the functioning of the ex- visory committee, which we call
tions of the last few years have
change
and
over-the-counter the Exploratory Committee on Re¬
survey of research needs in mat¬
been most
outstanding.
As you
search in Capital and Securities
ters pertaining to the securities markets.
know, a notion has been abroad
market, in other words, to de¬
(4) We should attempt to de¬ Markets. This title, which varies for some
time that our economy
velop a general strategy of re¬ termine the costs and advantages slightly from that of the first com¬ has somehow or
other reached a
of
financing business expansion mittee, indicates a certain widen¬ kind of
search before we undertook lim¬
maturity; indeed, the the¬
ited studies, however interesting .through the issuance of securities ing
in
the
scope- of
our
in¬
ory may be carried further to the
In
this
the latter might be. An Explora¬ as compared with other methods terest.
present
work
proposition that we are in danger
are
concerned
not
on4y
tory Committee on Research in of financing and 1 determine the we
of falling into some sort of secular
the
securities per
-Securities Markets was
se,
but
considerations which influence with
set
up
stagnation.
The theory underly¬
and systematic staff work and a
management
decisions in these with the problems of the capital ing all this is that the American
markets generally. Staff work has
series of conferences were initi¬ matters.
people save too much and con¬
gone forward
over
the summer
ated in which interested
people
sume
too little and that, on the
(5)
Careful study should be
and fall, and we have again held
were
consulted
from
other hand, American business is
industry, made of the investment prefer¬

inally contemplated.

or

fairly rigid contractual frame?
work.;'.The fact is that the task of

tee,

(3) We should re-examine the
functioning of the securities mar¬ of the Special Research Commit¬
kets in the transfer of existing tees. of both these organizations.

re¬

less automatically within

a

currently being done at the

Wharton

conclusions of this earlier commit¬

be instructive to remind our¬ attempt to lay down a program of
of the general outlines of securities market research.

selves

Association.
NASD

stability.

ing of the securities markets, the
work

er markets comes
immediately to
mind.
The
very
considerable
their grasp of the essential
amount of information on the in¬
problems of the securities markets
vestment banking business assem¬
mum results from such efforts as
is immediately evident.
Further,
bled in the course of the anti-trust
could be made.
one cannot but be amazed, as we
It is not necessary for me to review the research activities of suit recently completed against 17
investment banking firms should
set forth in any detail the lines the last few
years, at the tremen¬
also be mentioned.
Thinking of
of research which our 1946 Ex¬ dous
progress that has been made
the institutions of the capital mar¬
ploratory Committee regarded as since 1946 in fulfilling the objec¬
the most promising; however, it tives set forth in this first major ket generally, we should also men¬

finance, for the contribution that

i

markets

securities

economic growth and

Securities Industry
t

the

Thursday, December 17, 1953

...

STAMFORD, CONN.

since

question

Number 5282

Volume 178

whether

American

the

.

The Commercial and Financial Chronicle

..

to

economy

equity in risks capital.
This is
problem in which we have had
a
very keen interest at the Na¬
that

the

amounts of

rent

among

persons

istics.

question

of

how

cerns.

existing

vestor

a

ing the prices of
where

the

in

capital

has been

prob¬

effort

in¬

ter

the

nancial

this

in

into

forward

other

example,

for

economy,

of

areas

the

into

the

before

has

in¬

much

so

of

identity, his
preferences, his habits of security
selection, and his experience. In¬
one might say that
become the central figure

deed,

This

the

investment

is

interest

It

in research efforts.

Thus,

we

Institution

Brookings

Exchange,

the

on

in

the

of

of

Federal Reserve System and

in

through the facilities
Survey Research Center
University of Michigan.

of
of
In
periodic field surveys, facts
been gathered on the asset

holdings of individuals and on the
intentions of individuals with re¬

assets.

data

the disposition

to

future

and

income

possible

makes

it

differences

in

available

become

study

to

behavior

investment

of

in which these

form

The

of their

purchases

in¬

among

dividuals in different income and
wealth

classes,

makes

possible

over

our

You

that has been done

matters

at

Harvard

the

Business School and of the study
we

have

Bureau.

sented

made

itself

at

the

National

opportunity

An

to

us

not

pre¬

long

in

ago

stock

time
any

of

that

the

is

shortness

at

of

disposal;
the inventory of re¬

case

of

part

omissions,

be forgiven for

can

view

we

my

preparing

are

current

our

as

planning ac¬
effort to be

tivity does make

an

complete and
,

studies

of

taken

into

ac¬

I think

you

all

will

sequence

be

count in that listing.
will agree
on

the

with

basis

account, that

we

of

number

the

which

of

however, even
incomplete
can claim a major
this

aims

our

lines

along

a

being

as

desirable by the 1946 Exploratory
Committee. What remains for us
to do

ord

is to examine this

now

with

lems,

an

and

once

should

task

have

we

less

two

fi-

The

structure,

activities

stability of our
I expect you will accept
general observations on this

will

cases,

be

to

that

some

Let

therefore,
research

have

we

the

growth and

stability of

our

economic system, and the second
is that there is still a fairly wide-

in-

bank-

spread notion that,
securities

balance the

on

markets

exert

stabilizing influence

every

other

de,-

a

on our econ-

principal type of financial
commercial banks,
savings
banks, insurance
com-

omy.

panies, savings and loan associations,
finance
companies,
loan
companies, public financial agen-

culties

sector that destabilizing influences

there

—

many

formation

them is

more

or

of

enterprise system
the financial sector

our

in

of the economy, that it is in this

known, at least in
outlines, and our in-

on

One must not forget that
is a lingering feeling in
minds that the real diffi-

originate

well

their broad

of

altogether inadequate under- of individuals for investment on
standing of how the issuance, sale, an ownership and risking-taking
and transfer of securities affects basis. Indeed, there is far more

originate, and that they

less

therefrom

mitted

are

the

to

trans-

rest

of

at stake here than just the financial welfare of the American'
corporation. Far more important
is the organic connection between
free enterprise in the business
system and what we call frecV
institutions in the political sphere,
I think you will not quarrel with'
the proposition that neither of
these can exist for long without
the support of the other: the.
whole history of the modem
world is proof of this. Obvioudy
we must grasp every opportunity;
.,

to

deepen

our

understanding o:~

how equity capital is supplied iro
our financial system and what
conditions, most of which arcprobably of mans own construetion, stand in the way of risktaking investment. I am not say—
log that no progress has bee®-*
the functioning of the investment not be done in a few months, or made
along these lines, on the:
banking business in the United even two years. I am sure that it contrary we know a good deal

current.

the

take

I cannot

economy.

the

time to discuss this in detail, but
about
the
investment
banking I think it is clear that, from the
business.
Why should we not viewpoint of available data at
plan to make, within the very least, we are in a ■ fairly favorable
near
future, a truly comprehen- position to do work of this kind,
sive survey of the structure and
assured, however, that it will
However

What

States9

cannot

we

are

the

this

say

would require no less than three oiore

that

units

these functions changed
last

tion

10, 20, or 30 years?
to
developing
a

account

of

the

about

these

mstters

tXictn

ever before but we should push
forward into new fields in the
over the mark for many years to come.
years that lie dhead. I can thin<
In addiThe third field in which factual
n0
n0r
years to complete, but I am equally certain that it would be a land-

make up this industry? What are
their
functions
and
how
have

.

correct studies should be pushed forward

characteristics

of

the

immediately ahead
is that of the regulation of the
investment banking and securities business. There can be little
doubt but that, as we stand to-

in

years

undertaking than an exhaustive analysis of the provision or

ought to know
e(lulT;y capital m an enterprise
the forces that
system.
are causing the nature and shape
These are very preliminary and
of the industry to change. Surely
tentative proposals
and I might
there can be no quarrel with the day, our system of regulation is •,,
V
proposition that the industry is far from a perfect one. There are
d' altogether personal, and
the

industry,

something

we

about

basic

undergoing
question
while

to

changes;

the

grave

doubts about the structure

understand

the

forces

that

are

present

scope,

notions

as

to the industry's

shown

and

the
to

tendency

no

such,

comprehensive

survey

of invest-

banking is made—and I am

we

have

rience

complex

is now at work

on

these and

re-

sim- points in greater detail and that

be

Now that its efforts will lead, in the not toe

probable future course. When this plified over the years.

ment

as

of state regulation has lated matters, will develop these

bringing them about, and to have structure
some

hope you will accept them

is whether it is worth- of Federal regulation, and whether It is my hope that the report o3
they are, to it should be extended beyond its the Exploratory Committee, which

know what

explore

hold

is

to

over,

fair amount of expe- far distant future, to the initia-

a

with

Federal

state tion of work along these lines.

and

re¬

say,

our

new

main

present

our

keep

up

to

of the information that

3

STROUD & COMPANY

has been developed in the last ten
years.

the first is that

mention just one
the
continuing
problems of an enterprise economy is the provision of equity
capital. It is unthinkable that our
system could continue in anything;
like its present form unless w<
can continue to tap the savings
One

an

organization

almost

of

growth and

matter:

ever

current

than investment

securities

primary importance,

of

shall

some cases

to

other

in

position,
date

In

have

shall

what

more

done

be

the next ten years.
we

the

been

formation

banking and

economy.

equally

which

dif- tigations

a

today's needs, and to

ask ourselves

search

rec¬

to today's prob¬

eye

our

we

limitin2 myself to inves-

..1

tb

business in the United States and

research

of

indicated

were

con-

me,

of

fulfillment

fields;

the

of

also

know

may

these

advance

great

a

previous knowledge.

notable work
on

obviously

which

are many

search which

con-

,ducted

There

perhaps I

this

by the Board of Governors of the

i

spect

the record

on

common

a

years.

financial ac¬
tivities, have been the Surveys
of Consumer Finances, sponsored

have

in

activity, it is far from
complete account of all
that has gone forward in recent
being

far broader range of

these

University

research

a

,

know,

may

Although the above in itself is
impressive record of financial

the

H the

you

an

this

the

As

%

but

into

investor

of

investment.

United

reaching

problem

experience

itself of
the composition of public transactions during certain periods in
1952 and in 1953.
Going beyond

and

taking

are

study,

Stock Exchange has made

work,

the

hands

than

turn

me

of

cies—are

mortgage fields.

gratifying to report that at

western

have

States, and the studies which the

i

farm

the

in

about

now

system

institution

work has been initiated at North¬

that

distribution of

ownership

and

vestments.

sponsored by the New York Stock
stock

any

vestment

bet-

are

we

and

experience in equity security in¬

the

the ultimate investor has enjoyed
the

over

investors

competent

hold

of in¬

attention

is

last

he has

in

institutional

urban

process.

reflected

increased

greatly

yield to holders

meas¬

period of time. Supple¬
menting this, we have made ex¬
tensive studies of the experience

his

investor:

in

to

us

what

ing.

infor¬

selected

terest been expressed in the ulti-

terest

the

ure

industries.

-mate

obtained

have

mation which enables

public - utility and manufacturing
Never

them

to

occurs

kind

problem, namely, and
I
the relationship between the in- more.

before, but I think it
evident that there is
no
segment of the financial machinery
of this country about

is

lem has been regarded as most corporate
bond
difficult, with the idea that if this which we have taken a census of
all bonds issued in this country
investigation shows -promise of
constructive results we can push since 1900 and for various samples
of

but that

informed

have

area

investigation of
experience,
in

own

our

of

field

that

for

ferent

a

little doubt

Perhaps

the

experience.

shares, outstanding

bank

equity

research

on

Accordingly,
we
have
study of factors affect¬

-

started

comment briefly

me

Banking

might
"comprehensive survey
of the investment banking
industry." I think there can be

Experience

Finally, let

con¬

point
need

be termed

large part a
the market

values the shares of

the

is

me

Research in Field of Investor

in

becomes

turn

Second, let

Investment

first

The

to sell new securities and that this

in

bemg kept UP t0 date,d

—.

_

of

income,

gards

equity capital is really

Exploratory Committee.

Need for Comprehensive Survey

differing as re¬
professional occu¬
pation, age, and other character¬

whether our
adequate

question of the ability of firms

a

in detail in the report of our cur-

differences

about

6&

confident that it will be—one of regulation, is it not time to makethe primary objects should be to a thorough factual study of what
identify the specific items of in- its impact has been on the securiformation that need to be kept ties business and on the economy*
current, and to lay plans for their generally?

very

in preferences for different types
of
stocks
and
of
other
assets

I think it is clear

question
supplies

economy

This must necessarily be a
preliminary statement, of
course, but it will be developed

ing.

assets

the

of

study

a

something

say

a

tional Bureau.

make

holdings of Wisconsin individuals,
in which it would be possible to

produce adequate amounts of

can

(2429)

me

to

that

turn for

a

Incorporated

moment,

the lines of future
seem

most

PHILADELPHIA

promis¬

I

Dealers in

Underwriters & Distributors

Corporate and Municipal
Securities
State and

Municipal Bonds

Equipment Trust Certificates

Specializing in

Public

Pennsylvania Tax Free Issues

Utility and Industrial Securities

Philadelphia Bank Stocks

YarnallSt Go.
MEMBERS

New York Stock

Exchange

American Stock Exchange (Assoc.)

Philadelphia-Baltimore Stock Exchange
1528

WALNUT




STREET,

PHILADELPHIA

NEW YORK

PITTSBURGH

ALLENTOWN

LANCASTER

ATLANTIC CITY

J1

70

The Commercial and Financial Chronicle

(2430)

Continued

from

Alabama:

29

page

For

SEC and Slate Laws

Impeding Capital Flow
a

and

Special Subcommittee of the Leg¬

one

result

the

is

Committee

islation

work

of

by

the Texas

of

in

administrative ruling
other state (Florida).
by

statements, it should be noted that
the National Association of Secu¬

cooperation
Securities

Texas

distribution

of

of

the

of

Members

Harland Mayes

(Rauscher, Pierce
Co., Inc., Dallas), Mr. Robert

&

E.

Beissner

(Moroney,

Moroney

&

Co.,, Houston), Mr. Charles C.
(Rauscher, Pierce & Co.,
Inc., Dallas), and Mr. W. Allen
Taylor (>L\ F. Hutton & Company,
Pierce

Dallas).

v

In Tennessee, a

bill embodying
securities law of
notification
type has been

complete

a

the

new

statement

new

a

to

prepare

a

This uniform
accepted
in
many states, but it has not been
accepted in some states and it is
not required in many states.
Clarification

ing Authority

under con¬

also

thority bonds
in

type in several other states, but
bills were not introduced in the

in

year.

Distribution of

of

the

North

regard¬
ing the permissibility of distribu¬
tion
of
identifying
statements
meeting the requirements of SEC
a

survey

Rufe 132 prior to registration of
the

described

securities

under state

blue

This survey

distribution

sky laws.
not

has

by

of

now

been

made

amendments

laws

of

to

three

of

be

per¬

Such distri¬

identifying

an

Carolina

blue

those

For

other
of

law.

states

For

Johnson

Michigan:

insurance

For

Minnesota:

life

For

insurance

banks

and

trust

April

evidences

an

issued

be issued for

a

and

indebtedness

of

authority

22,
that

heretofore
are

public

purpose

For

Nevada:

insurance

com¬

panies.

lation

Hampshire:

For

savings

this year to
laws of the

been

New

Jersey:

For savings banks

York:

New

For

savings

North

Carolina:

North

Dakota:

life

and

companies.
Dakota:

savings banks
-"

insurance

Philadelphia-Baltimore

N. E. Cor. 15th & Locust Sts.

300 N.

Philadelphia 2, Pa.

Charles Street

Baltimore

PEnnypacker 5-8300

1, Md.

SAratoga 7-1100

com¬

insurance

!nnilll!n!iniQ!!llliiniini!IRI!iRllfl!i]illilil!flIl!!l!Iin!&l!ll]il!)IIIf!ilIlll]

H.

&

Co.,

S.

Vrtis

Lyle F. Wilson
Pacific

Northwest

Company

Seattle
Harold

D. Writer

Peters, Writer & Christensen,
Inc., Denver

Blue

and

The

Securities

(b)

Clarke, Incorporated

Fred

stating
ment

Cohen

been

that

curities

security

10

Act

of

the

Alabama

amended

was

registration of securities shall not

Co., Kansas City

in

be

excess

of

$1,000 regardless

of the amount of such registration

(there
mum

previously
fee).

was

maxi¬

no

ARIZONA

The Arizona Securities Act

Stanley R. Manske

amended effective March

National

Bank

of

St. Paul, St. Paul

by

adding thereto

a

certain

PENNSYLVANIA SECURITIES

agement

i

of

of

their

funds

section

new

providing for the appointment of

Orus J. Matthews

conservator

a

Kidder, Peabody & Co.
Philadelphia

affairs
up

Harland Mayes

of,

the

or

to
a

affairs

reorganize

receiver

of,

a

to

person

ordered by the Superior

so

Arizona

Securities

in

tered

Municipal & Corporate Bonds

111

CONTINUOUS YEARS OF

SERVICE TO INVESTORS

1
*

I

O £
7 J

under the Investment Com¬

Act of 1940, organized for a
period of at least 10 years and

pany

Preferred & Common Stocks

& OCX

having assets of not less than $25,000,000).
MEMBERS

Philadelphia

SCHMIDT, POOLE, ROBERTS i PARKE
123

SOUTH

BROAD

STREET,

PHILADELPHIA

PHONES

Phila.—Kingsley 5-0650
N.

Y.—Hanover 2-4554




Stock

License

W.PH1LA.-BALT.

Tax

v

A

case

was

filed

on

behalf

Exchange

After

AMERICAN

No.

2

of

EXCHANGE

EXCHANGE

STOCK

EXCHANGE

1500 Walnut St.

Philadelphia

(ASSOC.)

Phila. 2, Pa.
KI 5-0340

5

Pleas

STOCK

an

adverse decision in Court of Com¬
mon

YORK

%•;

of

the
Eastern
Pennsylvania
Group of the IBA in the name of

Mercantile License Tax.

STOCK

,

NEW

of

Penington, Colket & Co. to obtain
exemption from the Philadelphia

MEMBER

Philadelphia-Baltimore

Mercantile

who

the

Act, if

Dallas

open-end man¬
type
investment
com¬
investment trust regis¬

or

the

wind

violates

Rauscher, Pierce & Co.

any

pany

was

26, 1953,

companies other than life
(authorizing such companies to

securities

Se¬

effec¬

surance

invest

has

the

tive Sept. 9, 1953, to provide that
the maximum
fee
for
any
one

St. Louis

in¬

such

with

and

state¬

SEC, will be
effect before the offering is
made and will permit the offering
of such security and (c) payment
of the prescribed fee.
Section

Dorbritz

First

Alabama

registration

a

covering
filed

thereof

amount

in

in

S. Kelly

The

the

offered

Stifel, Nicolaus & Co., Inc.

amendment to the Kan¬
for

be

to

a

prospectus,
describing the

statement

a

(a)

official

security and

Clarke

and

Commissioner

the

of

copy

Henry Hornblower, H
Hornblower & Weeks, Boston

the

Act

July

have been filed with the Alabama

Fogarty, Jr.

Zahner

Securities

effective

Securities Act any security reg¬
istered with the SEC if there shall

Pittsburgh
John F.

1953

27,
1953, to exempt from the Alabama

Antonio
O.

Alabama

amended

was

Moore, Leonard & Lynch

§§
The Southwestern Group of the
g IBA was successful in its effort to
legal investment law

Sky Laws in
ALABAMA

Dewar

Ernest

duciaries.

an

:

Chisholm

Glore, Forgan & Co., Chicago

legislation

Dewar, Robertson & Pancoast

con-

ll

sas

state

Montgomery
Hal

San

[Appendix B of the report

obtain

in

Mortimer A.

com¬

g
jj-

m

Charles

help¬

Francisco
W.

John W.

Committee
of
the
Northern Ohio Group of the IBA,
whose Chairman is Mr. Herman
J. Sheedy (McDonald & Company,
Cleveland) assisted in obtaining
the adoption this year in Ohio of
a modified form of the prudent
man rule for investments by fi¬

jj

Varnedoe

APPENDIX A

San

g
The Legislation Committee of
gj the Ohio Valley Group of the IBA,
§§ whose Chairman is Mr. Stanley G.
g McKie (The Weil, Roth & Irving

Stock Exchange

be

can

Sterne, Agee & Leach

Cincinnati)

L.

Varnedoe,

Summary of Amendments to State

John

panies.

Company,

;

York

Samuel

of assistance

Brush, Slocumb & Co., Inc.

g Legislation

Members

be

to

Ernest E. Blum

For

For

'

Morgan Stanley & Co.

sug¬

Richard A. Bigger
R. SJ Dickson & Co., Inc.

g tained a summary of these amendments.—Editor.]

g
g
gj

welcomes

Chicago
For

Co., Chicago

Shriver

'New

'

Legis¬

Quail & Co., Davenport

§§

|

State

Charlotte

trust

&

McDonald & Co., Cleveland
Alfred

attend

John J. Quail, Vice-Chairman

fiduciaries,

societies.
Rhode Island: For

Podesta

Herman J. Sheedy

commis¬

f

A.

Cruttenden

Mullaney, Wells & Co.
Chicago

panies and fiduciaries.

Bankers

Robert

members

o

-

Rauscher, Pierce & Co., Dallas

Paul L. Mullaney, Chairman

savings banks, banks and trust
companies, and fraternal benefit

and

'

Charles C. Pierce

k~

COMMITTEE

insurance

fiduciaries

For

s
-

STATE LEGISLATION

For fiduciaries.
For

/

Ralph Owen

:

Respectfully submitted,

banks

<

Chicago

problems.

insurance companies.

Pennyslvania:

any

'

Inc., Savannah

to how it

time

and insurance companies.

B

Investment

as

Co., Chicago

Osgood

Blunt Ellis & Simmons

the

of

course,

the

Committee

at

Wisconsin:

M

The Illinois

Gilbert H.

Nashville

whose

of

Co., St. Louis

Associa¬

securities

offers

Washington: For mutual savings
the legal investment
banks.
following 30 states:

BROOKE &. CO.

G. H. Walker &

George F. Noyes

Equitable Securities Corp.

Convention

will,

Co.

1

George A. Newton

banks.

Vermont:

amendments

sue-

Representatives

ful and

panies.

have

-

case.

National

conclusion

gestions

New

Legal Investment Laws
There

state

IBA

In

fiduciaries.

For

insurance
to
be
public
instrumentalities
and, together with the interest companies.
Texas: For life insurance com¬
thereon, shall be exempt from
taxes."

Detroit

the Convention.

Nebraska:

to

and

of

Annual

the

the

or

declared

saves

Securities Administrators

Hollywood.

,

effective

decision

Moore

McDonald-Moore &

esti- V

been

»

Richmond
William

Pennsylvania

has

Marshall, Seattle

Branch, Cabell & Co.

sioners, will be held at the Roney
Plaza Hotel, Miami
Beach, Fla.,
from Dec. 7-11,
immediately fol¬
lowing the IBA Convention at

com¬

v

under and insurance
companies.

amendment to the North

this

Administrators,
are

(McDaniel companies.
Greensboro), ob¬
Ohio: For

Co.,

Foster &

Roderick D. Moore

National Association of Securities

savings

Mem¬

Carolina, including Mr.

law

hereafter

sky

(Colorado, Illinois and Indiana),

savings banks.

panies.

thereon

1953, specifically providing
"Bonds,
notes,
debentures

statements
permissible

the

The

South

indicated that such

would

missible in 13 states.
bution

therein

&

tained

Washington Bulletion No.

3-1952 contained

interest

tion of

banks.

tax

some

It

Weil, Roth & Irving Co.,

Donald A. Meyer

-

the

legislation committee

H.

Lewis

Statements

IBA

the

Carolina

North

bers

Carolina,

that

Convention

Maine:

ruled

questioned whether such
and

Marshall

Identifying

compa¬

Massachusetts:

this Richard A. Bigger (R. S. Dickson
& Company, Charlotte) and Mr.

states

those

insurance

nies.

housing au¬

actually tax-exempt

were

securities laws of the notification

of

exempt from

were

North

bonds

the

of

Carolina

North

sideration to adopt complete new

legislatures

For

Kansas:

Missouri: For insurance compa¬

Carolina

the

cessful action in this

nies.

Bonds

officials

tax
North

of

mated

compa¬

nies.

Although
State

under

companies. Pennsylvania Group for their

insurance

companies and
companies.

Tax-Exempt

Status of North Carolina Hous¬

counsel
are

of

sylvania

com¬

For

pur¬

is necessary.
legend
has
been

tax

Proposals

this

for

com¬

Securities Act.

Illinois:

pose

ranged to work with him in draft¬
ing the bill.

action

insurance

For

Iowa: For insurance

under the law of any

where

that

new

eligi¬

Cincinnati

t

described

securities

ble for sale
state

bill, but represen¬
tatives of the industry have ar¬

complete

specifically

state

to

The

panies, fiduciaries and banks and some individual investment bank- \
ink firms in Philadelphia as much trust companies.
as
$3,000 per year and that the
Georgia: For insurance compatotal
savings to all investment
nies.
■'
banking firms there is roughly ;
Indiana: For guardians of es¬
between $40,000 and $50,000 per
tates of incompetents.
year.
We commend the Eastern

identifying

therein have not been made

securities commissioner in

desires

the

on

the

that

prepared by a committee of deal¬
ers,
including Mr. Ralph Owen
(Equitable Securities Corp., Nash¬
ville). It is now understood that
Tennessee

included

be

Stanley G. McKie

nia.

com¬

Florida: For life insurance

identifying

Special rities Administrators, in coopera¬
Subcommittee are Mr. Hal H. tion
with
blue
sky
attorneys,
Dewar (Dewar, Robertson & Pan- has endorsed a uniform legend
coast, San Antonio), Mr. E. O. for use on identifying statements
Cartwright (Merrill Lynch, Pierce, in states where the commissioner
Fenner &
Beane, Dallas), Mr. deems it necessary that a legend
sioner.

insurance

the Commonwealth of Penn¬

Delaware:

Commis¬

the

County,

an appeal was taken to
Supreme Court of Pennsylva- V
On
June
26
the
Supreme
Court of Pennsylvania held that *
panies, savings banks, and banks
securities dealers registered under
and trust companies.
the Pennsylvania
Securities Act
Connecticut:
For
fiduciaries, are
exempt from the Philadelphia
savings banks and savings de¬
Mercantile License Tax
because
partments
of
state
banks
and
they are already paying a license
trust
companies.
fee to

For

panies.

In connection with the problem

with the
Secretary of State of Texas and
in

Group

insurance

the

California:

bill

life

companies.

.Thursday, December 17, 1953

..

1
J

(Tf

Volume 178

Number 5282

.

The Commercial and Financial Chronicle

..

(2431)

Court of

Maricopa County

on

COLORADO

pe¬

tition by the Attorney General.

ARKANSAS

tions

Securities

Act

amended

was

subsection

new

"Securities

(h)

to

thereof,

exempt

ful

rities Law

Corporate Secu¬

Sept. 9, 1953 as follows:
(1) Subdivision (1) of subsec¬
tion (b) of Section
26003, provid¬
ing that for the purpose of deter¬

mining the

fees

for

permit

a

issue securities the value of
rities

shall

be

their

par

securities

face

or

value

is

value

consideration
amended

thereunder.
reads

face

as

received,

<

provide
for

that

the

is

face

in

value

determined
in

sion

was

if

"the

or

of

their

par

the

consideration

received

missioner,

whichever
(2)

is

the

be the

value of those

rities "when

1933

as

deemed

to

make

(2)

and

under

not

of

sus-

identifying statement

an

proposed

form

of

or

prospectus

statement

a

or

other

form

of

provisions of the Federal Se¬

6010

der."

.

apply to the following:
"(c) To
common

qualified

security, other than
stock, providing for a
any

fixed

return, which security has
outstanding and in the hands
of the public for a period of not
been

than

less

which

five

and

years

default

in

upon

sale

for

to

the

by adding

public

Connecticut Securities

amended

was

par

1953,

effective

Act

April

7,

follows:

as

(1)

secu¬

Subsection

(b)

of

Section

6010,

principal

payment

or

turn

In Section 6014, relating to
investigations and the issuance of
permits for mining or oil securities,
the
second
sentence
was
(3)

amended by

deleting the language

exempting securities listed
specified exchanges from the
permit requirements for mining

rection and change and that no 0 pr°sPec US l ed aspart °f^a
°^der to purchase the securities registration statement under the
discussed in the prospectus or Federal Securities Act of 1933)
identifying statement will be

ac-

and by

cepted

se-

a

unless

^underlined ""itaUdzedflan- curities

the

to read

guage

or

follows:

as

until

and

such

sale,

such public interest and in furtherance

and

identifying statement

unless

commission together with a filing

the

same'for

shall

Commissioner

\'and such'pm'rnis-

cause,

sion may be renewed for a

period

Told

not

(4),

relating
other

or

to

be

received

in

Subdivision

rights, warrants,
evidencing

to

that

if

the

securities

right

or

se¬

amended to provide

was

market

price

represented

form of of the purposes of this statute, it

or,

prospectus has been filed with the may

and

of

tion

no

value

the fee for filing an applica¬

relating

such

to

warrants shall

be

rights

subsections .(m)

to

mining
a

or

oil

se¬

preliminary

the

one

notice
York

sale

within

this

state

were

and

^hall^bTwTompanted

plication
by

Stock

,

.

thereof,

shall

have

distribution

ing statement

of

consented
such

to

or proposed form of

to

security

any

ply only as long

as

shall be and remain
to

,

,.

,

Idaho

Blue

effective

amended

fees

Sky Law
March

1, 1953,

of

Section

451.104, exempting securities is-

re-

such securities

any

required
filing

of

in

with

connection
application

an

for

registration of the securities being

commissions,

are

subject to

obtain

to

Department

subject

of

amended by de-

reg-

ulating

have

commission

authority

must

"equal to that of the

Michigan Public Service Commis-

sion" and by inserting a requirement that the regulating commiss*on must have authority "to regContinued

identifying

such

was

on

Idaho

page

72

the

of

Finance,
was
limit
the
licensing

to

requirement

license from

a

reg-

leting a requirement that the

A1._

brokers

to

who sell

under Section

such

(d)

(a) of Section
26-1808, requiring securities bro¬

exempted

of

*

Subsection

Subsection

"other

official .action

the

the

(1)

securities

pur¬

was

follows:

as

ap¬

listed,

(3)

prospectus pursuant to the provi- ity if the offering and issuance of

application for registration of

.

IDAHO
The

such security
so

prescribe.

may

identify-

model law of securities as now provided under
the notification type with a few the act, and any fee paid under
minor changes, was adopted
in the provisions of this section shall
Georgia effective March 3, 1953.
be applied to the payment of any

amended

senior

"sell"

after determining the advisability in conformity with regulations it

embod^ng^helE^

kers

security
so listed;

any

or

place the requirement for filing ulation by certain governmental

GEORGIA

Stock

Exchange, and

exempt from

fee o£ $25 and the commission, the dissemination of information

sions of this section shall not

filing fee of $25."

a

Exchange, the Amer¬
ican Stock Exchange, the Boston
Stock Exchange or the Midwest

suant

(n) of Section 25100.

is

approved for listing upon
of issuace on the New

regulation

year

or

or

provided this exemption shall

(2) Technical amendments

adopted

or

$20.

any

by

the definition of "sale"

from the date prospectus.
sued or guaranteed by corporaof issuance of the permit, an ap"(b) Any filing of an identify- tions owning or operating a railplication shall be filed for reing statement or proposed form of road or other public service util-

within

final security, which at the time
listed

.

To

curity, whether

the

selling price under such right or
warrant,
the
right or warrant

following:

"(b)

the

of
by

warrant is lower than the

shall be deemed to have

the

to

certificates

rights to purchase additional

curities,

oil securities, was amended by
adding the underlined [italicizedJ
language to provide that the per¬
mit requirements shall not apply

substituting in lieu thereof

provision that if the commission

are effectively registered deems such action to be in the

Qualified for

"Such permit, if given, shall be
valid (for one year) from its date,

or

alleged in the appli¬
the actual value of the

as

therefor.

provision authorizing

a

under the provisions of this act the commission in its discretion
sha11 not be included within the to destroy records more than 15
terms 'sell,' 'sale,' 'offer to sell,' years old which it deems not woror 'offer for sale,' as defined in thy of retention.
Section 3 of this act if a copy of
(2) Subsection (d) of Section
such identifying statement or pro- 451.102, defining "sale" and "sell,"
posed form of prospectus con- was amended by striking the last
tains a prominent statement to the paragraph thereof (permitting dis-

of
failure to pay the refixed has occurred for the effect that the information con- semination of information by sendfive-year period immediately pre- tained therein is for informative in
Qr
. .
tprODOSed form
ceding;" ,
purposes only and subject to cor8
8
torm
no

authorizlTto^e lold fre

CONNECTICUT

issued" if that value

consideration

of

subsection

of

~

The

se¬

the value

exchange

form

was

on

or

prosposed

subsection

1933, as amended,' of one year in the discretion of
regulations issued thereun¬ the Commissioner, upon payment
Act

to

is greater than the price at which
the securities are sold or issued,

cation,

or

prospectus."

re-

(c) of lating to any securities for which
TtfirmrAV
'
''
redesignated as a registration statement has been
(d), and a new sub- filed with the United States Se'The Michigan Blue Sky Law
section (c) was added to provide curities and Exchange Commision was
amended effective Oct. 2,
that the permit requirements for prior to the time when such se- *953, as follows:
mining or oil securities do not curites have been registered or
(1) Section 451.101 was amended
Former

Section

un¬

statement relating to
security in accordance with

and

value, the value of such securities
shall

be

greater.

provide that, with respect to
curities having no nominal or

provisions of the

the

curities

or

amended

was

the

descriptive

the value determined by the Com¬

Subdivision

Registration

pending before the
Exchange Commis¬

statement

such

value" the value shall be the value
of

shall

ing

as

face

or

is

security

any
a

issuance, 'publication
or
circulation
of a
preliminary
form of prospectus, an identify¬

by the Commissioner

excess

which

under

lawful

par

value

of

case

amended, nothing in this Section
3

securities
a

paragraph

new

Federal Securities Act of

the

their

when issued will have

the

Statement

securities

of

excess

The

Securities and

the

alleged in the application or
determined by the Commis¬

sioner"
or

the

of

the

1933 in

exchange,
pension;"

...

"In

par

value

under

follows:

as

concerning

of

pending

accordance with the provisions of
that
Act and
regulations issued

to

case

excess

which

the
so

to

consideration

"as

in

in

shall 'be

is

statement

value unless the consideration for

the

the

Federal Securities Act of

secu¬

or

to

1,

issuance, publication or
a preliminary form
of prospectus,
identifying state¬
ment or other form of descriptive
statement relating to a security
concerning which a registration

amended effective

was

April

1953,
paragraph at the end
provide that nothing

a

circulation of

CALIFORNIA
The California

Se¬

in that section shall make unlaw¬

issued

by any church
religious association.

or

Colorado

effective

by adding

fective June 11, 1953, by adding a

the

specifying transac¬
to
the law,
was

subject

amended

ef¬

of

Law,

curities

Section 67-1205 of the Arkansas

-

3

Section

71

Code"

securities

than

26-1802,

THOMAS & COMPANY

the
quoted language for "other than
bonds of the United States, the
State of Idaho, or of some mu¬
nicipal corporation of the State of
by substituting

ALCOA

,

BUILDING

PITTSBURGH

19,

PA.

Idaho."

Underwriters

and

Distributors

Subsection

(2)
MUNICIPAL

PENNSYLVANIA

26-1808

BONDS

ing
GENERAL

MUNICIPAL

MARKET

CORPORATE
REVENUE

AND

BONDS

fee

Section

of

registration

for

Municipal and Corporate

by increas¬

of

Securities

agents of brokers from $10 to $20
per year.

SECURITIES

AUTHORITY

the

(b)

amended

was

Section 26-1809, requiring

(3)

BONDS

a

semi-annual statement from every
"investment
amended

c o m

p a n

increase

to

y,"

was

fee

the

for

filing such statement from $5 to
$10.

Aspden, Robinson & Co.
Members

1421

Philadelphia-Baltimore

CHESTNUT STREET,

Stock

ILLINOIS
A

Exchange

was

PHILADELPHIA 2

Jan.
New

York

COrtlandt

Phone

Philadelphia Phone

Teletype
PH

7-6814

RIttenhouse

313

law

6-8189

complete
1,

Illinois

Although

1954.

is

basically

cation" type,

securities law

new

in

adopted

the

of the

it provides

cation procedure for the

tion

securities

of

seasoned

notifi¬

a

Western

issued

and West Virginia

by

.

■

i

and

Unlisted

Securities

INDIANA

Section

of

8a

curities Law
March

the

distribution

9,

statements

Corporate Bonds and Stocks

the

was

tive

Indiana

1953,

relating

Kay, Richards &■ Co.

authorize

to

of

Se¬

effec¬

amended

MEMBERS:

identifying
New

securities

to

York

Authority Bonds

has

(Assoc.)

filed

Commission

PHILADELPHIA 2, PA.

as

if

the

and

United

Exchange

certain

require¬

complied with, to read

follows:
"Section

giving

1

with

Securities

ments are

to

Chicago Board of Trade

registration statement

a

been

States

Pittsburgh Stock Exchange

Exchange

Stock

American Stock Exchange

for which




'

■

Listed

Incorporated

1518 LOCUST ST.,

Pennsylvania

registra¬

with the SEC.

Municipal Bonds

DEALERS

new

"qualifi¬

companies and registered

Rambo, Close & Kerner

DISTRIBUTORS

UNDERWRITERS

effective

UNION

TRUST

Bell Teletype
Butler, Pa.

•

BUILDING
PG 466

Erie, Pa.

•

PITTSBURGH

any

(a) The sending or
person

of

a

copy

PA.

New Castle, Pa. • Warren, Pa.

Washington, Pa. • Clarksburg, W. Va.

Correspondents and Private Wire System
8a

19,

Telephone ATlantic 1-3241

Meadville, Pa. •

•

Uniontown, Pa.

•

•

HARRIS, UPHAM & CO.

.

l>

The Commercial and Financial Chronicle...

Thursday, December 17, 1953

(2432)

5tt

of

return

Continued jrom page

71

plication

SEC and Stale Laws

curities

the

slate

sale

and

issuance

of added

80.06 to exempt:

to Section

"(11) The issue

and delivery of

(4) Subsection (j) of Section any security of the same issuer
451.104, exempting securities fully pursuant to a right of conversion
listed or admitted to the list on entitling the holder of the secu¬
^notice of issuance on the New York rity surrendered in exchange to
make such conversion; provided,
Stock Exchange, was amended by
that the security so surrendered
inserting "or on notice of issuance
has been registered under the law
.and satisfactory distribution" imor was,
when sold, exempt from
jmediately preceding "on the New
the provisions of the law."
York Stock Exchange."
(3)
Section
80.07,
providing
MINNESOTA
that no securities shall be sold
following amendments to
-the Minnesota Securities Law be¬
The

Subsection

(1)

for

jneflect
those

"American

and

"Chicago"

;Stock"

"Midwest"

substitute

Curb," to

"New York

in the

changes

names

of

with
in

new

a

clarify the meaning of "unlimited

registration."

subdivision (11) was

prescribing

80.20,

Section

(4)

the fees to be paid, was

intention

notifications. of

permitted

the

commisioner

to

to

sell

withdrawn,

be
may

order

the

subject to supervision, regula¬
or
control
by the Public

tion

Utilities Commissioner of Oregon,

of

than

rather

NEW HAMPSHIRE

Section

dealer

to

defining
person "en¬

Law,

mean

any

gaging in the selling or offering
for sale of securities," with spe¬

exceptions, was amended
effective March 30, 1953, to de¬

stances,
a

dealer

fine

include

to

per¬

any

"engaging in the purchasing
selling or offering for sale of se¬
curities"
with
specified
excep¬

son

that

provision

fee

"any

of

purchase, hold or obtain directly
or

indirectly more than one mem¬

bership."

JERSEY

The New Jersey

Blue Sky Law
19,

(1)

Court"

"Superior
chancery"

substitute

to

for

of

"court

throughout the act, (2) to repeal
Section 49:1-8 (relating to the is¬
of

contents

and

sub¬

(relating

Section 49:1-9

Securities

the

of

interests

certain

exempting

divided
the

from

Act,

Feb.

fective

Exchange"*

"Chicago

Stock:

WISCONSIN
Section

189.07 of the

Securities
fective

Law

[italicized]

ef¬

1953,.) (1) * by-

subsection

changing

Wisconsin

amended

was

14,

May

which

(15),

previously exempted the sale of
securities
another

involved

than; five

not -more
so

corporation
no

and!

of the entire issue is

distribution

tions,

one

is

offering

public

to

by

corporation where

corpora¬

also to exempt such

as

adding curities of

by

exchanges.

ef¬ transactions involving sale of

amended

1953,

underlined

the

un¬

certificates

or

was

12,

South

of

Act

Dakota,

those

of

names

to

Subsection 11 of Section 55.1903

amended effective March

1953

a

company

lan¬ corporation has

a

se¬

in which

a»

controlling in¬

action by the court for failure

obey

subpoena),

a

of

with

receiver

a

respect

sales against
the public interest), and Section
49:1-14
(relating to injunctions
illegal practices

or

illegal practices with
of the parties), and (3)

divided

interest

the

sale

by

not changed by

these amend¬

ments.

NORTH DAKOTA

^

A

MASSACHUSETTS

Winchester

1953,

July

the

from

separate

Securities Act of

require

the

broker

is

Oil

defined

to

in
1,

sale

oil

rights,

and

of

revenue-

any

with the Securities

for that

after

purchaser, is such

a

interest

for

labor,

machinery
a

well

or

mineral

material,

used
on

said

in

ment

notice

is

the

by

the

that

in stitutes

given

one

an

a

notice

Department,

dealer
and

■>

has

has

been

Securities

so»

filedl
ad¬

Depart¬

proposed sale con¬

it

exempt transaction

unnecessary

for

other dealers

the *to file additional notices regard¬

lease,

provided that no offer which may

ing

the

same

issue

of

revenue

bonds.

oil

and

gas

"any

mean

leases,

gas

royalties,

or

himself

for

inter¬

properties from

the surface holder
whether

mineral-

other

or

ests in oil and gas

MEMBERS

of

North

associa¬
tion, or corporation engaged in
the business of
buying for re¬

ESTABLISHED 1879

any

of

issue

an

co-partnership,

person,

F. S. MOSELEY & CO.

to

based

one-twenty-fifth of the vised

interchange
all

sell

to

1951, to

registration

brokers.

gas

or

royalties, ing

offered

royalty, oil lease,

drilling

adopted

was

effective

Dakota

Dakota

and

act

new

North

Manchester, N. H.

deed,

and

Stock Exchanges
(Associate)

Members oj New York and Boston

STATE STREET, BOSTON 2,

whole

all

certificates

or

sold

than

foregoing

the

The general nature

of the New Jersey Blue Sky Law
was

or

more

in

mineral deeds, where bonds in Wisconsin to file

interest,

such

upon

necessitated

interest,

oil leases, or

restraining

amendments.

land owner,
or

as

Underwriters, Dealers and Brokers
State and

Municipal

Corporate Bond#
and Stocks

Bonds

]

t*

agent

of others.

American Stock Exchange

OREGON

Exchange

Midwest Stock Exchange

The

following

Section 80-103

curities Law

Underwriters and Distributors

of

were

Subdivision

securities

MUNICIPAL

AND

amendments

of the Oregon

to

Retail Distribution in New

England s.

Se¬

adopted effec¬

tive May 12, 1953:

(1)

CORPORATE

stock

(d), exempting

listed

exchanges,

change

SECURITIES

"New

specified

on

was

Chace, Whiteside, West & Winslow]|
INCORPORATED

amended to

York

Curb

Ex¬

24 Federal

Street, Boston. 10

change" to "American Stock Ex¬

COMMERCIAL

change" and

PAPER

to

change "Chicago

Stock
BOSTON

•

CHICAGO

•

INDIANAPOLIS

•

WORCESTER

Exchange"

to

"Midwest

Stock
•

West

change," to reflect changes in the

its

SOUTH DAKOTA
NEW

was

shall

of $1,000, and no person

consent

NEW YORK

the

Stock

by changing

or

membership shall not exceed the
sum

"American

to

and

evidencing

whatsoever

charge

tions.

to make certain technical changes

Boston Stock

amended by adding

was

cified

ment

Investments

Exchange

3(e)

Virginia Blue Sky Law, exempt¬

irrigation Exchange" to "Midwest Stock Ex¬

or

under certain circum¬

association

Hamp¬

New

the

of

1

Securities

shire

to

New York Stock

Subsection

guage to read as follows:
terest and (2) by changing subsec¬
Section
"(11) Any undivided interest, or tion (20), which v previously re¬
49:1-13
(relating to applications
based
upon
an
un¬ quired each licensed dealer desir¬
for an injunction or the appoint¬ certificate

JilNVESTMENTS'K.

Milford

purchasing

keting,

to

Lowell

Public Util¬

"if the

onlv

curities

as con¬

offer to the general
be within this ex¬

WEST VIRGINIA

amended to exempt such se¬

was

specified information membership certificates issued by
a "schedule" of such
an
agriculture cooperative, mar¬
information.

mary"

to

Fall River

an

shall
emption

ities Commissioner
is exercising ing securities listed on specifiedl
Section 80.23, providing for
exchanges,
was
amended,
control over, or is regulating or stock
report of the commis¬
effective June 12, 1953, by chang¬
supervising the issuer thereof."
sioner, was amended to require
ing "New York Curb Exchange"
that the report contain a "sum¬
(3) Subdivision (k), exempting

poenas),

53

taining
public

annual

suance

American Slock Exchange

which

of

(5)

an

amended

registration of securities and

exempting reasonably be interpreted

(j),

issuance

the

securities
is

of intention to sell.

provide that, when applications

to

for

are

exchanges.

<2) A

in accord¬

registration thereof
effect, was amended to

ance

specified stock exchanges, was

.-•mended to
for

of Section

exempting securities listed

'-60.05,
4>n

(4)

within the state except

then

effective Feb. 25, 1953:

came

considered a
filing fee) in the case of a notice
$10 (which shall be

Impeding Capital Flow
securities."

all of the fee but

(b)

or

of se¬

registration

for

Subsection

(2)

but

all of the fee

(a)

$25 (which shall be considered
a filing fee) in the case of an ap¬

Exchange,"

to

reflect

changes

in

the

names

of

exchanges.

COFFIN & BURR

Purchasing and Distributing

INCORPORATED

State, Municipal, Corporation,

Founded 1898

Railroad and Public Utility
Securities

BOSTON
NEW YORK

HARTFORD

PORTLAND

National Distributor

BANGOR

NEW ENGLAND FUND

MEMBERS—BOSTON STOCK EXCHANGE
AMERICAN STOCK EXCHANGE
(ASSOCIATE)

MIDWEST STOCK EXCHANGE




f

Organized 1931

those

Phoenix Bank

Bldg., Providence 3

Volume 178

Number 5282

Continued

from

The Commercial and Financial Chronicle

...

23

page

for good, but there

gone

>'

able

,

traffic

diverted

been

The Positive Side of the Tracks

of

areas

artificial

from

rather

siz¬

are

which
the

have

rails

than

by

rational

factors. In those fields where rail

transportation holds the inherent
only 4 cents for taxes, other than

the

Federal income taxes.

sociate

To

speak

these things, I
emphasizing railroad problems, nor is it an appeal
for sympathy.
It is rather a pub-

submit,

<•

"■

about

is

depression of the '30s. To
the

sion, I submit, is not

not

ciation.

The

such

collapse

a

;

'30s—which

public understanding, so that the
Congress and our State legisla-

.

fect

tures

will

freedom

-

-1

the

us

as

problems.
talk with
side of

too

little

known.

I

own

experience

business
and

—

during

been

a

30

the

the

of

only

of

my

railroad

number

now

railroad

recount

been

in

which

need

years

which

officer.

advances

I

40

have

When

that

I

have

made in the art of railroad-

ing, I find them
to

oven

one

truly

the

railroad industry.
An

ing state of mind toward the
roads

as

investment

an

<f)iouna, I think, in
"'we might call

mot
J

to

they

as

causes

think
are

be, but rather

habit which

a

as

of

investment

from

to

into

go

condition

experiencing such

an

But

adjust¬

an

depression.

considerable

of

the

factors

are

ice

we

doing

are

pricing.

competitive
which

about

we're

lost busi¬

recover

doing this with

are

and

petitive pricing.
What
we
have,
is

serv¬

it

with

Something

will

you

hear

in the future is research

more

on

in

the

industry

an

What

have

we

also, is

Yes,

we

still

with

little

have

tracks

search
and

on

Re¬

part of the railroads

the

heavier rail but a

a

a

failures.

Most

people, I presume,

consider

rail

the

about

dullest and most undramatic study

con¬

dition than in 1930. Then railroad

The

surprise

in the universe. Would it

we

are

constantly

railroads, the steel industry
the

and

research

of

centers

universities work together on the

struck

exciting pay-dirt.

long ago

a

major prob¬

maintaining railroad tracli

lem in

the

was

they have

rail and

of

some

Not very

designed to

life and fewer

longer

provide

complex anatomy all

a

which

not problems

has

industry

steel

the

only produced

to make it still.

rail, which looks so-

working to improve.

resem¬

blance to those of yester-year.

would

indus¬

an

try in much better financial

of to¬

rail, the ties, the roadbed
day's

its own,

tracks. But the

use

ways

That

better?

simple, has

they have always dealt.

better section of rail,

then,

which

bonds, the same staples in

com¬

definite possibilities for growth.

detail

tendency

of rail to de¬

velop internal fissures. Transversefissures

they

were

times the name

called;

some¬

"rail cancer" was

future,

which

known should

which

add

and

factors

also

when

dispel

of

better

of the

many

and

not

forget that

goods. I do not

they will

been

taken

fact

the

in

railroads'

is

situation

in

that

C. T. WILLIAMS & CO.

financial
the

INCORPORATED

seven

1946-1952, capital expendi¬
totaled
$7.8 billion,

years,

INVESTMENT BANKERS

have

tures

while

funded

has

debt

in¬

not

United States Government and

of

the

that

has

railroads.

have

lost

is

Municipal Bonds

even.

Railroad,

Public

?

Industrial Issues

and

Utility
'

at Peak

BALTIMORE 1, MD.

FIDELITY BUILDING
this

With

are

mover

traffic

we

dollar.

revenue

require 41/2 cents.
Probably
the
most
dramatic

Physical Condition of Rails

to minimize

mean

from

what

of

railroads

mass

of

amount

Some

the

basic

the

charges required

the

primary consideration, let's

a

still

of

Now they

thinking" about the railroads.
As

about

fixed

1930

cents

11

at

prejudices creased, but has in fact held about
"depression

to

up

stood

it is about $8.5

In

to

These

progress

and

debt
now

railroads.

of

achievement,

as

during

We

ness.

time,

to

point out favorable factors in the

the

were

be

efficiency,

striking back to

in money, stocks and looking for

still dealing

applied to them because they be¬
$11.5 billion; you to know that there are top¬
deep
inside the rail and!
billion, and a flight scientists who devote all gan
As I said earlier, I would like lot more of it today than in 1930 is
First there
their working time to the study of spread insidiously.
short-term equipment debt.
in this talk to take you on a tour
Continued on page 74
that seemingly simple substance,
In
1930
the
fixed
charges of
of the positive side of the tracks.
the railroads were $693 million;
With this in mind, I would like
today they are about $475 million.

railroads,

nor

all

must

time

now.

the

they

af¬

with

of

advantage

slim in¬
can't always railroads

There

a

be

"depression think¬

ing." This habit
people

rail¬

may

gen¬

very

we

preconceptions

explanation for the prevail¬

along

boom.

are

we

the

amazing,

who has lived in

course

a

adjustment

business, about which

is

asso¬

a

would

course

ment is not

about the positive

you

our

back through the

go

and

here to

came

of

adjustments

I said before, I did not
Rather I

of

had in the

we

railroads

Of
in

live

as

industry—is

deed.

be enterprising.

here to speak about railroad

come

v

permit

the

other

Positive Side of Rail Business

But,

r

and

act

to

valid

a

likelihood

eral depression sufficient to cause

lie service to bring about a better

-1

as¬

railroads with depres¬

73

(2433)

1

additions
their

gigantic

belts, the railroads

enter

upon

period

a

of

program

capital
tinuing

to

can

of

expenditures

Telephone Plaza 2484

under

betterments

and

Private

now

reduced

while

realize—and

Bell Teletype

—

BA 499

Telephones to New York and Philadelphia

Branch

Office

—

Bell

con¬

in

—

National

Bank Bldg., Easton, Md.

Teletype—ESTN MD 264

many

increasing — the benefits
these
improvements. As a

cases

from

result,
best

railroads ai;e in the
condition of their

the

physical

postwar betterment
boldly
conceived and
executed, and conservatively fi¬
nanced with your help, has built

history.

The

program,

baker, watts & co.
ESTABLISHED

Members

York

New

1900

Members American

transportation plant unmatched
versatility and efficiency.
There is a
tendency in some
to

Exchange

quarters

Stock

Stock

Members Philadelphia-Baltimore
Associate

a

as

a

in

which

Stock

Exchange

Exchange

dom

the

railroads

static

industry,

regard

more-or-less

believe

But

fact.

Progress in

its

and

fill

would

Local Securities

is

*

Exchange (Associate)

me,

of

one

Active Markets in Local Securities

measured,

the

proudest

in the whole history of

chapters

technology.

CALVERT & REDWOOD STREETS

Direct Private

dwell

I

dislike

to

but

let me

cite

statistics,

on

BALTIMORE 3, MD.

to you

figures to prove

Bell

j

Philadelphia-Baltimore Stock Exchange

detailed

all

significance

Active Trading Markets in

Telephones: New York—CAnal 6-7162

—

the art of rail¬

it

when

roading,

Listed and Unlisted Stocks and Bonds

W.

Members

American Stock

significant progress sel¬

occurs.

Maryland County and Municipal Bonds

Clarksburg,

—

New York Stock Exchange

nothing could be farther from the

Government and Federal Land Bank Bonds

Representative:

Mead, Miller & Co.

for

Va.

the railroads

Baltimore—MUlberry 5-2600

System Teletype—BA 395

just

Carl

point. In 1952

my

of the five-

Ill E. Redwood St.,
Tel.:

business

they

it

moved

Baltimore 2, Md.

Bell

,

NewYork—WHitehall 3-4000

Baltimore—LExington 9-0210

period 1926-1930. In handling

that

Co.

few

a

originated 8% more

tons than the average
year

Wire to New York Correspondent

M. Loeb, Rhoades &

"1

Teletype—BA 270

;J

'

'

a

greater distance, so that their net

doing
NEWYO

BALTIMORE

£

•

Municipal • Corporate

every

cars

But

in

fewer

of higher ca¬

per

day,

increasing

speed

30%

and

car

train

their

their

train mile 65%, they

tons per

increased their ton miles per

This

125%.

hour

Securities

44%.

they loaded 25%

pacity, getting 80% more work out

net

Government

so

Utilizing

cars.

of

Insurance Stocks

increased

miles

ton

is

formance

kind

not

train

of

per¬

it

static;

is

1953

1853

phenomenal!
Dealers

—

Underwriters

—

Brokers

And

the

in

traffic

passenger

field, comparing the same periods,
we

handled

senger

John C. Legg A- Compan y
Established

is true

that the railroads are

still utilizing the
Members

of New York Stock Exchange

American Stock

tion

principle

Exchange (AssocJ

Philadelphia-Baltimore Stock Exchange

started
years

Direct

Wires

Cruttenden

French




&

&

basic transporta¬

with

which

they

in business more than
ago

—

cars

the
over

movement
tracks

SteinBros.&Boyce
Established

1853

120

of

to

trains of
Florida Securities

pas¬

more

miles.
It

1899

7%

over

miles, with 39% less train

of rail.

6 S. Calvert Street,
NEW YORK

Baltimore, Md.

PHILADELPHIA

Co., Chicago, III.

Company, St. Petersburg, Fla.

Crawford, Inc., Atlanta,

Ga.

But

that

doesn't

indicate

a

static

industry any more than does the
fact

that

investment bankers

are

Members of New

York Stock Exchange

Telephone Saratoga 7-8400
CUMBERLAND

LOUISVILLE

and other leading exchanges

J

74

The Commercial and Financial Chronicle

(2434)

Continued

from

battery of machines

73

page

bly

line

basis

to

on

a'ssem-

an

vantage of these assets,

the rail-

of roads are working to get more and

all

perform

the operations that were

The Positive Side of the Tracks
developed

was

the

elec¬

of

use

tronics to detect these minute fis¬
sures

that

so

removed

the

could

rails

before

be

tinuous

occurred. And then there

roadbed

and

Chemical

de¬

was

im¬

and

drainage.
treatment

brawn,

man

provement, with crossties, ballast,

failure

surface

investigation

formerly more utilization from their Dieseis
by laborious and costly hu- —to squeeze more miles of trans-

done

to

prolong their life actually started

pulling
cleaning

driving spikes to
tamping ballast.

and
and

1

have

I

ahm.t

ties

of

from

?n

in

has

talked

trant

at

tvnieal

are

and

what

of

are_typ

happened

length

some

rievelnnment«;

hAr-ancP

ffiij
hold

that
that

method

a

cooling

of

controlling the

40 years ago,

over

but experience

all

.

PP®

1S<

through the art of

of

Few of these

inS with the oil-fired gas turbine, a mere 52% above prewar while
and another builder, working with rail wages have been forced up
a number of railroads and coal more
than 150% and material
companies, is engaged in research prices up about 140%. They are

.

.

the

of Dieselization.

them enough, but they are paying
off.
They are helping us meet
Furthermore, one builder, work- competition
by
keeping
unit
ing with a railroad, is experiment- charges for freight transportation

oa

rai

case

accomplishments meet the eye and
we railroad men do not talk about

portation per month out of them.

jf in the development of a coalg.
burning gas turbine locomotive,
freshly rolled rail at and constant research have de¬
In the field of signalin., C. l.
Wbat this research will develop
rolling
mill.
It
had
been veloped
improved
methods
of
Centralized Traffic Control
found that quick cooling set up treatment
we do not yet know.
But it should
so
that
the
average has been a subject of much'inindicate to you we are not a static
stresses and caused minute hair- service life of ties has been
tripled. terest to your analysts. There have
line
fractures
to
industry. Even the use of atomic
occur,
which
Ballast has gone from cinder to been other major developments in
f>nergv for locomotive propulsion
vgrew under the impact of locomo¬
gravel, to
stone; and, lest you that field, including color light js
tives and cars running over them.
bemg watched.
think that railroading is a static- and position
light signals instead
f
,
. . .
.
Simply by slowing down the cool-\
industry, consider the investiga¬ of the old semaphores Dragging
ing of the white hot rails, these tive effort
put tQ ^
advarltageous use,
that goes
into even equipment detectors, which if disvised

Thursday, December 17, 1953

...

—-

-

~

~

,

enabling

to

us

compete

in

terms

of service, too.
Now, what does all this mean
to the investor? It means that
there is a dynamic quality in the
railroad
situation
today
which

has gone generally unrecognized,
Coming here is a railroad man, I
have spoken with no attempt at

*

stresses

eliminated

were

transverse
cooled

fissures

rail

in

practically

are

known.

took

the

of

research

such

seemingly

a

stance
a

as

to

find

solution.

the

to

And then there is the process of

A

hardening the ends of rail to
minimize batter at the joints, and
the process of welding steel
upon

Probably

railroads'

surface at

even

Likewise
from

sive
a

the joints.

there

research

joint

bar

for

has
less

a

with

deal

expensive

of

And

succes¬

there

is

experimentation

continuous

welded

rail,

are

has been the

same

there

process of con¬

Maintenance

the

most

impressive

foundation—their

today

with

unit

of

work

machines

performed.

tiple track territory
portion

our

track

of

period

on

a

maintenance

exclusive use,

we

for

cost

In

—

per

mul¬

turn
an

over

eight-

working day to
forces

train

a

for

their

in

matic

order

to

stop it;

interlocking

anathema

business

rpnrPapntinff

P1? because time does not permit

investment

idje

equipment

invp^tpd

auto-

railroad

at

the

the

to

And

modesty of railroad achievements
a
potentials. I have not, however' exaggerated the case. If anything, I have understated it, sim-

AU through-

are

funds is

the industry today you will a detailed listing of the things that
improved fjnd a concerted drive
against idle t}ave been done and are being
interlocking generally. And, also investment. We are
doing it with
in this field, not the least imporDiesels,
freight
cars,
passenger
n
believe that I am an
tant, the automatic flasher lights carSj maintenance of way machin- over-zealous optimist. But I am
and crossing gates, which offer a
ery and tools of all kinds.
We're °P>imlstic about the future of the
very handsome return on the cost applying
the same principle to raiIroaas and I feel that greater

crossings;

grade

much

and furnish

tion than
Our

of

reliable protec-

more

human

beings.
medium

earnings

great

is,

materials

and supplies—the goal
always being to eliminate idle in-

vestment.

To these tasks we are bringing ®
the scientific approach of transporinfected the fabric of public
policy
improved car, with greater tation research, or, as it is better
toward transoortatirm
a?
a
re
load and cubical capacity than its known," the
industrial engineerult
h official thinking start*
post World War I counterpart It ing principle. This means applythep«msetha
is difficult for you to notice the ing the same kind of precise anaroads h

the freight car, and
type of that ear today is a

s^rt oTdefeatist°pessimiJm ^

much

w?th

great difference between
of

car

30

today,

but I

can

assure

thousands

upon
gone

have

improve

the

thousands

to

cubical

freight

cars

sturdier

so

railroad advertisement,, we are
"evertheless a research industry,

capacity, today's
built
much

is a

are

afford

to

as

longer

a

pliers

have

Time does not permit a detailed

that

the

of

have

no

test-

ordinary

freight

which

car,

the research still

AND

place

are

apparent to the public. But

never

carrying

greater

riding

comfort

from

sleepers to

room

has'

RAFFENSPERGER, HUGHES & CO.

changes
in

Incorporated

Indianapolis 4, Indiana

Member Midwest Stock

investors,

bodies and by legislators in

suppliers, and

Exchange

that

many

who

rides
of

some

us,

builders,

car

ic

at lower cost, but

will

standards

the

meet

of

our

by

regulatory

our

the

farming

Con-

gress, and the various States. Ac-

I

the

say

combined

are

realized

not

a

that

the

railroads

static industry: that they

on

be-

have

half of the railroads Probably

apparent

passenger

why

researcb

are
seeking a way to build an
entirely different type of pas-

car

which I have attempted to briefly
enumerate come to be realized by

the Association of American Rail-

That's

their

'in

not

are

Right now
conjunction with

senger

I have said be-

fore that there is Potential growth

technical universities and colleges, come

berth

with

cars,

them.

in
20 North Meridian Street

the

to

even

alto-

the

and

open

resulted

that

been

out of research Problems by the tually, what I am urging here is
railroads and their suppliers to that sights he raised: that it be-

lng1Vcontr1olseaButdhaereCTo1)tlresearch

have

the

equipment,

transition

railroads

..

goes on.

famUiarwithftheUcheanaeUsCin,Dassenger

The

in

gether too modest in putting their
best foot forward. This attitude

roads, the constant research of
many

Corporate Bonds and Stocks

.

There Is Potential Growth
Railroad Industry

tests' Thhe?
0I? "^antly the lieve it to be true, i think it Is
r™* oi a11 the individual rad- equally important that these facts

changes ^ouds, the research conducted colin
the lectively by the railroads through

vast

taken

either

in the railroad industry and I be-

twelve to fifteen years.

discussion

and

'decides

Qr

must not prevail.

-

learned3 that

genera^repa^rs'froiu'sbf or^seven
years to

there

of

heavier a

having

right

that
^ Won't do any great harm to
give
them a few more
•

There is probably more research
the railroad industry than in
components any other. While you very seldom
)
see a white coat or a test tube in

various

addition
and

technical design:

that

you

thelaU-

nroblems

stops

into research to in

of the freight car.
In

freight lytical approach to our operating
that of me .hods as we do to questions of

a

and

ago

years

hours

lead

Municipal Bonds

_

ff"1 mor^ general optimism .about'
them not only is justified by the
realities of the situation, but actu-

course,

every

and they line up a

DEALERS IN

,

,

track

that has taken

faster, better and at less

a

too

in

service.

doing the bulk of track main¬

hour

rail,

traffic

developments affecting the

tenance

which eliminates rail joints alto¬

the

in

it

tear

place in maintenance methods. We

gether.
Underneath

and

from

—is the revolution

resulted

connecting

sections of rail.

good

an

weeks

Methods

it does occur

to maintain

three

railroad

of

Revolution

of all

as

in

wear

receive
years

steel to build up this batter when
so

which

sample stretch of ballast

same

would

three

a

prosaic sub¬ turbed
by
equipment
dragging
There is in Chicago frorri a train set signals ahead of

this.

machine

subjects

simple, doesn't it, but

lot

a

un¬

'

>

It sounds
it

and

control-

ex-

them which offers opportunity for

ceeds that of
and

the

expended

any

entire

tinental

testing

as

a

plant

investigation of

new

materials never

ceases.

bave

accep anee.

than

in
been

the

methods and

1,cw 1UCU1WS dllu

Characteristically,
change

quality

mistic, let

about

and

industry

evolutionary

rather

revolutionary, except in the

me say

too

opti-

in defense of

my

optimism that the railroads have
moved £ar in

their

progress

railroad

Lest I be considered

of

transcon-

laboratory where

1UVC^6«UU11

dynamic

a

other industry, growth.

railroad

this country serves

one

necessary

safety and win pub-

energy

moded
new

our

lifetime despite
*

pioblems

and

regulation;

despite
they

out—

have

a

look, and it is important that

investors

and

others

take

a

new

look at them.

Diesel Power

Perhaps

the

most

dramatic

change in the art of railroading is
the transition from steam to Diesel

The

power.

railroads

have

con¬

verted from steam to Diesel to the
extent

the

of

about

country.

75%

This

MUNICIPAL

throughout

major

-

formation in the motive power in¬

dustry

Our ability to render
constantly improved
service has brought about a
healthy growth

in

our

business.

over seven

revenues

ber

of

42%.

At the close of

only

a

a

customers

we

are

to

Even

in

water

was

serving

customers

Indiana,

widely

122,447

natural

in 66 cities and

diversified

as

born

gas

towns

to

culture and

though

of

Diesels
be

a

INDIANA GAS & WATER




(|)

CO.. INC.

is

BOND and SHARE

★

129 East Market Street

Indianapolis, Indiana

proving themselves

aren't

But the

tive

is

motive
for

a

A

highly

power

service

is

flexible

and

Taking

of

ad-.

"

'•

Participating Dealers 'i"Tand Distributors in

!

JPUBLIQ UTILITY

7

MUNICIPAL and
REAL ESTATE BONDS

its availability

great.

Telephone —Market 4321

MEMBER MIDWEST STOCK EXCHANGE

locomo¬

type

Corporations 7

Teletype —IP 298

the savings in

Diesel

•

INDUSTRIAL
m

contenting them¬

fuel and maintenance costs which

bring.

Indiana

RAILROAD

Bldg.

taking place.
are

selves with merely

Diesels

7
*

CORPORATION

com¬

constant changes,

good investment.

railroads

its Better... it's&A5

Diesel

ft77

INDIANAPOLIS

alone

experience and research,

have been

to

7

War II.

not

Stocks and Bonds of

in

Diesel power.

to

the

new,

agri¬

industry. We will be happy to
send you a
copy of our annual report
upon
request.

has

change

paratively

At the close of
1952, Indiana Gas & Water
and

the

been from steam

shareholders

have also increased.

Co., Inc.

accomplished

7f

remarkably short time, most of
But

serving increased

payments

been

it since the end of World

little

of operation, our
operating
have increased
147% and the num¬
years

Dividend

has

BONDS

trans¬

t

t

i.

'

[

Volume 178

Number 5282

.

.

The Commercial and Financial Chronicle

.

Continued from page 31

reach

around

the

world

by

The result of the

family fare traffic
uncler me

(4.25

was

the

cents

mile

a

the

doubts

compared

as

report.

witn

6.01 cents per mile) the im¬
of the growth of reduced
fare traffic can be
readily under¬

it

substantial fare reduction must be
compensated

by

reduction

a

passenger

mile cost.

achieved

only

This

cally at

and

not

in

the

of

matter

air¬

pricing

the

Ninth

Annual

General

tion

in

Montreal

in

"Take the

air

re¬

cally,

without the benefit of ad¬
vertised regular schedules. These

October.

capacity of

In

$600 for
In 1953, it

ing.

1945
a

it

Prevailing
to

the

is

more

sonal

affected

traffic

winter

travel.

If

sults

such

ties of the
duce

class

mind

these

coach

traffic, the

that

coach

traffic

necessarily i represent

gain

in

aeven

volume,

net

because

a

of

diversion

a

at

to

In

first

class

"It

early to

say

is

is

while
less

is

the

a

of

but

it

for

skilled

from

pro¬

or

caused

it

has

un¬

to

been

the

by

this

meet

reduced

The

fare

CAB.
over

route

competition

more and more

problem

is not

unique to the United States. These

the

in

were

last

Atlantic

introduced

May

and

on

will

In Table IV

for

Table

sults

the

of

1953

as

period

of

VI

six

However,

distorted
which

influence
the

oil

strike

the

closing

of

recent

tention

that

months.

We

in

American

compared

with

the

comparable

months last year.
With operating net now declin¬

ing

in

the

face

it

is

if

of

higher

clear

gross

gross

what

revenue

would

should

o'f.

should

be

made of the

T.

Harold

Bacon

(Associate J

H.

Sherburne

William

Robert B.

Fr wis

Leslie

R

Schanck, Jr..

Harold

D.

A.

Kerr

Krell

Bray

Wagner

Department of Com¬

that

fees

for

tax

be

the

charged
of

use

the

the

Evans

Spalding

year

important

earnings

as

excess

will

effect
of

most

not

on

the

prof¬
have

airline
airlines

Joseph M. Fitzgerald
Alvin H. Hayward

First

Office

in

paying

to

air

the shifting from the
to the CAB of the

responsibility
and

respect

of

administering

those mail

classified

as

payments

subsidy

as

dis¬

tinct from service mail pay. Con¬

JOHN J. O'BRIEN & CO.
Members

sidering that mail rates are fixed
by the CAB, this change seems
eminently fair. For inasmuch as
the CAB has the
prove

have

+ 12.8%

+ 14.5%

+

13.8%

+

10.1%

+ 19.5

+ 19.8

+ 19.4

+

19.7

+

21.9

+

16.7

9.3

+ 40.8

Net

S.

LA

authority to

subsidy

a

the

Second,

RANDOLPH

NEW

6-8161




ONE

YORK

WALL

DIGBY

STREET
4-0700

Sept.;

August

—18.0

—10.0

—13.3

17.5

+ 17.1

+ 25.0

+ 18.0

+

miles-

+ 21.9

+ 24.2

+ 16.7

+ 27.3

+

15.4

+

8.3

+ 25.3

+ 25.2

+

+ 26.2

+

23.5

Revenue

passenger

seat

+

miles

*13

domestic

trunk

25.0

29.4

+

—28.6

9.5

lines.

Table VDI

*15

Aircraft
(First

Manufacturing

six

months

1952

and

Companies
1953)

Sales
•

Net

i

%

(millions)

before

of

$2,091.3

$3,191.3

4-53%

$99.0

$182.7

-j-85%

taxes

sales

4.7%

Net income

$43.0
2.1%

%

of

% Change

1953

1952

sales

5.7%

+72%

$74.2
2.3%

♦Beech, Bell, Boeing, Consolidated Vultee, Curtiss-Wright, Dou¬
glas, Fairchild, Grumman, Lockheed, Martin,
McDonnell, North
American, Northrop, Republic, United.

ACJIL'Hand Companu
'

Incorporated

Underwriters

Dealers

•

Distributors

•

Since 1912

Underwriter CONCORD FUND, Inc.

Chicago, III.

FRanklin 2-8400

122 S. La Salle St.

New

44 Wall St.

York, N.Y.

Dlgby 4-0909
Hancock 6-4250

Boston, Mass.

30 Federal St.

Aurora, III.

Merchants NatM. Bank Bldg.

Concord, N. H.

20

Aurora 8624

Concord 2180

Ridge Rd.

burden

it

Bldg.
Rapids, Mich. Grand Rapids NatM. Bank Bldg.

Kansas

G.R. 9-3428

Harrison 3566

1016 Baltimore Ave.

City, Mo.

should

Lexington, Ky.

101-102

Madison, Wis.

Washington Bldg.

Milwaukee, Wis.

735 N. Water St.
517 N'West'n. Bank

Moline, III.

804 Fifth Ave.

Nantucket, Mass.

5 Center St.

Omaha, Neb.

740 First Natl. Bank

Peoria, III.

315 First NatM. Bank

Philadelphia, Pa;

Market Street NatM Bank Bldg.

Portland, Me.

415

Madison 5-9402

DAly 8-0936
Bridgeport 8611

Bldg.

Moline 2-5579

Bldg.

Nantucket 650-W

Bldg;

Spokane, Wash;

1017 W. Riverside

Waterloo, la.

410 Waterloo

Wausau, Wis.

Mueller Bldg.

Bldg.

Peoria 3-7486

Locust 4-5161

Rockford 3-8474

Gas-Electric Bldg.
401 NatM. Bank

Atlantic 2393

Bldg.

Portland 2-1926

Congress St.

Rockford, III.

Ind.

Lexington 4-4321

Exchange Bldg.

South Bend,

South Bend 3-9041
Riverside 8009
Waterloo 6604
Wausau 8-5217

ap¬

also

of

the

p4.
C.d4//yn d Co.

perimental

Exchanges

-

SALLE ST.

21.6%

+

ties.
CHICAGO
231

+

+ 17.4

income____

plane

Available

18.3%

miles_____

operating

Revenue

providing it.
carriage, on an ex¬
basis, of first class
ordinary mail (i.e. the 3c letter)
by air between certain large ci¬

Exchange and

Other Principal

+

expense

Minneapolis, Minn.

will not be subject to excess prof¬
its tax this year.

now

New York Stock

July

revenue

Operating

Fed¬

Administration

next

Post

H. A. Graver

3rd Qu.

Operating

Flint 2-3169

mail.

R. Edward Garn

Operations—1953-1952

6 Months

9 Months

Flint, Mich.

There have been two interesting

Albert J. Payne

VH

Comparative Air Transport

Grand

The

of

developments

John J. O'Brien III

North¬

Decatur 2-7186

an

Hartshorne

Table
*

National,

Eastern,

''
because mergers distort comparisons.

Delta omitted

Bldg.

The absence of the

Jay N. Whipple
F.

5.2%

""American, Capital, Colonial, Continental,
Northwest, TWA, United, Western.
Braniff and

4-42%

$23.9
6.1%

$16.8

305 Citizens

ex¬

throughout the country.

Ernest

Ames

east,

10.7%

11.8%

revenue

% of operating revenue

4-21%
4-33%

„

405 Genesee Bank

Aeronautics

Exchange

Partners

D.

operating

$34.7

Decatur, HI.

added element of

an

pense

its

John

before taxes

% Change

1953

$391.4
$46.3

$322.9

in airline operation result¬
ing from the recent recommenda¬

threat of

9

William

(millions)

Net income after taxes

at¬

airways, comprising the navi¬
gational aids and emergency land¬
ing fields operated by the Civil

Stcch Exchange

Stock Exchange

30th)

June

great decline in the third quar¬
(the best flying season) as

merce

York

Members

Stock

ended

ter

airlines

York

months

the

call

This mail is being flown at
sharply reduced mail pay rate
by the airlines participating in

Members of

a

experiment,
them only
space.

and

is

taken

when they have

by

excess

76
I

temporary

Newark

eral

Midwest

of

particularly to the fact
operating income shows

net

on page

period, viz.,

the

unfavorable trend

an

more

Continued
VI

tion

(JO.

j7nv><3sfmoz7f(3ccur*iYtes

New

%

during the first half of this
year, the data in table VII indi¬
cates

available show con-

are

Domestic Air Transport Operations

revenue

Net income

ing

Mention

New

figures

non-recurring factors only par¬
tially account for the good show¬

fall

Chicago

Operating

of

Airport.
Assuming nevertheless that these

revenue,

CD

1952

the

as

terms

re¬

months

these

and

Such fig-

included in this table.
ures

1952

smaller

by two unfavorable
had an important

the

on

not

employees."

shows

first

figures are

unskilled

compared with the same
ip 1952 in terms of net

1953.

are

table

have dealt with

we

income.

this

manufacturing

(C

operating trends, from total
revenue through the net
operating

happen

^3acon7747iipp/<3

^

the

a

service.

tourist fare

be

occurred

route

been opened
competition
tempting for an

reduced fares

that

the

by

more

by the injection of

period of profitless pros¬

Nothing

airlines

has

and

has

has
the

rates
within

on

important

every

country

airline

profit margins

the airlines will

rates

wage

events

scheduled

granted

more

and

Mean¬

that

the

years,

the

to

clearer

remains

decline in

in

the

be

of

carriers,

relief of the

pressure

structure

what

two.

in

in¬

and

As this structure has evolved

perity."
•

increases

these

of

competition

themselves,

has

for

the

ranks

too

coach

at

will

year

fact

that

demand

answer

be erased

facing

true

the

next

the

growth

product,

The

the

we

still

healthy thing for the the

It

stimulated

cost?

report

probably

categorically whether

a

airlines'

ran

year's

tremendous

airlines.

in

been

last

stated:

travel

end

Another

our

the

somewhat"

continue

the

traffic.
.

to

old

long-awaited
scheduled operators.

th^expense

from

the

spell

substantial portion of it has
prob¬

ably been achieved

up

the

up

creasingly obsolete equipment income before and after taxes.
We see from this a striking in¬
eventually has to be replaced, we
may
find that the difficulty of crease in net income both before
financing such replacements will and after taxes in the first half

does
a

gone

of

protest, perhaps
nevertheless suffi¬

operators
to
As their

of

Nine months'

available for all the companies

.

at

30%; of tin by 43%; and
pig iron has more than
Wage costs have also
ranging from a doubling

over

doubled.

from

see

aircraft

period

same

Table

first-

gasoline has gone

laborers

of

but

of

Unfortu¬

non-skeds always

We

the

industry has prospered in

cross¬

for

business and profits

before and after taxes,

months of this year

with

the

down to two-

level

the Civil

as

makes

business.

earnings will be serious.
point to be borne in

is

the

only

routes.

Board

storm

a

synthetic

Another

not

desirable

fly

vulnerability re¬
ciently potent politically to enable
substantially
reduced

factors for
on

to

the

airlines.

time to time to curtail the activi¬

tra¬

first

free

Aeronautics

this

in

effect

is

scheduled

the

nately such attempts

sea¬

the

as

is

travel

slump in the fall

than

are

most

opinion

coach

by adverse

influences

and

load

that

that

competitive thorn in

a

of

They

of

niieu;

industry

effect

ditional

be

can

by

be

flesh

six

1952.

that

He

stood

one-way

was

that

of

cost

to

on

many

these 80 seats

cut-

a

The

rate business in sufficient volume

the

DC-6 used by the same airline
class flights. How

first

out mail pay, to carry on

in

trans-Atlan¬

average

fare.

thirds

with

first

compared

stated:

tic

both of gross

Meet¬

class travel ($395); it was down
meals, etc.
It must
be achieved
principally operators, using for the most part more than 50% for tourist travel
by the increase in the number of military surplus or other second¬ ($275). As against this, the prices
passengers
caried per plane.
materials which go
A hand equipment on which the de¬ of all
into
•typical example of this is a DC-6 preciation charges are relatively production and operation of air¬
with capacity to
craft has gone up substantially.
carry 80 coach small, have been able, even with¬
passengers,
as
compared
the 54 passenger

the

ing of this world airline organiza¬

about

elimination of certain service
finements such as free

including

we

show the results of the operations
the aircraft manufacturers for

of

Transport
Association
(IA T A)
pointed this out in his report to

the

by

generally,

so

skeds," the airlines which operate
without certificate and, theoreti¬

be

travel drasti¬

William P. Hildred, Director Gen¬
eral
of
the
International
Air

call

to

the

influenced

air

time when the cost of

a

last

their product. One is the compe¬
tition
of
the
so-called
"non-

in

can

partially

have

lines

this

pay

unfair

be

erase

our

criticize

to

easy

would

which

.

To make coach traffic

„

expressed in

attention to some of the pressures

stood.
•e

is

It

pact

of international

those which go into air
transport,
has
been
steadily
rising.
Sir

past year has served to

class fare

nearly 30%

average first

policy has been to reduce the cost

commodities

Financing

low-fares

new

Manufacturing: In table VIII

next

April.

Aviation Industry Growing Sans

75

(2435)

New York Stock

Exchange

American Stock

Midwest Stock Exchange
Exchange (Associate)

73

Continued from page

will

be

decelerated

but at a somewhat

rate.

share

per

the

is

be-

great

leverage of the tre¬

sales

excess

is

this

the

tax
year

effect be

gress

the

on

ismall capital structures

craft manufacturing

effect

to

menting

such

reductions.

this point in

on

year's report

Com¬

we

the industry may experi¬
leveling off if not a decline

years
ence

last
said that "when
our

a

But

in volume.

even

after allow¬

margin (after taxes) has ing for this we believe the air¬
reached
a
point between iVi% craft manufacturing industry has
and 2%
of sales, as is thU case become, instead of one of the
today, it cannot be expected to go most vulnerable industries, less
the

net

lower."

any

increased

We

since

that

see

that

unlike

Again

the

it

other

guaranteed

the

"of

case

unchanged

of

of:

this

being

let

pects for

a

level

sales.

of

termined

pros¬

continuation of

by

This

will

high

a

de¬

be

of

government

manufacturers

some

as

than one!

to
of

which

that

guess

policy,
because while airline purchases
are an important part of the busi¬
ness

the chances of a
present
profit

ment

will

contracts

point

not

where

allow

Defense

the

tiate

they

would

adjust

the

or

after

Ames, Emerich & Co., Inc.
ESTABLISHED

1911

UNDERWRITERS AND DISTRIBUTORS

aviation

current

Danville

Chicago 3, Illinois

Cedar

La Salle

numbers.

a

St. Paul

.

Monmouth

La Crosse

Rapids

Muscatine

commercial

how¬

side,

noise control, economical

as

Eau Claire

difficulties

technical
the

of

that

fact

States.

and

.

Chicago

British

many

advocates
turbine

a

propeller,

and

gine

the turbo-prop.

called

lines'

provide

to the feed¬

answer

prayer,

it must be

transportation

But

time

of

the

before

economic

the

com¬

few years. As yet American manu¬
have

not

native

the

impressive growth in
performance of the

an

and

use

when

this

will

be

accomplished

but it would appear to be at least
five years away.
;
Local Service Airlines: The sit¬
uation

in

airlines

respect to local service
(formerly called feeder

lines) is confused and unsatisfac¬
tory
the

the CA^
struggling branch of
transportation industry is

and

toward

the policy of

this

air

as

well

though

mail

as

it

flies

and cargo.
Al¬
regular schedules

great when measured

against the

desirability of keeping the service
alive until such time

as

a

the

as

the

costs

to

of operation are so
require a substantial

industry

air

more

transportation

utility.

opera¬

and the benefits of
now

being obtained

tech¬

side

it

is

that

true

It is believed that the proto¬

of a suitable American jet
transport will cost in the neigh¬
of

$30,000,000

and

UNDERWRITERS

Corporate Bonds

—

DISTRIBUTORS

Investment Stocks

Municipal Bonds

that

the first plane to come off the pro¬
duction line will cost almost as

Equipment Trust Certificates

much

San Francisco

000.

And Other Cities

be between $4,000,000 and $6,000,How soon are the domestic

enough

planes

Specialist in Illinois & Wisconsin

Municipals

going to be able to buy

warrant

their

at this figure to
production by the

manufacturer?
t
^

Mullaney, Wells & Company

It is estimated that the airlines

have
the

...




a

of price which the present helicopter
is not able even to approach. To

en¬

it is merely a

airlines

1

able

at

commonly achieve this

This

these

New York

^

airport limousine. Before
helicopter can become the

or

again. The price of each
plane to the airlines will probably

■

*

the

The dis¬
mail subsidy.
It is believed that continuance of this service would
spite this
subsidy is more than justified
be adversely felt by the commu¬
jets are when the value of

type

1

cab

in

engineering
skill will eventually reduce the
high operating and maintenance
costs which are presently such as
to
render
the operation
of jet
transports
prohibitive
in
this
country. But what about the mar¬
ket?

•

regular airlines. For the ground
competition within these thickly
congested areas is often of the ex¬
pensive type offered by the taxi-

problems will be solved.

borhood

'

are

of

are

British airlines appar¬ tions as a
nities involved
testing ground for the
jet transport has yet helicopter is
the experience
appreciated.
for
operation
in
the

flying on
ently no
qualified

INCORPORATED

•»-

routes

States.

and

Much has been written about the

A. G. Becker & Co.

J!

operator

helicopters
entirely within
the limits
of
densely populated
urban areas can charge
passengers
at rates far exceeding those of the

unable

combination of

hours

landing

doubtless

r8cjj

An

whose

to

the

more

logged on any of
of helicopter in

military service.

when jets will

its

transoceanic

On

Established

type

same

transport

fuel consumption, adequate range

matter

•

been

the

er

There

in the New York

the introduction of the jet-

powered

nical

'

than have

long-awaited

witnessed

;

the

On
ever,

United

-i;

on

of the heli¬

some

operation have logged

begin to play an important role in
transportation in the United

great

-

them

scene.

costs and size of the market.

.

cost

for

We

use.

operations can be said to be
plane is
operations, suit¬
still
in
the
experimental stage. developed, whether fixed
fields, safe traffic
wing or
The ships used are small,
carrying
patterns
in metropolitan areas,
helicopter, which will give this
a
maximum of seven
passengers,
initial purchase and maintenance
branch of

Inc., New York

105 South La Salle Street

Aurora

have

air

facturers

jects of particular interest in the

able

Exchange

Eastern Securities

prolonged

understand that

It is only a question of time be¬
developed a fore engineering and production
turbo-prop
engine
suitable
for skills provide the helicopter which
Miscellaneous
i
commercial transport use.
More will prove to be the useful work¬
The
remainder of this report progress in this direction seems to horse of short haul air
transportawill be addressed to certain sub¬ hav^been made abroad. An alter¬ tion^Opinions
vary as to the date

for

—

appraisal of these

ket's favorable

stocks.

such

Member Midivesl Stock

and

any new

substitute

no

In some r parts of the
helicopter.
Its feats in Korea are not clear.
well known and its application to country these lines have been able
into commer¬
an
taxes cial aviation in this
ever-widening range of uses in to operate efficiently and, with a
country has
industry
and
agriculture
have reasonable degree of success both
advanced little beyond the con¬
made the public more and more financially
arid from the stand¬
versation stage.
During the past
conscious of this lusty infant of point of usefulness. However, so
year the American aircraft manu¬
the aviation family.
many things militate against the
facturers have not been idle from
Three airlines have been certi¬ economic self-sufficiency of short
an
engineering standpoint and
haul air transportation that the
to
operate
much thought, effort and money ficated
helicopters
within the metropolitan and sub¬ local service lines as a whole re¬
have been directed to the matter
urban limits of New York, Chi¬ main a highly subsidized group.
of a suitable jet-powered trans¬
Nevertheless the over-all dollar
cago and Los Angeles.
The New
port plane. There are many tech¬
cost of the subsidy does not appear
York line now carries
passengers
nical
and
economic
problems,

to

OF INVESTMENT SECURITIES

Direct wire

call the turn

to

is

relatively new copters in service

a

will

development of

there

constant

result the transport
helicopter must have a pay load
bination provides
greater range very much larger than those pres¬
than the pure jet and greater ef¬ ently
flying and must have a
ficiency at low altitudes. The gov¬ greater speed and range than the
ernment airline of Canada is plan¬ present models.
There are many
net profit margins in the aircraft
ning tp introduce into its service other technical problems which
manufacturing industry as well a
British built plane, powered by must be overcome. While large
as for the continuation of a high
turbo-prop
engines, toward the helicopters capable of carrying up
level of business.
end of 1954.
If a turbo-prop en¬ to 40 persons will soon be flying
This, combined with the gen¬ gine can be developed which is for the military, it is believed that
erous
yields offered the investor suitable
for
adaptation
to
the their cost of operation will still be
in
the
aircraft
manufacturing latest
for
commercial use
type of existing American- prohibitive
stocks through the industry's jus¬ built
transports, we may see this other than the type of the New
tifiably generous dividend policy, type of power plant in use on our York, Chicago, and Los Angeles
leads one to agree with the mar¬ domestic airlines within the next
operations.

renego¬

downward

net

the

Depart¬

v

Dallas

with

to the use of turbo-props
by our domestic airlines may pos¬
stockholder the full benefit of the
Jet: The development of jet for sibly be reached by increasing the
elimination of the excess profits military
use
has
continued to power of the turbo-compound pis¬
ton engine with which the latest
make
striking strides and jfettax.
Pleasing as such a prospect
powered
planes
of spectacular type domestic transport planes are
would be, it is believed that it is
now
equipped.
performance are being produced
too
much
to
expect.
It is our and
flown
in
ever
Helicopters: The year 1953 has
increasing

margins

real¬

considertthe

us

senses

continuation

ized?
First

said to be
"defensive" investment

a

more

Second,

in

profits
tax
What is the like¬

result

of good

making

excess

would be great.

lihood

many years.

in

1954, the favorable impact of the
absence

most
almost

is

turing stocks may be

earnings of aircraft manufac¬
turing companies. Were volume
of sales and profit margins before
remain

than

high level of activ¬
Thus the pur¬
aircraft manufac¬

a

ity for
chaser

net

to

to recession
industries and

subject

has

time.

airlines, the excess profits tax has
bad an important effect on the

taxes

that two years
airlines will be

airlines alike feel

and

ers

In the

over

so

the

now

which

fleet

relatively
of the air¬
companies.
Unlike the case of the airlines, penditure of defense dollars, there loans is not an allowable item of
there is no present sign of a fall¬ may be changes of emphasis in cost in government contracts.
It
ing off of profit margins. Actually military planningvbut it is incon¬ does not seem unreasonable to
ceivable that any streamlining of hope, however,' that if a substan¬
the opposite is true.
As the government is the chief military expenditures or change tial added expense is placed on,
customer of the aircraft manu¬ of military concept would be at the manufacturer as a result of
facturing industry there is always the expense of the development less liberal progress payments this
the risk that profit margins, nar¬ of air power. Naturally as we are will be taken into account in any
now in the midst of an air power
contract adjustments.
row as they are, will be reduced,
All factors considered it is be¬
and
through the provisions for expansion program the present
renegotiation and price redetermi¬ build-up cannot be expected to lieved that the chances are good
indefinitely and in a few for the maintenance of current
nation the machinery is at hand last
mendous

from

to

Thursday, December 17, 1953

...

These deliveries ex¬ plane

1955

Con¬ operating

of

functions

amounting

delivered

be

$300,000,000.

For tend into

profits tax.

it would in

so

usurping

it

,

Although the net profit margin

of

as

by
rewriting the excess
over $550,000,000. This would seem
profits tax into the aircraft man¬
to indicate that the transition from
ufacturing business. On the other
hand
the government may feel piston power to jet power would
have to be gradual to prevent the
are a very small percentage of the
justified in making adjustments
total
volume
of the
industry. which will result in some lessen¬ scrapping of hundreds of millions
of dollars worth of planes which
Surely there is nothing in the ing of the tax relief benefits.
will not have been fully depre¬
course of world events or in the
In this connection it is interest¬
ciated, even at the industry's rapid
political climate to indicate the ing to speculate as to what will
rates of' depreciation, until after
slightest likelihood of our im¬ happen if a change in progress
1960.
pairing the effectiveness of our payment policy necessitates great¬
In view of these facts it is not
defense preparations. There may er borrowing on the part of the
difficult to see why manufactur¬
be greater efficiency in the ex¬
manufacturers.
Interest paid on

after taxes is slight its impact on

^earnings

the

profits

excess

low

as

it did

if

Growing Sans
Financing

Aviation Industry
tinued growth

the

without

75

with

-cause

an$ Financial Chronicle

The Commercial

(2436)

purchased
last

two

equipment in
of

and

years

received
new

in

an amount in excess

$250,000,000. They have on or¬
piston-powered aircraft yet to

der

135 SOUTH LA SALLE ST.

CHICAGO 3, ILL.

TEL. FRanklin 2-1166

TELETYPE CG 1110

flying
_J

Volume 178

Number 5282

.

,

The Commercial and Financial Chronicle

.

(2437)
by the present operators would be

should

lost.

course

Corporate
most

Planes:

One

of

the

striking developments in the

In

1940

only

United

planes.

400

Since

then

has grown to 8,000.
of

corporate

the

companies

States flew their

second

this

Air

as

number

posed
the

largest branch of civil

today

10,000

executive

type

to

an

they

with

the

In

'

How

much

the

-branch of civil
due

to

taxes
ness
a

activity

question

and

the

of

means

this

quirements

mentality
5
,

.

of

through
of

companies set

up

lar

.

,

surface

to

re¬

from

the

com¬

those

as

carriage

of

de¬
peo¬

of air trans¬

case

ton-miles

in

but

a

small

purpose.

in combination with peo¬

or

cents

to

10

for

be obtained

cent

20

the

impossible

make

money

present equipment.
rates

is

Freight
right as a

all

supplementary filler of
the

in

And

planes

of

the

space

regular

on

pas¬

the

airlines,

simon-pure

lessee, coupled with

*

tremendously

but

cargo

not

for

the

carrier.

&

In two weeks the world will be

?the limited market for the planes

celebrating the 50th anniversary of

the

transportation, because these
a
direct bearing
on
any
analysis of securities, it would be
unfitting to close without a tri¬
have

X

a

the

holds
feats

to

Illinois

threshold

bonds

for

and
68

and offer you experienced, prompt service.

years,

investment
doubt

no

Continued

the

last

George

Ripley & Co., Inc.

-.

of

1933.

on

There

has

been

New York

of

still

formulated

New York

McDonnell

Its

from

fll

Co.,

Los Angeles

wily

1 ml

of

the

took

industry.
place during

preceding and the

The

Commission

fill#!

A

■

*1

has

circulated

proposed
ru a
under the 1933 Act and

Public

Act

Utility
which

Holding Com
designed tr>

are

do away with the

a^ony of wai^

How Shall We Amend the SEC Acts?ing for twothe
post~effeetivu
following

acceptance

of

the

and

Senate

Foreign
of

tee

tives

the
and

confer

House

As

of

would

Representa¬

representatives

general

of

determine

to

agreement.

probably

you

Commission

Commit¬

bp available to

groups

of

areas

Interstate

Commerce

with

industry

the

and

has

the

know

received

now

various

legislative proposals sub¬

mitted

by

the

National

tection

no

way remove any pro¬

from

presented

to

investors,
the

will

Congress

be

soon

after it reconvenes.
In

view

of

the

rities.

that

the

If

this proposal is

the

proposed

of

adoptevt

hours

of

waiting

Commission's

around

offices

for

fice,
me

it

would

be

premature

for

ter

of

to summarize it in my remarks

routine.

Sometimes

tho

Continued

on

page

Invest¬

Acts.

mitted
the

to

I

If

express

be

may

per¬

opinion

an

subject, I think that the

resentatives

of

your

modest

a

have

Central Republic Company

On

-

(Incorporated)*

rep¬

209 SOUTH LA SALLE STREET

industry in
legislative

shown

both

CHICAGO

good

ill

Homer

E.

OF

with

arrangement

an

UNDERWRITERS AND DISTRIBUTORS

to the public.

Capehart,

Chairman

of the Senate Banking
Currency Committee, the in¬
dustry's legislative program has

INVESTMENT SECURITIES

and

been

discussed

Senator

informally with
Bush, Chairman

Prescott

•

I

•

H. C. Speer

ESTABLISHED

Field

1885

CHICAGO
A,

—

La

Salle

St.

Subcommittee

NEW

YORK

Insurance and Banking. He
has kept his fellow Senate Com¬
members

informal

reached
and the
and

advised

discussions.

DENVER

the

between

industry

drafts of

DES MOINES

OMAHA

MILWAUKEE
ST. LOUIS

these

of

been

has

Member

Commission

on many

of Midwest Stock Fjxchonge

matters,

legislation

some

MINNEAPOLIS

Tentative

in principle

agreement

3

RAndolph 6-0820

Securi¬

on

ties,

mittee
So.

135

Building

Telephone

the

of

& Sons Company

are

being prepared.
Representative Charles A. Wol-

Chairman of the House
and Foreign Commerce
Committee, has been kept advised
verton,

H. M. Byllesby

Company

and

(Incorporated)

Interstate

as

to the progress

sions.

gram

have

stocks

—

Railroad

MUNICIPAL

prepared.

Office

of

of'

the

Office

Executive

advised

our

has

American Stock Exchange

drafts

have

discussed in detail

not

with,

been

pre¬

Philadelphia




—

or

cleared

The

NORTHERN TRUST
CHICAGO

by, the Executive Office.
Desirable

Changes in

Offing
I know that the game

—

Teletype

(Assoc.)

Some

New York

Bell System

discussions, but since defin¬

135 South La Salle Street, Chicago 3

Telephone Financial 6-4600

•

in

pared, the proposals have not been
Philadelphia-Baltimore Stock Exchange

FRanklin 2-7070

been

participation

itive

Members Midwest Stock Exchange

BONDS

President.

these

Municipal Bonds

STATE and

drafts

the Commis¬
sion, as an executive agency of
the government,
must clear any
legislative program with the Ex¬
The

Utility— Industrial

he

pro¬

a

As you are aware,

ecutive

Public

that

prefer to consider
only after definitive

been

U. S. GOVERNMENT

of these discus¬

indicated

has

He

would

bonds

Teletype CG 273-2860

Pittsburgh

—

Minneapolis

7>

ment

Companies. These proposals
are
largely concerned with tech¬
nical changes to the various se¬

isn't

of the last quarter, but I do
that there is

ing that

Representative
•

Hanover 2-1572

over

think

justification for hop¬

some

New York

15 Broad Street

until the whistle blows at the end

desirable changes,

¬

legislation still requires
orders which practically
the labor of
always
draftsmanship as well
as clearance
by the Executive Of¬ have been forthcoming as a mas¬

IB A,

Association

a

it will result in the elimination oA
several

fact

ordcr '
of

competitive bid for utility or pub
lic utility holding company secu

the NASD,
Exchanges,
and
the

Stock

the

which in

pre.v

comment

changes

A

wLi

sion.

the

11 117

in.

and

ent administration of the Commk

Hill Richards &

21

page

enjoys

collaboration

approval
in

evolution

both the

Ward

company

form

representatives

N.

Blyth & Co. Inc., New York

greater

This

dustry-wide

Smith, Barney & Co.,

form for the regis¬

a new

securities.

fcjr

proposed

tration of investment

Murray

hav

accomplishments t/
that score, plus som^

adoption

Donald

We

three

or

report

Act

good intentions.

William Barclay Harding

five

have been

as

yoa

interested 'iy*
•

pany

TV

bankers

most

Securities
two

for

the investor and

municipal

history

prophesy that aviation is

the

on

Being

Otis A. Glazebrook, Jr.

accomplishments to date it is

safe

Under

of

in

Marvelous

Senator
distribution

and

man

aviation

of

decades.
its

of

•

registration statements under th

Chicago

an appreciation of
necessity of keeping intact the
protection presently afforded to

underwriting

the

C.

ex¬

wide blue yonder.

are

Courts

Harriman

an

complished facts to visions in th
Red-

Courts & Co., Atlanta
Edward

engaged in

program

the

Since 1885
in

W.

also

are

judgment and

MUNICIPAL BONDS

specialized

Richard

nothing comparable to the

program

have

aviation

We

Hornblower & Weeks

imagination

presenting

We

of

progress

Co., New York

Auchincloss, Parker &
path, New York

of the economic difficulties

curities

.*•

/

high unit cost
planes to be financed and

;«f

stressed

Roger Cortesi

cial

bracket—

is

operator to

these

at

to

cent

the

with

mile.

half of this rate.

at

prevailing—it

now

ton

a

air cargo rates get down to

when

the

60 "tents

cannot

cargo

senger
or

has

th:

on

of rule changes.
These range all the way from
ac;

this

the fact that all planes in
freight is carried, whether

volume

the

for

reason

originally designed for
carriage of people.
People
carried at rates ranging from

Air

noted earlier in this

marginal character of

report

&

questions

your

rev¬

were

are

40

basic

Cohu

answer

tensive

Henry W. Cohu

to

1952, the dol¬

still

are

1946

report.
The

and

oceans

ar'1-

Program of Changes in Rules

Kuhn, Loeb & Co., New York

Flying has always captured the

annual lift of about

an

The

in

the

airlines of marginal credit. The
financially strong lines are able
to finance their needs without

^purchaser

span

doubt there

no

•.

Hugh Knowlton, Chairman

Com¬

I have

subject.

car¬

about

transportation,

great

as

receipts

ple,

The chief difficulty seems to
lie in the fact that the only candi¬

as

seem

the

amount

But in the

alone

As yet no great progress has been
made along these lines.

difficulty,

goods

times

which

leasing

are

of

enue.

instru¬

dates for such assistance

would

years

fraction of the airlines' total

or

for this

without

military air¬

about 250 million in

the

finance

recent

million

0

ways

plane

new

sound.

whole.

in

risen from

assisting airlines in

financing

able

portation, although air freight has

Much

thought has been given to

this

as

lies

Financing:

While

to

ple.

-asked.

Aircraft

planes

bute

rived

prosperity is
is frequently

which

the

mercial

aviation has been

and

of

four

heavy corporation income
and a high level of busi¬

*

business

impetus

be

80 %> of the returns from all

type

of

will

Revenues derived from

speeds.

growth

few

in

riage

from single-engined
holding from four to six
people to twin-engined planes of
J

of

COMMITTEE

continents non-stop.

somewhat problematical.

range

ranges and

mercial

speed

them

planes

varying sizes,

the

lifts which have served to sustain

457,000,000

airliners.

these

continue

the

over

corporate
investment of

the

than

today.

those
among
you
who
are
a;
familiar with it as I am and wh >

AVIATION SECURITIES

the

wing tips of a modern
bomber.
Today military planes
fly at fantastic
heights, faster

develop¬

can

was

tween

sensational

more

Respectfully submitted,

altitude of only a few feet and
shorter than the distance be¬

an

cargo

after

and

ments.

century ago achieved

facing the aviation industry, par¬
ticularly in the field of commer¬

to

approximately $200,000,000. Last
year they logged 422,000,000 miles
compared
ilown by

com¬

a

many

Whether

These

one.

planes represent

companies, mostly
former GIs, that
hopefully started

of

war

passengers or mail, largely
surplus military equipment
cheaply bought, few survive.

flying

by

airlines.

passenger

with

outnumbering the combined fleets
seven

primarily

business of

flight. The first flight
Wright Brothers at Kitty

the

Hawk half

fit of

aircraft,

of the commercial airlines

the

to

powered
of

carrying operations without bene¬

in the United States
approximate¬

ly

proceeded

scheduled

Of the 86

The operation
has become

are

has

adjunct

an

the

planes

There

re¬

Freight: The growth of air

freight

in

own

aviation and, as a matter of
fact,
in number of planes flown is the

largest.

and

occur

security of the plane
itself prove necessary, are factors
which have held up the develop¬
ment of such companies.

:last few years has been the growth
of fleets operated by or for private
business.

the

default

a

to the

77

Bell System

Teletype NY 1-853

-

CG 36$

78

The Commercial and Financial Chronicle

(2438)

Continued,

from

be

must

77

page

the

of

istered

How Shall We Amend the SEC Acts?

adoption

The

reported.

approach

the

of

than

—that

many

the state in which the issuer is

stabilizing op¬
eration is illegal if it amounts to
alleged

an

Thursday, December 17, 1953

subsidiary of a holding company,
if
the regulatory commission of

Commission has been—and still is

matters re¬
reports.
This

as

the

and

reg¬

less

broker-dealers

one-third

vices

give

will

form

new

...

ganized

and

does

business

*

or¬

ap¬

proves
the transaction.
We are
manipulation.
current
However, the Commission takes studying further possibilities of
considerably reduce both
the attitude that the industry is cutting out other regulatory pro¬
reoffering
by. underwriters
or shorter both the time required by your paper work and ours.
the issuer to prepare it and the
even the effectiveness of the postIn order to have a starting point entitled to the benefit of specific cedures in the issue of utility se¬
effective
amendment
is delayed time required by the Commission for use of the new form, so that rules on the subject of stabiliza¬ curities which duplicate the work
tion.
In
practice any proposed of state regulatory
until the day after the acceptance to examine it can be materially reports of
bodies
and
change will be related
which the Holding
of the winning
Company Act
bid.
Under the shortened. If such a plan can be to the simple form rather than the stabilizing activity is now cleared
itself'contemplates as eligible for
new
procedure, if two bids are legally adopted it will be possi¬ old complicated form, registered by telephone on a case by case
basis. I understand that this has exemption. We are not thwarting
received, no second order under ble to shorten the time schedules brokers and dealers will be re¬
worked out well. Those who di¬ the intention of Congress in any of
the
Holding Company Act will on such offerings sufficiently to quired to fill out one of the new
We are simply giving effect
rect our Trading & Exchanges Di¬ this.
be necessary and no supplemental make them more competitive with forms
on
or
before some fixed
vision operate on principles which to the words of the statute itself.
date in 195<L
filing will have to be made until private placement.
Do not for one moment
are
becoming
generally
well
get the
The adoption of
10 days after the closing. No sec¬
such an ab¬
known.
However, I submit that impression that our approach to
Revised Proxy Rules
breviated
form
does

quiring

would

1933 Act will

ond order under the

some

pose

price difficult legal problems. For ex¬
amendment will become effective ample, Section 305 of the Trust
automatically when filed— Indenture Act requires the pro¬
be

since

necessary

the

I

that

know

statements

proxy

and Form 10-K annual reports are
of

more

to issuers than to

concern

such

government of laws and is

a

job

that

rather

government of men

a

than

the

method of control is in ef¬

a

fect

is

by

within

We

believe

duplication,

un¬

work, and activities not

necessary

unsound in basic theory.

negative.

cutting

statutory responsibil¬
We have
analysis of investment bankers. You might
hopes that stabilizing rules can ity, we make available manpower
provisions.
It however be interested in what we
be
formulated
which
will
state to do a better job in carrying out
should permit final effectiveness may be necessary to amend this are doing.
basic principles on paper instead our prescribed statutory duties in
within a coupleJ)f hours after the Section to permit elimination of
The Commission has circulated
of in the brain cells of a compara¬ the protection of investors and the
opening of bids in almost all cases. this analysis. There is also a ques¬ revised proxy rules and has re¬
tively few people. After all, the public.
The proposed rule changes under tion as to
We hope soon to work out a
wjiat standard will de¬ ceived almost 150 comments, some administration of a regulatory
the
the 1933 Act will also confirm the termine
availability of the favorable and some unfavorable. statute should not be a matter of plan to tone
up
our
whole en¬
whether in

the

of

Washington

regional

spectus to contain

at any

or

offices.

an

indenture

certain

This

short form for a particular debt Among them were many construc¬
folklore.
(subject security. If the Commission pre¬ tive,
well
reasoned
suggestions
Under present practice there is
scribes quality standards such as and
to
criticisms.
These
will
be a lot of
thejr purchase of the issue)
paper work imposed on is¬
during the bidding period, and rating in a service or coverage of carefully considered in determin¬ suers in connection with applica¬
should generally clarify and sim¬ fixed
charges by earnings, the ing whether, and to what extent, tions for listing under the 1934
plify the registration®procedure on Commission might be said-to be the published proposal ftdll be Act of additional issues of an al¬
a competitive bidding job.
before
departing from the philosophy of modified
adoption.
You ready listed security or of rights
not passing on the merits of se¬ may rest assured that the present to subscribe to such issues.
The
Simplifying Registration Forms
curities.
Somehow we feel that a Commission is as much concerned information contained in
many of
As you know the Commission way
will be found and that a as any of its predecessors in using the forms presently required for
early in 1953 adopted a so-called simplified registration statement its statutory powers for the pro¬ such applications comes to us in
Form S-8 for the registration of for securities of the type indicated tection of the interests of
security other reports. We are about to cir¬
securities
offered
to
holders in respect of proxies for culate for comment proposals to
employees will be devised.
under plans meeting certain pre¬
Your
sister
organization,
the corporate meetings. We must rec¬ reduce materially the number of

Commission's position that under¬

writers,

scribed

standards.

Study is being NASD, has pressed

given to extending the availability
this

of

form

to

a

wider

employee offerings.

class

fication

of

tion

Serious study

of

the

brokers

of

present

form

and

which

effect

of

The Commission

simplified
statement

tion

grade

form
for

debt

of

registra¬

institutional

securities

of

pose

issuers

which file reports with the

or

Com¬

the 1934 Act.

the

registration

since

the

the

two

simpli¬

a

for

registra¬

dealers.

has

has

will

form which

creasing

It follows that if

1945

nine items.

tween

mission under either the 1933 Act
or

a

for

form

is also being given to the adoption
a

forcement program through more
efficient
and
better
coordinated

free to offer

are

The

been

27

in

items.

shortly

pro¬

contains eight

The difference
forms

be¬

assumes

significance

because

requirement that changes

in¬

of

ognize,

however,

making

is

curing

with

respect

to

any

hand

to

In

carrying

sion's

policy
work

paper

and

•

incidentally

the

staff

1751

TELETYPE CG

1399

SOUTH

LA

SALLE

Direct Wire

to

the

Corporation

our

—

up

being

now

public

which

comment

cuts

duplication between the
annual

The

10-K

Fi¬

with a
circulated

came

statement

proxy

10-K

annual

annual

and

report.

consists

report

ment

STREET, CHICAGO 3, ILL.

concerning the issuer and its

by

man¬

Henry B. Warner & Co., Inc., Philadelphia, Pa.

com¬

posal

any

the

new

which solicits

company

rules

our

pro¬

can

fulfill

10-K annual report

referring to the

merely

not

deprive the investor of
or the public of any

protection

information
the

proxy

most

for

since the

the

annual

in

statement parallels al¬

exactly

in

material

the

first

material

called

part of the

report.

The

10-K

change

also

tual

with

regard
of

sense

of

the

a

Commission

in

investment

of

commonly

known

capital, which

a

holding company
state

regulatory body

transaction.

time,

the

Up

for

the

to

in

of

in

turn

is

the

wh|ch

it

make

seeks
way

meaningless

the ex¬
Congress enacted.

emption which

and
can

an

duplication
Federal

its

in which

area

between

regula^Ty

be eliminated.

The
that

to be

seems

authority

applicable

of securities

by

will

to

utility

a

public

utility holding

Investment

exception.

are

no

com¬

Because

their importance as an investment
medium

is

growing

their

cause

fast,

so

securities

be¬

being

are

sold by so many with such enthu¬

siasm, and because managing and

advising such companies introduce
concepts

new

the

of

fiduciary

the

duty,

techniques required for their

Our

rule

company,

imposi¬

building and 'oan

even

panies

an

are

necessar¬

evolutionary stage.

Commission

issue day-to-day

an

the

re¬

prob¬

Federal controls—

or

effective regulation

competitiv^|Sidding

shall not be

sys¬

and

developed

required

you

other

associations.

is ily still in

proposal

If you

banks, trust companies, insurance

state

%*f,:

Commission's

which

in¬
pre¬

moment

a

every

has

tion of state

companies,

very

for

that

it

companies,

that it

with

from

lems

enterprises,

gathering capital

has

imposing terms and conditions

which

think

a

such

condition

on

effect

the

other

investing

present

of

exemption

an

granted

comply

approves

application

company

been

public
subsidiary of a
in cases where a

a

operating

an

mu¬

ing

of

by

the

cqmas

tem

quirements of that Act the sale of

utility which is

the

funds.
I
say
that because
expanding system for gather¬

recall

securities

very

responsibility

will

pure

saving change

paper

role

Act of 1935 to exempt from the re¬

This

monumental

We

sober

regulatory problem.

Holding

sec¬

Regulating Investment Companies

to

That

meeting.

guessing of management.

stop

state¬

proxy

ond

activities in the

our

sents

requirements of the first part

of the

than

Company

Utility

econ¬

omy

Public

provisions

the

of much

are

service to the nation's

more

in

exemption—a very ingenious

Under

punishment of fraud

vested

agement, and the second, financial

any

Scherck, Richter Company, St. Louis, Mo.

put out for

we

proposal designed to give

a

that

any

statements.

does

Office—Champaign, Illinois

and

think

we

in the promotion of
disclosure and the prevention and

increased recognition to the inten¬
tion of Congress expressed in the

nor¬

ment for its annual

ANdover 3-1520
Branch

by

so-called

by

Member Midwest Stock
Exchange
134

of

proxies under

UNLISTED TRADING DEPARTMENT

Federal

State Authorities

item report of certain information

DISTRIBUTION

CG

volume

Division

suggestion

the

of issuers—

must be handled

which

paper

down

cut

of two parts, the first an item

MUNICIPAL BOND DEPARTMENT
TELETYPE

to

required

mal

UNDERWRITING

Between

that, but

on

activities

our

panies,
Duplication

Last week

Commis¬

the

out

investigatory procedure. We are
not ready to make any announce¬
ment

regulation

the filings fewer.

and

prescribe the substantive

the

Chicago

forms dealing with that

subject. The forms will be shorter

corporation law.

out

of

Federal

a

rules and

rights of stockholders under state

lor

First Securities Company

under

power

rule¬

our

relating to the solicitation of
proxies does not give us a free

oc-

item

that

law

nance

statement

our

has

enormous

responsibilities

Investment

Company

under

Act.

simply cut out the necessity of fil¬
ing the
The

same

In

NONGARD & COMPANY
INCORPORATED

information twice.

Price-Stabilization

There

Question
We Assist Dealers

New Offerings

in

are

aration

of

of

prep¬

relating to stabil¬
prices in connection

offerings of securities. That
subject is, of course, highly tech¬
nical
so

and

since

difficult

to

and

the

has

of
'

Purchase
•

4

•

Sale of Businesses

sary

or

interest

may

rules
the

as

can

insure the successful

completion of these

opportunities by consulting

us.

neces¬

appropriate in the public
or

investors."
mission

prescribe

t

Mergers
You

rules and regulations as the Com¬

mission

''

(

stabilize "in contravention of such

MUNICIPAL and PUBLIC REVENUE BONDS

or

»

Securities

Exchange Act of
1934.
Section 9(a)(6) of the Ex¬
change Act makes it unlawful to

Underwriters and Dealers

Preferred Stocks

been

passage

V

the

or

Sale and Leaseback Transactions
■

prior

Negotiate:

Bonds, Notes, Mortgages

with

105 W. Adams St., Chicago 3, Illinois

to

Direct Placement Issues

rules

ization

process

for

the

Years

adopted

applicable

market."

protection
ago

the

of

Com¬

stabilizing
offerings "at

some

to

Since

public

offer¬

W.T.Grimm &

Co.

INSTITUTIONAL INVESTMENTS

ings

Telephone
DEarborn 2-6363




"

iCi /

Teletype
CG 385

are

almost always at a fixed

price, the Commission really has
no

stabilizing rules applicable to
offering. There

the normal type of
are,

of

course,

manipulative

certain

and

rules

deceptive

on

de¬

specialists

DIRECT

in

PLACEMENT LOANS

231 So. LaSalle St ..Chicago 4. III.
Financial 6-5265

•

the

negotiation op

SALE AND MERGER OF COMPANIES
714 W.Olympic Blvd.. Los Angeles 15. Calif.
PRospect 3809

I

Number 5232

Volume ITS

.

The Commercial and Financial Chronicle

.

.

(2439)

,79

offerings, involving electric,
telephone, and other utilities,

gas,

^

not at all

am

ings

Continued

the wisdom necessary
the findings which the

matters..

14 of that

Act,

overall

nomic

effects

and

panies

of

subject.

istration

Congress on
cannot in good

We

the

counted upon to supply the needed
capital.
In the postwar years the absence of an impartial political atmosphere was offset somewhat by

and

to

doze

in

big

our

red

that the admin-

Investment

Com-

the easy money philosophy

Act will automatically take

pany

facilitated

of itself.

eare

You

equity

have

dience

been

but

this

inflicted

been

thought

that

high

has

mon

in

the

you

are,

a

tail.

can

wor-k

approach

hope

only

specific prob-

to

conclude

you

from

that
we
are
going
job with a conscientious
appreciation of our obligation as
public v servants and with good
and

sense.

common

glamorous.

sense

a

indeed

"conscientious"

to

A

former

executive

staff

cerning

less

the

dominated

as

ad-

compli-

a

member

of

at the time

Sf"

Towlr^ok and"™eratS
°p®rar

ted at

than

happy with

agency.

Frankly,

is

concerned

our

,

match

may

areas

negotiation

the

of

raised
the

this

vigorous

capital

new

via

record

the
it

when

low

yield

is com-

last

these

In

debt

has

route.

been

ferings

From

to

the

rates

would

con¬

of

indefinitely.

first

half

of

the

industry has reached

our

year,

a

Continued

earnings

for

12 Months

%

Aug. 1952

Change

To

1953,

records

new

Preferred
Common

Total

be

added

the

$538

of

million

Administration

Eisen-

to

be

mon

,

...

r

A-

,

.

oi. aiscnarging

sponsibilities

that

the

Congress

commitment

stable

even

industry

is

in

a

to

be

re-

$1,984,770

$1,441,077

1,966,790
15,742

1,427,809
7,667

Divestments

2,238

5,601

$1,984,770

$1,441,077

_____

_

Total

us.

:
T
ZJlllIllUillUllllhllllillllillllllllllllllillitllillilllllliiiiiliiiiiiiiiitilUiilllUiiiin.

E

Federal

of

E taxes,

MARSHALL

CO.

•s

E
E
S

income

widen

~

US

WE MAINTAIN MARKETS IN
UNLISTED WISCONSIN SECURITIES

and

11.0%.

item

an

taxes)

to

over

STREET

MARQUETTE

TELETYPE MI 461
CHICAGO—Phone

RAndolph

a

SBontfo

income

which

no

con-

Public Utility

possible, increased by 9.3%.
However,
in spite
of its effect
gross
income and final net income
figures expanded by 11.2%

Industrial

Insurance

Utility
,

*"

Industrial

Municipal

Mutual Funds

and

institutional

ended June 30, 1953, predividends paid amounted
$133,000,000
while
common

to

E payments
8-8130

Public

Bank and

trol is

E months

$602,400,000.
A
figures were

were

year

=

$123,100,000 and $557,100,000. The
10%
gain
in common
dividend

=

6-5900

SECURITIES

mar-

establish

Federal

E
WATER

WISCONSIN

&

E ferred
=

Milwaukee 2, Wis.
NORTH

MILWAUKEE

13.4%, respectively.
E
Dividend payments by the elec= trie
utility industry continue their
= steady
climb.
During
the
12
=

765

Jfnatujlie4 fufnmled in *j4li

mitting the operating income (before

E gain

.2

THE

commended,

still Through aggressive application of

^jvej offer prospects of reasonable

gave

379,669

the

surpassed

particularly

170,422

445,491

Money
Refunding

a <:aDi,al venture that must, to technological
improvement in
make equity investment attrac- plant construction and efficiency
and by maintaining close watch
yield, commensurate with quality, over
expenses,
the
percentage
or capital growth.
Under unduly gain was held to 9.5% thus per-

sound, sensible, workmanlike and
siert jod

stock

relatively

a

890,98*3

186,829
____

New

economic, political and revenues surpassed the $6 billion
technological risks in a utility figure and by registering a gain
can

1,352,450

Stock
Stock

Purpose of Financing—

management's ability set in sales and earnings. For the
cost and load factors, first
time
in
history operating

stock

$1,441,077

Long-Term Debt

again

were

9 Mos. 1952

$1,984,770

Financing by Electric Companies

earlier

these

INVESTMENT
225

E payments was caused partly by an
E increase in outstanding shares and

^lllllllllltllllllllllllllllltlltllillllllllllilllllllllllllllllllllllllllllllinilllllllllllllf?

Jjfvidua^'issues.1'As
tor

than

more

10%

MASON

STREET

SECURITIES
BROADWAY 6-8040

*

available

dividends

common

by

EAST

it

increased

is

apparent

that

a
somewhat smaller part of
earnings is being mailed to stock¬

holders




in

checks.

\n Nebraska

With

struction

the

form

the

program

maintained

at

of

dividend

industry's
high

a

con¬

expected to

level

time to come, a large amount
equity financing will be neces¬

some

of

sary.

dividend

payments

to

be increased.

The
forth

accompanying
the

volume

table

and

sets

of

type

by the electric utility
industry for the first nine months
1953

of

1952.

and

for

the

same

total financing by the elec¬
utility industry amounted to
$2 billion and surpassed
the comparable period of 1952 by
1953

almost
a

37V2%.
68.2%

Exchange

|

Debt issues accounted for
of the total

common

amounted

while sales
to

an

active retail interest in:

UTAH

POWER COMPANY Common

SEATTLE GAS COMPANY Common
EDISON

SAULT ELECTRIC COMPANY Common

WASHINGTON GAS

424

tric

t.

Stock

&

ELECTRIC

COMPANY Common

period

During the first nine months of

>

Midwest

SOUTHERN CALIFORNIA WATER COMPANY Common

financing

of

We have
SOUTHERN

Financing

j

Members

Underwriters and Distributors

at¬

tract
this
capital are not only
expected to remain at high levels
but in many cases will probably

.

SMITH, POLIAN & COMPANY

Accordingly, where fair rates

obtain,

v

n!

be

for

22.4%

of

and

Omaha National Bank

OMAHA

Building

2, NEBRASKA

Telephone—JAckson 5065
Teletype—OM

180

—

181

9.8

+13.4

Forms of Financing—

the

common

884,066

-OOO's Omitted-

from

control

1,002,595

___

-f

+11.0
+ 9-3
+11.2

9 Mos. 1952

compared with the
12 months
ended Aug. 31, 1952.
For the 12 months ended Aug.

to

income

Total

Class

31,

80

page

Source: FPC.

concrete example of the risk in a comparable figure of the previous
or searching for new acchange in interest rates so clearly 12 months by 9.8%.
We want our contribution demonstrated this summer. AcornIn cost control the industry is

hower's

on

Aug. 1 952

accompanying table sets
composite statement of
and

*

pro¬

12 Months

Net

The

this

OOO's Omitted

empire

to the success of President

In

the corporate

are

portions meriting close support of

building
tivity.

stockholders.

respect too few

54% of the public utility
security

A and B electric utilities for the
12 months ended Aug. 31, 1953, as

re—

19%

versus

private place¬

year;

possible that managements who appreciate fully
of the large increase in util¬ that direct
offerings to stockhold¬
ity debt acquired during the first ers automatically involve the in¬
three quarters of 1953
may have vestment dealer in his normal re-"
been accounted for
by the rapid lationship with clients. The prac-:
change in interest rates and by the tice
of circumventing the services*
fear that

Earnings

revenues

of investment status

■

seems

growth of mutual benefit to consumer and investor, we repeat that
g more informed public opinion is

forth

suited

Commission

with

,

elevation

his

SEC

an

,

"Is^^Tend SSe
most notable. So that critical

by regulation as to eliminate the
element of risk, when in fact the

the

of

.,

.M

,*

was

some

Impressions have been created
by some commissions that a utility common stock is so protected

adjec-

the

or

policy that provided only limited
opportunity for new activity by the
not

funds, companies operating in states with a healthy rate
climate offer most benefits to the
consumers and are most in de-

dend increases.

wo-

resignation is reported in the press
as having remarked that he would
be

68%

bined with dim prospect of divi-

very

mature

accept

"sensible"

not

are

It takes

tive

ment.

in

which

counter-balanced

situations

missions need not look far for examples which refute their philos°Phy. }n the keen competition for

ot immediate dilution, the investor sure,
becomes more hesitant and dis-

Conscientiousness

man

jective

buying

at-

through
for

$6,022,300 $5,484,143
needed to the end that regulatory Operating Revenues
authorities will b e c o m e more Operating Income (bef. Fed. Inc. Tax) 2,112,375 1,912,794
Federal Income Taxes
(including EPT)
780,277
714,353
courageous in rate making and
Gross Income
1.332,098
1,198,441
levels obviously lessens the degree less apprehensive of political pres-

our

common

in

,

the basis

on

were

relying more heavily on equity ment accounted for 15% versus.
stringent state commissions com- financing during that year and 18%, and 20% for both
periods by
mon
stocks promise neither of placing less emphasis on the issu¬ subscription.
»• these opportunities with conse- ance of debt securities. However,
Of the common stock
financing
quent inhibiting penalties to the during the current year this policy for the first half of the
year, close
operating companies. Such com- has been reversed and more than to 60% was effected through of¬

com-" expansion

period

e close to 50% composite debt
ratio for the electric utility industl7 places the burden of financing upon equities which on
average currently are near the
highest level in 22 years. Although
equity financing at higher price

aggregate of de-

review

about

from

regUlat°ry

appraise the Com-

You

mission's

this

invest

to

Ad-

an

I

public

that

sophisticated institutional aversion

is

ministration is

its

in

measure

general philosoph-

a

ical discussion of the subiect

lcms.

the

available

stocks

which
As to
relatively

financing.

you

be in

figures

compared with 1951, we were
able to commend the industry for

tinue to rise

Ixcfange
would

yields

iarge

reason-

what

of

account

debt

financing,

tracted

should

or

in

interested

more

au-

speech

upon
you

ably detailed

patient

a

long

these

the

as

com¬

reports

period

In

61.9%, 26.3% and 11.8%, respec¬ effected under competitive bid¬
tively. In our Spring Report, deal¬ ding as compared to 43% for the
ing with the calendar year 1952 full year 1952; 11% was made

Utility Industry

eco¬

investment

assume

of

the

of

make

to

conscience
chairs and

required to

we are

studies

recommendations
the

of

preferred stock for 9.4%.

40

A New Eia for Private

Moreover, under Section

make

be

page

earlier

Act requires us to make in certain

*

jrom

possess

make

to

that human be-

sure

'

/
/

80

The Commercial and Financial Chronicle

(2440),

Thursday, December 17, 1953

...

/

for

Continued from page 79

generation.

power

civilian

of

mance

The
of

usage

ro¬

source

well

presented by authorities that
subject needs no unfolding

the

here.

Utility Industry

to

years

mated
lion.

be

to

1953-1955

on

in

excess

esti¬

are

of

$8

Atomic
In

curities

needed

expansion

to

this

finance

concluding

this

our

report

we

make mention that the wel¬

must
come

necessitates

probably have replaced

Energy

bil¬

The constant offering of se¬

demise of

an

competitive bidding olutionary development obviously
refers to the announcement made
policy destroys the flexibility of
long-range financing plans, par¬ by the Atomic Energy Commis¬
sion
that
Westinghouse Electric
ticularly in respect to preferred
and

common

stock issues.

In the

first full-scale atomic power plant

est

rates

we

experienced

several

corporate rejections of competitive

the

United

designed

to

States

Respectfully submitted,
PUBLIC

as

a

for

source

Warren

SECURITIES

H.

Crowell,

Chairman

Crowell, Weedon & Co.,
Los Angeles

Under Control

McDonald &

Theodore

'First

Company,

The

danger of this specific

heritance

was

President,

New York

Message,
end

Co.,
Philadelphia

James

&

B.

Webster

Securities

Harper

When this Administration

Oakland

M.

Byllesby
Chicago

San Jose

centive

lion of orders placed by the former
one to three

previously for goods to be

years

delivered this year, next year, and
even the yean after—all to be paid
when

for

and

vigorous

free

deter

development

of

a

tax

in¬

economy.

pro¬

money

This

its

initiative

and

In 17 of the 20 fiscal years from
for the payment.
1933 to 1952, the government oper¬
billion legacy with¬ ated with a deficit.
Conversely, in
any provision whatsoever for
only three of those 20 years did
payment now creates a most the
government live within its in¬

viding
out

delivered, without

ad¬

in¬
re¬

strictive

Administration from

$81

burdensome factor in
to

raising cash
government's
bills.

the

pay

These

C.

O.

D.

orders

must,

come.

So,

of

excessive

were

be paid for in addition to
all the current expenses
of the
government.
They increase the
problem of the debt limit as well
course,

and

Extravagance

extravagance

in

income

had

than

billion because the

been

overestimated.

Total

appropriations authorized
from fiscal year 1950 through fis¬
cal year 1953, plus those requested

agencies

per¬

well

are

the

in

1954

Truman budget, pro¬
spending which would

run.
.

vided

Others have

ing.

year

more

budgeted

than $11

more

financial in¬

heritance.

the

First,

out

past

20

the

income

those

in

five

years

is

deter¬

careless

spend¬

by

the

spending.

easy

Administration
cut

for

acquired habits of exceed
over

of free and
to

deficit of

was a planned
by the previous
Administration for us of nearly
$10 billion -for fiscal 1954, which,
it soon became evident, would be

government agencies is part
our

fiscal

entered office,

There

billion.

deficit

>

of

The

we

a

$9

in Government

habit

our

burden.

1953, in which

the difficulty of balancing the
budget quickly.

A

planned deficits
inheritance—

part of

a

tax

ended with

as

time, tax expirations
being written into law to

nearly $100

billion.

were

lower

income.

government

activities

necessary

to

see

that

ernment income

of

extrava¬

lion

annually.

gance and waste are eliminated in

would

this program

large

both

Third,
more

we

civilian
are

and

military.

trying to

have

develop

dollar-consciousness

on

have

that

efforts

in

and

incurred

under

would have been

we

recovered

might

well

from

the

burdens

Controls
The country was

cutting out controls—controls

throttled with

over

prices and

Company,

Co.,

Our 26

Reno
Sacramento

Santa Rosa

Stockton

Wallace M. McCurdy

Thayer, Baker & Co.,
Philadelphia

v; ■■A

WW'-

Ira

D.

Allison-Williams

Indcrtcriters. Distributors and

Company,

Minneapolis

Corporate. Municipal

Central Republic

Company,

Chicago

and Unlisted Securities

X

San Jose
Fresno

San Lull

Salinas

complete

las

coverage

Ventura

%'''
/v

"

''

,

'

'

\

;>;/

L.

Hill &

J. Bartii

&

Co.

Reed

Co., Cincinnati

J

Pasadena

_

\

8

Glendale
Los

Angeles

San

fastest

New York
Robert

Vegat

Santa Barbara

Robert A. Powers

>k:-

Obispo

Monterey

of America's

Smith, Barney & Co.,
70?

Oakland

San Franctcca

Bokersfield

James M. Pigott

Dealers in

Offices
provide

Owen

Diego

Redlands

laguna Beach

growing

Long Beach
Anaheim

area

Whittier

Joseph E. Refsnes

Beverly Hills

Refsnes, Ely, Beck & Co.,

Established 1003

Phoenix
Members:
Los

New York

Angeles

Slock

Slock

Exchange

Exchange

SAN FRANCISCO

•

•

•

San

American

Francisco Slock

Slock

LOS ANGELES

Exchange
•

Exchange

Richard J. Stern

(Associate)

NEW YORK

Stern Brothers & Co.,

Direct Leaned Wire* to:

SHEARSON, HAM MILL & CO., NEW YORK




•

First California Company

Kansas City

PRIVATE H IRE COSSF.CTIOSS. BETH EES ALL OFFICES

Incorporated

Members

John W. Valentine

SCHERCK, RICHTER CO., ST. LOL'IS
.

White, Weld & Co.,

San Francisco Stock Exchange
Midwest Stock

Boston

Theodore H. Wegener

Wegener & Daly,
Boise

300

Los Angeles Stock Exchange
Exchange

Montgomery Street

Prtoatm Wiro to Now York,

so

never

thus piled on us.

the

both in and out of uniform.
our

by almosf $8 bil¬
deficits that

The

been

Eur.ka

■

By

continually 1955, when they planned for gov¬
every activity of govern¬ ernment
spending to reach its
to see if it is actually neces¬ peak,
planned
tax
reductions
Second, we must continue to would have begun to reduce gov¬

All

Willard A. Lynch
W. C. Langley &
New York

'<>.

At

same

must

we

Robert L. Holt

Sacramento

It is staggering because of
equalities
and
deliberately
provisions, which, in
dition to the very size of the
program, inhibit growth and

came

part of all government employees,

Philadelphia
H.

field of

one.

years.

cies,

Corporation,

Harper & Turner, Inc.,

Garfield 1-4460

staggering

a

year

into office, it found about $81 bil¬

government

Corporation, New York

4

inheritance in the

taxation is

the

The C. O. D. Orders

review

Gail Golliday

FRANCISCO

dollar's

It is staggering because of its
1954 the
might well size, due to inherited obligations
exceed the existing debt limit.
and the deficit financing of recent

sary.

New York

SAN

fiscal

before

full

a

The Tax Burden
Our

Union

the running of indispensable agen¬

The First Boston

STREET,

that

stated

the

of

the

of

expect

worth for every dollar taken from
them to support their government.

total government debt

ment

Drexel &

Charles C. Glavin

SUTTER

and

serve

in¬

foreseen

State

same

sav¬

review

Thomas S. Gates, Jr.

111

wealth but from the toil and

ings of American citizens who de-

by the
only two weeks
office last January,

taking

the

in

mined

Henry Herrman & Co.,

lar the government spends comes
not from some mysterious pool of

who,

after

years

William M. Cahn

extravagance are based on the
simple knowledge that every dol¬

it,

this limitation in the meantime.

This

Stone

do

without
technical limitations on planning
and carrying out the best possible
fiscal
policies.
This still holds
true, and we are being hurt by

extravagance

Hallgarten & Co.,
New York

Investment Securities

should

form vital functions and

Company In¬
San Francisco

Elwood D. Boynton

ELWORTHY & CO

should do at the time

we

we

Some government

Birr, Jr.

California

corporated,

when

of the burden of

Cleveland
H.

ing what

some

Theodore L. Bailey

con¬

of heat

SERVICE

COMMITTEE

specifically

substitute

ventional fuels

type central stations
change will, from neces¬

sity, be gradual.

has been selected to construct the

rapidly changing markets occa¬
sioned by the adjustment in inter¬ in

of

present

—but the

the

of

many

of Federal

era

investorattracting rate structures and flex¬ regulatory impediment marks the
coincident birth of a new era in
ible financing plans.
The experiences of the year for- power generation which in time
tify the position of this committee may render obsolete the present
in its stand that the rigid struc¬ power facility structure. This rev¬
ture

Getting Federal Budget

The question naturally arises as
what effect the completion of

—

three

19

page

the

Westinghouse plant three or
proposed financing proj¬
the IBA committee now engaged
four years hence will have on the
ects
which would
have had a
an that study.
present day electric utility.
Cur¬
chance for completion on a nego¬
To leave the electric power tntiated basis! Subsequently the SEC rently we can see no radical de¬
■dustry for a moment, financing
parture from present operations—
.data in this report of course do granted exemptions from compet¬
other than in the thermal or heatitive
bidding on several issues
not include the current American
producing unit. Transmission lines,
demonstrating
thereby
a
com¬
Telephone offering to stockhold¬
mendable
understanding of the turbines, etc., will still be re¬
ers, in the usual Bell pattern, of
quired. As to the thermal unit
$600,000,000 of 334% convertible problems involved and a willing¬ itself, it has been estimated that
ness
to consider each case on its
•debentures, again establishing
a
this portion of an electric utility
merits.
It is the recommendation
record for the largest single corof this committee that the deter¬ system represents only about 17%
|x>rate offering. The independent
of the total investment.
For the
mination of the most beneficial
telephone companies, although ac¬
entire country this 17% represents
and economical process of financ¬
counting
for only
18% of the
a gross book value of some $3 lk to
aiumber of telephones and
10% ing should rest in the hands of
$4 billion.
While this figure is
•of
the
over-all
investment
in utility management and that the
Securities
and
Exchange
Com¬ large in itself its relationship to
plant, have entered the market
total utility plant investment is
mission restudy the question on
for expansion funds at an increas¬
the merits of this premise.
We relatively minor.
ing pace.
In its advance to cur¬
The electric utility industry has
were happy indeed,
with the an¬
rent record high operating status
been doubling in size every nine
nouncement by the Securities and
credit should be given to this in•dustry
for conducting a
well- Exchange Commission on Nov. 25 years since 1930 and the trend is
that that body has under consid¬ not
changing.
Accordingly the
organized.
effective
educational
eration a proposal to amend Rule new facilities that must be built
program which contained the co¬
U-50
under
the
Public
Utility just to keep up with demand pose
operative encroachment problem
Company Act of 1935, a gigantic construction and fi¬
in the telephone field to within Holding
which requires, with certain ex¬ nancing
program
in themselves
reasonable bounds.
ceptions, competitive bidding for and one that will probably rule
the purchase or underwriting of out wholesale substitution of con¬
Competitive Bidding
securities issued or sold by regis¬ ventional units. In time—20
To extend the growth of the
years
tered holding companies and sub¬ or
so
those
units
which
are
electric utility industry, construc¬
powered by atomic energy will
tion expenditures budgeted for the sidiary companies.
bids

from

of energy has been so

new

A New Era for Private

Continued

this

•

San Francisco

Chicago and other leading Eastorn cities

Volume 178

Number 5282

.

.

The Commercial and Financial Chronicle

.

J

with all

wages,

of direc-

manner

tives and directions issued

by bureaus
and boards from Washington, affecting, restricting and directing the daily lives and activities of every citizen and family in
the land.

Big

reductions
can only

in

spending

This

time

and

savings accounts, in insurance, or
strong economy here at in
retirement, fraternal or pension
We must balance the cost plans.
of military security with the abilThe
Administration
is
deterity of a strong economy to pay the mined to halt

work

and

bill.

from per-

takes

too

planning,

tremendous

and

further

In addition to and overshadow-

ing all else was the grim conflict
in
Korea,
taking
the
lives
of
American boys in a stalemate that
had

been

dragging
endlessly,
but
not
bloodlessly,

hopelessly,
and

on

for

on

horrible

nearly three long
for

years

almost

every

home

in this land.
The financial
burden of Korea alone piling deficit on deficit, debt on

debt,

tax

tax, built

on

and

commitments

up

to continue for years in advance.

These

were

financial

facts

heir

to

and

addressed

of

some

the

which

to

which

the

himself

hard
fell

we

President

when

he

took

office.

What, then, is this Administration's record of progress in the 11
it

has

been

working
ward the accomplishment of
objectives?
First:
ward

We

are

on

our

the budget of
Government under

trol.

It

is

the
con-

no

easy task, and canrapidly accomplished.

not be too

The major reason why it is extremely difficult to balance this

budget
like

as

rapidly

as

we

that

is

about

70%

of

is, for

foreign

our

atomic

energy

nfade°uD
a?e,l{P

of

;.

the

our

and

About

programs.

flxerfcha^^^intprelt
d.
?'

mu-

lefvet oflv0?2^1Xteo ^Tor
iJti **P™yJ.w 1°
cost

of

all of

the

rest

the

of govern-

eight

to

cause

it

such

is

large percent-

a

age of our total expense.

We

cannot

cutting these
ing

it

swing

if by

expenses

in

do-

so

affects the security of

our

country.

penditures
two

be

can

First,

ways:

made

by

in
in

has

operations

only

in

eliminating

eliminated.

and

can

saving,

and

over

A

be

relatively
only

can

some

new

a

must

be

little period

ex-

spirit of dollar-

become

fective

as

military
and

more

time

personnel

goes

...

the government can
combination of some
of the three.
We

have

hope

or

not

its of its economy,
Third:
This
Administration

two

n.earl3r

abandoned

effort

balanced

early

an

inheritance

ob-

ligati0ns

for

years make ^is
balance

and

present

goal of budget

that

one

detailed

Only

work

by

and

and

nearer

35

whenever

can

to

nearer

we

it

and

objec-

our

fast

depreciation.

history

But,
shows

the early stage of currency
depreciation and inflation always

is slower than the latter part. It
is high time expenditures must be

We had

$9 billion

a

deficit

for

the fiscal year ending five months
after this Administration took of-

If

had

we

deficit

ministration
ministration

cal

accepted

that

the

not

the

past

$11
Ad-

olanned for this fisplanned for this fis

year we now are in;

do

reduce

the

and if

deficits

we

that

would surely result from the plan-

ning of the previous Administration

for the years ahead,

the

re-

suits would be disastrous.
The solution of this dilemma
,

.

,

is

.

most urgent problem.

a

It

froTitsTthe
sitive balance of

means

objective.
We are seeking
sound, honest American money,

<3£2) <3£S>

as in all other fiscal and economic policies which have a bear-

(2SS2E) SSSE).

CO.

a

care and caution and we must ad-

just

operations to

Los

Angeles

4

LOS
VAN

5

SAN

STREET

NORTH

55

Direct

)

|
]

Private

CORRESPONDENT

HONOLULU, T. H.
(2sS>




the.

for

our

the

:

profits

personal

in

Stock

Stock

JOSE

taxes which

ed
are

nec-

But

taxes

'

*

in

be

Korea J

are

ended,

1-l.

at least for
x

_

•

a

ing,

sound

and

substitute

re¬

C°".fr°"t US'

"

beinS revised to

centive,
j

„

g

under

of th

T

.

.

.

down

the

icy hill.

an

brake,

If you slam

spin

you

around

They

""

„

cannot
as

we

b

t

afford

much

as

would all like
t

we can

Auction

are our

.

as

.

give

reduction

objectives.

progress,

alternately apply the brake
a little, then release it a
little, and
feel your way, bringing pressure
you

^adUsady un

have yet far to

pride

in

the

past

t

modest

a

thi

rapidly

re-

financial
,

.

.

_

first step toward accomplish—

a

peace

May Divine Providence guide

ess

and

toward

ever

peace

and

had failed
of

livincf

to

keep down the cost

Tw

..

as

.

.

we see
...

gi

(|

OFFICES

MANILA, P. I.

^
(S^)

s&

ua
u®

them and act vigorous**

™ ana act vigorously

.

e curbing mi- with fear

y

favor for

or

none,

you fmMly come

holdings for

a bond of six years
maturity instead of the usual oneyear
certificate.
In
April
the

since

October

September

Orders executed

PACIFIC COAST SECURITIES

a

offered, and in
cash offering of 8made.

was

In

Decem¬

billion of 5-year bonds

Underwriters, Brokers and Dealers

issued.

so

our

debt

man¬

little

Industrial, Public Utility, Railroad Securities,

far in 1953 has been to

State and

huge

a

Pacific Coast Exchanges

on

was

new

a

bonds

In

1945.

¥2-year note

so

inherited

or

Municipal Bonds

increase in bank

no

deficit

without any increase in in¬
pressures

due

to

that

Schwabacher

Ownership of government

New

while holdings of
Federal

and

the

from

months of this

a

New

York

Stock

banks

Exchange

Stock Exchange

York

Cotton

commer¬

Reserve

half billion dollars.

14

—

American

dollar

power

Wall

upon

who

This

has

the
have

York

Street

is

a

been

a

matter

millions
saved

of

of

Exchange

N. Y.

Teletype NY 1-928

Montgomery at Market Street, San Francisco, 4, Calif.
1-5600

cold

hardship

Americans

money,

Produce

Exchange (Associate)

New York 5,

Private

cruel

Exchange

dropped

1939 to 52 cents

tragic record.

This

New

—

Stock

Chicago Board of Trade

Fresno Cotton

Sutter

and

—

COrtlandt 7-4150

100 cents in

1953.

Francisco

San

—

iAssociate)

Exchange

Commodity Exchange Inc.

The

purchasing

$ Ca

Members

American

the first nine

Fourth:

,

give

February owners of $9 bilmaturing certificates were
given the chance to exchange their

dropped

^

our

,

craJed fkr?ugkout the world,

.

°f
sugges e , need
con 10 s were 1 ®

our

and may even

pressures

.

ing the real and lasting

are

u

,.

be

consistent with

indicate that they

result ilk

can

Korea to dissipate anxiety for
sons It will also help to relieve

pro-

reductions

as

peace

In

STREET

W

few

t

If only real

start

lion

cial

13

reall

far enough already to

are

us

are

smasb into a telephone P°le. As
m
almost the strength, the wisdom and the
you W,?U kn°w lf Properly done, as soon as we assumed office. They courage to realistically face fact®

year,

14

and

immediately, months of effort and real hope for

j-A

a

permanent

good start toward sub¬

are a

stantial

piop-

further

ductions

"a

a pattern of re- greater things to come,

which

on

peace,
reconstruction for

accomplishments

er committees of the Congress. We go, but

on

and

Our

undertak-

Treasury and the

come

These

in-

and

last-

equitable

Co"clusi«n: This then was our
inheritance of fiscal burdens acomulated over 20 years

inher-

remove

and

constructive settlement.

'

joint

a

may'

it

defense

The entme tax system, however,

.

1S

every
a

destruction in that war-torn land.
It is our fervent hope that out of

wldTconfronrus* ^ da"gerS
™

•

_

being, and the tension i»
the homes throughout America is

J"

further

>

Shooting and bloodshed

the time

inherited

can

more

on.

Korea:

growth
This nation can-

we

banks, in fact, increased by $4 bil¬

Exchange

DRIVE

Wires

to create

power

more

Opportunity is the rightful heritage of our children. It must be
protected and guarded and hand-

office.

securities by investors outside the

Exchange

BUILDING

FIRST

a

this world before.

possiAdminis-

are

this

been

people, for higher
and higher standards of living for
all, than ever has been known in

continued

economy.

security

in
J

fm*

pssarv

essary

^°,9S'

of
CANON

position of each succeeding
generation, that all taken together

holdings of government securities,

BEVERLY HILLS
NORTH

in

Additional tax reductions
desired by everyone and are

like^topping anTutooMle^oing

and

ANGELES

NUYS

advance his children, and improve

able to cut government

was

lion

MONTGOMERY STREET

275

only^because

m exPenditures

with

Secondary Offerings

Stock
Exchange
(Associate)

Jan. 1

always respond to changing market condiour

agement

Industrial Brokers

Francisco

cut

on

invention—

the

The

ing upon the value of that dollar, will promptly be made, with
But we must approach it with vision for additional

were

San

YORK

10%

effort—con-

million Americans, each for himself striving to improve his lot,

spending by billions of dollars in

well

3

Exchange

j
\

single objec-

a

that"

cause.

WALL

but

work-

are

tive in plans for our debt management.
We
have
never
changed

MEMBERS

NEW

the

fact.

excess

ited obstacles to growth

We have had but

flationary

40

we

finding and maintain- Treasury offered a 30-year bond,
fhe first marketable
long-term

Investment Dealers and Brokers

FRANCISCO

and

income taxes

sen-

our economy,

goal is clear and

finance

SAN

must

becarefulnottodislwate the

The net result of

Distributors of Primary and

tax

the

opportunity

by
and

work

things for

simple

of

maintaining

Our dollar has depreciated half We will continue to seek it in our
15 years, handling of this too huge debt, as
important,

oneself

has

this

government

chance—the

a

better

ing

about

than the

—

achieve since last
January.
Let there be no misunderstand-

per-

of its worth in less than

SUTRO

407

conditions

SS?

tive.

is

will

as rapidly as possible we duced
only as expenditures are
moving more of the debt further reduced.
And
expendiaway from the banks and into the tures can be
reduced only as conhands of long-term investors.
sistent with

our

continuous

so

these have made America great,
It is the collective effort of 160

have been possible except for the
reductions in spending which this
Administration has been able to

elimination

believes

do for him. Competitive enter-

structive

mit, and

a11

we

effort

eventually accomplish

more

which

Administration

to take
to

Dec. 31 would not

on

J

ber, $1%

American

our

^be debt by placing longer term

be

cannot

acWeved aS rapidly
wish.

future

Since 1U58

Stock

to.. make

reductions

we

oTtremendourspending

That

tax

re-

gloomily

prise, free initiative—the courage

are

.its first few months
is

bilhon debt less infia-

issues

which

(£52) (252)

—

The

go into effect

had

We ar^ extending the maturity portunity end?Je aSL,a ^andj0.^ 9P" lessened. atIn its place our
under the restrictive effort is
work to fashion

all

year

York

things

Taxes

do

can

being reduced
hy this Administration.

tration

afford to maintain within the lim-

bond

Underwriters

Fifth:

ble

ing that delicate balance between

on.

<»K2> (2SS2) <2£2> (£52) (2sSE>

New

con-

to

the

are

for

the

found

and

in

risk

inflation did not
critics

our

The ending,

calculated

a

that the average American can do
more for himself—if he is allowed

dollar

fense, which the country can'long

doing

at

purchasing power of
during the past year,
This is real proof of gaining stability.
the

tinually modernized system of de-

adopt
or

budget.
But

fluid

a

accomplished

temporarily. There has been
change of only one-half of one

cent

as

This

been

was

runaway

valaf

Or

ef-

more

a

more

can laise addi- tionary and less dangerous to the of

some

,

and

do

must

has

controls

suit

least

nearlv $275 billion debt less infia.

,

....

civilian

will

cut

can

inses.

consciousness in the minds of both
....

We

This

crisis-to-

a

_

1955.

government

billion

militarv
military

frequently

But this is

eliminated
time.

some
some

been

This

apparent.

of

an

nine billion dollar deficit

,.

ex-

defense for less money,

more

Extravagance
Extravagance

small

accept

can

pei^es*
The government
t1()nal taxes.

extravagance, and, second, by get- fice.
ting

alternatives:

controlled.

Rapid reductions insecurity

,

four

^at

broadax

a

or

The

kJ*™^.r®d"cti0?s

be made, they will have to
be made largely in that area beare

A.

but

government

fiscal

get

Government spending ballooned
during the past few years in the

basis.

We must have

com-

year-

have

The

raili-

operations

u

We

would
all

money we spend in government is
for security-that

tary,

nine billion dollars in this

ing fiscal

to¬

getting

Federal

indefinite crisis

on

_

in

way

know that

we

defense

our

.

to¬
our

essential, plan

we must do more than

deficit financing spurs the forces than plan on the basis of a short
inflation and finally cheats and all-out effort for a limited
every family in America.
ge£lod of
We must plan our
We have cut the prospective defense and the ability to sustain
deficit for the current fiscal year it for the long pull, for an lndefinfrom niore than $11 billion to less ite number of years, not knowing
than $4 billion.
when, if ever, the critical moment
T!le problem in the fiscal year may appear.
beginning next July 1, however,
Thus a sound defense and a
is'even more difficult. Present sound economy for the long-pull
estimates show that should spend- is our objective.
v
'ng continue at the present rate it
Second: We can and we must
exceed our estimated income, spend whatever we have to spend
after termination of the excess to defend ourselves. But we know
Profits tax and reduction of indi- that our defense must be measured
vidual taxes on Dec. 31, by eight not by its cost but by its wisdom,
or

,

months

because

of

cheapening predicted.

of the dollar.

Indeed

t

Control of spending is

tiative and enterprise.

a

home.

effort.

War in Korea.

81

security security from attack from abroad

come

fecting a new and more effective
defense program which costs less
money.

(2441)

either in

San

Francisco

—

Wires

Santa

Sacramento

—

to

Principal

Barbara
Fresno

—

—

Offices

Monterey
Santa

—

Rosa

Oakland

82

The Commercial and Financial Chronicle

(2142)

is

Continued jrom page 22

Competition Should Bring
Greater Prosperity
and used

by their monthly fi¬

statements.

the

They give

up-to-date

accurate,

an

of

legal

us

measure

for

demand

consumer

our

products. Any major trend noted
in these reports is immediately re¬
flected in our production sched¬

rules

there

and by their profits

cars

indicated

as

nancial

that

fact

the

American

would
the
these facts. Wide-wake, progres¬ present
methods of intermittent
sive management is never satis¬
explosions in the
combustion
man¬

agement generally recognizes

are

as
who

those

for

penalties

are

fail.

who

those

Just

fairness.

of

rewards

there

succeed,

for

bad?

Not

that

Is

have a chance to
learn from experience and do bet¬
long

as

we

as

ter the next time.

thing

as

Therq's no such
standing still.

fied

is

with

things

constantly
its

prove

its

and

they are, but
the alert to im¬
as

on

methods
Not

its

products,

distribution

system.

long ago, there were gloomy pre¬
dictions
boom

when

that

the

duction.

Competition will force him to be¬
come more efficient or pass out of

—with, of course, the help of con¬
vincing salesmanship — who de¬

the

which

cides what and how much shall be

There is

produced.
tive

in

arbiter

no more

the

effec¬

who

producer

But again that's not
long as there are bright

picture.

bad,

so

coming along

enterprisers
place.

young

to take his

As far

in which production

ways

limited within

can

be

industry.

an

One is to return to
of

Competition

I know, there are three

as

government controls and

duction allocations such
dured throughout

as

pro¬

we

1951 and

en¬

1952.

dustry and let the government de¬
how

what

much

will

be

produced,

and

by whom,
what the prices will be.
And

a

anti-trust
turers

third

could

themselves

is

laws

to

and

fix

perpetuate

argue

me

remind you
consumers,

too, with needs and wants just like

individual.
For years, Ford
Company and John Smith
have been lined up in queues, beg¬
ging for materials, goods and serv¬
ices. We at Ford feel just the way
any

Smith

feels.

We're

nego¬

of

thinking
seriously
courses

is

American
that
a

any

scar¬

of

er

reasonable sub¬

he'll

change

his

is able to buy more.

he

he

if

same

to

Let's argee that the competitive

have

than

better

a

product at

a

long

as

product

or

lower price

else, he will
and

more

he

So long as
choose—or bar¬

please—so

you

somewhere

quickly.

and

find

can

the

mind

pick

can

gain,

competitive system. Anyone who
might think so should visit Eu¬
and

production
by

over-all

will

increased

be

5%.

could

system is a pretty tough game, system.
What makes
subject only to certain moral and

to

under

continue

live

Hundreds of millions of dollars,
for example, are being put into

other

'
our

economy

unique

the

automobile

industry- to
build
V-8
engines, which have
obsoleted
other
types
of eight
cylinder
engines.
Hundreds of
millions more are being spent for
facilities

.to

automatic

produce

transmisions,

The

hidden

spending

and

steering and
relatively new
industry.

our

drive

of

the

the

create

behind

meet

transistors

devices

high

living

American

better

That's

the

con¬

secret

and

new

—

priced

products

of

standard

people

low

enough, through volume produc¬
tion, so that more and more peo¬
ple can buy them and thus sus¬
tain

still

More

is being spent by

businesses

on
research and engi¬
neering at the present time. While

don't

I

think

Ford

is typical, it

to you

that

Motor

product engi¬

our

budget in 1946
million dollars

14

product

engineering

cluding

Com¬

be of inter¬

may

was

less

and

our

staff,
in¬
consisted of

researchers,

2,300

employees.
Currently, by
contrast, our product engineering
and

activities

research

eted at
Our

budg¬
$61 million annually.

some

are

product engineering and
staff

search

has

to

grown

electronic

the

open

improvements

greater

de¬

powerful

also

find

tronic

in

engine

in

may

to use these elec¬

ways

devices

tially

to

way

speeds and performance. We
aid

to

substan¬

us

vehicle

control

and

there may be
electronic control panels designed
for effortless driving.
Someday

Ford

Motor

Company does not

intend to be caught
it

comes

of

this

job

napping when

future

to

developments

We're

nature.

scientists and

over to

that

turned

giv¬

are

ing them the facilities with which
In the

past seven years,

remade

the

of

Ford

search

have

we

manufacturing facili¬
Motor
for

Company
and

new

in

better

manufacturing
a

processes.
It
is
continuing, never-ending job.

We have made real advances in

re¬

6,000

handling and machining of
in progressive production

parts

Sometimes

processes.

ferred

to

it

is

re¬

the push-button fac¬

as

tory.

sion

modernization

and

that has cost
lion

program

than

more

us

dollars since 1946.
company

kinds, has built six
has

plants,
parts

centers

at

assembly

new

18

new

population
country and

key

the

across

has completed

16

various

some

other

20

ma¬

jor

building and modernization
of various kinds.
Our
plant area has been more than
programs

doubled
square

from

—

661/2-million

square

We're rapidly

facturing

28-million

some

feet in 1945 to

feet in

nearing the

capacity

than

more

of

1953.

manu¬

competitor, and our costs are in¬
creasingly favorable because of
automation, mod¬

our

models,
planned

% Co,
ESTABLISHED

at

ahead.

1931

15

Russ

Building, San Francisco 4

Telephone EXbrook 2-7484

Bell

thinking just of new
which
are
ususally

emphasis

eauipment and good working

least

We're

years

gaged

and

now,

scientific

are

en¬

research

and

projects that might seem fantastic

System Teletype SF 272

the

to

aim

average

is

to

better

to

continue

our

in¬

vestment

automo¬

in

and

new

right

now

call

for

the

improved
Our plans

expendi¬

ture

of at least another $600

lion

over

the

next

several

mil¬

years.

of

at

every year

have

would

If

II.

War

re¬

rate.

a

staggered

continue

we

our

to

in-;

de¬
feat any effort to lead us down
the road to economic stagnation,
as

we

productivity, if

our

crease

a

nation

can

we

forward

move

undreamed-of heights of pros¬

to

perity and strength.
All of this, however,

offers

1

ca's

long opium-dream of the seller's
market is

It is

over.

longer a'

no

question of producing enough, but
of selling what we can so easily
It is only natural that,;
easy years following

produce.
after

those

the war, salesmanship should have
lost

its

of

some

firm

hard,

mus¬

cles, its keen temper and its gold¬
touch.

en

It

is

there

should
gs

we

only natural that

be

ourselves

lude

transition

The

thinking that
delayed or

be

it won't have

all.

their

deeper

into
can

that

sumer

have

made at

be

to

the

salesman—and

—

and.

into a
But let's not de¬

buyer's market.
the

aches

some

move

again

con¬

into;

come

own.

For

eight

Ford

years,

Motor

has been planning for
just this day. We have no kind
memories of the days of material
Company

shortages,

shares

enter the

We

with

business

follow

to

on

market.

competitive market
that,

American

our

the

of

confidence.

We believe
of

controls

government

artificial limitations based

historical

assure

make

to

them.

to

everyone

is

it

trends, not

The best way

slack

a

small part

as a

management,

be for

the

storm

for

run

American

public—products

cost

less

and

cellar. If, on the other hand, man¬

agement is confident, plans cour¬

ageously

but

intelligently

and

the

elements

and

create

our

own

climate. Our economy has
thrived in the past for just those
good

reasons.

I

,

can

the

of

cause

think

.

optimistic,

am

accomplish.

because

have

we

in

I

at

that

has

without

fan¬

building

a

base from

to attack our many domes¬

tic and international

learned—and

problems. We
at

cost —that

siderable

lems

Administra¬

Washington

fare

have

optimistic

am

hard—and

—

part

an

worked

which

only be¬
that I

not

small

right business attitudes

the

cannot

be

some

such

solved

by

con¬

prob¬
some

more

economically and efficiently. That
covers

a

lot

Auto

DEALERS IN

of ground.

Technology
"On the

OVER THE COUNTER

It calls for
has

someone

SECURITIES

ing."

And

termed

studying

are

\

STREET

and

are

(4)

higher
in

than

good

and

the

Bell

—

Teletypes




EXbrook 2-8515
—

SF 61 & SF 62

the

minutest

and

those

automobile
A

brokers

toward

not

,

■

■

of

far

speeds

BRUSH, SLOCUMB & CO. INC.

reached

now

1

study

developing

forms

missing

possibilities

their
of

new

f

any

inherent

bets
in

plants stronger
compact than today's

power

member

propulsion.

San Francisco

on

the

turbine engine. Some day we
may be able to produce gas tur¬
more

MONTGOMERY STREET

•

SAN FRANCISCO

is

Stock

gas

bine

I

.

forms

engines.

deal

better

We're

Telephone

concerned

including nuclear power,
measuring the effects of

temperatures

directed

SAN FRANCISCO

distributors

scien¬

our

are

transportation, they are also ex¬
ploring the pure sciences.
They
of power,

MONTGOMERY

"imagineer-

although

primarily with the broad field of

UNDERWRITERS and DISTRIBUTORS

155

underwriters

Go"

tists and technicians

J. S. Strauss & Co.

trading markets
Still

great deal of what

a

and
en¬

gines, and with only half as much
weight. Some method of contin¬

-

is

willing to take risks and encour¬
age competition, we can turn back

that

operate

to.

would

1954

biles, trucks and tractors for the
will

a

challenge to Ameri¬
distribution
system.
The*

tremendous

tion

intend

facilities and methods.

Our

car-owner.

make

We

years

thinking of 10 and

from

in

three

on

conditions.

demonstrates
can
and

share

imagination at the end of World.

chief

our

ern

not

increasing

that

all,

some

constructed

depots

bil¬

a

All in

has added
manufacturing plants of

persons.

We're

is

and

It's part of a long-range expan¬

It

sponsibility for continued prog¬
ress
in expanding our economy.
Our
nation's industrial capacity

the field of automation—the auto¬
matic

and

by

business
full

its

pains

to work.

the

greater production.

money

but

other

and

may

the

area,

tiny

of

this

greater

a

demand.

neering

Active Retail Outlets

industry.
American

will

future.

but,

large, it is the story of all Amer¬
that

are

unusual

may be

respects

some

tempera¬

problems

another

still

ties

is

thus

sumer

est

Utility-

In

velopment

the

developments in

than

Stocks & Bonds

these

mobile of the

power

brakes—all

power

pany

Dealers in Industrial & Public

When

in

higher

speeds,
higher

and

Industry

The Ford story

ican

tures.

plants, machinery and equipment
in

better

any

engine

pressures

safety.

improved products at lower prices

system,

our

industry also gains when the cus¬
can buy what he wants.
By
making a better deal, the custom¬

could
one

In

expenditures.

such

ket, I should like to point out that

among

production

an economy

record

all-time

an

process,

a

year

it
is the customer who gains most by
this return to a competitive mar¬

under

higher

shows

next

competition.
These
manufacturers
are
investing in
more
and
better
equipment so
that they can turn out more and

Although,

stitute for today's tried and proved

very

the

tomer

No

rope

our

tiating for lower prices.
We're
the asking that the fat be removed.

city.

these

to

are

And let

corporations

John

quotas and prices—in other words,
to

that

falls

system

manufac¬

together

get

and

repeal

that

so

competitive

Motor

Another is to nationalize all in¬

termine

greatest benefit of

consumer.

scheme

some

the

But

for

the

b,y

a survey

publication

was

year

some

Consumer Benefits Most from

Ways of Limiting Production

Yet,

business

manufacturers

capacity

world.

First, however, we must

find materials that will withstand

defense

major
that
will
spend only 8% less on plant ex¬
pansion and improvement pro¬
grams than they spent in 1953—

inefficient

chamber.

Story—The Story of

American

over

over,

priced his products too high in the
seller's
market
is
hurting now.

The

advantages

great

American indus¬ solved, there will be opened up
try would drastically curtail its new avenues for radical changes
spending
for
new
plants. and in the whole system of propul¬
equipment. We have undoubtedly sion and control of automobiles.
passed the peak qf^bhilding and These, in turn, will mean new
equipping plants for defense pro¬ shapes and sizes for the auto¬
was

That, in my opinion, is the only
production restriction we or any
other industry should have. In a
free economy, it is the consumer

ules.

have

Ford

combustion

uous-burning

Thursday, December 17, 1953

...

Exchange

BELL

SYSTEM

TELETYPE

SF70

wire systems

GOLDMAN, SACHS & CO.
DEMPSEY-TEGELER & CO.

Volume 178

magic

they

dumber 52<>^

formula.

We

,The Commercial and Financial Chronicle

.

know

now

ities

only be solved, one at a
time, by a sound, considered ap¬
can

proach.
is

tion.

Eisenhower

And

American

founded

was

wealth.

Administra¬

Those great spiritual val¬
still exist and as a people,

ues

Salomon

Dick

HULL,

J.

Bank

KENNY,

JOHN

Inc.,

Los

Glover A

Hulme.

San

Francisco

Bacon,

Jr.,

ARTHUR

Applegate

A

KING,

A

&

HURLEY,

New

F.

York

WILLIAM

Pittsburgh

KNOTHE,

A.

JAMES

JENKS,

KNOX,

York

C.*

First

The

Staats

A

National

Allen

Bioren

Los Angeles

Grubbs,

Philadelphia

Milwaukee

JONES,

Edward

John

JONES,
E.

Jones

New

JORGENSON.

O.

A Co.,

Chase

St. Louis

Bankers

JOSEPH, HERMAN B.

PAI L

Miller,

Inc.,

KEMBLE,

WILLIAM
A

KENNEDY,

Co.,

DAVID

C.

J.

FRANK

Devine

Kennedy,
Coffin

A

Burr,

Inc.,

Company, Kansas City

LEE,

LYONS,

LEE,
W.

JAMES
E.

W.

L.

New

LEEMING,

Chicago

Mr.

and

York

Mrs.

Ira

Co.,

A

E,

Corporation,

New

Co.,

A

York

New

York

Rlter A

A

CHARLES

New

York

D.

A

Co.

York

Corporation,

Co., New York

Cabell

A

Alstyne, Noel A Co., New York

NOURSE,

Incorporated,

The

CLIFTON L.

Illinois Company,

D.*

Hemphill, Noyes A Co., New York

Richmond

Co.,

OSGOOD,

WALTER

MORSE, Jr., CHARLES L.

C.

Noyes

Co.,

A

A

Company, New York

GILBERT

H.*

Blunt Ellis A Simmons, Chicago

OSGOOD, ROBERT L.*
York

New

Vance, Sanders A Company, Boston

S.*

Pitfield

DANIEL

Northern Trust

L.*

Wellington Company, Philadelphia

ERIC

Chicago

NOYES, BLANCHE

Co., Inc.,

New

York

OSTRANDER, LEE
William

Brothers,

New

OTIS,

York

H.

Brothers,

New

WILLIAM

H.*

Morton

A

Co.,

York

Blair

A

H.
Company,

Chicago

BARRON*

C.

Bond

Inc.,

OVERTON,
T.

New

York

Buyer,

Stroud

A

Company,
Philadelphia

H.

New York

JOSEPH

Jones

A

A.*

Company, Cleveland

OWEN, IRA D.*
Allison-Williams

MOSLEY, R. VICTOR*
Boston

Incorporated,

Company,

Continued

Minneapolis

on

page

84

Chicago

ROBERT

W.*

C.

Weir

Inc.,

A

York

New

Stone & Youngberg

S.

Co.,

New

York
MEMBERS

WILLIAM W.*
Coe, Washington

SAN FRANCISCO

STOCK EXCHANGE

B.

Securities

JULIAN

Corporation,
*<

A.

MILTON

Investment Securities

A.

Bennett

A

Detroit

Co.,

ANDREW

MARC'KWALD,

K.

Corporation of New York,

Russ

York

LAURENCE
Marks

M.

MARTIN,

San Francisco

Buildingr

Telephone SUtter 1-5460

Teletype SF 492

M.
A

Co.,

York

New

Direct Private Wire to Fairman &

L.*

GEORGE

MARTIN.

International

E.

New

OLIN*

Inc.,

Pomeroy,

MORGAN,

W.

Birmingham

GEORGE

D.

Laurence

Co.,

W.

Securities

ALLEN J.

O'DAY,

Phoenix

J.*
A

Jr.,

Charlotte

J.

Hutton

Magnus A Company, Cincinnati

New

Bank,

EINER

Bradford A Co., Nashville

York

New

MAGNUS,

S.*

Tribune,

Jr.,

J. C.

NISBET,

SlIDNEY J.*

RODERICK

MORTON,

Inc.,

Dillon

Eastman,

Co., Los Angeles

Bank, New YorkL

WAYNE

Clement

Denotes

NIELSEN,

V.

HWHHWHHHWHHWHHWHWUHHHHHUHHHHH

Young,

York

York

St. Louis

S.*

URBAN

Lehman

York

T.

Monley,

New York
v.

Chicago

NOEL, RICHARD C.*

Lehman

Dallas

L.

Dominion

New

A.*

Webber, Jackson A Curtis, Boston

Mackall

Co.,

GEORGE

Walker A Co.,

Lyons A Co., Louisville

MAGEE,

I.

Hutton

H.

MORSE, WALTER E.*

Magazine,

W.

MARKS,

LEES,
*

Bank,

New

MANLEY,

EUGENE

G.

NICHOLSON, DANIEL F.
Chicago

MORGAN, LAURENCE W.*
The Parker Corporation, Chicago

W.

b.*

SAM

MACKALL,

Company,

Valley National

New

LYONS,

McLeod,

Washington

T.*

Walter

A

Bank,,

Rollins

MORSE,

National

MacDONALD,

ORIN T.
A

NEWTON,

Cleveland

MORSE, FRANK H.*

Shafto,

A

Discount

M.

Co.,

Inc.,

H.*

Securities

Estabrook

T.*

NEWHARD, CHAPIN S.*
Newhard, Qook A Co., St. Louis

Bank,

WALTER

Hemphill,

KEVIN

Bank, New York

York

LEACH,

Boston

United States Treasury,

KENNEDY,

A Trust

M.*

Co., San Francisco

Estabrook

Bank

B.*

New

LELAND

Incorporated,

Co.

LYNN, EUGENE*
Wertheim A Co.,

Lyons

WELLS*

PETER

American

Kaiser A

A

Paine,

LA VAN,

Management Co.,

Pittsburgh

Langley A Co., New York

LYONS,

D.*

Trust

York

A.*

LYNN, HENRY S.*
Sterne, Agee A Leach,

R.

Chicago
KAISER.

Friedrichs

Chicago

LAUDY, WILLIAM
Starkweather A

Cleveland

A.»
Shares

C.

Finance

Hutton A

F.

Toronto

The

P.*

Co.,

A

New York

Newburger A Co., Philadelphia
NEWBURGER, Jr., FRANK L.*

York

Limited,

Denton,

WALTER

Branch,
New

Lynch,

A

MacFADDEN, DONALD
E.

New

York

MOORE,

Chicago

The

Rollins

Mercantile

W.*

CHESTER

C.

LYNE, LEWIS F.*

MALCOLM E.

LAUD-BROWN,

Television

Research

A

Labouisse,

A

Blair,
New

A.*
Corporation,

WILLARD

Morgan Stanley A Co., New York

JERRY

A

W.

LATSHAW, JOHN

Denver

JUST,

JOHN

National

LASELL,

Baltimore

Hallgarten A Co.,

Co.,

Peabody

MOONEY,

York

New

York

LYNCH,

MacARTHUR,

Peters, Writer A Christensen, Inc.,

Mellen

York

H *

Weil,

Blair,
New

Hammill A Co., New

ARTHUR

NEWBORG, LEONARD D,

York-

New

VV.*

Buffalo

FRANK

Nashville

'

Joseph,

Cleveland

Landstreet A Kirkpatrick,

Clark,

LANE,

Co.,

Inc.,

LANDSTREET, 3rd, BEVERLY W.

York

RIGGS

&

A

City

Schoellkopf,

Co.,

Leonard

J.

New York

Thornton, Mohr A Farish, Montgomery

Inc.,

York

New

WALTER

JAMES

LYNCH,

G.

A Co.,

S.*

Jr.,

MONRO,

Boston

Moore,

Pittsburgh

Co.,

S.*

Kidder,

LYNCH, Jr., CHARLES McK.*

First National

Peoples

D.

Jones

ELISHA

R.

Inc.,

ANDREW

MOHR,

L.*

Co.,

Camden

R.*

ARTHUR

Hentz

NIX,

Allyn A Co.,

First

Philadelphia

Nuveen

C.

LYLES,

Securities

LAMBING,

PAUL A.

D.

A.

New York

M.

A

LYKLEMA,

Company, New Orleans

Weekly, New York

EDWAR.D

J.*

Co.,

LINTON*

Distributors, Inc.,

Underwood, Neuhaus A Co.,. Houston

^Newhard, Cook A Co., St. Louis

York

New

Wacckerle,

Read A

Dillon,

STANLEY

H.

Howard,

Greensboro

M.*

EDWARD

Jacquelin,

A

H.

JOSEPH

NEUMARK,

Van

New York

Shepard A

W.

Delaware

NEUHAUS,

York

New

National

MILLS,

LUDIN, JOSEPH*

LAING, CHESTER

Wood, Gundy A Co.,

Barron's

Hass

MOFFITT,

MARK A.

FRANK

Laidlaw

JOHN A.

LABOUISSE,

H.*

Johnson, Lane, Space A Co., Savannah

JOHNSTON,

York

Eisen
City

Kansas

Corporation, Chicago

H.*

THOMAS

JOHNSTON,

New

DAVID A.*

LUCKE,

Banks,

Co.,

National

R. H. Johnson & Co., New York

JOHNSON,

&

KUECHLE,

T.*

Milwaukee Company,

R.

C.

First

York

Stearns A

Lucas,

IRVING

Shearson,

Bank, Chicago

MARSHALL

B.*

N.

Chicago

T.

Gregory, New York

Interstate

Pierce & Co., San Antonio

Co.,

Prescott,

J.

McDaniel Lewis A Co.,

JOHNSON,

&

KRUSEN,

A

JOSEPH

JOHNSON,

New

A

A

NELSON,

Paul

KRUG, THOMAS B.

KRUSE,

Co.,

St.

New York

ARNOLD

KOERNER,

Dallas

P.

EDWARD

JOHNSON,

Co.,

Carlisle

WILLIAM

CARL

MILLER, LEWIS

E.

A

!

Co., New York

EDWARD

Bonner

Hutzler, Chicago

WILLIAM

National

Chicago

Company,

A

Stern, Lauer A Co., New York

NELSON,

MILLER, BURTON A.

-»

THEODORE*
Co.,

V.

Bear,

Baltimore

MAURICE*

Burns Bros, A

Brothers

Co.,

A

Co.,

Jones,

MILES, E.

Inc.,

Company,

A

S.

MALCOLM

LOW,
B*

HUGH

Land

KOCUREK,

Philadelphia

EARLE*

Kirkland

JENNETT,

Long

JOHN

Illinois

Barr

JOHN T.*

Federal

MORTON

Jenks,

Canada,

Stieglitz, New York

B.

Glore, Forgan & Co., Chicago
R.

of

Assn.

Kuhn. Loeb & Co.,

Southwest Company,

William

The

LOVE,

Dealers

KNOWLTON,

W.

WILLIAM

J.

New York

Corporation,

STANNARD

Halle &

Robinson A Co.,

JARDINE, Jr.,

W.

G.

W.*

Jr.,

*

V.

RICHARD

Dow,

Elizabeth

LOOMIS,

J. A.

Rauscher,
First

Hugh

Montreal

MURRAY,

H.

Inc.,

Brothers

Inc., Chicago

Co.,

LESTER

L.

Bros.

A

MEYER,

D.

A

W.

JULIAN

Hirsch

York

New

Philadelphia

JOSEPH

Nicolaus

NAUMBERG,

Higginson Corporation, New York

MEZGER,

HUGH

LUCAS, Jr.,

J.

JOSEPH

JAMIESON.

Co.,

H.

First National Bank,

"

KURT

Jr.,

Co.,

Birmingham

KNOPF, BERNARD B.

Detroit

W. E. Hut ton & Co., New

JACKSON,

A

Stubbs, Smith A Lombardo,

LOWRY,

L.

ILLOWAY, LAWRENCE
Aspden.

Detroit

Chicago

Corporation,

A.

A Co.,

MURPHY,

Co., Atlanta

MEYER, Jr.,

J.*

EDGAR

Dickson

A

Salomon

Milwaukee

Co.,

A

JAMES

MEYER,

VICTOR

A

S.

LONG,

GEditGte

KNEASS,

Ristine A Co., Philadelphia

P.

Lee

Philadelphia

Co.,

Stifel,

MERRELL, ROLAND*

Philadelphia National Bank, Philadelphia

Baker, Simonds A Co.,

IGLEHART,

Co.,

&

& Co.,

Securities

Investment

H.

Company,

HUTTLINGER,

A

J,

JOHN

MURPHY,

Barr

Securities

Pittsburgh

The Illinois Company,

Miller

Courts

Masten A Co.,

Reynolds

W. CARROLL*

Mead,

E.

MURPHY,

G.

Webster

A

York

MULQUEEN, EDWARD F.
Mills, Spence A Co. Limited, Montreal

G.

Toronto

Co.,

HUNTER, FRANK

McKe'vy

Drexel

ROBERT

MEANS,

LOMBARDO, JOSEPH P.*

D.

&

Chicago

H.
Jackson

Co.,

MORRIS*

LLOYD,

MEAD,

MEAD,

Incorporated,

PETER

KINSMILL,

JENSEN
Weld

Ayres,

A

Pittsburgh

Company,

Chicago

York

New

Re¬

CARROLL
Little

H.

Loewi

MacArthur

JOSEPH

Union

Secretary of the Treasury, Washington
White,

C.

LOFTUS.

Greenshields

Inc.,

HUMPHREY, Hon. GEORGE M.*
E.

Bank,

ALDEN

Milwaukee

Weil, Roth A Irving Co., Cincinnati

Stone

L. '

Whipple

KILBURN,

F. !

Humphrey,

Pittsburgh

HUNT,

A

JOHN

WILLIAM

KERR,

G.*

MacGregor. Inc., Pittsburgh

HUMPHREY.

Kenny

KF.NOWER,

Angeles

Kenower,

America,

MILTON

Association, Chicago

S.

National

A

STANLEY

New

D.*

San Antonio

MULLINS, FREDERIC P.
A.

Company,

McMAHON, EUGENE G.
Heller, Bruce A Co., New York

MARY

LINCOLN,

LOEWI,

P.¬

Richmond

S.

HAY,DEN

of

HULME,

GEORGE

Willis.

York

New

The

investment Bankers Association,

R.*

Durst,

McKIE,

A Co.,

MULLANEY, PAUL L.
Mullaney, Wells A Company, Chicago

WILLIAM M.

McKelvy

Chicago

Magazine,

Bank,

EDWARD

Russ

Co., Minneapolis

Milwaukee

McKELVY,

SALIM L.
Bear, Stearns A Co., New York

R.

A

York

New

LEWIS,

LITTLE,

In Attendance at IBA Convention
WILLIAM

The

LEWIS, Jr., Mrs. REUBEN A.
Finance

International

MUIR,

McGEOCH, Jr., ARTHUR N.

A.

Merle-Smith,

A

A

83

MUDGE, LOUIS G.

York

New

McFARLAND, DONALD E.
Kalman

Investment Bankers

America will go forward.

ours,

MEAD

LITTLE,

Lord, Abbett A Co.,

Hutzler, New York

LEWIS,

our
form of worship,
place freedom of the individ¬

Chase

Wagenselier

A

whatever

Continued from page 39

HUGHES.

Bros.

Co.,

New York

LEVY, BENJAMIN J.*

LINEN,

-

Blyth A

Mcelroy, david b.*
J. P. Morgan A Co. Incorporated,

Blyth A Co., New York

we

of the great spiritual
qual¬

ALBERT

Washington

GEORGE

that

am

HUGHES,

McDonnell, donald n.

A Co.,

new

is apparent

aware

LeVIND,

Lemon

of

confidence.
ual, his dignity, and his right to
optimistic also because it progress through his own efforts
everywhere I go and above any political or economic
in almost everything I read that
dogma. As long as we live up to
our
people are more than ever this great spiritual heritage of
I

Johnston,

usv all

gives

for

cause

LEMON, JAMES II.*

LEWIS, Jr., ED. S.*
Lewis A Co., Jackson

month

every

Administration

the

people who first sought re¬
ligious
freedom,
not
economic

I believe that is just what

the

in

Our nation

by

being done in Washington today

by

inherent

system.

(2443)

Evans

A.

A

Co.,

Altanta

LEON*

Haupt A Co.,

New

York

ARNOLD

MASSEY,

B.¬

Mills, Spence A Co., Inc., Toronto
GEORGE

MATHISON,
Milwaukee

Milwaukee

Sentinel,

WOODFORD*
Street Sales Corporation,

MATLOCK,
Broad

CHARLES

Dean Witter

8c

Co.

Bank

Wachovia

Northern

Complete Distribution

MAY,

the

on

Parker Corporation,

•W :l R F

C

New

York

other leading

commodity
45

\ CrtlCA.60

\

McCALL,
Alester

1
Members

SOSTOH

Exchange

Wall

So.

exchange^

Street,

Spring

and

security and

Montgomery St., San
14

632

Stock

New

St.,

Francisco

Y<&k

Los "Angeles

Hammill

ARTHUR

Principal

in

Pacific

Coast-

A

Cqrpdrate

New

Securities
York

C.

Furman

Co.,

McCarthy,

dennis

h.*

First

Boston

St.

San Francisco

GEORGE M.*

McCLEARY,
Florida

Greenville

Corporation,

Securities

Company,

Petersburg

McCLINTOCK,
Harriman

franklin

Ripley A Co.,

McCormick

A

T,
Inc.,

New

Kaiser a Co.

York

DEAN*

D.

Co.,

Chicago

MEMBERS

rities
McCORMICK,
American

McCRARY,
The

EDWARD

Stock

McDonald

T.

A

New

Los

Angeles

Cleveland

_ii
Mcdonald, jr., harry a.*
McDonald-Moore

A

Co.,

150D

Detroit

LOS ANGELES

EXCHANGE

STOCK

RUSS

BUILDING

teletype

bert*

Company,

FRANCISCO

York

H>

Corporation,
c.

• AN

Exchange,

ROBERT

Parker

Mcdonald,




Municipal and

Boston

Co.,

G.

McCORMICK,
Offices

State,
Chicago

Company,

MAYNARD, WALTER

Pacific Coast

DIRECT

Co.,

M.*

Trust

Shearson,

PRIVATES

Trust

A

DENNY

J.

The

Facilities

F *

Winston-Salem

MAXWELL, JOHN

distributors of

Underwriters and

York

New

MATTON,

•

STOCK EXC HAN HI

SAN FRANCISCD

SF 172

^

84

The Commercial and Financial Chronicle

(2444)

REIS,

Continued from page 83

THOMAS

FRANK

Indianapolis

In Attendance at ISA Convention
VACE,

CLARK

Business
PAN H E.

f

R.*

Week,

New

York

I.

AMORV

Parker

PARKER

Corporation,

NATHAN

Boston

The

Parker

PARRY,
De

WILLIAM

R.

First

Jr.,

Boston

EMIL

York

New

PRICE,

Chemical Bank & Trust Company,

Brown

Seattle-First

PUTNAM,

Cumberland Securities Corporation,
Nashville

&

PUTNAM,
EDWIN

Burns,

F.

Bros. & Denton, Inc..

f'ERRIGO.

CHARLES

Hornblower

PERRY,

&

Paine,

;

GERALD

P.

Writer

Peters,

Chistensen,

&

Harold

F.

W.

PETERSON.

Jackson

&

Inc.,

St.

Louis

Equitable Securities

Corporation,

L.
St.

Co.,

PETTIT,

KARL D.*

Knickerbocker

PEVEAR,

J.

Irving Trust Company,
PFEFFER,

New

Bank,

GUYBERT

Caldwell

York

RALPH

Witter

PICKARD,

A.

&

PIGOTT,

Los

Angeles

Pitfield

Chicago

G\*

&

Limited,

PLEASANTS, AARON
ROBERT

Cruttenden
*

&

G.

Co.,

RYONS,

Dallas

SAGE,

&

Edwin

JOHN*

Jr.,

JOSEPH

&

Nat'l

RE ILLY,

Denver

F.

VINCENT

Commercial

A.*

&

York

New

Chronicle,

Mrs.

Reinholdt &

Jr.,

JULIUS

Gardner, St. Louis

A.

&

PRIVATE

TELETYPE LA

TRinity 0281

•

San Diego

•

Laguna Beach

&

York

X.

New

York

York

N>

F.*

M.

New York

GEORGE*

Bros.

SYLCK,

&

M.

Hutzler,

New

York

L.

Commerce, New York

VARNEDOE,

SAMUEL

L.*

Chisholm &

Co.,

Inc.,

Savannah

McDowell,
&

Morgan Stanley" & Co., New York

New York

Chicago

VRTIS,

G.

Co.,

GLAHN,

Salomon

Glore,

Toledo

THEODORE

Bros.

&

CHARLES

A.*

Hutzler,

New

-

RICHARD

Chicago
B.

Blyth & Co., Chicago
GEORGE

R.

Mercantile Trust Company,
&

Co.,

Columbus

WALKER,

W.

G.

New

York

S.

Forgan & Co.,

WALBERT,

;

Tribune,

York

H.

Jr.,

G.

New

York

H.*

Walker & Co.,

WALKER,

JACK

New York

GRAHAM*

Joseph McManus & Co., New York

JEROME

Trust

•

Co., New York

HENRY

Bank, Minneapolis

WALKER,
G.

F.

Louis

Corn

H.

LOUIS

Walker

WALLACE,

Exchange

Bank,

&

Co.,

Hartford

.DARNALL*

Bache & Co.,

New

York

Continued

Philadelphia

Incorporated,

Louisville

VANDERPOEL, ROBERT P.*
Chicago Sun-Times, Chicago

von

Dempsey-Tegeler & Co., St.

Parke,

York

P.*

Tulier

WALDMANN,

TEGELER,

Girard

on

page

C.*

Company, Omaha

MURRAY

&

SCOTT,

R.

Sun,

Stringfellow,

W.

Wood,

New

York

Richmond

PEARSON*

Gundy & Co.,

Bateman. Eichler St Co.

Limited, Toronto

WILSON A.*
&

SCRIBNER,
Singer,

Deane

&

DANA

National

SENER,

Company,

JOSEPH

SCUDDER,

John

&

BUFORD

McKelvy

Long Beach

New

Newark

TERRELL, ALLEN M.

Group,

JOHN

SCOTT,

38

&

York

New

K.

Journal of

VV.*

Northwestern National

Chicago,

New

York

VOLLMERS, H. EDWARD*

JOHN*

O.

Digest,

New

Boyce,

Bullock,

Salomon

Keystone Company of Boston,

Herald

City

Investment Securities
Pittsburgh

B.*

453

Bank,

JOSEPH
C.

Pittsburgh

M.

Scribner,

New

SOUTH

SPRING

STREET

York

LOS

VV,*

Legg & Company,

ANGELES

13

Baltimore

SEVERANCE, CRAIG*
F.

Eberstadt

SEVING,

&

Co.,

Butcher

&

Bond

SHARPE,

MITCHUM, TULLY & CO.
Established

1920

Trust

HERBERT

Sanders

SHERBURNE,

UNDERWRITERS

DISTRIBUTORS

BROKERS

Angeles

San Francisco

Spring St.

MAdison 2621

405

Montgomery St.

&

St.

DOuglas 2-2220

Company,

New

STOCK

EXCHANGE

Boston

H.

VIRGIL*

Co.,

&

SHOLLEY,

New

York

Co., New York

S.

L.*

Keystone

Company

of

Boston,

Boston

Hayden,
SIEFERT,
Stern

Exchange

ANGELES

York

SHREVE, VVICKLIFFE*

Member Los, Angeles Stock

LOS

Louis

CORNELIUS*

Shields

The

AVE.

I.
&

HAROLD

SHERRILL, H.
Shields

650 S.

GARFIELD

Whipple & Co., New York

SHIELDS,

Los

MEMBER

P.

Company,

SHELLEY, WILLIAM F.*
Vance, Sanders & Company,
Bacon,

NORTH

S.

WILLIAM

Vance,

Pasadena
28

Philadelphia

Buyer, New York

Mercantile

SHAW,

New York

T.*

Sherrerd,

SHANKS, WILLIAM
The

Inc.,

FREDERICK

SILLS,

Stone

&

& Co.,

WILLIAM

Sills,

Co.,

RUSSELL

Bros.

Fairman

New

HlU

York

E.*

Kansas

City

'

-

-

Harris,

RiCHAWS & c°.

-

bonds

H.
&

Incorporated,

and

stocks

,

Chicago

SIMMONS, RICHARD
Blunt

Direct wire

Ellis

&

W.

Simmons, Chicago

SIMONDS, RALPH VV.*
to




New York and San Francisco

Baker,

Simonds

&

Co.,

SIMONSON, Jr., HENRY
National

Securities

&

Detroit
J.*
Research

Corporation, New York
SIMPSON,

CRAIG

Bankers Trust

deV.

Company, New York

Members

York

L.

ROBERT

Varnedoe,

WILLIAM

JAMES

C.

&

HART, T.

VAN

B.

SWENEY, LOVVRY
Sweny Cartwright

A.

HAROLD

SCHWERENS,
SCOTT,

•

The

New

York

York

Scott

LOS ANGELES 14

SWANEY,

Dealers'

America,

N.

UFFORI),

VAN

A.*

Company,

Sutherland

Minneapolis

of

York

Boston

J.

Roberts

World-Telegram
PLACEMENTS

R.

Co.,
New

RAYMOND

Bros.

of

Calvin

New

Chicago

J.

WALTER

Distributors

New York

C.*

Securities Dealers,

SUTHERLAND,

Montreal

Merrill, Turben & Co., Cleveland

Philadelphia

Blosser

SYKES,

Bank,

Bank

Chiles-Schutz

DISTRIBUTORS

•

.Research,

Towbin

&^Co.,

TURBEN, CLAUDE

VV.

Co.,

FREDERICK

TALBOT,

SCHREDER,

SCIIUTZ,

UNDERWRITERS

Assn.

Sraus,

A.

HAROLD

Nat'l.

New

Members Los Angeles Stock Exchange

J.

Co.,

GEORGE

Poole,
Philadelphia

I

Nat'l

Ryan,

MORRIS

National

Co.,

Limited,

EUGENE*

JEROME

TULLER,

STOLLE, CARL

A.*

FRANCIS

Schmidt,

& Co

&

Louis

ERNEST*

SCHLUTER,
First

Stokes

Dallas

Economic

Jr.,

SCHMIDT,

Croweff.Weecfon

St.

Schapiro & Co., New York

First

/a

JESSE

Whipple

SCHAUST,

•

York

Co.,

RAYMOND

SCHAPIRO,

M

&

Hodgson & Co., Inc., Montreal

Bacon,

Trust

Co.

Unterberg,

Robert

STOHL, WALTER H.
Fidelity Union Trust Co.,

C*

Newsom,

J.

Savard,

VV.*

M.

Pasadena

Guaranty

Angeles

STRAUS,

SCHANCK,

•

Los
C.

Bank,

Baker, Weeks & Co., New

Chicago

GETHRYN

DONALD

&

Rothschild

TSOLAINOS,

III, ROBERT
Investment Bankers Association, Chicago

York

SAVARD,

Financial
v

York

A.

Bank,

STOKES, EDWARD

Jr.,

Bank

Chicago

&

Development

TSCHUDY, ARNOLD*

STEVENSON,

New

&

Stein

EUGENE

Stevenson

STODDARD,

Sanders

Bureau

New

650 S. SPRING ST.

Bacon,

Houston.

Co.,

Co.,

EDWIN

SAULNIER,

Refsnes, Ely, Beck & Co., Phoenix

Jr.,

STEVENSON,

R.*

&

Brothers,

C.

Sanders

E.

National

Inc.,

J.*

TROST, MILTON S.*

York

Stetson Securities Corporation,

Incorporated,

G.

SANDERS,
Boltimore

W.*

and

York

New

ANDREW

SANDERS,

Sons, St. Louis

Co., Chicago

Mr.

Chase

STETSON,

F.

TRIPP,

B.*

Co.,

Company,

de

Tripp & Co., Inc.,

Sons, New

&

B.

BELMONT*

Investment

STEPHENSON, EDWIN

York

New

L.

Ryons

II,

&

HENRY

Pitfield

TRIGGER,

Cleveland

Boston

DONALD

Atlanta

Pittsburgh

Rico

C.

E.

L.

New

York

Company,

Company,

TREUHOLD.

G.*

Company,

JOSEPH

Lester,

J.

Corporation,

Cleveland

R.

R.

Weeks,

RUSSELL

Lehman

REINHOIOT,
Denotes

&

.Winston

Rowles,

GUY*

Edwards

REFSNES,

Montreal

International Trust Company,

PODESTA,

&

Baker, Watts & Co.,
/

Co.

&

ROWLES,

H.*

Pierce

W.

Bank,

WILLIAM

ROBERT

Stroud

W.

C.

FREDERICK H.

Brown

Cruttenden

.

A.

REDWOOD,

Company,

ROWE,

York

New

M.

Republic

PITFIELI), WARD
W. C.

JOHN

ANDREW

Dallas

Louisville

F.*

Securities

REDMAN,

Co.,

Alex.

&

TOWBIN,

H.*

Co.,

STEPHENS,

York

New

&

New

VV.*

TORREY, ARTHUR S.*

York

New

M.*

WALTER

Co.,

&

ROBERTO

Puerto

Chicago

PHILIP

Tindall

Government

G.

Reserve

Hornblower

Atlanta

Co.,

&

JULIAN

Atlanta

J.*

GEORGE

STEIWER,

York

Cincinnati

B.*

EMERSON

Leob

TOMPKINS,

Savannah

Co.,

R.

&

J.

W.

TORO,

Bank,

JACK

Reid

Drexel

New

W.*

Thornburgh Co.,

Robinson-Humphrey
&

FREDERICK

Economist,

STEEL,

Philadelphia

RAYMOND,

C *
&

Inc.,

Co.,

ROBERT

ROVENSKY,

Chicago

Dominion

Pierce

&

Louis

York

TOMASIC, ANTHONY E.*

Philadelphia

ALFRED

STEARNS,

B.*

St.

New

FRANCIS

Thomas

STEARNS, JAMES P.*
Ball, Burge & Kraus,

York

New

Merle-Smith,

&

Federal

Philadelphia

Peabody & Co., Philadelphia

Rauscher,

Co.,

Co,,

A.*

MYRON

Co.,

Roll

B.

ROUSE,

L.*

ALFRED*

Kidder,

G.

JAMES

Central

&

Hutzler, New York

C.

Co.,

JOHN

Dick

York

Hilliard & Son,

B.

RAUSCHER,

E.

CHARLES

Rauscher,

J.

RAUCH,

M.

Burns, Corbett & Pickard, Inc., Chicago
PIERCE,

New

DILLMAN

Bache

York

Phillips Co., St. Paul

PHILLIPS,

ROLL,

C.

TINDALL,

Orleans

New

ROOSEVELT, JULIAN K.

HARLEY

RATCLIFFE,

K.*

City

PHILLIPS,

Dean

New

BELMONT

National

RASH,

W.*

&

WILLIAM

G.

Goldman, Sachs &

Shares, Inc., New York

WILLIAM

The

Inc.,

Sons,

Brothers,

Harris, Upham & Co., New York

J.

Peabody & Co.,

STEARNS,

GUILLERMO*
Development Bank,

JAMES

Hentz

J.

& Co.,

W.

Fulton,

York

E.

Jones,

Chicago

VV.*

National

STAPLES,

AVERY

Rico

ROGERS,

Paul

'•*?

RANKIN,

&

Beane,

Townsend, Dabney & Tyson, Boston

York

New

&

B.

Estabrook & Co.,
&

THORBURN

Rand

York

JAMES

Puerto

Indianapolis
RAN.D,

First

New

Co.,

JAMES

Kidder,

Dominick,

&

RODRIGUEZ,

Curtis,

Raffensperger, Hughes & Co., Inc.,

E. NORMAN

&

SPENCE,

Richmond

Co.,

Jr.,

ROCKEFELLER,

H.

JOSEPH G.*
Eckhardt-Petersen & Co.,

SPEAS,

VV,

&

JOSEPH A.*

W.

Kuhn,

Company,

HARRY

Yarnall

^

&

Fenner

B.*

SPACE, JULIAN A,*
Johnson, Lane, Space

St. Petersburg

Strudwick,

Ashplant

Scharfi

F.*

RAFFENSPERGER,

New

B.

RODDY,

Davenport

Denver

PETERSEN,

Albert

<fe

Dominick

Wood

E.

V,
York

New

FREMONT

ROBSON,

The

RUDOLF*

SNYDER,

EDWARD

Co.,

Government

LEO

QUIST,
Inc.,

SMUTNY,

Trust

STALKER,
Boston

York

New

City

York

New

THORNBURGH, ROBERT

York

Pierce,

Salomon Bros. &

Lines,

&

Anderson

Inc.,

Exchange Firms, New York

Webber,

Oklahoma

ROBINSON, ARTHUR R.

J.*

JAMES

QUIGG,

Pershing & Co., New York
PETERS,

HENRY

JOHN

Quail & Co.,
New York

W.*

Goodbody

Theis

Lehman

THORNE,

SOLOMON

Northern

CHANDLER
Schapiro & Co., New York

ROBERTS, Jr.,

Seattle

D.

Hartford

Distributors,

Assn. of Stock

QUAIL,

S.*

Graves & Co.,

F.

PUTNAM,

R.

Weeks, Chicago

FAIRFIELD

Gordon

PERSHING,

New York

Bank,

Air

Albert

York

New

TIIORS,

,

York

L.

Brothers,

THOMAS,

New

Lynch,

York

New

New

York

SMITH,

IRVING J.*

M. A.

GEORGE

Fund

PHILIP J.
Bank,

Eastern

S.

National

Co.,

Jr.,

Putnam

New

York

ROBBINS,

Baltimore

Sons,

ALBERT

Putnam

M.*

RICKENBACKER,

J.

I'ROSSER, MALCOLM

York

PAYNE, CARR

PEET,

&

Chicago

C.*

Co.,

Dominick,

THEIS, HARRY*

NORMAN*

Merrill

Irving J. Rice & Co., St. Paul

VV.*

New York

WILLIAM

III,

Alex.

RICE,

Charlotte

REGINALD

Jr.,

Walker <fc Co.,

G. H.

J.*

Corporation, New York

PATTERSON, DONALD C.*
New

Dickson & Co.,

S.

PRESSPRICH,

&

Lehman

Ore.

RAYMOND

J.

Weeden

National

First

Portland,

Bank & Trust Co.,

Clark, Dodge & Co., New

RHOADS,

Co.,

&

V.*

Company,

K.

ROBERT

THAYER,

&

C.*

CHARLES

Grant &

HOLLIS

Domminick

C.*

Sloan

HOWARD

SMITH,

Thackara,
THAYER,

Coppet & Doremus,

SMITH,

WILLIAM

REX,

New York

V.

LOGAN

PRATT,

<

L.*

Coppet & Doremus,

PATTBERG,

Boston

\y.rA

y

m

Paine, Webber, Jackson & Curtis, Boston

A.

■

De

Pittsburgh

A.

ALBERT*

PRATT,

C.

Jr.,

THACKARA,

Milwaukee

Co.,

DUDLEY

SMITH,

New York,

BRIAN*

F.

National

Mellon

Louis

St.

Smith, Barney & Co.,

Corporation,

SIDNEY

Co.,

SMITH,

N.

Corporation of

York

New

BRADFORD

Investment Bankers Association,

HERBERT

REUTER,

ROBERT

POWERS,

K.

Kay, Richards & Co-. Pittsburgh
PARKER,

Simon &

M.

New York

Inc.,

K.

ELVIN

POPPER,

F.

EDWARD

DONALD

Donald

S.*

Trust Company,

York

REPP,

&

SLOAN,

WILLIAM

Bank &

Discount

V.*

Gibbons & Co.,

B.

Geo.

York

The

MONROE

Chemical

G.

Loewi

& Share Corporation,

Bond

Jr.,

Aubrey G. Lanston & Co., Inc., New York
SLEZAK,

L.

Indianapolis
RENCHARD,
New

E *

Pollock & Co., Inc.. Beverly Hills

E.

Wm.

POOLE,

KARL

PARKER,

WILLIAM

POLLOCK,

Blair, Rollins & Co. Incorporated,
New

SIMPSON,

J.*

Seasongood & Mayer. Cincinnati
REISSNER,

Thursday, December 17, 1953

...

Los

Angeles and San Francisco Stock Exchanges

89

Number 5282

Volume 178

.

.

The Commercial and Financial Chronicle

.

(2445)

Continued

from

What to
It

ter.

lar,

6

page

Expect from
Agriculture in 1954

recognizes

the

basic

im¬

portance of food.
is

there

I have a feeling
growing realization of

a

world.

The degree of tension

from

vary

time

that

means

bankers.

and
that

It

is

should

we

proaching
level.

the

There

large military expen¬

judgment

my

not

shrink
our
money
force prices down to

will
This

time.

to

serious economic impli¬

very

cations
would
be
involved, in¬
cluding
disastrously
low
farm
prices, unemployment in our ci¬
ties, and low profits for business

attempt to
supply
and

anything

pre-World

ap¬

War

II

just too many
involved for all our
are

incomes

tural
1953

than in

will

see

as

will

1952.

further

rapid.

be

lower

The year

declines

in

1954

but

not

8'

ing to say is that there will be a»
strong tendency in that direction
largely due to price adjustment :

After

this, barring an in a deflationary period following
rather
war, I would guess that a
long
and
pronounced
agriculture may be headed for an¬ period of inflation.
other period similar to that which
It is my guess that there will
all-out

existed

and 1929— be plenty of pressure for govern¬
fairly good mental intervention in the pricing
industrial activities, one in which of farm products. We will
likely
farm
costs
remained
relatively have production control program s
high in relation to prices received —not because of enthusiasm fev
one

between

in which

1922

we

had

adjustments
be required, and this
economy.
On the other hand, I by farmers. Farm prices during them but by default. We
(you an f
heavy taxes.
am
not at all sure that we can
this period averaged between 87%
I and thousands of
others) have
Let us briefly review what has
trated
by
the
great
emphasis
maintain the peak at which we
and 95%
of parity.. Those who not been able to come up with a
placed
upon
nutrition,
school happened to wholesale prices in are now. If we know enough about contracted
high indebtedness dur¬ better program that is politicallythe United States since 1800 (Fig¬
lunch programs, and the like.
monetary management, I think ing
the
inflationary period of acceptable. Herein lie a real chal
ure 1).
It is easy to see that prices that would be
I simply mention the above to
preferable to dras¬ World War I were in trouble. lenge to all of us.
have
been
anything but stable. tically reduced
call to your attention some of the
prices.
I cannot see a
Wheat and, later, cotton were in
very bright fu-'
You will notice there have been
reasons
why we have so much
trouble.
I expect somewhat the
ture
for
the
small,
inefficienr
four inflationary peaks, each asso¬
Long-Term Outlook for
discussion on these problems of
same thing to happen again.
farm.
Our new technologies i-r
I do
ciated with wars: The War of 1812,
Agriculture
agriculture — discussion of such
not feel that this will be a disas¬
agriculture are requiring
mor<the war between the states, World
Let us look now to the longer trous situation for
things as widely fluctuating in¬
agriculture, but and more capital and larger farm t
War I, World War II and Korea.
term outlook for agriculture, for it is a
come
in
agriculture; the boom
long way from -the condi¬ in order kf"operate efficiently
The second thing to notice is the
and the bust; the poverty areas;
many of the commitments in agri¬ tions farmers experienced during This does not mean
big corpora
fact that prices are now at a
very
the failure of farmers to adjust
culture are of long-term nature. the war years.
tion "farms, but larger commerci?1
high level in terms of history,
The long-time outlook for agri¬
The
efficient
deadily to changing conditions; even
well-organized family farms. Actually, the pro¬
though there has been some
culture varies greatly according farm that has not gone into debt
the lack of conservation; unequal
portion of the farm work done b /
decline in the past two years. The
to the approach taken. There are
rural services in schools, health
too heavily at high prices will be
the
farmer
and
his
movement
of
family i;
the
general price
some who envision an acute short¬
and
the like; our foreign trade
able to operate at around 90% of
greater today than it was 40 year •
level is, in my judgment, a most
age of food; tbere are others who
problems; irrigation problems in
parity.
Agriculture has changed ago. The farmer who has an ef¬
significant
factor
affecting
the
view
the west; the need for capital; and
the
great
production ca¬ a great deal since pre-World War ficient operating unit and is in a
economic well-being of the farmer
II.
Farm
all the other things we hear about
pacity of this country and predict
output has increased position to equip it in terms c
and the businessman.
disastrous
agricultural surpluses. around 44%. Food livestock pro¬ modern know-how should be ab1
practically every day.
During periods of rising prices,
I do not foresee a
I submit to you
duction is up about 49% and crop to
shortage of food
get along in a rather satisfae
t^at these prob¬ farm prices go up faster than
in
this country.
lems are real. While I do not mean
This does not production is up around 32%. To¬ tory manner during the next dec¬
farm costsXFigure 2). This makes
tal man hours used in agriculture
to imply that they all have to be
mean, however, that all the world
ade.
for higher^ncomes in
agriculture. will
be well fed, well housed and
has decreased
solved immediately or that they
17%.
The use of
We have a tremendous produc¬
This happened during World War
well clothed.
can
be
solved
farm
by
government, I,
machinery
has
increased tion potential in American agri¬
during the recovery from the
My
remarks
they are nevertheless with us and
concerning
the 76%. The use of fertilizers is up culture. Professor Heady of Iowt
depression
of
the
30's,
during
will probably occupy much of our
long-time outlook for agriculture 230%.
The acres
of crop
land State College recently publishe 1
World War II and again with Ko¬
are based on the
remained
attention in the future. They can¬
premise that we have
an article in which he stated that
practically
un¬
rea.
The opposite is true during
will not have an all-out war.
not be solved by flippant remarks
changed.
Crop
production
per
with the existing know-how an 1
periods of falling prices; that is,
It is wholly unrealistic, in
acre
has
increased
29%.
The the same acreage of land Iowi
my
by the politician, but they are prices received
by farmers drop
judgment, to expecfjarm returns American people today are vir¬ could produce, year after year,
worthy of some of our very best faster and further than
prices paid to continue
at the levels that have
efforts.
tually eating on science, and they 50% more grain and 170% mor
by farmers. In other words, farm
existed during most of the past will continue to do so to an even
Price History
forage in the form of hay and
costs stay high while farm
prices
inflationary decade. From 1942 to greater degree in the future.
rotation pastures than she is now
Now let us turn to the second
decline.
This
happened in 1920 1953 farm
prices average 107%
Again, I would like to remind producing. Production figures c?
part of my talk; that is the eco¬ following World War I, in the de¬
of parity. Parity is that price for
this kind cause one to wonder ? *
nomic outlook for agriculture, and
you that this is not what I would
pression of the 30's, after World
farm products that will give them
American
like to see or what I hope hapagriculture
does
some
of its implications.
I want War II, and is happening at the
the same purchasing power that
have the capacity
to make one thing clear:
ghat is, present time. The fact that all they had during the base period ens. It is just a guess as to what than is needed for to produce mor -*
both the Amer¬
we may likely see.
I do not know what is /going to
Nov do I want
prices do not move together uni¬
of
1910-14.
Farm
prices were to leave the impression that I be¬ ican economy and the export ma happen in the future. If/I knew, I formly is of great significance to
92%
of parity
in September of lieve history must repeat itself. kets during the next decade. Fro 1
probably would( not
here, and American
the

importance

of

population well fed.

having

our

This is illus¬

ditures

will

necessitates

¬

,

agriculture. The amount

I

certainly woulo-not be a college
professor.
It is perhaps a good
thing that we do not know what
is going to happen in the future.
All

we

can

do

is to

present some

of the economic trends

they

what

that

I

have

to

has

say

nothing to do with what ought to
be, what is fair to the farmer or
the
banker, what people would
like to

hear, what will elect

some¬

to office, or
personally like to
see take place.
There are a lot of
people talking about the future
who discuss what they hope will
body

or

what

I

party

some

out

war.

If

we

do have

all-

an

it is my guess that we
will again have inflation
prices
will go up, and considerable in¬
war,

their

year's

has

management

work

I

do

not

this

fluctuated

that

al¬

able

to

will

do

I

some

next

is

year,

guess

index

of

going to
I would

be

lot

a

better

be

what

happen to other things. Nor
mean to imply that there is
magic formula for making

price

levels

To

movements

are

cause:

in

move

direction.

a

overall

average

both

result

a

employment,

the

desired

price

me,

of

level

result and

a

changes

in

consumers

income,

the supply situation and

the like;

a

in

cause,

movement

that

the

affects

direction

business

of

will

marks will

regardless

occur,

governmental

controls.

be based

upon

an

Armistice

end to

as¬

con¬

world will continue

of the next decade.

for most
Korean

re¬

the

sumption that the unsettled
ditions in the

of

My

will

The

not

bring
the tension existing be¬

tween the various segments of

the

about

quarters

riods,

that

we

hear talk

dollar has

not al¬

been defined, but some infer
a

sound

dollar

is

hundred percent

a

power

dollar.

one

that

purchasing

in terms of the old prewar
All

I

can

prices' fall until
"one

the

hundred

we

cent"

is

that

if
have the old

say

prewar

dol-

,

Inc.

Investment Securities

is

It

ST., LOS ANGELES 14

between

parity is

LOS

ANGELES

AMERICAN

STOCK

DIRECT

STOCK

EXCHANGE

EXCHANGE
PRIVATE

(ASSOCIATE)

so-called
this

has

is fair

a

100%

REDLANDS




CLAREMONT

SANTA MONICA

Continued

try¬

on

page

DISTRIBUTORS
o

that
and

95%

SECURITIES

of

of

parity.

Now

Bingham ,Walter g Hurry, Inc.
Member Los Angeles Stock Exchange

nothing to do with what
what the farmers ought
I

simply

think

this

621

is

S. SPRING-LOS ANGELES

realistic appraisal of what

more

is

/

of

,

INVESTMENT

some¬

or

have.

to

TELETYPE LA

-

TRinity 1041

,

224

likely to exist.
lot

a

ment's
far

am

not

in

the

of faith

who

one

Pasadena: 623 Security Bldg.

—

SYcamore 34196

govern¬

ability to keep things too

out

might

of

line

where

from

otherwise

under

be

free economic conditions.

they
more

A most

significant factor in discussing the
outlook

ment of

ships.

American

for

what

is

I

the

call

agriculture

normal

move¬

prices and price relation¬

If

assume

that prices

slightly

over

are

if

to de¬

the next dec¬

perceive

can

Underwriters and Distributors

have checked the in¬

we

flationary spiral in prices and

COMPREHENSIVE

situation in

a

which prices received by farmers
are low relative to farm
operating
go

know

We

wages,

such

to

as

are

a

farmers could

^industrial

which

in

situation,

had

business

guess as to

to

in

prevail
a

high

my
even

level

activity
one

CALIFORNIA

MARKET

Members

'

•

/

New York Stock Exchange
Los

623
telephone

SOUTH

and

what the future holds

agriculture, it would
something like this. Agricul¬

Angeles Stock Exchange

HOPE

STREET,

LOS ANGELES

Long Peach

Hollywood

Claremont

17

bell system teletype la

new york correspondent: bache

Santa Ana

definite

American Stock Exchange (Assoc.J

madison 7111

of

income.

make

THE

Lester, Ryons & Co.

come

be faced with high

This

for American
be

mar¬

also slow to

situation

consumers

I

SOUTHERN

COVERAGE

rates,

costs relative to prices

received.

If

freight

It is not at all difficult for
see

OF

prices

once

rents, machinery and

keting costs,
down.

that

of the costs of doing

up, many

business,

good

WIRE

am

pe¬

World

ship between prices received and
prices paid by farmers than the

KIDDER. PEABODY & CO., NEW YORK
PASADENA

85

judgment,
could
though we have

MEMBERS:

techniques

help. What I

normal relation¬

more

a

operating

TELETYPE: LA 68—LA 35

war

and

judgment

my

where

me

•

I

standpoint
of>% production
therefore, I would say that v**
the ability to produce; tl ^

have

parity. If

world

War

the

not be
period.

1922-29

number of

a

which should

they average abou 93% of parity.

costs.

Wagenseller

of

We have

the

farm

II, farm prices average 90%
parity. Leaving out the great
depression and the war periods,

cline

Serving Southern California since 1927

1952,

like

War

ade, I

TRinity 5761

95%

two

World

the 43-year

to

exactly

of

we

626 S. SPRING

In

1910

average

omit

we

deci¬

returning to the sound dol¬

The sound

ways

from

Unfortunately I
some

lar.

degree.

a

prices

has

In

has

the

great

sions.

...

flation

at

The future will, of course,

in danger of worshiping
shrine
of
parity to too

are

period

overemphas¬
price

of

prices

time

in

But if you would tell

the

wholesale
this

to

mean

subject

movements.
me

year.

We

and

most directly with movements
the general level of all prices.

would

happen rather than what seems
most likely to occur.
My remarks are based upon the
premise that we will not have an
all-out

for

ize

clear

also like to make

would

left

this

that farmers have had

money

ap¬

to affect the future.

pear

I

as

of

Santa Monica
Redlands

17

& co.

Pasadena

Glendale
Riverside

Pomona

Coror.a del Mar

8

86

The Commercial and Financial Chronicle

(2446)

Continued

from

supply—that is the over-all pro¬
duction of agricultural products—
should
not
be
greatly different

85

page

What to Expect

from
Agriculture in 1954

amount

will

and

depend

upon

price relationships.
The well-being of the Ameri¬
can farmer is closely tied in with

market for farm prod¬

the export

While the domestic market

ucts.

all odds the most important

is by

market

the farmer, the export

to

influence,

does

market

very

ma¬

terially, the prices received. I am
the pos¬

not to enthusiastic about

sibility of

great volume of ex¬

a

ports, unless we continue a give¬

The large volume

away program.

agricultural

of

the

for

exports

past several years has been due
Europe has

that

fact

the

the fact

greatly
of

our

facilitated the
products.

dollar

have

movement
of the

other

coun¬

they

exchange

tend to seek needed food

elsewhere and

which

Because

dollar shortage, when
tries

another we

credits,

extending

were

supplies

their dol¬

conserve

1960

than

While the export

mar¬

ket does not look too bright on a

commercial
feel that

basis,
long

as

nevertheless

as

I

present inter¬

by

million

179

total of

a

people to feed.

Some

be

about

past

The

four

had

people in

1950

have five people to
Our

population is

the

at

feed by 1975.

increasing

now

1 Vz %

about

of

rate

will

we

per

While there is no assurance

year.

that

this

continue, it does ap¬

that the in¬

almost certain

pear

creased

provide

will

population

expanded home market for the

an

tain

can

we

main¬

fair degree of business ac¬

a

tivity, with

a

good distribution of

consumers

purchasing power, the

American

farmer

have

should

that

It is estimated

ucts.

for food

quirement

our

re¬

fiber in

and

the domestic market will be

10%

larger in 1960 than now.
I

not

am

concerning
American
I

are

over

of

some

our

general

little bit

a

state¬

returns to be
in 1953.

as

pessi¬

more

I

expect

slightly.
pessimistic on the

more

business
little

a

situation

sticky prices

and

empha.us

more

on

they affect farm

Now

let

review

us

ment that has taken

culture.

The

ceived

the

adjust¬

place in agri¬

index

by farmers

Outlook

considerable quantity of our ex¬

cess

production

find

will

a

use

in foreign areas.

outlook

One of the optimistic factors

the

agricultural

tremendous
tion.

lion

We
more

picture

increase

now

Turning

in

is

in

our

popula¬

have about 28 mil¬

consumers

than

we

had

now

'53)

ruary

the

last

prices

on

re¬

1910-14

a

about 8%, and during
months

seven

about

now

high

point

19%

reached

below

in

the

February,

for

for

fact

The

that

farm

prices are
declining, in itself, is not a par¬
ticularly disturbing factor, except
that this decline has taken place

very

time

when

business

incomes

consumer

high level.

decline

is

at

are

a

The recent price
first experi¬

the

not

since

enced

activity

World

War

II.

From

January, 1948 to December, 1949,
prices declined an average

1954

agriculture—that

of

is,

prospects for 1954, I believe many
farmers

are

conditions

have

had

ment

in

more

pessimistic than

warrant.

First,

considerable

agriculture.

24%.

readjust¬

still about 4%

are

Korean

level.

farmers

Now let

be

some

above the pre-

Prices

paid

The 1952 production

farm

of

products

1951.

increased

The

MONTANA

production

considerably

were

American

supply
Maintained

Institutional

on

all

Securities

us

1953

and

Security Building, Denver 2, Colorado
Telephone Keystone 3201

296

production
estimated

largest
in

and

farm

This will

pression—there

2

prices

will

from

be

not

be

3%

or

of

lot

a

about
The

large in 1954

as

has

Bureau

slightly

1952-53

to

be

many

cilities at its disposel for this type
of

analysis than I do.
ing their material I
incomes

sumer

little

it

would

if

con¬

reduced

be

not

a

enough to

materially affect expenditures for
food.
this

Anyone who has worked in
that

knows

area

predict within
In

good

agreement

any

for

event there is pretty

The exports of
ucts

not

are

we

depression.

agricultural prod¬

expected to be about the

are

It

that

major

a

during this

appears

year.

the

that

1953

year

will be less favorable for farmers
than

1952

the

due primarily to
farm prices while

in

The

remain high.

expenses

in

vary

their

for

1954.

comes

in

Some

guesses

1954 will be the

in

1953.

will

be

that farm in¬

say

My
a

the

ments

appear

same

is that

guess

decline.

small

a

Under

feeling that

to be
many

the

to

for

of

conditions

decline

land
look

discussed

in

1954.

The out¬

agriculture is not

roses

nor

is

it

a

Impacts
If

the

I have

pessimistic concerning agriculture

of

Financing Agriculture

on

foregoing is somewhere
being right, what are some

the impacts on financing agri¬

culture?

First, let

us

consider

they affect bankerrelationships:

farmer

(1) Now is not the time to
for

the

cyclone

neither is
it the time when you can loan
money to just anyone who comes
along and expect to have it paid
back from

inflationary profits.

(2)

Efficiency in farming will
be much more important than it
has

been

for

most

of

the

past

decade.

(3)

It is

farmer

to

It

money.

curtail

business for the

good

spend
is

to

money

false

make

economy

fertilizer,
machinery and items

needed

needed for efficient production in
order to reduce expenses.

(4

In Michigan
to

buying used
We believe there will

machinery.
be

some

(5)

advising

we are

consider

good buys.

Farmers should

their credit into

few

consolidate
loans

on

rather

page

INCORPORATED

^INVESTMENT

these

carryovers

seen.

The

remains

not

supply

look

Teletype DN

580

lActive Retail Outlets

car¬

programs

over-all

COLORADO

KE^stone 2395
VgSf-V'

the

The effect of

control

does

Crop

season.

large.

for

BANKERS

BANK BUILDING

''

nje^y¥ar

than

—

v

Telephone

x

p"

on

to

be

¥M. J.

ERNEST E. STONE

MAY§£*

HOWARD J. HANNON

situa¬

greatly

dif¬

.

1'*

ferent from that of this past year.
If

GARRETT-BROMFIELD & CO.

we

the

assume

agricultural

has adjusted to this

economy

MAIN

"

6281

sup¬

BELL, DN
Private wire to Bonner &

DN

290

369

Gregory

ply situation, then its effect would

offering Western Municipals

be

neutral.

If

carryovers

to

accumulate,

would

and Western

tinue

be

Corporate Securities

Now
mand

let

or

Exchange

our

near

consider

us

side.

business

Member Midwest Stock

con¬

PETERS, WRITER & CHRISTENSEN, INC.

depressing.

During

indexes
record

economy

the

the

1953

were

levels.

effect

I©

most

either
After

at

ijrd*

GARRETT-BROMFIELD & CO.
Security Building, Denver, Colorado




time.

Corporation Securities

has been operating

By 1954

we

Dealers in

all,

under forced draft for quite some

If

DENVER 2, COLO.

Loveland, Colo.

de¬

and Municipal Bonds

should be past

the peak of our defense
expendi¬
tures.

Definite

taken to check

steps

have

been

inflation, although

recently steps have been taken to

ARIZONA
NEW

£

COLORADO

MEXICO

to

for

expenses

STONE, MOORE & COMPANY

change

run

cellar,

Continued

gttkf?. NATIONAL
%&ENVER 2,

a

few things as

for the coming year-.

third

of

the

near

people are too

1953,

bed

a

crown

thorns.

any

adjust¬

over.

situation

expect the price of farm

farmers

the

of

worst

as

there

In

to

I would

was,

drop

farm

the

the

ought to be.

cannot

narrow ranges any¬

way.

headed

you

few

Remember,
discussing what I would
have
happen or what

not

am

like

that

even

a

later

to

concentrates

larger

are

crop

tion

I

From read¬

gather

were

of

for

fa¬

more

—

1,

Little

Feed

feeding

ryovers

in 1953.

as

up
or

sooner

facts

of

will have to be faced.

de¬

a

but

out¬

close

Oct.

on

animal unit for the

the

keep the price

may

we

programs

the

on

total

come

1952.

livestock.

are

merged with

be

wholesale

and

5%.

record, exceeded only

on

1948

per

Sidlo, Simons, Roberts & Co.

to

is expected in the over-all dutput
of

now

a

equaling the 1952 production. All

was

COUGHLIN and COMPANY

lower
3

could

The

period

a

Governmental

years.

the

over

briefly the

The

will

crop

Bell Teletype DN

that

more

consider

situation.

in

put

maintain

can

economic

index

for trouble.

price of wheat is higher than

years,

living

complaint

market.

Next let

Municipal Bonds

wheat is headed

levels.

The cost of

for

room

we

be down about 2%

com¬

combination

products to be disposed of
&

of

much

compare
the agricul¬
tural
situation
with
previous
conditions. It is my judgment that

My guess

output

be

when

1953

event

drop in exports meant that there
MEXICO

real

to

Actually, there is likely

economy.

may

the

were

approximately 30%
with the high level

existed in
of

products was 4%
the previous year.

than

down

Markets

by

agricultural

pared

NEW

expenditures.

that

no problems
agricultural sector of our

the

to

on

us

cent decline.

Markets Maintained

WYOMING

effect

some

conditions

By the foregoing
imply that there
agitation or discontent,

mean

no

economy

War,

look into what might
of the causes of this re¬

Exports

COLORADO

in

lowering of income

the

same as

Korean

9% above.

are

higher

IN

that

in¬

of

that there will be

or

ad¬

automobile

have

will

consumer

is

the

The

outlookers

of

Active

the

With

farm prices increased rapidly, and
even with the present decline
they

we

Second, the

in

the Bureau feels that

1951.

a

will be

all-time

an

they have
declined about 3%. So farm prices

am

to the shorter time

There will probably be some

justments

a

disastrous year.

experienced.

high of bounce and vitality in the 1954
313 in February, 1951. In the first business sector.
On the other hand the Bureau
year
after
that
they
declined
about 8% from the peak, in the of
Agricultural
Economics
ex¬
consumer
income
to
be
second year (February '52 to Feb¬ pects
reached

base

farm
a

be

may

terms

I do not

investment and residen¬

liquidation

be

not

during the wartime pe¬
but neither will it be a

riod,

I do not expect

depression, but I do anticipate
some slackening from peak levels.
housing will be down moder¬
ately, unemployment up a million
or
so.
Inventories are not likely
to expand in 1954 and a moderate

will

for American agricul¬

existed

a

Business

in

ture

1954

year

year

from

as

costs.

and

outlookers.

outlook

in 1954

same

bit

place

for

national tensions continue to exist

strong as in 1953.

dustry.

at

with enthusiasm

its

Agricultural

than the Bureau.

a

the 1954 demand to be

to

taxes

pessimistic

agriculture, neither

bubbling

as

next

the

have

I

am

The

good

for the products farmers
sell, but not quite as

strong

farm income to be down

decade

unduly

of

in

just

am

?are

fairly good markets for his prod¬

last

We have

Korea.

I expect

tial

about the

high rate of population

increase will

this

during this

as

same

Bureau

mistic

we

been

ments expects farm
I

is, where

that

the

Economics

"fifth

plate";

has

year.

people dramatize our popu¬
lation increase by calling it the

lars for purchase of our industrial

products.

have, or

now

we

about

that

estimated

is

it

Third, the domestic demand
for
agricultural products should
not change a great deal in 1954.
Fourth, the export market should

in

truce

a

year.

will have 16 million more

we

not re¬ American farmer. If

stored her production, plus
that by one means or

to

It

1940.

in

production
the existing

of

type

what

from

the money market.

ease

Thursday, December 17, 1953

...

MONTANA

UTAH

NEVADA

WYOMING

87

^

Volume 178

Number 5282

.

.

The Commercial and Financial Chronicle

.

(2447)
FIGURE

I —WHOLESALE

PRICES

a

% of 19I0-1L

responsibility to

other

bankers

tunity

this

in

(2)

I

be

that

sure

realize

the

their

oppor-

farms,

how

to

changing

conditions

maintain

area.

the

87

adjust

in

to
to

profit,

greatest

order

is

the greatest assets that this
colleagues do not seem country possesses. If farmers in¬
to think it is
important, that the sist on high support prices, then
amount
of
capital
required to we w.111 have to accept the accomoperate a modern, efficient family panying controls. In my
opinion,
am

concerned,

although

one

most of my

farm

late

be

may

expect
in

life

a

friend

of

than

more

individual to

one

time.

mine

As

can

farmer

a

it

put

we

accumu-

the

other

day,

"It's getting so that if
have enough money to
farm,
don't

have

ment

of

to

we have never experienced the
type
of
controls
necessary
to
maintain some of the existing
prices during a non-inflationary

period.
(4) Another big challenger is

you

you

farm."

An investthe
need
for
bringing
about
$60,000 to $100,000 greater consistency between our
uncommon for the modern
farm programs and our interna-family farmer. That's more than tional policies. A sound interna-

is

from

not

of

many

will accumulate

us

in

a

life time.

Maybe we need to give
thought to some kind of a more
less

or

permanent

debt

arrange-

ment for agriculture.

(3)

There

is

problem

of

meeting the needs of agriculture

mo

Source:

Warrent and

Data for 1953

are

1833

1920

have the

1960

Pearson, 1798-1889: BLS., 1890 to date.

preliminary.

Neg. 47533-xx

I

are

big

public,

complicated
II

—

FARMERS'

PRICES

nomic
one

% of 1910-U

sure

price

that

It is

we

from

and

that

the

tremendously
both

political

we

of

one

problems ' facing

American
FIGURE

not

am

close to it.

even

the

Bureau of Agricultural Economics

to the farm

answer

problem.

the

eco-

angle.

It

is

to di's-

cannot afford

regard. Agricultural problems cannot be met by slogans.
It is important to all of us that we face

.

303

these problems in a realistic man-

Not the least of them is the

ner.

/ / ''

Received*
] 'aid

\

A

/

200

J

\

/

role that the government is going
to play in regulating farm prices,

J/

High,

' '

free

market

trols.
with

,-v

fixed

A

millions

decisions

of

to

the
con-

agriculture,

individual

making

as

above

involve

progressive

businessmen

100

prices
level

should contribute to, not hinder,
this

the

without getting all tied up in governmental
controls.
We do not

1800

tional relationship is undoubtedly
of the key problems of our
time.
Agricultural programs

one

how

to

operate

The

!.n order to exP°rt

American

we

must also

imPort(5) It is not enough in our modern day world just to be a good
banker.
Bankers by the very

nature of the trust placed in them
should be leaders
leaders in
.

promoting
broad

.

.

understanding

problems

with

of

faced, of our international
sponsibilities, and the like,

Prices

.

does

.

It

.

viduals

lie

not

rests
and

in

with

in

communities.

Washington,
strong indiproductive

good
A

bank

that

building

its

business

but

is

is

agriculture

is

building a strong America,
The

outlook

for

bed of roses,
crown of thorns.

not

a

nor

is

State and Municipal Bonds

S

100

\

..

/

——-—s,

U. S. Government Bonds

/
Parity

50
1910

*

A

1920

Monthly data.

1930

Neg. 47485-xx

Includes interest, taxes, and wage rates,

19UO

Bureau of

1950

Agricultural Economics

Annual Av. data, 1910-23;

by quarters, 1924-36, 1937 to date.




Continued

from

86

page

What to
From

Expect
Agriculture
BOND DEPARTMENT

In 1954: Cowden
than

having

credit

for

many

Seattle 4,
of

sources

Member

(6)
of

We

farmers

our

covered
not

have found

their

proportion to the

placement costs.
of

not

are

by insurance.

increased

Washington

Telephone Main 3131

production goods.

Federal

Teletype SE 489
Deposit Insurance

Corporation

that many

adequately
They have

insurance

increase in
Bankers

in
re¬

can

be

help in calling this to the at¬

tention of

farmers.

(7) Remember that it is not the
size of the loans

the

ability to

the loan.

repay
a

poorly

farmer
than

a

but
the interest and

A

small

organized,
involve

may

much

Specialists in Securities

that counts,

pay

loan

of the

inefficient
more

larger loanto

farmer.

to

a

Pacific Northwest

risk

good

i

•

Finally let us consider some of
broad
implications for the
banking business:

UNDERWRITERS

DEALERS

DISTRIBUTORS

the

(1)

The

credit

needs

of

agri¬

JUNE S. JONES & CO.

culture will expand. If the bank¬
ers do not meet these
needs, then
sooner or

will.

later

Now, the

rabbits out of
of

other agency
banker can't pull

some

money

a

has

INVESTMENT
INVESTMENT

hat—the lending
be profitable

to

TRUSTS

•

SECURITIES

CORPORATE

MUNICIPAL

STOCKS

&

BONOS

BONDS

from

a business point of view to
both the lender and the borrower.
This is like the minister

preaching

SINCE

U.

S.

BANK

going to church. He does not
reach the people who need it be¬

BUILDING

on

cause

that

they aren't there.

you

interest.

are

You

AT.

The fact,

here indicates

your

do, however, have

)

is

hulding its community is not only

received

\

re-

(6) The real strength of America

Parity
150

the
we''

which

are

farm

individual

objective.

farmer and all of us have a real
m erest in maintaining a large
volume of agricultural exports,

1927

PORTLAND
1318

4, OREGON

it

a

\

*8

The Commercial and Financial Chronicle

(2448)

Continued

from first

by Mr. Bryce that the main offices
the Association, now in Chi¬
cago, will be moved to Washing¬

page

New

of

ton

The Investment Bankers

by mid-summer of next year.
staff, he stated, will be
kept in Chicago,
but principal

Charles

activities
be

will

Association

the

of

the

in

concentrated

Washing¬

ton, D. C., office.
Debt Limit

Increase in Federal

Joseph

*nd

appointed Manager of the
department.
Subsequently

was

|>ond
this

bank

become the
Continental Illinois National Bank
and

Trust

was

merged

made

22

Company, of which he
Vice-President. After

a

Salle

La

on

years

to

Motor

come

has been
IBA affairs, has held
positions of leadership
within the securities industry, and
through his efforts in behalf of the
investment b u s i n e s s, is widely
known throughout the financial
community.
He has served on
various

committees

of

both

>

full

in

addresses

M.

text,
given

and Committee Reports, are
in this issue,

starting

on page

18.]

the

of

Association

America,

Chairmanned

by Robert H. Craft
American
Securities
Corp.,

of

New

York

in lieu of an
extented report issued the follow¬
ing policy statement:
facilitate

the

ability

and

conditions

market

on

Southeastern

&

Competitive Bidding

the

increased

as

soon

as

James

E.

Scharff

Roddy,

&

cow

a

Governor of the New York

Stock Exchange.

as

Financial Consultant to
1931-

the Federal Government. In
32 he was on the

Committee

Special Advisory

the

to

President

on

•Government Finance, and in 1942

he

appointed Securities In¬
dustry
Liaison
Officer
to
the
Treasury Department.

talk

industry is all in
it, and have an unlimited

aanount

it

of

matters

as

stand.

only the unintended bad ef¬
fect of the sealed bids system and
of delay in the effectiveness of
registration statements that needs

of

William

as

Southwest

that

\

a

added to the Association's present
of

roster

Treasury

George

M.

In

1.

committees

Hum¬

Announcement

was

&

Committee

Yost

State

&

Stock Exchange Relations Com¬
Charles
L.
Morse, Jr.,
Hemphill, Noyes & Co., New York.

Hall,

the

of

was

ap¬

also

made

ucation

National

public

r e

tions.

1

Com¬

covered

GROUP

Mead,

Chairmen

Inc.,

Smith

P.

Norman

were

W.

Miller

Earle

Since 1885
Dealers

Distributors
and Underwriters

Canadian

Educational

on

PrescnttlWright.Snider Cn.
INVESTMENT

gun

last

this

Baltimore

Ave.

Kansas

City

and

CORPORATION

kits
work

The

that

cooperation
izations

PREFERRED
MUTUAL

and

COMMON

INVESTMENT

in

STOCKS

FUNDS

be

to

used

were

in

hand

on

Chicago office of the Asso¬

ciation.

BONDS

again published
file and

speech

a

educational

vealed

MUNICIPAL

and

educational

BANKERS

at the
916

year, was

year

the

Committee
it

with

also

various

in a variety of
public interest.

Site and

re¬

continuing its

was

organ¬

projects

William
Bros.

&

Legislation

At the

conclusion

lar

sessions

the

Association's
voted

ernors

Convention
—

Kansas

—

New Mexico

—

Oklahoma

of

the

Committee:

Taxation

Shaughnessy

of

Committee:

Committee:

Charles

S.

/:

Joseph A.
Heitner &

Chi¬

Glynn, Jr., Blewer,
Glynn, St. Louis.

New
William
&

T.

England
Kemble,

—

Texas

set

are

New York
Robert W.

Fisher, Blyth & Co.,
Inc., New York.
•'
Northern Ohio
Dana F. Baxter,

Maxwell, Tucker,

&

Hayden, Miller

Co., Cleveland.

Anthony & Co., New York.

Ohio Valley

Investment Companies Commit¬
tee:
Robert
L.
Osgood, Vance,

Dennis

E.

Murphy, The Ohio
Company, Columbus. ^

Company, Boston.
Pacific

Membership: Edward C. George,
Harriman Ripley & Co., Incorpo¬
rated, Chicago.

Elbert H.

Brewer, Phelps, Fenn

Co., New York.

Northwest

Greene, J. R. Willis-

ton, Bruce & Co., Portland.

Rocky Mountain
Donald F.

Brown, Boettcher and

Company, Denver.

the

and Other Midwestern States

in

GROUP
The

by

CORPORATES
Industrial, Public Utility and Railroad Securities

the

GOVERNORS

respective
Governors

as

ciation

Bank and Insurance Stocks

dates

following have been elected

their

serve

The

1954.

Nov. 29 to Dec. 3, 1954.

Groups
of

the

UNDERWRITERS and DISTRIBUTORS
Corporation and Municipal
Securities

to

Asso¬

beginning at the close of

1953 convention:

Central States

Edward

C.
George, Harriman
Ripley & Co., Incorporated, Chi¬

Trading Markets in Local Securities

cago.

Paul

LUCAS, EISEN & WAECKERLE

&

INCORPORATED

Eastern
Gordon

BIdg., Kansas City 6, Mo.

Telephone Baltimore 4096




&

Bell Teletype KC

Ste™ Brofes
MEMBERS

MIDWEST

STOCK

b

Co.

EXCHANGE

Lee H.

Member Midwest Stock Exchange

916 Walnut Street

L.

Mullaney, Mullaney,
Company^ Chicago.
Ostrander, William Blair
Company, Chicago.

Wells

42

Pennsylvania

Crouter,

Townsend,
Crouter
Philadelphia

De
&

Haven

Bodine,

Mississippi Valley
Chapin

S.

Newhard,
Cook & Co., St. Louis.

1009 BALTIMORE

AVE., KANSAS CITY 5, MO.

Teletype KC 273-4
&

Newhard,

Estabrook

Co., Boston.

Baird, A. G. Becker &

John Courtlandt

S.

-

Mississippi Valley

Incorporated, Chicago.

Sanders &

Shaughnessy,.
Company, Inc.*

Gov¬

to

Watling,

E.

&

st. Paul.

the regu¬

return

Stein''

Minnesota
Lawrence

Industrial Securities Committee:

Orlando

Jr.,

Bechtel,

Conversion,

Board

to

C.

Hollywood Beach Hotel in Holly¬
wood, Fla., for the 43rd Annual

MUNICIPALS
Missouri

of

Barclay,

Boyce, Philadelphia.

Michigan

Wilson, Union Securi¬

Corporation, New York.

Andrew M.

&

Convention

Pennsylvania

K.

Charles

Municipal Securities Committee:

Dates of Next Year's

Bacon, Whip-.-

Lerchen & Co., Detroit.

Finance

Co.

*

pie & Co., Chicago.

Benjamin H. Griswold, 3rd, Alex.
Brown & Sons, Baltimore.

Activities for Group Officers, be¬

.

Central States
William D. Kerr,

Co.,

of Pennsylvania; the
cago.
picture, "Opportunity,
Governmental Securities Com¬
A."; the correspondence
course
conducted
by the Asso¬ mittee: Herbert N. Repp, Discount
ciation
in cooperation with the Corporation of New York, New
University of Chicago; and other York.
training programs.
Group Chairmen's Committee:
the Annual Guide

William

Jr.,

Kilburn, Greenshields &
Co. Inc., Montreal.

S.

The Committee announced that

Jardine,

Peter

motion
U.

,

' ^

R. Staats & Co., Los Angeles.

Car¬

&

Vrtis, Glore, Forgan & Co.,

University

Association's

California
J.

Joseph
Com¬

the

of

regional groups during 1953-54;

v

Committee:

Mead,

Federal

the Wharton School of the

at

Co.,

Committee:

Milwaukee,

Warren

ties

a-

Co.,

CHAIRMEN

Eastern

Federal

H.

the Institute of Investment Bank¬
ers

&

Baltimore.

Among
projects

the

Greenshields

Education

and

&

following have been electee
by their respective groups to serve-

COMMITTEE

T. Johnson, The Milwaukee

roll

Herbert

Stanley

The

following

Conference

Asso¬

Committee:

Morgan

New York.

as

pany,

Committee:

Legislation

Mullaney, Mullaney, Wells
Company, Chicago.

Montreal.

briefly
the major cur¬
rent
projects

W.

Fulton, Fulton, *teidJ'

Syndicate

CHAIRMEN

re¬

viewed

R./
York/

Bergmann,

Co., Cleveland.

Jackson, Jr., First
Company, Dallas.

NATIONAL

burn,

the report the

ciation in ad¬
indicated.
Bryce's
recommendation vancing in¬
Syndicate Committee be vestment ed¬

principal speakers at the
proved and Herbert S. Hall of
Convention, in addition to Ewing
T. Boles, the retiring President, Morgan Stanley & Co., New York
and T. Jerrold Bryce, the incom¬ City, was appointed Chairman of
ing President, were Secretary of the new body.
the

Dec.

on

Committee:

Securities

L.

C.

prac¬

to be remedied, he
Mr.

Railroad

to

It is

was

The

inaugural

investment

favor of

On two occasions Mr. Bryce has
served

the

his

W.
Bartow,
Co., New York.

&

Charles

S.
Texas

mittee Chairmen were named for
the
States
Group of the IBA, was Convention, just before its ad¬ Education Committee Reports the year 1953-54:
on
Year's Activities
Chairman
of
the latter 1930-31 journment, T.6 Jerrold Bryce, the
Administrative
Review
Com¬
and has over the years been a incoming
The IBA Education Committee, mittee:
President, expressed
Holden K. Farrar, Smith,
member of various national com¬ hope that some method can be through its Chairman, Norman P.
Barney & Co., Chicago.
mittees of the Association.
developed for taking the kinks Smith, of Merrill Lynch, Pierce,
Aviation Securities Committee:
Mr. Bryce was a Governor of out of the mechanism for com¬ Fenner & Beane, New York City,
William Barclay Harding, Smith,
the IBA, 1931-34, and a Governor petitive bidding.
He emphasized presented its
»f
the
National
Association
of that competition is vital to our report to the
Barney & Co., New York.
Securities Dealers 1947-49, and is entire economic system and that C o nvention
Canadian Committee: Peter KilIn

Drexel

Jones, Inc., New Orleans.

The

Securities Com¬

Clarence

mittee:

Southern

ticable."

Securities

Paul L.

Joseph W. Sener, John C. Leg$»
Company, Baltimore.

they arise, it is desirable that the
be

Public Service

tee: W.

Hemphill, Waldo Hemp¬
hill & Co., Seattle.

maneuver¬

advantage

take

to

favorable

Northwest

Waldo

a

flexibility

more

H.

Gas

Research and Statistics Commit¬

at¬

properly balanced
Federal government
debt struc¬
ture and to provide the Treasury

W.

Natural

Co., Incorporated, New Pressprich & Co., New

Pacific

City,

to

Morton,

,v

and

mittee:

York.

Investment
of

H.

&

Ewing
Company,

Ohio

Committee:
Frederic
H.
Brandi,
Dillon, Read & Go. Inc., New York.

&

Maynard, Shearson,
& Co., New York.

Hammill

present limit on the Federal debt
Comments

President

New

Central

New York Group and the

x

[These

Committee
Bankers

American

James J. Lee, W. E. Hutton
Co., New York.

Morton

Securities

Governmental

.

Wood, of Wood, King & Dawson,
New York City.

in

numerous

The

Dixon,

Committee:

The

Boles,
Oil

Corporation, New York.

William

Securities Committee

Director of Financial
"In order
National
Bureau
of tainment of

Economic Research; also David

Since 1927, Mr. Bryce

active

J.

Raymond

Company;

Saulnier,
Research,

partner in Clark, Dodge &

a

Co.

Ford

Vice-President,

Executive

he

Street,

moved to New York in 1935 to be¬

W.

Securities

Urged by Governmental

phrey; Ralph H. Demmler, Chair¬
man,
Securities
and
Exchange
Commission;
Capt.
Edward
V.
Rickenbacker, Chairman of the
Board, Eastern Air Lines; William
White, President, New York Cen¬
tral Railroad; Ernest R. Breech,

T.

Columbus.

New York

Walter

42nd Annual Convention

Nominating

England

Eaton, Jr., Eaton &

Howard, Incorporated, Boston.

A skeleton

Association of America Holds
chants Trust Company of Chicago

F.

.Thursday, December 17, 1953

..

OMAHA, NEB
Direct Private Wire

Grand 6460

CHICAGO, ILL.
to

Chicago Office

;

&

Volume 178

Number 5282

.

,

The Commercial and Financial Chronicle

.

Southeastern

of

the

Leroy A. Wilbur, Stein Bros. &
Boyce, Baltimore.

in

effect

f

John

the

at

plus

time

$51

or

dividends

accrued

P.

Labouisse,

Orleans.

of

the

added

preferred
the

to

in

Southwestern

an

stock

will

company's

expansion

an

estimated

tional

Texas

plant

and

1955

will
for

be

tional

Bank

WALTERS,

Western

Pennsylvania

Charles McK. Lynch, Jr., Moore,
Leonard & Lynch, Pittsburgh.

H.

Cup

Co.

engaged

Trust

fa¬

JAMES

Third

in

1950

-

51

Company,

National

Bank, Nashville

ELBRIDGE

S.

WARREN, ROBERT H.*

of

WARTERFIELD,

complimentary equipment, such
dispensers and holders.

as

specially

It also

Inc., New York

Geyer & Co.,

First

CHARLES

American

WASHBURNE,

designed

W.

National Bank,

Nashville

HEMPSTEAD

Dean Witter &

Co., Chicago

WASSERMAN, JOHN*

WATERMAN, Jr., PAUL W.

152,465 shares of 5%
convertible preferred stock, series
A* of Dixie Cup Co. ..offered for
subscription at par ($50 per share)

parable

Asiel

Sept. 30, 1953, were $34,882,281, the highest for any com¬
period

in

&

New York

Co.,

Security-First National Eank, Los Angeles

ended

the

1951-52

Hayden, Miller & Co., Cleveland

machinery and equipment for the

Of

53

New York

manufacture of its products.
Net sales for the nine months

Gup Pfd. Sold

-

C.*

the manufacture and sale of
paper
cups and containers and the sale

manufactures

Dixie

1952

GEORGE*

The Eond Buyer,

WARD,

is

PRESIDENTS

Philadelphia

WARNER,

Dixie

PAST

L.*

Fidelity-Philadelphia

WANDERS,

addi¬

production

cilities.

Gilbert, Jr., First Na¬
in Dallas, Dallas.

IBA

IBA Convention

be

general

$7,000,000

in 1954 and

spent

84

page

In Attendance at

for which

program

jrom

the sale

funds and will be used in part for

Howard H. Fitch, Barret, Fitch,
North & Co., Kansas City.

Robert R.

Continued

89

per

case.

The net proceeds from

Howard,
Weil, Labouisse, Friedrichs & Co.,
New

share,
each

Southern

-

optional redemption price

(2449)

WATKINS, Jr., MILES
Stubbs,

the

Ewing T. Boles

Joseph T. Johnson

Laurence

M.

Marks

A.*

Smith & Lombardo, Inc,

company's
history, and compares with $28,307,940 for the like period of 1952.

WATTERSON, WILLIAM H.*

to holders of its outstanding com¬
mon

Net

WEBB,

stock,

149,008

shares

were

earnings

for

the

first

three

subscribed for by holaers of sub¬

quarters

scription warrants

$2,272,697, or $2.98 per common
share, compares with $1,890,827

(including the
several underwriters) pursuant-to
the right to subscribe.
The sev¬

$2.48

or

of

1953

amounted

H. Hentz Go. to Admit

offering, underwritten by
a
group of underwriters headed
by1 Glore,
Forgan
&
Co.
and
to

rate

of

13

at

Leo

The preferred stock is convert¬
ible for the life of the issue at a
of

IV4

shares

of

common

stock for each share of

The
the

stock

1

is "also

-

preferred.

redeemable

at

will

to

general

admit

Jr.,

option
per

of

the' company
if 'called on

partnership

M.

C.

Olivar

and

Julian

Blass to limited partnership.
Messrs. Alvin and Jacob Schon¬

feld

partners in J.

are

& Co. which is

ROBERT

Schonfeld

being dissolved

on

Joins Hess & McFaul

or

before Dec. 31, 1956 and at prices

(Special

to

The

Financial

WELLS,

sinking fund at the lesser Building.

Bank, New

*

WENDT,
First

Fund

Wertheim

&

markets

•'

We Specialize.In

can

First

St.

Exchange

Oldest

Louis'

Stock

SL 288

Exchange

House

H.*

STEPHEN

& Howard,

Eaton

(Assoc.)

Corporation, New York

Boston

Boston

WHITE, CHARLES B.*
B. White

Chas.

F.

S.*
New York

Smlthers & Co.,

S.

SIXTY-THREE YEARS

GILBERT*

WHITE,

New York

White & Company,

D.

R.

& Co., Houston

CLEVELAND

WHITE,

St. Louis

& Co.,

Walker

H.

OF

WILLIAM*
New York

York Central Railroad,

THOMAS

WHITESIDE,

Chace, Whiteside, West & Winslow, Inc.,

INVESTMENT

ARTHUR*

WIESENBERGER,

Stein

find it"

LEROY A.
& Boyce,

Orders For Banks And Dealers

BANKING

Baltimore

Bros.

W.*
& Co., Baltimore

CLAUDE

WILHIDE,

We want offerings, Odd Lots, Missouri D. O. Municipals

New York

Wiesenberger & Co.,

WILBUR,

Baker,
•t»

Stock

ST. LOUIS 2, MO.

Central 3350

York

WHITBECK, BRAINERD

Arthur

we

Boston

Boston

And Invites Your Inquiries
Market

Inc.,

S.

New

Exchange
Exchange
'

WEST, CHARLES L.*
Russ & Company, San Antonio

In All

Local Listed And Unlisted Securities

a

Stock

WHITE, KELTON E.*

Our Trading Department Is Active

"If there is

Co.,

Stock

Chicago Board of Trade
American

Distributors,

CHARLES

WERNER,

York

Midwest

Chicago

M>

CHARLES

Putnam

New

'•

MEMBERS
New

B.

GEORGE

National Bank,

WERLY,

G.

louis

I. M. Simon & Co.

York

Jr.,

WHITE,

st.

1874

&

HENRY GRADY*
Andrews & Wells, Inc., New York

Chronicle)

gradually declining thereafter to
PORTLAND, Oreg.—William J.
$50 per share if redeemed after Cady has become affiliated with
Dec. 31, 1964, and is redeemable Hess &
McFaul, American Bank
for the

"

V.

RUSSELL

Hanover

Dec. 31.

of

share

DEALERS

%

ROBERT

WHITCOMB,

$52.50

^ew York

York

Moseley & Co., Boston

WELLES,

Alvin

Jacob Schonfeld, member of
Exchange, Marina B. Doyle,

common shares held,
subscription rights expiring the

Nov. 30.

rate

Jan.

on

and

for each five

New

Co.,

Business

•

and

Established

Corporation,

N.

ALAN
&

WEEKS,

BROKERS

M.

Philadelphia National Bank, Philadelphia

preferred-share Schonfeld

one

Mason, Inc., Lynchburg

Company, Minneapolis

Securities

Weeden

S.

&

<

WALTER H.

Jr.,

Union

&

stockholders of record Nov.

on

WEE.D,

Cleveland

G.

CHARLES

WEHRHEIM,

H.
Hentz
&
Co.,
60
Beaver
Weeks, had been Street, New York City, members
Dixie Cup Co. common of the New York Stock Exchange,

Hornblower
made

New Partners

Co.,

&

Horner &

Dain

M.

J.

F.

The

With

Scott,

WEBSTER,

share in the 1952 period.

a

Clark

EDWARD

WEEI)EN,

and resold remain¬
ing 3,457 shares.
company

the

Fahey,

to

eral underwriters purchased from

the

Birmingham

Watts

WILLET, Jr., Mrs. ROBERT M.
Buffalo

ESTABLISHED

CARLTON

WILSON,

Edward D. Jones & Co.
1871

The

Baird

W.

Robert

WILSON,

P.*

&

HOLMAN

Kentucky

Milwaukee

Co.,

R.

Louisville

Company,

MEMBERS
New York Stock Exchange

Chicago Board of Trade

Winslow,

American Stock Exchange (Associate)

St.

300 North 4th

WINSLOW,

Midwest Stock Exchange

Saint Louis 2, Mo.
Teletype SL 593

Central 7600

WISE,

SAMUEL

JOSEPH
Witter

Dean

McEvoy,

New

INCORPORATED

York

New

Co.,

Bell

Direct

Private

Wire Connections

WITTER,

with

WOLFF,

&

New

York

W.*
Smith & Co.,

New

Co.,

King

Wood,

Dawson,

&

KENNETH

York

New

York

ft

H.

Bradford & Co.,

J. C.

Woodurd-Elwood

<fc

Co.,

Fahnestock

&

Co.

J.

HENRY

R.

*

l\ew

T

One

New York

Charles

Exchange

■

passed

some

firm
FOURTH AND
SAINT

later

OLIVE

the

LOUIS

and

Bldg.

New

York

Clark,




important services

our most

institutions and

Denver

U. S.

•r

Mrs.

Otis

A.

of

to

to

individuals

GOVERNMENT,

ft

months.

in
Mr.

of

L. 1). St. Louis 340, 341 & 342

on

I

MERCANTILE

investment

I

TRUST

Otis

was

for

first

Otis

&

Co.

investment
to

hold

a

He

dealer

Correspondent
&

Co.

Commercial

Belleville,

MEMBER

721 LOCUST STREET. ST. LOUIS

H

New York

FEDERAL DEPOSIT INSURANCE

was

in

CORPORATION

1, MO.

Correspondent 14 Wall Street

membership

the New York Stock

Exchange.

He founded the Cleveland "News"

Dodge

COMPANY

■
■

Otis, Hough & Co. which

became

i

one

health

ill

•

MUNICIPAL BONDS

Cleveland

Dec. 9 at the age of

being

Cleveland

—SL 151 & SL 152

Illinois

*

"

of the founders of the

Bank

ft

J.*

Mr.

away

after

Midwest Stock

Exchange

Nat'l

ft

STATE AND

American Stock

.

Municipal Bonds

Alton,

•ft

Charles A. Otis

85

1st

of

E.

York Stock

(Associate)

Bell Teletype

ft

Williston, Bruce & Co., Portland

Denotes

Exchange

.Unlisted Securities

-ft

Members

*»;; ^

Distributors::

Co.,

Bosworth, Sullivan & Co.,
ZILKA,

Underwriters find.

&

PAUL

#"'ft

ft

ft

Minneapolis

WYNKOOP, BROOKE L.
YOUMANS,

ft

York

New

WOODARI), LAWRENCE B.

Newhard, Cook

CHICAGO

•

M.*

DAVID

WOOD,

ST. LOUIS

JAMES

Zuckerman,

WOOD,

M.

WILLIAM

Witter

Dean

Josephthal & Co., New York,sand James E. Bennett & Co., Chicago

Listed and

Stifel, Nicolaus & Company

York

B.*
<fc

u

R.

Douglas &

Chicago Telephone to Bond Department Dial 211 Request Enterprise 8470
RESOURCES

OVER

*000

40L

MILLION

Bldg.
Illinois

in

1905

merging

the

"Herald,"

ft

"News" and "Evening Plain Deal¬
er."

c

SO

(2450)

The Commercial and Financial Chronicle

;r>:

IBA
1949

-

m'mmmmmmmmmwmmmmmmmi

PAST

50

Continued

PRESIDENTS

1948 -49

from first

-

Capacity and

As

all

that, in between the opening sen¬
tences and the closing sentences

voutly hope they do. But in my
humble
judgment that outcome
neither

is

table.

It

doing.

nor inevi¬
quite a bit of
challenge to gov¬

is

It

a

the

executive

branch.

legislative

is

to

agricultural

leadership

rank-and-file

Albert T.

a

wmmmm wm *,

Berk,
Beaver

Greenberger & Co., 60
Street, New York City,

members of

the

New

York

the

on

New

Jan.

York

will

1

We

admit

capacity to

have

C.

White, Weld
York

Ransom,
and

City, passed

partner

in

part¬

standard
as

Company, New
away

Dev. 8 at

the age of 55.

to

The

OAKLAND,
Jostes

is

Financial

Chkonicle)

Calif.—Charles

engaging in

a

unprece¬

of living

for

our

while

at

the

whole

a

America's

an

time

maintaining a position
of deterrent power against Soviet
imperialism and rendering gen¬

Charles Jostes Opens
(Special

produce

dented

same

0*

pos¬

(and the
that
it
will

demonstrated

people

Bunker to limited

the

to

aid

erous

S.

tunate

securities

productive

chester Drive.

thus

about

the

Year

the

the

I

not

am

This

Talk"

next

year

"unless

Be

that

have

with

things,
get

don t

not

the

most of you

live

become

indomitable

Has

matter how incredible,
just because we repeat
and over that they will get

done.

I

live

in

the

happened

speech

was

that

disillusioning

"Commercial

and

Recession

Talk

Is

He

those

chided

about

concern

who

the

expressed

economic

out¬

look

for next year and prescribed
"Detroit Talk" as a sovereign rem¬

edy for

any

have

be threatened with. Allud¬

or

ills the country might

ing to the complimentary remarks
of the President of General Motors
in introducing
him to the Eco¬

nomic

Club

of

Detroit, Mr. Fair-

1

"The part of his remarks that I

like

even

was

when

ment

of

Now

in

great
has

than

more

he referred

mine

economic

kind

a

program

Congress
veto.

meet

may

both

the

Presidential

a

Washington

talk

includes

pronouncements

Administration

to

for

talks, it speaks

language

and

of

who

us

of

the

the

differ¬

utterances

a

have

Then, too,
peep from

out

are

of

of

been

gov¬

emanci¬

ever,

right

that

in

itself

and

the future.

great pleasure and
lief for

me

in

the

has

con¬

...

So

it

welcome

a

s

a

re¬

think

time
of

to be able to visit
you
of Optimism.
I can

of

no

more

appropriate
place to unburden m.yself

or

or two things
that I have
wanting to get off my chest

one

been

for quite a while.

We

can

we

want

if

prise, the
to do

so.

really

we

.

It's up to us.

.

have

.

the

and

courage,
.

need

is.

less

the

and

two

severe

is

to

get

of

how

even

a

were necessary
done in the mystic maze of Wasn-

ington; the other, that there
sometimes

blind

and

is

often

the part of
business
patients for whom
Administration was prescrib¬

the

ing economic medication, diet,

In
a

a

Investment Securities

illusioning realization

that

taking

the needle of inflation leads
not only to wails of
anguish from
away

or even danger unless he is
given continuing and skillful care.

he needs

"Washington
months

has

pessimism

optimism of
that

must

recent

blend

and

optimism—the
Administration

whistle

graveyard

in

curious

a

new

a

when

even

talk"

been

a

and

tune

merry

passing

through

a

the

pessimism of
merchants and landlords
trying to
sell goods to the new FBI
(fired

by Ike)

to find tenants for their

or

newly-built

office

buildings,
and dwellings

houses,

while the government

ing

a

of

rented

of

the

Even

office

RIF's

as

to

the

is

this
to

in

of

declaration

of

aspect
to

the

Detroit

talk

that

"It

Washington talk in
current

ain't

comments

my

economic
Here

av&

on

discourse

official

find

two

conflicting;) views

—

roughly the January wiew and the
December view. The first
the

new

move

ary

bust

that

was

Administration would

the dangers of

by

phase

shifted

ment's
and
of

an

re¬

inflation¬

putting the

to

house

govern¬

in

order

rely on the several groups
private economy to make

the

the necessary

adjustments in their

operations and to accept incidental

discomforts
the

or

sake

short-run loss

even

of

Officials

long-run

sound¬

talk complace-

now

ently of larger deficits instead of
smaller, of breaking the $275 bil¬
debt

be

a

tion

stronger emphasis
of

the
of

grams

government and

the capacities of

system

country

salva¬

on

by the

economy

to

make

pro¬

less

on

SAINT
i

rt




BUILDING

PAUL, MINNESOTA

talk

as

significant factor in

a

economic

I

process.

its

own

adjust¬

ments, by intelligence and forti¬
tude, to the vicissitudes of eco¬
nomic
In

life.

fact some

cial

utterances of offi¬

Washington

amount

economy

have

any

that

real

after

the

upsurge

of

the

ndii,

eight,

or

it

jawbone attack" that
certain

arose

when

last

not

read¬

its

or

rapid

of

opera¬

but

ragged

three-and-a-

fourteen

years.

"Washington talk" today

seems

or

to come down

to two

ositions:

There

danger

(1)
of

nothing
5%

or

of '53

a

in

is

real

setback,
than

more

of

prop¬

no

business

sight

out

major

prosperity,

below the extreme peaks

so

'50. But if anything more
serious should develop,
your gov¬
ernment

has

recession,
use

these

it

the

means

to

understands

means,

and

determination to do

so.

it
On

check

how

has

But

even

a

good

numer¬

ous

occasions, the Secretary of the
Treasury has said: "I know of no
unsound situations

underlying

our

INVESTMENT

DEPARTMENT

THE FIRST NATIONAL
BANK OF SAINT PAUL
U. S.

GOVERNMENT, STATE

AND

MUNICIPAL

Not

BONDS

to

be

less

TELETYPES

thing

be overdone.

ST P
than

Fairless, I want to

say

fair

to

Mr.

right here

to

the

"Economic Reports of the

behavior.

a

say

or

President" made reference to psy¬
chological elements in economic
can

to

me

does

problem

justing its position
tions

to

seem

almost to telling the pri¬

vate

remem¬

ber the derisive howls about "the

on

free enterprise

a

full

may say that I got

or

to have

me

put the

financial

to

lick tne

its second

from its early

way

determination

to

to

seems

long

a

flattening

expressions£;|of

Washington.
somewhat

in

more."

limit

form
the

no

some

force)

provinces.

superior

asseveration

shall

feet

Washington talk has

stripe

gonna rain
I

and

one

on

a

space,

there

so,

releas¬

square

(reduction

returning

which I think
been

was

couple of million

want

ceiling, and of postpon¬
ing indefinitely the day of a bal¬
anced budget. There seems also
to

Several Patterns

of

to

chuckle out of this emphasis
by
hard-bitten business executive

the

FIRST NATIONAL BANK

passing, I

or

surgery. Early efforts in the direc¬
tion of disinflation
brought a dis¬

America short."

Harold E. Wood & Company

a

un¬

on

we

realization of the fact that nobody
has yet made a dime by
selling

the

-

faith

pessimism,

Talk,'

got

discovery

enter¬

All in the world

.

'Detroit

more

.

have the kind of America

it

things they knew

lion

"Washington Talk" Displays

boundless

a

Oasis

this

to

vote.

a

—

respect

-

a

one

difficult

ness.

have freedom of speech even
we
do not have the

if

mere

of

America

in

it

that

me

America

of

very

due

sympathy,

Administration

for

were

a

dynamic

fidence
faith

state¬

speed.

and in
it must, how¬
be recognized that the new

utmost

habit.

Talk.'

indeed,

seemed

Detroit

growing

others
a

book, that is

my

always

the

to

'Detroit

as

compliment

whenever

the

help

maxi¬

Also

or the conflicting
Congress and where
formally adopted by

of

apartment

less said:

will

maintain

by the timidity

Un¬

by Benjamin Fairless.

safe

With; all

>

which

to

interests

(of Sept. 24, 1953) in
parallel columns with an address
This

step

that

the addict but to real
physical suf¬

Chronicle"

"All

to

says

fering

Financial

warranted"

is

It

boldest leadership of the Ex¬
ecutive Office can be frustrated

ernment—or

Memphis
published
in
the

conditions

company

mum

pated from government—and who

my

doubt

pedal.

gas

government
is
responsible
for
making fiscal, monetary, and some
other

still

It

of

atmosphere of Washington, where

occasionally hear

Prescribed

ago, this
significant

a

the

those
Been

that

no

you

pro¬

Detroit.

belief

Loyal Opposition.

I

in

indoctrinated

done

over

go

tnat all you have

say

time

the

the

it may,

as

the

you.

ourselves

not

shocks:

is

few

next

taik

to

cooperative reaction

know that I
I

the

or

we

good

is

there

moment

a

me

in

do

the

ema¬

it."

ently-conditioned

what

is

or

ever

that

worried

how

to discuss with

"Detroit

pros¬

a

have

we

car—but

driver?

pose

have

we

for

matching

best

far.

for¬

society of

course

capacities

New

perous

bettering
done

Of

less

or

of the

members

nations.

free

business from offices at 6067 Man¬

weaker

to

which

possibility of the United States
having a recession eitner during
the

said
to

does

want

no

.year

years

Stock

■

Julius

next

deeply
influence),
I
have
no
misgivings about the productive
capacities of these United States.

Butler, Herrick & Marshall, 30
Broad
Street,
New
York
City,

Stock .members of

Julius C. Ransom

of

subsequent

Butler, Herrick Partner

Exchange, on Jan. 1 will admit Exchange,
Eugene Greenberger to partner¬ Ellsworth
ship.
nership.

title

into

constructively

optimism

in the assertion

.years

sibilities

very

I

today and which is often summed

ward

m.

Berk, Greenberger to Admit

and

my

some

tnat

nates from many business quarters

up

in

were

qualifications

jaunty

a

by "business performance." And I
put this phrase over against "pro¬
ductive capacity." In looking for¬

Julien H. Collins

Hal H. Dewar

Armitage

mean

there

nis

from

later on. But I thrnk
it is not unfair to take this
phrase
"Detroit Talk" as
characterizing

conduct.

That is what I

quotea

to return to

challenge to business—to indus¬
trial, financial, commercial, labor,
and

have

speech,

and

It

I

sound

take

ernment—both
the

which

spontaneous

will

it
to
on

de¬

I

true.

come

financial basis, stabil¬

step beyond "Detroit talk" in that

Business Performance
may

I

seems

48

ecies

sound

a

izing the dollar, and underpinning
continued prosperity.

Productive
1947

on

page

Thursday, December 17, 1953

....

SUpiiST P

159 MUNICIPAL DEPARTMENT

132

TRADING

DEPARTMENT

Volume 178

Number 5282

.

.The Commercial and Financial Chronicle

.

(2451)
economic
to

be

structure,

corrected."

words

fall

from

soft

no

themselves through which

spots

Hearing
lips, I

we may

these

keep

could

his

"country houses"), decisions

ating at "maximum production."
The Employment Act and the

not

business machine oper¬

our

be

the

prospect of deficits of
size and longer duration

larger
than

envisaged

a year ago

element of weakness

no

ble

danger.

Nor

dustrial

I

but

goods

market

and

the

services

wonder how

of

choices of the
that

or

taion

materially limit

those

choices.

ployment
or
after
prices (and related

off

incipient recession

an

it from

10%, there

that this

have corrected

in

spots

be

can

1929.

of

some

the

economic

our

it

is

1954.

coming

The

to

a

remarks will be devoted to
of

the

nature

The

of

We

Prosperity

weak

Prosperity

simply

structure.

We

blood

have added some
to which
important
safety devices. We have gained in the labor resource would be em¬
economic sophistication as well as ployed under optimum conditions
reserves
of national wealth. But of opportunity would be the level

neither

this

model

new

car

its drivers have been
given
road test. I have a
sneaky

at

nor

real

a

which

leisure

workers preferred more
to
more
goods.
Under

primitive

conditions,

patriarch

a

feeling
that Washington talk
glosses over assigns tasks according to his esti¬
real difficulties

some

ticular, overlooks
be vital to

may

in

ure

one

boom

into

sustained

Washington talk

fail¬

or

inflationary

an

prosperity.

needs

to be sup¬

that the several

Let's Have Some "Boston
I

use

this

mind Pilgrim

Talk"

phrase

I

have

Yankee

courage,

ingenuity, New England's priority
and prestige in
education, Boston's
M.

I.

T., and Harvard's Graduate

School

of

Business.

discussion
reflects

I

want

The

to

belief

my

line

of

here

open

that

an

econ¬

thought it is profoundly af¬

omy,

fected

by

and

workers

get such

in the product as he thinks
is good for them. Under
medieval

feudalism both tasks and rewards
were

apportioned

by ancient and

world-wide

psychological

factors

authoritarian
of

ways

that

this

and

free

on

an
economy.
and communism as¬

"papa knows best" and
scale

a

that

makes

the

patriarchs of old look like pikers.
But

to

make

stable

or

their

system

adequately

either

in accordance with scien¬

principles and that its
be

can

modified for better

action
for

or

centralization of control had been
dissolved and industrial,
and

labor

centralization

of

con¬

by the hand of its operators.
trol had not yet
crystallized, saw
In other words, the
adjustment of in the
force of small-scale com¬
national

tained

business

level

needs to

of

to

high

problem

sus¬

production

be approached

gineering

a

as

en¬

one

or

an

of

scientific management of the busi¬
ness
.

process.

vate

procedure

neglected
and

to

seems

in

both

policy
me

or

Employment Act of 1945
important declaration of
to

the

eco-

of

should

in future

conduct

its

—
fiscal,
monetary,
regulatory, and operational
in
—

a

way as

to facilitate rather

than

impede the providing of jobs,
through self-employment or by

management, to all those "able,
willing, and seeking to work." But
Act

specifically reaffirms our
allegiance to a system of "free

American

is

are

our

the
not

are

hearts

our

by

of

brain

a

hands and

and
cen¬

feet.

It

and tissues

and glands had wills of their

own

—as

though they could make mis¬
takes, and war among themselves,

and

could

health
at

achieve

their

own

only by painstaking effort

cooperation.

operating mechanics
enterprise system, there

recurrent

ity of job givers and job holders

board

moments

at

union

its

points

speech

has

its

is

economy
ism than it is

more

and
an

strategic,

of

of

a

are

decision

centers

(at
directors'

headquarters,

the offices of pricemaking executives, or in the great
rooms,

With King Merritt Co.

let

(Special

that

organ¬

And if this last
paragraph seems

heavily professorial,

John Clifford

to

The

DENVER,
Prater

Financial

Colo.

joined

—

the

Grimm Opens New Branch

Chronicle)

Kenneth

staff

of

gf.
W.

King

Merritt &
Co., Inc., U. S. National
Bank

Bldg.

PETERSBURG

Grimm

&

Co.

have

will

outline
be

The

Derwin

B.

Smith.

make

me

to

the

of

what

I

crucial

private

Threat

of

With Robert M. Disbro

believe

practical

business

Economic

(Special

in

Debility

to

The

Financial

(Special

—Arthur

C. Freeland has become
connected
with Robert M.

Disbro, Cleveland

Trust

William E. Wallace Opens

Chronicle)

WILLOUGHBY, Ohio

The national income accounts of
the last" dozen years have shown
a

Building.

to

The

Financial

Chronicle)

OAKLAND,

Calif.—William E.
Wallace is engaging in a securities
business
Grand

from

offices

passed
life

normal

but

not

diet

has

of

come

merely

good

through

public

of

deficit

debt

expansion.

NORTH DAKOTA

MONTANA

from

supplemented

from

MINNESOTA

SOUTH DAKOTA

digestion

transfusions

money"
credit

that

records.

business, how¬

and

been

liberal

prosperity

previous

blood

has

ever,

of

all

by

MUNICIPAL AND STATE BONDS

"new

financing

and

private

Much

of

this

TWIN CITY STOCKS

was

necessary and need not prove
unhealthl'ul. Even for some doses

that

To

The

deal

which

not

am

milk.

we

we

too
wisely pre¬
skillfully admin¬

too

or

istered, I
spilt
do

not

were

scribed

with

the

of

way

issue

cry

ALLISON-WILLIAMS COMPANY

over

is

how

situation

in

MINNEAPOLIS, MINNESOTA

find ourselves?

now

my

to

one

question

for

thinking,

'54

the

|

Phone: ATlantic 3475

TWX MP 163

and

beyond
is what policies big business man¬
agement and organized labor lead¬

ership will follow in this testing
time when

the

economy is poised
inflation and deflation.

between

Will they among themselves make
terms

of

private

trade

enable

management

enough

jobs

to

that

to

keep

will

offer

the

Kalman &
MEMBERS

labor

Company, Inc.

MIDWEST

STOCK

EXCHANGE

force

employed, to have earnings
large enough to keep up an ade¬
quate rate of internal investment,
attract the public's
savings, and

justify ample credit

extensions.

If

investment

dries up, there will
jobs for construction work¬

not be

and

mill

those

and

who

work

in

who

make bricks and slosh

mortar.

the

workers'

union's

assets,
insurance
fund.

savings,
the

or

UNDERWRITERS & DISTRIBUTORS
CORPORATE

&

MUNICIPAL SECURITIES

the

Mcknight

building

MINNEAPOLIS

1,

ENDICOTT

MINN.

ST.

TELETYPE—
MP

PAUL

1,

BLDG.

MINN.

TELETYPES—

120

ST

P

93

ST

P

117

(Corporate

Dept.)

(Municipal

Dept.)

his

reserves

company

But

/

If

profits fail, it will not be possible
to attract outside
capital for in¬
dustrial growth or pay dividends
on

'

steel

plants,

machinery

producers

and

must

embrace

also

ule

of

for

NATIONAL BANK

"utilities"

or

in

pen¬

voluntary

MINNEAPOLIS

rrfif >rrri
'i
r

r

r

atm

rrr

I

Specialists in state and municipal bonds of
and South

and U. S. Government bonds

Dakota,

such

sched¬

a

other

and

permit all

sumers

to

product

of

machine

Minnesota, North Dakota

worker-consumers

prices for goods and

will

as

OF

our

off

the

two-pronged
may

rely

reduction

is that

too
as

their

much

a




MP

178

use

its

wages

mass

up

power

to

means

on

of

force

on

CORPORATE & MUNICIPAL SECURITIES
MEMBERS
NEW
AMERICAN

YORK

STOCK

STOCK

MIDWEST

page

92

EXCHANGE

EXCHANGE

STOCK

MINNEAPOLIS

cash

to protect the purchas-

Continued

UNDERWRITERS & DISTRIBUTORS

in

man¬

protecting over-rigid formulas of
profit margin and that labor may
—

1895

within

of

danger

the persent situation

agement

& Hopwood

ESTABLISHED

con¬

productive

Market

purchasing power
disposable incomes.
The

Piper, Jaffray

full-scale

great

the

rates

services

would-be

take

the

volume

TELETYPE

at

Avenue.

pretty steady and greatly increas¬
ing money flow and an accom¬

sion

FIRST

a

branch office at 532 First Avenue,
North, under the management of

terms of trade between
employer-

DEPARTMENT

Fla

opened

simple application of thi^ theo¬

a

his

INVESTMENT

Folger

me

machine.)

a

Charles S. Garland

that

out

carries

mechanics

the

Hopkinson, Jr.

parts.

engineering to physi¬
ology, I reply that the living body

ers

In the

free

when,

bargains among

like

though the bones

as

competitive enterprise" and, in so
doing, expresses faith in the abil¬
to make workable

mechanics

nor directed

as

continuous

adjustment

body economic

automatic

ter

and

productive
The

on.

lungs

of

E.

from

over

an

large-scale
competition, no

automatic

goes

figure

eco¬

occlusion,

of

some

critic

some

crucial

monopolistic

such

an

though guided by

as

Under contemporary

be

operations

the

would go forward in mutual

Invisible Hand.

talk"

nomic process. It expressed an in¬
tention that the Federal Govern¬

such

tion)

harmony

and

to

"Detroit

policy with reference

ment

petition the mechanism by which
the process of
production and of
distribution
(or
consump¬

process

made
,

or

"Washington talk."

The

'

The element of p: i-

management

(If

life

arterio-sclero-

coronary

in

gangrene

has

financial,

worse

our

a

this

the

the

are

strong if the body

sis, anemia,
or

This

Thus they must in the end
prove
though it functions within a
unstable and of mediocre
produc¬
political system, also has a physi¬
tivity.
cal structure of its own
through
As for the free
system, Adam
which certain mechanical
forces
Smith,
in
a
day
when
feudal

tific

the

determine

which

panying level

productive,

these modern dictators would have
have
omniscience
and
gain
omnipotence. This they cannot do.
to

and

operate

of

1954.

enterprise

45

of any free economic
sys¬
That flow must be
kept both

problem

between

-

and

operating

Both fascism
sume

struggle

1943 -44

securities.

new

flows

retical

have

we

of

escape

also

directs

1945 -46

and
the
dis¬
dividends and the

nomic is to

share

a

When

competence

arbitrary cujstom. Today

plemented by Boston talk.

in

of

par¬

which

area

our success

converting

mate

and, in

47

by which they

rich and

resources.

•

of residual

investment

implemented

tem.

full

means

utilization of productive
The degree of fullness

1946

These policies and the adminis¬
trative procedures

money

of

presidents

millions),

bursement

are

Mechanics

(even

floating of

remainder

that testing.

doubt

no

is not another

in

examination

an

snowballing to proportions
that
comforting 5% or

beyond
even

test

of my

keep

or

judgment

my
real

In

funds

past

retirement),

unions'

'thirties.

policies

quality

Benson.

of the

id

iba

condi-

or

The

servicing), investment

the depression

mm

of individuals

mass

long it had been since market. That challenge has not
Mr. Humphrey had talked to Mr. been
really put to the test since

As to the assurance that
govern¬
ment has the sure means
toward

must

business

nerve centers
of private business relate
to wages
(both current and during unem¬

the forebearance of the
parties to
the processes of the market—the

possi¬

or

matters

formulated at these

chal¬

real

a

lenge to both the intelligence and

contain

could

presents

age

on

policy that supersede the myriad

help but wonder whether Mr.
Burgess would agree that the size whole
philosophy of private ven¬
and structure of the national debt ture
capitalism in the modern in¬
and

taken

91

GREAT FALLS

(ASSOCIATE)

EXCHANGE

ST. PAUL
BILLINGS

3665

32

(2452)

The Commercial and Financial Chronicle

Continued

from

91

page

Thursday, December 17, 1953

...

full

IBA

PAST

1942 -43

PRESIDENTS

1941-42

-

40

-

The

productive capaci¬

our

statements

important

Productive

1939

of

use

ties.

also

Capacity and

41

basic

typical

some

approach
what

Business Performance

have to

be

negotiations

folds.

It

will

some

and

differences

emphasis.

or

will

actual

reveal

agreements

be

in

These

are

resolved

1954

as

noted,

in

un¬

however,

that even before 1953
ends, both
buying power, the gap of the past
the Chamber of Commerce and the
velope even when it impairs the few years between lagging wages
Committee for Economic Develop¬
employer's ability to give jobs or and rising productivity must be
ment have taken the lead in
reduces the number of those who quickly closed.
get¬
Wage and salary
have any pay envelope at all. That increases generally in excess of ting local communities, particular¬
ly in sensitive areas, to make de¬
is the plot of the drama of col¬ current
productivity increases in
tailed
studies
of
lective bargaining at market pric¬ this
unemployment
period
are
necessary
and
dangers and re-employment pos¬
ing that will come to its de¬ possible.

ing

of this week's pay en¬

power

.

nouement

backs

of

in

or

the

in

States
John S. Fleek

Emmett

F,

cut¬

workability

laborism

in

and

icies

but

ticklish

a

United
funda¬

union

wage

meets

the

the
a

ject

Halsey, Stuart Group
Offer Equip. Tr. Ctfs.

to

the

authorization

of

the

The

issue

is

to

be

secured

by

Hope that such

Offering of $4,830,000
cost
$6,045,885;
7
Diesel
Road
Maryland Railway Co. 3% equip¬
and
trust certificates, series R, Locomotives
Switchers; 500
55-ton
Hopper
cars,
and
250
maturing annually Dec. 15, 1954 to
7C-ton Gondola cars.
1968, inclusive, was made yester¬
Other members of the offering
day (Dec. 16) by Halsey, Stuart &
are—R. W. Pressprieh & Co.; L. F.
Co. Inc. and associates.
Rothschild
offered

are

&

at

Co.;

Wm.

E.

Co.;

Ira

Pollock

Haupt

&

into

of

an

both

tion

of the
and

sue

tion."

realiza¬

should

its

to

means

business

lems

economic

briefs filed respectively

cope

by each of the interested

Gregory & Son, Incorporated; and
McMaster Hutchinson & Co.

parties.

published a few
by the CIO under the

months ago
title

"Maintaining

"The

fense

of

of

in

policies

planned reduction of de¬

maintenance

to

.

.

the

rearmament

since

level

this

is

de¬

longer

no

meet

can

American economy with challeng¬

ing

Active Markets Maintained in

MUNICIPAL
CORPORATE

BONDS

markets

alternatives.

ductive

SECURITIES

within

economy

ise

of

BUHL
NEW

•

•

Exchanges

Bay City

•

Flint

•

■

•

Grand Rapids

Lansing

•

throughout

Port Huron

the

substantially
the

.

Julius

Reginald

MacArthur.

Pochelon

T.

Melvin

R.

Norris

Hitchman

.

and

high

and Dealers in

.

of

and

the

full

to be maintained.

for

plant

new
are

now

peaks and have been at

levels

since

1946—may

fall

somewhat in the years ahead.
The
national
economy
is
now
.

Municipal and Corporation Securities

more
•

1

dependent

spending

Specializing in

than

return to

a

more

total production.

declining

MIDWEST

DETROIT
Grand

Rapids

GR

EXCHANGE

consumer

EXCHANGE

maximize
Saginaw

Ford

Bldg., Detroit 26, Mich.
Telephone WOcdward 2-3262

540

Teletype

DE

Bearinger
Telephone

..

"Business

Bldg.
2-3311

475

through

MEMBERS

DETROIT

STOCK

MEMBERS MID-WEST

STOCK

.

.

.

.

.

.

.

of

tinued

conditions.

in

bolster expanding
markets by seeking to

profits in the long-run
increasing volume of

an

sales rather than

high profit

Low unit profits
secure

help

that

more

basis,

.

.

The

.

con¬

tivity

after

ac¬

defense

spending

that

increased

means

must

be

primarily

are

good

economic

sarily

be

health

actions

undertaken

by

private

competitive

market

if

is to be retained in

nation.
merce

.

.

a

Every chamber of

.

contribute to the future

can

freedom and prosperity of our na¬
tion by organizing business and

professional leadership to develop
sound private policy in all the ac¬
tivities of business."
It

is

the

encouraging

number

of

also

for

work

unions

have

withdrawn

.

ample,

ing
of

a

operates. Thus,

when

a

business

relatively

the

local

large

labor

for

ex¬

employ¬

proportion

force

lays

off

personnel, it not only affects im¬
mediate

demand and the

consumer

economic environment in the

munity,

but

also

creates

and social attitudes detrimental to

free economy. If we are to have

a

be

to

than

winning

maintain

volume.

lush

sales

effort

buyers who
level than

are

are

on

must

accept

they

competitive

a

business
as

can

ployment,

and

market

industry

much responsibility

for

maintaining

incomes

and

em¬

produc¬

tion."

Ever

a




LANSING

FLINT

put

Thus I present you with no
pre¬
for 1954. It is within our

hands

to

tion of

make

our

it

a

prosperity

neither
as

a

come

as

real

vindica¬

faith in "the American

manna

life.

But

will

con¬

come

from heaven

nor

gift from Washington. It will
only as the hard-won re¬

ward

of

our

own

intelligence and

forbearance.

Reverting
to
the
phrasing of my title: the produc¬
tive capacity of our economy has

Neither of these quotations does
been
unquestionably demonstrated
justice to the full analysis printed
in the years we have
just passed
in either of the two
pamphlets.
the quality of private
But they may serve to show the through;
business performance
manage¬
way
in which thoughtful repre¬
sentatives of both business and ment, labor, and agriculture—is
labor are attacking the problem of
avoiding recession or maintaining

York

Stock

Stock

Exchange

Exchange

DETROIT 26,
Ann Arbor

more

be

foreign
price

yet

to

years

be

demonstrated

just ahead.

I

American

Midwest

Stock
Stock

Exchange

(Associate)

Exchange

Penobscot Building
i.)0'

to

lower

Members:
New

DETROIT 26, MICHIGAN

more

ever

diction

Way" of economic

of

ad¬

we.

tinued

eration

jobs.

above the appeal of utility models
and pricing within the reach of
lower income groups and

and maintain the kind of economic

economy,

ac¬

prac¬

more

seems

environment necessary

to the op¬

even

price competition to

glamorous product and

com¬

political

or

On the price
front, less progress
has been made. Price maintenance

herents

he

instances

some

cepted temporary cuts as the
tical alternative to loss of

.

"Undoubtedly, the businessman
has a certain social responsibility,
particularly to the community in
which

in

demands

Investment Securities
Detroit

GRAND RAPIDS

note

which

has,
by
accepting
fringe adjustments, pre¬
stoppages and that

or

vented

•

Listed and Unlisted Stocks

to

in

cases

■

Municipal and Corporate Bonds

our

com¬

—

mar¬

essen¬

widening markets....
increase
consumer

Underwriters and Distributors

the

neces¬

industry

WATLING, LERCHEN & CO.

EXCHANGE

of

must

& Co.

EXCHANGE

market

all contribute to

can

Such

seems
.

.

can

the

Re¬

.

expansion in economic

stabilizes

Business invest¬

spending

.

less influenced by current

must

share

expected to offset

tial to

MCDonald-Moore

past.

normal

gins.
"To

.

consumer

the

defense

this period.

& Co.

Detroit

Michigan Trust Bldg.
Telephone GLendale 1-2231

Teletype

STOCK

STOCK

market

as

ment cannot be

MEMBERS

on

in

Consumer expenditures

Michigan Municipals and Revenue Bonds

Kenower, MacArthur

.

.

se¬

expenditures
sectors

equipment—which

at record

Underwriters, Distributors

world.
national

expansion
are

Expenditures

.

Stuit

rising

if

economy

Kenower

in

non-defense

employment
L.

free

reduction

despair

curity spending must be offset by
in

John

are

output

COLUMBUS
•

and

prom¬

unemploy¬

and

.

sion plans on a longer-term

The

civilian consumption.

home

research,

selling,

forth,

so

companies, particularly the larger
ones,
are
making capital expan¬ wage

[by

continued

spelling

at

"The

CHICAGO

indicate

stagnation,
ment

BUILDING, DETROIT, MICHIGAN

YORK

Battle Creek

Stock

industry
inventory policy,

management

abundance, while provid¬
strong
economic
base

a

production.

against the danger of further ag¬
gression.
Or it can succumb to

fiBsr ofMichigav Corporation
Midwest

sustain

can

growth—holding forth the
ing

&

the

and

studies

cent

involved in

now

coming months
1956] for civilian production.

Michigan Bonds and Stocks

Detroit

resources

pro¬

the defense effort will be released

Specialists in

Member

Iriiportant

and

actions.

private

to

policies,

nation.

force

softening in demand by aggressive
policies designed to stimulate jobs,

the

presents

and

has

mid-1950.

Private business

.

of

and

maintaining local employment and
income, thereby contributing to

and

expanding

economy

.

financial

own

advertising, new
product development, wage policy,

pro¬

expansion program

velopments
.

private policy,
things that busi¬

economy

Our

.

primary

a

true.

military

a

credit

unlysis,

industry

and

of

decisions

respect

says:

and

Barring adverse international

expenditures

with

Eco¬

on

their

Operations

the

pamphlet

a

Produc¬

and

and industry can do to aid
establishing a stable economy

economic

instability and
with them when and as they

been

Prosperity"

field
many

through

the

economic

industrial

read:

we

have

arise.

pamphlet

the
are

in

designed to lessen the prob¬

grams

quote from two

a

issued

Chamber

Let

In

Commerce

States

Chamber's sylla¬

ness

abun¬

time

same

The

solution.

me

the

"Private

the responsible

seeking

"In

there

ad¬

nomic Policy outlines "A program
for Expanding Jobs and Produc¬

importance of the is¬

are

is

maintaining liberty."

in which their Committee

some

can

produce

can

of

Chamber

society

the

ing Jobs, Markets,
tion," it says:

full

" changing environ¬

a

it

about

United

be derived from

may

of

grasp

a

un¬

outcome may

an

parties have shown

Co., Inc.;

Issuance of the certificates is sub¬

avoided

be

the fact that

&

prices scaled to yield from 2.25%
to 3.10%,
according to maturity.

At

manageable recession.

the

ment

certificates

completion

snowball

our

"Program for Maintain¬

possibility of proving beyond

dance while

but realistic adjustments

can

Within

doubt that a free

ment—that

immovable

normal

boom

following new standard-gauge
railroad
equipment estimated to
Western

The

the

to

Interstate Commerce Commission.

maintenance

the

just itself to

and security demands

body
of
managerial resistance, what could
be small

for

.employment.

mentally
fertile
situation.
If,
however, the irresistible force of

Connely

requires enlight¬
private and government pol¬

In

bus of its

period

ened

of

the

in

.

.

sibilities.

"This

clear demonstration

a

practical

capitalist

Jay N. Whipple

strikes

Jackson

MICH.
Kalamazoo

Pontiac

in

the

Number 5282

Volume 178

.

.

(2453)

Financial Chronicle

The Commercial and

.

93

ZHP/zM

Z

U. S. Now Has Over

Public

50 Million

Utility Securities

A. T. and T. Survey shows that

By OWEN ELY

annual

with

Co.,

Electric

built

about

of

revenues

S30

and

'

million,

farm

1

The

Valley.

PGE

L

position

-

identical; however,

are

from

in

the

it serves approximately
of

as

commercial

of

users

electric

Power

Portland is the terminus for
four
transcontinental
railroads

r

and

,

well

barge

as

lumbia
and is

and

of the great

one

fresh water

ports of the world, ranking second
only
Coast

.

Angeles in Pacific
tonnage and eleventh naLos

to

tionally.

/'•

Location

the manufac¬

rates make Portland

,

freight

favorable

and

and trading center for a
large portion of Oregon, southwestern Washington, southern
Idaho and much of eastern Wash¬

turing
s

to the drought,

BPA) and

20-year contracts with

ington, including the Yakima and
Walla Walla areas.
It is the nat¬

utilities were forced
all of their steam
plants. Because of the extra ex¬
pense thus involved, the
Public
Utilities Commissioner of Oregon

the

most

tric

Elec¬

•

PGE

located

are

for

some

large

a

'of

the

country's prominent industries en¬
gaged in the manufacturing and
distributing
of
wood
products

pulp
materials and
garments, chemicals, metals, and

-

(ranging

and

*

furniture to

from

paper), woolen

metal

products.

temporary

a

since

1940—and

the

served

area

the beginning
of 1953 (the 50-million mark was
than

48,000,000

at

Bonneville

improved for the private
utilities, most of which have now
have

with BPA
them better protection dur¬

signed 20-year contracts
giving

were

54%

mercial

11%.
f

kwh.

total

of

power

shortages in the

31%

and

Britain)

(Great

Kingdom

where four-fifths of
ice-capped, and the

Greenland,
the

is

area

and Dealers

MUNICIPAL and CORPORATION

the

in

Pitcairn

of

island

tiny

Underwriters

SECURITIES

Pacific, which is still inhabited by
descendants of the "Bounty" mu¬

U.

the

In

there

S.,

is a more
telephones

of

distribution

even

other

and

metropolitan

between

than in most countries.

areas

For

has

a

program

take care of future

during drought

A

estimated.

new

being set up,

periods,
plan is,
it is re¬

London, with
1,750,000 telephones, has about
30% of the United Kingdom's to¬
tal; Paris has 27% of France's tele¬
phones, and about 64% of Argen¬
tina's
telephones
serve
Buenos

phones

Greater

—

THE FIRST CLEVELAND CORPORATION
MIDWEST STOCK

EXCHANGE

the

In

there is

S.

U.

one

tele¬

for every three persons
compared with one for every 64
phone

people

the rest of the world.
6% of the earth's popu¬

in

With only

S. has nearly 60%
telephones.
A telephone
in the U. S. can be connected

user

world's

the

of

96%

about

with

telephones.

1949

1.72

phones throughout the

1948

1.74

1947

1.90

people are talking a lot more. Re¬
ports from 20 large countries show
an
average of 17 more calls per

2.08

stock

is

31V2

around

currently

and

selling

paying

Bell System CV 443 &| 444

Underwriters and Dealers in

Municipal and Corporate Securities

the

of

2.31

1946—

Teletype

^

PRospect 1-1571

lation, the U.

2.22

The

CLEVELAND 14
Telephone

Aires.

1950

extremely

Gree..

was

1951

reflects

East

Street.

countries, however, the large cit¬
ies
have the bulk of the tele¬

is

in 1952
output, com¬

Investment Cc-

571

under

While the gov¬

ported, for the combined public
and private development of hydro
I'esources
on
a
long-term basis,
which should work out favorably
for the utility companies.

national aver¬
age
of 2,169.
With an average
residential kwh. rate of only 1.28c
(compared with a national aver¬

Standard

of

California,

—

NATIONAL CITY E. 6th BLDG.

demands

compared with the

of

MEMBER

be sufficient to

high annual usage of
electricity — around
6,000 kwh.

staff

to construct additional dams
hydro plants, these will not

way

Albert A.
added to th-

been

3,500,000 telephones, contains only
7% of this country's total. In other

ernment

industrial only

and

has

Bryant

Chronicle)

Financial

example, New York City, with its

entered the area.

sales

The residential load

to The

PASADENA, Calif.

DIEGO,

tineers.

ing drought periods.
There
are
recurring

it

(Special

Chronicle)

formerly with Hope & Co.

_

Residential

Financial

reached in November). The United

received the largest
portion of the influx of new resi¬
The company's record of earn¬
dents.
While most large cities
ings has been as follows, based on
registered only small increases in the
1,500,000 shares outstanding:
population in the past decade,
12 mos. Ended October
Portland increased
substantially.
1953
$2.51
The company's kwh. sales have
Calendar year:
shown a steady increase, with a
2.48
1952_
total gain of 150% during 1941-52.
by PGE has

telephones with more

of

number

The

Calif. —John H.
Goodwin
has
become
affiliated
with
Dewar
&
Company, First
National Bank Building.
He was
SAN

past, the United States
other
countries
in the

As in the

all

to

20%

with

relations

ton,

therefore,

population growth of Ore¬
gon in the last decade has been
very rapid — in excess of 40%
The

(Special

the World."

led

Standard Inv. Co. Adds

Joins Dewar Staff

of

Statistics

"Telephone

surcharge second with nearly six million
on
customers'
bills. Under the telephones. Among Ahe areas hav¬
new
Administration at Washing¬ ing no commercial telephones are
add

Edward B. Hall

Frothingham

and

American Telephone

survey,

Pacific northwest
because of the heavy demands of
agricultural and dairying region.
the
aluminum
producers
and
Within the
territory served by
other new industries which have
ural distribution center

F, E.

C. Witter

to

year

the

by

other private utilities to

and

a

Telegraph Company, in its annual

private

permitted Portland General

Jean

which takes al¬

collect for some
countries, has been published

200

operate

to

the outbreak of World War II.

at

private power plants sharp¬
ly (favoring public agencies and
aluminum plants which enjoyed

juncture of the Co¬
Williamette
Rivers,

Ocean at the

ning of 1953, the world now has
as many telephones as it did

twice

to the

lines and bus
companies
serving
the
Pacific
Northwest. The city is located 100
miles
inland
from
the
Pacific

as

breaking 84,000,000 at the begin¬

This information,

due

ever

number of telephones

the

With

Bonneville cut down its deliveries

transcontinental airlines,

two

being made than

are

in the world climbing to a record-

Federal project.
year,

more

before.

Power Pool,

Bonneville
Administration, the huge

Last

power.
^

Northwest

the

which is dominated by

72% of the residential and 58%
r

both
plants and

power,

company's

the

from

the favored

be

to

seems

rate

competitive

where

land,

schedules

hydro

cheap

of

1936 -37

38

telephone

calls

3% for
(around

of course, the re¬

dential rate is,
sult

-

throughout the world.

use

only

not

The low resi¬

customers).

5,000

Light Co. in Port¬

Power &

heating

house

electric

•'operates in competition with Pa¬
cific

70%

ranges,

company

1937

39

facilities have
than doubled since
World War II, but shows more

saturation for
for
electric
for water heaters,

66% for washers and even

of the lower Wil-

areas

liamette

the

serves

Finds

pliances, with 93%
refrigerators,
72%

rapidlygrowing City of Portland, Oregon
and a major portion of the rural

''

-

than one-half of such

more

units in

ap¬

company
heavy use of

very

up

prise

has

the

2.77c)

of

age

1938

PRESIDENTS

PAST

nation's telephone units now com¬

Portland General Electric Company
General

Portland

IBA

Telephones

Not

person

Olderman, Asbeck & Co.
O

only

Union Commerce

there more tele¬

are

world, but

Bldg.

Cleveland 14, Ohio
Member: Midwest

Stock Exchange

in 1952 than in 1948.

$1.80

(which rate has been paid
some years)
to yield 5.7%.

for

Mairs Admits Power

Partnership

To

Minn. —George A.

PAUL,

ST.

Counsel,

Investment

Jr.,

Mairs,

Building, has
George C. Powers, Jr. to

First National Bank

admitted

partnership

Baxter, Williams &

Co.

an

Distributors of

was

search

CORPORATE AND MUNICIPAL

has

Powers

been

ESTABLISHED 1908

1930;

associated

investment

the

with

Fk,U, Marls & Co.

Prior thereto

with him since 1946.
he

as

investment counsel since

Mr.

Originators, Underwriters,

Mairs
has been

known

Mr. Mairs

Powers.

will

firm

the

and
be

henceforth
and

re¬

Underwriters and
Of

Corporation.

Municipal & Corporate

SECURITIES
To Be

Union Commerce
MAin

Building

50

West

Broad

FLetcher

1-3215

Street

South

Penobscot

WOodward

5404

New York

Philadelphia
12

3368

7,0

12th" Street

Pine

WHitehall

LOmbard 3-2055

Street

4-1875

of
Building

1-7822

Spring,

Broad

Exchange,

Spring &
George

MEMBER




MIDWEST

STOCK

EXCHANGE

of

the firm name

Stewart

&

Co.,

25

York

City,

the New York

Stock

New

Street,

members

Securities

Spring & Co.

Effective Dec. 31
Detroit

Columbus

Cleveland

Distributors

department of First Service

will
Co.

be

changed j to

On the same date

Stewart, Exchange mem¬

ber, and Alfred T.

Manacher will

withdraw from the firm.
4"

1556 Union Commerce

CLEVELAND

Bldg.

14, OHIO

Telephone PRospect

1-2770

Teletype—CV 174

1707

Union Central

Bldg.

CINCINNATI 2, OHIO
Telephone Main

Te!etype—CI 197 &

3776

CI 150

94

The Commercial and Financial Chronicle

(2454)

mmm ill

IBA

tpMffitHMMNK Continued

the

course of the
past ficsal year
Europe has received a grand total

From Cold War to Hot Peace
tive

fashion

fense!).

their

(for

de¬

own

feel hurt by the
of American sym¬

They

apparent

drift

pathies

toward

to

dictate

the

terms

further

of

This

aid.

new

American
crucial

of life—based

way

support

*

A

billion in American

gifts and is not supposed to re¬
ceive less this year if the indirect
aids are taken into consideration.

1931-32

1934

1935 -36

3

page

of at least $3

PRESIDENTS

PAST

from

Thursday, December 17, 1953

.

—

has been

on
so

question

facing Eu¬
thereby. Our Al¬

ingrained into the European pic¬
and rope is raised
ture that its abandonment
might'
Spain. They resent the tendency lies have found the Eisenhower
mean a quasi-revolution.
That is
of our policy to draw on their
regime surprisingly
unreceptive where Russian policy enters.
:
manpower while reserving the de¬
to suggestions such as -a $5 billion
r Moscow's
line should be clear.cisive heavy weapons for America.
stabilizing fund the British were To maintain its- claim of
being;
They would much prefer to be the
demanding last spring. They have the Pillar of Peace, it has to!
producers of Weapons — of the to
consider
the possibility
that avoid creating new war-like ten¬
atomic variety,- in particular—to
American aid will cease some day,
sions. - It has to take the defensive
be sold to America. And they are
]
or
at least be very substantially
all along the line (but to threaten!
worried that our feverish defense
cut.
But they are not prepared
the
opposite if Europe follows;
preparations bring down the curse
for any
self-adaptation such as the American program).
it is supposed to remove: War with
Peipingraising their own productivity by should not embark on major new!
Russia. It is with this background
10
to
15%
(which is all they operations either in Indo-China or
in mind that the results of the
would
need
to
be
self-reliant). in Korea, is the logic of the situ¬
Bermuda
must
be
conference
Britain's
foreign
exchange
re¬
ation.
But by the same
awaited.
logic, in
At Bermuda, Churchill and La- covery last year slowed down in neither place
is there more in

f, mky

Germany

-

Orrin G. Wood

G.

Allan M.

Bovenizer

W.

Pope

niel

Weld & Company; Pub¬ ready heavily
licity Chairman, Albert W. Moore, commitments
Rothschild & Company.

L. F.

(al¬

"Lisbon"

arming.

They

argue:

BOSTON, Mass.—At the annual

of

directors

The

J.

elected:

announced

the

jamin

President, David B. Imgram,
Tucker,
Anthony
&
Company;
Vice-President, Alfred A. Wagner,
Coffin & Burr, Inc.; Treasurer, W.
Donald Silcox, Eaton & Howard,
Inc.; Secretary, Thomas Lamb, Jr.,

Wyatt

of

election

(2)
may

Ben¬

Moran
both

as

Assistant Treasurers

banks.

named

William

and

Mr.

Moran

Assistant Trust

was

Officer

Schroder Trust Company.

of

also

As

to

capable

payment

viet

menace

were

Hoover

saying

banned

be

(as

super-weapons

Herbert

event, the So¬

can

de

a

at

year

U.

Rhee

her
balance
of
net deficit of $540

gained

$230

total

a

of

$1.46

billion

is

a

the

essential

to

remember

that

has

other

hand, the
poorly advised

be

to

proceed

now

for

Once

may

least they may

by

just

up

the

a

formalized treaty

signed,
be

reopening the
dangerous. The

hope to accomplish

sitting tight is
Western

to

Alliance

break
on

Taft

Russia's Marshall Plan

Field, Richards
ESTABLISHED

8c Co.

While

1908

their

ceeding

armaments

apace,

have

Underwriters and Distributors

has bogged
to

The

least

down

pro¬

may

revised.

book

can

pro¬

and

thoroughly

they

credit side

Municipal & Corporate

the

on

their "peace drive"

of

is the postponement of Germany's
remilitarization.
That is implicit

Securities

in

the

Bermuda

Dec. 4)
a

CINCINNATI

be

are

European

our

gram

Of

MUNICIPAL BONDS

Soviets
must
be
highly
satisfied with this state of affairs.

CLEVELAND

Union

to the effect of convoking

Four Power

future.

meeting in the

Once such

tiniest

Russian

will

Britain

Cincinnati

Building
2, Ohio

kept
The

concessions, to be

serve

and

Trust

near

meeting takes

a

place, the debate can be
going for quite some time.
sure,

THE W. C. THORNBURGH CO,

(of

agreement

as

France

for

excuse

to

insist

on

further

delays, to say nothing of
"procedural" delays. And in the
Europe's will to

process,

DEALERS and DISTRIBUTORS

be

further

The

u

:

.

v

-

MUNICIPAL BONDS

.

is

this

on

•

.

softened.

diplomatic

Soviets

OF

not

side.

Western

same

cal

philosophy

the

Company

kind of politi¬

Walter, Woody & Heimerdinger

that

prevailed

MUNICIPAL BONDS

in

part of the 1930's. At
time, Hitler was less popular

than

PHONE CHERRY 6111

Europe—

latter

But

CINCINNATI 2, OHIO

the

appreciated

Germany and Spain—
has become
overwhelmingly con¬

that

Provident Savings Bank & Trust

of

success

fully

excepting

verted to the

BOND DEPARTMENT

will

arm

the

Bolshevists

the

Europeans

403

DIXIE TERMINAL

today.

are

were

CINCINNATI 2

con¬

vinced then as they are now that
the
potential aggressor has too
much trouble
at home
to
be a

danger

abroad; and is too weak
in comparison to his
adversaries, to have a serious
chance of winning a war. There¬
fore, he will
not
fight
unless

in

any

case,

forced

to

—

is

the

crypto-logical

conclusion.
Russia's
better

Seasongood & Mayer
INVESTMENT

SECURITIES

Hitler

•

■

to

■

ica




the

asks

not

CINCINNATI

2, OHIO

State and Municipal

as

for

is

accomplished

divide
of

the

Interest.

world
That

the European minds.

ing!
Ingalls Bldg.

she

Bonds

strong

so

into

is

the

obvious

It is evi¬

that the Soviets

enough

to

make

are

real

trouble and that further weaken¬

★

j

204

to

dent to them
not

i

of

even

does

appeasement,

balance of power idea

Established 1887
■

All

She

facts and renewal of the Churchillian program of exactly 10 years

Spheres

,

★

position is

that.
for

did.

recognition

ago:
i

moral

than
ask

even

Braun, Bosworth & Co.
Incorporated

Russia would make Amer¬

overwhelmingly

might then be able

strong.
to

dictate

Municipal Bonds

We
to

Europe; and as they see it, a
strong section of the Republicans
would like nothing better than

Toledo

-

New York

-

Detroit

-

the

question of Red China's recogni-

rather

The

to'

Why

the pots boiling — as
the.y boil for their future

been

conflict

It

in

as

benefit?

half

alone.

war

would-

abandon South

keep

long

budgetary '''deficit,
the
counterpart
provide $785 million

Indo-China

the

were

not

dollar

will

(unless

that

formal peace in those areas.

billion,

leave around

On

would

they

to

us

Soviets

although

funds
for

will

force

if

Mutual

year

or

Korea).

million

S.

which will not end her dollar def¬

armistice

trouble

starts

put us oli the spot as peace-break-1
ers

military expenditures
and $460.5 million by way of the

cal

than

prospect

present

Seversky,

years!!)
by ground forces.

than

by

Robert

and

ran

having

from

too,

any

current

million in fiscal 1953, this in spite

(3) That there is no reason for
straining their resources any

That, in

the

Security program. She is
supposed to get in the current fis¬

That
cutting
the
burden
relieve America, too;

(4)

of

standstill

a

France,

icit and

of

half

at

longer in view of Russia's patent
"peacefulness," and

,

F.

not

are

hanced American aid;

Henry

Banking Corporation
and Schroder TrustCompany have
Schroder

4, the following officers

they

of carrying the burden—or selling
it to their countries—without en¬

Elected Officers

Club held at the University Club

That

is

and

of

(1)

election of the Boston Investment

were

to

were

Elects New Officers

Dec.

reduced)

first

on

their

of

for

the

insist

to

reductions

White,

Boston Invest. Club

on

expected

were

further

Chicago

-

Cleveland

-

Cincinnati

Volume 178

tion

Number -5282

,

The Commercial and Financial Chronicle

.

.

silver

demoralization).

The economics of the constella¬

tion

is

ing

in

equally important. Figur¬
current American prices,

Russia must have taken out of the

European

satellites

at

plus

Fin¬

reparations,

nish and Italian

some

billion

$20-odd

worth

not

counting

least,

newly

and

territories,

conquered

.

Sales

(and Nationalist China's con¬

sequent

of

goods,

the

$14

*

billion

war-time lend-lease.

This

of

addition to
the an¬
everybody's prayers (ex¬

and
to

swer

cepting
and

are

Western
producers
Russia's gold re¬
have been over-es dmaied;

-

but

two

even

lars

worth

If

years

to

go

may

of

sort

a

Plan.

three billion dol¬

or

a

long way—
Marshall

Eastern

some

ards.

has

it

But

come

to

an

abrupt end; the satellites are ex¬
Nay,
Russia .has
to

hausted*

help China, support North Korea,
etc., and carry the burden of tre¬
mendous armaments, all these in
-

an

badly managed and
lacking work
incentives.

economy

sorely

.

of Davies & Co. of

That is the source of her domestic

crisis, Stalin

which

lan

with

it

been

would

countries

World

War

III.

That

mean

F.

senior
of

&

Co.

&

Davies

Co.,. organized
1936, main¬

or for the dollar devalua¬
predicted with great assur¬
ance by London.
In any case, she
could not wait any longer.

gold;

in

tion

tained

quart
San
I"'.

Thomas

leaves

other way out but trade.

no

.

Europe's bargaining power has
been

incalculably enhanced—that

East-West trade
Russia
'

for

throws

it

lantic

alliance.

what?

ited.

from

as
now

worker's
coal

is

Europe

is

to

The

grain

restore

morale.

losing

to

heading

Polish-

markets;

for

oil

are

coal

sur¬

timber, potash
dumped occasionally,

slipping and Rus¬
sia's potential customers are hurt.
prices

result

of

the

circum¬

It does not have to swal¬

stances.

head-

in

ers

as

factories

are

much

too

jdid two years ago at Lisbon.

This

change in the global political

climate

long

as

America

last

not

may

it does, it means that
lost

has

of the West.

the

—

leadership

It cannot be

by extra-spending
ments

but

long;

not

or

the

if

regained

by appease¬

keep their hold

on

Republicans

be

still

or

a

Perkins

son

N.

Y.,

&

Co.

west

Co.

and

of

name

James

M.

con¬

and

Broadcasting

and operator in the United

States.

The

Pfd. Stock Placed

has three wholly

company

owned

subsidiaries;
namely, Birmingham Broadcast¬
Broadcasting
Co.
has
ing Co., San Antonio Broadcasting
placed privately $1,500,000 cumu¬
operating

Storer

Co. and The Florida Sun Publish¬

lative convertible preferred stock

(par
Co.
it

Reynolds

Davies

owner

Storer

and

was

or

Oscar

E.

announced

Storer

ly

through

$100)

Reynolds

Dooly
Dec.

on

&

ing

&

15.

subsidiaries,

The

publishes a daily news-*
in Miami Beach.

Storer

capital

owns

also

95%

owns

Caribe, S. A., which

mitted

broadcast

cense

Reynolds
partners in California.
the

newly

acquired

general

as

Offices

firms,

of

with

vision

pany

& Co.

(as
was

attracted to

and

five

broadcast stations.

tele¬

On

the

basis of such ownership the com¬

present personnel, will be contin¬
ued as branch offices of Reynolds

Reynolds & Co.

stations

is

the

largest

distinguished

radio

and

independent

from

to

station

construct

servicing

a

tion

will

Jan.

1, 1954.

li¬

Cuba.

under way

that the sta¬

about

telecasting

begin

del
a

television

Havana,

and it is anticipated

broadcasting

television

holds

Construction already is

network)

the

of

Television

of

stock

and operates seven standard radio

to

subsidiary

Florida

and

paper

Broadcasting Co., direct¬

through

Co.

owns

Co.,

William R. Rice, formerly partners
in Davies & Co., have been ad¬

>

Coast and the 11 Davies & Co. of¬

awakens

to

the

fices will

give the enlarged Rey¬
organization a
firm position in northern and cen¬

nolds

tral

California.

the

In

Francisco

had

in purpose

en-

v

investment

Co.

unity

Rochester,
1901, having
July 1, 1953.

The combined business will

San

of

Erick-

year,

of

in

on

devastating consequences which
lack

with

relative stand¬

circling of Russia is in the cards
the

mem¬

consolidated

organized

been absorbed

&

Henry R. Hayes

the west by the rapidly developing
business potential of the Pacific

for

slowing down in the en¬

—until

Exchange

a

the coming months, possibly

couple of years,

For

Congress.

addition

to

DEALERS

&

IN

its

Davies

offices,

branches

MUNICIPAL AND CORPORATE

in

Berkeley,
Oakland, Sacramento,
San Mateo, Santa Cruz

Carmel,
Salinas,

tails.

expensive.

Stock

to

tinue under the

it

as

York

firm

Trowbridge Callaway

Henry T. Ferriss

Francisco

Staiey

Reynolds & Co. this

low American dictation any longer,

are

Manufactured products from cornmunistic

net

ber

the

Russian

pluses.

the

is lim-

in 1933, is scarcely
when food is the

needed

item

opium

Russian

send

To

Silesian

but

everything.

is

do

overproduction

Chinese

for

Russian

and

almost

of

Chicago,
possible
first

.

with

countries

the

outlet

.

of the At-

capitalist world so often
does; in fact, they are constantly
as

short

.

monkey-

Trade—but

Bolshevist

"suffer"

not
-

another

into the gears

wrench
,

happens to suit
political reason, too:

a

New

Russia.

28

by

—

more

-

an¬

Reynolds

her

Stalin, of her

no

1927

own,

partner

for the famous
depression that would

raise the purchasing power of

its

was

Staley,

waiting

American

1929-30

of

Thomas

coercion, • and
Then, she may have

reparations.

31

-

York

nounced

robbery,

through

Co.

&

New

fact, mentioned before; that
could get the wares abroad

she

1930

Boody, McLel-

rid of its gold—
is totally irrelevant to its
get

and 11 offices
Incidentally, one by-product of
in California,
urgent
need
for
goods
from the Russian gold sales is the quiet¬
abroad. Credit from the only pos¬
ing down of devaluation prop¬ while Boody, McLellan & Co.,
sible source, from Washington, is aganda in this country.
Raising formed 74 years ago in 1879, had
available
at a political price. the American gold price would offices in New York and Brook¬
Trying
to enslave
and
exploit amount to a huge subsidy — to lyn. The merger marked the third
or

PRESIDENTS

California, and

of the

possible and raised
extent the living stand¬

PAST

ing firm, has merged the business

monetary system—it was because

to

„

Reynolds & Co., 120 Broadway,
New York City, investment bank¬

for

hesitated

Moscow

huge forced capital import made
recovery

IBA

Over Davies Firm

the

her

.♦

mm *

Reynolds & Go. Takes

hoarders).

serves

as

in

gold,

platinum,

*95

(2455)

SECURITIES

and Santa Rosa.

Acquisition
offices

will

number

of

Reynolds.

these

of

additional

increase

offices

to

32

the

maintained

SPECIALIZING

IN

OHIO

MARKET

by

Prior to the consolida¬

tion, the firm had 19 offices in six
eastern

SWENEY

CA RTW RIGHT

INVESTMENT SECURITIES
Huntington Bank Building




Columbus,

Ohio

&

CO.

states, with principal offi¬

in

New
York, Chicago and
Philadelphia. Headquarters are lo¬
ces

cated at 120

Broadway, New York
City, with branches in the Empire.
State
and
Chrysler
Buildings;
Rochester and
Syracuse, N. Y.;
East
Orange,
Morristown
and
Vineland, N. J.; Allentown, Lan¬

WM. J. MERICKA
MEMBERS

caster, Philadelphia, Scranton and
York, Pa.; Hagerstown, Md.; Chi¬

Heights, 111.; and Durham.
Raleigh and Winston-Salem, N. C.
cago

A nation-wide wire

ing 6,597

miles

is

system

MIDWEST

STOCK

Co.,

(r

INC.

EXCHANGE

Union Commerce

Direct Wire—

Bldg.

CLEVELAND

Joseph McMiiuus & Co., N. Y.

cover¬

maintained

by

the firm.
With
Davies

the
and

admittance
Mr.

Rice

to

of

Mr.

general

partnership, the number of part¬
ners in Reynolds & Co. has been
increased to 27.

Neil L. Laughlin With
First California Go.
(Special

to

SAN

Neil

L.

The

Financial

Calif.—

Laughlin. has become
with the First

sociated

MEMBER

Central

Chronicle)

FRANCISCO,

MERRILL, TURBEN 6- CO.

as¬

California

Natl.

Bank

Cleveland

Builders

Cleveland

Trencher

Cleveland

Trust

Coffee

Cook

Diamond

Alkali

formerly

Diamond

Portland

Faultless

Rubber

Partner in

Davies

&

Co.

Glass

Gray

Fibers,

Cleveland

Hanna

A.

Company

Chemical

Higbee

Heintz

Lewis Welding

Company

National

Company

Company

Company

Jack'&

Company

Cement

M.

EXCHANGE

Harshaw

Supply

Company

Company Incorporated, 300 Mont¬
gomery Street. Mr. Laughlin was
a

of

MIDWEST STOCK

City

Inc.

& Eng. Corp.

Bank of Cleveland

National Screw & Mfg.

Co.

Perfection

Company

Union

Inc.

U.

Drug Stores, Inc.

S.

Stove

Co.

Company

Bank of Commerce
Truck

Lines, Inc.

Auerbach, Pollak to Admit
Auerbach, Pollak & Richardson,
30

Broad

Exchange,
Richardson,
1.

On

Steindler,

Upon Request
y

members of the

Jan.

Statistical Information Available

New York City,

Street,

will

New

York

admit

Jr.
Dec.

to

C.

Stock

Tjg^py

partnership

1612 Union

Commerce

Bldg.

Cleveland 14, Ohio

Tel. MA 1-6800

Teletype CV 67

31, Seymour A.

member

of

the

Ex¬

change, will retire from the firm.
ijr^rri

/

'

1

•

96

'

The Commercial and Financial Chronicle

(2456)

...

1

Thursday, December 17, 1953

*

MfSi G CO 113II H6ddS
IBA

PRESIDENTS

PAST

Wall St. Women's Club
TVT.O

V itiiorinn

Mrs.
1925

1926 -27

-

26

Continued from first page

1922

-

23

Cono.

Katharine

Charles

F.

elected

President

Noyes

Co.,

Inc., was
newly

the

of

organized 40 Wall Street Business
Profes¬

and

sional

en's

Worn-

Club

the

ing

just

been

the

by

the

1954 IBA Convention
in
The
ciation

Hollywood, Fla.

Investment
of

Bankers

America

in

Hollywood

Beach

Fla.

The

will

is

general

Bankers

planning
office

to

business

in

and

to

level

Asso¬

the

to

new

group

pate
the

ten

the

National

1954.

Wov. 28 to Dec. 3, 1954.

Joins

Gottron, Russell Co.

(Special
(Special

to

The

BEVERLY

Theodore
associated

Financial

Chronicle)

HILLS,

with

Horth

Canon

merly

with

Sutro

Drive.

W.

become

&

He

Financial

has

Ohio

become

Gottron,

Donald

—

associated

Russell

&

&

She added that

with

partici¬

to

with
other clubs chartered by
Federation

officers

Other

ing

New

the

of

club

organizational meet¬

Miss

are:

in

1.

Eveleen

Meenan,

Harlem Savings

Bank, First ViceMiss
Margaret
C.

President;

Co.,

change.
He was formerly
Ball, Burge & Kraus.

Co.

area

in any joint programs

elected at the

Chronicle)

Union Commerce Building, mem¬
bers of the Midwest Stock
Ex¬

for¬

Dempsey-Tegeler

Mead

with

Co., 275
was

The

CLEVELAND,

Calif.—
has

Holmes

B.

to

in

Street

plans

York's District No.

With Sutro & Co.

to

women

of

is

help them attain higher
policy
making
positions,

of

Holly¬
scheduled are

Club

Wall

the

and

Business

status

Mrs. Cronan said.

its

move

the

Woods, Charles F. Noyes Co., Inc.,
Second

Vice-President; Miss Rose
Cuomo,
Port
Warehouses,

F.

Miss Helen

Treasurer;
Anemostat

Corp.,

T.

Hayes,

Corresponding

Secretary, and Mrs. Ottilie Runyon, Dan
River Mills, Inc., Re¬

cording Secretary.
underwriters

distributors

dealers
.

Chairmen

Committee

have been appointed to serve un¬

MUNICIPAL

CORPORATE

BONDS

til

June,

1954:

BONDS

tive

Arts,

Miss

Aileen

Radio

COCA

COLA

COMPANY
-

Miriam

Health

and

and

T-V;

Safety;

Talon,

Inc.,

Miss Betty

lic

SOLD

Affairs; Mrs. Mildred Dowdall,

Dowdall

Employment

Education

and

Service,

Vocation;

Miss

Mary Haas, Dan River Mills, Inc.,

Clement A. Evans & Company
incorporated

First

national Bank

ATLANTA

3,

Bell Teletype at 596

Augusta

PRIVATE WIRE TO

PEABODY

8c

Main

CO.,

C.

Affairs,

and

Brown,

Banking

Miss

J.

Henry

News

Corp.,

Service.

GEORGIA
1921

&

Macon

KIDDER.

Evelyn
Schroder

Building

Tel.

Columbus

International

L.

D.

NEW

year.

This, it would

seem

its roots in

good hard common sense. It must not smack
"me-too-ism," and it must not subtly accept and embody
any of the basic ideas of the New Deal or Fair Deal

of

whether

not

or

they

are

given

a new

stamp. Some of the

more

disturbing current reports about the plans of the
Administration have had to do with
alleged notions about
deficit spending,
inflationary monetary policies, and similar
projects as means of combating recession. Precisely what
truth there is in these
reports, we have

ing, but

have

no

way

of know¬

faith in any program resting upon
the assumption that the Federal Government must
accept
we

no

responsibility for the maintenance of full employment
under any or all circumstances. Least of all do we
look
with favor upon any

by

means

better
some

implementation of such a philosophy
of procedures tried and found wanting for the-

part of the decade under the New Deal. Even if

of the current

have

rumors

no

real foundation there

nevertheless, other points where there is too great a
tendency on the part of some elements in the Administra¬
tion to accept

certain of the New Deal tenets—although,,*

possibly, without realizing that they

are

doing

so.

But

hope of real statesmanship is in danger from other
directions, too. Very influential elements in the Republi¬
can

party which will be present at the White House this

week have

given all too little evidence of

statesmanlike

attitudes about current

problems and issues. In

siderable

are

degree these

bitterly fought his rise to
still resent his presence

that personal
tions
a

play

a

number of

to

no

incon¬

anti-Eisenhower groups who
in the party, and who

power

there. At times it is all too evident

animosities and purely political considera¬

role in the determination of the attitudes of

key individuals
as

now

in Congress. Apart from

these, however, legislators will be parties

these conferences who

are

fundamentally opposed to

YORK

Battles & Go. Inc.
PHILADELPHIA, Pa.

—

Battles

&

Company,
Inc., 1528 Wal¬
nut

Street, in¬

vestment

curities,

UNDERWRITERS and DISTRIBUTORS

Joseph
Barnes is

INVESTMENT SECURITIES

se¬

an¬

that

nounce

of

O.
now

associated
wi t h

them.

M

for

a r nes

B

r.

who

SIXTY YEARS

in

has

the

ment

in

been

invest¬

business

Philadel¬

phia for many
years, was for-

Joseph O. Barnes

mer

i

The Robins

for

cm-Humphrey Gompamjjnc.

>/

RHODES

HAVERTY BLDG.

Teletype—AT 288




,

ATLANTA

the

1y

man¬

department

Kennedy & Co.

Garvin, Bantel Admitting
Garvin,

i

trading

INVESTMENT

1, GEORGIA

Long Distance 421

of

Bantel

Broadway, New

&

Co.,

P.

on

York City, mem¬

Jan. 1 will admit John

O'Brien

Donald

to
partnership.
C.
Gallagher will retire from

the firm Dec. 31.

BANKERS

Established 1925

.

Members New York Stock Exchange and Other National
Exchanges

120

bers of the New York Stock
Ex¬

change,

to

Program Needed

Jos. Barnes Joins

ager

no

per¬

evolved during the remainder of this
week must, moreover, be a
Republican program, a con¬
structive program, and an American
program which has

such factors

384

savannah

Eisen¬

Let

year.

program

Cal¬

Boyle,

lahan, Huntley & Kretzmer, Pub¬

COMMON STOCK

BOUGHT

Miss

Crofton, Mitchel B. Carroll, Legis¬
lative; Miss Elta Wheeler, N. Y.
School of Embalming & Restora¬

STOCKS

early this

construc¬

the

are,

Mrs. Cronan announced that the

following

A Good

The

Women's

Washington,
D. C. from Chicago in the spring

Hotel,

Dates

Investment

ciation

the

at

promote

more

activities.

Street

Wall

without

forthcoming since

leading

Cronan

of

Professional

Office to Washington

Asso¬

1954

again hold its Convention
wood,

IBA to Move General

been

should be clear to all concerned quite
regardless of
views held on this controversial
figure and his Washington
Katharine

aim

to pass

were

us,

of

Clubs, Inc.
The

has

campaigns next

Women's

mmmmmm. warn mm mmmmmmmmmm. i

Congress

suppose

issue of the

Professional

John A. Prescott

attract support in

that the Republican party can afford to
mit McCarthyism to become the sole or even
the

and

Business

Morris

than

National

Federation

Ray

action

one

granted

charter

a

can

hower Administration took office

The

has

schedule of action which

Tt

X V

sufficient to enable most of it at least to reach
the statute
books before Congress adjourns. There is a
certain sub¬
stance behind the Democratic

tive

Town

club

SO O
pp

if another six months

at

House.

Wp
TT
O

quips about "government
by postponement." They could become devastating thrusts

meet¬

held

the

Pliny Jewell

,

at

organiza¬

tional

A*
/XO

of

Cronan,

UNDERWRITERS and DISTRIBUTORS

of INVESTMENT SECURITIES
BROKERS of BONDS, STOCKS, COMMODITIES
I

Private Wires

•

Home Office: Atlanta

•

Phone LD-159

Volume 178

Number 5282

...

The Commercial and

t

Financial Chronicle

(2457) "87

I

what

is

reputedly the general drift of the Eisenhower

should be made
World

program.

It would be

pleasant if it were possible to say that

opposition is confined to

fact

that

Administration has

the

The

display

Such
not

much

so

a

announced

that

sistant Secretary to
President.

J.

Gorlon

were

and

A session

announced

York,

one,,

has

tired),

S.

Leland

invitation

shores

approval to certificate of increase

heart

Y.

N.

the

old

an

President-elect

from

the

Philippines
States

United

as

Chief,

to bring mutual

insurance

the

of

neighbor¬

a

Trust

born

a

East

River

over

in Strung,

in

>

❖

Assistant

Established

Members

of

1929

Exchange

Stock

Richmond

Philadelphia-Baltimore

capital

Exchange

Stock

re¬

Brooklyn, N.

and

Bank, New

the

of

tional

died

Hi

:

i\i

C.

Dec.

on

Sis

Annual

*

8 at his

the

ST., RICHMOND 10, VA.

A

Telephone 2-2841

Teletype—RH 460

home

of

of

the

First

The

Na¬

Jan. 12, 1954, when

on

Established May 20,

shareholders will be asked

to

Scott &

directors for the ensuing

21

year,

and to pass upon resolutions

to amend the Articles of Associa¬

tion for the purpose of
the

1893

River, N. J.

elect

Stringfellow
Members

New York Stock

Richmond Stock Exchange

Exchange

American Stock Exchange

permitting

(Associate)

declaration and payment of a

stock dividend

as

of Jan. 30,

of 1 /25th part of a
share

of

common

outstanding, and

Johnson,

1110 E. MAIN

•

si!

Meeting

of Toms

Bank

increase

George

by

Municipal Securities

****** ■ <

■

.

will be held

Fulton Street
the
it is an¬

Y.,

—

of New York.

State

Shareholders

Assistant

Equity and Bond Financing

i h

Walden, at the age of 53.

Avenue,

DeKalb

nounced

32,000

of
stock

common

si!

will be opened to the

velopment

of

consisting

i

DISTRIBUTORS OF

UNDERWRITERS AND

value, was approved on
by the Banking Department

The

Vice-President;

Stephenson,

Y.

N.

hundred years, ago.

a

J.

Edith

*

Savings

representative.

tered

cer¬

sale

in

the

of

shareholders
1954.

announces

Buford

R.

Walter

Scott

Marlon N.

Fitzgerald

S.

Robertson

Thomas D. Neal

Eldridge Longest

to authorize an

capital

additional
of

1954

share for each
capital stock

record

stock

by

shares

to

May

115 Mutual

James H. Scott
L. Thornton Fleming
Joseph J. Muldowney

Richmond, Virginia

Building

1,

With the approval to share¬

the opening of a President of "The Dime."
holders, it is planned to increase
mew banking office on Dec.
14 at
"Now that the United States is
the common capital stock of the
55 John Street, Corner of Dutch playing an ever-increasing role in
bank outstanding from $750,000 to
Street, New York 38, New York. international affairs," Mr. John¬
$780,000 by payment of a stock
Established in 1848, East River son said, "we believe the public

i;York,

New

Trust

York

George R. Bartlett, President of
Street
away—where is was the First National Bank of Walden,

mile

Sj!

Company.
%

New

Hi

on Jan. 31, 1953, he be¬
public on Dec. 17 in the main
Vice-President of Colonial office of The Dime Savings Bank

%

sit

:)t

increase

of

J,

i

tirement
came

Street,

par

the

the
vicinity—less

Cherry

than

Joint

Upon his

Broad

City members of the New
York Stock Exchange, as a regis¬

maSON-HagAn

par

Watertown, N. Y.

of

Dec. 4

facilities to the

banking

of

same

Advisory Secretary; and Edwin W. Billmire,
the Philip¬ Deputy Auditor.

York.

New

the

of

shares

each.

Northern

shares

Republic of
$
$
pines. When he returned from the
An
elaborate pictorial
Philippines in October, 1951, Gen¬
display
eral Hobbs became Deputy Com¬ showing some of the results ac¬
manding
General of the First complished by the International
United States Army, at Governors Bank for Reconstruction and De¬
Island,

15

Co.,

each, to $1,800,000, consist¬
18,000

of

$

Military

Group,

Street, members of the New York
and Midwest Stock Exchanges.

&

consisting

$1,700,000

value of $100

The Board of Trustees of The
inauguration in Manila, P. I., on
Dec.
30,
1953, as his personal Bowery Savings Bank, New York,
guest.
on
Dec. 14 appointed August M.

General Hobbs was stationed

York

Co., 315 North Fourth

17,000 shares of the par value

hood, it approaches once more

Magsaysay of the Republic
Philippines to attend his

Ramon

has become
Hemphill, Noye»

Bird

capital stock of The Schenec¬
tady Trust Company, Schenectady,

River moves into

East

as

its latest quarters

(re¬

by

M. Simon &

A.

with

of

$800,000,

Now

Dec. 15 that savings

honored

been
from

associated

LOUIS,

the stock, from $700,000, consisting of
West Side—far from the 28,000 shares of common stock of
of the river whose name it the par value of $25 per share, to

upper

New

Hobbs

Dec. 4 gave

on

M.

John

Mo. —Edward E.
Hawkins is now affiliated with I.
ST.

Rockefeller Center and one on

of the bank's officers, Major

General

of

on

(Special to The Financial Chronicle)

*

State of New York

With Hemphill, Noyes Co-

I. M. Simon Co. Adds

in

is

Banking Department of the

The

spread throughout the City with
five
offices
including
one
in tificate

President of

Company,

Trust

*

*

bears.

Colonial

As¬

Assistant Vice-

Korntheuer

Mr.

Company,

appointed Assistant Cashiers.

Arthur S. Kleeman,

Korn-

from

pany's Scarsdale office.

ing

F. Gorring

Henry

G.

Lewis B. Franklin

Roy C. Osgood

Y.

charge of The County Trust Com¬

of $100

and M. Maxwell

Walter

promoted

was

The

Irwin Bobson

of

Trust

N.

Plains,

White

17

Shapiro were advanced to Assist¬
ant Vice-Presidents;
and Morris

■■ ?

County

The

of

Company,
theuer

*

■

Wilson,^ Chairman

Board

the

*

*

■

Andrew

'News About Banks and Bankers
J.

». *

World Bank.

in the

of

page

\..

plied by the International Mone¬
tary Fund, sister institution of the

'Thirties, the 'Forties and early 'Fifties.

from

of

ounces

or

currency

gold. This currency display is sup¬

would permanently damage the
party and, for that matter, Congress, and certainly raise
a
very serious danger of a return to power of elements,
groups and factions dominated by the philosophy of the
New Deal and the Fair Deal which so nearly brought us

Continued

used

actual currency

of

American

of frustration next year

to ruin in the

map

by the 55 member nations with its
value
translated
into
terms of

which threaten

disastrous program as no program.

1915 -17

21

operate

samples

—

the elements in the situation

are

-

colored

including the
management of patronage. Nowhere is therein evidence
any systematic, well-rounded set of proposals designed or
supported by these dissident groups in the party.

*

large

a

1S20

of

the
World Bank,
photographs of projects
financed by that organization, and

and

•.

management of public affairs

includes

Brooklyn

Dime

The

at

PRESIDENTS

PAST

showing the 55 nations which own

done this or that;

not

still another is dissatisfied with some other factor
current

IBA

ing countries which suffered war
damage."

even

or

de¬

foreign countries and rehabilitat¬

centered largely
upon the New Deal-like deviations of the Administration.
It would be even more encouraging if it could be asserted
that these elements in the Republican party had evolved
a statesmanlike
program of their own. The fact is, how¬
ever, that no indication of any such action on their part
has come to light. Since the unfortunate passing of the
late Senator Taft, the situation both in the Senate and the
House has seemed to reflect something approaching chaos.
One is violently opposed to this or that element in the
Eisenhower program; another is greatly displeased by the
this

in

assisting

productive resources in

veloping
No Course Charted

of how the

aware

is

Bank

Telephones 2-7234 and L. D. 3

Teletype RH 190
Private

Wire to Clark, Dodge

& Company, New York City

dividend, and simultaneously
Bank's first office was should have a clearer understand¬ transfer $90,000 from Undivided
the East River, at 145 ing of the activities of the World Profits Account to Surplus Ac¬
Bank. Likewise, since The Dime
{Cherry Street. In 1932 the Italian
count, increasing the Surplus Ac¬
of Brooklyn has nearly $4,000,009
count from

Savings

-truly

on

I Savings Bank and the Maiden
j Lane Savings Bank merged with
I

East River, and now the bank

is

invested

bonds,

International

in
we

feel

our

$1,200,000 to $1,290,000.

Bank

Continued

depositors

on

page

98

f

VIRGINIA-WEST VIRGINIA
NORTH and SOUTH CAROLINA
MUNICIPAL BONDS

Municipal Bonds and Corporate
Securities
Local Industrial & Utility

Stocks

Trading Markets
Retail Distribution

F. W.

CRAIGIE & CO.
DEALERS

616

EAST MAIN




STREET

'«f

IN

STRADER, TAYLOR & CO., INC

STATE and MUNICIPAL BONDS

Telephone 3-9137

I?

,1^

RICHMOND

15, VIRGINIA
Teletype RH 83 & 84

LYNCHBURG, VIRGINIA

ID 39 TWX LY Tf

98

The Commercial and Financial Chronicle

(2458)

Continued

from

97

page

...

Thursday, December 17, 1953

Keay and E. E. Monteith, Jr., to
Assistant

GROUP CHAIRMEN

IBA
CALIFORNIA

ROCKY

News About Banks and Bankers

PACIFIC

MOUNTAIN

NORTHWEST

The

shareholders

asked

authorize

to

in

crease

also

are

being
in-

further

a

the

land, Ohio, increased its

capital

stock

from

$11,250,000 by sale of
effective Nov. 30.

of the

Lockland,

the

value of $10 each, and

par

shareholders

May

1,

to

record

would

1954

rights

of

accorded

be

purchase

of

as

3,000

new

The

First

to

Bank

with

of

The

common

Bank

sale

$50

a

the

of

share

$150,000,

of which

be applied to

Donald F. Brown

J. Earle Jardine, Jr.
William

Co.,

R.

Boettcher

Staats &

Los

and

J.

R.

Company,

Angeles

Greene

Elbert H.
&

Co.,

Portland

the

shares

at
to

amount

$30,000

would

the Capital Account

and $120,000

Williston, Bruce

3,000

would

would

Surplus

be applied

Account.

A

to

formal

notice of the purpose of the meet

Denver

ing to be held

Jan. 12,

on

With J. A. Dawson Co.
(Special

to

The

Financial

Joins C. H. Reiter Staff

Chronicle)

(Special

CHICAGO, 111.—Robert E. Wick
has joined the staff of John A.
Dawson & Co., 1 North La Salle
Street, members of the Midwest
Stock Exchange.

to

The

Financial

Chronicle)

Ohio —W.

CINCINNATI,

Ross

The

Dunn has been added to the staff

at

Building, members of the Cincinnati Stock Exchange.

main

The

i*rn

•

Company,

State

a

member

National

wit*

r»

effective

Nov.

office

The

30.

and

the

Distributors

for¬

Bank

at

Wilkinsburg in
Monroeville, Pa., will be operated
as branches
by The Colonial Trust
Company.

Dealers

*

if

Philadelphia, Pa.,

MUNICIPAL BONDS

nounced

One is

Public Utility, Industrial & Railroad Securities
Active

Market

in

Local

MIDWEST

STOCK

C. F. CASSELL &
•

EXCHANGE

Phones

2-8157-8-9

Bell

two

an¬

National

of

Bank

serve

of

CO., Inc.

and

Ches-

and

National

Bank

Phii'adelphia

Chester

of

National

Cambridge

-

Mont.,

director
branch

of
at

ant

Reserve

a

bank's

Helena, Mont,

CoL Robert E_
&

c^y,

Trugt

tive

Mo.,
in

Portland,

des Islets has

Corapany
special

as

the

J. Mcintosh, Assistant
Manager,
Foreign
Department,
was
promoted to Assistant VicePresident.

joined the staff of City National
Rank

Kansas

representa-

business

new

.

depart-

Seattle,

common

First

fective
dend

*

I.

capital

National

Ala.,
Dec.

by

a

from $475,000

of

Office

was

advanced

Vice-

to

President.

ef¬

Tacoma, Washington Office

divi¬

stock

Washington

of

increased

was

2,

stock

Bank

Office

Wallberg, Assistant

Manager,

The
The

Eric

.

*

Oregon

Marshall A. C a s e. Assistant
Manager, was elected Vice-President-

ment'
*

Vice-President.

Andrew

to $600,000.

A.

L.

Sherrill

Babbit

and

become

Ralph

W.

Vice-Presidents.

Fred
the

F.

Florence, President of

Republic

National

Bank

of

jja||as

Texas

announced

Dec

on

following promotions: WalBrogdon

and

John

R.

Sears,

Vice"Presidents> and

James

California

Calif.,

will

Bank,
open

Los

its

Angeles,
Cren-

new

shaw and 147th office, located
Crenshaw Blvd

pran^
bank

to

p.

on

Dec

at
21

King, President of the

announced.

The appointment of R. A. Wen-

w- zel, former Manager of the

Bank

bank^s

Philadelphia
National will exchange two snares

Teletype—CHARVL 95

for each

three shares of

other

shares

THE

Chester-

agreement

merger

receiving seven
Philadelphia National

of

stock for each share

Both

Peoples National Bank

each

of

these

STATE and MUNICIPAL

voted
of

of

plans,

the

other,

by the board of direc¬

the

respective

banks

PREFERRED and COMMON STOCKS

Anderson & Strudwick

for

submission to shareholders for ap¬

CHARLOTTESVILLE, VA.

UTILITY, RAILROAD, INDUSTRIAL BONDS

held.

now

merger

independent

were

tors

CHARLOTTESVILLE

UNDERWRITERS

DISTRIBUTORS

—

proval.
Frederic

A.

Potts,

The

Philadelphia

that

Municipal Bonds

the

sented

President

National,

plans will be pre¬
the shareholders of The

to

annual

Virginia, North Carolina, and West Virginia Municipals

R.

Faith,

Chester-Cambridge
that

their

Jan.

at

807 East Main Street

its

President

11

of

(P. O. Box 1459)

$4,126,936.24

Bank,

shareholders
at

the

SECURITIES

ACTIVE MARKETS IN LOCAL SECURITIES

meeting Jan. 19.

Douglas

CAPITAL STRUCTURE at close of business

Bank

INVESTMENT

of

said

two

Philadelphia National

Specializing in

1953,

renamed

was

the

Bank,

Office

W.

agreement

merger

provides for Montgomery National

30,

Arthur

mergers.

shareholders

November

County

ef-

G. Harry Hutaff, Assistant
Cashier, was advanced to Assist¬

Minneapolis.

River

are

-^resident.

Re-

ter

The

Dealers in

Advi

Federal

San

Schiefer, Assistant
Vice-President, was elected Vice—

A. W. Heidel, Vice-President of

Cambridge Bank stock.

OF

the

"ailas> Aexas> announced on Dec.

Under the

Head

reelected

was

Federal

delnhia°Nationai W"H ^ Phlla~ from Assistant Vice-Presidents

114 Third Street, N. E., Charlottesville, Va.

•

for

15

agreement between The

art

the

Montgomery

EXCHANGE

STOCK

Dec.

on

President

ter-Cambridge Bank & Trust Co.
of Chester, Pa.
The other agreement provides for the merger of

Securities

MEMBER

PHILADELPHIA-BALTIMORE

plans

Philadelphia

of

directors

Dothan,

if

The Philadelphia National Bank,

VIRGINIA

of

formei

branch

The

of

A.,

staff of the bank which

Council for 1954 by the board

sopy

Bank

k

merly operated by The First Na¬

Underwriters

member

System, has ab-

First

Wilkinsburg, Wilkinsburg, Pa.,

tion

Minneapolis, Minn.,
a

of Governors of the

u

Ringland,

N.

following changes in the official

•

Broadus,

Reserve

sorbed

of C. H. Reiter & Co., Union Trust

A.

z

Trust

Pa.,

the Board

Federal
*

%

Colonial

Pittsburgh,
of

Joseph

Powder
*

Directors

fective immediately:

0f Northwestern National Bank of

1954 is

enclosed.

of

of California,

Francisco, Calif., at their regular
meeting on Dec. 8 authorized the

absorbed

to

The

Board

,

capital stock of $295,000 we^nt into
voluntary liquidation and was

at

portion

^a^WU-

R
, TT 'Haiz Webb and
Keed AA' miZ' Webb<aW

M

Tom Wren.

by The First National
$50 per share in pro-. Bank of Cincinnati, Ohio, as of
their respective hold- the beginning of business Dec. 1.
ings of common stock of the bank.
*
«
*
shares

»

■

liam

stock

new

National

Ohio,

kins, Frank Fields, David Grimes,

™h?^xHjQ^sorf

common

$9,000,000

capital stock from
$780,000 to $810,000, which amount
will be divided into 81,000 shares

Vice-Presidents.

Other, all elected Assistant
Cashiers, were Robert Carl At¬

stated

will

regular

RICHMOND 12, VIRGINIA
Telephone 7-3077

Teletype RH

vote

563

annual

meeting.
Shareholders

of

Montgomery

National, according to W. Frederic

Zimmerman, President
[;,/

/

'

....

r

A

1932

stitution,

'

1953

Jan.
><V:m

%

'

J.

*

*

:*

.

V

v:

to

two

submitted

vote

of that in¬

at

meeting

vote

with

The

TELEPHONE «-2ttf

v/%

19

ment

•

f

will

shareholders'

on

a

their

VIRGINIA

CORPORATE LYtt & S3

N. CAR.

LYNCHBURG, VA.
WCHIMHD,v*.

I

H0RF01K, VA,

I

W. VA.

t MUNICIPAL

LY81

CORPORATE STOCKS« BONDS

merger plans will
to the Comptroller

Currency following
by the shareholders.
As of Sept. 30, The
National
reported

DANVILLE, UA.

"

*

UNLISTED SECURITIES

IHOANOKE, VA.

WASHINGTON

SECURITIES

Philadelphia
deposits

Direct

of

Private

Wire

to

profits.

our

Total resources amounted

New

York

Correspondent

$853,643,000.
The

Chester-Cambridge

Trust

Sept.
deposits
of
surplus

flUJEFIEU), W, VA.

of

approval

Carl M. Loeb, Rhoades & Co.,

MUNICIPAL BONDS
^

Firm Marvels In

be

$760,255,000 and had $71,992,000
of capital,
surplus and undivided
to

::

for

agree¬

Philadelphia National.

the

TELETYPES:

special

called

and

30

statement

$26,717,000;

Bank &

undivided profits

taling $3,163,000 with
$30,186,000.

ESTABLISHED 1920

shows

capital
to¬

resources

Johnston, Lemon & Co.

of

MEMBERS

PHILADELPHIA-BALTIMORE STOCK EXCHANGE

SCOTT, HORNER & MASON; Inc.
LYNCHBURG.

UNDERWRITERS




VIRGINIA

DISTRIBUTORS

of

Montgomery National Bank,
the

same

$10,290,000;
undivided

as

date, had deposits of
capital, surplus and

profits

(including

serves) of $1,471,000 and

re¬

resources

UNDERWRITERS

Southern
Telephone:

Sterling

-

DISTRIBUTORS

By the sale
Central

of

new

National Bank

stock,
of

DEALERS

Building, Washington 5, D. C.
3-3130

Bell

aggregating $11,761,000.
■-

-

Branch

Office:

Teletype:

WA

95

&

W'A 28

Alexandria, Va.

the

Cleve(

\

Volume 178

Number 5282

.

.

The Commercial and Financial Chronicle

.

(2459)
Bell
new

Office,

Manager

as

bank, and R. H.

Assistant

ington

Manager of the

Office,

the

of

Cole, former
Wilm¬

IBA

Assistant Man¬

as

also announced.

ager was
7

The bank will provide residents
of
the
Gardena, Alondra

NORTHERN OHIO

adjoining areas
banking services including safe
deposit and escrow facilities.
(■

#

-f

■

The

Pacific

$

.

.

„

.

•

National

'/

,

Bank

Western Pacific
Favorable

individual
of

San Francisco, Calif., increased its

of

payment

Nov.

capital

27

from

stock,

effective

$1,122,000

870,000 by the sale of

$1,-

to

Last

of/.the
the

on

Western

final

$2.50

Pacific

directors

week

Chicago 'Great

$1.00

to with the old reorganization. The
continues .' to lower courts had held that Western

railroads

had

voted

realized

saving

of

arrearsr

Railroad

considerable

a

through

consolidated

preferred, and

jj

Company, which
the

filing

return,

tax

of

a

entitled

was

r

to

the benefits. Now this ruling
has, in effect, been upheld by the
asked ICC authority to
negotiate highest court in denying a re¬
.Effective Dec. 2 byrthe^sale of
the private sale of
$6,000,000 Col¬ hearing. Sources close to the situ¬
new
stock^The United States Na¬ lateral Trust
ation
feel
no
that
further
at¬
T.

#

•{•

stock.

with respect

news

accumulate.

common

new

also

the

regular

quarterly

Bank

S^n^JDiego, Calif.,

increased its
from

common

divi¬

capital stock

at

minimum

a

rate

coupon

not

to

in

due

price

of 99

exceed

tempts to upset the decision

a

5.90%

interest

Stevenson Partner in
Salomon Bros. Hutzler

serial

If the present

proved

it

is

ceeds from
be

serial
to

loan

the

on

and

to

in

that

quarters
next

dividend

that the

year

on

the

if,

as

gation.
will

pro¬

road

million,

been

the

in¬

funds

in

pany

has

if,

many

were

to

program

a

in

management's

summated. After the

Wall

Bros.

Street,

members

of

&

side

New

the

announce

Stevenson

has

general

been

partnership

effective Jan. 1, 1954.

firm

has
for

been
a

City,

York

New York

Exchange,

that

60

Stock

John

admitted

to

firm,

in the

Mr. Steven¬

associated

with

number of years.

the

beneficiary

within

news

the

Western

was

of

the

year

preferred

Pacific.

The

or

consistently held to the $3.00 com¬
dividend since reorganization.
The preferred

United

States Supreme Court has refused

the
is

ing

days' notice at $100

against

company

Pacific

Railroad
Company
operating company)

present
which

Western

of

the

beneficiary

two

of

should

be

substantial

dividends

(the
over

date.

in

felt

tax

the

losses

sustained

in

connection

accrued

to

State—County—City
Bonds

—

Warrants

or

the

m

would

Local

Corporate

Securities

Teletype BH 97

3,

31,

1953

Montgomery 2, Alabama

reduced

i

■

•

.

♦

ap¬

levels

current

feature

As

amounted

Pacific

been

Bond Department

meas¬

a

$12.88

to

tradition¬

efficient

its
been

in
improved

and
has

respect

has

highly

a

in

recent

ratio

tion

NATIONAL
OF

1

the

10

C

A

ma¬

1

years

a

for

^ATLANTIC
K.

S

ImM)

N

BANK,
V

I

L

L

E

this

status

through
comprehensive
property rehabilitation and im¬
provement program. Transporta¬
terially

dieselization and

llilii-iiii

Municipal Bonds

The

$9.25

and

property

Long Distance 9983

be

eliminated.

Western

ally

ALA.

and

stock¬

Senior

after, allowing
the preferred participation.

for

MIDWEST STOCK EXCHANGE

\

either serial

benefits, common share
earnings for the 12 months through

before,

BIRMINGHAM

op¬

of the

ure

Oct.

STERNE, AGEE & LEACH

the

participating

be

U. S. Government Securities

re¬

common

below

preciably

with

preferred.

the

would

charges

Dealers in

the

holders would be two-fold.

and

m

that

million

complete

new

a

to

Teletype ZP 67

is

It

refunding issue of

a

perhaps $20 million,
bonds

$31,850,200

released,

be

could

benefits

Bell

30

on

issue.

$10.1

will

with

C.

redemption

quarters

the

of

S.

Distance 51

share, plus

a

entire

many-

that

serve

time,

any

the

use

Long

Exchange

318,502 shares and

at

would require

It

retire

to.

the

of

amount

SPARTANBURG,

is outstanding in

to re-hear the suit of the old hold¬

callable

1892

Member Midwest Stock

has

company

mon

so

company

—

Established

A. M. LAW & COMPANY

distributions made

year.

Properties

par¬

The

that

eration

Branch

and

stock

common

in any further

13

good

past week

:iii;;iy

MEMBER

Southern Textile Securities

ever

in

nearly

years

Hutzler,

one

Dealers

CENERAL CORPORATE SECURITIES

ticipates equally, share for share,

reorganized

Murphy
Company,

SOUTH CAROLINA MUNICIPALS

has received dividends of $3.00 in

the junior equity since the

ago.
Another

Ohio

Columbus

Distributors

since the reorganization was con¬

stock, particularly
expected, earnings continue

was

Dennis E.
The

Cleveland

Underwriters

com¬

eliminate

any

road

Baxter

llayden, Miller & Co.,

long

outstanding $5.00 cumulative
participating preferred stock. This
participating feature has been a
thorn

time

will institute dividends

common

on

Dana F.

&

Pittsburgh

when,
released
they

paid

Salomon

Lynch, Jr.
Leonard

Lynch,

and

the

arrears

some

that

general

to mount. No dividends have been

5teven»on

Moore,

reserve

for

It

purposes.

assumed

these

this

released

be

would be utilized to aid the

por¬

a

Presumably

now

corporate

will

part to return

liquidated it is felt in

now

$10.1

aside

set

vested in U. S. Government Bonds

ap¬

off

pay

Mi)i

sets, in connection with this liti¬

company's treasury

preferred

had

on

tion of the funds spent on capital
improvements
in
recent
years.
With

of

McK.

and not carried among current as¬

application is

part

Pacific

reserve

instead.

basis

expected

a

earlier

sale of the bonds

in

used

basis

borrowing $4,000,000

short-term

a

cost

C.

Western
a

'en

Ml

in

prospect.

5V2%.

petitive bid for these bonds
this year,

are

SUB

m
r

1978,

and

The company turned down a com¬

$1,350,000 to $1,550,000.

Jo.m

^
/ .£

dend of $0.62Vi. The road has also

*

bonds

tional

son

OHIO VALLEY

PENNSYLVANIA

Park,
with complete

and

•}

GROUP CHAIRMEN

WESTERN

Jacksonville, Florida

Phone 6-5611

,

Teletype JK 182

months

through October reached the phe¬

nomenally low figure of 27.9%, a
improvement over the

substantial

DISTRIBUTORS

UNDERWRITERS

DEALERS

already satisfactory ratio of 29.7%
a

earlier.

year

Traffic

has

also

been

the current year and
as

SOUTHERN

if

the

at least

it

$12.50

on

up

now

will

company

the

in

looks

common

for

1953 as a whole, before preferred
participation, and $9.00 a share

MUNICIPAL

BONDS

after

favorable

long-term

outlook

factor

for

the

in

the

com¬

pany

acter

of

most

while

of the

the

service

stock

area.

advanced

sharply on news of the Supreme
Court decision, it is felt in many
quarters that the ultimate poten¬
tialities




Teletype: BH

have

by

Blair S.
287

no

means

UNLISTED
ALL

CORPORATE

LOCAL

ISSUES

SECURITIES

been

exhausted.

BIRMINGHAM
Telephone: 7-3175

Specializing in Florida Issues

is the dynamic growth char¬

Thus,

Stubbs, Smith & Lombardo, Inc.

Municipal Securities

participation.

preferred

Another

Southern & General Market

show

Blair
Blair

York

S.

S.

Williams,

Williams

City, and

New York Stock
away Dec. 11.

Pierce-Carrison Corporation

Williams

a

&

partner

in

Co.,

New
member of the

Exchange, passed

Barnett National

Bank Building

JACKSONVILLE
Long Distance 47; 3-8621

1, FLORIDA
Bell Teletype JK 181

99

103

\

The Commercial and Financial Chronicle

(2460)

Continued,

from

Steel

Output Rate Scheduled cording

steady

Industry
the

to

failed

A

year's

new

for

record

steel

a

thpdUhoX iSsfvffy4^e»
.

'

I

^,

j

Monday

By

the

week

ingots

.

,

000

net

Bacon,
Co.,

V/atling,

Whipple &
Chicago

C.

Lerchen
Detroit

Co.,

L.

&

E.

Shaughnessy

the

only

Sliaughnessy &

exceeded

Company,

1953.

Inc.

set

and

and

Issue

Program Now

sewer

The

and

additions

to

lines, and water
projects.

Government

Bank

for

Puerto

The
to

the

Rico

serves

as

failed

due

th4Terf, yiGld

situation, declares "Steel,"

intensifying comDetition

steel

elimination

prices

among

absorbing

are

increasing

an

finished

steel

$114.95

Municipals

declined

American

The

Institute

United States Government

or

Iron

Steel

the

op-

rate

of

steel

having

93%

of

tt steelmaking

capacity
will

of

at

companies

industry

entire

of

average

the

for

85.0%

equivalent

tons of ingots

and

to

steel

for castings as against

Union Pi.anti:us National Bank

1,955,000

long

DISTANCE

218

BELL

WIRE

SYSTEM

—

THE BANK

like

the

the rate

ago

Memphis 1, Tennessee

86.7% and
(revised) a week

tons

For

ago.

duction 2,044,000.

TELETYPE—ME 99

year

pro-

the

ago

2,236,000

the

at

pacity.
for

year

capacity

the

rate

and

Electric

Firm

reported, there
18,465 trucks made in this

ca-

off

Ifrom

7%

Last

Canadian

week

«Ward's" said.
4 9g6

at

according

to

States

Government

Securities

General

•

Market

Municipals

The

ah

coun-

price index,

_

Rradstreet

marked

in

$615
8.1%.

in
wag

th

k

4 23o

cars

and

j

t

eral

Rise

Moderately
rose

trend

Wholesale

Dec.

10

from

Inc.,

While

notes.

compiled
f

involving
more

by
*

&

Dun

Bradstreet,
*

Inc. The index closed at 276 07 on
Dec. 8, comparing with 275.32 a
week earlier, and with 283.46 on
the corresponding date a year ago.

°f 1952 and

or

grains

further mild use in the daily
commodity price index,

a

oc-

aoove tne id/ ana
wmcn oc
curred in the comparable weeks

Casualties

in

strength

liabilities

.,

180

tmaed to s^nSthe" duringi

climbed to
a

A decline, on the other hand,

broadened

appeared among small failures,
those with liabilities under $5,000,

f

nouncei^ent.

following

the

,irho„t

no

?Lr exp4rf subsid^^.l Cy

iS^fiui^of^^O

further prie advances in wheat,
price

r*r*r*—^
the CCC, and a
cut
Department
.

prediction by the
tuuulc
UJk
Agriculture
o f

rther

cumbed with liabilities ot $10U,0U0
or

of
UL

Kllc;„occ

Export business

fore, as compared with 25 a

and

wee" a§0'

flour

—
showed

«„

wh

in both wheat
some

improve¬

ment.

Retail trade and construction
accounted entirely for the heavier

Corn

was

firm at times but fin-

mortality during the week. Cas- ished slightly lower than a week
ualties amonS retailers rose to ago. Some speculative buying apJ!6 from 88 and among construe- peared in oats, attracted by the
tl0n eo^ractcrs to ^S from Jil. approach of Jhe end o^navigation

Meanwhile,

manufacturing

fail-

on

the Great Lakes. Offerings of

year.

of

ACTIVE TRADING MARKETS
WITH

RETAIL OUTLETS
★

electric

energy

8,661,131,000

the

Edison

Insurance

Public

Bank Stocks

and

Utilities—Industrials

Municipal Bonds
★

kwh.,
Members

Electric

Midwest

Stock

Exchange

★

current

increase

figure

of

Direct

represents

78,672,000

to

kwh.

Wire

Memphis Office and

to

Scherch, Richter Co., St.

Louis, Mo.

above that of the preceding week,
.and
an
increase
of
520,874,000;

kwh.,

Ill teir
OF

V

Vi

mm™

-J.
TELEPHONES

8-5193

•

ld-311

wire




•

TENNESSEE

ld-312

system—the

kwh.

Gar

wire

me-283

over

over

week

the

and

me-284

1951.

lark, Landstreet

Loadings Advance 11%
Preceding Holiday

Loadings of
the

compa¬

994,267,000

the like week in

Week
•

week

revenue

ended

Dec.

creased 65,805 cars, or

the

V

6.4%,

A

teletypes
bank

1952

Above

MEMPHIS

MEMPHIS 1,

or

rable

preceding

holiday

.

freight for
5, 1953. in¬
11%

above

week,

ac-

j

which fell to 36 from 69 in the
Previous week, but lemained
above the 20 of this size occurring

being

year

an-

week-end

the

over

1,

Jan.

+hp>

^ere were sharp ad-

year

based

are

the

and^ other commodities resulted in

this

which

ago.

at

Commodity Price

Continued

in

202

increase lifted casualties notably wholesale

$5,000

prices

Index Reflects Mild Gains

the preceding week, Dun & Brad-

of

food

of

moderately to 216 in the

ended

street,

gain of

a

wholesale level.

Commercial and industrial failures

or

chief function is to show the gen¬

1,945 trucks

Business Failures

year ago,

a

The index represents the sum
total of the price per pound of
31 foods in general use and its

tru(Jks

Institute.
United

,

Inc-» rose
stand at $6.65

output

j 2Q5

and

power

estimated

.

by JDun three cents to
&Rradstreet,
another

The week before it

carg

by the electric light
industry for the week
ended Saturday, Dec. 12, 1953, was

Quotations

..

totaled 5,957 cars and 1,565 trucks,

distributed

Dealers

The wholesale food

were

19 847

the

Offering!

and

Highest Level

In Ten Weeks

on Dec. 8.
This
the fifth successive
th ' previous week and 34'% be_ weekly advance and the highest
h[ndl the 27,839 in the like 1952 level since Sept. 29 at $6.66. The
week
current number compares with
try

Output Extends

amount

Advances to

the final

in

Week
The

as

Wholesale Food Price Index

_

agency

Advance of Previous
Distributers

52

figures

of

as

this

higher than last
Bids

tons

107.7% of

percentage

current \

the

1953,

was

The

the

upon

Firm

and

was

operating rate

Underwriter*

A

month

a

actual weekly production

placed

WIRE

week

90.7%

was

the previous

in

—.1 of the year. Last week,
the

begin-

week

1953,

14,

Dec.

1,917,000

the

an

capacity

ning

Bond Department

for

be

with

States,

00„

no

.

from 133 last week and 137

and

that

announced

from

erating

Securities

(revised)

down more sharply

on

net ton to $114.64.

a

_

.

,

base

As a
composite

price

re-

against 44. In contrast, the Middle

1951, failures continued to be 20% below the preresult, war total of 270 in 1939.

reduction

premium

of

nine

Atlantic toll dipped to 82 from 88,

^

business
cuisines?,

is continuing.

"Steel's"

and Arkansas

get
gei

charges to
Also, the

extent.

Mississippi—T ennessee

10
To

companies

freight

Pacific

the

Output Declines

A year
wee^ly
production was 87,526.
*n the truck area of the industry, production has been geared

week

sellers
seuers.

C°

weeJ^-

big

at the lowest rate since the strike-

steel
sieei

OFFERINGS

Auto

.

largely

Resources

is

AND

S.

97,010

is

record

adds.

BIDS

the

the New England

in8 ta
Wards Automotive Re- South Central States. The laigest
rises from a year ago were con¬
p0™fv
'
centrated
in the
New
England
The industry turned out 82,^27
and Middle Atlantic States.
^ars
week, compared with

to

Authority, the Puerto afflicted period of early August,
.>
The Government
Development Rico
Aqueduct and Sewer Au¬ j. yoz,
Bank for Puerto Rico, as fiscal
thority, the Puerto Rico Trans¬
In
the
week
ended
Dec.
12,
regent for the municipalities and
portation Authority, as well as the
production of steel for ingots and
Various authorities of Puerto Rico,
various municipalities.
castings was down to 85% of ca$>lans to undertake several pieces
The Bank marketed at $21,000,financing during the next two 000 revenue bond issue of the pacity. That represents a 2-point
years to a total extent of $60,- Water
A^C!lneofi'Srn
precedil?2 w<re.k;
Resources
Authority last A
*000,000 to $75,000,000, Guillermo
f16' That still is a
July to refund interim financing is
1,916,000 tons
Bodriguez, President of the Bank, and to continue its
capital expan¬ respectable output states
Steel
announced Dec. 15. Mr. Rodriguez
sion program. A total of $9,200,000 It
was not until the beginning of
Is in New York to discuss interim
municipal obligations have been February, 1951 that
capacity was
financing with New York bankers marketed
by the Bank since last large enough for a weekly proto
the
extent
of approximately
July and a $10,000,000 issue of the duction
of
2,000,000
tons.
The
*|25,000,000. These negotiations are Commonwealth of Puerto
last three weeks have
been the
may be
in anticipation of further develop¬
only ones this year in which out¬
ment and expansion of water and brought
to
market
during
the
put has fallen slightly below the
fpower resources in
Puerto Rico coming year.
it
2,000,000
ton
weekly
mark,

FIRM

failures in¬
of

Company s Ford division accord- all nine regions except the East

until

year.

This

five

was

tons

output

oiS

in

creased

output

which

year

strides made early in
Output started slipping
the first of June, and now it is

at

Geographically,

8%

or

latest and similar slight declines predeclined 14%
from the vailed in, thes South Central and
previous week, due largely to West North Central States^ Morchangeovers at the Ford Motor tality.exceeded theA9o2 level*!

because Of the steel-

1953

cars,

Automobile output for the

declares.

Development the

fiscal agent for Puerto Rico Water

Being Formulated

"

extensions

the present power

57,289
57,

cars,

In Latest Week

workers' strike, this trade weekly

Puerto Rico Bond

of

032,035

22 £rom 12' up to Eastfrom 18,Cen"
the 22 North and
tral States,

U.

than

more

million

1952

record

a

in

100

The

year

of the" reco'rd week

all

one

last

states where the toll mounted to

reached

1951. Production that
105,199,848 tons and

year of
totaled

Bechtel

Charles

in

decrease

tqtaled

this

of

has

tons, which is

made

was

morning

of approximately 107,353,-

total

a

businesses
in all five

spond^g 19510weekW

-

castings

than

held

services

More

i

1953 output of steelvfor

and

20.

at

belT th,e , corresponding, 1952
week, and a decrease of 111,495

ing, the current week

Kerr

last

51

service.

Loadings

0.

from

th^fharpesf rise^n® c°ommerciS

of

Association

To Decline This Week

William

commercial

and

The State of Trade and

MINNESOTA

MICHIGAN

STATES

40

to

week, wholesaling to 17 from 22,

IBA GROUP CHAIRMEN
CENTRAL

declined

ures

4

page

Thursday, December 17, 1953

...

Kirkpatrick, Inc.

ITH
TELETYPE

AVE.,
NV

353

N.
*

★
L.

NASHVILLE

D.

59

*

3,

TENN

TELEPHONE 4-3312

Volume 178

Number 5282

.

.

The Commercial and Financial Chronicle

.

(2431)
better

quality

sufficient

to

oats

hardly

were

the

meet

demand.

Soybean prices moved higher for
the

11th

successive

advances

week

not

were

but

large

as

the

in

as

recent weeks.

wheat

ders

resulted

bakers

whose balances

was

mill protection

as

advances

from

bookings

bakery flours

noted last week

against

and

in

the

prices

buying

pects

and

totalled

compared
with
224,200 the week before, and 272,800 in the corresponding week a
The CCC reported loan

entries of the

700

bales

Nov.

during the week ended
compared with close

27,

as

bales

419,000

two

preceding

tries

for

through
of

staple totalling 357,-

in

Nov.

27

with

much

influenced

by

women's

Despite

Cocoa
sonal

values

touched

new

sea¬

a

Seasonal

Although retail trade continued
gather momentum in many
parts of the ^nation in the period
it

Wednesday of last week,
generally not up to sea¬

on

was

sonal

turned

on

most

e

confident that the

it-taking

downward

and

prompted

hedge-s

b,y the
lag in

.gains and

with

stocks

to

36,629

bags a
fluctuated

Hog prices
lently during the week
xreceipts alternately rose
ago.

the

Chicago

^quotations
were

Retailers

in

divided

on

fects

of

newspaper

some

felt

versely

the

that

affected while

ported

little
stores

Closing

phone

and

the

year

•ago.

volume

relying

mail

were

the

of

re¬

de¬

As

holding in a narrow
flange most of the week, spot cotIon prices displayed a somewhat
•easier

the

undertone

period

slower
•crop

close

of

largely reflecting the

movement,
larger
expectations, and continued

textile

Reports
were

the

loan

slowness
in

at

in

export

business

and

sales

indicated
a

trade

the

in

than

trade.

of

was

re¬

esti¬

of

week

as

their

for

the

past

year, the
of retail food

modestly

higher

ago.

Howard H.

Shoppers' interest in household
goods rose slightly the previous
week but did

high level of

a

popular

the level of

estimates

a

year ago.

a

ago

year

appliances,

varied

from

to

CoSM

+2 to

+6.

and

volume

wholesale

slightly

of

last

week

LOUISIANA MUNICIPALS

buyers

as

last-minute holiday

Dealers in

level, with the
largest rises in durable goods.
According
store

the

Federal

index

in

sales

the

to

Board's

serve

New

Municipal and Corporation Securities

Re¬

department

York

City for

weekly period ended

Dec. 5,
decrease of 3%

a

Barrow, Leary & Co.

the like period of last year.
the preceding week Nov. 28,

week

weeks

ended

crease

of

the

of

SHREVEPORT 80, LOUISIANA

Dec.

2%
of

2%

trade

that

New

from

by

Among them
which

Christmas

to

the

was

affected

coming

E. N.

Anagnosti

Underwriters

of

in

Vincent B. D'Antoni

—

Distributors

6%
We

Louisiana and

newspaper

day

later

Department

store

Federal

sales

Reserve

Board's

dex, for the week ended
decreased

level

of

the

on

a

taken from

as

2%

Mississippi Municipals

Belle

Isle

Dec.

preceding

Canal

New Orleans Bank

Bank

&

Trust

Stocks

5,

Co.

liquidation)

Co.,

New Orleans Public Service Co.
(Preferred and Common)

Southdown Sugars,
Standard Fruit &

the

week.

inquiries in:

Corp.

Mississippi Shipping

in¬

below

especially invite

your

(in

country-wide basis,

Dealers

—

advertising;

one

George J. Bourg

1952.

this year, and the prolonged warm

1953,

83

reduce

than

week

Erwin R. Schweickhardt

spell.

the

&

last

number

a

more

like

the

York

worked

volume

strike

Teletype SH 82

1953,

registered
period.

was

in

suffered

sales

Bell

5, 1953, a de¬
reported. For

was

period Jan. 1 to Dec. 5,
increase

from

Telephone 3-2573

1952, while for the four

factors

ESTABLISHED

Banh

in Dallas

above the year-ago

week

J. J. B. BILLIARD & SON

Gilbert, Jr.

National

expanded

prepared for January
Inventories continued

promotions.

Retail

Investment Service

First

Specialists in

trading in most

markets

from that of the 1952

Eighty One Years of

City,

decorating materials.

The

an

In Louisville Since 1872

Robt. R.

North

Mo.

and

1953, a decrease of 4% was re¬
ported from that of the similar

from the

Kansas

Co.,

Louis

sets; more in demand
radios, phonographs, records

were

the

4-4; South and Southwest -f 1
+5;
Northwest
and
Pacific

Fitch,

were

goods

case

In

cor¬

St.

Fitch

Barret,
&

&

television

Regional

to

Inc.

Steamship Cot
Common}

(Preferred and

In

the previous

1872

Member New York and Midwest Stock
Associate Member American Stock

Exchanges
Exchange

from

that of

1952.

Tax-Exempt Bonds—Investment Grade Common Stocks

Dec.

the

the

For

similar week

four

weeks

SCHWEICKHARDT & COMPANY

of

ended

MEMBERS

5

1953, a decrease of 1%
reported. For the period Jan.

was

ST., LOUISVILLE 2, KY.

week, Nov. 28, 1953,
of 5% was reported

decrease

a

Temple

Glynn,

Heitner

earlier. Less

year

than

1953, registered

propor¬

Masonic

Blewer,

from

farmers

419 W. JEFFERSON

Joseph A. Glynn, Jr.

not quite match the

to

by Dun & Bradstreet, Inc.,
be from 0 to 4% higher than

that

unarket.

year

mated

large

tion of current ginnings

a

many

volume

week

the

remained

and

responding 1952 levels by the fol¬
lowing percentages: New England
and East —3 to +1; Midwest 0

markets.

withholding

tail

dollar

last

volume

orders

by the strike of delivery

total

dollar

placed

service employers in 11 de¬
partment and furniture stores.
The

level

preparation

during

total

and

While

in

on

Retail volume in Pittsburgh was
reduced

for ap¬

the

replenished

(

reported
in

spent

to

slightly

pantries

ad¬

heavily

losses

ef¬

strike;

others

orders

marked

most

new

was

diminution

total

close

Food stores increased their sales

large

equally

about

mand;

a

a

volume.
York

swine

above

Christmas

1953

New

week ago, and

than $7

retail

still

were

would set

season

in

record

However,

merchants

and fell

as

market.

over a

more

vio¬

about $1 per hun-

rose

•dredweight

year

retail

shopping

of

54,546
bags,
week ago and com¬

From 59,656 a

pared

manufacturer

Warehouse

declined

•cocoa

sharp

recent

a

interest.

prof¬
11 i n g,

expectations.

TEXAS

SOUTHWESTERN

VALLEY

of

festive fare of the coming weeks.

to

ended

ties,

accessories.

markdowns

GROUP CHAIRMEN

ago.

volume

Expectations

and

early

The

was

year

total

Short of

IBA
MISSISSIPPI

outerwear, usually held
January, shoppers were rather

parel

a

and

Winter
in

housewives

highs early in the week but

later

blouses

hesitant.

reached

for ap¬
traditional

on

shirts

the

the

4,168,800 bales.

pros¬

continuing strength in
primary markets due to the tight

men's

were

en¬

season

Trade Volume Falls

of

centered

gift items the past week; particu¬
larly popular in most sections

of

current

demand

consumer

was

Loan

each

weeks.

t he

The

parel

of

statistical position, plus the threat
of a dock strike later this month.

in

bales,

week

in active demand at

was

advancing

257,600

to

or¬

jobbers

were

running low.
Buying, however, was mostly for
immediate or nearby shipment.
Coffee

last

year ago.

Some improvement in
of hard

Sales in the 10 spot markets in¬
creased

10?

NEW

809

ORLEANS

STOCK EXCHANGE

HIBERNIA BUILDING

1 to Dec.

5, 1953, department store
registered a decrease of 1%

sales

Owensboro, Ky.

below
of

the

corresponding

period

1952.

NEW ORLEANS
Teletype NO

12, LA.
Tulane 6461

344

&

Tulane 8811

Syndicafs Annual
Xmas
The

Wall

Party Held

Street

IKE D. SCHARFF

Bag

of

BANKERS BOND

m

s*

Party

Dec.

on

about

32

M/$

composed

mm

syndicate

Active

each

meets

for

month

in

ift

lunch.

INCORPORATED

Officers
1st FLOOR KENTUCKY HOME LIFE BLDG.

are

Harriman

Lillian

Neylon,

& Co. Incorpo¬

President and Claire Hap-

rated,

LOUISVILLE 2, KENTUCKY

Ripley

Goldman,

pener,

Sachs

Trading Markets

man¬

of leading Wall Street firms,

agers

and

of

*HD

Club

The

16.

members

Secretaries

JOHN J. ZOLLINGER, JR.

"Syndicats"

held their Annual Christmas Grab

has

JAMES E. RODDY

&

LOUISIANA AND
BANK
LOCAL

MISSISSIPPI

STOCKS

AND

CORPORATE ISSUES

ti

Co.,

Treasurer.
Past

Presidents

Blyth
INVESTMENT

Smithers,

DEPARTMENT

GRAHAM,
W.

H.

Manager

BOHNERT

^MILLARD P. McNAIR
E.
J.

C.
M.

LEWIS
FETTER




WOOD

HANNAH,

CHARLES
P.

M.

C.

Asst.

Mgr.

KING

Dean

Lois

Lynch,

Beane;

and

West,

Virginia

Inc.;

Pierce,

Dorothy

Corp. Ruth Curtayne, White, Weld

CONWAY

ROBERT H. JOHNSTON, JR.

E.

PURYEAR

S charfl* L Jones
INCORPORATED

Boardman, Union Securities
TELETYPE

&
ROBERT

are

Co.,

Merrill

&

Fenner
THOMAS

&

NO

180

&

219

CARONDELET ST.
(Ground

181

L.

D.

Tulane

Floor)

235
0161

Co.; Marguerite Aimone, W. C.

Langley

Cronin,
served

&

Co.,

Lehman
as

and

Margaret

Brothers,

Treasurer.

have

NEW

SHREVEPORT, LA.

ORLEANS

12, LA.
JACKSON, MISS

102

The Commercial and Financial Chronicle

(2462)

Continued jrom page

variably, the direction of

«

sidiaries

in

to

itself

market

British

im¬

an

was

en

mirror and

a

what

see

do

we

in

Dayton. We try to make sure that

portant one for us. So, likewise,
were the Commonwealth nations.

our

people will have no

oversea^

Shipment could also be made from reason to think of themselves as
Britain to many other countries. stepchildren.
Some people have said that the
A close study of the areas avail¬
able took us to Scotland and then cash registers turned out at Dun¬
into Dundee.
We were given a dee ring with a Scottish burr, and

ministry of

perhaps

they

labor, the board of trade, local
government officials and all others

hearty welcome. The

Dundee

plant

with whom
the

us

staffed by Scots,

had contact showed

we

consideration

utmost

cooperated with

in

us

lishmen

and

who

London

sent

every way.

ed, the factory was erected, and it
was in production early in 1947.

programs,

project has been
for

one

a

work

icans

profit¬

and—for the British economy.

the

The

future.

has taken

a

more

British

so

in

ease

from

our

have

We

technicians

time

to

to

time

to

specific aspects of our
but there are no Amer¬

on

permanently located

there.

on

remit¬

It is part of our policy
our
foreign trade
operations dominated by Ameri¬

emphasize.

with

us.

to

cans.

We have formed the highest re¬

gard for Scottish labor.

not

have

It may be that we lean over

backwards

The Scots

on

that score,

inclines

perience

us

but

to

ex¬

believe

honest, hardworking, in¬ that it pays. Our overseas busi¬
people. They are will¬ ness is spread through 92 foreign
ing to work overtime, and they countries and supports an organi¬
cooperate with management. They zation
of
approximately
15,000
are appreciative of good working
employees
outside
the
United
conditions, not only so far as the
physical plant is concerned, but States and Canada, only four of
they also appreciate measures tak¬ whom are Americans. Almost inare

an

dustrious

Open the door
to

had

their

tions

didn't

them,

now

are

our com¬

but
the

much

so

dinner

to

was

eign soil.

to

inclined

were

of their

menu

a

But

meanN

they

son

in

own.

emphatically—we put the ac¬ quaintly enough it was held in
on people wherever we
a
dining room in an amusement
There's an old proverb that park called "Happy World." We

say

go.

that

says

he will

if

do

respect

more.

a

We

you

to live

try

man

to that principle.

up

show

We try
for people

respect

our

other countries who
with

for

work

medan

food

to
in

service

prevailed

at

Chinese

food

served

us

second

by giving them every
chance to feel that they are not
or

us

in the employ of an
company—but—on the
contrary—that the National Cash
Register Co. is their company.

foreigners

American

It is also

working for

in the

us

had three separate tables. Moham¬
and

Mohammedan

was

table,

table.

one

there

and

the

at

was

a

separate menu for the Europeans
at

table.

third

a

The

Americans

We
we

I like to think back to that

ricanes

social

of

destruction.
bitterest

I

and

economic

It is the land

famine

and

the

of

the

misery that the mind of

worst

sent

out

suit to be

a

There
which

is

no

scribe

American make.

can

for

battle

a

one

Survival
for

survival

adequately de¬

can

which

and

underlies

all

phases of life in that segment of
the global map. The pattern may
vary somewhat from one country
to another,
but the variation is
one of degree—not of principle.
meet

totally

a

machine.

the

separates

factor.

A

yast

thinking
Orient.

and

This

by

any

no

MAIN

OFFICE

OFFICE

the

in

pros¬

government

CORPUS

Building

CHRISTI

Jones

8-2509

OFFICE

SAN

Building

I

ANGELO OFFICE

McBurnett Building
Phone 6032

Phone 2-1652

una

UNDERWRITERS

beliefs

another

DEALERS

in

was

and

their

and

to

one

blame

in

We
our

therefore

dozen

still didn't
staff

have the buttons.

nevertheless

—

<—

point

are

by

that

year,

convention

a

for

organization

area.

of

the

shocked.

world.

The.y

They

told

session

out of the

used the

know

it

better

To

said

going

of

the methods

was

question.

have

we

The

making

had saved

The

outset.

up

to

what

buying

and

go

fair

weather.

head¬

into foreign trade
go in to stay—

weather

as

well

Depressions,

fragment/ of

survives.
lasts

We

the

believe the

seem

ing

among

among

as

motto

years

have

that

the

that

nations

opinion, the basic
business

is

answer

forced

to

understanding

an

was

the country—the

ple—and

then

cordingly.
common

conduct

itself

meeting ground—or

do not do business.

In

the

idea

time

bombard

to

with

racy

It is

the

oratory

us

we
a

their

can

people

about

pared
other
b y

and free enterprise. To sim¬

market

or

printed

carries

in

at all.

words

little

or

in

pictures \

conviction—or

It is far beyond the

standing

of

the

common




HOUSTON 2, TEXAS

HESS
Tel. ATwood 8221

Bell

Teletype HO 42

It

be

eat¬
pre¬

custom
and

by

served

Oil.

Moreover,

—

or

the

heathen

It appeared that I

Euro¬

was

★

idea of

★

UNDERWRITING

M

K

E

★

RETAIL

S

organization dinner.

an

was

TRADING

just

asking for trouble if I pressed the
I

GAS

and

table

peans.

BUILDINa

to

told

that

would be equally

suggestion of

a

the

Chinese

outraged by the

combination din¬

ner.

They

were

lous

about

seating arrangements,

not

so

ioutciwettern

scrupu¬

Securities

MERCANTILE, COMMERCE
a:

■>.

none

under¬

a

not going ,to sit at the
with
the
heathen

were

Chinese

536 FIRST NATIONAL BANK

had

according to
Mohammedans

same

&

food

Mohammedans.

they

FRIDLEY

special rules about

Their

of

shingle ply advertise democracy by spoken j

some¬

socially.

at

democ¬

that the Mohammedans had

own

ing.

mix

-

waste of

dans, Chinese and Europeans who
worked
together very well but
exactly

a

you
:

market,

least be realistic.

Asia

ac¬

You either establish

why not,
so
they explained that our
employees
included
Mohamme¬

not

tra¬

ditions and preferences of its peo¬

I couldn't understand

did

ac¬

of t the

thing that just couldn't be done.

seems

]

and

—

absolutely

It

on

asked

business;

peoples of the world.

customs of

wars,

if

I

is

it

to smother understand-

the

In my

is

longer than the upheavals.

Our

free-

of

a way to survive and
grow*
the face of the same obstacles

quire

we

abroad

why

that

might

and

varieties aren't going to make
take that shingle down—even
a

ideas

our

finds
in

doesn't

others

time

trips

myself

I

serious business. We expect to live

through foul

aren't

we

Other peoples

.

many

National

Cqmpany

themselves

we

make—but

quota.

our

Many times in recent

my

aches by reading our records.

country

using to sell

are

Understanding: of Native Customs

-wind'

re-emphasizing

Register

When

we

were

that

me

paradox here. Our products
popular, but our ideas are not.
might behoove us to re-examine
a

freedom to the rest of the world.
That is the most
important sale

Stay

to

complexities,
save

any*

seen Ameri¬
motion pictures and American
office equipment.

foreign trade at this

the

at

and
cos¬

Foreign Country

a

on

lan¬

every

stores

can

dom.

I'm

in

place where I haven't

aren't

Going Into

word

a

Department

and

Securities

no

approach- to

smaller shops carry American
metics. And I can't think of

face.

only

last

be

guage.

the

foreign trade is
During the conven¬
tion, I suggested to our native self-help and self-support. In this
executives that we ought to have country, we have always plowed
them all together for a
dinner,
just as we always do in other
in

dinner

Corporate and Municipal

and

must

There

except

revolutions and holocausts of other
that

Singapore

held

we

indi¬

anecdote:

all the people in our

parts

DISTRIBUTORS

abroad.
alone

foreign trade, and I have

It

Finally, they sent me a
roses in compensation, but I

in any

attitude of respect for their

an

with

,

Phone

including

be

cannot

concerned

vidual dignity.
Let
me
illustrate

-National Bank of Commerce Building
San Antonio, Texas
•
FAnnin 7141
Brown

factor

anyone

with foreign trade

religious

Exchange
(Assoc.)

policies

are

sorry,

machine.

of Cash

squareness—and—above all else—
to
York Stock

well

means

who operated the

man

But the Asiatic people are still regardless of politics, political up¬
people, and they react as all peo¬ heavals—cigarette economies—or
ple react to decent treatment, to dollar shortages.
When we hang
consideration, to fairness and up our shingle overseas, we mean

New

important

as

same

equal¬

ly

The

of the United States.

American Stock Exchange

AUSTIN

way

pects,

Members

The

we

human

which produce good
employee re¬
lations in this country work

pretend to know all the answers
multiplicity of religious creeds in about foreign trade, but we have
is a fundamental economic had experience with its infinite

XSerml,

is

overseas

home.

asset

The

American products are univer¬
sally popular. There is something

possibly be the

Everybody was
could they do?

what

different thoughts
East than point by

in the Far
meet in the west.

Occident

It could not

tons.

was

\

The machine had

most unkindly smashed those but¬

but

A Battle

you

Retailers

at

as

valuable

than

fault of the
man

imagine.

the

Texas

most

accumulate.

equation

it

oc¬

casion,

pressed. It
and over¬
came back with most of the but¬
They
are
further
tons smashed. The hotel valet, the
complicated by poverty, illiteracy
and eventually the
and the continuing—and appalling housekeeper
It
—lack of basic foods.
Asia has manager blamed the machine.
was a new one, it seemed, and of
been visited and revisited by hur¬

traditions

of

ignored
are

the

as

could

Asia

We

no
special favors, but
inclined to favor people

in presence sort of table-hopped. National Cash
Register Company's
They mixed with everybody. The diary on foreign commerce mere¬
ly because I happen to work for
meeting was a great success.

population.

gulf

market

ask

are

any other.
because everybody's face
Far East
where National
Cash
Wherever I have traveled in re¬
was saved,
and that is most im¬
Register Co. products have been portant in the Orient where face cent years, and that has
been
sold and serviced for 55 years.
saving is all important. The world through many countries, I have
I hardly need to mention here
trader who doesn't demonstrate a seen American products in use; A
that the economic, social and po¬
proper
respect
for
face-saving Singer sewing machine in a ram¬
litical problems of Asia are more
will not be a world trader in the shackle hut along the Menam Riv¬
complex than in any other quar¬ Orient
er in Bangkok.
Coca-Cola almost
very long.
ter of the globe.
They are com¬
every place. Kodak is a name that
One day in Tokyo not long ago,
plicated by different religions, the

mentality

expanding

That might be one rea¬
welcomed so heartily

we were

Dundee.

held—and

cent mark

You

an

own

about food—and

ences

faVor

worship

by Americans

That is another point I want to

government

broad view

at

from

Dominated

ting royalties and dividends. We
feel at home in Scotland, and the
Scots feel

in

Danger of Our Foreign Trade if

We

believe it

be

a

our

and
few Eng¬

stockholders—

our

will

came

American

Dundee

The

with

organization.

A site for the factory was select¬

able

do
because
is managed

who

sons

training for jobs with

in

Frankly-?—and I think I should

their

guard

our

is

pany.

health and
no
longer be able to purchase everything we have done to pro¬
vide plant-wide recreational facil¬
freely from the United States.
Great Britain seemed a natural ities.
My point here is that you
location for such facilities. -The could hold up the Dundee plant as
would

which

agencies

or

firm and have

i

countries

they

prefer¬ back a substantial portion of our
they were earnings to make the
company
hands of native managers, several very positive preferences.
And bigger and better. We do the same
of whom are in the second gen¬ then there were the
Europeans. thing abroad.
We plow a large
eration of family service with the The seating and service
proposi¬ portion of our earnings into for¬

11

Foreign Trade—Key fo
World Peace and Prosperity
overseas

but

sub¬
the

Thursday, December 17, 1953

...

BLOG,

J. * TELETYPE DL-334

man.

Volume 178

Number 5282

.

The Commercial and Financial Chronicle

..

(2463)
Slogans

chatter"to

empty

are

with

man

an

a"

empty stomach.

The great pride of other peoples

;

rejects

—

and resents

manship
ideas.

to

want

rather

social

on

One

make

our

have

our

—

and

said

man

than

'■

"*1-

"

•

the

use

YORK

IBA

NEW

ENGLAND

CANADA

GROUP

EASTERN

mistakes

CHAIRMEN

'f

'•

SOUTHEASTERN

SOUTHERN

PENNSYLVANIA

foreigner
^
' ' V:

"

<

people

NEW

"We

me,

own

some

Our National Cash

IBA GROUP CHAIRMEN

sales¬

political

to

make them for us."
1

103

-

Register Co.

same

salesmanship

methods
that
we
developed in
Dayton, and, goodness knows, they
are just as American as a
piece of
apple-pie. They work, but. up to

ideological salesmanship

now; our

has not worked.

It is not for

me

to

suggest ways to make it work,
but I think we can all
agree that
even

of

a

partial bridging of the gulf

misunderstanding

b e tw een
America and various other coun¬
tries
of

would

human

represent

a

Robert

triumph

relations—and

Blyth

ad¬

an

New

Fisher

W.
&

William

Co.,

York

Inc.,
City

T.

W.

Kemble

Estabrook

&

Pearson

Wood,

Co.,
1
1

Boston

Company,

vancement of human understand¬

Scott

Gundy

&
Limited,

Wm. K.
Stein

Toronto

Barclay, Jr.

Bros.

<&

LeRoy A. Wilbur

Boyce,

Stein

Philadelphia

ing.'

Bros.

&

John

Boyce,

I do not know to what extent
that bridge will ever be built. But
I do know that whatever is ac¬

complished
example

will

through

come

deed

and

rather

New Orleans

Golf and Tennis Tournament Winners at

To Be Formed Jan. I

Principals

A

18

.

Smither.
Others
a

t

e

with

d

Canada

Los

fcerman, Rich¬
ard
Langton,
F. A. Lothrop,

1st—Jack R.

Boyce, Stein Bros. & Boyce, Baltimore.

Ewing, A. E. Masten & Company, Wheel¬

ing, W. Va.
2nd—Mr. G. H. Walker, Jr., G. H. Walker &
Co., New York
Mrs. G. H.

Walker, Jr., G. H. Walker & Co., New York.

Lynch, Jr., Moore, Leonard & Lynch,

Pittsburgh.
F.

Walter

Cozad,

Jack

Danby, Merton R. de Long, Frank
Johnson, John F. Moffett, Ar¬

R.

thur S. Olsen, Richard E. Watson,

Willecke, and David Zilka.
have been associated with J.

A.

All

Staples, Fulton, Reid & Co., Cleveland.

Mrs. Robert W.

2nd—(Low Net):
J Mrs. Charles McK.

Schreder, Distributors Group, Incorporated,
^

Dooiittle, Doolittle & Co., Buffalo,
1st—(Low Net):v;■ ■
r'." ' """,
•::
Mrs. Dana F. Baxter,
Hayden, Miller & Co., Cleveland.

G.Gordon

R.

Staples, Fulton, Reid & Co., Cleveland.
X.

Mixed Doubles:

(Tuesday, Dec. 1):

Mrs. Roy W.

v'

R.

New York.

1st—(Low Gross):
Mrs. C. Prevost

Fridley & Hess, Houston.

New York.

Harold

2nd—(Low Gross)

H.

Tournament Held.

Henry W. Putnam, Association of Stock Exchange Firms,

New York.
Corporation,

Handicap Tournament—Men (Tuesday, Dec. 1):
1st—Mead A. Lewis, Dick & Merle-Smith, New York.
2nd—Albert R. Hughes, Lord, Abbett & Co., New York./

Pierre A. Kos-

Childs,

Power Trophy—No

1st—Wilbur E. Hess,

Trophy—Men:

Hole

are

Joseph
F.
Barbagelata,

Light &

2nd—Jack

18 Hole Tournament—Ladies

associ-

them

Association of

Angeles.

and

Ralph'

Cup—No Tournament Held.

Men's Doubles:

1st—V. Theodore Low, Bear, Stearns & Co.,
2nd—Robert
H.
McCrary, The Parker

of

Zilka

Orleans

San Joaquin

Virgil Sherrill, Shields & Company, New York.

Investment Bankers

will be Henry
J.

Robert

E.

Christie, Jr. Memorial—Men:

1st—Joseph A. W. Iglehart, W. E. Hutton & Co., New

York.'*"

2nd—Edward H. Hills, Eldredge & Co., Inc., New York.
18 Hole Handicap Tournament—Men

1st—Charles V.

Williston, Bruce & Co.

(Wednesday, Dec. 2):

Thackara, Jr., Thackara, Grant & Company.

New York.

2nd—William M. Rex,

Arthur Marx Joining
Arthur Marx

ciated

with

becoming

is

asso¬

Posner

Andrews,

&

Street, New
York City, members of the New
York Stock Exchange. Mr. Marx
Rothschild,

60

Wall

President of Wilson & Marx,

was

Clark, Dodge & Co., New York.

18 Hole Tournament—Ladies

Andrews, Posner Firm

Inc., which has been dissolved.

(Wednesday, Dec. 2):

1st—(Low Gross):
Mrs.

David

B.

McElroy, J. P. Morgan & Co., Inc., New

York.

2nd—(Low Gross):
Mrs.

Carlton

P.

Wilson, Robert W. Baird & Co., Inc.,

Milwaukee.

1st—(Low Net):
Mrs. Robert W.
pany,

Thornburgh, The W. C. Thornburgh Com¬

Cincinnati.

2nd—(Low Net):

*4.

Transwestern In v.

Co.

DALLAS, Texas—Transwestern
Investment
Company,
Incorpo¬

rated, is engaging in a securities
business from offices in the Em¬

pire State Bank Building.
Rob¬
ert R. Foley is a principal of the

Mrs.

F.

Brian

Reuter,

Mellon National Bank

&

Trust

Company, Pittsburgh.
Mixed Foursomes Tournament:
1st—Mrs. James J.

Lee, W. E. Hutton & Co., New York.
Joseph A. W. Iglehart. W. E. Hutton & Co., New York.

2nd—Mr.

and

Mrs.

Dana

F.

Baxter, Hayden, Miller

&

Co.,

Rauscher, Pierce & Co.

Cleveland.

firm.

Underwriters

and

Distributors

l

.

Westheimer Adds to Staff
Chronicle)

(Special to The Financial

Ohio — Fred J.
Moser has become affiliated with
Westheimer
and
Company,
326

RAILROAD,

CINCINNATI,

Walnut

New

Street,
and

York

Exchanges.
with

H.

B.

members of the
Cincinnati Stock

He

&

Waller, -yJuJin

fPaaqener-

jfin veS /m

Co.

INDUSTRIAL,

PUBLIC UTILITY,

BANK, INSURANCE, and TEXAS MUNICIPAL

previously

was

Cohle

SECURITIES
i

ent

Montgomery, Scott Admits
PHILADELPHIA, Pa.

—

George

admitted to
partnership in Montgomery, Scott
& Co., 123 South Broad Street,
E.

Eddins

members

of

will

the

be

New

York




Qficdlak 2, ^1/exaA

HOME OFFICE:

Mercantile Bank

Bldg.

DALLAS 1, TEXAS

and

Phidadelphia-Baltimore Stock Ex¬
changes, on Jan. 1.

of

TENNIS

firm

new

Bank

Winner—Mrs. Denton D. Hall, R. L. Day & Co., New York.

business.

the

Kicker's Handicap—Men:

Winner—John W. Ahearn, Rockland-Atlas National

New

Alden, Jr., O'Neal, Alden & Company, Inc.,

Kicker's Handicap—Ladies:

813

at

O.

Louisville.
2nd—H.

Southwest Alder Street, to engage
in the securi¬
ties

Hole

Boston, Boston.

Alden H. Little Trophy—Men:

PORTLAND, Oreg. — Zilka,
Smither & Company, Inc. will be
with offices

18

GOLF

1st—William

f

•

1953 Investment Bankers Assn. Convention

Zilka, Smither Go.

1

"

than

through words.

formed Jan.

P. Labouisse

Howard, Weil,'"
Labouisse, Friedrichs
&
Company,

Baltimore

Branches:

Austin, Harlingen, Houston, Lubbock, San Antonio, Waco

104

The Commercial and Financial Chronicle..

(2464)

The following statistical

Indications of Current

latest week
week

Business Activity
Latest

Indicated

steel

Equivalent

to—

fiteel ingots and

capacity)

(percent of

operations

Month

Ago

on

107.7

*1,955,000

2,044,000

2,236,000

BUILDING

and

Dec. 20

(net tons)

Total

Kerosene

at

Revenue

5

2,894.000

9,664,000

*10,587,000

10,071,000

5

8,628,000

8,171,000

8,252,000

37,578,000

130,053,000

*133,222,000

135,873,000

Dec.

5

51,073,000

50,908,000

51,336,000

50,658,000'

CONSTRUCTION

662,035

(no. of cars)—Dec.

596,230

747,868

595,280

638,016

and

COAL OUTPUT

$294,411,000

$251,725,000

$240,997,000

528,209,000

176,848,000

121,145.000

127,421,000

126,929,000

117,563,000

130,580,000

113,576,000

Dec-10

118,072,000

105,655,000

107,001,000

70,563,000

8,857,000

11,908,000

23,579,000

43,013,000

5
5
5

8,200,000

*7,420,000

8,820,000

10,150,000

557,000

475,000

coke

70,200

8Y8TEM—1047-49

■

536,000

63,800

80,100

FAILURES

=

BRAD STREET,

«ON AGE

5

190

133

121

8,661,131

8,582,459

8,457,342

Dec.

100

INDUSTRIAL)

DUN

—

25

18

522

511

443

178

194

178

113

(nonfarm)

;

.

195

8,140,257

&

136

46

38

41

33

16
26
26

49

12
30

23

.

100

—

and

telegraph.

119

112

396

423

347

45

49

33

50

55

48

301

.....

utilities

319

261

private

9

10

construction

951

1,096

41

45

362

374

140

145

153

160

22

23

Residential

building

building

Industrial

Educational

....

Hospital and institutional
Military

and

naval

42

49

361

154
•-

"
-

136
38

46

105

facilities

8

924
•'

'

112

33

121
'

!

and

390

280

water

:

67

240

.

69

58

Miscellaneous public service enterprises
Conservation and development

68

74

All

10

11

&

$785,682

*$802,374

$797,697

Dec. 10

INC.—

64

155

26

institutional

75

103

24

and

79

111

17

recreational

public

other

91

154

building

Highways

AND

25

utilities

Sewer

216

202

155

157

8

4.632c

4.632c

4.634c

4.376c

8
8

$56.59

$56.59

$56.59

$55.26

TION

$32.00

$33.83

$35.33

$42.00

U.

other

18

16

21
'

public

■

74

COMPOSITE PRICES:

finished

steel

Pig iron

(per

Dec.
Dec.
Dec.

(per lb.)_
gross

ton)

Scrap steel (per gross ton)
METAL PRICES

(E. A

M. J.

BUILDING

QUOTATIONS):

All

PERMIT

AREAS

OF

VALUA¬

THE

OF

LABOR—Month

U.

of

S.—

Sept.:

omitted):

construction

29.700c

29.700c

29.700c

24.200c

New

residential

415,055

*415,380

461,812

28.400c

28.650c

28.875c

35.400c

New

nonresidential

254,387

*278,386

231,140

86.250c

81.750c

82.000c

121.500c

116.240

♦103,609

104,746

13.500c

Dec.
Dec.
Dec.
-Dec.

at

URBAN

DEPT.

building

0

Domestic refinery at

Export refinery at
■traits tin (New York)
Dead (New York) at
Dead (St. Louis) at

CONSTRUCTION
IN

S,

(000's

Electrolytic copper—

.

_

Other nonresidential building

(in 000 kwh.)

(COMMERCIAL

All

Public

92,400

Dec. 12

AVERAGE

100

41

and

construction

Other

757,000

■BISON ELECTRIC INSTITUTE:
Electric output

95

46

Telephone

INDEX—FEDERAL RESERVE

STORE SALES

915

—_

190

Nonresidential

Dec.
—Dec.
Dec.

(tons)

DEPARTMENT

Tn

OF MINES):

(U. S. BUREAU

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)

930

Miscellaneous
Farm

$655,138,000

municipal

1,024

900

Railroad

—£eC'

construction

1,934

1,055

__

Hospital

Public

'

—Dec. 10
Dec. 10

•

—

—.

$2,853

2,118

Educational

641,662

ENGINEERING

—

$3,214

1.020

alterations

nonresidential

Social

Ago

2.047

Religious

719,324

573,538

Dec. 10

construction

Other

Year

Month

$2,998

.

Warehouses, office and loft buildings.
Stores, restaurants, and garages

114,362,000

5
5

of that date:;

Previous

(in millions):

Commercial

31,142,000

5

and

Industrial

8,785,000

143,732,000

Dec«

are as

OF

building (nonfarm)
dwelling units

Nonhousekeeping
Nonresidential building

10,216,000

5

*35,901,000

Federal

Beehive

2,314,000

149,842,000

construction—

8.

State

*2,543,000

34,775,000

„

Public

2,667,000

Dec.

freight received from connections

Private

23,552,000

150,098,000

NEWS-RECORD:

Total U.

24.788,000

5

(number of cars)—

either for the

are

178

construction

Additions

RAILROADS:

OF AMERICAN

ENGINEERING

CIVIL

24.876,000

6,809,000
23,518,000

—Dec.

—

freight loaded

Revenue

6,962.000

129,470,000

(bbls.) at
Residual fuel oil (bbls.) at—
ASSOCIATION

7.083.000

5

oil

fuel

6,476,550

Dec.

(bbls.) at

Distillate

6,130.000

5

gallons each)
—Dec.
runs to stills—daily average (bbls.)-—-——
—Dec.
Oasoline output (bbls.)
Dec.
Kerosene output (bbls.)——.
———————————Dec.
Distillate fuel oil output (bbls.)
Dec.
Residual fuel oil output (bbls.)
—Dec.
Stocks at refineries, bulk terminals, in transit, In pipe lines—

(bbls.)

6,227,300

5

6,179,400
ti 6,964.000

5

Crude

unfinished gasoline

DEPT.

construction——.

new

New

42

finished and

S.

Residential

(bbls. ox

output—dally average

condensate

CONSTRUCTION—U.

LABOR—Month of November
^

§1,917,000

of quotations,

cases

Month

90.7

Private

oil

in

or,

Ago

*86.7

V

<

castings

that date,

Latest

AMERICAN PETROLEUM INSTITUTE:
Crude

production and other figures for the

cover

Dates shown in first column

Year

Week

§85.0

--Dec. 20

month ended

or

tabulations

month available.

Previous

Week

INSTITUTE:

AMERICAN IRON AND STEEL

or

.Thursday, December 17, 1953

13.500c

13.500c

14.000c

13.300c

13.300c

13.800c

$27,020,458

13.300c

Dec.

Additions,

alteration/s,

BUILDING

VALUATION

PERMIT

10.000c

10.000c

10.000c

12.500c

Dec. 15

96.04

95.56

94.78

96.82

Average corporate

Dec. 15

106.21

106.04

106.21

109.60

Middle Atlantic

Aaa

Dec. 15

110.88

110.52

110.88

113.70

South

Aa

Dec. 15

108.16

107.98

108.34

112.19

East

_Dec. 15

106.04

105.86

106.04

109.06

South

Dec. 15

100.32

100.32

100.00

104.14

West Central

Dec. 15
Dec. 15
Dec. 15

103.80

103.80

104.14

107.09

106.74

106.39

'106.39

109.60

103.16

108.16

107.98

etc

DUN

—

&

112.56

Zinc

(East St.

Louis)

—Dec.

at

U. 8. Government Bonds

A

-

—

-

Baa

Railroad

Group

Public

Utilities Group
Industrials Group

MOODY'S

BOND

-

YIELD

DAILY

AVERAGES:

75,398,061

66,337,155

89,868,568;

$424,708,960

$409,560,226

$417,234,402

3.26

3.05

3.40

3.39

3.22

3.73

3.73

3.75

3.50

___

BUSINESS

3.52

3.50

3.33

Wholesale

3.37

3.19

Retail

15

3.27

3.27

3.28

3.03

Construction

Dec. 15

403.9

i

408.3

411.0

395.6

5

Dec.

355.840

339,672

307,305

Dec.

5

239,567

235,824

266,329

243,936

Dec.

5

88

86

97

Qn

AND

DRUG

period

REPORTER

-Dec.

PRICE

DEALERS

5

374,435

107.45

106.83

549,762

106.07

SPECIALISTS

(customers'

N.

ON

Y.

purchases)

Total

service

200

shares

18,876

22,229

24.150

26,108

Nov. 28

559,576

656,509

699,998

782,105

Nov. 28

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

5*
291.

89

88.

31

52:

686

631

$13,676,000

$13,079,000-

75

number

840

liabilities

$14,956,000

1

4,235,000

8,550,000-

9,790.000

6,078,000-

4,366,000

liabilites

4,614.000

9,671,000

liabilities

Construction

85

336

89

number

liabilities

4,451,000

5,167,000-

liabilities

-

3,848,000

1,286,000

2,175,000-

$37,076,000

service

liabilities

MOODY'S
Nov. 28

value

84

number

Wholesale

146-

145

188

404

$33,817,000

$35,049,000

JBBk&SSSL

—

orders

BRADSTREET,

—

Manufacturing
Retail

38,559,731

378,674,671

October:

number

Commercial

Total

STOCK

&

42,701,615

366,858,611

109.05

ODD-LOT ACCOUNT OF ODD-

SECURITIES EXCHANGE COMMISSION:

Odd-lot sales by dealers

510,994

of

number

Commercial
Dec. 11

AND

438,182

INDEX—

100

=

TRANSACTIONS1 FOR
—

of

City

FAILURES—DUN

INC.—Month

3.37

—

56,692,401

,

York

Manufacturing number

3.52

activity
at end

83,039,368

368,016.559

City

New

3.35

of

(tons)

—

United States

York

-Dec. 15

Dec!
INDEX

.___•

2.97

3.28

3.39

(tons)

orders

of

15,836,649-

Pacific

3.12

3.14

3.27

Percentage

Dollar

19,299,810

Outside

Production

Number

10,433,981

New

192.667

of

Mountain

Dec. 15

COMMODITY

Number

31,029,797

3.19

3.12

t

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)

EXCHANGE

31,000,477

2.72

Dec. 15

LOT

62,736,028

29,289,713

3.38

Baa

PAINT

67,283,622

2.87

Dec. 15

1»49 AVERAGE

55,122,379

Central

3.39

Dec. 15

■TOCK

33,814,92?

76,911,547

2.81

—Dec. 15

•R,

72,626,574

94,164,738

...

Central

3.38

Aa
A

Unfilled

$28,272,491

83,880,794

43,973,129

2.73

Aaa

MOODY'S

$20,873,692

99,264,320

—

Atlantic

Dec. 15

Group
Industrials Group

CITIES—Month

England

-Dec. 15

corporate

Railroad Group
Public Utilities

INC.—215

34,015,310

New

Total

U. S. Government Bonds

Average

BRADSTREET,
of October:

MOODY'S BOND PRICES DAILY AVERAGES:

$24,192,630

$28,402,039

$33,439,247

$34,832,510

Utilities

Nov. 28

20,306

22,750

22,520

25,645

Customers'

short

sales

Nov. 28

187

200

257

110

other

sales

Nov. 28

20.119

22,550

22,267

589,933

658,403

654.992

740,926

OF

YIELD
of

Nov.:
__

______—_________

5.53

5.33v

5.60

5.77

7.05

includ.

Amer. Tel.

& Tel.)

(24»

(15)

6.93

5.26

5.36

5.14:

4.28

(25)
(not

*4.45

4.19-

3.32

3.35

3.10-

5.53

5.59

5.28-

£10,322,000

£16,795,000

£66,556,000-

$285.8

$237.0

$276.*

25,535

Nov. 28

AVERAGE

STOCKS—Month

(125)

Railroad

Banks

Customers'

WEIGHTED

COMMON

Industrial

Number

of

shares—Total

sales

Customers'

short

sales

Nov. 28

7,002

7,388

9,146

Customers'

3,573

other

sales

-Nov. 28

582,931

651,015

645.846

$22,176,603

$24,528,354

$24,908,106

$29,777,003

Nov. 28

200,590

234,700

226.680

234,150

(10)

———

—_____

NEW CAPITAL ISSUES IN GREAT

BRITAIN-

737.353

Nov. 28

Insurance

Average (200)

Dollar

value

Round-lot
Number

sales
of

Short

by dealers—

shares—Total

Other

Nov. 28

sales

.Nov. 28

234" 700

200!590

226,680

234" 150

of

Nov. 28

186,440

226,710

264.050

283,080

fTBTAL

ROUND-LOT STOCK SALES ON THE NEW YORK
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF MEMBERS

sales

Nov. 21

,1——Nov!
Z_ZZnov!

.

TRANSACTIONS

FOR

ACCOUNT

OF

21

21

sales

sales

Total sales

Other

transactions initiated
Total purchases
Short

Other

on

the

sales

sales

Short

550.940

123,930

148.510

553,720

450.660

567,910*.

692,070

574,590

716,420

1,085,200

203,580

163.410

258,780

279.430

19,400

11,000

off

1,091,290
185,460
899,740

^ov!

21

31,600

15,400

21

177.930

117,840

251,550

268,670

21

197,330

128,840

283,150

284,070

the floorNov. 21

sales

Nov. 21

222,860

272,065

263,105

20,300

43,900

44.740

191,970

276.157

ZZ_ZZZZZZZZZZNov!

21

276,040

212,270

320,057

465,777

Nov

21

1,123,390

986,415

1,226,805

1,752,710

Nov

21

186,400

155,230

224.010

245,600

purchases

ZZZZZZZZZ

sales

Nov'

Total sales

PRICES,
(1947-49

NEW
=

SERIES
100):

—

91

979,040

760.470

ZZZZZZZZZZZZZZZnov!

___

1.095,617

1,589.447

21

1,165,440

915,700

1.319.627

1.835,047

U.

S.

DEPT

*33.8

32.9»

*4.1

3.9

5.1

transfer

income

REAL

OF

U.

S.

BOARD—Month

Savings

and

22.7

21.2

22.5

13.6

13.3

*270.3

255.7

$654,132

$670,983

NONFARM

IN

BANK

LOAN

(000's omitted):

$592,89?

!

124,654

122,483

118,218

companies

314,863

310.061

316,181

123.244

110.709

103,284-

241,897

238.420

227,97^

269,718

256,736

228,96*

$1,728,508

and

Mutual

Sept.

loan associations

$1,709,392

$1,587,528

$275,000, OOP

$275,000,000

273,386,221

272,936,996

264,919,493.

65,938

63.651

44,803;

$273,452,160

$273,000,647

$264,964,296

577,148

578,974

$272,875,011

$272,421,672

$264,336,29*.

2,124,988 vv:-2,578,327

10,663,705-

Insurance companies
Bank

:_

HOME

—

52.5

13.6

income

of

4.9.

-*48.9

269.6

payments—,

FINANCING

ESTATE

AREAS

dividends—.

and

5.1

48.9

Proprietors and rental income.—

trust

banks—:

savings

—

Individuals

——

Miscellaneous

lending

institutions—

-

Total

U. S. GOVT. STATUTORY

—As

_

sales

22.3:

33.7

421,037

21

Total round-lot transactions for account of
members—

49*

*24.1

381.990

28,650

247,390

ZZZZZnov!

Total sales

—

704.920

*52.9

in¬

income

Total nonagricultural

138^350

83.8

52.9

'

Other labor

Total

696.950

sales

Other

LABOR

10,091,110

21

ZZZZ~Z~Nov

transactions initiated
Total purchases

WHOLESALE

6,751,250

21

ZZZZZZZZInov!

•

_

Other

Other

6,124,060

7,087,020

social

contributions for
!—

surance

323,800

9,767,310

employee

184.8

*90.2

4.0

——-__-2—

—

188.4-

*197.1

24.2

—

*201.0

195.7
88.7

industries

Personal interest

Nov. 21

"

"

Short

343.740
6.407.510

floor—

sales

Total

249,620
5.874.440

MEM¬

ZZZZZZZnov!
————Nov!

,

Total

298,280

6,788.740

Nov. 21

Short

199.5
—

industries—

producing

Government

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registered—
Total purchases
Nov. 21
Other

Commodity

Less

Total sales

MWUND-LOT

—

Wage and salary receipts, total
employer disbursement
Distributing industries

sales—

sales

Other

COMMERCE)—Month

OF

(in billions):
income

personal

Service

(SHARES):

Short

of September

Total

shares

Votoi Round-lot

Nov.—

PERSONAL INCOME IN THE UNITED STATES

Total

purchases by dealers—

Number

BANK, LTD.—Month of

(DEPARTMENT

sales

sales

Round-lot

MIDLAND

OF

Total
at

of

Oct.

face

31

amount

DEBT

1000's
that

LIMITATION

omitted

may

be

1:

outstanding

time

any

$275,000,000

Outstanding—
Total

public debt
Guaranteed obligations not
Treasury
gross

owned

the

by

Commodity Group—
All

commodities

Farm

Dec

IZ_Z_ ~~

products

Processed

Jan.
C,

1,

figure.
1953

ZZZZZZZZZZ
than farm and foods

((Includes
as

Dec

against




654.000

the

barrels

Jan.

l,

of

1952

foreig'n
of

crude

109.6

*95.0

93.7

99.7

*104.2

104.1

104.1

Dec

86.9

ZZZZZZDec!
basis

109.9

94.5

104.4

'

n

All commodities other

•Revised

Z

foods

Meats

*110.1

110.1

runs

108,587,670

§Based
tons.

on

new

86.9

85.2
114.5

112.8

obligations
Deduct—other

gations

outstanding
subject to

not

public

debt

debt

obli¬

limitation

■

"

628,001:

95.3

114.6

1

114.6

Total gross public debt and guaranteed

annual

capacity of 117,547,470 tons

as

Grand

total

Balance-:face
under

outstanding

amount

above

of

authority

obligations,

issuable

Volume 178

Number 5282

...

The Commercial and Financial Chronicle

109

(2465)

Continued from page 5

does the

'permanent' investor, he

assumes

less

ability to estimate
prices six months hence than does

the

•

realizing it.

For

substantial

a

ing,

sells

but

nothing

on

a

strength

These
We
To this

of

the

Dissent

have

occurred

preciation

further,

disturb

to

that

months

sufficient

the

{.-would

the

to

him

and

outlook

six

not have

later would

teriorated

de¬

columnist, dissemination

above

be alarmed sufficiently to
lower price.

sell at

one's

highly

seems

be

dan-

investment

logical

that

For

actually,

Primarily,
catch the

the

have

them

upon

builds

capital

flexible policies.

in

the

well-

fact that for most people,

known

selling
than

less

It helps meet the

involved

problem

than

is

a

buying.

involves

difficult

more

Holding
appraisal

an

ture

price no less
original
purchase.

art

issue

an

its

of

than

fu¬

did

its

capital

the

chairs,
,

appraisal:

it

is

merely

summation

of

taken,

that

one

closed

the

venture

a

con¬

under¬

normally has
time.

some

to

To succeed

in the venture,

it is not necessary
after a rise as one

appraise

had

before

to

first

the

rise, when he

bought.

"It

to

seems

weeks

oil

issues

field
".

that

me

for

ago,

a

several

the

over

Nor has

selling-on-doubt,

by Mr. Cortese,
wise "by ear," provided
With

onslaughts
is

to

all

which

subjected and the

which

he

investor

foibles

many

unceasingly

demon-

strates that he is unable to avoid,

keying

decisions

to

The

into

came

the

same

But in

.

substantial decline to

justify sell¬

ing oil shares several weeks ago.
with

Issues

less

a

doubtful

and still are, easy to
Utilities, readers will agree,
likely

this

time

capital than the oils.

It

at

happens that the writer

yet

that

so

has

market

is

he

think

to

reason

no

bear

been

sees as

that

the

completed

advocating

no

to seek at the

present time capital

the

of

other

principles deserve extended
sideration

these

do

nor

two

the

of doubt
to

to

are

This Week

Insurance Stocks

—

operating results dends on equity holdings, shouldt
of fire and
casualty companies for produce close to a 10%
average1953 appears to be
taking shape gain in investment income.
even though final results will not
known

for

the

first

half

and

since

that time,
knowledge

eral

trends

in

weeks

some

However,

earnings
scattered

of

•

as

the

operation^

the

-•?
.

fly-in-the-

recommended

matter of Uncle Sam's Reve■
■ ■

_

,

.

,

.

Department, ready to cut

on

if

you

worried
_on

a

.

and

whenever

-

in

your

provide

.

,

,

,

.

,

Cortese's

above-

jcy:" "ge uninfluenced by
,

...

„

.

.

....

substitute

issue

promising."

be

may

Surely

the

There

year ago.

decline

est

report

weeks,

earnings for
the same as

approximately
in

be

may

overall

mod¬

a

underwrit¬

ing profits but this will be offset
by

corresponding gain in invest¬

a

ment

have

stability

as

within

whole obscures

a

divergent

trends

which

been

operating within and
affecting certain segments of the

more

accrued

Prominent

in

this

has

respect

declining trend of under¬
writing profits from straight fire
insurance

lines.

of

years

After

prompt

complete

philosophy of a flexible in¬
policy. Experience and
logic show that the higher prices
rise, the closer they are to the
top and to the subsequent fall and
that the lower they fall, the closer
to the bottom and to the

rise,

subsequent

the

like,

have

must

had

,,

,

..

assuming

appraisal

surely

better

of

value,

genuine

have

result

that

pectation

economically-oc-

on

casioned doubts to justify all-over

portfolio liquidation,

Mr.

by

Cortese,

practice

also

as

been

advocated

in

has

the
the

actual

shown

be

to

fruitless. The market's action after

the forecasts of

the actual

course

the action

of stock

of

losses of

the

business, and

majority opinion—expert and

tax

a

illusion with

me

reality.

to

unemployment,
Instead,

depres-

and

there

followed

a

l'our-year boom stimulated by the
starved

a

But

economy.

guessed

right

"wrong"

on

alas,

consumer

ket

sagged

those

were

stocks, since the

mar¬

midst the activity

on

the industrial front.
And
...

.

we

especially

in

where moods

the
are

stock

market,
fickle, one sim¬

„

see

how

as

war,

guessing

a
on

.

,

...

((

.

..

„

.

the prior event.

,.

had, but by waiting he may,
and usually does, lose the oppor¬

tunity to capture what could have
his.

Taxes

profits

are never worse

on




security

than taxes

■

,

be it of

first

10

could

10 shaies

ship of

i

-x-

*

..

-

.

exploiting "doubt" further
valid
for
on

because

...

it

must

granted that you
the

going business, the fact

a

trigger than

are

your

foible

guessers
guessers

trying
is
is

well
wen

this comment

lished

quicker
f

-

out-anticipate

anticipators.
of

in-

take

neighbor;

...

*

can

depends

on

the property and

tricky market for its

then

basic

a

portion

of

investor confusion would be eliminated.

Fire

Underwriters

$752 million
the

1952.
for

as

amounted

to

increase of 16.4%

an

corresponding period of

Unquestionably, fire losses

the

will

year

record

reach

approaching

a

the

to

In

fact,

the

this

outguess-the-

demonstrated
demonstrated

in
in

elsewhere

this

week:

"The

profitability

of

or unprofitability
particular line. And it also

a

takes time for much adjustments*
when

made, to be reflected
underwriting results of the
spective companies.
view

annual

reports

especially
may provide

loss

industry

the

higher than

and

the

in,

United

ratio

considerably

a year ago.

Although

the

margin

should

been declining so that for the year
a
whole
the
underwriting

Casualty business, on the other
hand, has shown a favorable un¬
derwriting trend this
sizable
1951

rate

and

on

*ame mon[h
Alexander

recorded

Iast

the

says

year>

Hamilton

for

the

Institute.

of this year will
the same income as

quarter
about

that produced a year ago.
„

1(

,

granted

the

tajn

the

,hat

year

of

1953

important

Tri-Dent Common
Stock at $1
Charles

J.

high

record.

total

For

the

{or

reach

the

full
new

a

first nine

months, the n a t ional income

amounted to $224,214,000,000 this
year
as
against $208,144,000,000

stock

mon

as

royalty

years

Jersey, Sept. 18, 1951, un¬
name of Ripco Products.,
Inc., for the purpose of acquiring
a
patent application covering a
the

tooth

new

Tri-Dent

brush

the national income should

ex-

.

'

as

the*-

and

Brush,

tc

manufacture, license, develop and
sell this brush. On Nov. 18,
1952^
the name of the corporation was
changed to The Tri-Dent Corp..,
by amendment to its certificate of
incorporation.
Its
128
N.

for

were

lines

resulted

in

the

ratio

expense

primarily
volume

located

has

been

these

to

produce

two

City,.

Ne-JS'

Ave.,

The

corporation

Dec. 1,

1951,

application
a

tooth

an

acquired

on*

assignment of the

for

brush

letters

patent, of

invented

by

Dr..

Rudolph Ripper.

This assignment

includes

inventor's

the

all

right;,

the .title and interest to his invention*
The
in the United States, Great Brit¬

of

business.

of

expected

550—5th

at

a

because

of

Avenue, Jersey

J., and its New York office it*

York, N. Y.

the

sharp
The trend

principal office is located at

Linden

gains

a

very

ain

and

its

Dominions,

Belgium^.

improvement
casualty showing.

The

the

Holland, France, Germany, Mex¬

foregoing

overall

in

within

Japan and the countries of Southl¬

ico,

trends

Sweden,

the general industry are to a large
extent counter balancing.
How

and Central

the

ized

various

companies

will

be

influenced will be determined by
the concentration of underwrit¬

Switzerland,

Israel,.

America, and author¬

the corporation

to apply foj?

patents and design patents in any
of said countries in its own names.

ing lines.
Where

company
writes
a
large percentage of business in
straight fire it seems fairly cer¬
tain
that
underwriting experi¬

able
For
the

a

for

1953

than
a

in

the

be

less

and

favor¬

INSURANCE
STOCKS

previous period.

concentrated in
field, on the other

company

casualty

hand,

will

BANK

substantial improvement

a

in underwriting is indicated.
With

Laird, Bissell & Meeds

terest

whole,

known

Tooth

$291,629,000,000.

as a

and
cor¬

Tri-Dent Corp. was incorporated

with the 1952 record high total of

Consequently, for 1953

for firsfc

porate purposes.

American

7.7%.

si

remainder

be
used
as
operating
working capital for general

New

of

the

will

results should be
quite favorable.
Much will de¬
pend upon individual investment
policies. But a larger volume of
funds combined with higher in¬

increase

reserve

a

and

Members

an

of Tri-

share "as

per

proceeds, $20,000 wiHt

Members

year,

Share-

(par 10 cents)

Corp. at $1
speculation."

investment

last

a

Maggio,

Inc., New
York, on Dec. 7 publicly offered
an issue of
300,000 shares of com¬

••

lines

fully reflected in op¬
erations.
In
addition,
an
im¬
provement in loss experience on

now seems cer-

will

in

time,

ence

..

The

year.

increases

1952

automobile

first

States

*ar!Pj ^an Se

$27,225,000,000

should!

year

as they
good indication of.

a

as

is

or to a higher figure than in
preceding month of this year,

this

interesting

what to expect from underwriting
the coming year.

der

expense

combination

jn September to $27,502,000,-

•

foregoing, the

in

higher

toward

for

larger

Although the national income
roge

■

•

irt,
re¬

in New

plus an increase in ex¬
is expected to produce a

penses

trend

combined

of

Set New Peak in 1953

the

of

be

billion

This

down

ceed $300?000,000,000 as compared

by Mr. Cortese pub-

the

new

mark.

drop in the loss ratio.

National Income to

usu¬

years

time before adjust¬
ments in rates are made to
change
some

Of the net

these

Nevertheless, it

.

is

also

.

you

part owner-

a

0f whose attractiveness

shares,

10,000

or

established

once

be set aside

by

from straight fire will be
substantially below 1952.

shares—constitutes

show

......

Assumption of the possibility of

other

he

it

If

This indicates that returns for the

Out-Guessing the Guessers
.

that

been

market.

be. ^

final

paying the tax,

loses nothing

one's

of price changes

game

liquid

a

produced

.

events,

taxation, government

peace,

ply doesn't have a profit until he
takes it.
In taking a profit and
one

the

substantial

recurrently
..

.

doubt-creating

confuse

In the shift¬

in

losses

„

who

business

on

It takes

esti¬

reasonable

not from the

Hesi¬

ing values of the marketplace and

..,

paying-back

the return from

profit because of
to

seems

of

inexpert—expected postwar defla-

eventual, realized

greater size.

even

example,

bonus, over a reasonable still be relatively favorable, the
termi but wrongly as a counter in important point is that it has

business,

prices. In 1945

trend

a

ally continues for several

Dent

profits
between

has been the experi¬
insurance
industry

the National Board of

.

illustrates

,

apparent to the investor

,

capital invested, plus interest, plus

000,

of

.

,

in

a

for the in-and-out Cortese-ans.

Reliance

.

share

a

a business property which will afpossible ford safety and a reasonable exwith

ended

than

any

soundness

tating to take

approach

new year.-

the

1953 fire losses

over

.

as

term

it

in

mated

Logic

capital-gain

con-

were

..

periods of doubt at various stages

company

himself and for

For

and

Surely the 10-year
But it is in its fundamental attiholders of Carbide, duPont, Sears
^ucje
toward
the
common
stock
and

all

ence

months of

etc.,
entail
and of the business in trols,
diametrically
which it is engaged. As for hesi¬
conflicting market reactions—with
tating to take a-loss, the attitude the
hind-sight "explanation1 alis responsible for much sterility
ways conveniently tailored to fit
in
portfolios, lost opportunities

fundamental

Investment

Business

decision

a

of

operations into the

After

under¬

this

on

,

Violation

are strong and it is
likely
they will continue to influ¬

ence

several

profitable

very

margin from these lines.
A

that

business.

writing

,

be next
indicated,

may

the

trends

In

seeming

industry

However,

year.

income.

This
the

It is hazardous to predict what:

operating conditions

that
or

been the

...

tax on a proflt ln Jud6lng whether
a

a

the

.

should

ages,
1953

certain

basis. Widely-embraced but surely
is Mr.

a

the
large multiple line1* groups
writing a broad range of cover¬

profit-taking is successful

heads-you-win-tails-I-lose

„r.,

gen¬

major

forthcoming reports.
Barring some
major fire;

•

.

practical
in

the

reports

well

as

yet.

for

good indication of what to expect

•

liquidate?

satisfaction of

vestment

•,

JOHNSON

in the

j

..

faculty for ther-

con¬

the

the

moved

agility-flexibility technique is that

mometer-precise measuring of his
emotions, just how many degrees

sion.

For Less Hesitation!

"Discussion

that

..

tion,

gains in common stocks."

are

with

at¬

tempt on the part of the investor

they

round

being

nebulous

the

to

more

conserve
so

out¬

were,

are

vidual

they

the

philosophy of a
flexible policy, there was not the
slightest necessity to assume a

look

winning

rea¬

doubt."

of
.

find.

musical

Tax-Take

,,

invalid

emotional

the

of

key to stated third rule of "a flexible pol-

a

the

ad-

as

other

or

seems to me

November

Another

,

vocated

the

possibly

ointment

of

consistently

years

.

<

.

to

abortive.

success.

,

of

as

.

game

with

in-

an

during their issues' secular trebling crucially violates investment and
and quadrupling of market price, business
logic—iln regarding the
the reader, the
But in digging-in on their
long- stock certificate not

number of

well known to

sons

E.

The outline of

storm within the next two

gains

well

as

wide-

perhaps

...

a

year

.

efforts

year.

so

evidencing

fftead 10 JNOvember.

swings and trend (?) of nue
issues

like

,

issue

to

II.

business, a com¬
capital gains tax is just as integral
The
writer element of doubt
bination
of
assuredly is to
rapidly
rising
fire
f
.
,
considers that the sale of an lean on a
wholly unreliable reed. a paU ot the cost 0± a swltch as losses and rate adjustments in nu¬
(held) involves any such Even with the most stable indi- *s the broker's commission charge, merous states have
reduced the

never

be

By

be

of
,

next

all

criterion

the

on

are

should

attitude, this

business

market-conceived-as-a-whole

proved

and

conserves

better

the

results,

individual

but it has been the observation of

ing

glamor-less

appeal is only a mirage—on both
practical and theoretical grounds,

allvdoubts, of course, are
followed U5y substantial declines,
policy of act¬

are

suspect."

more

to

renders the escapist temptation
the more intriguing.
.

empirical

"Not

the writer that the

and

judgment

they

..

so appealing; and second, because Mr. Cortese's lucidity

a

Flexibility and Activity

gen-

which to take profits

on

instead

factors, is

de¬

point where he

is still fairly

expectations

spread

gerous. First, because the offered
[Bold face ours.] By escape to an oasis of safety and
contrast, in holding the motor profits from the recognized rigors
stocks last spring, the less 'flex¬ and
shortcomings - of
confining

that six months later there would

by

reinvest-

at the lower tax rates next

,4

than doubt.

not

usual

tax-"

more

ible investor tacitly assumed that
-they would not fall substantially,

the

market

followed

waiting for the seasonal January

the

fall, before sell¬

on

rising

a

month,

era*\ ^ number of people

self-injurious
man, indeed, who refuses to work
merely because of the income

flexible investor does not wait, it
should be noted, until he can pre¬
dict

is

this

ment demand,

-

It

latter, though the latter does
without

so

•

income.

on

of

through
strength

Observations.
heed to the six-months' risk than

expectation

.

,

...

..

respect

earnings,

to

the

rates

and

increased

divi¬

120

York

Stock Exchange
Stock

Exchange

BROADWAY, NEW YORK 5, N.
Telephone: BArclay 7-3500 •
Bell

T.

Teletype—NY 1-1248-49

(L. A. Glbbs, Manager

Trading Dept.)
Stocks

Specialists in Bank

106

(2466)

The Commercial and Financial Chronicle

*

of investment
company leaders, for the passage
vestment
Company Act of 1940.

A MUTUAL INVESTMENT FUND

NATIONAL

Mutual Funds

SECURITIES

For

house
has

By ROBERT R. RICH

SERIES

Merrill Griswold

NATIONAL

SECURITIES &

RESEARCH

This he

left to take
up permanent residence in what had
summer home in

now

Manchester-by-the-Sea

Griswold, head of the world's first, oldest and
largest mutual fund, announced today that he would retire
at the end of this
year as chairman of trustees of Massa¬
chusetts Investors Trust, remaining only as chairman of

director and chairman of the executive
committee: Tracer

CORPORATION

Lab

Inc., director; Ionics, Inc., director: Consolidated In¬
Trust, trustee; Pan American World Airways,
director; General Public Utilities, director; Products De¬

vestment

Established 1930

120 Broadway, New York 5, New York

velopment Corporation, chairman; and the John
Mutual Life Insurance
Company, director.
LEXINGTON
its

rent

Dwight

FUND

Robinson

P.

Merrill

Griswold

Putnam Fund Distributors, Inc.
50, Stare

Street, Boston

Ijyyyyf

Isaacs

L.

advisory board and relinquishing his post to
Dwight P. Robinson, Jr., who has been vice-chairman of
Isaacs,

a

trustee since 1937,

a

trustee of the company

growth from $10 million to

in 1925
elected chair¬

a

at

fine

years
over

as

occasional

SHARES

135 S. La Salle St.

Chicago 3, III.

Send
the

me a

115

Broadway

New York 6, N. Y.

PropMus describing

Corripany 'and its Shares

NAME

substantial

reduction

oil

bonds.

A

golfer with

and

(2)

(3)

highly individual style, who
but for the company, a fisherman
a

A

and

took

place

in

(1)

fish ever had, and
grandfather, Mr. Griswold is described by
"a man that looks 20
years younger, even to his
opponents."
a

equities.

amounted

to

by

the

on

Company

the

se¬

All

net

to

660,973

cash

Oct.

31, 1952,

the

then

of

or

$5,846,943
$9.47 a share

outstanding

on

account

among
4,134
This compares with

assets

$400

per

to

Bankers

are

invested

in

shares

on

the date of

dividends

re¬

shares

of

have

already

on

A

on

privilege

own in the

dividend

plan

617,235 Vi

shares held by 3,557 shareholders.

the

including the shares they

has

nounced
ers

plan.

reinvestment

also

been

an¬

whereby stockhold¬
have

may

their

cash

dividends

Throughout his career
industry, he has been, with
fatigable fighter for what he

in

the

an

has

investment

inflexible

will,

company
an

thought will do the most

radical

regarded—erroneously

departures from the

norm.

as

it turned out—

He is, and has

been,

highly in favor of greater participation in
corporate man¬
agement by the small
stockholder; he is convinced that
laws

have aided

and believes there is

a

American

definite

place for government

lation in American
this

industry generally
regu¬

business, under proper conditions. In
connection, he fought successfully, as one of a
group

more

Investors Mutual Crosses

inde¬

good for the industry and the small stockholder whose
literal champion he has been. The
majority of his ideas,
within the Trust and within the
industry, once imple¬
mented, have proved him right, a fact which has served to
make his
purposes as firm as his convictions. Some of his

anti-trust

totalling $10 or
automatically rein¬

vested in shares of Chemical

Half-Billion-Dollar Mark

Fund

at

assets

price

on

have passed the half-billiondollar
mark, the company
disclosed Monday. The num¬

ment

date.

Investors

Mutual's

ber of shareholders
ceeds
As

now

"balanced"

a

mutual

common

dividend

pay¬

You, too,

may

benefit from

preferred

stocks

CAPITAL CAINS

and

bonds.

PROGRAM

Massachusetts
still

Investors

remains

Free

the

world's largest mutual fund,
with
total
net
assets
on

reported

at

trial

subscription

HOMER FAHRNER

$518,-

Security Analyst since 1926
Corning, California

'

^

Inc.

■

Fundamental Investors, lnc«.

•

Diversified Common Stock Fund

An Investment

Company Specializing in

the Securities of the Chemical

Industry

m

Diversified Growth Stock Fund

Diversified Investment Fund

Prospectus Upon Request
me a

no

prospectus

obligation please Rend

on

w

Manhattan Bond Fund, Inc.

Canadian Fund.

Name

F. EBERSTADT & CO. INC.

PROSPECTUSES

AVAILABLE

FROM

YOUR

O^THESE

LOCAL

MUTUAL

INVESTMENT

FUNDS

DEALER,

OR

Cleveland

Address.

Manager and Distributor
39 BROADWAY

city




Chicago
Los Angeles

NEW YORK CITY

our

stock balanced

by varying amounts of high-

Trust

public offering

SYSTEMATIC PROFITS

holds in its investment port¬
folio a majority of diversi¬

grade

the

ex¬

fund, Investors Mutual, Inc.,

fied

the

159,000.

Tuesday
797,408.

GENTLEMEN: At

of

purchased
under the plan may be sim¬
ilarly invested. Existing
stockholders opening a plan

outstanding

shareholders.

bank

offering price
receipt.

(3)

equal

provid¬

more

Chemical Fund at the public

Oct. 31, 1953

on

$6,197,796

share

a

total

total

ceived

Total net assets

shares

or

they,

Trust

curities.

$9.38

be $50

Payments sent

(2) Utility

companies'

time

annum.

Also in electronic and finan¬
stocks and various manufac¬

Short-term U. S. Government

of

subsequent investments

may

ing

Increases

turing

permit investors

period

a

periodic payments.*
Investment
plans
may
be
opened for as little as $250,

reduction

mining stocks.

with

Company

through

in

equities—both electric and natural

Griswold was born in
Washington, D. C., in 1886,
graduated from Harvard College in '07, and from Harvard
Law School, cum
laude, in 1911, editing, in his last two
years, the Harvard Law Review.

as

CITY..

A

railroad

cial

as a

ideas have been

ADDRESS

(1)

completed

Trust

will

over

year:

gas.

been

announced

arrangement?

to acquire shares of the fund

the

half-

a

Mr.

MANAGEMENT CO.

fund's

led the

backlash, is the best friend the

67, twice

friends

TELEVISION

the

during

Fund,

that

Bankers

Bonds of foreign governments and
other corporate bonds.

plays not for the score
who, preoccupied with the intricacies of the reel and with

request from your
investment dealer or

have

which

reduction in long-term U. S. Gov¬
ernment bonds.

Known

on

in

made

Robinson's position.

company in its
billion dollars.

Propedus

changes
were

Eberstadt, President of

Friday

in

shortly after its beginning. In 1932, he was
man of
Trustees, and in the succeeding 21

Television and Electronics Securities

F.

Chemical

The 15th annual
report to share¬
holders reveals that the
following

portfolio

.;

Periodic Payment Plan

cur¬

will become vice-chairman of trustees in succession to Mr.

Mr. Griswold became

A Diversified Investment Fund of

Chemical Fund Announces

high corporate earnings.

important
the Trust's

trustees since 1950. Kenneth L.
1

Kenneth

continuance of

a

Hancock

in

the trustees have maintained
cautious
attitude
toward
the

prospect for

PUTNAM

of Jjjoiton

FUND,

that
a

1

TRUST

annual

report for the fiscal
year ended Oct. 31,
1953, indicates

J/ie Seorae

L

Bos¬

on

Mr.

Merrill

PROSPECTUS

town-

a

Griswold's business
affiliations, other than the '■
Trust, include Dewey & Almy, director and member of the I
executive committee; Sheraton
Plaza, director; The Shera¬
ton, Inc., director; American Research and
Development,

FREE INFORMATION
FOLDER AND

long time, Mr. Griswold maintained
Marlboro Street in Boston's Back
Bay.

ton's North Shore.

Retire

to

of the in¬

a

on

been his

WRITE FOR

.Thursday, December 17, 1953

..

Hugh w. long and Company

San Francisco

Incorporated

Westminster

at

Parker, Elizabeth

3,

New Jersey

■

Volume 178

Number 5282

.

.

The Commercial and Financial Chronicle

.

(2467)
!i 1 df&fr

5-

•

V'

it INDICATES

Securities Now in Registration
• Alsynite Co. of America, San Diego, Calif.
10 (letter of
notification) 50,433 shares of common
(par $1)

basis of

$1.25

one

to be offered to present stockholders
Proceeds—For

general

corporate

:

NEW ISSUE CALENDAR

pur¬

••••

Office—4654 DeSoto St., San
Diego, Calif. Under¬

poses.

December 17

RR.

Amalgamated Growth Industries, Inc.
Sept. 28 (letter of notification) 149,999 shares of common
6tock (par 10 cents).
Price—$2 per share. Proceeds—For
acquisition of patents, etc., and for new equipment and
working capital. Office—11 West 42nd St., New York
City. Underwriter—R. A. Keppler & Co., Inc., New York,

(Bids

CST)

noon

$7,650,000

(Friday)

Farrington Mfg. Co....
(Chace,

;

Whiteside,

West

Class A Common
&

Winslow,

inc.)

15,000

shares

Preferred

EST)

noon

$7,500,000

(Del.)
Nov. 16 (letter of
notification) 200,000 shares of common
stock (par 10 cents).
Price—$1.50 per share. Proceeds
—$14,500 to be paid to Commonwealth Research Corp.

Trad Television

in

Continental Transportation Lines, Inc

testing

with

agreement; $20,000

for drilling and

(Shields

well

(Bids

Union

(P.

United

American Diamond Mining Corp.
Dec'. 8 (letter of notification)
260,000 shares of common
stock (par $1).
Price—$1.15 per share. Proceeds—To ex¬

(letter

to

(William

Inc.)

21,000

shares

...Common

invited)

be

&

Oil

&

(Offering

Staats

Gas

to

&

(Tuesday)
Co.)

Fuel

100,000

(Monday)

underwriter)

Injector

Union

Gas

Common

Co.)

January 5

$250,000

(Tuesday)

(City of)__
(Bids

Debentures

be

to

invited)

$22,854,000

None.

January 6

it American Mutual Fund, Inc., Los Angeles, Calif.
15 filed 250,000 shares of
capital stock. Price—At

market.

Proceeds—For investment.

(Wednesday)

(Bids

Underwriter—None.

Co.

11

EST)

a.m.

Probable

Detroit

Central

Corp.;
(jointly); Harriman Ripley & Co., Inc.
Bids—
Tentatively scheduled to be received up to 11 a.m. (EST)

|

Co

Illinois

(Stone

Debentures

&

27

—To

(Bids

11

EST)

a.m.

(A.

Business—
Underwriter—Rey¬
Offering—Postponed.

stock

James

1.000

shares

of

class

G.

Becker

&

Co.

Development
First

stock

up

Proceeds—To

4%

retire

debentures

due

31,

1954.

Price—$20

approximately
1961,

for

$80,000

expansion

of

and

Bonds

and

Morgan

Stanley

Co.)

&

$100,000,000

(May

be

The

$7,000,000

First

Boston

preferred

Corp.

and

and

Blyth

&

225,460 shares of

Inc.i

Co.,

common

(Bids

to

be

invited)

January 13
Ohio

Edison

(Offering

to

.Bonds

Common
to

be. invited)

527,830

shs.

January 18

(Monday)

(Offering

to

stockholders—The

will

it Aztec Oil & Gas Co., Dallas, Tex. (1/4)
14 filed 2.055,977 shares of common stock
/par $1)
to be offered for
subscription by common stockholders

act

as

advisors)

January 19
Ohio

of Southern Union Gas Co. of record Dec.
28, 1953 on the
basis of one share of Aztec for each Sou+hern Union
common
share held.
Price—To be supplied

Common

First

Boston

Corp.

$7,650,000

and

for

working capital.

Underwriter—

Edison

Co
(Bids

(1/7)
15,000 shares of cumulative preferred stock,
(par $100). Price—To be supplied by amend¬
Proceeds—For new construction. Underwriter—

Dec. 9 filed

Stone

&

Webster Securities
Corp., New York.
Century Acceptance Corp. Oct. 16 (letter of
notification) 10,000 shares of class A
stock (par $1) and 5,000 shares of class B stock
(par $1). Price—Of class A, $2.50 per share; of class B,
$1.90 per share. Proceeds—To Robert F. Brozman, the

Mo.

Underwriter—Wahler, White

Bonds
to

be

invited)

$30,000,000

—To

Industries, Inc., Oklahoma City, Okla.

construct mill.

Price—$1 per share.
Underwriter—None.

Cincinnati & Suburban
Nov. 6 filed 312,812 shares of
for subscription

by

on

common

For facts that show how you can get more from
your
call your agency or nearest

it

advertising,
Chicago Tribune representative.

CHICAGO TRIBUNE
The World's Greatest

The Tribune gives to

Newspaper

each day's market tables and report?
the largest circulation given them in America.
*




stockholders of record Nov.

Coleman Co.,

Inc., Wichita, Kan.
(letter of notification) 1,200 shares of common
(par $5).
Price—$28 per share.
Proceeds—To
selling stockholder. Office—250 No. St. Francis Ave.,
Dec.

2

Wichita, Kan.
Chicago, 111.

Underwriter—James

E.

Bennett

&

Co.,

Consolidated Edison Co. of N. Y., Inc. (1/6)
2 filed $35,000,000 first and
refunding mortgage
bonds, series J, due Jan. 1, 1984. Proceeds—To repay
bank loans and for construction
program. Underwriters
be determined by competitive
bidding. Probable

—To

(EST)

on

Jan. 6.

★ Consolidated Uranium Mines, Inc.
Dec. 9 (letter of notiifcation)
532,705 shares of common
stock (par IV2 cents).
Price—20 cents per share. Pro¬
Salt Lake

working capital. Office—307 Darling Bldg.,
City, Utah. Underwriter—None.

Power Co., Jackson, Mich. (1/6)
679,436 shares of common stock (no pat) to
be offered for subscription
by common stockholders of
record Jan. 7, 1954 on the basis of one new share for

Jan.

Office—6301

Lincoln

held; rights to expire

Jan. 22.

on

Unsub¬

4.

Proceeds—For

at

construction

program.

Continued

on

Under-

page

108

Ave., Morton Grove,

Underwriter—None.

Beamaster, Inc.
11
(letter of notification)

Dec.

multi-billion dollar midwest market.

Telephone Co.
stock being offered

common

basis; rights to expire Jan. 8. Price—
($50 per share). Proceeds—To reimburse treasury
for expenditures made for
extensions, additions and im¬
provements to plant. Underwriter—None.

9

stock

news¬

Bell

Proceeds

l-for-3

a

each 10 shares

it Baxter Laboratories, Inc.

111.

financial

St., Kansas City,

scribed shares will be offered first to employees. Price
be determined by the company and announced on

stockholder.

paper, is the medium thru which you can get buying action from the
people who account for the bulk of the investment buying in the

Oak

& Co., Kansas City, Mo.

Dec. 3 filed 5,000,000 shares of class B
non-voting com¬
mon stock
(par one cent).

(letter of notification) 2.600 shares of common
stock (par $1). Price—At Market. Proceeds—To
selling

Thru the Chicago Tribune at one low cost you can
place your offerings
of securities and services before both investment markets in
Chicago
and the midwest—professional buyers and the
general investing public.
The Tribune, as Chicago's foremost business and

per

—To

Nov.

One ad sells both I

pa£ ($100

Proceeds—To reduce short-term notes. Under¬
writer—None. Offering—Temporarily postponed.

Dec. 3 filed

by amend¬

wells

Price—At

share).

Consumers

t

(Tuesday)

Proceeds—To acquire equipment and
property, for

drilling

Airline

Carolina Telephone &
Telegraph Co.
Aug. 17 filed 33,320 shares of capital stock to be offered
for subscription by stockholders in the ratio of one
new

ceeds—For

Fire Association of Philadelphia

Dec.

None.

from

ceived up to 11 a.m.

Co

stockholders—bids

new

equipment and working capital. Office—70 Washington
St.,* Brooklyn 1, N. Y. Underwriter—None.

ment.

acquisition of four Martinliners and

bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley &
Co.; The First Boston Corp. Bids—Expected to be re¬

$25,000,000

(Wednesday)

10-year

program,

stock

and

Dec.

Pfd. & Common

Public Service Co. of Indiana, Inc

share.

per

shares

(Tuesday)

Kansas City Power & Light Co

Price—$21 per share. Proceeds
Walsh, the selling stockholder. Under¬
Co., New Haven, Conn.

March

to

Corp.

A

Casting Corp., Brooklyn, N. Y.
(letter of notification) 10,000 shares of common
(no par) to be offered for subscription by stock¬

holders

100,000

_

Boston

Arwood Precision
3

.Common

Inc.)

January 12

(no par).

A.

common

certificates

one James
Wooten), 70,000 shares to Sig Shore,
70,000 shares to Fred Miller and 50,000 shares to James
Wooten. Price—To public—100% for certificates and 75
cents per share for the stock. Proceeds—To finance the

27

Bonds

International Bank for Reconstruction
(The

(letter of notification)

the

stock

Proceeds—For working capital.
of tires and tubes.

Co., New York.

which

$20,000,000

Marquette Cement Mfg. Co

writer—Gruntal &

Dec.

Preferred
$1,500,000

,

Armstrong Rubber Co.
common

Co

Corp.)

(Monday)

supplied by

Nov.

Gas

Securities

January 11

March 31 filed $4,000,000 of 5% convertible subordinated
debentures due May 1, 1973.
Price—To be

Manufacturer

of

shares to

$43,358,000

(Thursday)

Electric

Webster

&

underwriting)

Appalachian Electric Power Co

amendment

convertible equipment trust

At par

11.

Armstrong Rubber Co.

nolds &

EST) 679,436 shares

stockholders—no

January 7

Corp.

Jan.

to

bidders:

Boston

on

Edison

(Offering

bidding.
Halsey, Stuart & Co. Inc.; The First
Kuhn, Loeb & Co. and Union Securities

cents),

Cherokee
Common

(Offering to stockholders—bids

Dec. 9 filed $20,000,000 first
mortgage bonds due 1983.
Proceeds—To repay bank loans and for new construction.
Underwriters—To be determined by competitive

50

Scranton &

400,000
shares of the stock are to be offered
publicly; 300,000
shares are to be sold to the underwriter (including
50,000

$35,000,000

Consumers Power Co

(1/11)

W.

Airlines, life.

$600,000 of 7%

selling stockholder. Office—1334

Consolidated Edison Co. of New York, Inc.__Bonds

■

Appalachian Electric Power

Chas.

common

Montreal

Dec.

(par

ment.

Corp

(d'Avigdor

and

series D

Co.

shares

2,055,977

Underwriters—Smith, Ramsey &

^Central Illinois Electric & Gas Co.
.Common

Southern

of

California Central

27; rights to expire on
share). Proceeds — For

per

share for each five shares held.

shares

Co..

stockholders

—no

Saaty

per

Common

$299,750

..Common

R.

program.

($25

Co., Inc., Bridgeport, Conn.,
Co., New Haven, Conn.

aircraft

(Tuesday)
Co.

At par

preferred share for each three

of Nov.

one Douglas DC-3
Transport Carriers, Inc. Under¬
writer—Gearhart & Otis, Inc., New York.

shares)

100,000

22

January 4
Aztec

share). Proceeds—To establish
cattle industry in Israel. Underwriter—

a

Co.,

Corp., Ltd

American-Israeli Cattle Corp., Beverly
Hills, Cal.
Aug. 24 filed 100,000 shares of class A common stock.

develop

&

December 29
Fluor

notification) 10,900 shares of capital
Price---$27.50 per share. Proceeds—For

($10

Brooks

Common

Corp....?

of

Price—At par

Corp

(Goodbody

working capital. Office—American Bldg., 307 So. Orange
Ave., Orlando, Fla. Underwriter—Goodbody & Co., New
York, N. Y.. and Tampa, Fla.

and

Bonds
$15,000,000

American Fire & Casualty Co

it American Fire & Casualty Co., Orlando,
Fla. (12/22)
(par S10).

Common

$2,110,200

EST)

—

one

as

certificates, series A, and 890,000 shares of

(Monday)

Co.)

December

plore and develop the Murfreesboro, Pike
County, Ark.,
and for general corporate purposes.
Office—
99 Wall St.. New York
5, N. Y. Underwriter—Samuel W.
Gordon & Co., Inc., New
York, N. Y.

7

W.

Gas

(Bids

property

Dec.

&

noon

Wire Rope

construction

Nov. 5 filed

Illinois Central RR.

for

shares held

Dec. 22. Price

Common
$300,000

December 21

•

stock

Corp
(Tellier & Co.)

on the North Carolina
acreage: $50,000
drilling three additional wells; and the re¬
mainder for working capital, etc. Office—317-325 South
State St., Dover, Del.
Underwriter—Walter Aronheim,
New York City.
Letter to be withdrawn.

one

reserve

ISSUE

Bridgeport Gas Light Co.
60,500 shares of 5.28% cum. convertible pre¬
ferred stock, being offered for subscription by common
common

Narragansett Electric Co

Development Corp.

accordance

REVISED

Nov. 12 filed

stockholders at rate of

December 18

(Bids

American

Pacific

Equip. Trust Ctfs.
.

Y.

•

ITEMS

Underwriter—None.

(Thursday)

Chicago, Milwaukee St. Paul &

writer—None.

N.

PREVIOUS

Dec.

on

share for each two shares held. Price—

new

share.

per

ADDITIONS

SINCE
•

it Big Jim Mining Co., Carson City, Nev.
14 (letter of notification) 2,500 shares of common
stock. Price—$10 per share. Proceeds—For exploration.
Office—Virginia & Truckee Bldg., Carson City, Nev.

Dec.

stock

107

^

of

$10

which

per

6,000

2,500 shares have been

share

by

Barker

&

shares

of

bought

Williamson,

capital

for cash

Inc.;

2,500

shares have been issued to Howard R. Annis, of Bristol,
Pa. for patent rights and equipment; 100 shares have
been purchased by two individuals and 900 shares are
offered to employees of Barker & Williamson, Inc. Of¬
fice—237 Fairfield Ave., Upper Darby, Pa. Underwriter
—None.

it Berkshire Trout Farm,
Dec.
stock

Inc., Bronxville, N. Y.
(letter of notification) 18,600 shares of common
(par $1). Price — $10 per share. Proceeds — For

7

working capital.
N. Y.

Office-r-125 Parkway. Road, Bronxville,

Underwriter—None.

New York

Boston

Philadelphia

Pittsburgh

San Francisco

Private IVires to all

offices

Chicago

Cleveland

i

m

(2468)

The Commercial and Financial Chronicle

Continued
writers

from

To

—

Probable

Greenwich Gas Co.,
Greenwich, Conn.

107

page

determined

be

bidding.

competitive

by

bidders:

Morgan Stanley & Co.; Harriman
The First Boston Corp. (jointly);
Lehman Brothers. Bids—Expected to be received up to
11 a.m. (EST) on Jan. 6 at 20 Pine St., New York, N. Y..
Ripley

Co.

&

Cramer

and

(R. W.)

20

(no par) to be offered in units of one $100 debenture and
four shares of stock (debentures are convertible at rate
•of

share of

one

for each

common

$45 principal

amount

of debentures).

Price — $200 per unit. Proceeds
machinery and equipment. Underwriter—None.
Cuban American Minerals

Oct.

6

(letter of

For

—

Corp., Washington, D.C.

notification)

6,000 certificates of par¬
Price—At par (in units of $50 each).
Pro¬
ceeds
For general corporate purposes.
Office — 439
Wyatt Bldg., Washington, D. C.
Underwriter—James T.
De Witt & Co., Inc., Washington, D. C.
ticipation.

89,333 shares presently outstanding; then to public. Price
—To be supplied
by amendment. Proceeds—From sale

Nov.

Nov.

Light Co., Dallas, Tex.
(letter of notification) 672 shares of

23

^tock (no par) to be offered for

stockholders
Held.

basis of one

on

Price—$130

struction.

per

new

share.

common

subscription by minority
share for each 10 shares

Proceeds— For

Office—1506 Commerce St.,

new

con¬

Dallas, Tex.

Un¬

derwriter—None.

'
■

Dealers
Nov.

25

mon

stock.

(letter

of

notification)

Price—At

($5

par

23,765 shares of com¬
per share).
Proceeds—

For working capital.

Office—105 Exchange St., Darling¬
ton, S. C. Underwriter—G. H. Crawford Co., Inc., CoJambUs, S. C.
Detroit

Edison Co.

subscription by stockhold¬
6, J954, on the basis of $100 of deben¬
each 25 shares of stock held;
rights to expire on

of record Jan.

tures for
Feb.

1,

1954.

Joans and for

Price—At

Proceeds—To repay bank
construction. Underwriter—None.

new

par.

if Edgcomb Steel Co.
Dec.

9

(letter

of

notification) 5,000 shares of common
to employees.
Price—$15 per share,
working capital. Office—D St. and Erie
Ave., Philadelphia 34, Pa. Underwriter—None.

vstock

to

be offered

proceeds—For

Farm & Home Loan & Discount
Co.,
Nov. 9 filed 863,230 shares of class A

Phoenix, Ariz.

-and 50 cents,
respectively.
ital. Underwriter—None.

stock,

common

358,186 shares of class B common stock
.shares of class C common stock. Price—25

and

1,000,000

cents, 35 cents
Proceeds—For working cap¬

at

stock

$13.25

Office—76

A

(par $10). Price—At market (estimated
share). Proceeds—For working capital.

per

Atherton

St., Boston 30, Mass. Underwriter
—Chace, Whiteside, West & Winslow, Inc., Boston, Mass.
.'Federal Pipe & Foundry Co. (N. J.)

Nov. 16 (letter of notification) 39,000 shares of

common

etock (par 25 cents). Price—$1 per share. Proceeds—For

purchase of land and machinery, to erect buildings and
working capital. Underwriter—A. Kalb & Co., 325
Market St., Trenton, N. J.

for

if Fidelity Trust of America, Dallas, Tex.

(letter of notification) 30,000 shares of common
(no par). Price—$10 per share. Proceeds
For
—

working capital.

Business—Financing business.

writer—Boylen, Kasper & Co., Dallas, Tex.
-j4r Fire Association of Philadelphia (Pa,)

Under¬

rights to expire

on

Feb. 17.

Price—$22.50

♦seeds—To increase capital and
surplus.

share. Pro-

Meeting—Stock¬
num¬

Underwriter—None,

York, will act

the

as

ad¬

company.

Florida Western Oil Co.
Nov. 6

(letter of notification) 250,000 shares of common
Price—$1 per share. Proceeds—For
♦drilling test well. Office—803 N. Calhoun
St., Tallahas¬
see, Fla.
Underwriter
Floyd D. Cerf, Jr., Co., Inc.,

•stock (par 10 cents).

—

Miami, Fla.
«

Fluor

Dec.

7

Corp., Ltd., Los Angeles, Calif.

(12/29)

filed

100,000 shares of capital stock (par $2.50).
be supplied by amendment.
Proceeds—For
working capital. Business—Construction of plants for
the oil, gas, chemical and
power industry.
Underwriter

JPrice—To

—William R. Staats &
Co., Los Angeles, Calif.

if Franklin Custodian Funds,

Inc.

Dec.

9 filed additional shares of
stock in its Common
Stock Series, Bond
Series, Preferred Stock Series, Util¬
ities Series and Income Series.
Price—At market. Pro¬
ceeds—For investment.
Underwriter—None.

General Acceptance
Nov. 10 (letter of

Corp.
notification)

shares

of

$1.50

being offered in exchange
par 6% cumulative sinking fund
preferred stock of Universal Finance Corp.,
Omaha, Neb.,
on the basis of one General
Acceptance share for each
Universal

shares.

Office—949

This

Hamilton

writer—None.
<rp

offer

St.,

will

expire

Allentown,

on

Dec.

Under¬

Gray Manufacturing Co., Hartford, Conn.
9
(letter of notification) 1,000 shares of
capital
;,cjtock (par $5). Price—At market.
Proceeds—For work¬
ing capital. Office—16 Arbor St., Hartford, Conn. Un¬
derwriter—Vernon L. Haag.

14

common

for each New Bedford share held.
•

be

loans and

for

new

by

competitive

$5.75

construction.

Underwriters—To

bidding.

Probable

New

bid¬

York.

Dec.
to

10 filed

be

1

Enterprises,

filed

stock.

common

for
14.

Price—At

stock

common

Dec.

C.

Underwriter—None.

rate

of

one

new

share

for

each

—For

stock.

Price—At par

($5

per

share).

16

capital.
Office—1409 Hennepin
Minneapolis, Minn. Underwriter—None.

Ave.,

15

filed

Price—To

100,000 shares of

be

supplied

by

water filtration

—A. G. Becker & Co.

plant.

common

stock

Ohio. Underwriter

Inc., Chicago, 111., and New York,

if Merchants Credit, Inc., Washington, D. C.
(letter of notification) 1,750 shares of prior

Dec. 4

ferred stock and three shares of common stock.

unit.

due

Jan.

be

1,

up

1969 to be offered first to
to

Feb.

28,; 1954,

and

Proceeds—For working capital.

Price—

Office—

com¬

then

to

six months' period after which bal¬
to officers and directors.
Price—At

a

sold

Proceeds—For construction.

Underwriter—None.

—

working

Underwriter—Garrett

capital.

&

Co.,

Dallas,

Tex.

Nov.

9

(letter of notification)
(no par). Price—$21.50

stock

Geraldine
-

R.

N. Y.

4,600 shares
per

Denison, the selling

share.

of

common

Proceeds—To

stockholder.

Under-

writer—William N. Pope, Inc., Syracuse. N. Y.

if Preston Moss Fund, Inc., Boston, Mass.
14 filed 3,200 shares of capital stock.
Price

Dec.

Proceeds—For investment.

—

At

Underwriter—None.

Public Service Co. of
Dec.

due

9

Indiana, Inc. (1/12)
$25,000,000 first mortgage bonds, series K,

filed

1984.

Proceeds—To repay bank loans and for new
Underwriters—To be determined by com¬

construction.

petitive bidding. Probable bidders: Halsey, Stuart & Co,
Inc.; Blyth & Co., Inc.; Kuhn, Loeb & Co.; The First
\Boston Corp.; Glore, Forgan & Co.; Harriman Ripley &
Co. Inc. Bids—Tentatively expected to be received on
Jan.

12.

if Republic Aviation Corp., Farmingdale, N. Y.
Dec.

pre¬

stock
(par $100) and 5,250 shares of common
(par $1) to be offered in units of one share of pre¬

per

York

Petroleum Service, Inc., Dallas, Tex.
Oct. 30 (letter of notification) $300,000 of 6% convertible
debentures due 1963.
Price
At par.
Proceeds — For

(par $10).

Proceeds—To

it Medina Oil Corp., Orlean, N. Y.
Dec. 9 (letter of
notification) 2,800 shares of common
stock.
Price—At par ($100 per share).
Proceeds—To
purchase drill rig, etc. Office
10 East Corydon St.,
Bradford, Pa. Underwriter—Winner & Myers.

stock

will

market.

N. Y.

ferred

Development Corp.

(1/11-12)

amendment.

Co.

Porter-Cable Machine Co., Syracuse,

Underwriter—None.
Dec.

&

by
Stuart

Proceeds—For

St., New

general public for

\

^-Marquette Cement Mfg. Co.

competitive

Halsey,

stockholders

ance

(letter of notification) $125,000 of 4%% first
mortgage bonds, series A, dated Oct. 31, 1953, and due
Oct. 31, 1978, to be offered to residents of
Pennsylvania.
Price—100% and accrued interest. Proceeds—For
part
new

Wall

mon

28

a

determined

^ Peninsula Broadcasting Co., Salisbury, Md.
11 (letter of- notification) $200,000 of 6% income

ington Corp., Seattle, Wash.

payment of installation of

be

of first mortgage bonds due
property additions, etc. Under¬

25

par.

Water Co.

For

—

bidders:

debentures

MacKinnon's, Inc., Seattle, Wash.

(Pa.)

13.

(1/19)

Dec.
A

(letter of notification) $100,000 of 6%
10-year
convertible coupon debentures due Jan.
1, 1964. Price—
At par (in denominations of
$500 and $1,000 each). Pro¬
ceeds—For working capital.
Office —127th St.
and
Bothell Way, Seattle 55, Wash.
Underwriter—First Wash¬

Manheim

Price—To be named

working capital, etc. Office—
City. Underwriter—East Coast
Securities Corp., New York.
52

Nov. 24

Oct.

share for

$30,000,000

To

—

unit.

per

Proceeds

working

new

(letter of notification) 29,986 shares of 50-cent
cumulative preferred stock (par $1) and 89,958 shares
of common stock (par 10 cents) to be offered in units
of one preferred and three common shares. Price—$10

oversubscription privilege). Rights
will expire on Dec. 24.
Price—$5.75 per share.- Proceeds
—For working capital.
Office—25 East 26th St., New
York, N. Y. Underwriter—Childs, Jeffries &
Thorndike,
Inc., New York.

common

filed

Oil Financing &
Nov.

an

if Lowry Finance Co., Minneapolis, Minn.
Dec. 14 (letter of
notification) 16,630 shares of class

one

bidding.
Inc.; Morgan
Stanley & Co.; The First Boston Corp.; Glore, Forgan &
Co., White, Weld & Co. and Union Securities Corp.
(jointly). Bids—To be received on Jan. 19.

(M. H.), Inc., New York
Nov. 30 (letter of
notification) 8,533 shares of common
stock (par $1)
being offered to common stockholders of
at

Jan. 29, 1954.

about Jan.

or

Proceeds

Probable

Lamston

27

on

10

writers

(par $1) to
be offered in exchange for
preferred and common stocks
of 71 store corporations which
operate 83 retail credit

(with

on

if Ohio Edison Co.
1984.

Nov.

the basis of

(par $12)

stockholders

Brothers

received

Ltd., Montreal, Canada.
D.

on

stock

common

Probable bidders: Morgan Stanley & Co.; Leh¬
and Bear, Stearns & Co. (jointly); The
First Boston Corp.; Merrill Lynch, Pierce, Fenner &
Beane and Kidder, Peabody & Co. (jointly); Glore, For¬
gan & Co. and White, Weld & Co. (jointly). Bids—To be

(par $1—

Kay Jewelry Stores, Inc., Washington,
Sept. 28 filed 672,746 shares of capital stock

common

subscription by
1954

bidding.

man

Canadian). Price—$3 per share. Proceeds—For
expan¬
sion and exploration and
development expenses. Under¬
writer—Globe Securities
Corp.,
Statement to be withdrawn.

withdrawn.

by company on Jan. 11. Proceeds—For construction pro¬
gram.
Underwriters—To be determined by competitive

Jasper Oil Corp., Montreal, Quebec, Canada
550,000 shares of

been

v

($100 per share). Proceeds—For investment in exist¬
ing industrial enterprises in Israel. Underwriter--None.
28 filed

has

each 10 shares held (with an oversubscription privilege);

Inc., New York

18,800 shares of

and

(1/13)

527,330 shares of

offered

of record Jan.

rights will expire

Israel

$103

Statement

if Ohio Edison Co.

uary.

•

share. Proceeds—To increase receivables

per

reduce bank loans. Office—765 West Lancaster Ave.,
Bryn Mawr, Pa. Underwriter—J. G. White & Co., Inc.,

Corp.; Lehman Brothers; Blyth &
Co., Inc.; Kuhn, Loeb & Co.; Glore, Forgan &
Co.; Mer¬
rill Lynch, Pierce, Fenner &
Beane and White, Weld &
Co.
(jointly); Harriman Ripley & Co. Inc.; Salomon
Bros. & Hutzjer.
Bids—Expected to be received in Jan¬

•

American Acceptance Corp.
(letter of notification) 50,000 shares of 35-cent

to

ders: The First Boston

Oct.

20

cumulative convertible preferred stock (par $5). Price—

(letter of notification) 40,000 shares of cumula¬
(par $100). Proceeds — To repay

determined

North

Nov.

preferred stock

bank

Underwriter

Proceeds—For working capital.

if New England Gas & Electric Association
beneficial interest
(par $8) to be offered in exchange for common stock
of New Bedford Gas & Edison Light Co. held
b,y minor¬
ity stockholders on the basis of 4% New England shares

if Iowa-Illinois Gas & Electric Co.
Dec.

(jointly).

Corp.

Dec. 10 filed 32,126 common shares of

Proceeds—To pay

—

Pa.

' ~

Dec.




Co.,

purchase two plants in Georgia and
12,000

/series preferred stock
(no par)
for 30,000 shares of $10

21.

&

—

—None.

100,000 shares of
share).

per

Proceeds

share.

per

working capital, etc. Underwriter—Barham
Coral Gables, Fla.

shares held

(1/18)

increasing authorized

on

ber of shares from 360,000 to
800,000.
but The First Boston
Corp., New

visors .to

per

($1

Price—102V4% and accrued divi¬
For construction program. Under-,

common

Hydrocap Eastern, Inc., Philadelphia, Pa.
Price—At par

(12/18)
cumulative pre¬

shares of 4.64%

150,000

(par $50).

Nevada Tungsten Corp., Mina, Nev.
Oct. 22 (letter of notification) 1,000,000 shares of com¬
mon stock to be offered to stockholders. Price—Five cents

Vision, Inc., Miami, Fla.

notification) 299,500 shares of

debt and for

filed

12

Securities

& Co., New York.

Oct. 30 (letter of
notification)
stock.

Co.

writers—Kidder, Peabody & Co. and Stone & Webster

(par 50 cents). Price—$1 per share.
Proceeds—
working capital. Office—268 E. Flagler St., Miami,
Underwriter—Curlette & Co., Inc., Miami, Fla.

For

&

Narragansett Electric Co.

dends.

Co., New York.

stock

Fla.

Forgan

ferred stock

Gulf Sulphur Corp., North Kansas
City, Mo.
Oct. 27 filed 700,000 shares of convertible
preferred and
participating stock (par 10 cents). Price—$10 per share.
Proceeds—To develop Gompany concessions. Underwriter

record

X3ec. 11 filed 340,000 shares of
capital stock (par $10) to
he offered for subscription by stockholders of record Jan.
13 on the basis of one new share for each
share held;

holders will vote Jan. 14

•

Glore,

Nov.

holders. Office—10-15 43rd
Ave., Long Island City, N. Y.

jewelry stores.

/

Nov. 27
.itock

(letter of notification) 52,500 shares of common
10 cents) to be issued to warrant holders.
Price—$2.37 V2 per share. Proceeds—To selling stock¬

par

Farrington Manufacturing Co. (12/18)
Dec. 3 (letter of notification)
15,000 shares of class
common

(jointly); Kuhn, Loeb & Co.
(jointly); Lehman Brothers;
White, Weld & Co.; Smith, Barney & Co.; The First
Boston Corp. Bids—Not expected until after Jan. 1, 1954.

(par

Nov. 25 (letter of

Co., Salt Lake City, Utah.

Halsey, Stuart & Co. Inc.

Guardian Chemical Corp.

House of Better

&

filed

19

and

Nov. 30

&

cent).

one

(City of)
(1/5)
$14,854,000 of series 1953 debentures for
local improvements and $8,000,000 of series 1953 deben¬
tures for public works. Price—To be supplied by amend¬
ment. Proceeds—For improvements, etc. Underwriters—
To be determined by competitive bidding. Probable bid¬
ders may include: Shields & Co., Savard & Hart and

—None.

Underwriter—Batkin

(par

Montreal

Nov.

principal amount each and 100 shares of stock.
Price—$1,100 per unit.
Proceeds—To rehabilitate and
racing plant in Tucson, Ariz.
Business—Dog
racing with pari-mutuel betting privileges. Underwriter

Oct.

•

•

construct

stock

stock

Brothers

Inc., Boston (Mass.) and Providence (R. I.).

of $250

tive

(Pa.)

Price — 10 cents per share.
(prospecting. Office—504 Felt
Bldg., Salt Lake City, Utah. Underwriter—Harrison S,

Underwriter—F. L. Put-

program.

Lake City, Utah

1,500,000 shares of com¬

(lettermf notification)

Proceeds—For drilling and

Greyhound Parks of Alabama, Inc., Phoenix, Ariz.
Oct. 21 filed $400,500 of 6%
10-year cumulative income
debentures, due Oct. 1, 1962, and 40,050 shares of common
stock (no par) to be offered in units of four
debentures

(1/6)

Dec. 10 filed $43 358,000 3!4 % convertible debentures due
Feb. 1, 1969 to be offered for
ers

& Co.,

num

23

mon

stock, together with proceeds from private sale of
$200,000 of series A bonds, to be used to repay bank loans

—Peter Morgan

Discount Corp.

Underwriter—

St., N. W., Washington, D. C.

Midland Uranium, Inc., Salt

of

—

Dallas Power &

11th

None.

and for construction

Inc., Centerbrook, Conn.

Co.,

(letter of notification) $149,000 of 6% 10-year
convertible debentures and 5.960 shares of common stock
Nov.

513

Nov. 12 filed 75,468 shares of common stock
(no par) to
be first offered for
subscription by the holders of the

.Thursday, December 17, 1953

..

11

(letter of

notification)

779

stock (par $1).* Price—At market.
of

common

tion

with

stock

shares

in lieu of fractional shares

payment

of

a

10%

of

common

Proceeds—To holders

stock

in

dividend

Dec. 22 to holders of record Dec. 1, 1953.
None.
•

connec¬

payable

Underwriter—

-

,

•

'

;

.

Volume 178

•

Number 5282

Saaty Fuel

Dec.

3

.

.

The Commercial and Financial Chronicle

.

Injector Corp.

(letter of notification)

stock

(1/4)

(par $1). Price—$5 per
plant and equipment. Office—215 Chapman St., Boston,
Mass. Underwriter—d'Avigdor Co., New York.

$5 per share.

—

common

Proceeds

stock

(par $1).

To acquire stock of

—

Neb-Tex Oil Co., to pay loans and for working capital.

Office—Northwood,

Underwriter—Sills, Fairman

Iowa.

& Harris of Chicago, 111.

Registration statement

may

be

common

Inc.

one

& Co., Inc.

1964,

and

580,000

shares of

share

one

of stock. Price

Proceeds—From

filed

ployees'

6,200 memberships in the company's Em¬

Stock

Purchase

sale

of

be

Plan for

supplied by amend¬

units and

1954.

Underwriter—

.

Skyway Broadcasting Co.
A
Nov. 6 (letter of notification) subscription agreements
for 2,000 shares of common stock. Price—At par ($50

share). Proceeds—For studio remodeling. Address—
Radio Station WLOS, Battery Park
Hotel, Ashville,
N. C. Underwriter—McCarley & Co., Inc., Ashville, N. C.
per

Mining Co., Haiiey, Idaho
Oct. 30 (letter of notification) 1,000,000 shares of com¬
mon
stock.
Price—At par (25 cents per share).
Pro¬
ceeds—For machinery and equipment.
Underwriter—
E. W. McRoberts & Co., Twin Falls, Idaho.
Sta-Tex Oil Co.

Oct. 2

(letter of notification) 300,000 shares of common
(par five cents). Price—$1 per share. Proceeds—
For drilling costs.
Underwriter—Arthur R. Gilman, 20

stock

Broad

Street, New York City.

Co. and Union

drous

Securities

Corp., both of New York. Of¬
fering—Postponed indefinitely.

Dallas, Tex.

1,125,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters
White, Weld & Co. and Union Se¬
curities Corp., both of New York. Offering—Postponed
indefinitely.
Western Empire Petroleum

Oct. 22

Texas

Gasoline Corp., Tulsa,

Natural

Proceeds

10

(par

—

cents).

Utah.

Underwriter

Angeles,

working capital, to acquire
Office—812 Eccles Bldg., Ogden,
Samuel B. Franklin & Co., Los

holders.

Price—To be supplied by amendment. Proceeds
—From sale of 75,000 shares, for new construction and

general corporate purposes. Underwriters—Carl M. Loeb,
Rhoades & Co., New York, and Dallas Rupe & Son, Dal¬
las, Tex. Offering—Expected today (Dec. 17).

—

Calif.

■

■

*Wilson Organic Chertiicals, Inc. (N. J.)
Dec. 8 (letter of notification) 5,000 shares of
stock

of

■

;

was reported
company plans early registration
350,000 shares of common stock. Price—May be about

$10 per share.

Price—$2.12^2

(par $1).

Graham, Ross & Co., Inc.
& Co., New York.

per

share.

common

Proceeds—To

Underwriter—Graham, Ross

★ Wilson Organic Chemicals, Inc. (N. J.)
Dec. 14 (letter of notification) 15,000 shares of
(par $1).

Price—2.12V2

per

share.

Underwriter—Graham,

&

company distributes anhy¬
application of nitrogen fer¬
Underwriter
Lee Higginson
Coro.,
Offering—Expected early in January.

ammonia

Co.,

New

stock.

par

Proceeds—To

ment program

for notes and $2

share for

per

finance

production and develop¬
Business—Electronic equipment.

in 1954.

—

•

Chicago Great Western Ry.
Dec. 3 company sought ICC
permission to issue and sel>
$6,000,000 of collateral trust bonds due Nov.
1, 1978

through

a negotiated sale. Price—To be announced later
Proceeds—To repay bank loans and for
capital im¬
provements. Bids—Halsey, Stuart & Co. Inc. on Dec. 14

asked
be

ICC

first

to

reject

company's request and
competitive bidding.

offered at

that

bond?;

Chicago, Milwaukee, St. Paul &
Pacific RR.

(12/17)

Bids will be received by the
company up to noon
on Dec. 17 at Room
744, Union Station

(CST)
Bldg., Chicago £>'
111., for the purchase from it of $7,650,000 equipment trusv
certificates, series RR, to be dated Jan. 1, 1954, and ma¬
ture

in

each.

30

equal

semi-annual

instalments of $255,OGt
Halsey, Stuart & Co. Inc.; Salo¬
Hutzler; Kidder, Peabody & Co.: Blair

Probable bidders:
Bros.

mon

&

Rollins & Co. Inc.

12 it

reported company, a subsidiary of Colo¬
Co., plans issuance and sale of abotm
$20,000,000 of common stock. Proceeds—For exploratia
was

rado Interstate Gas

and

development.

New York.

★ Winchester Industries, Inc.
Dec. 7 (letter of notification) $31,000 of 6% five-year
convertible notes and 55,347 shares of common stock
Price—At

direct

a

Colorado Oil & Gas Co.

York.

(par $1).

as

tilizer to the soil.
New York.

Nov.
common

Proceeds—To

Ross

Proceeds—For expansion program. Busi¬

ness—Through subsidiaries,

additional

For

underwriter.

Okla.

Co., Ogden, Utah
3,000,000 shares of com¬
Price—5 cents per share.

(letter of notification)

stock

mon

stock

Nov. 24 filed 209,000 shares of common stock (par $1), of
■which 134.000 shares are for the account of selling stock¬

■

Dec. 9 it

leases, drill well, etc.
Snoose

-

★ Chemical Enterprises, Inc.

1,125,000 addi¬
shares of common stock and private sale of $55,000,000 first mortgage bonds to be used to build a 1,030
mile crude oil pipeline.
Underwriters—White, Weld &

tional

—

None.

*

To

—

stock
(par 50
$50 debenture and

Nov. 20 filed

^ Scott Paper Co., Chester, Pa.

Co., Inc. and Kidder, Peabody
(jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.
and Bear, Stearns & Co.
(jointly); Harriman Ripley

15,

cents) to be offered in units of

West Coast Pipe Line Co.,

11

Probable bidders: Blyth &
& Co.

revised.

Dec.

Dallas, Tex.

Nov. 20 filed $29,000,000 12-year 6% debentures due Dec.

ment.

Production Co.

Saint Anne's Oil

Price

10£j*

•A

West Coast Pipe Line Co.,

50,000 shares of common
share. Proceeds—For new

April 23 filed 165,000 shares of

(2469)

Underwriter—Union Securities CortfC

Offering—Expected early next

year.

Commonwealth Edison Co.
Nov.

25

Northern

Illinois

incorporated in Illinois
Edison's

Public

to

Service

Gas

Co., a subsidiary, wa? •
acquire the gas properties of

Company

division.

This

unr;

plans

to issue and sell $60,000,000 of
mortgage bond
early in 1954. Underwriters
The First Boston
Corp.
Halsey, Stuart & Co. Inc., and Glore, Forgan & Co. *»

•

—

Texo Oil Corp., Ardmore, Okla.
Nov. 23 (letter of notification) 85,320 shares of common
stock

(par

cents

per

ously

reported

cent). Price—At market (estimated at 45
share).
Proceeds — To selling stockholders
•who acquired shares as result of a previous underwrit¬
ing (not to Harris T. Smith, Vice-President, as errone¬
one

last

Reid

10

200,

filed

in

these

columns).

Under¬

Co., New York, and Alex¬
Co., Newark, N. J., among others.

&

Theatre
Dec.

week

Securities

writers—Farrell
ander

Inc., N. Y. City
shares

5.000

of

preferred stock (no par)
and 15.000 shares of common stock (par one cent) to be
offered in units of 25 shares of preferred and 75 shares
of

Offices—Winchester, Va., and 36 River Edge Road, River
Edge, N. J. Underwriter—None.

stock.

common

Wyoming Oil Co., Denver, Colo.

ceeds

For drilling expenses.
Office — 301 Kittredge
Bldg., Denver, Colo. Underwriter — Robert W. Wilson,
Denver, Colo.
—

Wyoming Oil & Exploration Co., Las Vegas, Nev.
Dec. 7 filed 300,000 shares of capital stock (par $1. Price
—To be supplied by amendment.
Proceeds—To pay for
leases and drilling.
Business—Oil and gas exploration.
Underwriter—None.

13

mon

stock

Co., asked Federal Power Commission to authorize

Tellier &

struction

Co., Jersey City, N. J.

*until after Jan.
•

Offering—Not expected

1, 1954.

Titanium Ores Corp.,

Silver Spring, Md.

Nov. 27 (letter of notification) 300,000
-stock (par 10 cents).
Price—$1 per
IFor

equipment.

new

.Spring,

shares of common
share.\ Proceeds—
Office—8007 Takoma Ave., Silver

Underwriter

Md.

—

Securities,

Mitchell

Inc.,

Baltimore, Md.
"•

25

stock

mon

Park, N.i. (12/18)
2,400,000 shares of com¬

(letter of notification)

one cent). Price—12V2 cents per share.
working capital. Underwriter—Tellier &

(par

Proceeds—For

<•

Wire Rope Corp.,

Union

Mo.
Nov.

27

-Mahlon

Kansas City,

be

21,000

supplied

-Brooks & Co., Inc.,

New York.

United Merchants & Manufacturers, Inc.
7

filed

Price—At
,

574,321

the

shares of

market

(either

common
on

Juilliard

None,

shares of United

New York

or

★ Vanadium-Alloys Steel Co.
9 (letter of notification)
(no

ployees.

be offered

Stock Exchange

accepted

Proceeds

to

3,820

Underwriter

—

b,v

shares

of

for subscription

capital

by

em¬

employees

None.

Office

—

on the
preceding the day the offer

(around $22.50 per share).
Latrobe, Pa. Underwriter —

None.

new

ers

l-for-10

Washington Water Power Co.

proposed merger into company of Puget Sound Pow¬
Co. orn the basis of one-half share of pre¬
and one-rialf share of common for each Puget
Sound common share to holders who do not elect to re¬
the

& Light

ferred

ceive cash at

on

raise

the rate of $27 per share. Underwriter—

None.




a

Union

be

may

basis

it

24

early
an

in

about

$4,-

offering to stockhold¬

sufficient

of

1954

common

stock

to

estimated

$3,000,000. Proceeds—For
Underwriters—For common stock

Securities

Previous bond issue

Atlantic

sell

bonds and make

additional

an

and

construction program.

Corp.

was

and Smith, Barney
placed privately.

-

of

stock

common

per

.

share.

(par

$1)

Proceeds—To

is

two

contemplated.

Price—Cci-

selling stockholders.

Un¬

derwriter—Shields & Co., New York.

early next
nature and

reported

that proposed

debenture issue

will be around $60,000,000. The exact
timing of the financing are still to be deter¬
year

head

may

plans to issue and se.B
$10,000,000 of first mortgage and collateral

Registration—Expected

group.

this

Halsey, Stuart & Co. Inc.; The Firs?

Corp. and Blyth & Co.,
Weld & Co. and Shields & Co.

&

Ohio

Inc.

(jointly);

White

(jointly); Union Securi¬
Corp.; Lehman Brothers; Morgan Stanley & Ct>„
Kuhn, Loeb & Co. and Salomon Bros. & Hutzler (jointly V'
W. C. Langley & Co.
J
*
ties

Eastern Utilities Associates
Feb. 20 it
000

was

collateral

announced company

trust

plans sale of $7,000

-

mortgage bonds due 1973. Under
writers—To be determined
by competitive bidding. Piol able bidders:
Halsey, Stuart & Co. Inc.; Estabrook
Co. and Stone & Webster
Securities Corp. (jointly); TL^
First Boston Corp.,
White, Weld & Co. and Kidder, Pesbody & Co. (jointly); Glore, Forgan & Co. and Harrimar
Ripley & Co. Inc. (jointly).
¬

Fulton National
4

Bank, Atlanta, Ga.

stockholders

of

record

Dec.

1

were

given th"

before Dec. 31 for
50,000 share:
capital stock (par $10) on
the, basis of on? *
new share for each four
shares held. Price—$27.50
pe«share. Proceeds—For
capital and surplus.* Underwriters
—The
on

or

of additional

Robinson-Humphrey Co., Inc., Atlanta,
Equitable Securities Corp., Nashville, Tenn.
• Gas Service Co.,

Kansas City,

Dec. 11 Cities Service Co.

Baltimore

Un¬

bidding

Boston

right to subscribe

Proceeds—To be used to help pay for a $100,000,000 construction program. Underwriters—Smith, Barney
Co.

announced company

Proceeds—For construction program..
derwriters—To be determined by
competitive

Dec.

Refining Co.
was

was

Probable bidders:

&

mined.

was

Ga., anal

Mo.

authorized by the SEC tr*

sell

RR.

1,500,000 shares of its holdings of Gas Service C
stock
through negotiated sale, rather tha<
through competitive bidding. Invitations have been is¬
.

Nov. 9 it

is planning to issue $60,000,000 of new collateral trust 4% bonds to mature in
l-to-16 years in exchange for a like amount of collateral
trust bonds due Jan. 1, 1965 now held by the Recon¬
struction Finance Corporation. The latter in turn plans
was

to offer the

reported

new

company

bonds to

a

group of investment houses

including Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane; Alex.
Brown & Sons; and others.
The bankers would then
offer the bonds to the public.
•

Central

Illinois

Electric &

Gas

Co.

mortgage

bonds

fthis is in addition to

cumulative preferred

registration

stock, series D,

statement

filed

with

15,000

par

SEC

shares

of

$100, covered
on

Dec.

9).

Proceeds—To repay bank loans and for new construction.
be determined by competitive bid¬

Underwriters—To

ding. Probable bidders: Halsey, Stuart & Co. Inc.; Stone
& Webster Securities Corp.;
Kidder, Peabody & Co. and
White, Weld & Co. (jointly).
1
Central Maine Power Co.

Oct.

7

it

common

sued to various groups to advise Cities

Houston

curities Corp.;

Lehman Brothers; Smith, Barney &
Co.;
Kidder, Peabody & Co.; Equitable Securities Corp.

reported company plans sale during the
1954 of $10,000,000 common stock after
distribution by New England Public Service Co. of its
holdings of Central Maine Power Co. common stock.

Power

Co.

Aug. 6, officials of Blyth & Co., Inc. and Bankers Trust
Co., New York, testified before the Federal Power Com¬
mission

that this company plans to raise
$184,550,00(1
finance construction of three hydro-electric
projects
Snake River, Idaho. If approved, the
financing will
consist of $105,000,000 of bonds
through 1962; $27,400,00ff

to

on

of

preferred stock; and $52,150,000 of common stock.
Throughout the financing period, the company would!
borrow and repay $29,000,000 of short-term
loans. Final
financing details would depend on market conditions. *
•

Illinois Central RR.

was

first quarter of

Service Co.

Lighting & Power Co.

Sept. 25 it was reported company plans some new fi¬
nancing to provide funds for its construction program-..
Bidders for about $25,000,000 of bonds
may include Hal¬
sey, Stuart & Co. Inc.; Kuhn, Loeb &
Co.; Union Se¬

Idaho

Dec. 9 it was announced company intends to offer and
sell around the middle of 1954 an issue of $4,000,000 first

by

May 7 filed 1,088,940 shares of $1.28 cumulative con¬
vertible preferred stock (par $25) and 1,088,939 shares of
common stock (no par) to be issued in connection with
er

issue

—

Price—Equivalent to the last sale price

American
is

par)

(par $100), the latter to be sold to parent.

plans to

pany

Stock

Merchants stock for each

preferred share.
Statement effective Oct. 26.
common

Dec.

;stock

a

week.

or

'basis of 6V2

'

the

con¬

Atlantic City Electric Co.
Oct. 5 B. L. England, President, announced that the com¬

(par $1).

stock

through secondary distributions). Proceeds
To a group of selling stockholders who will receive
^fche said shares in exchange for outstanding preferred
--and common stock of A. D. Juilliard & Co., Inc., on the
lExchange

of

stock

common

&

•Oct.

10 company, a

Nov.

shares of capital stock (par $5).
by amendment. Proceeds — To
G. Ensinger, President.
Underwriter — P. W.
filed

Pipe Line Co.
subsidiary of American Natural Gas

$130,000,000 pipe line, to be financed
through the issuance of $97,500,000 of first mortgage
bonds, $12,000,000 of interim notes convertible to pre¬
ferred stock at option of company, and $20,500,000 of

•

(12/21)

Price—To

Nov.

Co.

•Co., Jersey City, N. J.

& Co
n

Continental Transportation
Lines, Inc. (12/21)
Dec. 2 it was announced issue and sale of
263,775 share?

trust bonds.

American Louisiana

000,000 of

Trad Television Corp., Asbury

Nov.

& Co., and Estabrook
privately.

•

in 1954 about

Prospective Offerings

2.000,000 shares of com¬
cent). Price—15 cents per share.
Proceeds
For drilling, surveys and working capital.
•Office—354 Main St., Grand Junction, Colo. Underwriter
one

—

Co.; Chas. W. Scranton

Bonds may be placed

Oct. 5 it

(letter of notification)

(par

&

Delaware Power & Light Co.

per unit. Proceeds—For
Underwriter—None.

Three States Uranium Corp.
Nov.

Connecticut Light & Power Co.
v
7 it was reported
company plans to raise between
$10,000,000 and $20,000,000 in 1954 from sale of bond:,
and stock.
Underwriters—For common stock: Putnar

v

Price—$2,500

working capital, etc.

•

Dec.

Nov. 3 (letter of notification) 5,000,000 shares of common
stock (par five cents). Price—5^k cents per share. Pro¬

(12/21)
applied to ICC for authority to issue
$15,000,000 of consolidated mortgage bonus*.

Dec.

14 company

and

sell

Continued

on

page

U#

\

110

(2470)

The Commercial and Financial Chronicle

Continued

from

Otter Tail Power Co.

109

page

June

series F, due Jan.

to

(EST)

noon

Kiendl,

&

15

Broad

sell

New

St.,

share.

of

000

United

Boston Corp. and

Nov. 12 it
an

Probable The First

Blyth & Co., Inc. (jointly).

reported that the company may issue and

was

issue of bonds late in

Dec.

1, 1955, and for general corporate pur¬
poses. Underwriters—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co. and Salomon
Bros. & Hutzler (jointly).

April 18 it

additional shares of
rate of four

McBride Oil & Gas Corp.,
Nov.

it

8

announced

was

a

bottling

it

Houston, Tex.

Sept. 28 it
of

$4,000,000

ing

imported

States

the

Holland.

or

ceiver

from

United

Italian

re¬

"There is
mental

cabinetry

a

small 1 KW

station

in

and

studios

included,

presently

are

being

planned for the various cities.

One

receivers outstanding.
two larger companies are

or

color

on

grams

first

planned

television

located

to

The

on

all

cover

transmitter

Vetleberg

ers

an

is

Mountain

right outside of Zurich and
about

cov¬

with a population of
million-and-a-half people.

area

a

Power is approximately 500 watts.
One studio is presently
being used
for

all

they
is

a

and
no

of

are,

sional

their

of

films

as

vision

have

using occa¬
Equipment
Swiss, English

well.
of

American.

quence.

So

far

there

manufacturers

receivers

Most

been

and

course,

mixture

Swiss

broadcasts

of

of

of

any

the

not

expected

any

develop television
more money is

"This nation is
the
one

CCIR
small

using

broadcasting

European
studio

system

in

uses

Copenhagen,

borrowed

including Iconoscope
10KW
a

tarnsmitter
location

new

on

from

500-watt transmitter.

a

station

The

equipment

cameras.

A

planned

in

is

well

as

as

new

studios.

Broadcasting is presently
limited to two hours per
night,
five days per week, on European
Channel 4.
duction

There is

no

of television

local pro¬

receivers

few

consequence.

been

imported. Programs
on

conse¬

receivers

of

have

are pre¬

film.

imported.

ond when the receivers

"This

old,

country
500-watt

borrowed

per sec¬

flicker

which, of

turned

are

in brilliance, there is

up

slight

a

does not

course,

exist in the United States because
of

the

higher

frequency

frames

per

count,

European

ceiver

second.

of

this

On

television

manufacturers

They

do

30
ac¬
re¬

not

re¬

has

an

experi¬

transmitter

equipment.

in the U. S. A.
1947

or

mercials.
is

time in 1946

some

with, of

tion that there

the

course,

today

are

no com¬

likely European television will
a

much

that

in

the

there

is

slower

growth than

United

Also

States.

Europe

large middle class in
who can buy these re¬

ceivers.

Therefore, it is logical to
that

no

from

an

economic

television

to

become

a

generally

and

used

The

communication than in the United

form

of

entertainment

It

receiver

the

SECURITY ANALYST

must

and

be

PORTFOLIO ANALYSIS

★

represents

★

REPORTS

SERVICE CUSTOMERS' MEN

REASONABLE SALARY

PLUS COMMISSION.

date

Spain

there is

no

television

Ireland,
although East Germany does have
Portugal

or

station in Berlin.

stations

in

or

There

Moscow

are

now

plans to

to

be

sold

Peace

the

to

public.

natural

a

River field

to

gas

Proceeds—To

pipe line from the

western

Washington and

Underwriter—Eastman, Dillon & Co., New York.

western

Development Co. Sinclair owns 384,860 share#
(52.85%) of the stock of each of the other two companies.
Underwriter—May be Union Securities Corp., New York,

tion

geographically in this respect,

expect to have it in June, 1954. /
"The

French

are

Coronation,

television

network

interchange of pro¬
between
England
and

consisting
principal

of

planning

an

on

France

and

British

a

receiver

rebroadcasting

it

in
on

one

in

three
to

be

and

Lenin¬

grad, but it is understood they are
using very small size picture tubes
their

receivers.

The

largest

25 Park

anywhere in Europe is in England
and
one

of

television

receivers

Scotland, where there is but
channel

represented

by

a

v

a

Morocco

stations,

the

located

in

Casablanca.

It will operate on the
819 line French system but it will
be sometime before it is in
opera¬

the French 819 line system.
(The
British are using a 405 line sys¬

tion.

tem.)

vision

in

future

and

I "There

day of

is considerable talk to¬
overall European tele¬

an

vision

network.

It

had

been

thought this could be inaugurated
by Christmas of 1953. Technical
difficulties

have

the Swiss who

intervened, and
in a key posi¬

are

"Turkey has also planned tele¬
the

not

far

too

there

distant

is

presently an
experimental station in operation
at

the

Technical

University

which

operated

Istanbul

low

very

is

power

the

on

from

page

8

Dealer-Broker Investment

Recommendations & Literature
Owens-Illinois

Glass

Company—Analysis—William

Blair

&

Company, 135 South La Salle Street, Chicago 3, 111.
Pabco Products,

Inc.—Bulletin—Stanley Heller & Co., 30 Pine

Street, New York 5, N. Y.
Riverside

Cement

Lerner &

Company—Analysis—ask for report T-31—
Co./ 10 Post Office Square, Boston 9, Mass.

Robertshaw-Fulton Controls Cgjnpany

—

Bulletin

—

Gartley &

Associates, 68 William Street, New York 5, N. Y.
St. Lawrence Corporation Limited
curities

St.

Analysis — Dominion Se¬
Corporation, 40 Exchange Place, New York 5, N. Y.

Lawrenc^Coyporation—Brief

120
are

—

analysis—Sutro Bros. & Co.,

Broadway, New York 5, N. Y. Also in the
brief

same bulletin
analyses of Tennessee Corporation and Reynolds

Metals Co.

If

New York

.

4,|N. Y.
I

United

States

Air

'

Conditioning

Corp.—Card

memorandum—

Butler, Candee & Moser, 44 Wall Street, New York 5, N. Y.
U.

S.

Vitamin

Mason

of

Corporation—Report—Loewi

Street; Milwaukee 2, Wis.

Wisconsin

Bonds.

Public

Service

& Co., 225 East
Also available are analyses
and
Municipal

Corporation

|

Weyerhaeuser Timber Company—Analysis—Ferris & Company

Washington Building, Washington 5, D. C.
Whiting

Corporation—Analysis—H.
Street, New" York- 4, N. Y.

Hentz

&

Co.,

60

of
on

CCIR

system."

also

number




company

Westpan Hydrocarbon Co.
July 1 SEC granted Sinclair Oil Corp. 1 an extension of
six months from June 21, 1953, in which to dispose of its
holdings of common stock in Westpan and the South¬

in Eu¬

pay

1210, Commercial & Financial
Chronicle,

Place, New York 7, N. Y.

that

Shatterproof Glass—Circular—Peter Barken Co., 32 Broadway,

"To

in

for

Box J

Oregon.

was

less

average month's pay in
United States,, it represents

almost eight month's

a

MARKET LETTERS

stock

common

finance construction of
Canadian

"At the time of the

an

rope.

MATURE JUDG¬

announced

was

excep¬

Without these stimuli it

have

than

★

it

$71,000,000
$24,440,000 in sub¬
ordinated long-term debentures and 4,100,000 shares of

Continued

speaking, the pro¬
gramming
in
Europe today
is
about equivalent to what it was

vision

REGISTERED REPRESENTATIVE

14

issue $29,000,000 in l-to-51/2-year serial notes;
in 20-year, first mortgage
bonds; and

"Generally

kept in mind
that, whereas the cost of a tele¬

POSITION WANTED

★

West Coast Transmission Co.

therefore be made with

can

less expensive components.

States.

MENT

jointly); The First Boston Corp. and Blyth & Co.,
(jointly); Kidder, Peabody & Co.; Salomon Bros. &
Previous common stock offering (in 1952) was
made to stockholders, without underwriting.

Hutzler.

picture

frequency all

Europe is 25 frames

stock and

Co.

&

France effected by picking up the

Sceite

standpoint, even with taxes, it
will take considerably longer for

Norway
mental

TV

"Since the frame
over

are

tele¬

European

assume

A

any

sented

Overall

quire the high accelerating volt¬
age that we do for our receivers.

Denmark

experimentally
on the air two hours a
day, three
days a week. It is one of five
Switerland.

Pro¬

mostly

filmed and broadcast only a very
few hours per week.

station in Zurich is

stations

television.

spasmodic,

are

Switzerland

"Switzerland's

is

offer around

common

or

plurality of stations operated by
Corpora¬

grams

but

few

very

May

the British Broadcasting
tion.

there

experi¬

Stockholm

search

future

near

be

it

Offering—

Inc.

and

appropriated.

expected that in the
will

and

Underwriter— Merrill

Inc.; White, Weld & Co. and Stone & Webster Securities
Corp. (jointly); Union Securities Corp. and Smith, Bar¬
ney & Co. (jointly); Lehman Brothers and Bear. Stearns

Underwriters—May be

will be taken until

considering manufacturing sets in
the near future. One large com¬
pany
is doing considerable re¬

programs

issuance

share.

per

Electric
common

June, 1954, approximately $16,000,000 of bonds.
Underwriters—For bonds, to be determined by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.

by

further steps to

is rather poor
when judged by U. S. standards.
"Programs in Italy for the mo¬
ment originate in Milan and are
exclusively films. However, it is
live

plans

company

bonds.

Sweden

be¬

are

in

Oct.

Norwegian Government has used
up the money it had allotted to

13

glass blanks

Price—$28.25

of

This is in addition to ; the
at competitive bidding on

be offered

March, 1954, about 225,000 shares of

competitive bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner

Status oi Television in Europe
the

reported

was

about

Corp.

authorized

shares

Utah Power & Light Co.
13 it was reported company plans to

Westpan Hydrocarbon Co. below.

determined

Gas

has

10,000

Nov.

was

TV,

of

21.

sell

to

Lynch, Pierce, Fenner & Beane, New York.

Suburban Electric Co.
sale

Co.

The 10,000 shares have all been placed.

Dillon, Read & Co., Inc., New York. Offering—
Expected late in January or early February, 1954.

See Commonwealth Edison Co. above.

most

United

Dec.

stock:

that

Northern Illinois Gas Co.

page

Share

of

100,000 shares to

is

SEC

announced

was

&

stock

272,000 additional shares of common stock (with a 14day standby); also $12,000,000 of first mortgage bonds
(which may be placed privately).
Underwriter—For

early registration is ex¬
of approximately $5,000,000 of common stock.
Price—Expected to be about $2 per share. Proceeds—
For expansion program.
Underwriter— Bryan & Co.,
Houston, Tex.

from

reported company

it

14

Bond

Southwestern Public Service Co.
Dec. 1 it was reported
company plans to issue and sell
to its common stockholders on a l-for-14 basis
about

Price—$5

new

Dec.

Southwestern Development Co.

pected

Continued

8

See

share held.

share. Prcoeeds — To help finance
plant. Underwriter—None.
per

parent,
of Pacific's outstanding stock, tOffering—
until the early part of 1954.

was

17.

if United Gas Corp.

Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Blyth &
Co., Inc., and Kidder, Peabody &
Co. (jointly).

stock to its stockholders at

common

shares for each

new

bids to be invitecf by Dec.

Probable bidders:

will offer 400,000

company

and

bidding.

Los Angeles, Calif.

announced

was

issue

additional shares of
Price—At par (100 per

reported company may issue and sell in
March, 1954, about $20,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive

$24,610,000 Atlanta, Knoxville & Cincinnati Division 4%
bonds due May

Maier Brewing Co.,

by competitive bidding. Probable bidders: Leh¬
Brothers; Goldman, Sachs & Co.; Kidder, Peabody
& Co.; Merrill Lynch, Pierce, Fenner & Beane.
Bids—
Expected to be received no earlier than Dec. 21, with

★ Southern Natural Gas Co.

Proceeds—To retire

1954.

plans to

company

(12/21)

man

1,004,603

l-for-7 basis.

a

on

United Gas Corp.

mined

planning to float an
issue of $15,000,000 first mortgage bonds, due
1984, early
next year.
Proceeds—For financing, in part, a $17,000,000 electric generating plant to be constructed in
Denver,
Colo.
Underwriters—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.; The First Boston Corp.; Harris, Hall
& Co. Inc.; Harriman Ripley &
Co., Inc. and Union Se¬
curities Corp. (jointly); Lehman
Brothers; Kidder, Peabody & Co.; Blyth & Co., Inc. and Smith, Barney & Co.
(jointly).

Louisville & Nashville RR.
sell

if

Dec. 14 Electric Bond & Share Co. sought SEC
authority
to issue and sell 100,000 shares of its
holdings of United
Gas Corp. common stock.
Underwriters—To be deter¬

Public Service Co. of Colorado
Oct. 13 it

City Power & Light Co. (1/12)
Dec. 12 company announced plans to issue and sell 70,000
shares of (par $100) and 225,460 shares of common stock
(no par). Proceeds—To repay bank loans and for new
construction. Registration — Tentatively expected to be
—

stockholders

91.25%

owns

Kansas

Underwriters

its

Not expected

approximately 15 years. Underwriters—The First Boston
Corp. and Morgan Stanley & Co., both of New York.

filed about Dec. 21.

Beane and Union Securities Corp.
(jointly); Lehman
Brothers; Kidder, Peabody & Co.

maximum

Proceeds—To repay bank loans.
Underwriter—
American Telephone & Telegraph Co.,

None.

announced bank plans to offer $100,000,States dollar bonds with a maturity of

was

to

announced

was

capital stock

ir International Bank for Reconstruction and
Development ("World Bank")
(1/12)
Dec. 10 it

a

Pacific Telephone & Telegraph Co.

July 2 it

at office of Davis, Polk,

Dec. 21

on

issue

$4,000,000 unsecured promissory notes to banks, the
to provide funds to temporarily finance the
company's 1953 and 1954 construction programs prior to
arranging for long-term financing. Underwriters—May
be Glore, Forgan & Co. and Kalman & Co.

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co., Harriman
Ripley & Co. Inc., and Union Securities Corp (jointly);
Morgan Stanley & Co. Bids—Expected to be received

Wardwell, Sunderland
York, N. Y.

&

authorized company to

proceeds

be determined by competitive

up

25 FPC

of

Proceeds—To be applied to¬
ward redemption on Feb. 1, 1954 of the outstanding
$34,743,000 4%% debentures due 1966. Underwriters—To
1, 1984.

Thursday, December 17, 1953

...

Beaver

Number 5282

Volume ITS

.

The Commercial and Financial Chronicle

.

.

(2471)
of to finance, in part, completion of & Hess; Johnston, Lemon &
Co.;
Co.'s
30- the company's current construc¬ 'Lee Higginson
Corp.; Piper, Jaffirst mortgage bonds brought tion program or new underground fray & Hopwood; Prescott
Shep-

the

offering

year,

out late

The

$20,000,000

of

Philadelphia

Electric

successful

issuer

paid the
a 3Vs %

group

price of 99.017 for

a

facilities

storage

last week.

possible
ness

plant

or

ditions

well

as

acquisition of

facilities

busi¬

and

indicated yield of 3.15%. How¬

Investment

banking firms which
ever, with only bits and pieces to
of underwriting
be cleaned up between now and
securities are coming the
corporate
end of the month, the indica¬
down to the end of the year with
tions are that the issue will be

make

their

decks cleared and ready for

what

early part of 1954
bring along.

may

Meanwhile, it
municipal

underwriters

tial' volume

of

could

substan¬

a

unsold

issues

on

shelves/This week, with its

large housing loan and the Indiana
Road

Commission's

$280,000,000

offering,

far

Among

however, the situation is quite dif¬
ferent
in

from

sight

Right

until

up

brought

what

weeks

of

time

the

General

be

appeared to

couple

a

ago.

that

seemed

end with sizable

Several

Corp's

the

would

year

inventories.

substantial

issues

had

backed up rather badly and spon¬

&

include — HornWeeks; Lazard Freres

group

blower

&

the

sults

DIVIDEND
of

declared

dividend

the

$5.00

Co.

would

probably

December

ness

will

remain

reported likely to amount to $90,-

back

of

the

has

last

been

since

stove

pany,

statement

March,

on

the

sent

for

the

on

the

DIVIDEND
The

com¬

its

out

annual

that

the

management

market.

gratifying

were

nationwide

demand

the

But

ON

of

Board

CAPITAL

1953.

C.

14,

once

in the

Checks

Directors

The

it

declared

a

dividend of 15 cents per share
Capital Shares of the Corporation, pay¬
able January 5th, 1954 to stockholders of record
on

the

the

at

of

close

business
SAMUEL

December

15,

a

issues

consequence

that

been

lagging

badly

were

has

ruled

in the

in

market

the seasoned

has

company

sold

not

$25,000,000

105 xk

as

been

in

of

20-year

time

some

back,

J

December
M.

21,

FOX,

DIVIDEND
At

dend

of

share and
dividend of 25$ per share
25^

per

the

on

record

30,

the

at

close

Investors
the

slow

were

side

in

reported

000

bit

on

up

a

to

warming

of

NO.

•

*

On

the
to

to

these

of

the

the

from

share.
the

of

business

7,

A

1953

SHARES

Wall

special

seventy

corporation,

be

may

day

December

on

MICHEL,

and

Treasurer.

share

the

Jan. 15,

follows:

1954,

as

Rate

Per
Share

2-1-54

$1.25

2-1-54

$1.25

stockholders of

record

December

ness

Fund Series

2-1-54

$1.25 Series

2-1-54

$0,311/*
$0.31V4

5% Series

has

Fund Series

and

Preferred Stock,

been

$25 par value
$1.25 Sinking

at the

1953

to

of busi¬

close

18, 1953. It is expected that

approximately
special

$100 par value

Corporation's

capital stock payable December 28,

dollar and sixteen and
per share of this

one

cents

($1,161)

dividend

will

Directors

of

fifteen

December

MANUFACTURING

be

designated

as

a

have

also

declared

a

Secretary

B. c. Reynolds,

divi¬

cents

11,

S.

STOUT,

Secretary

1953.

COMPANY

Framingham, Mass.

INTERNATIONAL

EXTRA DIVIDEND
"A" Common and

SENECA

Voting Common:

share

on

the

"A"

Common

MACHINE

FALLS

SHOE

COMPANY

An extra dividend of 20 cents per

and

Common Stock Dividend

Voting Common Stocks will be paid
On

1954,. to stockholders of

15,

A. B.

December

Seneca

record Dec. 21, 1953.

75,-

clared

Newhall, Treasurer

the

of

stock

common

1954

109IH YEAR

used,

Machine

dividend

a

payable
of

de¬

share

per

January

record

COMPANY

of

Directors

Company

$.10

stockholders

to

the

1953

9,

Falls

St. Louis

on

15,

January

171st

*

1954.

5,

EDWIN
President

R.
&

SMITH
Treasurer

CONSECUTIVE DIVIDEND

NOTICE

LATHES

OF

LO-SWING

Common Stock

•

SAVING

LABOR

AND

SPECIAL MACHINE TOOLS

A

quarterly dividend of 60£ per

share

pfflUPMORRIS

FOR

to

record

5% Sinking

dollar

one

per

on

MANUFACTURERS

CALL

this

payable
of

York

New
of

($1.70)

this

T
DIVIDEND

regu¬

of

stockholders

CORPORATION

Street,

dividend

cents

declared

general corporate funds of
and

Stock

(15c) per share payable
January 15, 1954 to stockholders of record at
the close of business December 31, 1953.

shares will be added

company

1953, the Board

9,

Preferred

"capital gain dividend," pursuant to the
provisions of the Internal Revenue Code.

Jan.

of

Dec.

Pay-

one-tenth
President

-

sale

NOTICE

lar quarterly dividends on

the close of

at

H. B. Pierce, Secretary

14

145

CLIFFORD W.

The stock is

Son.

i

de'

were

business December 18, 1953.

LIMITED

1953.

but

Natural

per

Treasurer.

DIVIDEND

Date

meeting of the Board of Directors of
Limited, held this day, a dividend
of Seventeen and
One-Half Cents
(17i/zc) per
share (in Canadian Funds)
was declared pay¬
able on
January 29,
1954, to shareholders of

made

Dallas Rupe &

KEMP,

FINANCE CORPORATION

stock of Texas

common

M.

•••••••••••

extra

an

stock

common

stockholders of record

Mines

Offering of 209,000 shares of $1

Proceeds
Slow

WALLACE

Treasurer

December 9, 1953

1953.

a

Dome

Nat. Gasoline Stock

priced at $11

Electrics

Common

COMMON DIVIDEND No. 310

NATIONAL
MINES

The Electric Storage Battery

payable

January 1,

on

1954 to stockholders of record

company
213th

at the

Consecutive

GD

Quarterly Dividend

close of business Decem¬

ber 15, 1953, was

declared by

the Board of Directors.

The Directors have declared from the

ANDREW W. JOHNSON

Accumulated Surplus of the Company a

Vice-President and Treasurer

year-end dividend for the year 1953 of
fifty cents ($.50) per share on the
Common Stock, payable December 28,

109th
COMMON

1953, to stockholders of record

-■

close

of

business

on

at

December

H.

C.

1953

December 1,

the

14,

Dividend Notice

1953. Checks will be mailed.

STOCK

ALLAN,

Secretary and Treasurer

DIVIDEND

Philadelphia, December 4, 1953.

A

quarterly dividend of 75$ per share
declared

been

has

Stock of the
uary

□HD

Philip Morris & Co. Ltd., Inc.
Our Institutional SHARE OWNERS

CUMULATIVE PREFERRED STOCK

The
Shown here is The
American Insurance

Company's home
office

building in

Newark, New Jersey.
A

Philip Morris Share

Owner, the 107-yearold American is
one

of the

the

the 4%
Series and $0,975 per share on
the 3.90% Series have been de¬
clared
1954
close

share

payable

to

business

of

In common

with other insurance

companies, American

supplementsits
revenue

a

diversified list of

carefully chosen
bonds, preferred
stocks and
common

stocks.




at

($5.00 Par)

a

regular quarterly dividend
$0.75

1954

share has been
declared payable January 15,
to

holders of record
on

at

the

December

at

to

shareholders of record

the close of

2,1954.

business, January

Sec.-Treat.

dividend of

a

(25c)

per

Common Stock

of

was

give share

established

owners on a

as

may

reduced ^personal

in

order

to

cash basis such

be

gained from

income tax rates in

1954-

Charles R Hart

New

York,

New

York,

October

29,

1953

DYNAM ICS
CO

445

R

PO

Pork Ave.,

RATION

New York 22, N. Y.

EB

CL

ED

twenty-five
on the

share

($1 Par Value)

Company, and
fifty cents (50c)

a

Value)

dividend
share

per

the Common Stock

on

(no Par

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
not

yet

Common

the

Value)

GENERAL

(SI

Stock

dividend of twenty cents
per

share

(no

Par

of the Company, and

Par

on

I©!

December 3, 1933
^IC

"4/R

I®

a

(20c)

the Common Stock

Value)

not

yet

ex¬

changed under the Company's
Exchange Instructions dated
May 19, 1953. These dividends
are payable
December 30, 1953
to

stockholders of record at the

close

of

business

December

18, 1953.

December 16, 1953
New York, N. Y.

clared

of the

1953

DIVISIONS

L. L. HAWK

L. G. HANSON, Treasurer

The Board of Directors has de¬

of

1

31,1953.

TECHNICOLOR, Inc.

quarterly dividend for the last quarter

regular quarterly div¬

of

close of business

payment date for the regular

Secretary & Treasurer
The Board of Directors has

A

per

of record

cents

the

January

owners

1953.

Dividend Notice

idend of 30c per share on com¬
mon stock
payable January 15,

1954

by

investment in

on

Quarterly

1,

Common

close of business December 15,

at the

opportunity

declared

COMMON STOCK

fire-casualty

group.

February

holders of record

of

Bryan, Ohio

on

15, 1954.

largest

and best regarded

regular quarterly dividends

of $1.00 per

the

on

Corporation payable Jan¬

4, 1954 to share

This

The AR0 EQUIPMENT CORP.

de¬

both Preferred and Common stock are
pay¬
able February 1, 1954, to stockholders of record
at the close of
business
January 4,
1954.

Treasurer.

Bankers Offer Texas

value

have

on

meeting of the Board of Direc¬
held this day, a quarterly divi¬

a

dend

par

Corporation

371/*. cents per share on
stock.
They have also
621/2 cents per share
capital stock.
The dividends
of

able

since has been ruling around 97.

interval.
Phila.

the

this

of

capital

dividend

Preferred Stock,

Gasoline Corp. is being
today (Dec. 17) by an un¬
the initial offering prices, reflect¬ derwriting group headed by Carl
Loeb,
Rhoades
&
Co.
and
ing the general firmness which M.
had

swept away and not too far from

mailed.

on

of

dividend
a

1953.

DOME

debentures carrying a 2%% inter¬
est rate. The issue sold as high

sections of the market.

other

As

books

Directors
a

Preferred

of Directors declared

has

quarter-annual

year."

the money market since 1946 when

of the way, appeared to spill over

into

be

will

SCHEUERMANN,

J

,

^

dared

December

out

was

Transfer

the

declared

The Garlock

contemplating financing,
probably up to $60,000,000, "later

GM

that issue

this

of

The

clared

1953

JOSEPH

offering,

on

was

the

the

stock

Company, payable January 4, 1954,

SHARES

re¬

since

for

below,

share

Packing Company

tors,

GENERAL REALTY & UTILITIES

May 6. At that time it

stated

was

NOTICES

CORPORATION
business

date

per

PACIFIC

DIVIDEND

000,000.
This

$.45

capital

28,

open.

G.
December

At

go

issue of debentures

new

value

par

the

on

of

NOTICES

United Shoe Machinery Corporation

NOTICE

Directors

Co.; Wertheim & Co.; American

registration by the week-end

cover a

Co.

INC.

payable December 31, 1953 to
stockholders of record at the close of busi¬

Atlantic

that

R. Staats &

DIVIDEND

STOCKS,

corporation,

The

free

a

under¬

proceeded to turn these loose

sors

in

to

bankers

Motors

$300,000,000 debentures to market
it

Refining
into

meeting

corporate underwriters,

writing

the

of

& Co., Inc.; L. F. Rothschild
Co.; Shields & Co., and William

&

NOTICES

ALLIED

The Board

Co.; Crowell, Weedon & Co.;
Farwell, Chapman & Co.; Fridley

Refining

were

proxy

Is concerned.

members

AND

Securities Corp.; Bateman, Eichler

Atlantic

business

that end of the

as

in stride.

Indications

huge

latter

the

due out today, could tell the story
so

Other

TOBACCO

&

the

that

appears

wind up the year with

Toll

taken

the

ever

their

being sold by selling stockholders.

business

a

DIVIDEND

ad¬

to

existing gasoline plant
coupon. Four other bids were sub¬
facilities.
Any remaining funds
mitted, all specifying a 3%% in¬
will be added to working capital.
terest rate.
The company will receive none of
The winning group priced the the
proceeds from the sale of 134,bonds for reoffering at 99.517 for 000 shares of this
stock which is
an

ard

the

as

new

111

L. G. CLARK, Treasurer.

December 10, 1953.

112

The Commercial and Financial Chronicle..

(2472)

.Thursday, December 17,1953

ing

BUSINESS BUZZ

this governmental pro¬

on

V

gram.

drive petered out With
expiration of Title VI,

This

the
•

•

&

Perhaps if Mr. Spiegel could

A

Behind-the-Scene InterpreUlioni
from the Nation's

"Wlff

JljL I l/Vi/

Capital

gether

X fX fX

as

by

ance.

Bep. Carl T. Curtis (R., Nebr.)
is Chairman, will have a pro¬

this is

again,

There,

Congress opens, the social se¬
curity subcommittee, of which

in the observ¬

as

tional

to

the consideration
Administration

the

both

N.

On

Means

A. Reed

outlined

been

(R.,

r

It

the

of

whereby the
governments

this

does

program,

which have

reforms
of

passing,

security

the

old

pro¬

That

comers

This

of

has

fund

reserve

4be target

many

According
White

pension

soften

would

•debt which must be made good

mum

set

it

thing like
which

social
for

the

is

current

income)

required

to

use

minimum

a

of those

care

the-

to

newcomers

period of

after making all
deductions
from
return, then he
would forfeit his monthly pen¬

his income

tax

a

considerably

both

ance

in

to

plan would
for

long

go a

In

pro¬
reve¬

holders

of

However,

fund is viewed

fictitious,
not

so

if the

even

too

peole
it.

could

same

derstood that the
which

Mr.

tee has

new

Curtis's

age pensions.

un¬

The

program i

of

has

honored

even

if

actual

of

those

now

over

65

person

much

earned

on
so

the

income

much

pension

telling

an¬

holders

tax

If any
rolls

(excluding "un-

Ely Walker Dry Goods Com. & Pfds.

CIO

the

insist

all

now

reaching

whether

on

desirable

it

offer

to

maturing F & G's

a

Hence

billion.
lion
a

;

1954

will

total

$2.2

Of this about $350 mil¬

due in January and
'similar amount in July.

j

comes

Looks Bad Dec. 14—
Looks

»

Dec.

On

building

Good

Dec.

15

Emanuel M.

advocate

and

more

housing mortgage

the
of
*

home

that "the

maintained

industry

be

built, "and

year

in

1953,

with

m

we

to

the

most

easier,

abundant

money, cour¬

tesy of the U. S. taxpayer,

banner

Under the expired Title VI of
FHA, mortgage money was so
plentiful and cheap for multi-

family housing that "money
object."

time

In

opportunity

an

the

therein

private

was

leftsee

to

industry

larger

a

Mitchell has

ernment

maw

of

minimum wage and require

public

greatly. This is

All three
would

man

began,

as

a

schemes, if pressed*

thus

likely

in

more

way

industry

to

about

vate contractors

of
for

make

Mr.

heir of Mr. Tru¬

an

ways

than one.

(This column is intended to re-

fled the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)
;
,

RIVERSIDE CEMENT
COMPANY
Class B (Commen) Stock

softening

opposes.

carp

the

kill,

the greedy

making

a

•

Selling at about 4 % times 1952 earn¬

•

Anticipated

1953

Anticipated

1954

ings ($5.85 >.

pri¬
kill-

Valley Gas

(because

Sold

—

•

i

i

Most

at

earnings

Company

of

about

cement

6-12

3 V2

about
will

be

$7
a

of EPT).

demise

times

antici¬

times

stocks

now

selling

at

earnings.

Available at around $26*

Quoted

Carl Marks
FOREIGN

SECURITIES

50 BROAD STREET

TpLi HANOVER 2-0050

Building

Louis: 2,

Selling

earnings about $6.

pated 1954 earnings.
•

Member Midwest Stock
Exchange

Landreth

the

beneficiary

Com. &

SCHERCK, RICHTER COMPANY




a

its

be expanded
another prime

Southern issue.

hous¬

Wagner Electric

u

to

of

Tenn. Production

St.

he

and

segment

Natural Gas & Oil

Teletype

that

•

Scruggs-Vandervoort-Barney

SL 456

Secretary

promised

applicability

Texas Eastern Transmission

Bell

rights battle.

will raise the statutory Federal

ing. To do this the left-wingers

ing, which Mr. Spiegel

National Oats

—

of

and

un¬

apartment housing into the gov¬

cept for money for public hous¬

Anheuser Busch

Bought

states,

Labor

Eisenhower

private

ex¬

the

over

raise this states'

look forward

another

in 1954."

envelop

Next to

probably

state¬

wing in Congress began to

Spiegel is Presi¬

„

move

form

some

1,100,000 housing units likely to

dercut

is

said

construction

of

of Home Builders.

he

another

its postwar record high volume"

dent of the National Association

CIO,

Mr.

however,

15,

made
He

ment.

no

'

Federal

any

threaten

Finally,
Spiegel

payments and

of

business set-back;)

confidently

Maturities of these issues for

high incomes
vital to prevent a

boost

length

time such pay¬
ments could be received, would
require state action.

point, which

upon one common

of

saving

of

months the

be

cheaper,

Olin Industries

types

decision

a

ardent

Miss.

Treasury

merely to postpone

was

few

a

holders of

providing,

exemptions of $600 each.

the

current

calendar

entitled to two

are

Federal

personal

Congress

as

of

bonds.

special deal.

get

comparatively well off. Persons

insurance

principles under OASI

of

The exact exemp¬

onus

farm

and

the

coercion

would

however, against payment to the

who^C payroll taxes have been
contributed,

the

around

the

scheme to

constructors,
lobby, the A F of L

housing

is absolutely

for

losing

would

general business

a

^

o

scheming for a Federal
take-over, however it might be
disguised. And states are acutelyalert to this possibility. So any

would

bonds,

system

aged 65
great deal more

committee

amendments

been

is that government maintenance

other

indi¬

tion is not yet known.

subcommit¬

"rights"

de¬

f unemployment
compensation. Jobless pay is at
state affair, but Federal "civil ;
servant" planners have long

of their respective

Effect

persons
a

T-H

liberalizing

turing savings

their entitlement to Federal old

drafted, will retain the'

insurance

earn

new

some

these issues that they may buy

has

than $75 a month before

the

line, it is

permit

to 75 to

do

the abolition of the legal fiction.

Along the

Chairman Reed

would

Hence

exploit

legis¬

Part
two
of the program*
however, is said to be a great

special security in which to in¬
vest the proceeds of these ma¬

way

those

cated, the proposed

reserve

substantively

as

many

understand

^-politicians

As

off

touch

(The

still be offered

nouncement

Benefits

mortgage

recession.

this year,
maturing F & G

bonds may

pensions not
provided for by employer-em¬
ployee contributions.
pay

F & G's

on

It may be that later

money already given to
states under the old age assist¬

recent

the

of

rence

Postponed

employer

employee contributions.

issued
a statement declaring that there
must be "a major overhaul of
the government's housing credit
facilities" to prevent "a recur¬
On Dec. 14 Mr. Spiegel

to

Special Deal

Liberalize. Earnings
Insurance

pass

material

a

revive the coalition.

crisis" which he said threatened

sion.

effect,

nues.

Retains

that he felt
both personal

exemptions
legal

self-employed, in fact to all

and

some¬

of

the

long

States,

security

out

making

...

earned"

long-time casually employed, to

groups,

Canada's system,

a

than

schedule.

who had not had

adopting

proposed

—I can't hear

distinctly
word he's saying to his wife!"

these

of

better

or

schedule, to take

draw

United

the

of

One

like

be

from

fall

including the Chamber of Com¬
merce

two schedules of

up

rates.

Another would be

vpop the reserve fund.

IMfahy conservative

to

would not be sufficient alone to

"I wish Mr. Bulldozer would enunciate more

other

cur¬

and

to

like

bilitation of the T-H Act.

subcommittee

the

present entitlements under
contributory plan—a maxi¬

the

and additional taxes,
or government economy below
taxes, or public borrowing,
new

necessary

lation

Pro-labor

this

pension
the

disbursements

labor# hut would not

rolls

years.

would

of

repor4s, the

would

Taft-Hartley Act to

substance to avoid trouble with

new¬

pension

to

House

the

;

do this. A majority of Congress
might approve gestures without

make

to
that

so

the

of

please labor—would still like to

hand, the sub¬

proposes

on

To do

since it is merely an unsecured

becomes

other

revival

the

those who have contributed for

been

Vivien the day comes when
rent payroll tax receipts

be

the White House.

will not fare equally well with

especially

many,

would

will

destitute

and

allowance

some

Old

Federal

for

fund

reserve

the

committee

new

as

set-up

as

the coalition of Republicans and
conservative Democrats against

direct from the Federal govern¬

On

strange

So the preponderance

those

thing could hap¬
it might seem.

one

pen,

broadening

by

be able to collect some

Age and Survivors Insurance.

vided

state

Possible

through with some plans it is
hinting about to provide for a
three-part labor appeasement

away

eligibility of social security
virtually every group that

to

posed by Mr. Curtis makes some
-considerable compromises. One
of these is that it retains the

liave

and

im¬

one

does

ment.

chance

ashort

system

wants it.

1.

social

by

It

contribute to monthly
pensions for the indigent aged.

statutory schedule to 4% on

Like all

a

the

Seen

contain

reform.

Federal

Reed, who

told about it by Mr.

j

the Administration follows

If

jointly

President

to

Home

Coalition Revival

hand, the new

does

with

.sought to explain why he op¬
posed the freeze of the present
social security payroll
tax at
3% and wants the tax to rise
Jan.

other

the

portant

The President was

Eisenhower.

on

With Indigent

scheme

by

of the full Ways and
Committee, already has

Y.)

Govern¬

of

Contracting

Pensions

of

and

backed

program,
Chairman Daniel

Association

ment

*

Congress.
This

Home

of

Builders."

Does Away

posed old age security program

ready for

for the dema¬

ammo

1960, the Na¬

15,

Association

Builders could become the "Na¬

gogues.

avoid free

alto¬

an

Dec.

tional
in the breach

to

1954

money

annoying restric¬
tion upon the proliferation of
the housing construction indus¬
try,

WASHINGTON, D. C.—When

mortgage

remove

in

Congress

persuade

'

Mo.

•

&

Co. Inc.

Send for Report

T~31

SPECIALISTS

NEW YORK 4, N. Y.

" <

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