The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
\
L
■<j
.
JfiANKERS
INT
EWES
n
ASSOCIATION CONVENTION ISSUE
BUSIH[ss
ommercial
■■■■■■■■
MMmM
■
Reg. U. S
Number 5178
New York 7, N.
d
Chronicle
Financial
Volume 176
an
■IIBBfl
■■■■
Pat. Office
Price 40 Cents
Y., Thursday, December 18, 1952
Copy
a
EDITORIAL
The Investment Bankeis
Shall We Have
We See It
As
"Trade not aid"
as
pean countries is in
those
the
danger of becoming
of
one
course,
;that if European peoples
economically
Commenting
place
society of nations they must find
in
necessary
any
event at one time or another
end
f
.
■
be
on
of
Pakistan
material
said
Bankers
their
Ohio
who
T.
is
even a
Elahi
said
primary
with
that
he
when
commodies
C.
Pa., and
Lynch,
Merrill
Palyi
Chairman of the Board of Governors of
serve
only did this shatter dreams of financing imports
of capital equipment from current
export earnings, he
said, but imports even of some vitally needed consumer
Canadian
"The irony of the situation is
Continued
on
page
System;
Excellency,
His
Ambassador
the
to
H.
Mr.
United
the Federal Re¬
Hume
States;
Wrong,
Harry A.
McDonald, Administrator of the Reconstruction Finance
Corporation; Carrol M. Shanks, President of the Pruden¬
tial Insurance Co. of America, and William A. Patter¬
that just when the supply position in respect of capital
of
Vice-
Malon
were
Norman Smith, of
Pierce, Fenner &
Beane, New York City.
Ewing T. Boles
The principal speakers at the con¬
vention, in addition to Joseph T.
Johnson, the retiring President, and Ewing T. Boles, the
incoming President, were William McC. Martin, Jr.,
phia,
Mr.
Dr. Melchior
America,
Com¬
Angeles, Cal.; Walter A. Schmidt,
Schmidt, Poole & Co., Philadel¬
of
Not
of
elected
The
Los
crash"
SECTION—Pictures
Wis.
Miller, of The First National
Chicago, Chicago, 111.; Ralph
Phillips, of Dean Witter & Co.,
E.
upsurge,
Association
Milwaukee
The
*
the prices of
"came
down
goods had to be curtailed.
of
President of United Air Lines.
son,
(These addresses, in
Continued
75
on
page
77
incoming Officers and Governors of the Invest¬
also
candid
shots
taken
during
course
on pages
of
the
47 to 62 incl.
State and
m
WESTERN
U..S. Government,
State and
Securities
telephone:
Municipal
Pacific Coast &
Municipal
Bonds
Hawaiian Securities
HAnover 2-3700
Direct Private
Wires
Chemical
BANK & TRUST
Bond Department
Dean Witter
14 Wall
COMPANY
Co.
&
Street, New York, N. Y.
Members of
^
Principal Commodity
OF NEW YORK
and Security Exchanges
San
Francisco
Los Angeles
•
Boston
•
•
Chicago
Honolulu
J. A. H0GLE & CO.
THE NATIONAL CITY BANK
Bond
Dept. Teletype: NY 1-708
ESTABLISHED 1915
Members of A11 Principal Exchanges
50 BROADWAY
Salt Lake City
Los Angeles
and 10
•
/
-
CHASE
THE
'1
NEW YORK CITY
^
Denver
NATIONAL
BANK
j
Spokane j
OP THE CITY
OF NEW YORK
other Western Cities
NATIONAL BANK
STOCK and BOND
of INDIA, LIMITED
Bankers
BROKERAGE SERVICE
Brokers and Dealers
Branches
Burma,
Stock Exchange
Members New York Curb Exchange
30
New
York
Broad St.
Tel. DIgby 4-7800
New York 4
Tele. NY 1-733
CANADIAN
Central Maine
OIL
BONDS & STOCKS
Power Co.
in
26,
India,
in
Pakistan,
COMMON
ROYALTIES
Ceylon,
Kenya, Tanganyika,
Zanzibar, and Somali-
Prospectus on request
Aden,
land
Members
Government
Bishopsgate,
London, E. C. 2
Office:
Uganda,
Hardy & Co.
the
PRAIRIE
Kenya Colony and Uganda
Head
for Banks,
to
Authorised
Paid-up
Reserve
Protectorate.
Capital
Capital
Fund
£4,562,500
£2,281,250
£3,675,000
The Bank conducts every description of
banking
and
CANADIAN
DEPARTMENT
goodbody
&
CO.
ESTABLISHED 1891
MEMBERS NEW
YORK STOCK EXCH.
exchange business.
Trusteeships and Executorships
also undertaken
115 BROADWAY
NEW YORK
PoMcaox Securities
Grporactoti.
40 Exchange
..
CHICAGO
and
WOrth 4-6000
Teletype NY 1-702-3
:
WHitehaQ 4-8161
York Stock Exchange
other Principal Exchanges
111 Broadway, N. Y.
Place, New York S.-N.Y,
NORTH LA SALLE ST.
t
ira haupt & co.
Members New
Boston
>iv'.
}
f
J
Bank of
after the post-Korea
"the falling market also
adversely affected the volume of our exports, with the
result that our trade balance has been seriously upset."
a
year,
of
Lewis
if there
reported.
ensuing
President
Courts, of Courts & Co., Atlanta Ga.;
mild recession in industrial¬
countries,"
Boles,
Milwaukee,
Presidents
-
development projects
the
for
The
Company,
Columbus,
Ohio,
succeeds
Joseph T. Johnson,
Ewing
that
Association's recent Annual Convention at Hollywood, Fla., appear
DEALERS
President
producing coun¬
already passing through a,
"They have apprehen¬
were
held at the usual
was
Hollywood Beach Hotel, Hollywood, Fla., from
30 to Dec. 5, inclusive. The Association elected as
Nov.
sions of further serious repercussions
on
their economies* as well as on
PICTORIAL
IBA
-
90
page
ment
Elahi
raw
ized
-
place,
a
pany,
recession.
They must have markets for their products in
order that they may be able to buy and pay for
goods they must have from abroad—goods essen¬
tial not only to their export trade itself but to
their very existence. Aid may reduce, and doubt¬
less has in the past few years actually reduced,
the immediate necessity of finding a way to pay
for imports out of current production at home,
but it is a temporary expedient at best and may
actually get in the way of the development of
self-reliance and self-support.
*
Bankers Association of America
international organizations which
President
Fazal
self-sufficient.
Continued
numerous
supposed to make the world
tries
*
•
Forty-first Annual Convention of the Investment
world prices of basic commodities.
than one sense of the phrase, therefore,
evidently true that trade rather than aid is
the basic need of Europe—since, of course, none
can
1
The
What bothered them is the decline of
more
or
,
,
happly place is the
United Nations General Assembly's Economic and Fi¬
nancial Committee. In its plenary meeting earlier this
month, the self-styled underdevel¬
oped countries aired their lack of
happiness in
unmistakable terms.
it is
is
,
One of the
are
the
countries
the virtual
Sees, also,
of postwar pent-up
,
tributes to the defense of the United States.
these
stockpiling throughout world.
consumer demand, so that a
inflationary outburst is "not in the cards." Points
likewise, to overgrown producing capacities, and calls
Paley Report "primitive rehash of the discredited Maithusian Theory." ,•
*
simple reason that in all likelihood neither
:this country nor any other will continueindef¬
initely to support the millions in European lands,
or even to contribute a substantial part of their
support, for very much longer. For better or for
worse, the American people would, we should
suppose, come to the reluctant conclusion that
perpetual subsidies to peoples who either cannot
or will not stand on their own feet hardly con¬
of
of
Meeting at Hollywood Beach Hotel, Hollywood, Fla.,
Nov. 30-Dec. 5, is addressed by retiring President,
Joseph P. Johnson, and incoming President, Ewing T.
Boles. Addresses also by William McC. Martin, Jr., Carrol
M. Shanks, William A. Patterson, Harry A. McDonald
and Canadian Ambassador H. Hume Wrong. Text of
these Addresses, also Committee Reports and other
activities, given in this issue.
fresh
for the
In
41st Annual Convention
world-wide decline in commodity prices
make speculative purchases, and
to
sumers
cessation
of
way
some
on
accumulation of surpluses in last year and half,
Palyi ascribes this to reluctance of industrial con¬
Dr.
the
in
will find that
They
and
of
to regain
are
self-respecting
independent self-support.
It is true,
Association oi America Holds
Prices?
By MELCHIOR PALYI
popular slogans which at best "half reveal
and half conceal the truth within."
an
Global Parity
primary need of Euro¬
6
Teletype NY 1-2708
Telephone: Enterprise 1820
)
2
and
if,
Commei\al
The
(2326)
The
POSITION and
WE
Forum
Participants'\and
Their
IN
TRADE
week, a different group of experts
and advisory field from all sections of the country
Alabama &
Selections
A continuous forum in which, each
Arkansas Missouri Power
Central
Public
in the investment
Utility
participate and give their reasons for favoring
Colorado Interstate Gas
(The articles contained in this forum
Eastern Utilities Assoc.
Common
they to be regarded,
are
itably
ARTHUR MARX
Pacific Power & Light
.
.
4
«
RR.
Southern Production
,
There
Southwestern Public Service
..
o
nen.
Collateral
.DO
with
bonds outstand-
secured by deposit
are
the
of
out
A
__
Co.
Trust
Guaranty
as
Partner,
Seligmann
,
(Iiicl.
6%
Cum.
5%
Cum.
an
Common
Operating ratios have
steadily lower since
operations.
$25,679,223
$100 Par
1,325,500
$100
Par„_w
of
the
bonds
these
Teletype NY 1-583
RR.,
at
rate of
N. Y. Curb Exchange
Pref.
Stock
$100
Par
Michigan
stock.
Central
company's funded
lion
Direct
wires
to
arrears
on
this
issue.
Arthur Marx
Serial
to
Missouri Pacific
Common
much better than average
vides
have
current return, but the prospect of
almost $2 mil-
prepay
accelerated dividend payments to
eliminate arrears provides an ex¬
lion worth of divisional bonds due
of
December
in
bonds
1954,
but
a
Gersten & Fbenkel
Members N.
150
Y.
Security Dealers Assn.
Broadway
New York 7
Tel. DIgby 9-1550
Exchange and over-the-counter.
Allied
1930, N. Y. Central
leased the Michigan Central and
In February,
Tel. NY 1-1932
Paper Mills
Industrial Brownhoist
agreed to pay $50 a share per an¬
num on the publicly owned stock.
New
120
York
Stock
Exchange
New
York
Curb
Exchange
BROADWAY,
Tel.
5
YORK
NEW
REctor
2-7815
L. A.
gives you an idea of the
value of the Michigan Central RR.
to the
N. Y. Central system in
1930. On a 5% basis the Michigan
Central
stock would have been
Monroe Auto
This fact
worth $1,000 a
and
31/2%
collateral
American Furniture
Market
Request.
on
Members:
1051
?VP
Penobscot
DETROIT
i
Building
26.
MICH.
'
Branch
%?■
Michigan Central RR. had a total
debt of about $61 V2 million.
Bv
Bassett Furniture Industries
,
Midwest Stock Exchange
Detroit Stock Exchange
1908
before the lease took place,
year
Equip. Pfd.
Information
Moreland & Co.
share and the col¬
would
have been worth approximately
$9,500. On Dec. 31, 1929, the last
tral
Darling Co.
Financial
lateral in back of each N. Y. Cen¬
Trading Interest In
5%s
that time. This issue not only pro-
divi-
and
bonds
mortgage
offered
bonds.
Members
offices
Missouri Pacific
Payments
change of these bonds for the jn November of 1953. The com- cellent chance for considerable inMichigan Central stock at the ra- pany is faced with a maturity of vestment appreciation. The stock
tio of one share for each $115 of $8 million worth of first mortgage is traded both on the Boston Stock
ftfcnONNELL&rO.
branch
our.
12,000,000
new
of
worth
dollars
sional
in 1898 by ex-
Since 1917
NY l-l£ 57
"Excluded $1,676,000 Portland & Ogdens-
debt from
Central offered publicly $1.5 mil-
was
Central
Y.
N.
be
to
HAnover 2-0700
.
acquired by
Rights H Scrip
/
Curb
St., New York 4, N. Y.
NewOrleans, La.-Birmingham, Ala.
Mobile, Ala.
approximately $31 million in 1939 against these arrears were instito less than $20 million currently, tuted in 1950 and $7.50 per share
In
October
of this year
Maine1 has been paid each year since
for each share
of
This stock
Specialists in
Exchange
high Of 84% in 1945.
operations resulted in a
the
$115 in
being
Broadway, New York 5
Exchange
York
Present burg 4»/2s of 1953 Which have been prepaid,
ratio of
All securities senior to the 5%
76%.
preferred stock are on a current
Conservative
financial
opera- basis. At the present date there is
tions have resulted in decreasing $82.50 in cumulative dividends in
Central
1920
York Stock
a
Michigan
Corporation
Members New
Members New
3,000,000
Prior Pref.
standing
New York Hanseatic
Steiner, Rouse & Co.
25 Broad
Equip. Obi. I
in¬
show
&
(Page 2)
Wis.
Capitalization of Maine Central
is as follows (as of 12-1-52):
"Funded Debt—
disbursement,
Bought—Sold—Quoted
5% Pre¬
vvith Yfr^
"
figures
Louisiana Securities
Seligmann,
~~
should be able to refund this issue
preferred share to cover the $7.50
Current
of
tended
shares
BArclay 7-5660
Co.
F.
Co., Milwaukee,
payments.
earned on each
.
3*4s
Partner,
of 187,380 out-
Development
Established,
General
(We
creasingly fine trend of economic
total
a
RR.
they
than adequate to
more
are
More than $45 was
C
Central
ferred—Bernard
current dividend
cover
of
shares
168,143
Polaroid Corp.
rrt
....
trustee
Metal & Thermit
the
Marx,
Earnings on the 5% pre- ——
ferred
cf
had
has
and
1939,
Collateral
Arthur
Hudson
City. (Page 2)
available records prior to
no
1933.)
1998
3'/2%
tt.
American Maize Products
have
o-
$19,336,000
are
They
j
,
above-mentioned
ing.
120
nor
only two years in which
showed no profit since 1933.
Partner, Wilson & Marx, Inc.,
New York City
w
since
and
Wilson & Marx, Inc., New York
offer to sell the securities discussed.)
as an
Central
RR.
—
Maine
Kansas Gas & Electric
Associate Member
be,
to
1,998
Conv.
&
Iowa Public Service
Smelters
intended
not
are
River
particular security.
a
York
New
18,1952
J
Weekly
This
Security I Like Best
i
.Thursday, ClS
..F leinorh December
e
1
Wf'lJE
*
'
Office—Bay City, Mich.
May, 1952, this had been reduced
V,
to
Camp Manufacturing
$17,700,000,
and there was
cash or equivalent on
hand to call the 4V2% bonds of
Commonwealth Natural Gas
the Michigan
Dan River Mills
Central RR
wished to)
management
Life Insurance Co. of Va.
would
reduce
STRADER,TAYLOR & CO., Inc!
leads
Lynchburg, Va.
great
TWX
LY 77
the
the debt to
million.
$6
over
LD 39
deal
than it
that,
WALL
NEW
STREET
YORK
5,
1998
in
now
of
because
Central
the
the
Refined
F.
Maine Central RR.
Y.
N.
SELIGMANN
Liquid
Exports—Imports—Futures
a
Class 1 rail¬
of
track.
serves
the
area
around
Au-
of
a
The
company
from Portland to
the
as
St.
as
Johnsbury, Vt.
Established
1856
There
Maine
H. Hentz & Co.
well
as
or
Moreover, he is deprived of the privilege of appreciating
work of countless mortals who have the capacity and
Ca¬
is
gifted,
indeed,
give
successes
the
Stock
Exchange
New
York
Curb
Exchange
cess
Exchange
from Montreal
York
Cotton
Chicago
New
Exchange,
Board
Orleans
And
of
Cotton
other
Inc.
to
and
Trade
ern
Exchanges.
Exchange Bldg.
DETROIT
N. Y.
PITTSBURGH
GENEVA, SWITZERLAND
^'SAV
and
in all its broadest manifestations, its
failures, its mysteries and possibilities is worth
when unknowing
even
or
cynical individuals conclude
boresome—a monotonous
all
a e-
Over-the-Counter
traffic
So, all honor to him
West¬
Seligmann
Canada.
Principal freight handled by the
road is pulpwood, potatoes, soft
*
CHICAGO
.
'
'
company
Exchange
NEW YORK 4,
.
round of routine and uneventful movements.
woodpulp,
and
printing
paper. Most of this traffic is orig¬
inated
on
the
company's own
lines.
Unprofitable passenger
travel comprises only 6% of all
coal,
N. Y. Cotton
pV)R INDfy
that the average person's life is just
York
TU-5630
too,; who has the sensibility to
living
New
•
to heal the sick.
or
One
and
New
403 W. 8th ST. LOS ANGELES
neighbors.
nadian Pacific
Members
Commodity
pessimistic pessimist, he
brother, the esteem of relatives and
the respect of
The drama of life
con¬
nect with
a
thrice blessed!
Centra l's
tracks
becomes
appreciate nature's revelations in the beauty of a raindrop,
the ocean vista, the sky, the starry constellation, the moon
and the sun, for from .them,.he.will learn something of the
poetry of living and discover some of the innermost secrets
of existence. And wonder of wonders!
The person who can
find God in "rocks and rills, woods and templed hills," is
of
most
as
^
through
Maine, and
person
mother, or sister,
classics,
•
far west
fi/iiva/e inwe&lot&
a
genius to compose musical harmonies, to paint pictures, to
sculpture statues, write poems or books, to perpetuate the
and
gusta
HARRY AND MYRON KUNIN
forfeits, in great measure, the opportunity to love his fellow
man, to enjoy the romance of a' woman's love, the affection
and innocence of children, the ebullience of youth, the faith
Company 5% Pfd.
slightly less than 1,000
,Bangor,
DIgby 4-2727
IN SOUTHERN CALIFORNIA
spiritually.
friends
road with
OF SEASONED COMPANIES
this earth carries with it both pleasure and the
on
If and when
Central
miles
—
V
■
and
,
Maine Central is
—
mankind
age-long question, "Is Life Worth Living?"
responsibility of molding character and educating the human
soul in all that is good and true and beautiful both ethically
Milwaukee, Wis.
Raw
strife,
a
N. Y.
General Partner, Seligmann & Co.,
SUGAR
and
hatred
with the
world torn asunder by
is confronted as never before
Season, in
3 V2 %
the
system.
BERNARD
N. Y.
a
Christmas
good if not better than
as
bond
any
is
BLOCKS OF
By Alexander Wilson*
this
Living
the collateral,
are
gife MUivth flhwiug 3n These Times'.'"
At
of
stock
RR.
valuable
Central-Michigan
LAMBORN & CO., Inc.
the
Central
more
"Is
little
a
in 1930.
was
believe
value of
(if the
which
€>ljnstntas lEfritorial
naturally
This
believe
to
me
Michigan
I
99
A
enough
_
the company's revenues
The company
has operated prof-
or
to her who follows in the foot¬
steps of the Great Master by doing their utmost to make this
a better place to work and live in.
for 40 Years
old Orb
There is always hope and courage
one
man
who
or
in this world for
*
Quotation Services
every
rises above his daily
woman
who is
of Mankind whose
a
difficulties, yes even for the
successful failure!—like the Saviour
ignominious death
on
National Quotation Bureau
the Cross has been
the
inspiration for all religious thought and belief through
the Ages!!!
■
- -
Incorporated
Established
1913
.
*Editorial
writer
on
46 Front Street
political 'and .international problems.
CHICAGO
.
New York 4,
N. Y.
SAN FRANCISCO
Number 5178
Volume 176
Chronicle
The Commercial and Financial
.
.
.
(2327)
INDEX
The Institutional
Market for
Equities
Resurgent Rails,
Bogen calls attention to growing use of financial and thrift
institutions as media for individual savings and the impact of
institutions will be faced with
when
;
(greetings
4
4
,
Let
Savings Bank Investment
as
us
make
it
Obsolete-less
Merky and
a
Holiday for you!
6;
Casazza
7
•
Recent Inflation Developments in Western Europe
-■?
—
Mrs.
Vera Lutz
Obsolete Securities Dept.
8
;
Investing for Pension and Profit-Sharing Trusts
Indicates
shortage of investment outlets
a
I__.
Progressive Tax Changes in 1952—Victor R. Wolder
are
be corrected if institutions will buy more equities.
/
Mortgages
vs.
—Alfred J.
,
Season's
'
___
Rates—Roger W. Babson__;
Equities
securities market.
the Choo-Choo Named Expire
or
—Ira U. Cobleigh
Birth
Points out, under present
required to invest mainly in bonds,
thus contracting demand for equities.
Reveals growing gap
between bond and stock yields and holds this distortion can
-
2
Equities—Jules I. Bogen—3
The Institutional Market for
York University
Dr.
on
AND COMPANY
Cover
A Christmas Editorial—Alexander Wilson...
'
change
pae#>
Prices?—Melchior Palyi
Shall We Have Global Parity
By JULES I. BOGEN*
Professor of Finance, New
restrictions, institutions
LicHTtnsTfin
B. S.
Articles and News
this
3
—John Hardy Weedon
-.
f
Outlook for reiroleum
lament
9
10
i__'
Industry—Laszlo A. de Mandy
Trusts—Key to Solving Retire-
WALL
STREET, NEW YORK
Telephone: WHitehall 4-6551
Profit-Sharing
Employees'
supply of home mortgages diminishes.
09
11
Problems—George P. Jochum and Robert E. Fulton__
Value of Municipal Financing in Preserving Local Autonomy
directly
with
The corporate bond study
of the
invest
eco¬
ability
changes of the last decade,
the more important and
spectacular has been the institu¬
safety.
tionalization
search—and
of
terest to those who seek to foster...
Among the
striking
many
nomic
of
one
the
for
bonds
in
other
based
by
their
Corporate
'20s
the
were
savings
mainly to
in¬
dividual
v
t
s
e
in-
o
Bogen
I.
Jules
Dr.
tion
s.
r
Dwight Morrow, when
he was a
People in the
Morgan syndicate in
the midtwenties and found that the aver¬
savings
sale
was
$3,500. The business
then because the
different
was
market
was
different. The market
primarily individ¬
for bonds was
savings
and
more
for mortgages also
market
The
mainly individual. Mortgages
sold in the form of guaran¬
was
were
teed
mortgages
certificates,
and
Straus bonds and other real estate
in¬
in
came
The
largely from individuals
of the
come
time
brackets.
income
higher
bulk
at that
stocks
for
demand
the
in
national savings
the high in¬
in
was
brackets, and people in the
brackets could hold
high income
stocks for dividend income to ad¬
vantage because of the lower tax
the
a
20
has
steady, unremitting trend
there
years
towards the institutionalization of
savings. There are several reasons
for this. For one thing, as a result
lost
their
money
Considering
that
defaults
widespread
among
were
guaranteed
mortgage
certificates, real
mortgage
bonds,
and
estate
many
cor¬
porate bond issues, it is clear why
people
of
the
Life
tax
after
has
could
-
;
Defense
A.
insurance
their
their
in
confidence
lost
gain of
deposits,
savings.
in
$2
which
Mutual
26
Finds Little Grist in Newr Aviation Financing...:
27
Market for Railroad Securities Much Improved
a
Dr.
report of a lecture by
"The Economics
Industry," sponsored by
the Investment Association of New York
and
New York
University,
New York
♦Stenographic
of the Securities
City, Nov. 26,
a
are
are
have
specialized in
net
are
Washington Ahead of the News—Carlisle Bargeron—
Our
Wilfred
Governments
Prospective Security Offerings
Railroad
Securities
still
not
funds
are
in
on
the
page
The Security I Like Best
big
Tomorrow's Markets
85
Chicago
•
(Walter Whyte Says)
t-.
Weekly
1
•
CHRONICLE.
,
DANA COMPANY.
B.
Park
Place,
REctor
New
2-9570
York
Nashville
•
Schenectady
•
Worcester
•
WILLIAM
DANA
CROW ELL, WEEDON & CO.
LOS ANGELES, CALIFORNIA
GEORGESON&CO.
Copyright 1952 by William B. Dana
Company
i
Reentered
Y
second-class matter
as
Febru-
Specialists in
Stockholder Relations
1879
Subscription Rates
to 9576
SEIBERT,
to
PbbH.b.r.
7, N.
President
of
Pan-American
Union.
$45.00
per
year;
In
•
of
Dominion
Thursday, December 18, 1952
Every
plete
Thur*a'a> "igenerai news ana *a
1
and every Monday.
issue — market quotation
statistics
state
corporation
and
Other
ibibbHf,
city
••
Offices
1
r"
ws.
135
news
hank clear"
etc
Soutr.
'".'on'mnr
other
Canada,
$48.00
per
Quotation
Record
Note—On
rate
of
CHICAGO
—
Monthly,
(Foreign postage extra. 1
account of the fluctuations Id
exchange,
remittances for for-
elgn subscriptions and advertisements n>»«'
Mph
Vom
ninni
WALL STREET
BOSTON
Other Publications
and
52
NEW YORK
year,
Countries, $52.00 per year.
$30 no per year.
the
ba 8au.
OTat* - «
for
Eng-
HERBERT D. SEIBERT, Editor & Pnbll.lt.*
records,
Private Wire to
108
C.,
E.
London,
Write
Booklet C
land, c/o Edwards & Smith.
!
Reg. U. 8. Patent Office
•
-
Gardens,
Drapers'
♦
Y.
Glens Falls
.
COMMERCIAL, and
The
FINANCIAL
'
TELETYPE N. Y. 1-5
•
...
Washington and You
Twice
2
5
89
:
verti.sing. issue
•
ANALYSTS
90
102
The State of Trade and Industry
Stock Exchange
ST., NEW YORK 4, N.
Boston
SECURITY
80
:
Security Salesman's Corner
Securities "Now in Registration
•
Manchester, N. H.
for
5
107
79
105
98
.
Public Utility Securities
:
•
—
May
Report
Reporter's
Our Reporter on
Spencer Trask & Co.
•
Bankers
News About Banks and
Observations—A
A SERVICE
99
101
15
:___
Mutual Funds
..
TELEPHONE HAnover 2-4300
8
.
investment
Exchange PL, N. Y. 5
108
83
Securities
Indications of Current Business Activity
the life insurance
40
—
15
6
From
gain¬
know from
you
MACKIE, Inc.
Teletype NY 1-1825 & NY 1-1826
5
25
Albany
Stocks
Coming Events in Investment Field___
Recommendations.
$lJ/2 billion.
Continued
York
&
Cover
97
...
_____
Dealer-Broker Investment
PREFERRED STOCKS
Members New
Singer, Bean
83
Bookshelf
Man's
Canadian
WILLIAM
BROAD
(Editorial)
Bank and Insurance
_
25
Meetings of IBA
HA 2-0270
Published
For many years we
•
43
Convention to Be Held at Hollywood, Fla
See It
As We
reporting net sales of some $600
million. Compared to the others,
1952.
37
Dates Announced for Winter and Spring
in time
primarily
figures cited.
they
Airlines
S.
32
1953 IBA
Murray said last week,
included in
U.
tjt
Golf and Tennis Tournament Winners at 1952 Convention
applies only to independently ad¬
ministered pension funds. As for
the insured pension plans,
they
are
Reeves Soundcraft
33
U. S
s',-.
gaining $1.2 billion. This figure
are
Fresnillo
31
Responding to Free Market
Corp.
Cinerama, Inc.
30
In Attendance at IBA Convention
Business
billion
over
funds,
and Research
29
Deficits, with Only Moderate Tax Cuts____
Canada Not Oversold in
are
Development
28
Reports 1952 Municipal Issues at Record High________
the
Associated
25
Regular Features
savings banks
Pension
what
24
Einzig—"Britain's Colonial Sterling Balances"
ing something
Detroit
•
23
:
Affecting Securities
1952.
banks report
over
Los Angeles
•
Chicago
Committee Reports
Menace of Public Power to Private Investment
proximately $3 billion.
Mutual
Dr. Bogen in a course on
Wrong
IB A
New State Legislation
and loan associations
reporting a net gain of ap¬
Commercial
Philadelphia
22
McDonald
$4V2 billion to
over
resources
Teletype NY 1 3370
Direct Wires
21
RFC—Harry A.
Hume
"
is
companies
Broadway, New York 6
BO 9-5133
20
Patterson-.,
the
of
H.
—Hon.
<
,
not
that
been
time
present
going to add
61
Canada's Development and Its Prospects
been
seek
to
Incorporated
19
Jr
Shanks
M.
—William
,
'■> In
flowing
through financial institutions.
Here are the figures for this year:
safely.
own
Martin,
bulk of the nation's liquid savings
at
depression losses, people
confidence in their ability to
invest
McC.
Treasuries
are
Savings Trend
last
of severe
—William
High Taxes Depleting Corporate Working Capital
pressure
J.F. Reilly&Co.
Progress and Problems of Aviation Industry
squeezed
have
4
18
:
Market Propels Our Economic Machinery
margin left
investors
result
The
,
Johnson.
T.
J. —Carrol
Savings
The
In
yield
17
Trends and Problems of Life Insurance Investments
of their in¬
been
Gechell Mines
Boles
Foresees Federal
burden.
been
total
T.
justify the risk involved for those
in the middle and upper income
the
dividuals.
'20s
A Free
higher dividend return, since the
net
83
Year of Careful Planning and Doing Ahead
—Joseph
accounted
the
narrow
has
less
under
Policy
—Ewing
more.
Individual
Hailey Mines
14
brackets.
to
chiefly
bonds
mortgage
The
of
much
so
that the
come
for
ual and not institutional.
have
as our
taken
11
Compensation
Foreign Investment Is Job for Private Capital
upper
highly progressive
income
tax
has siphoned
away
their earnings. Inflation has lifted
their cost of living, while taxes
have
Lear, Inc.
s
Texts of IB A Convention Addresses
A
*
middle and
less
and
Cover
__
Alone
•Credit
for them.
brackets
less
for
_
Heavy Public and Private Debts Calls for Cautious
ability to invest their
partner at J. P. Morgan and Com¬
pany, studied the distribution of
a large corporate bond issue by a
age
'
Secondly, there has been a great
shift in the ownership of savings.
income
Without
■
offering price.
the job
do
__
Philip M. McKenna Says U. S. Can Return to Gold Standard
less
was
Convention
Annual
bank, the life insurance company
or
the savings and loan associa¬
tributed
-
Denounces UN Resolution Upholding Nationalization
they preferred to let the
bank,
the
commercial
money,
1A~
Investment Bankers Association of America Holds Forty-first
people lost confidence in
own
dis-
bonds»in
Mortgage Finance in 1953—Miles L. Colean
contractual ,j yield
the
on
When
individuals.
reorganization,
half
than
in¬
13
this is of special in¬
put out. between * 1900 and
fault and
securities
and
vestments
-
fully 20% suffered default.
The actual yield on these bonds,
after deducting losses-.due to de¬
most
Cenco, Inc.
Standard
—Frederick G. Shull
1943,
directly
part
Recent Political Developments and the Gold
•-
equity investment by. institutions
that
of
all- corporate
invested
12
—David M. Wood
■
—showed
ago
liquid savings
were
•
-
National Bureau of Economic Re-
savings.
Twenty or 30
years
to
5, N. Y.
PHILADELPHIA
•
SAN FRANCISCO
•
LOS ANGELES
•
PITTSBURGH
CLEVELAND
Rtprtsentatives
m
all Principal Chits
4
The Commercial and Financial Chronicle..
(2328)
Resurgent Rails,
the
or
net per share should ap¬
proach the $18.09 of last year; and
if
more
orthodox
meteorology
prevails in the Denver-Rio Grande
By IRA U. COBLEIGH
country
"Expanding Your Income"
next
revenue
railroad profitability, together
the current switch to rails on the Stock
A short hauled account of rising
with
comment
some
on
ting
Christmas
valuable
some
get¬
are
presents this year — expanding
earnings, fatter dividends and the
honor, and
You
tween
the
the preferred
or
78
at
common
on
18%
from
save
can
new
55%
to
print
of perhaos
$10
share
a
(before funds) seem possible for
1952, and the stock has been pick¬
ing up quite a speculative fol¬
lowing.
<"
a
type of tonnage—
new
a
trailers
flat
on
cars
slock
the
nas
oeen
acting
dividend
$4
as
tnougri
rate
could, or
would, be hoisted. $15.50 a share
earnings, which some have pre¬
dicted for 1952, could give some
substance to this sort of optimism.
Other
As
Promising
you
Prospects
this is the
note,
may
breeziest sort of current treatment
splendid cash
overnight haulage of motor truck
Pacific
Northern
in
into
share this past month.
a
Earnings
rails in
and paying $5.
mon)
75c
broke
New Haven has
vertible share for share into com¬
diesels. Depend¬
the type of service, a diesel
all,
finally
paying position, paid $9 in preferred divi¬
(con¬ dends this year, and has led the
91
at
dividend Sahara of 21 long
a
years,
New Haven
choose here be¬
can
$4,
most of
ing
prospect
bright.
Exchange.
shareholders
Railway
the improved
is considered
year,
after
with
trust, non-recurring costs.
Even so,
Choo-Choo Named Expire
Author of
record
on
profitability with heavy,
we
ana
floods
and
snows
drained
.Thursday, December 18,1952
between New
of rails, and I've probably
quite
over
skipped
situations of
few
a
promise.
At around the 20 level,
in particular, there do seem to be
a lot of interesting situations.
Soo,
Penn, Milwaukee, Central, North¬
York and Boston. Congestion over
western, Lehigh Valley, and New
forget that Northern Pa¬ the
operating cost, over the steam en¬
highways suggests an interest¬ Haven, give you quite a
shopping
cific
is
still
a
railroad,
even
gine it replaces.
Multiply that
ing future for this freight move- list if you're drawing a bead on
'
capital gains, efficiency by thousands and you though a lot of people talk about ment.
capital gains, while Great North¬
it as a listed oil royalty. Nipper's
which
are
get at the vital factor in back of
Southern Railway
ern and Southern Pacific
may at¬
crack transcontinental train, the
customarily restored railway earning power.
Soutnern has only the last 5% tract you on a yield basis. Above
North Coast Limited, is going high
accorded
to Most of the carriers that are forg¬
of its complete dieselization re¬ all, get the facts about the re¬
hat with 16 new dome-type cars,
the leaders of ing ahead fastest on the earnings
maining unfinished. Per share net surgent rails before boarding any
$6,200,000.
$17
million
the Dow Jones statements, are the ones 100%, or costing
of same. When choo-choos
expire,
more will
be spent next year in gain so far this year is -about
hit
parade. nearly so, dieselized. Gulf Mobile,
35% over 1951 and the common the earnings go higher.
'
new
equipment, involving 8 die¬
Well,
i t's New Haven, Southern, Seaboard,
about
time. and Rock Island all build up the sels, 200 ore cars, and 500 "reef¬
ers."
At around
80, paying $3,
The pendulum evidence for this case history.
and
14
points below its year's
has swung full
Apart from technical and en¬
high, the stock has an eager fol¬
cycle. Twenty- gineering cost reduction by the
They like it as a road,
three years rails, the most important over-all lowing.
By ROGER W. BABSON
and for the 3% acres of land per
ago,
a
dozen industry-wide factor has been the
Mr. Babson lists births in U. S. from 1932 through 1951, and
share that may prove petroleum
new
and
higher rate structure
railway shares
Don't
-
Birth Rates
U. Cobleigh
Ira
applying to traffic throughout the
the
gant equities
ranked among
country for 1952.
Central sold
boast and New York
times its current
almost seven
at
could
economy
our
ele¬
most
price. New York Central and its
were relatively
stockholders
That system eluded re¬
ceivership, a feat which one-third
of our railway mileage could not
lucky!
what happened
and
perform;
that total railway car
high—around $11 billion; net in¬
come, $765 million, will enable a
bountiful $345 million to be paid
out
cash
in
dividends to
ex¬
of secu¬
patient group
ceedingly
an
rity holders. If, as it appears, 1952
is to be the best railway year since
to
stockholders in some of those sub¬
was
1930,
and
merged financial situations
100% tragic.
Between 1930
loadings may
be, perhaps, 6% below 1951, gross
revenues
will be at an all time
to conclude that
we're at the top
are we now
of the cycle, that
should be sold, and
Chicago
ening life
that
on a
more
share
basis, and vice versa.
This year a tough winter, strikes
in lumber, steel and coal treated
per
Northwestern
harshly
and
ings for the early months
little
sider
and
net
of perhaps
$1 on the
for the full year is a pos¬
the reorganization plans of, rail shares
sibility. The road has a tradition
believe, 13 railroads wiped out that the cyclical nature of this of paying out a large percentage
industry historically should be re- of
common stock entirely. Such roads
available
earnings.
At
19,
as
New Haven, Soo, Minneapolis studied to temper current carrier
Northwestern
seems
a
volatile
enthusiasm?
Let's see where we
and
St.
Louis, etc., gave their
speculation. If, however, the sys¬
common
owners
wallpaper
for are,
and whither
we
may
be tem could
just lay off about 700
their whoopee rooms, and an un¬ going, by a little railroad hopping
miles of light density branch lines,
derstandable aversion to rail se¬ —gleaning topical items and bits
with
a
lot
of
now,
I
that has,
curities
Southwestern
issed
1
in many quar¬
persisted unto this
ters,
Louis
day.
St.
a
1950's; and it earned—think of it
the first 10
months of this year. Only by the
stoutest battle, and with plenty
share
a
for
legal in-fighting, has Missouri
of
Pacific kept its old common
the
till
of
dawn
a
now
alive,
brighter
day.
But I
came
to praise Caesar, not
As I said, the pen¬
dulum has swung back.
Union
Pacific,
Atchison,
Coast
Line,
Northern Pacific, Burlington, and
Southern, are getting that Tiffany
look back after a quarter century;
and who would ever have thought
to
bury him.
short years ago, to
five
board
common
ruptcy
Smart
matter of
zation
back
all
to
has
not
been
1952; but the first ten months of
this
is
This
a
net per
gain.
wonderful
It has
a
luck; it's been moderni¬
management played
back.
$16.30
showed
year
share.
and
familiar
bank¬
shares of common listed in
more
mind, all this financial
motion
forward
prompted an increase of the
quarterly dividend from $1.25 to
$1.50; and the recent high market
altitude
has
Seaboard
of
sug¬
the possibility of
a
stock dividend
or
split-up in
1953. Seaboard is no longer a sin¬
some
cinder-laden
lurching
gle
North-South
of
streak
it's
rattlers;
the
$8
New
York
Central
Central
York
off
started
out
meek
a
first
4c
share
a
months.
the
for
billion
poured,
postwar,
into
railway
property — new cars, yards, line
and
signal
improvements,
and,
seven
Denver
&
Denver
ran
ern
this
Rio
and
into
year.
a
lot
About
and
hard
the
of the others,
some
is
ESTABLISHED
and
us
the
•?>
•
stock
at
market "lows"
a n
it
as
does,
"birth
d
'
reason
up
for the
investors
all the time
new
traditionally astute
in their
judgment of rail equities.
per share at around the
level is being predicted, all
1952
$3
net
made in the last five months!
Louisville
luck
toughest
Peering
rails
we
Nashville
&
elsewhere
among
18941
the
note Louisville and Nash¬
ville is
having good hunting, and
earn
at least $10.50 this
yehr (for 1951—$9.75). The $4.50
dividends
STATE AND MUNICIPAL BONDS
7%
for
is
1952
about
a
yield and growth in territory
is impressive.
My guess
served
CORPORATE BONDS
would
be
that
the
$65%
dieselized;
from
LOCAL STOCKS
steam
and
ATLANTA
1, GEORGIA
LONG DISTANCE 421
&
N
common
be
quietly moving into
improved investment status.
seems
RHODES-HAVERTY BLDG.
switch
steadily.
underpriced at
impressively
present levels, L
an
the
above
continues
Not
to
road is
B
20
ratios
down
to
to
,
who
all
be
reach
.
.
the
age
of
20
whagt1Vhas happened-™
below
possible optimistic relationship of
the birth rates to certain busiFor
nesses.
they
instance,
bound
are
creased
to
demand
sometimes
cause
in-
an
for
tant that manufacturers and
mer-
1935_
the older youths; and finally the
needs of adults.
Statistics show that there has
been a great increase in older
people, due to various causes. Social Security is reducing worry
amongst the aged and certainly
they all should thank Francis
Townsend
of
The
drugs,
new
and
ease
icillin
of
done
pneumonia
tjie
and
to
save
gvefl
the
patients is a story
the shorter
Finalfy>
in itselt
da£
five_day week have
pro¬
tected the older members of
oui
before.
for
Colleges
rary lack of students, due to the
great drop in the birth rate which
came
eighteen
ago.
These
should
crest
birth
2,934,860
2,794,800
them
2,735,456
3,288,672
3,699,940
mand
3,535,068
vide
will
rates
a
3.581,000
In
we
3,648,954
will
few years
an
economic
3,451,608
heart
another
more
more
to twenty yean
colleges,
however
take
of
2,808,996
fewer
this.
lengthen life. What pen-
has
Outlook
2,513,427
were
for
vitamins,
Just now, most colleges are op¬
erating at a deficit from tempo¬
2,155,105
2,144,790
2,203,337
2,286,962
2,265,588
2,360,399
there
California
etc.,
have done much to eliminate dis-
ever
2,081,232
2,167,636
men
and
education,
but
the
money
de¬
bettei
will
give
to pro¬
such.
connection
must not
given
high
women
conditions
families
the
of
begin to benefi'
hence. Not onlj
with
the
birth
rates
forget the returninf
G. I.'s from Korea.
in
born
because
wave
same
These will be
rights
to
a
free
30's, there will now be college education as were providee
fewer marriages and, hence, fewer to the veterans of World War 71
the early
births.
The
\
-
above
there should be
only
common,
Merchants
also indicate
Evfr^™anufacture^n<'
2,074,042
major
the
for
shopkeeper is getting more busines from older
people today thar
Births 1932-1951.
As
Opportunities
The above figures
reasoning of the teenagers; then in needs for
if the
,
ness, wages,
and
re¬
of new babies; then in needs for the
this young children; then the demands
should not
74, its debt is being reduced faster
than in
the
case
of any
other
road,
the
cent Republican victories.
years
age. Even
figures suggest that
an
abnormally small number are
Baltimore & Ohio
now
reaching 20 years of age.
& O, for October, moved its Hence, according to this
theory,
operating
stock and bond
on
notwithstanding
chants, as well as parents, should
ing is that keep this in mind. This increase
people "ma- in business will first appear as
ture" at about the birth wave develops needs for
J
of
leverage, CN is getting an inter¬
esting following among analysts
and
bearing
a
prices,
above old say-
curing these years. The following
important
have
everything
rates" of
20 from
diapers to toys; while at
years ago. The other times they help real estate
only logical and furniture sales. It is impor-
j
per¬
This
conversions of gross to net should
be possible. At 22 %, with a lot of
in
Let
back
50%
about
only
centage is moving
Grande West¬
of
today
as
dieselized, throughout.
Western
Grande
Rio
Central did not chuck the choo-
choo as fast
should
V/ALNUT 0316
20
look
taken seriously
In
about
years."
Roger W. Babson
slowly enough in 1952, dribbling
an
elegant hunk lof high iron.
We are, of course,
with
%
might
common
old-
every
....
Benefits of Dieselization
j
men¬
has
been
magnificent.
management here has
gested to
Bear in
NW
passenger
bit of real highballing.
a
con-
an
same numAugust,
virtually 100% dieselihowever, CN got a new President, her of people become 20 years of
zation. Redemption, this year, of
William White, formerly of D. L. age every year! For this old theory
its 41/2% income bonds and 5%
& W.
Under his leadership the to work, there must be a differpreferred stocks have now stream¬
road seems already to have taken ential in the maturity rate.
We
lined the corporate structure, and
on a new
tone. The $500 million then can apply this theory as one
placed the equity, 979,790 shares
spent on the property from 1945 factor determining stock market
of common, in a favorable posi¬
to date are beginning to strike movements.
tion. Ten months of operation till
pay dirt.
This is shown in part
Let's Look at the Record
November first in 1951 delivered
•
by the tranportation ratio, which
a
net of $12.69 on each of the
Although a certain percentage
went for almost 47% for the first
of babies and young people die
850,000 then outstanding. Due to
ten months in 1951 to 43.85% this
before 20 years of age, it is fair to
conversion of the now extinct In¬
year. It was only 40% in October.
assume that the same ratios apply
come 41/2S, there are almost 130,000
tonight."
news
already
we
Its emergence from
achieved
then quoting at 20
below, breaking par and soar¬
ing like an eagle past 110? We
need
to revive
the quote from
Gabriel Heatter, "Ah yes, there's
then
trains,
do
New
Seaboard,
tioned.
Sea¬
see
losing
is
self
\
Seaboard
or
good
help define the trend.
may
just
rub-out in 1941 and sold
1
—$58
about different lines that
news
common
measly buck; rising from its
near-doom to sell about 300 in the
1.1
of
There
past.
"History is always repeating it-
a
on
common
the
time saying—even if unconfirmed
earn¬
were
Points out, because of length¬
manufacturer and shopkeeper is getting
business now from older people than ever before.
span, every
Once in awhile it is well to
the dismal side. Recently
road has done much better,
the
fewer born in the early '30s, there will now
hence, fewer births. Says births are
were
factor in stock and bond prices.
a
com¬
is
highly leveraged, so
good results show up swiftly
there
as
be fewer marriages, and
Northwestern
&
Chicago and Northwestern
mon
1199342476805
holds,
prone.
While it appears
around 1953.
one
a
decline in busi-
prices, real estate, etc.,
Of
course,
hirths
are
factor; but they should
In view of the election of Geneia
Eisenhower
as our new President
veterans will receive other aovan-
tages and compensations, iron
which many manufacturers ant
merchants should benefit.
we
Hence
should watch birth rate figure:
f9r both pessimistic and optima
tic signals.
Volume 176
Number 5178
.
.
The Commercial and Financial Chronicle
.
(2329)
r
Steel
The
COMING
Production
Electric Output
and
In
Commodity Price Index
Food
Price
Auto
Industry
large
trend
of
previous week.
total
its
industrial
upward
production
rising
course
By A. WILFRED MAY
Dec. 19, 1952
for
the
slightly
nation-at-
above
the
Bond
Mountain
Aggregate
stantially below the level of
labor
force
THERE IS NO SANTA CLAUS—
Denver-Rocky
With Tax-Avoidance Gifts
Group of Investment
Association annual
Christmas
party
at
the
For investors
States
year ago.
United
of
will
reach
89,000,000
Commerce
predicted.
compare with 63,600,000 last month and 41,000,000
The 1975 projection "implies" an
average annual increase
Association
annual
the
at
Dec. 29, 1952
St.
1.3%, the department said.
This would be slightly under the
growth over the past 30 years.
Blue
of steel-using manufacturers is growing by leaps
and bounds, according to "TTie Iron
Age," national metalworking
Jan.
weekly.
they
Instead of relaxing pressure on their steel suppliers,
increasing it.
This is reflected by mill sales officials
frankly surprised at the continuing clamor for steel
are
who
are
from
nearly all types of durable goods fabricators.
aren't
as
sure
as
they were a few weeks ago.
If anything,
the steel market looks tighter now than it has for several
weeks,
declares this trade journal.
Where
The
is
answer
; gas,
freight
all
the pressure for steel
delivery coming from?
just about everybody.
Autos, appliances, oil and
is
classified
construction,
cars,
few front-line
and
military
hard goods are a
other less easily
hungry for steel, it states.
bulwarks of demand.
consumers
just
are
Auto makers have
as
plotted
16, 1953
themselves through the first half of 1953.
During the entire
they would like to build 6.5 million
and
this trade
Dinner
saving
cars
million
1.5
year
over-corrected
in
inventories
lines
several
are
that
better
had
than
fat.
grown
had
been
Christmas sales
expected.
Expanded
manufacturing capacity and renewed optimism are causing
exciting run on steel suppliers, "The Iron Age" observes.
General
cut United
Motors
Corp.'s
States auto
shutdowns
output about 5%
for
model
an
a
planning for
it, is inexorable.
In the second place,
prevalently popular tax-saving devices
through omission of material counterbalancing
factors, are not all that they are believed to be.
(New York City)
In the third
be
place, the actual impact of the tax
A. Wilfred May
ment
incidence
the
on
individual
situation
should
realistically measured, in lieu of sacrificing hard-boiled invest¬
considerations for a tax-saving mirage.
And finally, we
taking into consideration the general impact of taxation on
advise
Feb. 13-14, 1953
(Chicago, 111.) ;
the market
Investment Bankers Association
of
Edgewater Beach Hotel.
year-end switching between securities to register
"For
May 7-8, 1953 (San Antonio, Tex.)
of
13-16, 1953
Sulphur
Springs, W. Va.)
Investment Bankers Association
of
America
Spring
meeting
maintaining
a
paper
their
The
But
this
offset of
sell the
Sept. 14, 1953 (Sun Valley, Idaho)
an
Security Traders Asso¬
ass
omits
Unrealized
consideration
Catch
of
the
aftermath
with
89,924
were
the
94,886
cars
assembled
preceding week
in
new
equivalent
reduction
of the
of
later loss that
can
"tax-loss-switching,"
be
per se
registered.
and apart
week
surrounding circumstances, may (unlqss you are rescued by
death or a change in the law) well be merely a lowering of your
cost basis at the cost of brokerage commissions and transaction
Nov. 29-Dec. 4, 1953
(Hollywood, Fla.)
week,
compared
and
week
a
This
of America Annual Convention at
the
process
of subsequent offset
through reduction of cost
*
Hollywood Beach Hotel.
Continued
on
Only the General Motors shutdowns "prevented the industry
from
establishing
(cars
and
a
new
1952 (weekly) high of 150,000 units
trucks) the past week," said "Ward's". This year's
weekly high was in the closing week of October, when 146,654
and
trucks
were
rolled
out.
Last week
117,746.
"Sharpest plunge a week
"where change to '53
General
the
car-truck
total
NEW
ISSUE
>
agency,
Motors'
output against
a
decline
ago
came
model
at
Chevrolet,"
said
contributed to
output
SI 1,625,000
the
the
to
only 19% of industry passenger
more-normal share of around 42%."
car
New York Central Railroad
Nash and Studebaker preparations for 1953
model production
also reduced their production last week.
It
is
learned
Exchange
from
Commission
Commerce
that
a
joint
and
the
report
United
by
the
States
Securities
headed for
of 1953.
This
*
billion
in
Equipment Trust of 1953
and
Department
of
3Vs%
corporate outlays
for new plant and equipment
highs. United States companies have sched¬
uled such expenditures at an annual rate of
$28.3 billion in the
final quarter this year and $28.7 billion in
the initial three months
new
To be dated
Equipment Trust Certificates
January 1, 1953. To
mature
$775,000 each January 1 from 1954
to
1968
compares with
spending at a yearly pace of $27.4
the first half of
1952, and $25.7 billion in the third
issued under the
Philadelphia Plan with 25% cash equity
quarter.
The survey
stated
be
the
taxable capital gain if all goes well, and you
issue at a profit before your death; or if all goes ill,
Thus the net result
Investment Bankers Association
the
85,483 in the like
;;• year ago, according to "Ward's Automotive Reports."
are
with
added
an
taxes.
There
was
com¬
an
from
ago.
cars
loss.
approximate
at
the Greenbrier Hotel.
National
of
appended list of
similarly-priced issues arranged by industries, is typical of the
encouragement streaming from brokerage houses to swap issues.
It assumes that an accrued paper loss can be used :against an
outstanding gain to a maximum extent of 26%, or against or¬
dinary income up to $1,000 annually for five years.
American
(White
desirous
parable amounts and types of securities," with
Spring Meeting at the Plaza Hotel.
May
Investors
present position and still establish tax losses:—sell and buy
Texas Group Investment Bank¬
Association
aid to its appraisal and portfolio management.
of behavior without taking complete recog¬
nition of all the pertinent factors in "the deal" is the
prevalent
America winter meeting at the
ers
an
as
In the forefront
ciation 20th Annual Convention.
changeovers
last week from
our
some
the Biltmore Hotel.
trucks;
are far more optimistic than
they were a
Continuing high levels of retail sales, combined with
interrupted shipments during the steel strike last summer, have
year-end
In the first place, harmful impact
present tax structure, or anything
near
Baltimore
New York Security Dealers As¬
sociation 27th Annual Dinner at
authority notes.
ago.
16, 1953
on
saving.
from
Hotel.
Appliance makers
year
tax
literature
of
rage
18th annual Mid-Winter
Lord
feel constrained to offer four
quite
we
cheerless observations above the current bar¬
(Baltimore, Md.)
the
moves.
But
Security Traders As¬
at
a heads-you-winFortunately for his peace of
mind, if not for his understanding, ameliora¬
tion of his anguish is being vouchsafed to him
by outpourings of advice on various tax-
(New York City)
special meeting at the
Room, Bankers Club.
sociation
But many
ever-rising production line for
an
dampening of the spirits
profits, with the anguishing
particularly to the shorter-term
tails-I-lose game.
York
Baltimore
Jan.
Many steel people had expected first signs of easing demand
to start showing about the first of the
year.
This, they thought,
would forecast a
balancing of supply and demand about the
middle of the year.
It might still turn out that way, but the
people who have to say "yes" or "no" to anxious customers
of
speculator that he is playing
Yacht
rate of
Optimism
season
gross
reminder,
Christmas
Francis
Security Traders Association of
New
the
juicy
arithmetic
Security Traders
Club.
States
Department
(San Francisco, Cal.)
San Francisco
party
this is
that have been basking in the profits taken
during this year's leg
the long bull market.
For now at the year-end there looms
the other side of the medal:
Uncle Sam's cut-in on the
Albany
of
Dec. 19,1952
would
in 1920.
of
a
the
of
by 1975, the United
That
of
Hotel.
all-time
The
(Denver, Colo.)
Club
It also
continued to surpass the level of a year
output was, however, about 7% under the
high attained during World War II and at the highest
level in several years.
With respect to employment, claims for
unemployment insurance benefits rose slightly but were sub¬
earlier.
Field
Production
Business Failures
Bankers
continued
Investment
Index
J
The
Observations...
EVENTS
Carloadings
Retail Trade
State of Trade
outlays
spent
in
explained that the June-July steel strike reduced
in the third quarter by 10%.. This amount will
the
final
quarter
this.'
year
and
in
the
;Continued
subsequent
on
page
100
MATURITIES
1954
1955
AND
YIELDS
2.40%
1959
3.00%
1964
3.20%
2.60
1960
3.05
1965
3.225
1956
announce
1961
3.10
1966
3.25
2.85
1962
3.15
1967
3.275
1958
We wish to
2.75
1957
2.95
1963
3.175
1968
3.30
that
These certificates
has become associated with
us
in
Tucker, Anthony & Co.
1952
sale, when,
a3
Salomon Bros. & Hutzler
Drexel & Co.
December 17,
offered subject to prior
and if issued and
our
Corporate Bond Trading Department
Members New York Stock
are
received by U3, subject to approval of the Interstate Commerce Commission.
EDWARD M. CORLEY
Union Securities Corporation
Stroud & Company
Incorporated
Exchange
December 13,1932
,
page
106
5
6
equities for the time being, or are
limiting purchases mainly to pre-5 '
and guaranteed stocks and
Equities vs. Mortgages as
Savings Bank Investment
ferred
tain
Says savings banks
reason,
which the
By CARLISLE BARGERON
period of r'r
to lessen
It is a fact that General Eisenhower repeatedly emphasized
the risk that purchases will be
concentrated at a time when prices > during the campaign, both before and after his announcement
happen to be comparatively high.
that lie would go to Korea, that he had no quick panacea for
five
despite their higher yield and
Mutual savings banks have found
estate
mortgages
by far the
most desirable class of investments
Limits
available to them during the past
five years. All
savings
in
banks
the
i
n
The yield advantage of equities
is
banks
end
1952.
greater for mutual savings
the
savings
State
In
in
York
pre¬
stocks.
common
the first
of definitely evaluating
the various issues in the
campaign, of course, but in my opinion the
two which
weighed most against the party
that has been in power for 20 years, were
Korea
and Communism in the Washington
place,
total invest¬
severely
Savings banks can
preferred,
guaranteed
equities is
now
in
invest
stocks
common
only
mum
50%
undivided
and
the
at
The
increase in
their deposits
only $4.5
during
this period. So
was
billion
tax
only 7.8%,
dividend
on
income
compared with 52%
as
million
campaign I felt,
plain people
yearning
to punish the Administration on account of the
Korean fiasco, but there wasn't a full accept¬
chases
of
equities at
the
ance
higher yield profits and dividends in the future.
a
highgrade bonds. Since savings banks
have sought to step up earnings
of
because
increased
dividend
payments to depositors, rising ex¬
penses and the need for more sur¬
Equities
Risks of
Savings banks
at the
involves
do
than
time, that equity in¬
same
vestment
aware,
risks
greater
mortgages.
This
is
par¬
plus to keep pace with deposit ticularly true of common stocks.
In the first place, the risk of
growth, they have been among
the most active institutional mort¬ possible ultimate loss is greater,
as
gage lenders.
Mutual savings
mortgages,
tive
banks still find
class,
investors with
When
despite
as a
deposit gain this
again
once
mortgages,
-
been
year
invested
although
purchases
in
substantial
ferred
ally the
far
outlet for funds has been
new
provided
savings
for
the
the
first
action
of
banks
the
in
this
this
time
year
New
Legislature which authorizes
savings banks to invest in equi¬
The question therefore arises
mortgages will
continue
market
as
In
stock
prices
prices,
equities,
will
now
mand
in
mortgages
be put into preferred and
stocks, reducing the de¬
common
for
mortgages
ings banks.
among
sav¬
Thirdly,
especially
have
ings
suffer
may
when
serious
a
and
mort-
? saYin2? banks, we must
arst determine just how desirable
Gr2ef S4are\xas savin£s bank in¬
vestments.
We
know,
from
the
^nrta ^ ^ P3St fiVC? yearS' that
mortgages have proved quite demrable to
sayings banks under the
durfneBv
during this
Equities,
* ]lave PrevaiJed
period.
class, offer higher
yields and larger net rates of re¬
as a
turn after taxes than other invest-
S?V?
t0 savings
,
banks.
High-grade preferred stocks offer
average
day,
and
yields of nearly 4%
the
average
yield
to¬
of
a
their
re¬
earn¬
decline,
so
ultimately
prove
when
the
stocks
consid¬
those offered
are
purchased.
This risk is greater when
equities
are
acquired in
period of pros¬
perity when profits and dividends
around
ment
To appraise the relative attrac¬
equities
of
a
a
The
the
Banking
Depart¬
requires that 1% of the
cost of the equities be set aside
now
out of the income
future losses
or
as
a
reserve
depreciation.
for
For
examination
purposes, the equity
portfolio is carried at cost or mar¬
ket, whichever is lower, so that if
the
reserve
is
of
Because savings banks are keen¬
ly aware of these risks, they are
not purchasing equities with the
eagerness that has characterized
their
mortgage lending in recent
years.
Rather, they are proceed¬
ing with caution and circumspec¬
adopting equity investment
policies that are designed to min¬
imize the risks. A number of
ings banks
are not
funds
amortizations
tions
of
sav¬
purchasing any
receipts.
each
and
accomplish something and there is a belief
To pursue the Korean fiasco in the man¬
ner of futility with which Truman has pursued it is the height of
absurdity. The Truman policy has been that we must wage an
ineffective campaign else we will incite the Russians; we must
hope he will be able to
among
apply
purchases
to
many years
will
And
It
is
cannot
rival
as
they
are
mortgages
for
a;
we
or
limitations
The Administration's outward
;
.
attack in
total
on
income
tax, have- little
in
or
in¬
no
equity investments,
banks that do
buy equities to acquire
them gradually over a period of
to
will
years
extent
combine
which
to
to
the
curb
savings
is
can
waging war on Americans in Korea, but if we
with
really hurting her, it will add to her
strike back to the extent of
strength and
her
spur
much
makes
The
farther deters Russia
the
in
going
that
any
opinion alone but
my
Washington
both
in
argument
None of it
a rather
to attacking Indo-China.
on
which is not
sense,
opinion
widespread
circles.
so
shape
way,
political
military and
in
far
Korea
form is
or
an
and
no
insult to
intelligence.
bank
At most, equity
Indo-China is that China now
The reasoning in regard to
satisfied
funds will be diverted from mort¬
equities.
Iran. China might move on Indo-
•
and
the desire of many
want
China.
might "come in," might
Russia
because
bases,
Europe, might invade
attitude has been that it doesn't
it simply to the point of wiping
the war, extend
Chinese
the
out
in¬
savings
purchases of equities, the fact that
a number of savings
banks,'espe¬
cially those that do not pay an
terest
in Korea.
want to extend
banks.
Statutory
nothing anywhere, in Asia, Russia,
doing is accomplishing
are
even
,
serious
a
-
the story of Korea than
peddled to the American people. To do what
class,
major
as
mutual
far?
tired of going even this
that which has been
equities,
as
were
we
Manifestly, there is something more to
Y
possibly become
of
vestments
afraid to go any
said
-1' v
thus evident that
attractive
doing
anybody. We make it plain that we
farther. Why would it be any different if we
give any spirit or heart to
are
the
Equities
Mortgages
withdraw because we would take
It is difficult to see how what we are
can
reach 'for
of
amount of territory, apparently just
going.
told that we can't
We are
the heart out of Asia.
come.
Position
limited amount of
amount of weapons, fire a
limited
enough to keep the war
year
in
:
Relative
a
-■
portfolio alone will be far larger
in
amount
than
the
total':that
equity
them that he will.
ammunition, cover a limited
satisfac-*
held
mortgages
been more gracious.
of the General's well wishers now who
many
are
amorti¬
of
received
there
So
it had a
is so bitter
this is the reason Mr. Truman
Governor Stevenson hats
about it.
only the
savings, but
satisfaction
from
I
am
not
privy to any plans General Eisenhower may have or
to any
of his thinking on this subject, and if I were, I
reveal
them.
attract
would not
only a rel¬
atively small percentage of sav¬
ings bank investment funds from
ground, because it was, in general, the picture he got from the
mortgages.
military leaders in Korea
the
To
furds
extent, also,
some
will
that
invested
be
by savings banks in equities would
otherwise
rather
have
than
ingly
into
gone
into
attractive
bonds,
outstand¬
an
class
of
from
room
invest¬
number of
law
savings banks fpr
The banking
virtually unlimited
reasons.
permits
investment in mortgage loanswhen
and
FHA
VA
loans
are
included.
Savings banks have evolved strong
mortgage lending organizations
of long and
possessed
varied
ex¬
perience in lending under all kinds
of
economic
trast,
be
the
up
conditions.
By
in
most,
only
common
up
Continued,
to
on
State
The strategy in the Korean war
military; it has been dictated by Mr.
Department.
Far Eastern
later
must
natural
affairs,
fall
market,
He could go
until
not
So there will be plenty of
in which the General may operate to accomplish
ing of Representative
into
we
a
of
highly respected
Chinese
orbit
we
Minnesota,
one,
to
something.
have the
an
warn¬
expert on
that Japan sooner or
China
survive.
is her
cannot possibly supplant it, Mr. Judd warns.
further and
say
that
trading between East and
the sphere
accomplished,
Walter Judd
the
back¬
no
stability
can come
to Europe
West is resumed, but Europe is
of his experting.
con¬
stocks
5%
the
against this
will be
what he has gotten and will get
and
leaders here.
And when that something is
All of
to only 3% of assets can
invested
and
does
whatever he
has not been dictated by the
ment for mutual
a
But
the military
Truman
mortgages.
Mortgages remain
inadequate the bal¬
depreciation in the equity
portfolio is charged against sur¬
plus or undivided profits as com¬
puted for examination purposes.
ance
and
investment
tion,
#k*A" address by Mr. Casazza before
tf','
Association of
* 7952.
' ,nC" New y°rk City, Dec.
New
zation
political advisors, that effect was
Governor Stevenson think
Mr. Truman and
tremendous effect and
not
new
political effect, and there is no doubt in
his going had its
calculated.
The
of
situation at first hand. But the statement
mind that on the part of his
my
sav¬
reinvestment
gages to
peak.
about
such a trip, that he
not to be expected from
was
just wanted to see the
them' by
1952.
reflects
investment
the
in
fully accepted
that he would go to
followed this up with repeated statements
is true that he
It
v
that too much
present
mortgages from
banks
also
proved
that the yields realized
by invest¬
Finally,
of
con¬
depres¬
corporations
many
dividends
are
How Attractive Are Equities?
tiveness
are
vulnerable.
duce
ors
invested
priority.
proverbi¬
past business
whether
aitherto
ings
increase
million
for
senior
most volatile of securities
common
very
are
as attractive as before, or erably smaller than
a large part of the funds
,
fi¬
York
btate
whether
sions,
hold
receive
so
Secondly, stocks
cerned.
ties.
encounter
stockholders
positions and
so
made.
by
stocks.
$950
demand
represent the residual interest in
the enterprise. Creditors and pre¬
of
corporate and taxbonds
also
have
been
exempt
state
common
corporations
more
£
ls,shown by the fact that the
bulk of the
A
by the past experience
attrac¬
nancial difficulties, common stocks
investments than bonds,
feel the full brunt because they
the rise in bond yields.
as
has
shown
of
will
and
Bargeron
Korea.
mortgages by $1,186 million in
1951
about
well
are
of
stated
dramatically
he
when
Carlisle
the alternative. He became a
of Eisenhower as
alternative
time.
Of
this
maximum,
$406
Alfred J. Casazza
on interest income.
million may be put in common
Common stocks offer a further
mortgages
stocks, including shares of the In¬
been to savings banks during these advantage in that corporations
pay
stitutional Investors Mutual Fund,
years, therefore, that they have out as dividends merely a part of
Inc., which is being set up by sav¬
invested not only all new deposits net
earnings. For all business cor¬
ings banks, in accordance with the
received in them, but also a sub¬
porations, dividends this year con¬
New York law, to provide a me¬
stantial part of the proceeds de¬ stitute
only a little over half of
dium through which they can in¬
rived from the reduction,of $2.4
earnings available for common
vest in equities jointly to mutual
billion in their government secu¬ stock,
according to the U. S. De¬
advantage.
rity holdings.
partment of Commerce. The bal¬
The savings banks of New York
Mortgages have proved so at¬ ance of earnings, reinvested in the
State increased their net holdings
tractive to savings banks because business, may lead to increases in
they have provided
travels and talks with just
business and political leaders, a
and
attractive have
than could be obtained from
early part of the
the
In
in my
their total possible pur¬
on
of
outcome.
maxi¬
of their surplus
profits, or 5% of-
Interest
effective
way
no
importance
government. Corruption figured in the picture
of the general mess, but Communist coddling
and Korea, I believe, had most to do with the
,
limited by law.
and
is
There
the
which
to
of New
banks
and
ment
extent
likely to invest in
are
ferred
the
which pay
taxes.
of 1947 to Nov.
1,
far
estimate
to be a terrible
ing it.
assets,
whichever is the lesser
Federal income
sum.
Moreover, a lower limit of
income, except
one-third of the surplus and un- •
from tax-exempt bonds, is fully
divided profits or 3%
of assets,
taxable for such banks, whereas
whichever amount is less, applies
they are entitled to a dividend
to common stocks.
credit of 85% on dividends from
For savings banks of New York ?
stocks, except for certain public
State, this puts a limit of $637
utility preferreds. This makes the
mortgages by
$6.1 billion
the
equity in¬
on
vestments.
ho1dings of
from
mortgages,
to be deducted from
are
the income received
-
their
creased
Unlike
substantial servicing
no
costs that
United
States
5%.
are
of
affect
can
the New York Stock Exchange
over
bringing the war to an end. But there is going
disappointment if, in a reasonable length of
time, he doesn't evolve some method of end¬
-
equities and the
a savings bank's
willingness to buy them freely, we
representative group
of invest¬
grade common stocks listed
is
as
Equity Purchases
on
that
risks
ment
there
so
years
advantages
saving bank investments.
on
ten
or
over a
year
Keeping in mind both the yield
of statutory and other limitations, equities cannot become
serious rival of mortgages as
each
stocks
lower service costs, are not purchasing them with the eagerness
which characterizes their mortgage lending.
Concludes, be¬
cause
is invested in
sum
same
Thursday, December 18,1952
Washington
Ahead of the News
stocks.
store
resorted to the prin¬
Others have
of greater risks in
are aware
chain
ciple of "dollar averaging," under
After noting increase in mortgage holdings of savings banks,
due to attractive yields, Mr. Casazza discusses relative attrac¬
tiveness as savings bank investments of equities compared with
equities, and for that
retail
...
From
*
like
commons
utilities, food companies, and cer¬
By ALFRED J. CASAZZA*
mortgages.
"defensive"
few
a
Vice-President, Savings Banks Trust Co., New York
real
Chronicle
The Commercial and Financial
(2330)
at
asa
page
95
is
the
this, however, is not of the General's making; neither
Korean
fiasco.
But
in
the
latter
case
he
is
expected
to
accomplish something and there will be considerable of a let-down
if h*=>
rlnpcn't
Volume 176
Number 5178
The Commercial and Financial
Chronicle
...
(2331)
made
Progressive Tax Changes in 1952
within?'mWtavs
60 days
By VICTOR R. WOLDER*
-
pnor year.
Attorney at Law, New York City
Mr. Wolder reviews
revisions
and
amendments
of
As
laws •%
tax
As
look back
we
this past
over
;
of-
revisiOns
have
been
made
in
the
reorganization
e
v
e
been
of
e.
days
simpli¬
ensions to the
derived
been
the
fied
have
taxpayer
ing plan,
too
lenient
R.
Wolder
too
nor
While
which
were
has
been
not
the
passed
Reinstatement
too
few
were
of
Excessive
.
intent
and
desire
give retroactive
con-
-f
tax
into
being.
For
ex-
ample, taxpayers who took excessive depreciation
deductions during any taxable year
commencing
1932, and received
no
tax benefit for the deduction
may
now
elect to have the excessive
deduction
to cost basis.
reinstated
This election to
re-
l™?teTo
must be made by Dec. 31,
1952.
give
an
example:
cost of $100,000.
a
Sup-
It took
deductions at the rate
10%
per
annum,
basis
by 1948.
tion
v/as
Let
had
a
that tax-
assume
louueo
Let
unci
of
year
annually.
a
entirely exhausted
us
losses^ after deprecia-
..cva
each
us
at
ticpictia-
least
tax
an
only 5%,
would
tal
made
be
an
into
the
the
age of
for
employee
lump
one
by
to
reinstate
of
$50,000,
to
depreciation
!i2^e0i_n'
This
of
Hotel
0
Court
case
,
tne
decision
Supreme
the law
in
famous
made
(or
by
the
in
the early
in
the
Virginia
1940s.
taxed
as
of
the
designed
from -being
Armed
to
Forces
amend-
an
them
prevent
deprived
of
the
in-
tax
come
provision for non-recogof gain from
the sale or
nition
exchange of
a
residence.
As
when
a
taxpayer
sells
know,
income.
In
the
Revenue
Act
reflected
e
built
one
the
in
you
his
purchase
home made within
t
sale
of
within
the
18
one
old
of
year
one
months.
or
Of
this provision of law was
little hard on men and women
course,
a
who went into
and
the Armed
particularly
those
their homes for this
of them have to
whether
Grafted.
they
Forces
who
reason.
serve
over a
volunteer-
or
sold
Most
year
are
Because of this, Congress
..
*An
address
time
at
Corpo-
interim, his property
improved; the Corpora-
completely written off the
a
deduction for
quired
from
made
further
in
you
apprecia-
may
t
.
by Mr. Wolder before the
Association
of
New
inc., New York City, Dec. 4, 1952.
York,
by
Government,
or
may
the
of the ad-
income (instead
contributions made
gross
for
charitable,
religious,
of
to
educational
types of organi-
7n(in«
ac-
zation.
\
and
Amortization
such
we
all
of
the
the
payer makes
are
_rHr
dies
during the
on
„
erty iesults 111
had
employee,
he is a
farmer. Nor does this section deal—
tion of tax
mated
least
tax
an
as
though computed,
of
taxpayer's status
exemption and credit for dependents on
the date for filing the estimated
declaration, but otherwise
on
the
basis
on
his
the
of
return
facts
the
for
shown
preceding year."
Giving consideration
a
of
business
rwi,,r.ti™
15
each
year;
he
or
well,
officers,
rank
portant. Penalties from this
appearing
are
more
the
over
amended
of
taxprop-
fn
the
will
thp
the
life
announcement is not to
a
large
number
year,
of
up
pians
in
once
competitive
ent
time
benefits,
such
is
practices.
overcharge under the Emer-
an
penalty
of 5% of each installment due but
unpaid, plus 1% per month of the
lowed to be deducted because r;
did nc>t frustrate any ' sharply '
defined policies of the Act. Itemri
which generally enter into the
c?st °* 1?°ods,so111d
1
recog~
mjs<?d although they are^ illegally
unpaid
ment
of
amount
due—until
a
each
total
installof
10%
penalty is reached. For
to be due
whon
on
rWiamtirm
is dulv made and filed
in
duly made and tiled, in case of
case 01
a
failure to pay an installment of
thp
PstimntpH
tav
whpn
Hup
frv
cept where there
cause
and
not
was
wilful
reasonable
neglect),
?
with
goods sola.
Ine reason is easy
un^Ls. ai}?'. al.though so™e~
difficult
its application,
times
matter
gress
.
in
Deductions
Deauciions
ot
can
for
ior
exnenses
expenses
Continued
a
as an offer to sell or as an offer to buy the
offering is made only by the Prospectus.
be construed
securities
sole
Price 100%
250,000 Shares Common Stock, $1 Par Value
a
profit-sharing
Price $16.75 per
item which has
one
,
the
proprietors of
Qn this subject of
p]ans, there is
share
fceen the
particular subject of litjgation, and a recent case brings
this point into sharp ..focus.; The::'
jaw says that a contribution for
a
.»
taxable year must be made within
and
f.edini?
dated
vear
membered
back
Rut
that
it
to
trust
pre-:
the
must
Copies of the Prospectus may be obtained from the undersigned only in states in which the undersigned
qualified to act as a dealer in securities and in which the Prospectus may legally be distributed.
is
60 days of the close of the taxable
year
hp
tp_
cannot
be
deemed to have been in existence
jn
any
taxable
a
year
actual
execution
rrii,A„„i'
„„
tnent. Therefore,
on
herein mentioned.
due December 1, 1967
plus accrued interest from December 1, 1952
prior
to
F. Eberstadt & Co. Inc.
its
>
and
•
establish„
«.
December 11, 1952
.
in the first year
of its existence, a trust cannot be
,
■*
are
are
a
a
statutory grace.
Con^
allow them or not. But
tax
to
pay
made for purchase of good:;
be
pel'^ltt^ to stand ?s cosi
wlU
is used.
PctimntpH
Thus, over-the-ceiling
permit
available
merr
gency Price Control Act was al~
a
$5,000,000 5% Convertible Subordinated Debentures
In
The
not
and
cause
At the pres-
coverage,
not
were
fact that the payment is unethical
Standard Coil Products Co, Inc.
and sole proprietors to
pension and profit-sharing
for themselves, with sub-
stantial tax benefits.
there
cases
deductible if made in the ordinarycourse
of business, particularly
where it is necessary to meet
file
partners
set
in
with
that the sub-
which
source
more
year
wilful neglect) results in
anv
any
improvement,
addition to this. Congress has urider
consideration
at
this
time
legislation
and
the Tax Court decisions,
timated declaration (except when
The
the
and
proper'
does not condemn its deductibility,
Deduction to cover penaltiesfoir
unlawful conduct are generally
each disallowed. For example—penal-
a deductlon to the the estlmated tax when due (ex-
spread
This
un-
so.
There are so many tax benGfjts whjch result to the
employer,
the
to
estimated declaration is very im~
do
the
amount at
great
basis
as
the
0n
apply where the estipaid "is
due to reasonable
•
qualified profit-sharing plan
tax-exempt trust ought to
as
or
jng with substantial underestima-
a
employees,
this,
taxpayer
a
year
employer
the possibili-
compensation
There
as'to
a
remaining ties for violation of state antiafter the original is filed.
trust laws or for violation of FedFailure to make and file an es- ^aLor state laws. But then againy
found
generaliv
generally
i
voci1hc
expectancy
j.jle
difference
lesser
any
vvj10 ^as not studied
ties 0f deferred
is
tew exceptions
the
caso
where
are
the
purposes
of computing
the%^ad®'
penalty, the correct tax eventually
^
Leasehold
corporation
a
1
made to the plan by the
frankly,
know,
know,
improvement
an un-
assets
of
Improvements
as
As
be
quarter
maximum
nn
value
in
March
may
'
and other similar
an-
nn
in-
year
not be
government
maximum of 20%
a
amendment
havincr
v
some
dividual taxpayers must be filed
#
taxpayer
a
cases
directly against
States
sue
been acquired out of contributions
with
is
1952, the law was amended
that individuals may deduct up
15%)
a similar resuu
a similar result
when securities of the em-
Very
refund
tax
suit
cannot
justed
uy
by pruviuixi" that
providing uiul
rornnratinn
6%
or
whichever
Revenue to obtain penalties and payment not made in violation©}*
interest from taxpayers who fail Federal or state law, or in viola
the
a
distributed
a
taxpayer
Charitable Deductions
employer's conNow, in 1952, Congress
tribution.
has
estimated
dealing
deductibility of illegal paythought to estimated declarations, ments. Foremost among these waii
A much greater effort is develop- one handed down by the Supreme
ing in the Bureau of Internal Court which said that a rebate,
It is appropriate to give
In
se-
if
if
the
of
tion in value of such securities of
rornnration
corporation
ference
During the past
Estimated Declarations
sued
had
taxpayer's
declaration is less than 80% of:
his correct tax, then he is penalized an amount eaual to the dif-
top of this, it is an effective way
to reduce accumulated surplus.
Deductibility of Illegal Payments
jury
you
the
"
of the employer corporathere shall be excluded from
unrealized
trial
when
you
curities
emnlovev
employer
favor
"T re
re-
a
total of 10% maxi<
*
a
nenaltv is reached
mum
higher with respect to personal
a
might be required to file one on
advantage to
the
taxpayer, any one of the other three estiIt all depends. For example, when mation dates, June 15, September
you
sue
the
Director, you can 15 or January 15 (of the next
recover
Court costs as well, but year).
An estimated declaration
to
the
tax
a
know, juries
to
-
Accountants
the
to
rental. In the
themselves,
business.
from
this
—
it
an
tion to the employee included
income
we
Frankly, this
so
oartners and
new
lease
stock-
the property. He
ment, until
declaration for calendar
1951, an amendment to the law
provided that where the distribu-
residence, the gain thereon is not
are
ration
controlling
owns
per month of:
the unpaid amount of the install-
jury
when
longterm capital gain and not
ordinary
taxable to the extent that the proceeds of sale of the old residence
a
the
again
can
important point, be-
an
as
the ",United
a
jec^ shou]d not be overlooked.
Forces
the beneficiaries of
ment
the
bailment, plus 1%
to properly file or to pay their tion of a sharply defined Federal
estimates when due. An estimated or state public policy, is properly
employment, the
be
employees,
r
rmed
are
improveparticular advan-
simiiar penalty is added, i.e. 5%
0f the unpaid amount of each in-
would permit taxpayers to have a
to
from
is
management,
Sale of Homes by Members ot
Members
lease,
holder still
against the government. Congress
is now considering a law which
his
to
cop™encm§ der
change
counteracts
mfamous)
Judges
could when
you
tendency
is
income
rep-
taken and obtain depreciation de-
now
the
was
cause
and
sum
reason
as
This
are
f-p
or
excessive
with 1948.
the
the tage where the owner of
situa- property happens to be the
the Collector of Internal Revenue,
re-
65, leave
permanent
or
appreciation
sum
trial,
plan,
severance
nlnvpr
;
allowed
lesenting
of
up
fund then you can obtain
Usually, this is not until
distributable in
occurs
$5,000 annually,
set of facts,
taxpayer
cost basis the
of
of Internal Revenue for
im-
for
deduction
JIf£1™
of depreciation ployer corporation haying
realized
this
life
merit. This is of
Congress has passed a law which
says that if you sue the Director
which says that if the tobenefits under the plan are
also that
assume
a
advantages to be achieved
$5,000
rpnenn
hiprat
reasonable rate
Under
Rev-
165,
one
$10,000 ,the
or
annually, with the result that its
payer
iyejs,.
employees, obtain
disability,
P?oo taxpayer ac(luired assets in tion,
?P^cJla
be
the
over
cost and obtained
coverage.
the
of
the term of the lease instead
of
tion has
discharged
resign after, perhaps, 10 years
Among the numerous
or
Con-
of
ta^ relW
amounts
Internal
plan
company
total
taxpayers when inequitable sit-
with Jan. 1,
under
and the beneficiaries need not
the
the Tact that it reflects the
come
be
pension plan, or a
for the benefit
a
they retire at the
.
.
1938 at
or
bonus
the
to them.
-
uations
over
This has some advantages. It has it. And under a special section of
worked well in the past in the the Internal Revenue Code the imUnited States Court of Claims; provement is not treated as inPei'haps it will work well in the come to the controlling stockholer
Tax Court.
at the time he receives it upon
<
' Jury Trials
the termination of the lease. On
port any income until their inter-'
needed.-est under the plan is distributed
Depreciation Deductions
gress to
the Corporaimprovement on
leased property, then the cost of
the
improvement
is
amortized
the
stead
laws
Most significant of these changes
tinued
taxpayer,
has been
set up a profit-shar-
contribution
there
legislation,
„
trusts
the
Cor,
erects
now been appointing Commissioners to hear the cases, in-
1
ex-
benefits to
Under Section
can
mediate
taxpayer.
much
stock
of
the
on
of
the
by
^
Victor
rough
165
owned
tion
the
by beneficiaries of qual-
Code.
enue
been
neither
tax
tax-exempt
Section
courts
was
of 90
excess
indefinite period.
an
poration
has
order to such
or
building the improvement
property
0n
agents have been rejecting cases,
and sending them "upstairs" and
"upstairs" is getting crowded. On
top of this, the Tax Court is
jammed. At least there, the Court
date
Congress continues to make
legislation
cost
for
or
call
a
(Halsam
year
is
Employees' Profit-Sharing Trusts
ogressive
of
law
from the
period in
a
the. Bureau to speed
Tax
cases. This
contion is, in my opinion, constantly trolling stockholder of the
Corponot-ex--Setting worse. More and more, the ration. At the end of the term of
the
period
a
years
would
Processing of
to '18
year-
in
the
pursuant to
by
Congress. And
to
for
if
duty for
enacted
is
one
taxpayer serves on
active duty in the Armed Forces
Some
has
.
l°r
speeded
fied.
tax
sale
have
or
p r
the
suspended
proce¬
dures
up
u
n
Some
of
limitation
ceeding four
of the Bureau
of Internal
R
running
months
stead of
much change as yet. Perhaps, there wid be some lasting
law which said that the
a
two
and Schunk cases). Briefly, if in-
Bureau
bureau
not too
trick
was
Court decisions this
;*
r6sl
higher deduction—howdiscussed in
3 m
ever
Revenue has been progressing In
many areas the new set-up has
been installed.
Actually, there is
of business.
passed
One advantage-the way to obtain
year
nf
r
of the close of such
-
i
year, we must say tnat it has been
a
year of progress.
Long needed
prior
a
all know, the reorganizethe
Bureau of Internal
we
tion
decisions, among which were: (1) reinstatement of exces¬
depreciation deductions; (2) Employees' Profit-Sharing
Trusts; (3) abandonment losses; (4) net operating carry- 4
back losses, and (5) tax status of
property held primarily for
sive
course
to
Reorganization of the
and
sale in regular
retroactive
7
page
9%
&
The Commercial and Financial Chronicle...
(2332)
Thursday, December 18,1952
WThat the
Recent Inflation Developments
tighter monetary pol¬
then, was to break the
did,
icy
that
threat
of
ume
In Western Europe
thus
and
already
Western European
the United
in
as
countries,
States, there
no
longer prevails the same anxiety
about the continuance of inflation
existed
as?
months
ago.
In most
tries
ward
and
rate
with
3%%
balance
of
Consols). What is
it has meant
abandonment by the Bank of
(rate
on
important,
equally
prices
had
been
the
halted
by the
gold and foreign exchange,
the
deficit
in
this
In
future
the banks which
to
meet
demand
able
England of its war- and
end
of
and
the
rent
been
of
1951,
tendency,
Treasury
fixed rate.
the
in
steps
Nevertheless,
these
direction of
a
return to monetary
Vera Lutz
cept for the
malaise
has
continued
living in some
rises in the cost of
themselves
by
expected to cure the economic
be
ex¬
a
cannot
orthodoxy
falling
slight
all
buying
by
Bills offered to it at a
stabil¬
even
or
market
has
period
a
near
ity,
cur¬
year
the base June,
converted to
1950=100,
the
divide
may
we
major countries into three groups,
arranged in order of the extent of
the
price rise during the first 18
The top
months following Korea.
showing the highest price
over
that
period, contains
group,
rise
France and Sweden. In France the
level
December, 1951, but had
to 148 in
back
fallen
this
100 in June, 1950
from
rose
this
level
same
middle
the
the
Sweden
In
year.
by August
140
to
from 100 to 143,
rose
they
actually
so
in
of
level
ly speaking, what the new mone¬
tary
banks
ment is
the
and
to
govern¬
offer terms
corresponding
issues which
to
the
willing to fund part of its
floating debt
on
unless
are
allow them
long-term
attractive enough
to
be placed
with
pared to
see
interest rates
gilt-
on
edged securities rise still higher
than the present level, if further
inflation
is
to
avoided
be
in
available to them via the market's
from
of
Bank
the
done
was
accommodation
England. What
to
access
easy
to cut off this easy
was
access.
We may
taken.
Among
problems, first place should
probably be given to the inflexi¬
bility of the production structure,
due to the lack of mobility of la¬
at
note that the total vol¬
far
so
these
bor
Stability in Britain
Into
fall Belgium,
Germany,
the
United
group
that
between industries.
Here
we
touch the balance of pay¬
once
ments
problem.
For it is the
re¬
ume of bank deposits, movements
current crises in the balance of
the Netherlands., in which are normally taken as payments that are the mirror in
indicative
of the movements in
The wholesale price level of the
which Britain's adjustment diffi¬
United
Kingdom,
for
example, the money supply, have been very culties are most dramatically re¬
rose from 100 to 120 and fell back
nearly stable in Great Britain not flected. There are
already signs
to 126; that of Western Germany only since last autumn, but ever that the
rising trend in the vol¬
since the middle of 1948; and it ume of
rose to
132, and was still at this
exports which has been
Western
and
Kingdom
level in September of this year. In
lowest
the
Italy and
Switzerland, with wholesale price
movements
roughly
similar
to
those
of
The
group
come
United
the
States.
in
arresting
of
1952
the
rapid rate of price rise which had
prevailed previously followed the
adoption in France, Sweden, and
the United
Kingdom of stricter
credit
policies
With
1951.
Western
lands,
Germany,
active
of monetary
combating
moment
that
policy
least,
there
is
money"
"easy
"tight
longer
over
•»
that
and
countries
the
the
which
much of the post¬
some
of these countries
must, however,
exaggerate
either
tightening
screw,
or
they
are
the
of
or
can
not
to
of
faced.
In
remove,
the
the
which
case
of
Great
as a
Britain, we may say that,
break-away from two decades
address
by Dr. Lutz before The
American Assembly, Arden House, Harriman, New York, Dec. 6, 1952.
come
of
since
to
a
halt.
German
war's
the
end
has
With the return
and
Japanese
compe¬
June, 1950 and September, 1952
was
only 2%. The near stability
in the volume of money
existence—to
however,
mean
does not,
that the volume of
monetary demand remained stable
this
over
a
period. There has been
substantial movement
very
up¬
wards since the end of the
war
rate
money
of
turnover
supply,
after
reduced
by
this
below
wartime
in
was
it
was
of
23%.
and
to
of the
money
whereas
2.2, in
in
1946 it
1946
a
the
especially by businessmen,
by 1950 it had climbed back
1.9,
a
figure
which
13%
level.
Consumers'
are
still
high,
below
was
still
the
pre-war
cash
balances
presumably
abnormally
that the gradual unload¬
ing of these is likely to be suffi¬
cient
for
so
to
take
care
of
the
growth
production, at constant prices,
some
time to
largely
for
capital
goods
shifted from the consumers' goods
industries into the capital goods
After
some
demands
very
customers
con¬
over
only about 1.7, representing
fall
potential
or
At the present time the
of these customers are
labor and other resources must be
that,
about
customers
overseas.
been
A rough calculation of
the income velocity
1938
adjust
level
controls
shows
to
had
ually been removed in the post¬
supply
ready
normal
rate
the
ditures, controls which have grad¬
years.
be
her output to the demands of her
rather than for consumers' goods,
and it is widely recognized that
the
of
sumers' and businessmen's expen¬
in
*An
evident
tition, it is increasingly necessary
for Britain—dependent as she is
on foreign trade for her economic
ances,
extent
by
expressed it¬
self. In fact, the increase between
pressure
we
the
difficulties
therefore,
index,
of the post-Korean
velocity gradually rose as the re¬
sult of the unloading of idle bal¬
monetary
the degree to which it
removed,
economic
be careful
this
source
inflationary
seem
between
in
not
war
would
it
of
the
at
period.
For
has
means
a
countries
money"
had existed
weapons
And
no
had
resort
everywhere
as
division
in
Nether¬
the
inflation.
at
marked
the
the
of
use
of
already
earlier
elsewhere,
and
the
war
autumn
measures
somewhat
been had almost
now
to
the
in
the
introduced
is
that the
come
without any
increase in the volume of money.
industries, if the export level is to
be expanded or even maintained.
One, old-fashioned, inducement to
greater mobility of labor would
be larger wage differentials be¬
tween
must
the
sectors
be attracted
to
which
and
labor
those from
which it must be drawn away: but
under present conditions it is
scarcely
possible
industries
out
to
bid
provoking
for
up
individual
wages
with¬
all-round rise.
In order, on the other hand, to
induce labor shifts by means of
monetary policy, the authorities
an
would have to restrict credit very
much
drastically than they
to the present—to
enforce, that is to say, a degree of
have
more
done
curtailment
money
on
up
of
credit, and of the
supply, which would
press
total expenditures and on the
Continued
on
York 15,
N. Y.
Natural
Prospects
Gas
Analysis
—
—
Sutro Bros. & Co., 120
Broadway, New York 5, N. Y.
Over-the-Counter Index—Folder
showing
an
up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stock#
used in the National Quotation Bureau Averages, both as to
market performance over
Quotation Bureau, Inc., 46
New York.
and
yield
*
York 4,
Railroad Switches—Leaflet of
13-year period—
Street, New
a
Front
National
suggestions—Vilas & Hickey, 49
Street, New York 5, N. Y.
Wall
Service
Security Analysts
For
—
Brochure describing newly
Co., 52
developed service ask for Booklet C—Georgeson &
Wall
Street, New York 5, N. Y.
Rates
Tax
Booklet setting forth current Federal and
—
State
original issue and transfer tax rates—Registrar and
Transfer Company, 50 Church Street, New York 7, N. Y.
stock
Tokyo Stock Market
Quotations—Bulletin—Nomura Securities
Ltd., 1-1 Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo,
Japan. Also available is a tabulation by industries of divi¬
dend earnings as of half-year business term ended Sept. 30,
1952 for Japanese securities.
Co.,
•
•
•
Paper Mills—Data—Moreland & Co., Penobscot
Allied
future.
than
Latin-America
York, Pine Street corner of Nassau, New
New
the
Moreover, even if the renewal
by increases in the total volume
of inflationary pressures continues
of bank lending to the private
to
be prevented
by appropriate
sector, a danger which, it was
monetary and public debt policies,
feared, could no longer be held in
Great Britain
is left with very
check by mere exhortations to the
serious problems which, were they
banks to exercise restraint when
to
depend on monetary policy
the means for financing the addi¬
alone
for their solution,
would
tional
lending were
constantly
require much more drastic action
and stood at
August.
the
on
Britain the public. This means that the
Broad¬ government may have to be pre¬
which Great
long been afflicted.
by
policy in Great Britain has
accomplished is the removal of the
largely due to the reduction of danger, which existed prior to
last autumn, that further infla¬
food subsidies. On the basis of the
wholesale price indices, in each tionary pressure might be exerted
countries, notably in Great
Britain where it was, however,
of the
case
it—unless
post-war call in loans from the private sec¬
practice of always standing ready tor—only if the Central Bank pro¬
to provide additional cash to the
vides new cash. It is likely to fall
of
trialization
of
as¬
fall
be
Highlights—Brochure review indus¬
— The
Chase National Bank
Latin-American Business
the
may
will
Street,
New York
which it
will not continue.
on
Utilities—Analysis—H. Hentz & Co., 60 Beaver
4, N. Y.
Electric
payments,
must be hoped
New York
6, N Y.
the
ing, and the proceeds of the sales
of
sociated
in the long-term
414 %
With
appraisal—Talmage & Co., 115 Broadway,
to their
surpluses, in Great Britain, the
government is again exercising a
demand for new finance, which
has temporarily been largely taken
care of by the overseas
borrow¬
in the
to nearly 2^2%
Vz%
about
to
up¬
move¬
ment in
rise, between the autumn
the autumn of 1952,
a
1951
Treasury Bill rate, and from
coun¬
the
meant
slightly.
reappearance, since 1951, of over¬
all
budget deficits, rather than
ditions, the change is impressive.
In terms of interest rates it has
from
declined
even
of a new approach
Convertible Bonds and Stocks—Discussion
squeeze
which in the last few months has
of uninterrupted easy money con¬
of
12
the
for
the following literature:
send interested parties
to
future,
must remember that
we
the
is
has been on
bank credit to the private sector,
have subsided. Notes reversion to orthodox monetary
policy in countries where such had been discarded over long
period. Asserts there are other serious problems than monetary
policy, as need for greater mobility of labor, decline of the capi¬
tal market, and higher wage demands by organized labor.
mentioned will he pleased
that the firms
It is understood
As re¬
source
This
prospects
far
so
pressures
In
Recommendations & Literature
source of
new
enough achievement.
however,
by end of 1951, she concludes such
flation in most countries
Dealer-Broker Investment
should
impor¬
gards
Citing halting of in¬
outbreak.
from
an
exhausted.
tant
inflation spurt in Western European coun¬
new
deriving
create a
pressure if the first
be
tries that followed Korean war
of
would increase,
the inflationary
money, or
Conference in Rome, 1951
Mrs. Lutz traces
volume
the faster spending of the existing
International Credit
Formerly Economic Adviser to the
total
money,
add to
pressure
D., Princeton, N. J.*
By MRS. VERA LUTZ, Ph.
the
bank lending, and with it the vol¬
page
87
Build¬
ing, Detroit 26, Mich. Also available are data on Industrial
Brownhoist, L. A. Darling Co., and Monroe Auto Equipment.
Aluminium Limited—Review—James
Richardson & Sons, 173
and Royal Bank
East, Winnipeg, Canada,
Building, Toronto, Canada.
Avenue
Portage
American Marietta Co.—Analysis—A. C. Allyn and Company,
Inc., 44 Wall Street, New York 5, N. Y.
Boeing Aircraft—Data in current issue of "Gleanings"—Francis
I. du Pont & Co., 1 Wall Street, New York 5, N. Y. In the
issue of "Gleanings" there are suggested "packages" of
same
stocks; also available is a list of 40 "Tax Loss Selling" Type
stocks.
Company
Carborundum
—
Analysis
—
R. M. Horner & Co., 52
Broadway, New York 4, N. Y.
Gas
(Tennessee)
Chattanooga
Company—Analysis—Sheridan
Bogan Paul & Co. Inc., 1528 Walnut St., Philadelphia 2, Pa.
Co.—Memorandum—Sincere & Co., 231 South La Salle
Crane
Street, Chicago 4, 111.
Erie
&
Forge
Steel
Corporation—Bulletin—de
Witt
Conklin
Organization, 100 Broadway, New York 5, N. Y.
Falstaff
Brewing
Corp.—Bulletin—J.
R.
Williston &
Co.,
115
Broadway, New York 6, N. Y.
Fibers, Inc.—Analysis—F. L. Putman & Company, Inc.,
Glass
77 Franklin
Water
James
Annual report
—
—
Indiana Gas &
Co., Inc., Indianapolis, Ind.
Manufacturing Co.
"Business
and
Financial
Analysis — In current issue of
Digest" —Loewi & Co., 225 East
—
Street, Milwaukee 2, Wis. Also in the
Mason
an
Street, Boston 10, Mass.
& Water Co.
Indiana Gas
same
issue is
analysis of Maryland Casualty Company.
Kewanee Oil
Co.
—
Wall Street, New
Mercast
Memorandum
—
Smith, Barney & Co., 14
York 5. N. Y.
Corporation—Analysis—J. G. White & Company, Inc.,
New York 5, N. Y.
37 Wall Street,
Middle South Utilities—Memorandum—Faroll &
La Salle
New
York
Chicago
&
St. Louis Railroad
Hirsch & Co., 25 Broad
able is
Northrop
a
Co., 209 South
Street, Chicago 4, 111.
memorandum
Aircraft,
—
Memorandum
—
Street, New York 4, N. Y. Also avail¬
on
Sharmrock Oil & Gas.
Incorported—Analysis—Stanley
Heller
&
Co., 30 Pine Street, New York 5, N. Y.
/
Continued
on page
107
Volume 176
Number 5178
.
.
The Commercial and Financial Chronicle
.
(2333)
T. L. Watson-Turnure
Investing for Pension and
Profit Sharing Trusts
Merger Announced
Two
of
Wall
Street's
perhaps initiated
oldest
Stock Exchange firms will merge,
effective Jan. 1, according to a
the
might
and
Lawrence
Turnure
&
be very
customers
the
facilities of
zation, and all partners and
tomers
be connected with the
his bank is
part¬
Robert
H.
and
take-home
be
maintained
at
The
we
Broad¬
enced their in-
way,
New
York
City, present
headquarters of the Turnure or¬
ganization.
vestment
CiewH-i
While
Branch offices will be
maintained
in
Bridgeport, Conn.,
Perth Amboy, N. J., and 160 Varick Street, New York.
Morgan,
Haviland,
Bridgeport;
member
ber of
the
New
York
Stock
Ex¬
change; Lester E. Farley, Bridge¬
port;
H.
Quentin
Thurston
Syme, John Kerr,
Huntting and
est
Stock
founded
Exchange
on
house,
as
mer¬
Lawrence
bankers.
Tur¬
grandfather of
Lawrence
Turnure,
nure,
partner
that
a
on
time
there
Turnure
the
firm
has always
in
the
firm.
took
the
name
been
In
of
1888
Law¬
Turnure & Co., which name
been retained since. In 1942
rence
has
the
Turnure
organization
the
&
nure
of
name
Lawrence
Watson &
Co.
was
estab¬
lished in 1866 and for many years
operated
ness
in
century,
e
■
It
ESS
John'Hardy Weedon
Drior to 1930
Vrnwn
grown
h»rt
naa
nw
Jfied
and,
in
Prior
to
1942, the investment
these Funds were
of
in
fixed-income
secunties. For the greater part
this
of
period, fixed-income securi-
Sfordeda
poratebonds
return
through
grade
than
P°licies o£
the
Further
in
was
was
an
orderly
was
a
For
vociferous
mand
for
from
this,
decline
not
greatly concern either investors
legislators.
in
social
and
were
the
both
fiveH-inrnmp
destined
have
to
the
powers
first
nolicies for
likel
are
a
Profit Sharing trust
be
to
somewhat
complex and somewhat
vidualized
by
than
reaching
effect
on
investment
policies were in the making. With
the
depression
time
of
in
its
in
pension
those
company
—
statutes that permitted
purchase
type
common
prudent
a
However, many
at
cor-
million.
were
not yet willing to include
com" 000
mon
stocks
Trusts;
so
in
Pension
contribtuions
annual
an
are
of
rate
Recent
that there
with
will * be
made
organization
state.
private
In
in
tain
1ualified Plails
"°w
that, while this period at
is
This is
not
offer
to
an
offering of these shares for sale,
buy,
any
of such shares.
of
A
secona
of
a
as
more
oasic
on
an
offer
buy,
to
or
a
solicitation of
an
The offering is made only by the Prospectus.
licensed dealers
or
or
1933, however, all
banking
operations
were
discontinued.
Gellerman Adviser for
Knickerbocker Hospital
Knickerbocker Hospital, 70 Con¬
vent
N. Y.
Avenue,
City, has
appointed H.E.
Gellermann
Adviser
Public
as
on
Rela¬
mental
by L. B. Dana,
Administrator
of
unionism.
as
This
are
brokers in this State.
policies
of spending our
depression, and of a
managed economy, led to deficit
financing and the maintenance of
their
bonds
at
rates. At the
reduced
same
improving.
results
An
could
interest
for B
investor
now
a c
h
e
&
were
better
Phelim
F.
O'Toole, Jr. and Frederick G. Vogt
connected with Slayton &
Company, Inc., 408 Olive Street.
With William Ginn
(Special to The Financial Chronicle)
GOLDSBORO, N. C. — B. W.
Ginn has joined the staff of Wil¬
liam M. Ginn, 301 South Center
v
:
Price
by
buying the stocks of
leading corporations than by
acquiring their bonds.
Advent of World
$15
per
share
Copies of the Prospectus
War II
The first dynamic phase in the
creation of voluntary Pension Plan
trusts
dates
from
the
advent
of
may
writers
which such underwriters
only in
states in
be obtained from
any
of the several under¬
are
dealers in securities and in which the Prospectus may
qualified
to act as
legally be distributed.
of
the
some
the
desirability of providing
degree of future security for
employees; and now there
to
a
very
tight
labor
Corporate management was
not only to hold the
ployees it had, but to attract
A pension plan
for
led
situation.
ious
ones.
war-time
_
were
taxes
em¬
new
might help.
*A talk by Mr. Weedon
Sinclaire
Pension
City, Nov. 20,
Spencer, Swain & Co., Inc.
J. Barth & Co.
Seminar,
1952.
it
possible
at
Kennedy
New
Hill Richards & Co.
Emanuel, Deetjen & Co.
Lester, Ryons & Co.
Shearson, Hammill & Co.
Stern, Frank, Meyer & Fox
Hooker &
Fewel & Co.
Conrad, Bruce & Co.
Fay
Wagenseiler & Durst, Inc.
York
December 16, 1962
Harbison & Henderson
Paul H. Davis & Co.
Irving Lundborg & Co.
Newburger & Company
tax-exempt, high
made
Hemphill, Noyes & Co.
Paine, Webber, Jackson & Curtis
Laird, Bissell & Meeds
Lee Higginson Corporation
Francis I. duPont & Co.
WaSsfton, Hoffman & Goodwin
Dean Witter Sc Co.
Wertheim & Co.
Lehman Brothers
anx¬
In any case, since contributions to
such Funds
Blyth & Co., Inc.
Bache & Co.
Bingham, Walter & Hurry, Inc.
into action.
War-inspired
demands
rapidy increased production
(Special to The Financial Chronicle)
are now
share)
most
be translated
Slyaton Co.
—
per
seeking
obtain
Co., members were at least two
good and suffi¬
of the New York Stock Exchange.
cient reasons why thought should
Mo.
(Par Value $0.50
Mr.
lic Relations
LOUIS,
Common Stock
time, corporate
earnings and dividend rates
income
Engineering Corporation
the
rector of Pub¬
Two With
Consolidated
low money rates which made it
possible for corporations to refund
hospi¬ World War II.
During the previous
Gel¬
decade, many employers had un¬
lermann is Di¬
doubtedly become more conscious
tal.
225,000 Shares
Govern¬
out of
way
tions, accord¬
ing to an an¬
nouncement
toward
is
fluid
is
the
in-
necessary
aitterence
Continued
of $2
advertisement is published on behalf of only such of the undersigned
registered
case
purchases
important,
vestment policy than is
estimated
excess
or
results
the
operative, for Pens'°" Pla"
are
annual rate in
an
timing
maintenance
17,-
some
than
Pension Plan.
a
The
$760
period
therefore
indicate
presently
a
with
were
investment
average
over
a
trend
at
an
re-
about
figures
Plan while contributions
large segment of our popula¬
tion, with resulting social
se¬
curity legislation and a renewed
banking
a
regular- intervals.; Invasion
of
principal funds for the purpose of
of Aug. 31, 1946,
as
spect to 9,370 qualified plans
man
porations and many trustees
still
years
indi-
presented
investment of funds for
computations
seen
Treasury Department re-
acjopted
vivid,
theory of collective security
the
more
more
may be
less regular and may vary coninvestment standpoint in the po- siderably in amount from year to
tential size of the Plans and the year. It is therefore more difficult
for a Profit «»number of employees covered.
*
-• - . .
Sharing fund to ob¬
P°rted that
far-
a
anH
by a
formulating investment
or
mid-thirties,
changes tha.t
political
the
xhe problems encountered
trustee in
- v
!>ut' more importantly, from
states, including Illinois,
«prudent
man
statutes"
were
would select.
high-
did
gathered
standpoint of the number of plans to Profit Sharing Funds
many
a
and
one
trustees.
to
than
stateg goy_
many
ernjng the investment
stocks of
this
progress,
.n
trustees
th^ purchasing" p'ower otthedollar
trustees
many
Jawg
of
purchase
stocks.
the
available
betteiMn-
was
be
equity investments
Finding
^
This period, therefore, has
•
marked trend in the liberalization
KSQ
oo».
largely invested
Y.
<
Equity Investments
on
can
for
ment that af£ected the investment
Qf
portfolios
/Y Y
'
.
,the. full.cpst of pension plans for Pension Plan trust. In theory at
.their employees. The Union at- least, a trustee of a Pension Plan
titude, that had been cool to vol- Trust may take it for granted that
untary company plans in the lm- contributions based upon continumediate postwar period, now be- jng an(j conservative ^ actuarial
income ,came,
national/
d
$1 bmion
f demand
income securitics.
became uppermost in the minds of
private
Street,
con-
period
this
Fact
f
Another important develop- a very large increase in Pension distributions is not a probability.
plan coverage not only from the ; On the other hand, contributions
in
plans
Bv 1939 the number
to
10
in
trend
tialsY
private banking busi¬
a
being the oldest
ST.
during
earlier
Steel
f
^creas^ng* inUuence^uoon^the1^ de-
Board recommended that the steel
companies establish and assume
rates
20%
as
foregoing discussion that pension
fund monies either
directly or in¬
directly are destined to exert an
pres-
the
ft. ^' heightened the inflationary poten- Plan demands.
lists
v'-
treasury
Bridgeport, Conn., and had
the distinction of
that
tinued
interest
mentioned
I
The
even
currently invested in comstocjcs, there will still remain
fixed
Taft-Hartley
following
year,
the
President's
in
rapidly mounting government
and
tbe
dynamic upward
JL
,
However,
un¬
Tur¬
Co.-Blyth & Bonner.
T. L.
which
Act.
'
decline
under
gaining
th*
of
rate
If
was
merged with Blyth & Bonner
der
The
in-
their
the
the
present
became
a
thG war*
to the turn of
come
Dec. 31, 1851, and since
existence compared
while prices and wages were un^er
government,
control,
the
had
May 10, 1832 by Moses
Taylor under his name,
chant
was
Plans
:
W.
John E. Judson, a limited partner.
The Turnure firm, eighth old¬
v. '
few
operative
New
York Curb Exchange; George R.
Payne; Kenneth B. Gordon; Law¬
rence Turnure; William T.
Veit;
Henry G. Bruns; William C. Far¬
ley; Sylvester F. Hennessey, mem¬
a
Pension
Frost
.
the
of
were in
poll- with less than 1,000 just prior to
presently
Partners of the new firm will
be Louis N. De Vausney; Daniel
J.
plans
the
almost
Following 1947
period in which
at
annuaUy.
be
mon
Pension Plan Trusts and how have
50
much
to
Effect
The Period
funds
bim
as
pay
mediately.
Sharing Trusts for which
responsible.
currently accumulating
investment
cool to any plans that in
were
private
are
$1 2
L.
will
;
their
increase
up¬
Earlier this year, Salomon Bros.
Hutzler estimated that
plans
the number of
in
still
Pension Funds other than insured
for many corporations to adopt ently find ourselves had its incepsuch plans with relatively little tion in
1948. In that year, the
changing social, economic, and effect
Pears, William P. Haring
on
their
earnings-after- United States Supreme Court conand Ralph H. Hubbard, who are political conditions affected their
taxes. While no actual figures are firmed a ruling of the National
retiring from the Turnure firm.
development available we would guess that by Labor Relations Board that
penThe merged firm's main office
an dIin f 1 u
-, the end of the war 10,000 qualified sions are a valid subject for barrard
-
&
to
largely confined to fixed-
What has been the history of the
Ge¬
most
their opinion would postpone part
of the benefits they wanted lm-
new
nership, except for
Harding, John R. Marshall,
.
to
of stocks held in Pension and Profit
cus¬
of the two firms will
men
in
continued
trend is
ward.
these
plans. Unions were striving
new
thinking. Cites growing investment in equities
by both Pension Fund and Profit Sharing types of trusts, and
lays down investment principles for each. Reveals composition
increased
the combined organi¬
trusts
billion and the
stocks
for
investments
declining trend
affect investment
greatly
acceptable
Plan
toward
The period 1946-49 was one of a
After tracing development of pension and
profit-sharing trusts,
Mr. Weedon describes basic differences in
types of funds that
The merged firm, to be known as
T. L. Watson & Co., will offer its
trend
a
common'
income securities.
Vice-President, The First National Bank of Chicago
Co.-
be
Pension
son
Blyth & Bonner, established 1832.
that
portfolios,
By JOHN HARDY WEEDON*
joint announcement by T. L. Wat¬
& Co., established in
1866,
idea
•
Sutro & Co.
Bateman, Eichler & Co.
Pasadena Corporation
Daniel Reeves & Co.
page
be-
94
10
(2334)
The
Outlook lot Petroleum Industry
exploration and development ex¬
penditure, I include the following
(1)
Anglo-Canadian
stockholders
(2)
bullish.
and
Asserts because of expected grov/th in
workable
apparently
profit-sharing
Gas
foreign demand
natural
in
reserves
companies
Canadian
Superior
the
financial
petroleum economists
meeting
of
the
recent
(6)
(7)
consideration
a
American
Petroleum
political
portant
have
Institute
tional
demand in the
Dutch
15
years
should
,
Co.
estimated
to
The
nual
average
.Although
Laszlo A. de
Mandy
become
had
accus¬
not
of
two
of
rate
mand
experienced
try's history.
again
are
later
or
will
be
the
Iranian
and
Since
has
been
to
this
to
dry-holes in
during the current
wells
was
fill
cost of
finding and producing oil
steadily increasing, and the
£s
Middle East is
that
general
exception under
no
pattern.
Further, a
basic change occurred during the
last
two
kept
years
in
which
mind.
Middle
East
longer
has
The
to
be
individual
limited
governments
no
are
to
receiving
royalty income, but are
equal partners with the op¬
erating oil companies, sharing in
profits with them. Therefore, the
six, against
to
one
nine
in
the
barrels
United
the
and
one
States.
actual
average
greater
year
the
domestic.
lack
and
the
and
expansion
of
Pipe
Line
completion
the
of
Pipeline,
the
transportation
will
for
serves
first
ex¬
the
Co.,
by
next
Trans-Mountain
lack
sufficient
of
facilities
be
soon
the
sufficient
of
With the
for
oil
Markets
overcome.
currently shut-in gas re¬
are
also shaping up.
The
line
to
bring
to
gas
the
Pacific
Northwest is only await¬
ing the green light from the Fed¬
eral Power Commission.
A second
line, leading eastward, is expected
to
be approved by the Alberta
in
contrast
sharply
the
future.
near
with
healthy
and
during
the
last
six
opinion, the stocks
months.
In my
companies
attractive for investment.
Canadian Companies
For
those
in
ment
a
who
hold
to
invest¬
single company of in¬
quality,
Imperial - Oil
Ltd., controlled and backed by
Standard Oil Co. (N. J.);\is out¬
standing.
Certain smaller inde¬
pendent companies should appre¬
Iran's
greatest
cause
of
the
growth
in
the
and
new
was
production.
expected
foreign
rate
demand
Be¬
of
and
apparently workable
basis presently in
profit-sharing
force
in
the
national
lieved
sition.
the
oil
to
power,
be
in
a
favorable
po¬
Taking into consideration
ratios
equity
Middle East, inter¬
companies are be¬
of
values,
ability
market
price
to
future
earning
of
management,
overall rise in
uncommitted
classification
situated
The
are:
Inc.,
Shamrock
Gas Corp., Dehli Oil
Oil
&
Oil
industry,
in
&
ciate
percentagewise
Imperial, but due
lative
nature,
invest in
a
than
a
in
package,
and
to
is
group
single
which
consideration
ability,
it
is
of
favorable
financial
than
more
their specu¬
advisable
to
of them rather
In
one.
manufacture
ing
(bottled
the petro¬
spectacular
is
gas
used
selected
Its
my
after
management
strength
to
all
in
use
in
these
steadily.
fuel
as
$
in
is
big
before
Co.,
reported
earnings
equal to $7.43
in¬
a
to
spread
carry
holders of record Dec. 20.
sales
share,
of net
era
increase
of
the
to
the $1.25
from
a
previ¬
The current
rate.
$1.50
a
share will be made
a
2, to holders of record
The
dividend
secutive
will be
is the
Dec.
135th
to be ordered
one
Since
bank.
the
1886
con¬
by the
bank
has
paid $12,680,000 in cash dividends
and $2% million in stock and has
added $7 million to
*
Net
surplus.
i
*
income
of
::
Missouri
Service
Company
months
Public
ended
the
for
nine
Sept. 30, totaled
$915,249, equal to $1.61 a common
share, compared with $719,557, or
$1.24 a share a year earlier.
of
price
$1.50
19.
$5,579,388,
many
of
regular
to
rate
on
ment of
share. Profit be¬
as
the
dividend
pay¬
Jan.
us be¬
inflation
I think the Board
of Directors of Western Auto
may
consider paying out a somewhat
in.; the
*
ously paid, placing the stock
paid out approximately 50%
earnings after taxes in cash
lieve,
field, of
?.
$3 annual
said that "We have in the last 10
years
of
share, payable Dec. 31,
a
dividends, Connor
has ended, then
gas
1952
taxes, Connor noted,
Referring
combustion
solved
cents
it
approximately
the
same
as
in
1951, but provision for income tax
will be higher.
ad¬
the
voted
dividend
Directors of First National Bank,
come, after taxes, somewhat lower
than in 1951 when the
company
comparable gasoline mileage
without overhauling.
There are
be
Company,
semi-annual
Yor^
be
If,
to
the New
that
said
dividends.
petroleum
Trust
40
*
Present forecast of earnings,
said, indicate a 1952 net in¬
fore
12.
*
Directors of City National Bank
and
regular
aproximately $170,000,000
compared with $160,000,000 last
he
*
of
without leaving any residues, arid
therefore engines can run double
liquefied
a
year.
is not primarily in its
price but in the fact that it burns
problems
*
semi-annual
.as
many
fields
Its
holders of record Dec.
to
voted
will
numerous
and
were
Supply
engines
Revenues
were
$6,164,424,
com¬
pared with $5,541,786. 7
*
The utility's income tax provi¬
.
..
larger percentage of earnings than
which the prime one is a problem
has been our custom in the past." sion for the nine month
period
of economical transportation,
Western Auto Supply ap¬ was
$806,000, compared with
storage and distribution. Pipeline',
proaches the year 1953 with cau¬ $534,400.
transportation and storage in un¬
derground cavities seems to be
Olin Industries
the solution to this problem, and
successful
steps
have
already
Ely Walker
-
Dry Goods Com. & Pfds.
been made in this direction.
Many
companies
First National Bank
engaged
in the
production of liquefied petroleum
gases,
are
National Oats
but the impact of the pro¬
future growth, I believe,
Miss.
primarily benefit Warren
Petroleum
Corp.
and
Phillips
Valley Gas
Moloney Electric Class "A"
,
Scruggs-Vandervoort-Barney Com. & Pfd.
Petroleum Co.
In
Tenn. Production
considering the petroleum
industry as a whole, the outlook
is
for
steadily increasing con¬
sumption.
However, the pattern
Natural Gas & Oil
Wagner Electric
-
....
.
,
of
consumption points to wider
swings in demand, with a large
winter peak and a smaller sum¬
mer
peak.
Between
these
expected.
periods,
is
is
voices
will
be
unmistakably bullish.
Sold
Member Midwest
—
Quoted
Stock
Exchange
Landreth Building
the
Investors should keep in
the long-run
picture
that
—
SCHERCK, RICHTER COMPANY
during
these
it has been in the past,
bearish
loudest.
mind
as
It
Bought
peaks
accumulations of inventories must
be
that
acreage
gas),
they
and President of the Western Auto
combustion-type engines as fuel
(tractors,
busses,
trucks,
etc.).
creasing
vantage
re-
Security Analysts on
1, Paul E. Connor, Chairman
Dec.
for
petroleum
talk
a
Society
said.
to
«
liquefied
must be considered.
petroleum gas
Liquefied
the
demand
Williams
"Earnings
1951,
nearly $2,300,000,
the largest ever."
The dividend is payable Dec. 27,
when
loss.
$4,349,846, against $1,797,410
year previous.
In
leum
lo
cents,
this year are likely to exceed
Working capital was strength¬
by new financing and by the
Corp., Taylor
another phase of
of
voted
was
45
"Tfye annual dividend will be on
share, instead of
Co.
Gas
increase
as
instead
cents
usual
$1.80,"
retention of earnings. At the close
of the year, working capital was'
Liquefied Petroleum Gas
As
taxes
a
the basis of $2 a
$565.-
with
income
divi¬
Trust
authorized by di¬
quarterly payment
.was
ened
Co., Phillips Petroleum Co., Cities
Service
Co.,
Kerr-McGee
Oil
Industries
in
...
according
Williams, President.
50
C.
J.
$922,500,
before the subsequent
of uie flood
sun
Oil
Pure
came
reduction
be
the
in
compared
which
Companies in that
to come.
y ears
will
reserves,
favorably
of
any
the
were
cur¬
Commerce
of
rate
Company,
prices.
earlier. Taxes
* *
*
-
•
rectors when
$1,118,021, against $1,782,670
year
500,
with
moreover,
dend
berore provision for
income and flood loss
on
were
a
companies, with large natural
and,
*
increased quant¬
an
and
An increase in the annual
Earnings
taxes
and'Oklahoma
Kansas
rently is drilling No. 64 in Creek
County, Oklahoma.
The enlarged dollar vol¬
reflected
ity of goods sold rather than
I feel that the domestic
reserves
year.
ume
the ./'successful development
reworking old leases."
The company has 63 wells in
and
of
a
should
vestment
day—more than
that,
Canadian
imports, there is
possibility of satisfying the ex¬
pected huge demand for natural
gas other than through domestic
jected
ing Russia and its satellites,
a
mind
and Mexican gas
most
Petroleum'
production of crude /oil
stepped up by 500 bar¬
rels as result of the acquisition in
October of two groups of leases
previous,
year
a
Sales reached
v
no
gas
*
Prugh
that daily
of
ings, domestic heating and cook¬
the
of
transport facilities.
outside the United States, exclud¬
900,000 barrels
in
limited
because
are now
Last
borne
the
,
relaxed.
are
*
growth in foreign
expected to be much
the increase in consumption
be
of
$562,025
a
:
of
than
an¬
believe
of
of certain Canadian oil
Growth in Foreign Demand
is
sales
gas
also
chemicals, in refineries for blend¬
ing stock to improve octane rat¬
dumping of oil, I feel, would be
a
I
the
promising developments, the mar¬
ket
price of Western Canadian
oil
producers declined
very
thing they would try to prevent.
but
regulations
must
outside
£
of
has been
heavy initial
bringing a new glass plant
production, and the acceler¬
ated amortization charges under a
necessity certificate applicable to
equipment in the plant. Deprecia¬
tion totaled $1,082,552, against
big
The actual produc¬
tion averages only 160,000 barrels
are
In
against their best interests and
It
natural
still far short of Canada's current
daily
Government
demand
a
anticipated
operational
into
price
is
.than
to the
and
costs of
consumer
consumption.
160,000
mow
rate
dislocations
production, in
of
straight
The
the
in artificial rubber
production
August
this oil will be needed to
an
increased demand.
The
discoveries
In fact the ratio
"hits"
new
will
sibly
acquisition,
new
tension
pos¬
for
increasing.
rapidly increasing
Interprovincial
quite
expended
land
and
markets, I feel that the
.ce-opening, if and when it comes,
and
covered
in the U. S.
areas
to world
gradual,
been
Canada, which produced
19,000 barrels daily before
the Leduc discovery, is approach¬
ing a potential production rate of
300,000 barrels daily.
The po¬
tential production rate of 300,000
petroleum
re-opened
has
com¬
shut-in oil will find its way back
be
of
level
against .due primarily
Western
by
sooner
area
in
OPS
only
xng of the Iranian production and
the
resulting
flood
of
world
fields
-3%
by the residential
gas.
Not only
the
oil
to
One of their most often-expressed
fears is that the possible re-open-
that
paid
for
suppliers.
year
pessimistic.
cheap Middle East
Although I firmly
believe
huge
intensity than
of
the
markets
explored
far less
wildcat
growth in de¬
in the indus¬
number >of
a
economists
exploration. This
for
scarcely explored, and what has
Due
in do¬
demand. Off¬
pessimism, the en¬
produced
suitable
activity, many
are being made.
growth
years
territory
and the rate of these expenditures
is steadily and rapidly
be forgotten
mestic and foreign
oil
$90
lower
.a
ous
by
1967.
Western
about 770,000 square
exploration
that
iust two years ago many petro¬
leum economists were pessimistic
•regarding the continuance* of the
oil.
the
with
year
about
than
more
dollars
industry.
this
most
the discovery of the famous Leduc
field
in
1947, over one billion
bright future for the do¬
Today
heating
a
the
of
parable
during the large part of
period, it is still a
healthy rate of growth and indi¬
greatest
is
gas
of
for
peace-time peak
$15,166,882, up 13% over the
$13,364,734 volume of the previ¬
been
postwar
duing
cost
home
wellhead
price of gas, de¬
pending naturally on the' distance
of transportation, does not amount
to
producers
with
tomed
rate
be
*
Directors
727,800 outstanding shares of Corporation, declared the regular
common
stock.
In
the
previous quarterly common dividend of 5%
year, net was $475,242, or 65 cents
a share, payable Dec. 30, to hold¬
a share. A. L. Gustin, Jr.,
President, ers of record Dec. 15.
said that earnings were held to i
William Prugh, President, • said
ticipated,
oil
industry
oil
should
Co.
ex¬
,
The
natural
an
share ard
a
the
ex¬
gas
is
available, it is by far the cheapest
fuel.
paid
we
profits tax equal to nearly $1
1952 may be close to
the same figure."
cess
substantial increase in field prices
for gas will be forthcoming when
is
growth is less spectacular than
v.he 6-8% annual gains to which
setting
is
it
increase
miles
the
It should
Oil
Canada has
projected
postwar
in
lapse June 30, 1953,
should benefit con¬
company
siderably. In 1951
it
the fiscal
ticipated an approximately 400%
in the output of Canadian
authorities.
mestic
pected.
im¬
allowed to
is
$166,000 of undi¬
gain
prominent
a
consumption
Where
natural
gas
and
oil
other
cates
in
increase
The
The economists at the American
Petroleum Institute meetings an¬
coin¬
expectations
the
natural
increase
large
as short as practicable."
Noiing that Western Auto Sup¬
ply's excess profits tax base is ap¬
proximately $10 million, Connor
coverage
year ended Sept.
30, the Gustin-Bacon Manufactur¬
ing Co., reported net income of
$536,078, or 74 cents on each of
approximately $200 with fuel oil.
attractive.
cides with the
the
dan¬
will
A
average
those who exclude the
Iranian
in
domestic de¬
bi
which
portance.
deterioration of the political situ¬
ation in the Middle East, Anglo-
an¬
increase
mand
one
an
20,-
are
the
surplus
ffi
companies, natural
important factor and
is
Presently there
with
said that "if the excess profits tax
For
oil
gas
dividend
stock
by the Board of
vided profits.,
strictly
ger of an all-out war and further
indi¬
3%
Co.,
Socony
Co., Standard Oil
Standard Oil Co.
Oil
(N. J.)
To
46%.
cated
which
and
of California.
servatively be
Grow
factors
im¬
Petroleum
Vacuum
con¬
next
the
large bearing on interna¬
operations, I favor Royal
a
held that the domestic petroleum
and
of
optimism, expecting a good
some weakness during
trie
second
half," he said.. The
company "plans to keep inventor¬
ies under tight control and to keep
asked
of
Husky Oil & Refining Ltd.
Pacific Petroleums Ltd.
(8)
be
ferring $250,000 from undivided
profits the capital account will
show $750,000 of stock, $500,000
of
Oil
Thursday, December 18, 1952
tious
year,
on
will
000 shares of $25 par value capital
stock outstanding, and by trans¬
Co.
Central Leduc Oils Ltd.
In
strength
Oil
50%
a
recommended
as
Directors.
Atlantic
Co.,
Feb. 10,
Mercantile
the
of
Trust
&
to approve
Ltd.
domestic
Leading
at
Edmonton
Canadian
(5)
Cites eight Canadian
gas.
&
Cailf. Ltd,
particularly attractive.
as
Calgary
Ltd.
Middle East, international companies, as Royal Dutch, Socony,
Jersey, and Anglo-Iranian, are in favorable position. Names
domestic companies most favorably situated to benefit from
uncommitted
Co.
(4)
in
arrangement
The
(3) Calvan Consolidated Oil &
long-run picture for oil industry investors is "unmistakably"
special meeting
a
Bank
Corp. Ltd.
that despite current pessimism,
maintains
At
Co.,
Ltd.
Security Analyst, Bear, Stearns & Co., Members N. Y. S. E.
expert
Oil
...
Missouri Brevities
(in alphabetical order):
By LASZLO A. de MANDY
Petroleum
Commercial and Financial Chronicle
Bell
Teletype
SL 456
Qf
,
.
-
__
St" Lou,s 2' Mo'
Garfield 0225
L. R 123
-
Volume 17S
Number 5178
The Commercial and
...
Financial Chronicle
(2335)
Denounce UN Resolution Upholding
; 7
Nationalization Wiiheui CompsiisslioR
'
When
11
I
mention "employer" I
referring to corporations, part¬
nerships and individual proprie¬
Profit-Sharing Trusts—
am
tors.
G. Keitli
Funston, President of the New York Stock Exchange,
and Earl Bunting of NAM, register protests.
Funston, in letter
to U. S.
Representative to United Nalions, scores action as
i
-
*
Now,
s
United States
Company of New York
serving n:lice
on investors everywhere that
long-standing rights
longer be respected. Earl Bunting says resolution dims
hope of foreign investment in underdeveloped areas.
will
G.Keith Funston, President of the
New
York
Stock
Exchange, on
the
standard
of
Fulton point out this
system involves
mitment
outside the Iron Curtain."
Dec. 16 addressed a letter to Am¬
bassador Warren R.
Austin, U. S.
Bunting's
Representative to the United Na-
Similar
to
on
mines amount of
those
of
Manufacturers,
pointed
out
that
UN
When
protect foreign investors is the
kind of international action which
talk
we
think
me
years ago
of
the
about
Profit-
employer of
50
who would tremble with
living through
nancing
will
private foreign
•
a
prove
not
method
Retirement
to
be
what
fi¬
that
'
Without
of
Profit-Sharing Involves
country to nationalize its
any
questioning the right
Commitment
this action of the United
resources
Nations,"
G.
Keith
tions,
Funston
in
which
resolution
nomic
.
would
by
which
^
said
and
of
permits nation-
since
industries
without
19
to
h
d that the matter of
^pen¬
win
be more judiciousJy
nations
amend
"Wiliiston to
Resolution
ism
to
seems
that
the
Merge
&.
"Funston, in his letter
Ambassador Austin, stated:
to
Co., 115 Broadway, New York
City, members of the New York
Stock
virtually a trunecessity for chanme
Exchange
changes, will
Bruce
&
other
and
merge
ex-
with Conrad,
Co.,
prominent Pacific
securities house, the new
nelling United States capital into
underdeveloped nations is essential
Coast
firm to be known
as
if
ton, Bruce & Co.
'
those
nations
their full
of
potentialities.
share
have
to
are
in
owners
invested
this
billions
realize
dollars
through--United States
corporations; our investors have
already
shown
an
ability and
overseas
willingness to put their capital to
abroad; I have no doubt
work
that, granted the
proper
such
J. R. Willis-
ty;\
Millions
Members, of the Conrgd, Bruce
country organization who ^w i 11 become
of
partners in the
new
firm an? Fred-
compensation for risks taken. 'We
have
great
as
sovereignty of
have
cost
for
of
respect
a
and
gaining
that sovereignty.
tionalization
is
an
for
nation
any
own—we
our
saH2.n'
j
^
The
as
know
the
maintaining
a-
..
serves
nptfee
everywhere
that
rights of long standing will
longer be respected. Investors
Cavanaugh
of Los Angeles; Donald W. Hinton
ization
Wm, C.
King Joins
of
it
the
was
re¬
employees
their
of
the
earnings
to
for
come
time..
long
a
Now
way
have
we
since
com¬
sion
on
vestor
Television
c0
Shares
behalf
of
the
accelerated
creating
the
mutual trust -which
international
that
the
merely
a
a
the
Profit-Sharing
a
Plan
as
a
greatly
adoption
Retirement
of
source
as
Distributors,
representative
Southeast
Richmond,
with
Mr.King
retirement
benefit to augment the Social Se¬
rnent Plan
a
'
-
is essential to
investment.
Resolution
I
hope
represents
temporary diversion
of
long-term trend toward raising
Jacob F.
away
Dec.
Schoellkopf, Jr.
16th at ibe age
Schoellkopf
the
of 69.
board of
&
was
chairman of
Schoellkopf, Hutton
Pcmeroy, Inc., Buffalo, and of
the Niagara Share
Corooration.
em¬
tribution.; The formula will de¬
pend; primarily on the normal
relationship between earnings and
and
the
on
average
re¬
stance, if the payroll is large in
to
profits, the per¬
proportion
centage of profits set aside in the
Profit-Sharing
rather
Fund
generous.
On
must
the
be
other
hand, if a business requires large
expenditures for constant research
or
for necessary
reserves, due al¬
can
be made for them.
lowance
Naturally,
the employer would
prefer to retain full discretion as
to the exact size of his
contribu¬
tions to the Plan from
year to
year.
However, to qualify under
Section
165(A)
Revenue
Code, the Profit-Sharing
Retirement
the
of
Plan
must
predetermined formula
partly
because
man¬
the
em¬
of
cannot
';
that the creation of
aware
in
addition
Retiiement Plan is good sound
business practice. Employers have
cases
you
adopted these benefits for several
efits
under
a
in
the
is
fore¬
employer
every
Second,»he
think
very
cm-
possible.
convinced that a
way
v
happy and satisfied employee will
do
a
a
better job and actually have
.desire
to
make more
day," the
help
his
employer
profits. And third, to¬
employer
these
knows
employee
that
benefits
presented jointly by Messrs.
Jochum and Fulton to the Commerce and
Industry Association of New
York, New
York City, Dec.
9, 1952.
paper
Pension
Plan.
hold
most
present
of
these
will find that the ben¬
their
somewhat
ore
to their
In
Internal
include
for
a
com¬
down
Pension
modest
the
so
company's
Plans
as
to
fixed
participating
members in the Plan
is, say $1,000,000 and net profits before
taxes average
of
net
would be 10%
annual commitment and the Prof¬
could,
it-Sharing
much
Plan
is
therefore
a
supplemental benefit based en¬
tion
if
profit
tirely
upon
ings
of
the year to year
the
companies.
Profit-Sharing
Plan
earn¬
Since
involves
fixed contribution commitment
a
no
on
tne part of the employer and does
not
require actuarial calculations,
it
can
as
it conforms with certain United
States
easily be
adopted
so
Treasury Department
long
reg¬
$500,000, he may
contributing 20%
income, which, in effect,
want to consider
as
so
did
payroll
As all
30%
for
that proper
out
of
is
reserves
referring ty
reserves
Gulf Sulphur Corporation
COMMON STOCK
Price $3.00
per
a
may
Share)
share
be obtained from
PETER
Nassau
the undersigned
MORGAN
Street, New York 5. /V. Y.
"Cellphone Dltrhv
9-3430
the
em¬
not be
are
as
set aside
any
made, and I
of record only.
Cents
of
On the other
may
earnings before
tribution
r225,000 Shares
Value Ten
contribu¬
15%
participating
hand, the employer
as
$500,000 net
that
Continued
appears as a matter
31
as
exceed
of these shares have been sold, this advertisement
Copies of the Prospectus
of the
long
not
He
contribute
ployees in the Plan.
ulations.
(Par
of the payroll.
desired,
much concerned with the
amount
he contributes as he is in
seeing
Schoellkopf, Jr. passed
Mr.
to
a
formula which will determine
the amount of the
employer's con¬
re¬
Jacob F.
effective should
benefits
Plan
ployee,
that
-Fourth Street, members of the
York and Midwest Stock Exchanges,
of
be
one of the most important
steps in its design is its choice of
*•.
(Special'to The Financial Chronicle)
Formula
ployees,
Virginia,
trend
climate
to
a
keenly
Today progressive
director of. the securities division of the State Corporation Commission of
ty'ty
estab¬
Sharing Retire-'
yield reasonable
was,
Joins Edw. Jones Staff
for
taxes,
financially arrange for his
retirement
and,
therefore,4 is
benefits.
agements realizes
formerly
'
re¬
some¬
those
Profit
a
thf
headquarters •in
Va.
.
in
These
are
curity benefit which the employee puting the
profits which are to
will receive, and 50% of which, be
contributed to the Plan. Since
as
you know, has been provided
this is a requirement of
the In¬
by the employer. Many companies ternal Revenue Bureau
it becomes
today have both Pension Plans necessary to tailor a
plan which
and
Profit-Sharing
Plans
and will best suit the
employer's fi¬
many
others are contemplating nancial
set-up. For example, if
the adoption of a
Profit-Sharing his total payroll for
in--ward D. Jones & Co., 300 North
in favor of the
ment because it represented
toward
as¬
commit¬
be
may
through
to
Choice of
Since
he
States
Pension Plan.
Management
and Hudson Fund
jnc
no
Resolution was'a great disappoint-
an
cannot
Pension Plan.
problems
a
The
-
however,
William C,
CHICAGO, 111.
King has become associated with
are
might be outlawed.
of
long-term
United
require¬
qualified Profit-Shar¬
a
compensation.
"The heavy vote
versal
the
a
minimized
even
resentation
he
However,
difficulty of solving its pen¬
the
ST. LOUIS, Mo.—Alvin L. Barunder terms of the
diplomatic rep-,.t°n Jr. has joined the staff of Ed-
Apparently,
Resolution,
benefit
to hesitate before
company
of
pulsory social security and private
employee retirement and welfare
plans providing ever increasing
•A
Television Shares
subject to national¬
without
that
a
certain
quirements for working capital of
the employer's business.
For in¬
any fixed costs
beyond what his profits will jus¬
tify. This uncertainty often causes
suming
therefore
old age.' v
>
.We have
without
told, in effect, that their invest¬
ments will be
and
possible,
as
an
payroll
conditions,
employee
many
we
that
year.
obligate himself to
ment of
sufficient to live
Francisco;
D.
as
than
more
♦"•ipvees
Robert
can
in
paid to his employees
wages
were
ve¬
that the salaries
you
ris, and Edwin F. Peabody of San
we
The right of naadjunct of sov-
Resolution
investors
and
his
quite
that
the
ereignty which we recognize
accompanied, of course, by prompt,
adequate and effective -.compen-
©n
hemently tell
would
definitely wants to help his
climate,
agreements,
fair break and
He
most.' is
and
a
employees.
eric J. Blanchett of Seattle, Malcolm C. Bruce, Frederick L. Mor-
.
treaties
they do ask for
suggested to him
First, and I
of Seattle, and Henry J. Zilka of
grow, still Portland, Ore.
more in the future.
Our investors - On Jan. 2 also Irving P. Kahn,
are
not seeking special privilege Manager of J. R. Williston's public
but they do seek and need the utility department will be admitsafeguards provided by interna-«*ted to partnership in the firm.
tional
R. E. Fulton
reasons;?
will
investments
someone
save- some
Effective Jan. 2, J. R. Williston
adopt
that he share his profits with
sponsibility
abstaining.
the
if
rage
on
Conrad, Bruce and
normal
Since
granted
what
are
programs
sation
jointly in¬
Mr.
"It
George P. Jochum
standards
vate
today
confidence
certain cyclical pndussubject to sharp fluctua¬
tion from year to year.
Therefore,
while the employer would like to
tries
under-
the
approved
was
unsuccessful.
were
of
under
profits
developed nations of raising their
Efforts by .the United States dele¬
gation
hopes
' with
No Fixed
earnings will be next
Even
>
troduced by Bolivia and Uruguay,
on Dec.
11, 1952, by a vote of 31
1, with
their
covered."
Committee
Resolution, which
to
the
on
compensation.
The
dims
of living through priforejgn investment.
If and
^the free wben the question comes before
^capital from this tbe Qenerat Assembly, it is to be
it
flow
of
"It
businessmen
forecast
calculated
investment of private foreign cap¬
ital.
..
he
effects
alization
„
unfortunate
have
country,
Eco¬
,,
long-lasting
abroad
the
a
Committee
.
Nations
.
Bunting
denounced
Financial
„
?t
^
United
he
approved
and
£
Earl
Few
Mr.
Bunting declared,
to destroy the
aspirations of underdeveloped na¬
tions for economic improvement
possible only through large-scale
"seems
it
ac¬
Department
similar
lishing
burden to the employer.'
investment.
used
be
must
fund.
for
quirements,
financial
a
they
a
ing Retirement Trust.
of
Plan
be
advantages,
meet
ments for
of vest-
get new
employees. The big problem is the
the
it
Treasury
he may find it difficult to hold
on
to his present
employees and will
find it equally difficult to
of
in
take
must
formula which deter¬
selection
dims the hopes of
underdeveloped
nations of raising their standards
of
com¬
out
Sharing Retirement Plans it makes
who
failure
to
Points
to
such a
fund will want to avail
himself of
all
possible tax
actuarial calculations.
a
are
retirement benefits,
that
employer who establishes
benefits accruing to
employee
in Retirement Plan
cannot be predetermined.
by
Mr.
Funston
were
voiced by Earl
Bunting, Manag¬
ing Director of the National Asso¬
ciation
long-term fixed
no
no
employer's contribution and methods
in§ employee credits.
ex¬
pressed
the
employers, and requires
Indicates factors involved in choice of
Protest
views
also
outlining advantages of Profit-Sharing Trusts as means of
providing for employee retirement funds, Messrs. Jochum and
living in nations
finance
obvious
cumulated
In
no
if profits
to
is
By GEORGE P. JOC1IUM and ROBERT E.
FULTON*
,
on
con¬
am
that
now
are
page
not
96
12
(2336)
The Commercial and Financial Chronicle
set up
Value of
Municipal Financing
In Preserving Local Autonomy
valuations made by the local com¬
municipal financing
Mr. Wood stresses
value of municipal independence in preserving our democracy
and in avoiding centralized bureaucracy. Says those engaged
in marketing municipal bonds play as indispensable role in
creating public facilities and improvements as engineers,
architects and other construction employees.
to say
were
financing
ladies that in buying and
municipal bonds you are
in a business which in¬
you
is
selling
engaged
volves
si d
con-
ble
e ra
and
drama
foundly
pro
sideration
Declaration
the
of
Thomas Jefferson
conceived to
dent.
Men
life
of
as
one
of
they have believed it
statewould
probably be
greeted with a
certain
amount
k
of
ticism,
and, yet, I am
going to make
s
M.
David
e p
that
Wood
very
statement, and
I
hope before I
I
will
through that
am
convince you that you
are
self-evident,
be, it is necessary
Europe
and
the
pire
overlord.
an
centuries,
engaged in a business which vi¬
tally affects many rights and lib¬
merce
erties which you
began
I
Wealth
a
municipal bond is more than a
of
piece
with a big seal
it, having coupons
paper
impressed
upon
attached
which
time
time
to
upon your
Let
dential
receive
from
income
investment.
election
throughout
the
with
start
me
clip
you
to
which
this
Presi¬
held
was
country
last
month.
At that election you cast
ballot for the candidates that
your
felt should be elected to ad¬
you
minister the affairs of the
the
state
and
nation,
of your local com¬
munities.
The ballot you cast was
secret ballot. No one but your¬
Then,
result of this
a
artisans
to
and
towns and the
haps it
occurred to you to
at the polling place
never
notice
that
the
overlord.
The
times,
because
so
of
and not
men,
the
a
town
a
day, he became
unclaimed
for
the
on
bureaucracy
the
of
powers
have
which
state,
and
year
there
was
those
days
that
the
town
made
men
free.
have
that
their
you
wondered
cause
you
polling
at
had
booths
that
be¬
from
come
fact
the
have
would
been
tilled with state secret police and
even
armed
soldiers.
The only
police
you
saw
the
at
polling
jplace were your local policemen
Appointed, by the town in which
j^you reside, and they were there
+merely for the purpose of main¬
taining order. You probably never
Igave them a second thought. You
if-did not feel that
you
hatched by any one, nor
fjhave any fear of voting
ISaw fit.
being
did you
were
as
you
You have always felt free
jtb do as you pleased. You feel this
i#way because you have never ex-
terienced surveillance by" the
tate.
You
engage
in
can
Ibusiness
you
any
please without
ob¬
taining
the
consent
of
some
ibureaucrat at the national capitol,
^and
you can travel all over the
•country without being required to
! register with the police of every
popular
a
saying
air
in
the
of
Historians
the
bureaucracy.
national ideas.
words
I
have
In these few
compressed
some
centuries of
history, and I should,
perhaps, point out that there was
no
steady rise in the position of
the
inhabitants
They
of
suffered
these
defeats
many
their struggle for human
I
and
think
that
I
towns.
in
freedom,
should
also
point out to
you
that the struggle
for freedom
was
a
individual
every age
their
against
and in
struggle
people
have
their enemy
The early
struggle of the
the state.
In
every
for
always
was
country in
freedom,
the
found
that
the state.
colonists who came
from Great Britain to this country
brought
these
ideas
of
personal
liberty along with them. The first
which
governments
Purposes
of Municipal
Organizations
^
In
this country the municipali¬
ties have set up organizations for
the purpose of
terests
set
Itown at which you stay
overnight.
•You take all of these freedoms for
in
'granted.
you who
Ihave traveled abroad realize that
were
they simply do not exist in
inhabitants.
every
those
^countries throughout
t
;•
most
the world.
The Background
But
;-this is
J,
of
to set up state governments,
itations
that they would not become the
threat to their liberties which the
state had been in their homelands.
They
did
not
confer
upon
states which
you may say,
admitting all
true, what has municipal
*An address by Mr. Wood
at
a
meet¬
of the Municipal Bond Women's Club
ef New
York, N. Y. City, Dec. 11, 1952.
ing'
they
careful to impose lim¬
upon these governments
very
they organized
amount
powers
of
bureaucracy
powers.
for
that.
They
The
to
and
a
a
exercise
were
the
vast
those
states
which
they
These
ernment.
been
most
agencies
effective
in
attempts by the state
a
have
opposing
or
national
bureaucracies to
of
impair the rights
the citizens of the municipali¬
ties.
While many other organiza¬
tions have been very effective in
building of about
feet to provide space
new
square
compounding equipment
production equipment
$160,000.
new
due
Sept.
1,
1977.
The
proceeds
to be used in connection with
are
the construction program through
1954 which includes a new gener¬
ating
station
under
construction
in Middletown.
#
#
On Nov. 25
Stanley M. Ford was
president of Silex Com¬
elected
It
pany.
garding
with
turing
Ford
under
are
Electric
Company,
is
way
re¬
merger of the company
a
Chicago
other
*
also announced that
was
negotiations
cost of about
a
♦
letter to
a
eral
also
of
Manufac¬
which
Mr.
President.
*
stockholders, Gen¬
Dynamics
Corp.,
estimated
consolidated earnings for the cur¬
substantial increase in sales is
in
pected
1953
when
ex¬
The
*
of
name
stockholders
tion of the
tial
been
Class
$25
A
Machine
changed
dents:
Robert
liam G.
Both
have
they
Oct.
on
the
31
at
share and accrued dividends,
and a partial liquidating dividend
of about $8.00 a share to holders
P.
Stott.
Mr.
Howe, and Wil¬
-
Howe
been
with
Mr.
Stott
bank
since
and
the
graduated from college,
were
Howe
from
Harvard
in
1925
Stott from Tufts in 1935.
Mr. Howe has specialized in Cor¬
porate Trust matters and Mr. Stott
in statistical and financial
Mr.
The ini¬ that
calling
a
of the
lowing officers to be Vice-Presi¬
dissolu¬
company.
included
Preferred
to
On Nov. 24
authorized
new
steps
Henry C. Alexander, President of
J. P. Morgan & Co. Incorporated,
has announced that the Board of
Directors have promoted the fol¬
and Mr.
♦
Hendey
has
Morgan & Go.
Announces Promotions
Mr.
*
Company
J. P.
of
output
to be increased.
Alexander
Watson
also
analysis.
announced
Dickerman
B.
has
been advanced to the rank of As¬
sistant
Vice-President,
and that
Davis and Robert
Messrs. Asa
B.
K.
have
Veer
de
been
appointed
Assistant Secretaries.
Class B Common.
IN
*
*
MEMORIAM
*
American Thermos Bottle Com¬
pany
of
a
60%
the
of
bathrooms and
FREDERICK
kitchens.
,
A
hearing before
a
Reader
sion
Dec.
on
4
Light
&
of
Common
The
and
Subscriber
to
<
Sixty
Years
Frederick J. Klingler passed away
on Nov. 28,
1952, from shock and
i
the
Public Utilities
KLINGLER
The "Chronicle" for Over
injuries
At
necticut
J.
January 22, 1859-November 28, 1952
Common
stock,
Plastene's major products include
plastic tile and other products for
Con¬
Commis¬
Connecticut
as
result of
a
a
fall suf¬
fered at his
residence, "Ivycrest,"
Mapleton Avenue, Boulder,
1040
Colo.
Power
Mr. Klingler, 93 years of age,
Company
re¬
quested permission to acquire all retired from business several years
the
Electric
of
stock
Clinton
Light & Power Company
through
an
one-half
exchange of six
shares
of
the
and
Common
and
ago,
versity
was
Mayor of the Uni¬
town
of
Boulder,
Colo.,
in 1917.
Mr.
Klingler's physical vigor and
stock of the former for each of the mental alertness in
spite of his
5,000 outstanding shares of the advanced age was always a source
latter.
Clinton
Electric,
which of inspiration to his friends and
serves about 3,500 customers in an
associates.
Mr.
Klingler prided
area including Clinton and Madi¬
himself on the fact that he had
son,
would be operated
as
a
sub¬
sidiary.
been
a
reader
and
The "Chronicle" for
*
*
*
An
subscriber
over
of
60 years.
exemplar
of
the
highest
humanitarian, Mr.
Klingler's interest in world, na¬
tion statement with the SEC cov¬ tional and local
affairs, covering a
bureaucracy, it has been my ex¬
ering a proposed issue of 100,000 wide range of political, religious
perience that the most effective
shares of Common stock. The pro¬ and social
defenders of the rights and privi¬
problems was remark¬
leges of the citizens against such ceeds, together with loans, are to able.
be used to purchase the Ansonia
Mr. Klingler is survived by his
encroachments
have
been
the
Electrical Division of Noma Elec¬ son's
widow, Ruth, of Atlanta, Ga.,
municipalities and these state and
tric Corp.
and two grandchildren, and by his
nationwide
organizations
which
*
*
*
daughter Marion, wife of Harlow
they have set up.
■
protecting the rights of individ¬
against encroachments by the
uals
It is
evident, therefore, that the
existence
of
virile
an
autono¬
and
municipalities in
constitutes
any
effective
On Dec. 8 The Ansonia Wire &
Cable
The
Company
Hartford
filed
a
ideals
and
a
registra¬
Electric
Light
Company has obtained permission
Case Platts
of Boulder
and
three
grandsons.
nation
check
against the totalitarian tendencies
of
the
tarian
bureaucracy. Every totali¬
recognizes
of the first
instance,
ments
in
the
that
fact.
One
CHAS.W. scranton
Members New York Stock
&
CO.
Exchange
things Hitler did, for
was
autonomy
huge thing
far too smart
at
In
state there is
league of municipalities, and the
United States Conference of
up
so
But
for
a
presently
advancing the in¬
their
of
practically
mous
they
local governments, and when
time they found it necessary
were
25,000
of
Mayors is organized on a nation¬
recognize the fact that the ideas wide
basis, for the purpose of pro¬
citizenship, which tecting the interests of the mu¬
are
current among us, began in
nicipalities and of their inhabi¬
these towns and that they were
tants
against encroachments by
civic notions long before they be¬
the states, or by the National Gov¬
came
adding
is
company
has announced its acquisition
controlling interest in Plasof tene
Corporation of Crawfordsville, Jndiana, through purchase
of freedom and
were no
Had
The
people Hendey Corporation.
the
found
always
exercises
encroachments
in
men
ier.
experience with
military aircraft by the Canadian
attempts at op¬
subsidiary, Canadair, is scheduled
the part of the state.
over¬
free man, and
a
to
$414,-
per
share was equal to $11.81,
compared to $5.81 two years earl¬
which is simply another name for
bondsmen
a
to
and
tne
these towns considered themselves
free
amounted
year
ties Commission to place
privately
issue of $15,000,000 Debentures,
an
limited
greatest shield has been
their
who were
usually
hard local
governments. It was in their
pressed for cash, began to solicit
local governments that they found
loans
from
these
townspeople. an
organization which could suc¬
They traded their cash in return
cessfully oppose the state. In such
for grants of rights and liberties,
a
contest the individual is help¬
and as time went on they pur¬
less.
Citizens must be organized
chased more and more freedoms
in order to oppose the state, and
from the king and the overlord
the
local
municipality provides
until many of the towns became
them with a ready-made organi¬
practically autonomous and were
zation which they can utilize to
in a position to defy both the king
withstand the
national policemen.
recently come to this
country from almost any other
country in the world, you would
there
:
those
lords,
and
fiscal
from the Connecticut Public Utili¬
#
certain and
long struggle for freedom
against the oppression of the state,
these
of any noble. It became a recogself knew how you were going to» nized principle of the law of the
vote unless you disclosed your in¬ land that if a bondsman escaped
tention of you own free will. Per¬ from his overlord and remained in
a
pression
In
towns.
in
of
They have done
oppression
com¬
king and the
1952
$1,370,000 and after taxes
In
centuries
of
of
in
congregate
the
government,
ment.
merchants
accumulated
Sept.
rent year at over $5.00 a share,
compared to $4.53 in 1951 on a
and have in¬
smaller number of shares.
Con¬
sisted upon preserving the auton¬
solidated net sales are estimated
omy of their local governments.
at a record level of over $110,000,They have never been willing to
000 for the year. The backlog at
supordinate them either to the
Oct. 31 was about $385,000,000. A
states or to the Federal Govern¬
local
after some
began to re¬
commerce
as
Na¬
therefore, the people in this coun¬
try have kept alive the notion of
en¬
the creature
was
only
From the earliest colonial
During that period the or¬
dinary man had no rights and
He
the
to
and
powers
exercise
the
Ages.
liberties.
ended
year
27, 1952
shows net sales of $9,400,000 after
a
$350,000 allowance for price
redetermination against $6,060,000
a year earlier. .Net before
taxes in
powers.
the Dark
now
Government
granted
imposed a
great variety of restrictions upon
to go back to
Middle
Ages.
call
we
even
tional
until
long period of anarchy
a
sued which
munici¬
governments
function.
they
limited
the fall of the Roman Em¬
After
not
the
state
tution
have
forgotten its origin, and,
therefore, to explain to you how
these rights and liberties came to
vive and
take for granted.
hope to demonstrate to you that
In
long they
so
the
When they organized the United
under the Federal Consti¬
self-evi¬
however,
fiscal
of Plastic
Company for the
report
Cable
before
courts
States
regard anything
litical
ment
could
what he
were
tried, not in state
to abolish
were
palities
rights of free
every
you, my
you
Independence
they
never
and
&
000, both before renegotiation. In
elected by the people of 1951 the
equivalent figure after
Yale & /Towne Manufacturing
community, and by a jury taxes was
$270,000, or $ 2.71 per Company has purchased a tract of
composed of citizens of the lo¬ share. Net
per share for the 1952 land
in Lenoir
City, Tenn., on
cality.
This, in essence, is the
year was equal to $3.81 per share, which it proposes to build a
plant
way in which our state govern¬ on the increased
number of shares. to manufacture locks.
ments are set up to this day;
If At the year-end the book value
«
•
*f
❖
freedoms
stated
be the
said
and
men
cial
po¬
these
en¬
state
Wire
annual
the
exist in this country.
to
came
how
to
police
the
of
was
The
judges
it? In
question it
to give con¬
us
police
Local
laws
courts, but in local
that
for
the
defendants were
do with
to
answer
necessary
affects the so¬
and
got
to
order
state
for.
provided
forced
In revealing political and social aspects of
and marketing of municipal obligations,
suspect that if I
No
munities.
Attorneys at Law, New York City
Connecticut Brevities
for the support of the
ratner, by the local political or¬
ganizations based upon assessed
By DAVID M. WOOD*
I
the
taxes
state, for instance, were not levied
and collected
by the state but,
Senior Partner, Wood, King & Dawson
to
required to function
local governments.
were
through
The
Thursday, December 18,1952
...
of
to
destroy
the
local
Germany
and
Communists
would permit
of autonomous
the
New Haven
govern¬
the
in
last
New York
—
REctor 2-9377
Russia
Hartford 7-2669
is the organization
Teletype NH 194
local
Continued
governments
on
page
97
Volume 176" Number 5178
.
.
The Commercial and Financial Chronicle
.
been
-
inflicted
ple?—It
And the Gold Standard
stand:
.
.
:
Shall, noting Republican party has a gold-standard plank
its platform; says restoration of redeemable currency has^
platform,
currency has
in
in
{
■
A; ounce, redeemable
$35
at
v/.:
-
demand.
on
paid
-
an
:
«
tion?
•
ti
v
.
subject, "The Gold Standpromises
ard,r
able"
ment of
to
become
creasingly important
the
Party,
com-
RePuklican
having
4, has
is
a!
:v
in
Frederick G. Skull
of
War
96-
deviated
$20.67
the
at
fine
a
Civil
similarly,
I,
our
redeemable
was
those
never
War
during
paper-money
in
gold,
mand, at its fixed value.
de-
on
"irredeemable"
into
uuwer
power
puwer
pledged
to
"a
aau
Jan.
oau.
un
on
to
return
dollar
on
20,
x*
is
i»
next
next,
nexi,
our
currency
fullv
a
"
♦•ui
conver-
tuiiy xonvex
tible gold basis"—which can only
mean a return to the Gold Stand-
return .to .ine uoio stana
an?
Does Expert Opinion
paper-money
in. this country, the party coming
Gold
a
Standard
Standard?—Yes, it has had
stronS approval by the world's
monetarv
essary?—A nation's
tions
as
a
currency funcyardstick-of-value,.for
measuring
the
commodities
unit
as
of
relative
in
values of
general;
is
measure
as
such
a
necessary
Smith>
in
eaith
,.Wbau
1776
makes
avoirdupois;
and
once
the
value of the dollar has been offi-
cially set in terms of a definite
weight of gold, it can no' more
be changed, properly, than one
could
change
the
length
of
the
36-inch
yardstick or the number
grains in a pound of avoirdupois.
of
Just What Is Meant by the Gold
Standard?—It
ing of the "value"
so
far
as
the firm fix-
means
the
of the dollar,
United
States
is
concerned, in terms of a definite
weight of gold-which is known
as
"fixity-of-value"; and it must
include according to all
also
Adam
and
^
'The
first
the
most
times
many
sig^nificant
raising
usual
real
a
of
the
expedient
public
by
bankruptcy
has been disguised under the
appearance
of
a
pretended
pay-
ment."
■
Andrew
tary
100
D.
years
White,
inflation in
later,
Dr.
in his mone"Fiat
Money
masterpiece
France," referring to
the sad experience of France with
irredeemable
ready
Up
views
earlier,
in
words:
"Every other attempt of the same
kind
in
human
history, under
not in degree.
of
which
financial
o
4
n^
"redeemabilityf
on
demand.''t
write
sentatives
Illustration
of
the
return
llln n
F*AiYilY\
have
and
and
dollar back
Konrtoro/I
New
the
gold the world has
throughout the past
order
one-half
of
age-old
not
just
however,
be
to
It
of
in
preserving
their
460-
to
-
is
billions
.
up
the
real
:
.
'
.
legislation,!
f
y^at
Purpose
Are We Trying
Promote?—Our
purpose
ThormigrMy Tested? —'Yeo,
extensively. More than 200
very" greatly to the
1
get
our
American
dollar
Let's
the
that
assume
dollar
only
/35th, of
would
for
scend
gold
It
of
the
real
value
dollar-assets
of
more
one
of
and
opinion
the
of
use
commerce.
evident,
therefore,
the "value" of
nation's
a
rjij^
1
be
could
Municipal
Thus it
for
a
price
is
Thursday,
December
Bankers
p.m.
(Special to The Financial Chronicle)
ment
Corporation,
Street.
be
445
To reach any other conelusion would be to say that there
robbery
a
aroused
can
public
be
such thing as a
no
,
clusion
the
gold
(Special to The Financial Chronicle)
a
con¬
has
that it
sure
in
played
DENVER,
standard, which
the
important
so
economic
welfare
a
R0chester
part
of
this
Service
Colo.
is
Nesbit
—
with
;
This
'
.
• T;
a
announcement
solicitation of-
neither
is
offering
'"V
is
an-
made
' v.""'•
offer
only
•
•'•
•••
to
an
-offer
by
-
buy
Corporation, 444 Sherman
Street.
sell
to
* the
'•
securhim.
Offering
•••'
years:
people
erf
this
of
nor
The
Circular.
A-'■■■
ISSUE /•
299^500^Sliares
nation.- In
'
■
'.t.lk' bl.ikr
.
.
the
1933,
•
■>
*.
,
Jkfl
Mimii
(A-New^Mexico-Corporation)
^Common
A
wtitical leaders threw overboard
v^VOpfeni^rhafkjet; if necessary, in those expert ^pinions, and prog:;, :.p order to ;^t all times maintain its ceeded as follows:.;;
-'1pronri
as. nftlW"-*
' YlV. Tha» 'M xVr'ia.♦
: paper^mone^ "as good as gold";v
( I) They l'd ev al u a t e d". the
r>;
and-"/the v people/ ; therefore, had American dollar
by 41%, by rais
*
bought, gold at'
confidence
in
a
premium iti the
the
British
cur-
:
/ rency,; and
were mot likely to
demand gold unless the bank had
issued
money,
.
-
(2) And,
,
notwithstanding
Zi
■
*
y.,
Offering Price: $ 1.00;Per Share rS'Av;-:'^;r
•
Copies of the Offering Circular
-
that
debauched value, our Government
tion,
money,
resorted
T7~" address
jj
♦An
*CP?lK1y
may
be obtained from the undersigned ^ ^
over-supply of paper-; of the dollar from about l/20th
which occasionally hap- to l/35th of an ounce of gold,
Some 160 years ago France,- at
the period of the French Revolu-
eon
Stockvrv-}-
an
opened.
:
"
''
ing the official price of gold' from
$20.67 to $35 a fine ounce—which
automatically dropped the "value'-
f+h-.-y**--
.
u
to
m
an
cu
"irredeem»
.
.
*
refused " to
debauched
by Mr. Shull at a lunchmeeting: of the Rotary Club, Mil ford, * P
December 11, i952.«i..f-,r ;
the
on
-
redeem
its-
papers
demand, even at that
value — as great a
j-
,
;
,
.
®
dishonesty, along
^'devaluation," as has
*
...
with
ever
"A
Hunter Securities Corporation
' "
.j
,
52 Broadway
-
Members: National Association of Securities
DIgby 4-2785
Dealers, Inc.
A.
Investment
"
NEW
,
Joins Inv. Service
"stand-
Under such
ard-of-value."
shall not be allowed to happen.
■
Grant
changed.
-
economy—making
;
at
120
DENVER, Colo.—Helen J. Guely
is now with Hamilton Manage-
once
cannot
currency,
18th
Club,
,
that
seen
gold,
of
Bondwomen's
With Hamilton Mge'ment
changed, properly, than
change any other unit
official
1
Lunch
Broadway,
definite weight of gold,
measure.
¥
s
Fifth Annual Christmas Luncheon
0n
12:30
#
our
worthy cause.
has been established in
a
set
their
combat this threat to
can
importance
the
one-
1
Club of New York will hold their
the value of that currency can no
upward of $250 billion. Only an
and
Store-Of-Wealth.
a
commodity in
once
currency
terms of
of
people of
in
most
Bondwomen
three functions far tran-
as a
this
r»
Medium-Of-Ex-
a
becomes
that
be
of gold;
ounce
is
These
these
then
It
change, and
(3) It
is
ac-
instead
l/70th,
an
in
(2)
gold—urging prices all the way
from $52.50 to as high as $80 an
ounce.
metals—
common
business; that
tions, such as
political leaders
to establish, by Congressional
tion, a higher official price
other
yalue.
ducers, ' with>' headquarters
in
Washington, D. C., is using every
to
the
gold, in addition to being
scampaign commit
be >■ carried ■ out without
States Ignored
detriment
to
is>teverybody's J
strong . organizaa comthe Rotary Club,
ment
modity
used
in
the' arts
for Can be most helpful in bringing
delay*
jewelry
and
other
commercial about a return to sound-money;
'
*s Such Public Action So
applications, performs other im-~ and to urge our influence in getNecessary? — It is necessary beportant functions, as follows:
ting
your
brother-organizations
cause a strong lobby of gold pro(1) Gold
is - a
Standard-of- to, likewise, interest themselves
10
-
the United
is
try to make clear that the question
of
the
gold-value of the
,
Has
or
and made the law of the land,
Gold
-
of
something comparable, be enacted
•
>-
value
dollar-savings,
that. this
see
>
of
—
-
good
a
legislation
be
to the public,
however, if they have any interest
commodity
a
time,
appear
such
that
enacted.
What Are the Functions of Gold?
is
This
1953.
See
gold standard.
like
Congress assembles in Janu-
getting favorable Congressional action; for the incoming
Republican
Administration
has pledged, in its platform, to
port the claim that we havert't
enough to safely go back on; the
new Congress to see
camDaien-commit-
it is likely
again when the
and
introduced
chance of
pro-
Any alleged lack of gold,
therefore, cannot: properly sup-
em-
predecessors;
be
to
ary,
gold standard. We
billion in gold,
years.
this
enlightened
report in 1931, in which they said:
"There is, perhaps, no more im"portant object .in ..the field oi
the
of
there would
$23
the
—Gold
it that
r; 1 al
current
1 4-r*
the
on
to
half
millan Committee," rendered its
of
1952, as the Reed Bill, H. R. 6470,
experienced the same fate as
its
new
is,
duced
pbasize that ^there must^be ho
further "devaluation" of the dolties of
.
and
;
last
be
the firm founda~
on
Club
true
a
about
that
u?n ot the Gold Standard; :
might
all
Repre-
demand
I
roughly,
23,000
tons
avoirdupois; and that happens to
to
fully convertible
therefore, can
a
make
to
And
addressing
Rotary
which
We,
Senators
our
human techniques than that the
Standard
In poker, before the*; w
^ a w *e sbbLdd ac'hieve
game
can
start,. the chips-;; are- a
scientific monetary
given-fixed values; and through-- s^e,ia*,
there, can be little
out; that game the chips are re<or
,bop®r of progress at any
deemablejr 6if: demand; at those-da^ ^or
hHmeteiy sys"fixed
values." ..-Those
simple^, tern of
world as a whole, ex**1
principles- involve no more, nor. cePj a? the result of a process of
no^-Iess, than- the two ; cardinaC
starting^ from the; hisprinciples which constitute a truenc ^
standard. ,J
: Poker
on
basis."
to
courses.
VY1
n rf
dollar
gold
1
in their operation as those
hold the planets in their
AwnVtn
rtf-5
«a
platform,
that would rob the
And, finally, a group of outstanding British economists and
financiers, known as the "Mac-
n
its '1952
able
conditions.
turn to
The
worth
laws
holders of paper-money, or other
token
money,
the
privilege of
exchanging that paper-money for
gold at the face value of the currency—which privilege is known
People'Prevent
Catastrophe?—They can do
incoming Republican
Administration is committed, in
a
this:
—for
All of them show
the
as real
Such
the
been
month,
strongly supported the view that
the U. S. has an ample supply
of gold and should promptly re-
value of the dollar by exactly 50%
whatever
circumstances, has
reached similar results in kind if
existence
adverse
doUar-saVing$i^\''..',,---«^Can
ilege
add that Yale's Professor Fred R.
than $60 billion, of the real value
How
restoration
that gold
on
gold standard function satis-,
factorily under those seemingly
Haven
,
gold to doL
our
the
interests were to be successful in getting the official price
raised to $70 an ounce, for example. That would reduce the real
sums
these
have
we
Fairchild,
of those
and
-
that
ounce,
an
been
priv"redeemability," on de-mandf at that fixed value. That
at other more-critical periods of
same
bill, revised only as to
our
history—perhaps double the identification
number,
was J ingold ratio of those periods; and troduced in Congress in
January,
selfish
al-
paper-money,
mentioned
his
$40
has
is much larger than has been true
would deprive the people of more
effort
-
Then,
to
bill
the
pigeonholed,
,
Jar, and closely follow-the activi-
nnh
Iirst Pub_
denomination of the coin has been
which
raised
be
promptly
an
lars that could draw
12%% "devaluation" of
a
have
we
present ratio of
the
.
authoritative
Nations"
°i £tallo,ls'
in
AHam
exPer*s.
his
of
.
llshed
is the 36-inch yardstick or the
pound
pxnprfs
leaamg monetary
since>
Nee-
Favor the
Gold
statement:
.Why Is
"devalua-
prompt action be taken to get the
operating with
an
to
1789,
the gold
as
occasion
such
coast-
-
Congress
nothing further heard of it That
ample: supply:,bill calls for the firm ;
fixing of
of gold.
Dr. Spahr has publicly -the "value" of the dollar at
$35
pointed out, repeatedly, that; the a fine ounce of gold, and for
dollar, which would result
if the official price of gold were
:
gold; and, other than for
and,
World
,
dollar
years
period
of
years
of
few
a
on
Throughout
.'value"
a
ounce
After
nation
consistently
the
;
from
re¬
sound -money
29
were
years
turning this
basis.
"""
to
coast
by
introduced his gold-standard bill,
known as the Reed Bill. On each
on ;. Monetary
membership
is
of more than 70 leading
from
Legislation
gasman
whose
economists
—that
higher-value
robbed
Vice-
Committee
made up
^
Proposed?—Yes, each Janu-
jfor ^he pa§t few years ConReed (New York) has
ary
Economists'-Na-
tional
the
gold standard.
standard.
.
constructive
to
of
paper-money
backed
with specie—either gold of
silver,
or both; and from 1837 until 1933
,
the
the 41%
the: dollar
of
little
we
Party
to
do
something
nation
and
with
Thus
Executive
Policy,
savings.
The people's accumulated dollar-assets, today, of the
three types mentioned, aggregate
more
than $500 billion; and as
to
instituted
that
toward
folly
himself,
dishonesty
And the United States, from the
incum-.
on
Napoleon,
founding of this
platform; and
bent
to
the
see
"
a goldstandard
plank
in
its.
it
paper-money—to the detrithe people of France; and
fell
of the
Nov.
on
;
it
that type of money, and to restore
his country to the firm foundation
the elec¬
won
tion
in-
in the
University, ^ and
President, of the
people of more than $50 billion of
the real value of their dollar
.
The
for
dollars.
:
Has
Been
fessor of Economics at New York
the dollar,
of
coun-
try's outstanding monetary expert, Dr. Walter E. Spahr-^-Pro-
under¬
to
easy
the
represented by the national debt,
bank deposits of all kinds, and
life
insurance
benefits
already
t":
snpport of expert opinion. Holds we have enough
gold to sup¬
port a true gold standard and urges
passage of the Reed Bill
that calls for a firm
fixing of the value of the dollar
the firm conviction of this
Y. V -aggregating about $125 billion—
c: made
up
ofgovernment t bonds
•
<:
very
1934
v„iless, of the "value"
.
Mr.
V
is
In
nation, and of the world, would
thereby have vanished into "thin
air.,Y \
port a True Gold Standard?-^-It is
people owned
dollar-assets, all payable in definite numbers of dollars regard-
By FREDERICK G. SHULL*
Connecticut State Chairman, Gold Standard League
v,Have *We Enough Gold to Sup^
of
V
U
Did This Penalize the Peo¬
How
.
people
the
on.
this nation;:;
•
13
(2337)
1
New York 4, N. Y.
14
(2338)
The Commercial and Financial Chronicle
number
have
Mortgage Finance in 1953
of 1952.
excess
the
demand
for
in
brief,
the
is
lesser
a
life
extent,
has
caused
way- tions
outlook
try, but
mortgage
lias
in
is
a
few
a
been
to
mand
thought
to
or
vitality.
it would
ago
years
support
pendence
A
economic
the Federal systems.
on
language, this
is
Strong
Housing
<
praesentis, or
the
tendency
to project the
present
into
Miles
Colean
L.
their
the
future.
Things
the last six months; therefore
they
will probably be good for another
six months.
malady.
In
offer the
good
also
My forecast
show
to
pear
reasons
to
that
reasons
while
why
next
I
year's
business will continue to be
good,
it
will
be
somewhat
different
from this year's business.
The
two
most
tures of current
have
been,
outstanding fea¬
mortgage activity
first,
the
continued
high demand for residential
mort¬
gage money in spite of credit
strictions,
rising
interest
re¬
rates,
and
the decline in the
availability
funds for government-insured
of
and
-guaranteed, loans; and, sec¬
ond, the large volume of money
that
has
spite
and
been
in
the
market
de¬
generally
a
tight situation
unattractiveness of FHA
the
and
VA
higher
a
mortgage
loans.
than
terms
those
who
had bought houses in the
previous
postwar years. As the year draws
near its close there is no indica¬
tion
is
the market
Despite the fact that the
of
Even
marriages to
be
expected
1953 will be less than the
ber
in any
year
for
n
num¬
nearly
20
n
quarter
ilies
million
still
are
one and
nonfarm
living with
fam¬
others.
Employment is good and incomes
are
high—providing
for
demand
important
generator
a
probably
at
least
the creation
as
families.
The
birth
of
rate
as
new
is
in¬
creasing,
particularly of second,
third, and even fourth children,
forcing many families into the
housing market for a second time
in
decade.' A
a
ternal
high
migration
units
dollar
volume of VA home loans
closed
for the first nine months
of this
year
is about
three-quarters of
that in the same
period of
its
con¬
all
factors
observers
ew
'ess
than
be
will
into
account,
estimating that
900,000
will
many
are
took
like
famine.
a
There
aspects
in
the
other
situation.
So
far
1952, the FHA
and VA
activity
despite $345 * million
by FNMA, have ac¬
combined,
bolstering
counted
home
35%
for
the
32%
1950.
1952,
life
done
the
with
period
the
same
insurance
only
VA
business
business
they
ventional
other
creased
years,
-so far
did
in
companies
one-third
and
of
a
little
FHA
1951.
in
the
Con¬
these
apparently
confusing
little
affected,
volume is concerned,
by
governmental
The
1951
mortgage lending, on
hand, has steadily in¬
during
as
in
period
about
three-fourths
over
the
total
the first nine months of
have
of
of
same
in
In
25%
compared
mortgages
in
and
only
main
policy
or
regulation.
and
only important
empact of mortgage credit
regula¬
tion and
change in monetary pol¬
icy has been on the part of the
market
*An
rSi?:th
depending
address
on
VA and,
to
by Mr." Colean before the
Mid-Year Meeting of the
National
Association of Mutual
Savings Bank, New
York City, Dec. 8, 1952.
to
for
with
pro¬
special
is
Michigan, the
a
so
started
forecast
the million-odd to
much
as
as
be commenced
work;
range
the
such
1953
will
in
all,
need
.
of
the demand in
about
the
same
mortgage financing
as
it did in 1952.
of
this
Another
important
building
and
that is,
—
loft
of
source
demand for mortgage
1953 will come from
financing in
commercial
stores,
buildings,
office
warehouses,
garages,
restaurants—as well as
hotels and buildings for recreation
and
tor
amusement.
of
demand
This
has
whole
for
now
sec¬
over
two years been
severely restricted
by
both
controls
controls
the
on
Recreational
verely
hit
credit
on
of
use
building,
of
most
of
any
and
materials.
the
se¬
the
first
to
half
10
months-of
of
what
same
period
1950;
while
as
a
whole
in
it
its
this
commercial
has
in
was
peak
fallen
year
the
year
of
building
over
25%
ment
/'completed ..or
prior to the establish-/
way
of
materials
controls
Crenshaw
Center in
cisco—the
movement
under
got
time
in
in the
are
of
planning stage and
is
only
the
beginning.
neighborhood-convenience type of shop¬
ping center. While a considerable
number
these
of
connection
of
have
with
been
the
vast
develop¬
there is still
the war,
considerable
demand,
two
especially
of
NPA's,
Recreational. buildings
slowdown.
years
is certain also to
-
provide deihand
for mortgage funds as soon
present
ex¬
subdivision
ment since
the
built
the
as
the
gold
U.
newspapers
saying: "I'm
going back
S.
world -/conference
but
not
nations
v
:
1
;
that
•* of
to
a
ex-gold
study whys
gold would
world conference
all
former
countries
gold
would
work
to return to currency re¬
in gold.
deemable
Let
me
take this opportunity to
how
pleased I am to know
that you favor return to the gold
say
standard.
*
Your
committee
has
slight
still
pansion
likely to show
are
increase.
Public
utilities,
impressive- ex¬
have
programs
ahead,
will/be
in the finance market to about the
extent
as
one
same
area
this
year.
tremendous responsibility in the
coming session of Congress and it
is
heartening to read of
port
of
sound
your sup¬
American
princi¬
struction
where
of
/
.
.
private
demand
con¬
in
1953
%
You
end
in
are
the
a
position
jhonster
irredeemable
state
to
help
and " the
it
currency
feeds
upon.. You are aware that irre¬
deemable
paper
money,
that is
redeemable in nothing but
money
of
more
with
itself, is
record of
a
It
government.
government
debt into
fill its
to
fatal
a
disease
hundred per¬
one
has
enabled
convert
its
purse.
It is the stuff
which the self-exalting ex¬
principle of government
upon
feeds.
and
It
is
corrupts
for the
the
is
actual
some
the volume
of this
decline
in
kind of build¬
ing to be expected, but—more im¬
portant from the lending institu¬
tion's point of
view—industry will,
because
of
accumulation
preciation reserves,
tion to
with
finance
less
The
to
recourse
for this
reason
accumulating
serves
of
of
de¬
posi¬
a
expansion
borrowing.
is that
an
unusually large
These
re¬
reser¬
reserves
are
attributable to the rapidly increas¬
accelerated
tax
amortization
granted, and from normal depre¬
reserves
of
a
Continued
vastly
on
pendent.
help
morally devastating
men by cumulative
courtry
But
page
ex-
98
we
fear
blight
upon
our
salute you.
wherein
conference
a
their propaganda
S.
to
devalue
fellow
nations
U.
Our
little that
dollar would
for the U.
returning to sound
our
It is absurd to say
not
stop
neighbor
or
taking
present
dollar
exhaust
our
dope
devaluation of the
mean
inflation
more
S.
When
foreign nations stop def¬
live within their
income, they can return to the
standard
gold
this
nation
standard
with
1879
in
When
ease.
returned
the
to
gold
to
bor¬
had
we
to secure suffi¬
gold abroad
row
cient
and
reserves
that
demonstrate
anced
budget
and
had
we
had
we
through
were
tampering
with
our
each
country .do
re¬
and
same
no
monev
conference
sys¬
the
will
needed.
We
can
resume
without devalu¬
ation and without
legislation
the
be
/.•»//.-
is
well
America.
del^^Np. oUier
mor^jimpPTti?.Qtjto
and/
being
safety of
•/'•r
•
Sincerely
yours,
PFH TP
M. AIcKHNN-A' ::
National/Chairman C V>'
The
Gold
One Lloyd
Standard, League
Avenue,-
-■''/>-^Vi.v.rv
Latrobe. Pa.
Dec.
3,1952.
-
i.
;
-
' /
.
Tucker, Anthony Adds
E, M.
Tucker,
Gorley to Staff
Anthony
&
Co.,
Broadwav. New York Citv,
120
mem¬
bers of New York Stock
has
Exchange,
that Edward M. Corley
become
associated
firm in the corporate
with
their
bond trading
department.
until
With E. D. Andrews
of nations could
(SpesM to The Financial Ctonjcle)
claims
also.
that
would
gold reserves?
There
approximately
$7
billion
foreign deposits in America to¬
day while we have over $23 bil¬
of
in
Let
to
bal¬
a
we
are
lion of gold
to
seem
What
stops
group
that
dol¬
the
icit spending and
announce
before other countries
money
turn?
our
this
why, Congressman Wolcott,
do you
will
It hurts everybody—
poor
and
the de¬
For
your
decision
to
the
end
now
depreciation
funds.
rich,
nation
will in the years just ahead
provide
voir
be in
further
to
us
press
lar.
temptation.
1952
only
than
more
they could
the
own
"money" and thereby to
own
seems
likely to be below that of
is in industrial building. Not
for
tem.
ples.
ecutive
•
-..7-
The
Next
reserves.
demands
come
a
restrictions ,,are cent
mortality unless halted in
lifted.
V' '
\;,i time by radical
surgery. It has al¬
In addition to commercial build¬ ready cost the
people control of
a
requests to loan them
come
for, their/ *
gold
care
a
severe
ing, farm loans
would
indicated that
was
which
at
in
as
standard
would like
out how
to
the
1952
Also it
standard
shopping centers are bound to fig¬
prominently in mortgage ac¬
tivity next year and the years
following.
distinguished from
the
called
Regional
These centers are, of course,
of
you
ure
be
1,
favor
in
Dec.
on
sev¬
ciation
small
foreign trade,
sincerely " believe
The text'of 'Mr. McKenna's let-devalue the dollar. And then we
ter to Congressman
Wolcott fol¬
really would be in trouble. Noth¬
lows:
■
;./:"" ' "/''•
ing / would please foreign
gold
Dear Congressman Wolcott:
mining
and
financial
interests
You are
,.;
alone."
eral of these have managed to
get
ahead with construction. But this
doubtedly great. Outside of New
York, Pittsburgh, Houston and a
a
.,
projects
number
agreements where these have been
only
gold
put.//would
beggars' holiday'V/
a
quoted
present
ing accumulations both from the
places,
in
We
would'
for
hardly
the
Yet the
underlying demand for
new commercial
buildings is un¬
other
the
to
your
-
Angeles,
had
At
way.
large
a
Los
into
turn
were
from its postwar peak in 1951.
few
know,
as you
standard
return
Mr. McKenna oointed
types
mentioned, has been reduced for
And,
State of Michigan has a large
and means to return to
..
number, of projects
a
sort
under
which
Enlarged Commercial Building
Mortgage Borrowing
interests.
of/the House Banking and
Currency Committee, urging the
States
that
enterprises will
served.
area
Although
after
All
action
would be detrimental to their own
standard/ "alone
and, asserting turn into a beggars', holiday. On
that;/no/ conference of /ex-gold, the record it would seem that we
from about $1.5 million up-!; 'standarcjr; nations is: required for have,, been • on. the losing ;end of
Such ; a; conference,
of $25 million depending on the purpose.
international
conferences.
First
in
vestment
pansion
and
Chair¬
apt to recom¬
of
tances to parked automobiles.1 In-'
1953
in
prospective
States
re-establish-
United
as*
for/, long \ dis¬
carrying
"Chronicle"
man
provi¬
-
handling purchases
avoid
in
in, 1952.
amount
however,
are,
to
sion
are
space
the
be
not
course
a
stake
facilities
furnished
United
the
to
would
men
mend
own
dwelling
new
make
rnent of multilateral trade." Those
Congressman Jesse P. Wolcott of
of in¬
rate
makes
The same factors that will make
1951, '
the
peak
year
of VA activity. for a
large volume of new house¬
FHA home loan
activity is run- building in 1953 will support a
tting at about 90% of 1951 vol¬ strong market for
existing hous¬
ume,
and
about
75%
of
1950, ing and for alteration and repair
which was FHA's
peak year. On
the face of it, this does not
exactly
.Philip McKenna, organizer and
with the text of his open letter to
Ample parking
to
the
contribution
Jesse P. Wolcott
could
Restaurants, rest
in most
communities, and
M. McKenna
peting and supplemental lines to
feature
freedom
the
.
the focal stores.
the Stoneston Center in San Fran-
high. Vacancies of habitable
"wellings still are not over 2%
ent
total
Philip
environment adapted
traffic.
These centers
nursery
Ameri¬
the
right
demand.gold.
Only ten days ago 2,000 Amer¬
.
has
vided.
denied
are
executives, whose sole occu¬
is foreign trade, /unani¬
mously recommended re-adoption
of a gold convertible dollar de¬
claring
that
"Dollar-gold
con¬
vertibility would be the greatest
National
^ain
standard in¬
Only
ican
Chairman of the Gold
usually focused on one or
Standard League, and President of
more major department stores and
Inc., Latrobe, Pa.,
provide facilities for both com¬ Kennametal,
and
gold
now. '
pation
an
modern
citizens
can
...
mand
Taking
The
to
the
on
are
ternationally
.
a
goid-redeemable
For all practical purposes
dollar.
mod¬
1950—notably the large center at
Framingham, Massachusetts,the
other forces will keep de¬
years,
looking at the FHA and
portions, it is remarkable how
well they have fared under
pres¬
conditions.
for
reproduction of Main Street's fa¬
cilities in
num¬
siderable contribution to demand.
VA
needed
come from the new departure
shopping center development
—the
integrated regional shop¬
ping center, which literally is a
ward
that the vigor of
ber
be
respect to warehouses, and loft
lessening.
only
can
addition, I want
some
that,
I
of
why I think it is
In
give
believe
may ap¬
symptoms
defense,
one.
houses, laid down
first payment and accepted stiffer
good now; they have been for
are
Americans ! regain
when
here
we
will
are
hat it gives of a continued strong
ncusing market. The people who
bought houses in 1952, by and
large, paid a higher price for
as
projectio
a
Continued
The greatest significance of this
situation to me is the evidence
known
increase
will
in
supply so large a vol¬
with so little de¬
medical
disease
likely that foreign, citizens
their bank deposits
more
is/obsolete
will
de¬
a
Market
In
earlier
or
tamper-p roof
in
impossible
large
so
recasters.
o
1920s
buildings.
•....
A significant demand for funds
of money
ume
occupational
distor¬
disease among
f
League contends a conference of ex-gold
merely into a "beggars' holiday."
Yet today, every
building and hotel built in
,.
surprising
have
id espread
serious
parts of the coun¬
the whole the market
on
either
me.
There
w
Standard
ernizing lighting systems and ele¬
vators and
installing air condi¬
tioning. The same situation exists
This
companies.
some
shown
Only
shapes
to
the
many
respects.'.; EVen where
financing is not required for new
structures,
a
large J supply, of
in certain
the
1 9 5 3
(
in
funds from
FHA
insurance
for
up
during
funds
good
mortgage loans and a larger sup¬
ply of money with which to make
business
built
interval.
same
for broader mortgage loan
powers of savings institutions.
continued
that,
letter to Congressman Wolcott, the National Chairman
standard nations would turn
importance
office
Holds
present levels. Pleads
them:
In open
of Gold
of
investments from insurance and savings institutions.
interest rates are not likely to rise above
A
the
there have only been a few hotels
Sees greater demand for mortgages
as
Return to Gold Standard Alone
new office building
beginning of the Great
Depression.
Outside of Florida,
since
Forecasting continued good demand for mortgage loans and
larger supply of funds with which to make them, Mr. Colean
finds, however, private demand for borrowed funds in 1953 will
be in
Philip M. McKenna Says U.S. Can
have its first
Washington, D. C.
not
buildings
during
Chicago, for example, will in 1953
Construction and Mortgage Finance
on
office
new
built—not only
the postwar years but since the
fade-out of the boom of the 1920s.
By MILES L. COLE AN*
Consultant
of
been
Thursday, December 18,1952
...
our
treasury
.
IPSWICH, Mass.—Rufus L. Sewall will shortly join the staff of
Edgar D. Andrews & Co., 2 Cen¬
tral
Street.
now.
Under our present laws those
$7 billion of foreign deposits can
be converted into gold at once.
But, the gold would have to come
right back unless they wished to
suspend trade with America. It is
Inv. Service Assoc.
,
HUNTINGTON, N. Y.—The firm
name
of Nassau-Suffolk FIF Sales
Company. 304 West Main Street,
has been changed to Investment
Servire
Associates-
I
Volume 176
Number 5178
.
.
The Commercial and Financial
Chronicle
.
(2339)
Britain's Colonial Sterling Balances
News About Banks
By PAUL EINZIG
BRANCHES
OFFICERS, ETC.
and
REVISED
CAPITALIZATIONS
dustries
furnish these
to
high prices of British
ship of
the proposal will be submitted to
the stockholders of both institu¬
win have been elected Vice-Presi¬
dents of Chemical Bank & Trust
tions
on
January 28, according to
joint
a
announcement
December
16
two banks.
by
made
officials
approval by various State and
Federal supervisory authorities as
as
predecessor
toe
by holders of two-thirds
is
the
large
that joint operations
so
on
February 2.- J.
President; of
Geoffrey
V.
Azoy
t,.
Britain vit
begin; natural
can
Sloan
the
<
details
merger
Colt
is
they
Trust; keep
Bankers
Co. The merger will add four new
offices and bring to 17 the num¬
i.aywa.u,
ber
tial
size
of
•js
**
eood
,
York^bf
which
Bayside
to
Bankers .'Trust
It
Company.
that
J.
invited
with
also
come
/
o hi"1
-vitV' f.''•••>,. ».
a n y
i
balances
National Bank have been
was
announced
Wilson
Company of New York, it
nounced
graduate
of
been
since
Princeton
with
1930, and
President
member
tan
and
13
by N. Baxter
Chairman. Mr. Azoy, a
Jackson,
has
Dec.
on
was an¬
Dr. Paul
the
for
cover
of
1949.
at
30
is
for
have
the
the
A very
large
four
new
President
of
the
Bank
since then. He has been President
of
Street.
the
Long
Island
Real
Estate
Board, and of the New York State
Association of Real Estate
Boards,
since
and is
President
Assistant
as
since
member
of
1949.
the
Vice-
He
bank's
is
Committee
a
rectors
National
of
of
the
the
Board
Chamber
Division with headquarters at 165
merce
Broadway.
He has also served
Mr.
Sherwin, an
alumnus of the University of Chi¬
and
cago
began
New
York
with
Credit
1948
Vice-President.
Credit
He
Officer
ternational
York
promotion of
and
a
the
senior
bank's
of
Dec.
Veitch,
formerly
11
staff.
Mr.
Bank
with
Corn
1929.
Mr.
that
Robert
the
Company in
came
to
Irving
in the
after several years
named
dent.
management
field,
MacDonald, spe¬
in-personal trust work.
an
Mr.
were
Assistant
named
E. Henges,
President
Graybar Electric Company,
Inc./ has been appointed to the
Clyde'B.
Chase
Na¬
York,
and
Morgan,
President
of
Rayonier Inc., has been named to
the
Advisory
bank's
42nd
announced
President
Branch, it is
Percy J. Ebbott,
of Chase
*
'
9
Board
Bankers
Trust
of
Borough
approved
New
of
a
Bank.'
*
*
of
New
Mr.
New
in
Queens,
N.
of
Bayside,
Y.,
merger,
have
and
has
of
the
price
Trust
John
was
and
the
the
bills
The
'r
*
They
In
such
of
not
develop¬
' '•••"
capital
goods
such
etc.,
as
in
City
being
Bank
ment.
at
to
as
for
A
for
for other purposes
til
unless and
corresponding
a
notes
is
To
do
so
deflationary
Colonies
no
possible to
the
as
use
to
on
investment
than
to
owned
the
through the
dents.
firms
If
absence
of
to
This
advertisement is
not
an
offer
to
or
'
r
' ^
of
New
Southern
offered
as
and
when
successful
York's
in
the
initiate
to
Volta
For instance,
in the
scheme
provides
may
or
be
for
of
eat
of
an
that
capital
is
sterling balances.
ignorant
an
over
involved
situation
to
divert
substantial
a
for
the
requirements
of
capital developments.
solicitation
a
of
an
offer
to
speculation.
a
Share
your
own
undersigned.
vard,
were
ficer in
Bronx
Alfred
Mullen,
charge of National City's
branches; James J. Lyons,.
Borough President of the Bronx;
and
Earl A.
Snyder, President of
the Bronx Real Estate
Board.
Petroleum Finance
Of¬
3105
Corporation
Wistar Ambler Company
31
Liberty Bank Bldg.,
Oklahoma Citv 2, Okla.
of
National
Nassau St.
New York 5,
BE 3-5733
Teletype OC 446
Members
Association
of
It would
simplification
Boule¬
Union Avenue, and 149th
Street.
Participants in the cere-;
&
ex¬
to
im¬
Securities
part
of
sterling balances of the Colonies
be obtained from
the
par¬
and
pected to be contributed by hold¬
individ¬
Price 3P/4 Cents per
Investment Dealer
the
capital
of
part
for
local
of
Common Stock
of the Offering Circular
is
enterprise
effort of locali
(An Oklahoma Corporation)
Copies
it
an
joint
foreign capital.
River
In
enterprise.
circumstances
TEXO OIL CORPORATION
bank
enter¬
abroad may feel justi¬
repatriating their funds to
934,400 shares
,r
resi¬
/■
/
•
adequate
local
The offering is made only by the Offering Circular.
are
left
agine however that it is possible
and
sell
be
to
gap
countries through the initiative of
foreign
capital
and
enterprise,
then, and not before, holders of
ers
privately
and
have
prise is built up in the backward
large
other
British
or
to
them locally.
difficulty that
the
savings, belonging
be
Colonials
non-Colonial
have
Gold Coast, aiming at the exploi¬
tation of the country's aluminium
of
other
British
investing
of
the
un¬
—whether by Africans and
tractors,
at
investment.
would
through the
To the extent to which the ster¬
are
of
done in.
needed
long-term
and
it
and at
them
use
funds
situation
possible
the Colo¬
cover
capital
ling balances
for
ticipation
would
balances
was
requirements,
own
secure
resources,
note
time
same
to
circu¬
It
foreign
conscrip¬
at the beginning of the
The object of such conscrip¬
of balances was to cover the
inflict
crisis
countries
the
Britain
war.
from
concerned.
more
the
of
the
to
their nationals;1 This
might
withdrawn
lation.
grave
amount
of
resort
exceptional
tion and therefor it cannot be used
to
tion
countries
States, but it
Occasionally the
happen.
participate
un¬
of
appear
balances
circula¬
not
may
rich
to
Governments
concerned
fied in
invest¬
proportion
cover
by
United
capitalists
persuaded
to fill
can¬
make them
the
as
foreign
nature
long-term
large
represents
charge of the
Branch drive-in
built
the
It
It is because of this
one's cake and to keep it.
breaking
ceremonies
took place recently for The Na¬
East Bronx
that
is
capital.
"lending"
such
pose
the
sterling balances.
suitable
un¬
Ground
tional
to¬
necessary
provide
answer
an
also
suaded to repatriate their funds o2
their own free will for the pur¬
that is frequently asked
nies is such
buy these securities.
P.
*■
"
largely
the
connection
the
Colonies
but the
most
Colonial
Secretaries.
*'■>
*
look
for
this
nial balances
spend the sterling earned.
They
are
only too anxious to import
locomotives,
their
exists
invested
change fundamentally before the
private
owners
could
be
per¬
ownership of most of the ster¬
ling holdings owned by the Colo¬
accumulation
amounts
balances is
willingness
cf
the
need
ster¬
means
absurd that poor countries should
The
lay¬
in
or
for the accumulation
sterling
the
development
Britain
lonial
other British securities.
reason
to
are
view of the large size of the Co¬
sterling balances
investment of large Co¬
funds in British Treasury
abnormal
American
home
is
It
funds
Government's
private investors in Britain
the capital?
Admit¬
tedly it appears paradoxical in
to
an
or
situation
to
no
ap¬
Frank
of
substantial amounts of dollars in¬
clude nationals of many countries
which are in desperate need of
not
'
1,
Colonial
case.
relation
tion
re¬
be-
finance
to
of
would
\
puzzling
capital
even
reserve
the
abnormal
Lembke,
and
form
nationals of relatively poor coun¬
tries in other international finan¬
cial centres.
Foreign holders of
of
or
sterling
of
balances
of
of
proportion
use
their own sterling funds
instead of depending on the will¬
ingness of the British Government
they are import¬
capital owing to the require¬
development of their
lonial
balances
not
of
Company
F.
Assistant
is
Colonial
is, how is it that the Colonies
sterling bal¬
natural
a
Yet
The
Colonies
capital
question
ments of the
of
The
capital.
Indeed
resources.
con¬
of
Assistant Secre¬
I.- McGraw
as
the
been
formerly
suitable
are
in
Vice-Presi¬
announces
of
i*:
Bayside National
York
plan
of
of
an
York
Squazzo
monies
Directors
Company
York and of The
Bank
the
Street
"
The
of
Committee
by
ers
re¬
and
conversion
aspect
These Securities
'
New
has
and
Freeman Street (Bronx) Office.
Advisory Committee of the Grand
of the
Anderson
for
Colonial
not
pre¬
require.
small
Colonial
wards
was
Mr. Lembke and Mr. McGraw are
located at the 57th Street Office.
Willard
of
Trust
Vice-President
was
pointment
of the
Branch
all,
announces
Geib
A.
Manufacturers
of
Secretaries,
Assistant Vice-Presi¬
Bank
G.
Mr. Anderson
Squazzo
tional
In
Vice-President
Assistant
Assistant
Edward
Central
a
an
Mr. Geib
dents.
;;
abroad.
ap¬
approxi¬
high
tary.
Joseph P. Hartnett, Paul W. Howe,
Nelson
W.
Kimball,
John
W.
Moffett, and W. Nelson Young,
formerly
of
Bank
Company of New York
has
made
cializes
over
accounts.
new
Thomas
like
1.952
of
deposits
Exchange
been
and,
Na¬
30,
$26,000,000.
that
investment
June
Bankers Trust will gain
he
Veitch
Bayside
resources
mately 35,000
Vice-
MacDonald
joined
of
as
total
specialized in personal trust work
1936
The
Vice-
named
of
since
in
exchange
an
the
The
schemes.
yet reached or even approached
the phase in their development at
which they could afford to invest
means
condition
proximately
Mor¬
of
None of the Colonies have
of
$27,800,000,
the
Assistant
were
Presidents.
for
plan
the basis of four-fifths
on
showed
New
members of its
investment
Presidents,
calls
The
stock for each share of Bay-
pany
S. MacDonald and Edward J.
gan
Boards.
share of Bankers Trust Com¬
tional
on
seven
Association
ment.
of
Company
million
accumulation
is
ances
the
of
goods
they
relatively
received.
amounts of
sterlng
capital
goods
The
The
side National Bank. The statement
In¬
4c
Trust
announced
trust
stock,
Division.
#
Irving
merger
of
Di¬
Com¬
Vice-Presi¬
as
National
Estate
of
of
of
Borough of Queens.
the
In
1929.
is
the
in
of
Bank's
of
Real
Assistant
in
elected
was
of
University,
Chemical
Department
he
dent
of the
of
return
balances
member of the Executive
a
in
pool
the
urgent
way to the Dollar Area so that
the Colonies contributed substan¬
tial amounts to the British dollar
been
the
particularly
accumulated in 1951 alone, largely
result
conditions
paradox
exceptional
in
does
man.
the staple exports of the Colonies.
Much of these
exports found their
Mr. Hayward, a graduate of Yale,
has
been
with
Chemical
Bank
1945,
£600
as
a
that
One
the Colonies is transacted in ster¬
Some
a
con¬
textiles, but
these goods
as
duce the British gold
1 ow danger level.
proportion of the foreign trade of
ments.
The
be
the
the
Colonial note issues.
has
a
Metropoli¬
Broad
to
be
The
a
Einzif
Mr. Dayton organized The
Bayside National Bank in
1929, and
Bank
He
the bank's
Division
responsibility
Assistant Vice-
as
since
continue
also
British
balances
is
Britain.
con¬
e
the
is, however, well in excess of the
total gold and dollar
holdings of
•
n¬
offices.
University
Chemical
will
fluctuating liquid
individuals
ling balances is by
buy
these
st it u t
for
high for
amount
In
•>•
whould
goods, such
sumer
Dayton, Chairman ling and for this reason alone the
Bayside Na¬ maintenance of
sterling balances
tional, who has been largely re¬ is
necessary. The present size of
sponsible for building the business the
sterling balances—their total
of the bank, will become Viceis believed to be in the
neighbor¬
President of the
merged institu¬ hood of £1,000 million—far ex¬
tion. He will remain in
Bayside ceeds, however, normal require¬
Sherwin
S.
of
or
reinvestment
have remained unspent. If it were
possible to convert them into dol¬
lars the Colonies would be able to
and President of The
Arthur
for
sult
in
d
announcement,; offi¬
the
funds
vailing in the Colones.
iJ
sterling
o n
there
too
are
should
stances
cials of both institutions said that
the entire staff of The
bal¬
distinct from trad¬
as
ing balances
of
some
the prices of
many of
substan¬
will be in Queens.;'In
seven
making
L
of
demand
sumer
is
,
conditions
ous
that
balances
of
BankersTrust ; Company
branches in Greater New
these
they prefer to keep
liquid form. Only genu¬
a
ine savings
are fully occupied and
quote early delivery dates.
Owing to the relatively prosper¬
Colonies
of
institution. It British
Colo¬
is planned to conduct the business
nies. Owing to
the merged
institution under5 their
close
the name of Bankers Trust Com¬
economic re¬
pany and present plans call for the
lations
with
all
for
reasons
of
for which
them in
industries
of
of
capital goods, together with the
goods. Holds nature of owner-
cannot
sterling
balances
of the stock of each
completion
many
prefer to keep their funds
sterling and many more rea¬
sons
for note circulation.
LONDON, Eng.—One of the
major problems inherited
by the
Conservative Government from its
the
The merger is subject
to
well
be
owners
for
investment.
long-term capital investment.
on-
of
the
Colonies-
available
capital
may
in
most
cover
long-term
the
be
ances
sterling holdings owned by colonies makes them
unsuitable for long-term
investment, since they are used as
.
Geoffrey V. Azoy, Gharles E.
Hayward, Jr., and Arthur S. Sher-
areas
consumer
in
not
may
which
Commenting on the increase of sterling balances in London by
British Colonies, Dr.
Einzig ascribes it to inability of British in¬
•
domiciled
they
There
CONSOLIDATIONS
NEW
NEW
uals
15
Dealers, Inc.
N. Y.
Colonial
1«
(2340)
The Commercial and Financial Chronicle.. .Thursday,
"THE CHASE IS OUR
TRANSFER
1 think it would
*Tor many
years,
corporation
cost
us
to
as
Among the
pay you to
talk to them
the Stock Transfer Department of the Chase has served
transfer agent. The fees for their services
maintain
burdens and
AGENT—
our own
department
responsibilities. Why don't
trust and agency services
Paying agent for principal
to
do this work and
you
offered by the Chase
we are
Transfer agent of stock
are
Registrar of stock
at
relieved of ail the
Chase?"
the following:
Depositary-exchange
under
Trustee of mortgage
our
actually less than it would
talk to the people
and interest
agent
reorganizations,
recapitalizations and
.
mergers
bonds,
Agent for trustees under
debentures and notes
Dividend
disbursing agent
Registrar of bonds and
voting trust agreements
Agent under
debentures
THE
are
Subscription agent
CHASE
NATIONAL
OF THE CITY
OF
NEW
escrow
agreements
YORK
Member Federal Deposit Insurance Corporation
BANK
December 18,1952
Volume 176
Number 5173
^
The Commercial and Financial Chronicle
.
.
A Year of Careful
Mixed
humbleness
mine.
have
hesitation
and
Planning and Doing Ahead!
happiness,
of
emotions
By EWING T. BOLES*
are
which
the
in
rough, rugged
region of
Grant County,
Ky., might
ever aspire.
Humbleness in
that
I
With the
boy
country
reared
a
know
slogan, "we must sell
to
a
free
talents
a
economy
year
and
the 60,000
men
women
Tells members "we
are
dedicated
"have been hidden under
a
Holds
bushel," but
in investment banking industry should be able
sell economic salvation
to
can
and
economy
pros¬
of careful plan¬
economy," and the ceiling is unlimited for its advancement.
important problems of the
to
the
savers
of the country.
to the
up
un¬
limited oppor¬
Boles
T.
affords.
office
Hesitation
might
the
in
fail
this
tunities
thought that I
thus
and
you
fail
a
great and gracious industry which
has girded itself to
tal
of
needs
this,
meet the capi¬
our
amazing
America.
Also
I
am
proudly
aware,
as
I
know you must be, or the great
and devoted men
who
as
IBA
Presidents
have
rendered
such
outstanding service to you during
by.
years gone
And
another
now
name
is add¬
ed to that distinguished group that
has accomplished so much in our
behalf.
Johnson has
Joe
outstanding job and
we
done
owe
an
him
debt of gratitude,
only for his great work as
President, but also for the many
years
of unselfish effort which
have produced so much of value
to the industry.
And along with the name of
a
tremendous
not
'Inaugural
the
address
conclusion
vention
of
sociation
of
the
of
the
of
41st
Mr.
America,
Dec.
Boles
Annual
at
Con¬
Bankers
Investment
5,
1952.
As¬
Johnson,
I
think
of
such
other
respective
postwar stalwarts as Larry Marks, tionally,
Albert Armitage, Hal Dewar, ognized.
fields is not only
internationally
but
na¬
rec¬
to the end of
to
a
returning this nation
sane fiscal policy.
flow of capital into
sound and
Ours
is
the
faith
of
our
fathers, that ours is a growing,
vigorous, virile economy built on
peace
and not on war.
Let us,
therefore, ask ourselves the
tion
of
paramount
ques¬
importance.
How much peace can our prosper¬
ity stand?
We
can
not continue forever the
almost constant war,
squandering of human lives,
the wasting of the savings of our
people and the despoiling of hu¬
carnage
of
the
man
way.
must
There
virtues.
better
never measure
Ewing
the
to
Korea.
successful peacetime
ning and doing in the securities industry.
limited
my
a
perity," newly elected IBA President foresees ahead
be speedily
killing stalemate of
answer may
found
President, The Ohio Company, Columbus, O.
that
beyond
to
God grant that an effective and
energetic
Incoming President, Investment Bankers Association of America
Happiness at the honor you
bestowed on me, which is
17*
(2341)
We
are
and
an
be
a
willing and
determined to maintain
a
prepared
alert America.
However, that part of our pros¬
perity that comes from war we
and zealous to re-Jr., Chuck Garland and a whole staff needs no introduction from the thrifty to put savings to work,
place with the products of peace.
host of illustrious men who have me. It makes up for its smallness without undue regulation or re¬
We know the formula for pros¬
served you so ably with such out¬ by
sheer devotion, ability and striction, are both an essential
energy.
part of that program necessary perity as few others know it. We
standing devotion.
have learned — and history haft
Thus, your President will be indeed for the continued expan¬
Therefore you can imagine my
proved—that freedom for individ*
feelings, standing here like one of ably assisted in each and every sion of the American economy.
ual achievement—with capital for
the
seven
dwarfs
in the
giant assignment that has been made for An economy which boasts only
wielded by an inspired
the coming year. With the support 7% of the world's population, but a tool
boots of Paul Bunyan.
of such celebrated, talented and nonetheless produces an unbeliev¬ people—can and has produced the
Fortunately for you and for me,
greatness of America. What we
devoted men, your officers accept able 50% of the world's goods.
I am not assuming the responsi¬
have done we can continue to do.
the challenge of 1953. We pledge
In this energetic economy,
bilities of this high office alone.
you
that while we may fail in money at work is the magic flux
Money invested in ideas — in
You have selected as Vice-Presi¬
many things, we shall not fail in which fuses the brains of invent¬ plants—in raw materials—in sales
dents to form our Executive Com¬
our diligence nor
in our zeal in ors—the skilled hands of artisans —in the genius of American men
mittee an outstanding
group of
your behalf.
—the techniques of management— —produces prosperity.
men in many fields of our indus¬
On all sides we see the limitless
When I accepted your nomina¬ the flying feet of distributors—
try.
tion last May, I could only hope and the gifted tongues-of sales¬ opportunities for steadily increas¬
Our
Congress, which we call
that the American people would men—to produce the richest civil¬ ing
production and prosperity.
our Board of Governors, is com¬
Who among us feels that the fam¬
do
what
they did by national ization in history.
posed of industry leaders from
ily ice box is the ultimate in food
mandate, overwhelmingly demand
every section of our land.
Like¬
Dedicated to a Free Economy
that this nation return to a sound
preservation?—That the family car
wise we place great store in the
and sane fiscal policy—the policy
It is the maintenance of this is the last word in automotive
ability of our incoming Group
of
sound
dollars
and
balanced free economy to which our efforts genius?—Or that the diesel engine
Chairmen who get the job done
budgets, on which American prog¬ are so completely and confidently that brought many of us here is
at the level where it counts most.
the last word in railroad trans¬
dedicated.
ress and prosperity are founded.
Our work will be further sus¬
We pledge to the new adminis¬
Today we are half at war, half portation? — That the highways
tained and speeded by Committee
Continued on page 67
Chairmen whose eminence in their tration our utmost in cooperation at peace.
JuTien Collins, Edward Hopkinson,
Our
The
skilled
and
experienced
free
industry and the opportunity for
must be ready
—
Blyth & Co., Inc.
Underwriters and
»iff j
<
v »i
NATIONWIDE
Distrib
of Securities
18
Financial Chronicle
and
The Commercial
(2342)
Thursday, December 18,1952
v..
'
>
'
v
'
■
-
-
-
Foreign Investment Is Job for Private Capital
militarily
and
if they
cutting each other's throats
commercially.
Therefore, poli¬
are
America
Investment Bankers Association of
Retiring President,
rapidly coming to an end
politically
JOHNSON *
By JOSEPH T.
Presi¬
My tour of duty as your
dent is
...
—only
a
few days of convention
remain.
During the
President, The Milwaukee Company,
Milwaukee, Wise.
cies
.formalities
months I have
Though foreseeing
rich
had
a
and
reward-
i
n
20 years
experi¬
g
and
ence,
am
shows
tunity to serve
d
e
t i
n
this
travels
hundreds
met
.joseph
bankers in
north
south,
and
the
leaders
in
thinking, what the Groups are
doing, but most important of all,
are
what
the
curities
is
IB A
to
means
the
^
business." Our
•
may have accomplished during the past year
and
we
this will be revealed
ous
is
the vari-
as
committees make their reports
r>-f course
riirectlv sftrihu-
table to the officers and commit-
both the national
tee members at
continuation
was
sake,
brevity's
For
touch
I
will
(1) The work of the IBA is go¬
ing on remarkably well, despite
the fact that we have two widely
instituted, and during the
recently, Korea,
more
Report
the
bering conclusion that America is
one
of
the
in the world.
becoming
rapidly
nations
"have-not"
allied against
forces
con¬
us
trol tremendous natural resources
have
that
scarcely
tapped.
been
somehow, we shall
supplies.
Somewhere,
fires that could be put
out—situations requiring immedi¬
ate and strenuous action, and per¬
as
have to develop new
United
The
facing
relatively
prompt
however, it
mitting "also
production.
Paley
natural resources at
disposal and reaches the so¬
our
each
were
military ahd
our
now-famous
surveys
plunge into World War II, Pearl
Harbor, the Berlin airlift, and,
regarded
only two:-
on
of
industrial
domestic
The
materials
raw
absolutely vital to the
States, therefore, is
long-term crisis that is as
a
much a matter of economics as of
year we have emphasized
withdrawal.
Today,
b.oth education and public educa- separated offices. I am convinced,
military power. Like it or not,
begins to appear that crisis in the
tion efforts, now, consolidated in however, on the basis of my ex- long-range sense is going to be history has pushed our country
into the position of the natural
the Education Committee.
perience, that a consolidation of
Significant progress has been 0ur offices—and I hold no brief eating three meals a day at our leader of the free world. And we
location—would table for a long time.
cannot
made. Member firms and groups for any given
pretend we are meeting
throughout the nation are con- make for a more cohesive organi- Two Developments of the Year these tremendous responsibilities
ducting a variety of educational zatidn, better coordination of
Two
developments
this year squarely unless our leadership is
promotional effoits that have functions, and more effective and underline related aspects of our not only political and military, but
brought to your attention economical operation.
economic as well. We must work
long-term economic problem.
through the forums and publica(2) To
a
gratifying
degree
for a wholesome economic situa¬
First,
the Marshall Plan for
member
firms and
Groups are
tions of the IBA. Now there is
tion
among
our
allies, together
Economic
R/acovery
svsilsble to mcmfoci films &nd contributing to the work of the European
with a steady flow of the raw ma¬
came to an end. This was a stop¬
Groups an easy-to-use, and yet IBA and are sharing the benefits,
terials needed by our own indus¬
gap measure designed to put out
trial plant.
onIe ?*' the most effective, public ^ tJlat
not universaiiy true.
;
one particular fire—the imminent
relations^tools, the new IBA moqu1. Association officers and
There is an
integrating force
significantly and in
manifold ways all segments of the
industry—from the largest underwriting house to the smallest disWhatever
ship
past
se
^
Association
serves
tributor.
with you here some observations
culled from my year's steward¬
was
long-term
a
it
essential
an
that
what
public education
program. I have been keenly in¬
terested in that project ever since
as
business
our
on
then, and must still be, recognized
in
and
are
of
sources
which
The
embarked
ciation
Canada. At first-hand I found out
what
those
operate
can
all
parts of the country, from east to
west,
port published on the situation of
the United States with respect to
a
investment
of
T. Johnson
have
I
year
investment
1
;
second development: A re¬
The
our raw
successfully and efficiently, if it receives
proper government cooperation. Foresees from now on greater reliance on
free enterprise and private finance, and holds securities industry will measure
up to its responsibility and opportunity in current developments.
1
a
marines."
warns,
long-term crisis. Says experience
investment in foreign field, but holds
inadvisability of government
private
industry.
In my Presi
and threatened diminution of
supply, U. S. is still facing
materials
oppor¬
our
emergency," retiring IBA President
of "a state of perpetual
had
have
this
cooperation between-industry and government after
more
because of unbalanced world economy
grateful to
to
deficit
dollar
the
remove
just as essential to' the grand
objective of containing commu¬
nism
as
atomic bombs or sub¬
12
past
to
are
.
and Group levels
operation with
an
working in co¬
intelligent and
tiom
competent staff.
t
Opportunity, -staff
picture,
.
,
I have
.On
cere
your
behalf, I express sin¬
thanks to those of
fellow
our
given so generously of their time and talents;
and you will share with me, I am
we
for
in the appreciation I express
the loyal and effective efforts
our
able
and
diligent staff
realization
full
and
come
the
of
to
not
maintained,
may
It is
reassuring to know that
immediate
plans
a
magnitude of the job our
well.
to
years
ago
Association's
America
will
delivered
north
are
or
east or west 0r whether we
are-in a metropolis or a town,
whether we are primarily whole-
saiers
or
distributors,
have
or
an
integrated operation—we must all
us
combine our efforts in the
0f
A
Annual
do
the
same.
Of
n
ice
ago
year
0ur
almost to
industry and
Today
would
I
with you
,
Proposed
that I
cated
would frankly share
r
Underwriters and Distributors
a
day,
of
20
of
government,
like to consider
to have been in a state of
ual
Capital Issues
perpet-
succession of
crises, either real or contrived,
and induced by either foreign or
domestic developments. In,. con¬
emergency
Empire
and
billions of dollars, we
could
step out of the European
picture, and allow the recipient
on
my so many
function
to
war.
been
ing
fusion and frustration many of us
have failed to
distinguish between
permit im¬
crises that
mediate and drastic correction and
and Dealers in the Securities of
long-term
requiring
A
fire
"suspended" crises
to work out.
be extinguished at
or
years
can
once—in fact it has to be. In
INDUSTRIAL CORPORATIONS
con¬
trast, eradication of termites may
PUBLIC UTILITIES
•
RAILROADS
take
considerable
unsteady
there is
MUNICIPALITIES
STATES
house
may
"stand,
need for the occupants
sents
MUNICIPALITIES
of
crisis.
world situation pre¬
suspended
The present
just
such
The
a
problem.
Our
appeared
on
the
.
America
tween
and
its
got to face:
be¬
Down¬
the
British
that
Army,
Available
world; and the British Gov¬
principal
of
this
of
through
premacy
precarious all through the
'thirties, and the war years has¬
tened and confirmed a trend that
shrewdly conceived
to be the*
function
economic
a
nice
•
BANKS
INDIVIDUALS
•
•
diplomacy and strength.
had
been
observable
for
America,
want
British
at least
emergence
national
we
The whole
is
instincts Unlike
not
are
repugnant
raw
But
is
a
when
.
.
new
House
what
valuable to
ample
clarity:
63 Wall
BOSTON
•
with
chain
of
cannot
nations.
he
•
Representatives in other Cities
the
old
be
saved
alliance
Nations
himself
inescapable
The world
find
for
of
..
ness
cannot be
to
used
freedom
the
is
is
interesting
government
its
business
free
the
national
own
to
operate
Continued
allied
greatness,>
to
power
on
Foreign Exchange
Philadelphia 2
75
314
Federal Street, Boston 10
North
Broadway, St. Louis 2
and;
page
Street, New York 5
CHICAGO
La Salle St., Chicago 4
enable,
easily
Commercial & Travelers Letters of Credit
Chestnut St.,
and;
side with--
4*.
208 So.
,f
and(*
in the English ex-:
us
that
Investment Securities
1416
the
on
out hostility. Government, fully
realizing the importance of busi¬
in the White
will
reasoning.
without;an
Street, New York 5, N, Y,
PHILADELPHIA
our
materials.
business existed side by
next January there
President
...
faced
DEALERS
Ripley & Co.
to
And the
CORPORATIONS
Incorporated
idea of
Britain,
dependent
so
outside world for
significance of this fact
for
Americans is stated by the
"'Economist" with admirable
not!
does
course,
model.
colonization
of
the
United
States as the Great
Creditor Nation in world trade."
decades—the
two
of
economic "empire" on the
an
Commercial Paper
Harriman
su-r
balance
been
30 Pine
INSTITUTIONS
as
For Eng¬
Goldman, Sachs & Co.
to
spear¬
emergence
power.
V
are
not
and
FOREIGN GOVERNMENTS
Our Facilities
at
than
was
England's
extension
has
Europe
regulated
was
It
than
heart-beat
industrialist,
ernment very
of trade
balance
The
rather
great world
the
last year, goes on to
point out one of the facts of life
.
and
trade
on
economy
then, like the United States
today, was the creditor nation of
this platform
which Americans have
pros¬
land
whose
journal,
same
distinguished editor
However
organize
a,
bucket brigade.
Nevertheless, they live in an at¬
mosphere
•
time.
to
CANADIAN GOVERNMENT
PROVINCES
the
no
over."
Street.
the
is
Plan
Empire
headed
Gap remains,
Marshall
the
The
more
might.
British
the
Economist
the London
"The Dollar
although
that
trader
than exploded. In
more
depended
Threadneedle
That short-sighted view
the
has
during the pre¬
healthy world
a
armed
of
before
as
Britain
Great
pumped into the European econo¬
a
—
our
perity and stability of the British
ago—that after we had
years
interesting parallel
present situation in the case
ceding hundred years.
pump-priming scheme of
own
our
possible area of co-
a
short-time
THE
to
fortunately, got the idea that the
Marshall Plan was something like
economies
interest of the total welfare.
Western
Europe. Too many Americans, un¬
our
operation between the government
When addressing the New York and our industry. ,
Group several weeks ago I indi-j
For the past 20 years'we seem
the
at
TT
Uni led
Convention,
Hollywood, Fla., Dec. 5, 1952.
41st
en-
Asso-
our
by Mr. Johnson as retir¬
ing President of the Investment Bankers
of
office
of
the presidents who follow in long
address
Association
in
torch
the
my
we
of
collapse
economic
lightened public relations burning my inaugural remarks, I dwelt on
staff brightly, and I fervently hope that the respective responsibilities of *■ noted:
.
*An
successor
keep
succession
five
j
entire
diversity
is doing so
Just
.
,
be lost, but
and even ac^
eelerated.
members. Only through a year of
close association have I
Whether
ness<
-
,
,
,
veloped
rather
sure,
of
.
fP sothe momentun with havehope soutJ1
again today,
the de-.
that
members who have
the
for
industry, all sections of the counand
segments of the busi-
.
j
consistently preached education and m re education, and
working
are
70
Volume 176
Number 5178
.
The Commercial and Financial Chronicle
.
.
19
(2343>
A Free Market
Feeling
the
tion
By WILLIAM McC. MARTIN, JR.*
lead
are
about
dent
that
to
society
our
is
serve
The incident
I
with
it
permis¬
sion.
I
not
am
going to name
he is a Demo¬
say
can
tell
his
W. McC. Martin, Jiv
him, but I
with
mine
Senator, and
a
cratic Senator of considerable in¬
fluence
who
in
Washington
believes
^that
the
—
man
a
things
same
and I believe in.
you
On
in
learning
that
I
at¬
to
tend your convention, the Senators
said
to
time
your
"Why do
me:
waste
you
going down to the In¬
Bankers ^Association?
vestment
They don't have
any real political
and, after all, what do
influence,
they do—just play around?"
The question, whatever its demerits, did give me the oppor¬
tunity to tell him—and I repeat
•
•
that
he
is
structive
.the
time
the
of
in
of
your
*
I -have
most
con¬
Senate—of
the
men
work
..the
one
during
group
been
the
on
Federal Reserve Board.
I explained the
voluntary credit
him; how halting it
have been—without dis¬
might
to
*Stenographic report of
an
illusion
it
as
I
to
at
tion
of
the
Investment
tion
of
America, Hollywood, Fla., Dec. 2,
the
41st
Annual
Conven¬
Bankers
Associa-
'
*1952.
because
me,
skeptic—and
a
it
ful
started
I
how
actually turned out
told
how
him
the
"
group
bonus
help¬
to be.
I
Investment
gathered
we
collection
business
the
well
as
the
as
table
large
"I
and
lender
that
we
situation
that
Was
a
ting out of hand.
The
.to me—I
me
can
remarks
inflation
only
will
rapidly get¬
horizon.
The
I
come
the
around
benefit
these
made
would
place
the
is."
few
a
depression
a
and'
when
I
on
to
Florida
the
little
talk
a
if
his
to
Association
recall;
you
the
thousand
in
there
I
individuals, and we have
study of what they will
should
me
that
try
a
the
seriously than
more
have,
for
it
seemed
problems the
facing
was
were
to
coun¬
virtually
we
The Governor
was
in the Fed-'; dred of it
on
women,
and the
Building, surrounded other hundred they are going to
by investment bankers and other- waste."
dealt
bankers
and.
by
him
why
His insight into economics—and
businessmen, %and "
they explained toy perhaps
into
human
nature —
one
it
would
under current
not
conditions
be"wise
to
might
have
the West Virginia bonus issue.
him
a
when
I
banker
who-was
educational
:
it
was
apparent
that
me
un¬
to the point.
an
to
a
group
men.
this:
by
what
a
official
of
responsible
should
say
worried business¬
The lecture went about like
You
should
always start
these are the most
and
perilous times the
saying,
difficult
not
rays
out
of
horizon
the
♦
that
i
sunshine
of
apparent at
Part of
experience -country has ever faced;
never
in
a
that
time.
Free Economy
It seemed to
me then, as it does
retrospect, that the busi¬
in
now
ness
community
Government
tude
with
well'
as
showed
the
as
little
forti¬
respect to making the
which are essential
adjustments
and
a
necessary and a vital part of
free
competitive
those
in
In
economy.
darker
sures
days, all the pres¬
Washington—and I can
speak with
because
at
the
tion
I
some
was
feeling
in
time—were
of:
the
in
this
on
Treasury
the
direc¬
Don't
permit any down¬
move!
Don't permit this
thing to gather any headway!
Don't have any adjustments what¬
ward
ever!
way
mit
We
shouldn't
here
in
Florida
in
the
'
inflate
our
out of it, but we can't per¬
the
adjustments that have
the
-v
«
vY,J>'Vv.
A.-
'
:>
'
'
140
^
Broadway
New York 15, New
;
-
'
'
:
'
-
'
"
\
'
"'•.
T
~
:
;
■'
..
;
..
•
•
!■
I
UNITED STATES
•*
.
Dealers in
>
"
-
-■<
York
v
,
'■
'
' •'
■-
1
t.
•
■•■
:;
,
'
GOVERNMENT SECURITIES
STATE AND MUNICIPAL BONDS
i.
,
way,
to be made!
We may face a pe¬
history of the country has- the
riod like that again.
That is the
Spring of 1949.- •ship' of state been so close to the
reason I recall it.
But all I want
That was when I was a neo¬ rocks.
Then,, by the clarity and
phyte as Assistant Secretary of exactness and sharpness' of your
Continued on page 44
had
-ste-
"'.if.
while the.'
the
on
•
the
:
to
was
the
•
was
,
and
•
recalled
It
I
of
part
process,
doubted ' but
conscious humor
The Governor had brought with
this
be
with
Government
that
now
were
are
are
.
eral Reserve
I
listening
Making Adjustments—A Vital
myself and everything else
considerably
•
me
that
not
were
But after
to frighten any¬
morning.
Indeed
it
to
1949
here
want
this
seems
in Miami.
taken
,
just scared to death."
am
don't
clouds
consented, and on the plane
en
route,
began to think over
what I might say.
I must have
this
time
I
I
room
will do with this money."
insuperable, for I couldn't see the
He
brought the
paused
a
moment,
then answers, and it naturally dis¬
Governor' of • West
Virginia
to added: "It is perfectly apparent turbed me.
Washington in connection with a* it isn't -' inflationary.
Then
I
recalled
a
course
in
They are
proposed
soldiers' ~ bonus
bond going to spend a hundred dollars public speaking I took years ago
issue by his State." '
of each bonus on liquor, a hun¬ in
which
one
of
the
lectures
some
to you,
I
in
Bankers
on
still—pulled
"Young fel¬
said:
came
upset.
re¬
Secretary asked
make
Florida
over
by it. There is only
involved for each of
$300 apiece
impressed.
in
they
having
saw
some
of
readjustment, thought
banker
too, looked at me and said,
know what all this fuss
Then I told him about something
of
his
people
in the State of West Virginia that
could handle
was
to
banker,
this
embarked
him
see
aside, and
one
cession and
don't
are;:
-
Senator
charming in¬
a
when
clouds
at
addressed
pretty good style. But after it was
over, a fellow came rushing up
low,
and
looking
I
Miami, I
something just about as pompous
as that, and I
thought I had car¬
ried through on the formula in
emer¬
place."
Treasury
people,
"After all," he continued, "this
isn't
really
inflationary.
There
meaning of credit and
so
The
the
about
as
finance,
help.
the
against the
Governor—#nd
issue, the
say he is
heard
educate
to
must
for
had helped in
the bor¬
resources,
attempt
rower
together
a
managerial
of
adamant
was
dividual—turned
Bankers Association, participating
in
the
program
with others as
address by
Martin
when
in
group
debris in
away
all the
goods hands
might survive.
Well,
free market. Holds Federal Re¬
a
in
was
pretty
one
.program
of clearing
a year
"lies in freedom of action and choice in the market
to the true
was
largely
was
and
Lauds
economy.
a
conversation
.of
free
primary bulwark of free enterprise, but solution to economic stability
today.
c o n c e rns
our
market/' and commends work of IRA in support of
Government Bond market and reestablishing
make
can
"free
a
credit controls. Says 1951
gency
like
group
this
return to
ship of state
renewed independence of Federal Reserve Sys¬
on
making adjustments is vital part of
con¬
tribution
a
tem, points out
I
illus¬
trates the
solutions, you would
audience,
subcon¬
your
sciously, to feel that after
Mr. Martin, commenting
inci¬
an
which
think
Mr.
proposed
Chairman, Board of Governors, Federal Reserve System
really the essence of our
democracy, I should like to open
by telling you
...
Propels Our Economic Machinery
I do that groups like
Investment Bankers Associa¬
as
'
,
f
20
The Commercial and Financial Chronicle
(2344)
Thursday, December 18,1952
...
Trends and Problems of Life Insurance Investments
By CARROL M. SHANKS*
Investment bankers and life in¬
and
the
needs
(1) decline in U S Government Bond holdings; (2) expansion in real estate
mortgage investments;
our
try.
in
We
business
ance
the
in
times is not
an
tional
panies
and
investment
of
Life
Trends
Companies
understand
causes
Beginning in 1947 there occurred
a
steady and pronounced decline
in holdings, so that by the end of
August of this year life companies
had cut their holdings to $10.3
underlying
the
for trends in life insurance
one
must appreciate
well
ing with Lee Limbert, Rudolf
Smutny, Frank Kernan and Tip
Barclay on the National Volun¬
tary Credit Restraint Committee.
I can assure you that they, along
with
the
regional
investment
bankers'
committees, played
a
.'large role in making the credit
restraint program a success. More¬
over, the investing banking fra¬
ternity as a whole deserves enor¬
"
.
mous
credit
for
and unselfish way
the
courageous
it screened
mu¬
total assets of the companies.
the
World War II
bankers, investments,
pleasant experience of work¬
some
trends
and problems in life
ac¬
As
have
I
indi¬
companies as a
matter
could
hardly
life
the investment
which
they did follow in
period. The enormous
demand for capital funds by busi¬
course
the postwar
high degree of safety of prin¬
cipal. Emphasis on maximum re¬
turn stems from drastic competi¬
tion in the sale of life insurance,
which means in turn that each life
a
must keep the net cost
of insurance to policyholders at
the
lowest
possible level. The
company
cost leads
to the keen competition between
need to keep down net
billion, representing 14.5% of as¬
sets.
pected that the companies would
shift
into
this field.
The third
in
life
area
company
pansion
major change
portfolios since
be
restored there would
move
companies
in
life companies
liquidate Governments in order
to
help meet the demand.
ness
and industry, including the
railroads, public utilities and in¬
increased to
slightly
over
lution to inflation in the postwar
period
some
of
in
postwar
with
assets.
By
the
end
of
expansion
one
any
of output.
If
had failed to
would have lost out
company
respond,
it
drastically in the competitive
race
with other
companies, to the great
dismay of its agency force. If the
industry generally had not re¬
sponded, the wrath of the govern¬
ment and of the public brought
down upon its head defies imagi¬
nation.
I
know
what happens
the investment officers in achiev¬
of
company
investments
contributed heavily to the
have
life companies acted
14.8%
to increase industrial
life
and
$30 bil¬
on
the major trends
was
output in order to catch up with
the war-expanded money supply,
when
Government and corporate
by
More¬
Government econo¬
mists have argued, the basic so¬
over, as most
operations.
yield spreads
supply
available
savings and created
great pressure on
Here
again
the
development
their invest¬
ing their primary investment ob¬ was to be expected. As the war
It explains the
jective.
ended and business concerns felt
sensitive
responsiveness of life
A second noteworthy trend in the need for capital funds to fi¬
investment officers to changing
life
ment
policy,
the
to
holdings of securities of busi¬
to redress the balance.
promptness
to
ex¬
in
lion, representing 42.5% of assets.
which the Of the total increase of $19 bil¬
reflected not lion in these holdings, public util¬
only the ready availability of good ity bonds accounted for $6.5 bil¬
outlets in private sectors of the lion, and industrial and miscel¬
economy but also the alertness of laneous bonds for $11 billion.
a
The
response
economic
the end of World War II has been
of long- dustrial concerns. Life company
securities, plus assets in this category amounted
the unbalanced portfolio position fto about $11 billion at the end of
of the companies in Governments
j 1945, representing 24.7% of total
at the close of the war, made it assets. By the end of August, 1952?
inevitable that as peacetime con¬ -holdings of these securities had
were
of
Government
by
from current
Government
ditions
direct
in
exceeded
of
The relatively low rate
term
and industry and in the hous¬
field,
encouragement
.
nance
reconversion
and
expan¬
various types of life insurance investments in the
securi¬ postwar period has been the sharp sion, it was obvious that life com¬
increase in the volume of real es¬ pany holdings of the securities of
importantly to the fight against ties and mortgages.
inflation in the explosive months
The main objective and prin¬ tate mortgages held. At the end business and industry would rise.
The increase was accelerated after
after fighting started in Korea.
cipal characteristics of life com¬ of 1945 holdings of mortgages
amounted to about $6.6 billion, or the start of the. Korean War as
Today, I will discuss briefly pany investments are illustrated
nicipal financing under the pro¬
gram.
Your efforts contributed
prices.
the
practical
burden to nation, but also makes impossible
Problems
capital
the
a
Since
and
as
other elements of the the fundamental objective of life
market, was abundantly company investing, one which is
demonstrated during the period of little understood.
This objective
the
Voluntary
Credit Restraint must be to earn the highest pos¬
Program. During that time, I had sible rate of return consistent with
as
by the
so
ing
To
com¬
seri¬
ness
Investment
pros-'
life
between
done
have avoided
general credit controls.
perity.
Teamwork
cated,
im-
portant in¬
gredient 'for
general na¬
Shanks
could have
curities
Contends continuance of low-cost borrowing at all
banking
ment
M.
program.
only too great
invest¬
field is
Carrol
and (3) increase in securities of business and indus¬
Discusses "direct placement" of securities and reviews government policies
bond-pegging
t h at
prosperity
than
by life companies.
Reserve had
finally taken in March, 1951,
namely,
the
abandonment
of
rigid support of Government se¬
affecting economic stability. Lauds release of Federal Reserve from Treasury's
the life insur¬
think
it
as
rather
Reserve
the Federal
ously tried to reduce these sales
national econ¬
omy.
Federal
tion
the
of
trends in life insurance investments since World War II:
If
Mr. Shanks lists
funds
meet
to
directly out of purchases by
grew
out of the sales
directing
capital
disposal of Government securities
President, Prudential Life Insurance Company of America
coriipanies
cooperate at
many
points, compete at some
points and both are part of a team
mob i lizing
surance
one
cuts
company
down
partially on its mortgage loan and
other lending. Accordingly, in my
book, the criticism directed at life
insurance companies for their dis¬
posal
the life companies participated in
Government
of
securities
has been short-sighted and un¬
August, 1952, life company hold¬ financing the great increase in in¬
j insurance company investments; War II. Perhaps the most dra¬ ings of mortgages had grown to dustrial capacity needed for our justified.
Direct Placements
also comment on Government matic trend has been the steady $20.6 billion, or 29%
of assets. national defense.
With real estate mortgages on all
As you know, the life insurance
Turning to
another item, . I
policies which affect not only life and large decline in life company
holdings of U. S. Government se¬ types of property available in companies have been criticized know you are interested in the
company investments but our en¬
curities.
At the end of 1946, at great supply, all encouraged by for their disposal of Government matter of direct placements, and
tire national economy.
the peak, holdings of these securi¬ government policy, and with the securities in the postwar
period. I am glad to have this opportunity
ties by the nation's life insurance better net rate of return an mort- The criticism rests on the grounds to give you some of my views on
*An address by Mr. Shanks before the
that a substantial part of these the subject.
To begin with, di¬
41st Annual
Convention of the Invest¬
companies amounted to $21.6 bil- gages as compared with Government
Bankers
Association. of
rect placements in corporate fi¬
securities were purchased
America.
by the
lion and comprised nearly 45% of ment securities, it was to be ex¬ Federal
Hollywood, Fla., December 4, 1952.
Reserve System in order nancing today are important. Dur¬
to support the
market, and that ing the period 1947-1951, inclu¬
these purchases added to
sive, according to SEC estimates,
com¬
mercial bank reserves and thus corporate securities offerings in
fed
the fires
of
inflation.
My this country amounted to $33.8
answer
to this criticism is that billion, of which $14 billion, cur
the basic difficulty lay not in the over 40%, were direct placements.
sale of Governments
by life com¬ During the period 1934-1951 the
panies, but in the support pur¬ life insurance companies acquired
the field
since the
of
end
World
'
1
'
chases
The
Corporate and Municipal Bonds
by
the
Federal
Federal
Reserve
Reserve.
policy
of
supporting Governments at a peg¬
ged price, particularly above par,
invited
sales
of
Governments
all nonbank investors.
tionary
aspect
The infla¬
life
of
by
over
$20 billion of corporate
ment route.
estimate
all
According to the best
available, nearly 62% of
corporate bonds,
Continued
company
and 90%
on
page
Investment Preferred Stocks
W.
E.HUTTON & CO.
ESTABLISHED 1886
Equipment Trust Certificates
Underwriters
•
Brokers
1
'
Dealers
CORPORATE AND MUNICIPAL SECURITIES
★ NEW
YORK
if CINCINNATI
★
Corporation
t'>£
★
★
Portland, Me.
★
Chicago
Lexington, Ky.
Letviston, Me.
Fusion, Pa.
Hartford
Correspondents in
Union Securities
HARTFORD
★ Boston
Dayton
★
BOSTON
★ Baltimore
★
65
Philadelphia
★
,
★ Detroit
^
★ Louisville
★ Sun Francisco
if Private ff ire Connections
Broadway, New York 6
BUFFALO
4
PHILADELPHIA
CLEVELAND
f;
\
SYRACUSE
New York Stock
Exchange
Memberships
se¬
curities through the direct place¬
Exchange
New York Curb Exchange
Philadelphia—Baltimore Stock Exchange
Midwest Stock Exchange
Chicago Board of Trade
Cincinnati Stock Exchange
of
34
Volume 176
Number 5178
..
The Commercial and Financial Chronicle
.
21
(2345)
Progress and Problems of Aviation Industry
difficult
It is rather
those
to
present
By WILLIAM A. PATTERSON*
air trans¬
portation in which I feel you are
of
components
interested
which
about
or
After
ques¬
to
I
try
interest to
think
duce operating costs
me.
they
on
Discusses opportunities to further
ordination
that
they
rather
some
impor¬
airplane
comes
that when
so
an
in and there is any
cal decisions
—which, by the
to be made in
A. Patterson
$100—and get
have
about
the
heard
beginners
whom
tact
in
I
ever
who
and
in
came
seldom
little
Vern
bus
Gorst
con¬
has
who
been
a man
owned
a
line
in Oregon. A man
little education, he cer¬
tainly wasn't an analyst and he
with very
wasn't
statistician. Had he been,
he wouldn't have entered the air
transportation
Air
field.
He
Transport
$300,000. He set
started
the
on
up
Class
a
A stock and
a Class B
stock; the
voting, $10,000 worth;
the other $290,000 was Class
A,
non-voting. Vern Gorst paraded
up and down the Pacific Coast
was
and sold every
stock himself.
I had
an
single share of that
opportunity to observe
his
of
some
accounting practice
and philosophy when I was think¬
ing of entering Pacific Air Trans¬
port
after
about
asked
it
had
seven
Mr.
been
operating
eight
or
Gorst
if
months.
one
that revealed
I
me
$15,000.
I
it
could
nothing covering depre¬
see
asked,
preciation
ment
said,
I
some
*An
41st
went
address
Annual
carpenter
to
a
bins
out
our
have
we
in
new
by Mr. Patterson
of
Association
Fla., Dec.
ex¬
we
Convention
Bankers
Hotly wood,
you
clear. When
hangar. In those bins
-
He
thought
question. The
very
hired
us
equip¬
facilities?"
would ask that
build
about de¬
flight
know,
planation is
I
and
other
"You
started,
"How
this
on
and
quickly
3,
the
of
at
the
Invest*
America.
take
quick
a
glance
art
of
flying; to find
crude
start.
I
doubt
whether many of you in this room
have participated and coop¬
who
erated
and
helped this industry
faith and your willing¬
to raise capital for us, realize
subsidy
an
from
where
and
hour.
That
about
was
been
a
as
things in the airplane
tive
the Atlantic.
ing.
bergh's flight
across
that
to
time,
according to
records of most of the companies
that
operating, and
only two or three, all
were
capital had been raised privately.
Almost
overnight after Lind¬
bergh's flight we saw the invest¬
banker's
ment
We
interest
him enter
saw
recommending
and
mergers
and
This
in
ments
went
to
110
on
to
from
the
and
we
a
picture in
to
an
miles
saw
some
combination
That
the
was
which
carried
next
went
This
was
to
era
21
of
the
230
miles
with
the
four-engined
rate of 45
is
up,
that if you
last
We
Finding
reasonably
the
cents
the Big
givert a
ton-mile, which
a
think
which
were
the
that
any
its
the
services.
think
something
of
paid
that
in
I
economic
you
an
mately
development and
and,
as
are
Department
on a
I said, the Big Four air¬
receiving 45 cents
have
sketch
given
of
our
complishments.
a
you
banker.
vestment
We
have
are
thumbnail
an
obligated
the
to
private
fact,
I
would
facilities
through
which
Continued
on
Established 1850
)Vi
it
,!
New York
now
London
Chicago
insurance
say
that
we
have tapped everything available.
Nevertheless,
you
have been
con¬
structive. We all have participated
1952.
State
Blair.
and
ft} k
Rollins
Munieipal Bonds
Incorporated
Municipal Bond Department
Underwriter®, Broker* and Dealer* in Securities
TELETYPE NY 1-708
Governments-.*
Municipals
Industrial*
F.H.A.'s
•
*
•
Public UtilitiesMutual Funds
THE NATIONAL CITY BANK OF NEW YORK
44 Wall
Street, New York 5
Telephone DIgby 4-4000
Teletype NY 1-1109
Private Wire System
New York
Detroit
Connecting
Philadelphia
St. Louis
67
Head Office:
5 5
branches
in Greater New York
Wall Street, New York
Chicago
San Francisco
MEMBER
i
FEDERAL
DEPOSIT
INSURANCE
en¬
in government which used
private
companies and commercial banks
—in
ac¬
administration
Hallgarten & Co.
we
toil--*
I think the record
tribute to
great
a
in¬
progressed to the point where
a
objectives and
advertised for bids. Private enter¬
ment, private ownership, the
ton-
mail service
mile.
commercial application for the
prise,
through
the
investment
banker, came into the picture. So
we
had a partnership: Govern¬
is
the
idea, there is approxi¬
$2.30 in revenue to the
Post Office
ele¬
a
sense
of responsibility
developing the airplane;, it had
faith in private enterprise to un¬
of
value of service or in excess of
the revenue that the service
pro¬
duces to the government. To
give
great
system.
in¬
am
excess
being
of
subsi¬
relative
subsidy
sound
a
money
is
government
to
organ¬
any
gets
terprise, and to
Application
a
who
clined
is
Commercial
Now the next objective: to find
first
airplane, the DC-4,
April,
don't
ization
I
accomplished.
It
today
non-subsidy rate.
know just how many
people figure subsidy. There are
wrap
the development in the
and
a
I
lines
developments, speed, com¬
hour.
an
ago
mile performance of
elec¬
see
DC-3,
passengers.
achieved
will
of flying has been
well
and
that
it all
hour
an
have flown; look
You
I would say
130
for
dertake
tion.
art
180
Government at that time had faith
in
miles
110
as you
today.
mail.
fostering
capital
picture was
our
90
and from
accom¬
advancements
fort, safety, airway aids, naviga¬
aroused.
substantial
to
and
We
it
at
developing the art of fly¬
then
were
there
hour
many
I will just say this: stop for
moment; think of the airplane
you observed it grow and de¬
Lind¬
Prior
and
you.
repre¬
equity
of
$1,600,000.
in that development
with which I do not intend to bore
tronic
with
and
cost
many,
plishments
through the development of air¬
craft, keeping in mind our objec¬
came
year
Four trunk carriers
of
investment field and the raising of
capital
A
value
up
be
re¬
is from other
revenue
regardless
velop and
today. I think the big turn¬
ing point in the attitude of the
our
dized,
field at that particular time.
Now
let's
just
go
quickly
we
we are
of
hour.
will
■
sources, with only 7% from mail.
The
DC-7
as
pas¬
ton-mile.
a
air
down
from
have
five
speed
went
Our
Wrapped
to
airplanes
that
cost
us
$16,000
apiece. Our speed was 90 miles
sentative of
came
eventually
Our company started with
with your
where
but
$10.80
from
was
some
the
quite
Our
$1,314.97.
standpoint of relative cost/
original plane cost $16,000.
DC-6 today costs $1,000,000
become self-sufficient.
rather
ment
an
cruising
$591,-
for the first
year
was
development of', the air¬
plane also can be viewed from the
com¬
a
a
The
date. We started out 25 years ago
with three objectives: To develop
the
with
350 miles
have accomplished to
we
that
tribute
scanned
ciation. I
let's
mercial application for the use of
the airplane; to do it with govern¬
see
might
of
rather
Now
at what
business—courage and a cer¬
knowledge. But it is in¬
teresting to observe progress from
tain lack of
raised.
profit for that
a
month
added, "Mr. Patterson,
depreciation."
That is what it took at that par¬
ticular stage in the development of
I
his balance sheet. He showed
particular
no
DC-7
do
airlines.
about
revenue
hour, and now many companies,
including ours, have ordered the
in Aviation
was
was
The first year 99
4/10% of United's
co¬
an
What Has Been Accomplished
the
all
next
ceiving
development of the airline accommodating 44 passengers.
Then came the DC6 at 300 miles
industry.
ness
Pacific Coast. I don't know where
he got his advice on
finance, but
Vern Gorst had $10,000. He had to
Class B
He
there is
a
Pacific
raise
new."
our
given much prominence, is
named
deal
great
a
aviation, but
interesting individual
most
with
only
us
of
objective was to
self-sufficient. We started off
in the
part for the
new
airplane, which then is just like
the future.
We
cost
way,
a
passsenger
existence
didn't
we
other
gradually
wear, the mechanics go to the bins
in
revenue
The
93% of
parts segregated
tant and criti¬
W.
as
of operation
possibilities.
plishments;
also
involve
years
senger
re¬
the
year
I remember that in those
well
ground and improve and mechanize airport facilities.
accom-
that
$78,000. In 1951 it
000,000.
first
(2) future equipment; (3) the air "coach"
Favors re-examination of transportation regulatory agencies with view to
represent
some
(1) labor relations;
as:
then
about
thumbnail sketch of the development of commercial aviation,
a
business; (4) government regulation.
which
of extreme
are
I
dustry
few
cover a
things
giving
Mr. Patterson outlines the critical decisions and problems
confronting the in¬
am
to
going
1926
for
airlines
have
some
In
revenue
you
may
tions.
airplane.
President, United Air Lines
CORPORATION
to
page
ad-
81
22
The Commercial and Financial Chronicle
(2346)
Thuisday, December 18,1952
...
In Defense of the RFC
Washington
interesting
There is
is
one
a
perhaps
is
getting
ready.
tors who
Former Chairman,
,
Securities and Exchange Commission
Administrator
numb; some of
McDonald, commenting
realized
happened,
though
of the
istration
'yet
Reconstruction Finance
general ignorance of the vast role played by this
al¬
'
some
Reconstruction Finance
fluences" in
television
—
i
heard
all
ahmif
W
his
J„
,
,
^
to
situation
ington
is
it
it
l
?
who
u
1849
th*
a
was
in
asked
^
very
to
f
apt
tells,
50,
when
^°ld Hush was on in Call-
forma* decided he would take his
little family and
he
go
bought himself
finest
horses
himself
H,aonn
a
_n
he
of the four
could
buy,
h•
+nn,
got
covered
modern
very
,
out there. So
some
u*Q11fifiii
"
,
bride and
and
with
small child and
the
followed
started
four-horse
the orthodox
team
route.
Administrator McDonald
nual Convention of
Association
ers
Fla.,
Nov.
30,
of
the
an
at
address
the 41st
by
An¬
big
a
«
arrow
couple of days and when
regajned
consciousness
he
a
the
apprajSed
situation
fig-
and
observed
jying
as
one got in the back of the boat,
They never changed positions all
rather close vantage point day. The fellow sitting in the
member of the Securities front of the boat had
been
I
t
I
He had tucked a nice
vw+l„
+',,11
h*t
bottle full of hot coffee
thoughtful.
thermos
they tried
to
accomplish
and
weren't able to do, but those
there,
he
started
time.
things take
in favor of
some
that
been
have
heartily
of the thoughts
I
am
this
expressed
from this
platform
as
in the back of the boat
hadn't been unthoughtful. He had
sitting
in
his back pocket. As the day went
on it grew cold, kind of stiff and
tucked
The fellow in the front
chilly.
was
the importance that the IBA can
and should play in such a transi-
Bourbon.
tion.
in the
to crawl
sticking
in his back.
cf
from
fellow
down
a
his stomach.
on
It
Finally a
cavalrymen
riding
fort
found
the
one
of them jumped
began to talk to him,
nearby
and
and
out
IBA
can
influential, and
make this one
may
The
■
mark:
have
I
challenging resaid it before, I
convinced of it
was
grow more
I hesitate to
as
member
a
counsel him, tell him how sorry of the Securities and 'Exchange
they
find
were to
bad
shape.
him
He
such
in
to
says
the
frontiersman,
"Does the arrow
hurt you in the back?" He says,
'Only when I laugh."
think
that
Wash¬
expresses
existence of IBA to
very
convinced
of
dustry
itself
me
realistic
thing
and,
is
of
of
yourself
always
part
about
been
reticence
industry
not
to
do
not
to
do
not
are
There
it.
a
the
of
I
satisfied
Acts
I
are
has
been
in
the
now
perhaps
voting,
one
made
to
I happen to
action.
I
the
of
think he
best
non-partisan,
t
can
help
duck
but
blind
way:
Lucas
he
nois
son
Reconstruction and
of
non-
non-politi-
be
a
when
It
goes
localizes every
and
down
he
in
this
story
tells
this
lower
Illi-
the
story goes- They
set their decoys the night before,
There were two fellows.
They
had
everything
for
set
departure.
there before sunrise.
One got in
Foreign Dollar Bonds
Lucas
the duck hunting sea-
how
morning
Canadian Bonds
Scott
opened and it happenedU to
cold, lousy, damp day. _You
know
Development
tell
story.
tells
about
shooting. J
dunk
They
It
was
fine
a
That
shot.
shot
a
I
as
that
"Brother,
drinker,
have
as
was
seen,
ever
I don't think it was quite so good,
well; I have ob-
very
down the Mallard
drinker said to the
if
reputation of being perhaps the outstanding duck shooter,
Securities of the International Bank for
and
barrels go
That was a dandy." Whereupon
the Bourbon drinker said, "Well,
say
with
they
as
Bourbon
fine
bears the
•
bead on
a
you
you
agree
that
,
took
nothing happened. The fellow in
the back jumped up and the first
the
on
that
that
this,
that.
general counsel.
story
Bankers' Acceptances
coffee
The
landing.
him and let both
was
people in Washington and a
gieat influence.
He, lacetiously,
Company Stocks
perfect
■■
drinking fellow
has
that reappraising
them would be a good thing, and
the IBA should be an important
up,
Sneaking
Bank and Insurance
a
brought
importance
cal
Railroad Corporations
was
one
nipping and nipping. On the horizon
they saw a Mallard making
coffee
is
of Industrial, Public Utility and
Each
stiff.
shot
know him
Bonds, Preferred and Common Stocks
about
The
served him
Securities
just
that
Reference
State, Municipal and Revenue
until late
horizon
in the afternoon when they were
play and the influence that
could wield were you to set
your
Government and its Instrumentalities
his
thing showed up
a
whole
back
the
nipping
kept
Not
tremendous
of
aware,
powerful factor in bringing about
this change.*
||§§! Securities of the United States
in
fellow
boat
early
got
dark,
the front of the boat;
When I shoot into
flock of them
a
like that I generally get three or
four."
About the RFC
l
bit
I
called
was
^he
and
j
I
hot
a
think
it
the
a
^
take
that
no
come
by
a
good
many
j
a
have
placed
in
position.
I
been
challenging
very
about
good many, I'd say
four_not to do it, but
0r
djd
and
advised
pe0pie—by
j
heading
bones
issues of those who argue
the
rFC
usefulness,
or
has
outlived
money
I
you check
irrespective of our political con¬
victions, irrespective of our party
affiliations, we hear a lot of talk
small
about
vation
the
small
too
definite
about
to those who say it
economy,
has played a
important role. I know how
and_Up
about it.
or
the
at
least
Congress,
been
ever
here
merits
have
of
believe
backbone
smaller
the
business¬
that
or
idea
attempt
FIRST BOSTON
is
said
Boston
Philadelphia
Pittsburgh
Cleveland
business, because, as we
know, large business today in
peculiar economy is essential
large
and necessary.
Now
you
in
has
RFC
that
is
do
in
out.
But
their
that
NEW
YORK
they
wisdom
own
that
so
the
depends
what
and
Congress
shall
give
not what they
because I think
conjecture;
the
on
done,
can
of what
resume
to
propose
that I
order
brief
a
I
work
might
say
quickly and to the point and with
cooperation, give to
of the RFC—you
your
stockholders
it
as
two
am
it
as
is
performed
are
set
up
and
dictated
I
—
three pages,
or
give
I
has
the
all
you
record
and this will
think, the facts that
you will be interested
I
you,
sure
in.
The Improved RFC
I
that if a reaction
given to the average
American, the very mention of
test
suppose
were
,
would
"RFC"
diate
of
response
"luxury
the
imme¬
"mink
coat,"
envoke
or "sinister
shall not attempt
in¬
hotel,"
fluence."
I
to
minimize the facts which prompt
these responses
nor
the urgent
need
eliminate
to
conditions
the
which brought them about.
ever,
I
happy
am
conditions
have
to
been
How¬
say,
these
eliminated.
The organization of the
has
been
with sound
tion
now
framework
operates
of
a
on
Exchange
CHICAGO
in
Corpora¬
within
policy
Continued
-
principles
of management and the
some
feel
Corpora¬
strengthened
Chicago
San Francisco
without
castigating
of
CORPORATION
New York.
the
our
I have seen the reports
Members New York Stock
-
to
upon
and
—
is
resting
extent
of
success
man
but
ways,
the
that
de¬
that.I
or
of
both
not
am
American - economy
our
large
a
side
either
of
I
on.
the merits
argue
convictions
do
I
struggles
to
Bear, Stearns & Co
The
done
Big business gets bigger; small
business
accordance
of
has
it.
j
Congress,
business, the preser¬
safe-guarding of
business, but nothing
the
and
tion
members
and then,
asked about them,
and may I say that
are
its
expanded or contracted,
think that the RFC, in an up-
the
wouldn't dream
somebody
unless
about them,
you
after you
should be
very
taxpayers'
—
am
there
were
asked
if
back and
which I did.
tomorrow,
was
as
me
j told him 1 thought
potato and I wanted
over.
He said, well
see
me
but
time,
White House
no
over
three
a
ago
in pri-
asked
job
think it
j
you
year
again
the
make
you
was
to
A
this
by
to
take
RFC.
tellin
be
President
would
the
jt
would
I
business
vate
tell
to
RFC.
about
talked to you I was con-
vinced
j
supposed
am
uttle
when
the feeling on the
who have loaned
folio things that I
his
nipping
kept
The
the
of
the
not quite
are
Securities
Dealer
is
coffee.
you
set
•
that the innot mindful,
yet
boat
you
you
Distributor
it
thoroughly
am
the
and
you
ington today.
The
Commission and I
of
Bourbon
of
bottle
a
jlot> suitry and he crawled for a
coupie 0f days with the arrow
so
fellow
The
today
Government
to
mindful of all that.
I
must confess to you that
the
thing is so big that a person can't
get it all in a minute. We carry
a
portfolio of some $800,000,000
with
about
$300,000,000 undispersed.
We have in that port¬
a
ought
ought
•
me,
action
to reappraisal of certain situations and I can't over-emphasize
a
Underwriter
in
IBA
and
Exchange
Commission.
A*.
observed the work they do;
u^ *ie c°uIdn't do himself any morning
g00cJ
Hollywood,
1952.
have
I
will agree. with
you
course,
horses and left have observed some of the things in his left pocket.
sticking in his back. He lay there
Investment Bank¬
America,
with
u-
stole his pro-
wagon,
die
to
w
child,
his
A,
„tr%rtn„
his
vlslcms> sto]e his
him
nun
I
♦Stenographic report of
,.
.
burned
wife,
his
killed
and
a
out
and
purpose,
those
money.
small business and free enterprise.
preserve
anc* ^le *ong: *rek and a ^and °f from
Indians swooped down on them as a
-
the frontiersand
Everything was going nicely until
they hit the edge of the prairie
for
Washington
about
in
was
As
were
t
in
one
up
i!h
that
story
teller
exp
set
is
today,
the
man
the
and
nvnrpccoc
laugn,
as
hmi'
little
story
It
stubbed
4.
ia,i«n
t*
mm
fh
the
hnv
toe
^
.
0
n?™
lor
it
th
hi
h O
reflection he figured he
unon
useful and beneficial
a
and
of
citizens
on
and
radio
the
McDonald
McUonald
having served
having helped to
can¬
didate told
a
A.
agency as
Says "sinister in-
agency.
that the
story
defeated
Harrv
Harry
defends this
the
think
lending
on
Corporation have been eliminated, and
do.
I
Corporation lays blame for this
part
what
just
impressive.
President
your
reference
make
haven't
them
heard
I
public feeling caused by maladmin-
on
rather
is
It
states.
campaign
a
their respective
in
RFC has done
bit
a
out in
Congressmen and Sena¬
want to know what the
to
year
Administrator, Reconstruction Finance Corporation
of
Some
them feel
that have gone
By HARRY A. McDONALD*
more
today
than
usual:
planned exodus. Every¬
that
page
the
re-
68
Volume 176
Number 5178
Nearly 200
f
,
,
.
..The Commercial and Financial Chronicle
.
(2347)
years
i
ago
contro-
a
going
.
By HON. H. HUME WRONG*
the
Canadian Ambassador to the United States
*
f
'
t
'
t„
'♦
After reviewing slow economic
It
*
-
c
-
r
project
in Canada covering
period of two
a
by
victorious
Britain to end
rador iron
.
terms of peace
to
be'de¬
.
manded
the
primary
France,'
then
to
its close.
at
which
which
had
the
retain
West
i
this
controversy,
economic
value
Guadeloupe
For
example,
argued
of
that
Canada
more
Canada
which
seemed
but
justified
deep
of
were
An
pes-
last for
I
Great
It
rapid
growth
in
the
end,
apart, that there
were
overriding
political
of
reasons
returning
in
the
begun
look
to
though
as
this
cause
Guadeloupe
would
the
remove
danger of French attacks against
the
American
colonies,
already
stirring with the breath of the
discontents
which
later
brought
Independence.
That
do
was
not
the
of
These
two
a
hear
great
few
a
the
on
on
look
was
much
value
of
ago.
today
the
only
in
recent
in
confidence in
country.
It
great extent
Canadian
of
not
to
in
yield
figure
her
about
impor¬
very
I
economy.
the
to
shall
temptation
there
the
future
and
of
speculating on what might have
happened if Canada had remained
do in their own
can
Certainly
the
dffficult nof to'be Tmpressed
the
exciting
discoveries
developments
have
which
place in Canada in
eco¬
nomic development, held not only
in London but also in France and
indeed.
British
as
to,
"a
A
from
report
to
Canada
conquerors
by
the
described
it
place fit only to send exi'es
as
a
punishment
for
of
a
scale
Reserves of western
are
now
conservatively
petus
the
expansion
their
re-
mining history.
$200
million
An
will
the
.
10
million
year
by 1956.
of
a
building
through
terminal
es-
be '
tions
This involves
facilities
now
total
and
open-pit ore
higher in grade
standard
ores
haps the most important transPortation development faciirg-
bring
production
in the Lake
Ontario,
notably
at
the
into
the
industry. £
Enlargement of Manufacturing
,T
.
another
important area oi.
^onomi? activity sinco the war,
course,
1 e
modernization
of
^
*?ave
Superior
Steep
-
hope that, at long last, its consanction will, tpegm in 1953.
now
rador development is, of
shipping
ocean
Power+v> ?r P^tari°
re-
averaging
than
re-
beart of the continent and provide
badly needed additional electric
400 million
of
in
Canadian Pacific Railway is the
PrhP°sed St. Lawrence seaway
:and Power project, which . wil)
ore-
Proven
over
Output
£anada since }j}e building of the-
installa-
power
townsites.
and
iron
of
of a 360-mile railvirgin wilderness,
loading docks, of
serves
tons
and
and
enlarge-
manufacturing plants
pa^e
1, 1~le. r<
^ P}9^efPAaD.®
* V^
Rock
Lake.
in
few
taking
problems.
Already
one-half
with
less
of smaller needs
past two
periods
Canadian
insoluble
pr0(juction is nearly
■
-
than
comone-tenth
few years ago.
' '' /'
a
greaJ incr€fes
cobalt,
tungsten
'®t°el
,
jects
:
are
Some- of
energy
these
pro-
iq4,
■
„
■
".
Canadian
over
DODulation
ha<? riqpn
population nas risen
and nab°naf product by
11
united
of the first magnitude:
-
in
nrosress
production has doubled
g.
-
and
research'
past decade-
and
titanium, to name only the mosV
important.
industry
atomic
in'pro;the
ductive capacity are being carried
out
in
aluminum, nickel, zinc,
uranium,
steel
^tTeT^s'^T^lr
states is iz /0 ior
Continued
on page
38
■:
.
-
nar¬
im¬
development in rela¬
from
tively
is
primary
of
corresponding growth and modConization °f ^he basic utilities
^nd transportation facilities. Per-
unique in
petro-chemi- .region and elsewhere in northern
a
which
pared
taken
specialized
lines
or
were
sent
and
o£ Canadian requirements,
by
Previous
years.
0jj
and
of the
London
oil
^whi^VS^dlSicuu but1
piesents diiiicult but
not
rapid
poor
crude oil
in-
most
of
colonies,
the
cal industry.
Developments
even
history have been rather
rowly-based, drawing their
French
colony in 1763.
Cer¬
tainly the contemporary estimates
American
;
the
vast country
a
the
on
being shipped
explora--from the Mesabi range. The Labrange
capacity
from
Recent
three
in
whole
a
natural gas, the growth of refinery
war
or
prospects of Canadian
in
the
of
success
activity
the
of
out
fields, the construction of storage /additional to other new iron ore
facilities and pipelines for oil and ventures already in large-scale
has
think,
I
was,
greatest
and the other of vast
of high grade iron ore
of projects — systematic
tj°n and expansion of
mature
a
the
Development
sources
and
ume
products
Although Canada
produces plenty of "furs and
skins," these commodities cannot
said
tense
Skepticism
at last,
and
years,
put
ore
in Labrador and Quebec. The oil tons
discoveries have stimulated in- < 10%
economic
Canada
of
In
war
of
deposits
effort, both in the
raising of forces and in the vol-
Guadeloupe.
tantly
farming, and have just reaped by
their largest crop, a crop of
very high grade.
spent to bring into production and
to transport to the coast an out-
way
Canada,
made
with
but
discoveries
the
made
wheat
of population
timated
resources,
since
the
one
of
what
likely to be one of the
world's major oil fields in western
at hand.
caution;
primary
of
cent years has made necessary a
seems
colored
and
Canada's
of
promise
bred
outlook
under way.
now
been
have
The development of the Labra^or iron
ore
deposits is being
very
natural
of
carried
only for the most
outline of the main
of
have
farmers
mechanization
the
"far
esttjpated.; at
one-and-one-half
In addition to oil and iron, exvariety of war produc- billion barrels, not counting much pansion is under way in nearly
ition, that established the present
arger reserves contained in bi- .aU 0f
Canada's
other
primary
In
base
We buoyant faith in what Canadians -luminous tar sands at Fort Me- resources.
metals, for
years
War
long time
in
proven.
serves
been.
resources
Prairie
rapid progress during recent years
is only one aspect of thfo
economic dynamism. The growth
importance,
steady
skeptical
suggestions that the ful-
fillment
still
be
disappointment?
Canadian
field
there
a
keeping Canada, mainly be¬ .developed
and
never
time
developments
would
while, and then end in
disappointments just when it had
eyes
decided
economics
favor
money
Britain."
was
:
,
addition,
Canadian
have
rudimentary
moment
falsified by events,
soon
of
era
the
at
Canadians
to
-in the output and export of lum"ber.
substantial regas have been
In
.
time.
periods
would
clear
and
so
enlarged by so many major new
discoveries in so short a space of
been
the
much
extensive,
the
rapid
before
* of
been
have the known
progress had set in.
"so
development
resources
have
whereas the sugar of
Guadeloupe
:
and
that, since then, there
"produces no commodity
except furs and skins" for export,
be
the
known
have been many disappointments
in Canadian development.
There
and
Guadeloupe would
valuable, since
be much the
judgment
a
simism, and also, in times of
prosperity, rosy prophecies which
debated.
contemporary
one
has
we
the side of harshness.
on
It is true
into
relative
hotly
was
Canada
erred
factors
entered
the
In
that
con-
keep
Although
economic
lives."
consider
should be
to
or
a steady modernization
expansion of pulp and paper
plants and a very large increase-
approval of
expresses
cobalt
In forest products, there
and
f
ill-spent
pos¬
the
Guadeloupe in the
Indies.
other than
and
and
have been
the
of
been
war
Canada
sugar island of
resources,
numerous
by Britain, and in par¬
ticular whether it would be wiser
to
own
of major
up
nickel
of
"
objectives of both U. S. and Canadian Trade Policies.
retained
'
financing is largely from her
was
French
quered during
ada's
A
sources
"and zinc.
Can¬
out
a
chewan; the opening
v
point
issue
Points
Columbia; uranium min¬
large scale in the BeaLake area of Saskat¬
on
"new
Adds to these, enlargement of Canada's manufacturing,
resources.
particularly in aircraft, electronic and chemical industries.
drawing
major
wrong
ing
the
verlodge
deposits and substantial expansion in nearly all of Canada's other
Seven
YearsWar
with
half - billion - d©llar
wilds of northern
a
in
British
progress
centuries, Mr. Wrong recites the impressive and exciting developments and
discoveries that have taken place in last three years. These developments com¬
prise opening up of major oil fields in Western Canada, exploitation of Lab¬
about the
was
sessions
at
aluminum
great
Kitimat,
,
>
in
on
,
England.
rtuine
plant
Canada's Development and Its
Prospects
versy deeply affecting the future
of
Canada, and, indeed, the future
of the United States as well, was
H.
23
place
practically
over
UNDERWRITERS-DISTRIBUTORS
the whole range of the economy—
in
primary
utilities and
in
resources,
basic
in
jT\I7 A I f O Q
communications, and
manufacturing.
before
Never
PUBLIC UTILITY, RAILROAD
UNDERWRITERS
DEALERS
SROKERS
INDUSTRIAL and MUNICIPAL
State
and
Municipal Bonds
SECURITIES
Indust^nal Bonds
<m, Railroad
Bank and Insurance
Stock
Stocks
Preferred and Common
Foreign
IDDER,
JU
Dollar Securities
PEABODY e? CO.
1*5
FOUNDED
^
W. C.
Z
yr
York.
K
P°ST0N
..
Altoona
Chicago
Philadelphia
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Bedford
Newport
115
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Exchange
^ilkes-Barre
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Members New York Stock
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Tel.
New York 6, N. Y.
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''SERVICES TO
DEAtERS"!
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f
New State
The
report of the IBA State
Legislation Committee was pre¬
sented to the 41st Annual Conven¬
tion at
The re¬
port, as in pre-
"identifying statements," because of State Blue Sky laws, and reviews
tion
the
1
e
g
i
1 ative
s
that
rectly
or
di¬
indi¬
investments in
securities
Securities Commissioner that such
of Identifying
Statements Under SEC Rule 132
Oct.
On
current
year
Vrties
Distribution
legisla¬
rectly affected
S.
conditions;
of
during
the
the
1
SEC
of
Rule
adoption
announced
which
132
permits the distribution of "ident i f y
i n g statements," containing
specified information regarding
securities for which
registration
a
statement has been filed under the
for
identifying state¬ isting statutes, and (b) need for
of
all
unnecessary
ments
is
permissible under the elimination
law of his state does not eliminate costs and delays incident to the
distribution
of
certain
was
if
states
conclude
wrong
a
the
that
his
in
of the law.
session
this
year
in
10
states, in budget session in three
states and
in special session in
three states.
certain
or
define
"sell"
tempt
•
there have been no
important amendments to State
Blue Sky laws
this year, there
have been important amendments
to
legal
investment
laws,
tax
laws and abandoned property
laws, and much work has been
done in preparing amendments to
Although
filing requirements
have been complied with and also
offerings to exist¬
stockholders;
(e) Simplify and make more
uniform
the
registration
an
to
sell"
offer to
lem
to
as
or
whether
an
the
to
registration
scribed
include
"at¬
"solicitation of
of
or
the
therein
such
an
Securities
de¬
state
"attempt
an
unlaw¬
ful "sale."
Legislatures
prob¬
securities
under
and, therefore,
or'complete revisions of Blue Sky
laws for submission to legislatures
next year when most of the State
a
not the dis¬
"identifying state¬
public
prior
to
laws would constitute
to sell"
any
buy," there is
tribution of
ment"
to
will
be
in
regular
session.
The Committee wishes particu¬
larly to commend work which has
been
done by
group legislation
(Committees of the Association and
by special committees in
prepar¬
ing amendments for submission to
State
in
Legislatures next
year
and
The IBA has made
obtain
the
opinion
a
of
survey
the
to
State
procedure for issues regis¬
with the SEC by use
interpretation equalities that tend to favor pri¬
vate placements.
tered
"Blue Sky Law Problems." The
industry representatives on the
panel were Charles S. Vrtis (Glore,
as
to
both
at
Federal
indicates
that
and
many
Blue Sky
laws, and the results of
survey
were
published
in
state
levels
State
are
placed
ers
who do the great bulk
on
"IBA
Since this survey was based
discussed
upon
the opinions of State Secu¬
new
rities
Commissioners, it should be
be found
of the
Washington Bulletin No. 3," country's business.
1952.
in
all
more
of which
detail in
are
subsequent
tions of this report.
sec¬
noted
do
not.
laws
states.
some
new
(2) The IBA has prepared two
Sky laws, one of the
qualification type and the other
of the notification type, for use in
states where a complete new law
model Blue
is needed.
commit frauds; securities
People commit errors of
commission
and
s
tion
that
an
opinion by
a
State
(3)
•
Additional
securities dealers
provides that
amount of risk capital to invest.
non-exempt securities may be sold
(3) Possible solutions to prob¬ by registered dealers as soon as a
securities,
new
small
investor
excluding
who
has
the
small
a
for
a
may
(a) tendency toward
lems
(a)
of
salesmen
" and
simplicity
Sky legislation
be most easily
accomplished by the dealernotification type statute;
Blue
which
assumption of arbitrary adminis¬
rities and
Uniformity
of
'
(c)
may
Uniformity
of
administra¬
interpretation;
Cooperation of other agen¬
cies
in
ments
the
in
state
govern¬
giving considera¬
tion to and rulings on ques¬
tions
within
their
special
competencies.
Mr.
Calvert:
der
State
the
&
and
and
notice of intent to sell such
are:
tive
qAllen
supervision
.
reasons
type law in many states
in
of
(b)
complete
in
Blue
the reputable deal¬
this
year,
(f) Adopt
'*
pretation
Sky laws
People
application
form;
(3) The notification type law is
omission; securi¬ preferred over the qualification
type law because it permits reput¬
Forgan & Co., Chicago), Chairman ties do not. A law of the notifica¬
able dealers to conduct legitimate
of the IBA State Legislation Com¬ tion type, emphasizing the regis¬
business without unnecessary re¬
mittee; Roger L. Severns (a part¬ tration of dealers and the preven¬
but
enables
adminis¬
tion of fraud, properly recognizes strictions
ner
in
the
law firm
of
Isham,
trator
(i) to deny right to en¬
Lincoln & Beale,
Chicago), and the principle that there is no sub¬
gage in business to persons who
Gordon L.
Calvert (Assistant to stitute for integrity.
in
fraudulent activities
General Counsel of the IBA). The
Mr. Severns: (1) Difficulties are engage
and (ii) to forbid sale of securities
statements of the three industry involved in
qualification of new
which
would
work
or
tend to
representatives are summarized as offerings under Blue Sky laws be¬
work
a
fraud
on
purchasers
follows:
cause of (a)
cost, (b) the general
thereof.
■:
Mr.
Vrtis:
(1) Experience of lack of uniformity in the theory
A limited number of copies of
nearly 20 years under regulation and pattern of Blue Sky legisla¬
trative problems regarding inter¬
Blue
uniform
of
and in administrative inter¬ the complete l statements by the
pretations of such legislation, (c) three industry representatives on
•,
t
in qualification, and the panel are available.
Sky laws today are seriously out¬ the delay
distribute "identifying statements" moded and in need of revision.
(d) obsolete and ambiguous pro¬
In general, the three industry
visions in state statutes.
meeting the requirements of SEC
representatives on the panel all
(2) Most Blue Sky laws today
Rule 132 to the public in the re¬
(2) Obstacles are placed in the concluded that a desirable objec¬
are
designed to reach the fringe
spective states prior to registra¬
way of speculative securities un¬ tive is the enactment of a notifi¬
tion
of
the securities described operator but in the process unwar¬ der
many securities laws and the cation type Blue Sky law which
therein under the respective State ranted
shackles and
restrictions consequence is private placement emphasizes
the -registration and
Commissioners
whether it is permissible for reg¬
istered dealers and salesmen to
satisfactorily settling adminis¬ this
of
Exempt
ing
in
on
bases
registration of
denying
securities;
(d)
public distribution of securities in
to
court should order
provide protection to
Commissioner dealers and to remove present in¬
the possibility of civil liability
arbitrary
(c) Eliminate
trative discretion under many ex¬
(4) A notification type of law,
such
as
Blue Federal Securities Act of 1933, to Forum on Blue Sky Law Problems
such as the Pennsylvania Securi¬
Sky laws, and laws relating to the public prior to the effective
At the 35th Annual Convention
legal investments, taxation and date of registration of those secu¬ of the National Association of Se¬ ties Act or the notification type
model act prepared by the IBA, is
rities.
abandoned property.
curities Administrators
(whose
considered to embody sound prin¬
Since many State Blue Sky laws members are the State Securities
The
text
of the Committee's make it unlawful to "sell"
ciples and to represent modern
any Commissioners), in September, the
state securities regulation.
report, minus the appendices, fol¬ securities
(with certain specified IBA arranged for three represen¬
lows:
(5) The soft spot in state regu¬
exceptions) until such securities tatives of the investment banking
The legislatures have been in have been registered in the state
lation
is the human
element.
industry to participate in a forum
regular
therein;
scribed
with
matters
the
proposed
(b) Exempt sales by registered
dealers
in
the
secondary
market
under
specified
legal
arising out of such legislation.
cases
years,
state
requirements
SEC Rule 132
to the public prior to state
registration of securities de¬
handicap of implementing SEC's rule 132 on distribution of
Reveals
Permit distribution of an
"identifying statement"
of
laws, tax laws and abandoned property laws which affect securi¬
investment
cago.
Thursday, December 18,1952
meeting
Legislation Committee, presents report listing important amendments to legal
ties.
vious
(a)
& Co., Chicago, Chairman of IBA State
Glore, Forgan
& Co., Ch i -
dealt
...
Legislation Affecting Securities
Charles S. Vrtis, of Glore, Forgan
Hollywood, Fla., by Charles
S. Vrtis, of
Charles
Chronicle
The Commercial and Financial
(2348)
ZM
need
Blue
(1)
a
regarding such securities are filed
with the state commission (rather
than requiring the registration of
securities by qualification).
Em¬
phasis was placed upon the fact
that the notification type of Blue
Sky law protects investors against
the perpetration of fraud in the
purchase and sale of securities
with
a
un¬
Sky laws include
of
minimum
restraint
on
the
legitimate conduct of the se¬
curities
business
by
reputable
dealers.
Since the
Problems
secu¬
of the prospectus
copy
present Pennsylvania
Securities Act is
a
of the notification
Blue
Continued
to:
Sky law
type, it is paron
page
69
Company
Established 1922
NEW YORK 4, N. Y.
UNDERWRITERS
DISTRIBUTORS
DEALERS
STATE AND MUNICIPAL BONDS
RAILROAD, PUBLIC UTILITY; INDUSTRIAL
NATURAL GAS ISSUES
-
:
,
■'
■
•
.
GORDON GRAVES
30 Broad
CO.
Street, New York 4, N. Y.
Telephone WHitehall 3-2840
Teletype NY 1-8909
M
•'
V-
Volume 176
Number 5173
.
.
The Commercial and Financial Chronicle
.
(2349) : 25
High Taxes Depleting Corporate Working Capital
In
commenting
situation
dustrial
and
the
the current
on
outlook
for
book
Eaton Taylor of Dean Witter & Co., Chairman of IBA Industrial Securities
in¬
Eaton Taylor
of Dean Witter & Co., Chairmanj f"
of the IB A
Industrial
curities
Committee, points out high taxes
sion and in
Se¬
Com¬
vealed
in
Calls attention
report
of
which
the
to
^on-
of
at
Conven-
tion
Ho 1
indus-
compan-
ies
today as
compared
Taylor
with 1939, and
stressed
of
effects
adverse
the
high taxation on the cash and
working capital condition of business
resources
now
running the last year that
Committee's
the
of
I believe it is customary on oc¬
as
the outlook
on
these to comment
and to
unusually important role.
slow
war,
first
half
make pre¬
a
given
year,
to pay the preceding good year's
large tax bills by June 15.
Incidentally,
and
1951 tax accruals
1857% ahead of those of 1939
the amount of these tax
cruals
equal to 2i%
was
ac-
0f pre-
ferred and
mg.
common stockholders'
equity, compared with less than
2% in 1939.
In gharp contrast to the 1857%
has brought !" w f®
accruals net plant
"Ah, what avails the best
about a greater change in the fiL",c.re™'?
yK
sl"ce
intent
nancial
picture of corporations
82% "se in book value
And what the cultured
thon thn rico
A>-n-i
than the rise in taxes. And, even of Plant seems modest and con¬
servative compared with the 350%
word
though we may have reached the
increase in dollar sales during the
Against the undoctored
peak in tax rates, we have not yet
same
period.
To put it another
incident V
reached the point of their maxi¬
way, net plant value is now turned
That actually occurred:
mum
impact on cash requireover
once
every 100 days while
I *believe
you'will appreciate n?en^/|-.1?r^0^
in 1939 it was turned over
^be ena9^men^
only
my disinclination to venture very
w
a
the nw onee every 260 daysPart of this
far into the field of pat predictions
for
use reiatively high rate of sales and
and the forecasting of figures.
°r,
nni
fl
♦
the increase over 1939 is, of
I would rather remain on the
course, due to the facts that in
firmer ground of known facts—
1939 industry in general was
opmore particularly the facts and
paid erating below capacity levels and
figures with which we deal every lrlA"e.first bait of each year. By that rnunv* of n,rmrQconf plant in¬
much
our present niont
1955 all taxes for one year must
day, and, after presenting some
vestment represents dollars which
be paid in the first half of the
rather significant comparisons,
had a much greater
purchasing
leave it to you to make your own next yfa1r; Af.
Mills Bill be- power than the dollars with
comes fully effective, corporations
projections,
which we are currently measur¬
must
provide
that
much
more
cash. This will be a perennial and ing the sales volume. Yet, even at
Data on Industrial Company
indicate
not a temporary problem as long that, it would seem to
Earnings
course,
by
fc
•
dictions
the
projections
or
future
on
in
have
may
what
store
for us.
Recently I came across a numof such forecasts, made and
published by eminent economists
in 1947 and 1948.- They reflected
the thinking of industry at that
time and were based on the plans
oh
of the bulk of American industry,
ber
It
probably was as competent a
of the business outlook as
could be made in the light of circumstances then existing.
The
survey
projections dealt, among others,
with the expenditures which inexpected to make for
new facilities and for which capital would have to be found during
dUstry
was
the period from 1948 to
These
inese
in
a
nroiections
projections
rather
1952.
were
were
optimistic
written
written
and
vein
nrtninprA,
.
The data on which I want to
comment are a few figures and
ratios taken from what is, in ef,
a
sample of the comparative
sheet
and
nrofit
and
loss
Daiance sneei ana pi out ana loss
as
the
Mills
Bill
remains
statute books. It is rather
to
see
that
our
the
on
startling
sample
was
equal to 81% of all cash
veer-
amount
of
the balance sheet
on
governments held at the
the
dollars
tively,
as
top-heavy
times believed.
consideration
It
is
that
is
as
not, rela¬
is some¬
reassuring
a
plants
and
statement of American industry ana governments neia at tne year- facilities
currently account for
A.
showing what chancres have come end> compared with a corresppndeven
though industrial expansion
tnougn industrial exnansion showing what changes have come ena comparea witn a correspondJ fh-, f f , ,
recent vears and where mg figure of only 20% in 1939. In not much over one-third, ot total
was at a high plateau at that time.
a_oa;_"
fuL
rJJul
? other words, the acceleration of assets compared with almost oneIt is snherfm? to'comnare the fore- we stand at this time.
The data I otner woros, tne acceleration of
with
a
deal
good
of
confidence
i.u
It is
:
sobering to compare the tore
sneaking of
forecasters
expected
that
all
in-
taken from the
are
combined balance sheet and profit
d^try,
tax Payments will have
mciuamg utilities, mining and loss statement of the compaincluding uuimes, mining
the Dow-Tones Tha problem will be
transportation, but excluding ?^s _maKmg up tne^Jjw Jones for
companies which?
commercial and miscellaneous, Industrials, but excluding Amenwould spend close to $10 billion on can Telephone & Telegraph. They
ausxry,
and
new
1951
facilities in each of the years
and 1952.
The latest report
by the SEC shows that the indusin this forecast
and miscellaneous facilities.
in
1947
gross
l^J^ATqAq0
balf in 1939.
aggravated
in5aspoor
or
helped
to
^factory
". keep
within
rather
proportions the net
,,
Also
,
are a
and
presumably
will, be retired and charged in
full to depreciation reserves, thus
causing
value
change in the net book
plant.
However, it is
no
of
+„
nppp(;<!flrv
deoredaUon
hpnr
in
+w
?n
orOTision
that term and they stack
level of less than $200 bil-
year 1951 against
up
of years ago—is now wholly in¬
adequate to take care of the phys¬
ical replacement of a retired fa¬
cility. If and when it becomes
necessary to replace, in kind, a
rated physical capacity,
increased
amount
-
in plant investment will
-fhis
lead
to
of
on
a
capital.
:
A
Two-Edged
There
plant
M
.
/
,
are
manager
.
Proposition
many
...
cases
or
..
an
„
Y.
25
BKOAD
FIFTH AVE., N. Y.
cost several times its book value.
is a two-edged proposition:
He might also "view with alarm"
This
the fact that for purposes of phys¬
ical replacement, he may in due
time be up against a dilution and
financing problem.
So
itself
excellent
in
this
far,
made
CHICAGO
DETROIT
•
PITTSBURGH
.
GENEVA
•
Underwriters
.
;1T
and
r
of Corporate
.
MIAMI BEACH
results
'
v
"
-
Distributors
*
*'
Securities
Exchange
ALBANY
BOSTON
NASHVILLE
CHICAGO
well
of
illustrated
1939
latter
and
year
by
1951:
depreciation
approximated 5%
value
a
comparison
While in the
compared
of
plant
only
3.6%
with
in 1939' yet> the cost of dePreciaContinued
on
1868
GLENS FALLS
MANCHESTER*N*K,
WORCESTER
'{
Private
wire to Crowell,
charges
gross
New York Curb Exchange
SCHENECTADY
obtained
investing in
the most modern,
efficient and
labor-saving manufacturing facil¬
ities, regardless of higher costs, is
HOLLYWOOD, FLA.
.
not
The
by
years
Members
New York,Stock
has
much.
very
overall
recent
;
problem
felt
STREET, NEW YORK 4, N. Y.
(Sherry-Netherland Hotel)
PLaza 1-2220
.
,P°!n^ wlth P«de to the iact
tha* hls pl?n+^ has a replacement
BOwting Green 9-8420
781
a
investor
,
Spencer Trask & Co
leading stock and commodity exchanges
60 BEAVER STREET, New York 4, N.
4
where
.
1856
Mtmbtrs Ntw York Stock Exchange and other
?t.
decline.
measure
may
H.HENTZ & CO.
w
is
dilution of capital or of return
BROKERS
Established
Established
cash
that purpose, and the
ratio of tons of capacity to dollars
the
•
a greatly
of
needed for
1939, that being
DEALERS
doMare
aePreciatl0n itProvision in dollars
based, as
is, on original cost
UNDERWRITERS
sample of manufacturing innarrower sense of
.
ese older> obsolescent
_
can,
dustries in the
national product in
of
decline
a
c?°se y *be corresponding
2U1
to
backlog
the event of
ac-
the early 1950's was forecast on an
average
material
active
order
are fair*y representative of industry. as a whole as they parallel
but much more comprehensive figtually spent close to $19 billion on P.res
in^nufacturin g corporanew facilities in 1951 and are well
n°ns published by the Federal
on the way toward spending over
Trade Commission and the SEC.
$20
billion
in
1952,
excluding All these comparisons exclude
about $7 billion for commercial Public utilities and railroads. They
tries included
a
and Possibly permanent bearing
Accelerated and otherwise inon corporate cash requirements, creased depreciation rates have
the
in
pressing
In
abnormal
an
on
,
rep-
rescnted by plants and facilities
corpo-
^10n s tax babihty at the end of
1951
that
ex¬
fully depreciated
still
the
facilities
S!?vmI-
Jhe ^s1
brick,
appears
facilities
operating-wise,
orders.
a^fuli_year-the
fect>
is
„
were
all
However,"
facilities
meet
of
y^e
I?3®", Tbls
report follows:
casions such
"ex" hot
was
in
up
machinery. It
bulk of
serves.
in
cold war, ex-inflation, ex- must squeeze out of their rerearmament and huge government sources,
with
little
delay,
the
orders and ex the present tax large amount of cash necessary
Nothing, of
text
an
stockholders'
1
isting prior to the war is now
fully offset by depreciation re¬
annual rate of 70% higher, "ex"
an
this:
concerns.
The
will play
can, perhaps, not be blamed for burden. In retrospect, it may well
being 100% to 70% wrong in their be regarded as the last so-called
projections. They left out of their "normal" year in so far as finanreckoning such unforeseen events cial ratios are concerned.
as the Korean War, rearmament
Some of the more striking feaand inflationary forces. At the tures of the trends that are highsame time, it brings back to mind l1l(§}lted ,by *bes?
comparisons of
a realistic observation by Rud- f?:39 and 1951 should be of pracyard Kipling which went, if I Jlcal yalue ln considering the outremember rightly, something like Jook for financing and underwrit-
ly wood,
of
trial
Actually, it is
The forecasters of 1947 and 1943
at
Fla., the position
rearmament program,
the
tied
amount of these
working capital and cash
ar°und $340 billion.
the01*
Association
that the
list,
An-
41st
nual
Eaton.
possible effects of transition from
his
the
expan¬
lowering working capital and cash position of industrial companies.
mittee,'re¬
of
now
mortar and
factor in slowing down plant
are a
value
dollars
securities,
Weedon & Co* Los Angeles, Cal.
page
74
.26
The Commercial and
"(2350)
Financial Chronicle
Thursday, December 18, 1952
....
Menace of Public Power to Private Investment
Charles
Private
First
of the
Glavin
C.
rendered
the
the
vin of the First Boston
report
of
Committee,
Com¬
mittee
tio
its
at
n
Fla.
The
port,
in
to
fur-
ent
advocates is the statement
private
that
largest corporate issue in U. S. history.
the
rfishing
vestment,
called
have
utility
ings
C. Glavin
Charles
earn-
•
in-
and
tion
attenthe
to
to
menace
private enterprise of the >rapid
expansion of the Federal Government
in the electric power inWastry.
*
-
,The
text
Committee's
the
of
report follows:
"
.Nationalization of
utility industry
been
direct interest in the
owned
companies as
stockholders. Undoubtedly many
very
by.i mixing
confused
kept
with proper governmental
power
iunctions.
in
But
recent; years
sufficient to
people think of public there have been proposals where
power as something, going on way the issue is clearly drawn between
out west—and most people don't private enterprise and government
-worry
much about a ghost in ownership.
..
talk
can
do
virtnp nf the
Rv
and
In
We
industry.
with
are
ow7uiility shared-
not dealing
made
serious
electric
business
and
the
into
inroads
today
sup¬
.«
,
as
about
...
...
the
waged
little
i
esult
of
,
the
.
.
battle
jg
j.
.
„v
a
and
But the danger
■
and
nnu/pr
pllbjic
power
Case
to our
Presented
the fact-that
v
would
proper
answer
-
.
,
We have already mentioned the
-
to the preference cus- ment of the very large Niagara
tomers. A number of these have Power project and the developsure °n
putting incieased pres-
fp generate power for the atomic
ener§y plant at Paducah. And re¬
cently it was announced that 15
^
—
,
,
River in Idaho. A
'serving
the
power
these to
11
New York 5,
Wall Street
<
Ohio
Electric Co. to provide
power
gaseous
pany
diffusion plant. This
will have
2,200,000
generating capacity. These
the back
H
.
swer
.
pities and intentions of the public power advo-
^®can
cates, and this fight is just
portant
as
the
a
seem t0
llc's attention.
door
big
name
that
to
for
projects
change
in
Washington
the
position
may
of
unci Q)eu/eM
to bp
the reclamation of arid lands. The
is
truth
is supposed
this
that
power
Bureau
admits
Here
of
SECURITIES
and MUNICIPAL
is
cost
INDUSTRIAL, PUBLIC UTILITY, RAILROAD
that
is
again, then,
outright
even
95% of
to
the
the
CORPORATE
AND MUNICIPAL
SECURITIES
power. ■'
clear case
a
between
decision
an
allocated
be
to
is
and
project,
private
en¬
terprise and Federal power devel¬
opment — an aggressive attempt i
ready,
private
willing and
power
issue
by government to do what
is
enterprise
UNLISTED
TRADING
DEPARTMENT
able to do.
UNLISTED
TRADING DEPARTMENT
The
public
is not 1
'
issues
confined to such glamorous
as
Little understood
is
the controversy
big projects.
or
realized
going
over
on
clause." In the Flood Control
Laurence M. Marks & Co.
Members
'
New
New York Curb
49 Wall
York Stock
Exchange (Associate)
.
.
1944
power
ment
Exchange
Street, New York 5, New York
Telephone HAnover 2-P5.QO
of
.
Teletype. NX 1-344
and
cities
-bodies and to
tribution
tomers.
policy
and
Boston
Stock
Exchanges
Act
that
possible, to agencies of
if
states
a
Midwest
generated at U. S. Govern¬
dams shall be sold, exclu¬
sively
lish
provided
Congress
Members:
"preference
the
and
other
or
public
cooperatives for dis¬
sale
to
their
and
absolutely
stipulated
necessary
marketing
that
Lee Higginson Corporation
cus¬
Congress sought to estab¬
workable power
only
transmission
NEW
well
public
most o£ the »ub" P0Wer'If S°ve™me"t will cease to
.
Continued on page 64
Reclamation
of
Bureau
whose function'
public
The recent change of Administration
a
the
of
of
exam-
power
im-
as
excuse
fylnclelwbilei^ Q)ulii6nlot±
approach to estab¬
Columbia Valley Au¬
thority. Hell's Canyon is a project
lishing
com¬
kw
an-
'
..
is to export the power to the
Pacific Northwest and use this as
:\
/:
to
can
pose
Teletype NY 1-1110 & NY 1-1111
Telephone HAnover 2-5000
have
Valley
the Atomic Energy Commission's
public funds. The real pur¬
ture of
N. Y.
The
pies of what private enterprise
the power is
as
companies
formed
a^d will do should be sufficient
cost of $360 million for just the dam and power
plant. Private development would
cost less and produce more power
and would not require expendi¬
single dam at
Exchange
Exchange
built
fought
utility
jointly
transmission
over
Gowrnment^wants^o bufld^a htige tl,at
Asiel & Co.
Members New York Curb
potential of the river
five low head dams,
be
...
private
compounds the injury. Here again
private company
the area wants to develop
by building
Members New York Stock
'Snake
the
on
.
continuosuly
and
the Hell's .controversy
is
example
,
<mentai to the industry, and the
widely
Project
Canyon
Inc. was formed and fi-
arrangements
such
encourage
.
Another
'
Snake Rive^: Ele^^!c
f^V^
Energy,
the governmental agencies nanced by five private companies
and avoid the expense and effects
to
advocates.
Since 1878
——
Power
^
ical influence of the public power
greatest
to
.
.
to us that the * of
duplication.
very fact that in two years the
The preference clause in itself
private
enterprise bill has not
been reported out of committee
fosters the growth of municipal
favorably is real cause for alarm; power business which is detrithis is proof enough of the politi-
Brokers and Dealers
its
lies
companies
damaging
do the job. It seems
Servicing
made
ln negotiating contracts to utilize willingness and ability of private
existing lines to transmit such enterprise to take on the develop-
ready, willing
stand,
.In this connection^ it is interest-
ing to note that the only power
shortage in the country is in the
Posal to build eight steam generatifig plants in the Northwest,
and to push us further and further
down the road of public power,
in
already
owned
The
.,
...
taxpayers—and there they
and able to
the
to
:/
mandate
controlled
a
resulting effect
from
range
ruinous.
lines
the
privately
on
the
construct
of
existence and
jointly to finance and
project at no cost
have agreed
inter-
billion. This record speaks for the
v^a^y of the industry and its
ability to do the job;
implementation of such a perhapsit was pknnecIthtawwin uneconomic to justify the governments pio-
duplication
companies hagnb™°*
nas been
private
State
-York
1946
years,
policy would result
opment itself, so it is simply a
case of who does it. Five New
Probably the biggest obstacle in
proponents of public power have
.
fnr
private enterprise. Under each of
the three proposals there is no
material difference in the devel-
Honestly
Not
static
TTnifpH
+h«
six
expenditures of another $8
and
to maiket ali power produced*'by power - has
by the United States for
power development. Bills are still
pending in Congress for development by the Federal Government,
by the State of New York, and by
economic
our
nowbTutil-
River ™«y
hv
ized
■.
.
a
re-
7ducat; N^gaTa
public power
js a nati0nal
local threat
public understanding The fight has-been
issues.
to
ntihiif
m
being
by
reaj
^ban
*
,
by the industry and
better
of the
of the
20%
.g
ratber
investments
nation's
power needs. There are some signs
that its giowth is being slowed
plies
thot
foot
^hem to the fact that
theory; public power has
a
the
and °P?r?ted. transmission system Pacific Northwest where public
asrassss, SMaaaa
all
revolves about
Department's
jnterjor thinks it has
tQ build a Federally
with
1950 trpatv
Interior
pretation of Congressional intent.
Seaway ami Power development.
thpsp rnstomers
w;th
out public invest-
pay
xhe controversy
the
somebody else s house. A large
One of these is the Niagara
segment of these three million Power development
not to be
e™0+v,fncf
neces¬
This is loose and misleading
the
facts
provide the
sary.
ment in power facilities.
these
of
electric
our
the cornerstone
is
While the majority of our citizens
have an indirect investment in the
a
construction
government
through 1951 the private electric
ment to carry out the purposes of industry has increased its generthe Act, and the preference treat- ating capacity from 40 million kw
ment of certain types of customers to 60 million, spending over $10
was clearly subject to the general billion on new construction. Presintent of the Act — namely, the ent plans for the years 1952
construction of
only necessary through 1954 call for another 21
lines and charges to customers million kw increase in capacity
electric industry through their
privately
gov¬
makes
lines should be built by govern-
their case honestly. Power projects have been disguised as flood
in- control,
irrigation,
navigation,
surance policies and savings ac- reclamation and even national decounts, some three million people icnse. • The electorate has thus
data
public
o n
do
projects
power
answer.
not, for the most part, presented
substantial,
and
can't
great size of these
re¬
acute
enterprise
of meeting our large pres¬
and future requirements and
ernment
Reveals heavy utility financing in 1952,
mains
Do
the job
earnings
power
which included A.T.&T. bond offering,
addi¬
tion
efficiency, and cites increase in electric
more
without substantial rise in service rates.
in
lly wood,
o
that
national defense." Holds private enterprise could do job with
even
lower cost and
Associa-
meeting
H
mation, and
flood control, irrigation, navigation, recla¬
as
Can
Job
Another approach of the public
govern¬
of
Convention
the
"disguised
electric power,
ment
Annual
41st
Corporation, cal's attention to rapid growth of
the
power
the
to
Enterprise
Committee, whose Cfcaiiman is Charles C. Gla¬
IBA Public Service Securities
Corporation, Chairman of
the IB A Public Service Securities
Boston
YORK
BOSTON
CHICAGO
Volume 176
Number 5178
.
.
The Commercial and Financial Chronicle
.
(2351)
Finds Little Grist in New Aviation
In
its report to the 41st
Convention
of
But there
IBA
Aviation
Securities
Bankers Association at Hollywood,
there has been
ittee,
o m m
headed
by
Knowl¬
Hugh
of
ton
dustry, and
Loeb
&
Co.,
dearth
ex¬
fi-
nancing
in
the
transpormanufacturing
branches of the industry.
The
text
the
of
the
Committee's
The
1952
year
harvest
banker
»
has
for
in-the
yielded
the
a
investment
field
aviation
of
financing.: In the airline end c f
the industry there have been six
stock
issues
600,000,
totalling
of which
one
underwriting, and
accounted
for
only
was
$33,-
without
of -which
one
two-thirds
of
the
total-dollar amount; and only two
issues
of
bonds
or
debentures
totalling
$10,250,000,
of \ which
$10,000,000 was placed privately.
In the manufacturing end of the
industry there were three issues
of
stock
common
$7,000,000, and
totalling
only
of
notes
one
issue
Amounting to $6,000,000 sold privately.
"contrast
In
this
to
dearth
tnrowing
on
a
steaauy
•
in-
to
;
r-
_
•
•
.
Let
gross revenues,
(2)
'//'
'■
remembered
crisis.
•'
-
a
i
Thereafter,
with the pick-up in business and
depreciation
charges.
more
Therefore
an industry which not only
is currently in a period of increasing Sross revenues, but is also in"
the midst of a period of vastly ex-*
Pending capital assets. An air-
the
and
depressing
degree,
increasing
been
of
airline
operations
have, with
exceptions,
such an important contribution one or two notable
to new capital needs as to make taken a turn for the worse. Net
it possible for the airlines to fi- earnings, in spite of the continunance these needs , either out of ing
increase in total revenues
internally generated funds or such noted above, have shown a marked
simplification of the picture and, costs have
increased
faster
than
modernizing
their
flight that the ability of the different revenues in spite of the moderni-.
equipment. This has taken vast; airlmes to finance without out-' zation of flight equipment which
amounts of money, as the modern, side aid other than bank borrow-, has been rapidly taking place
Plan? is many times more ex- ings vanes within the industry, throughout the industry. It is true
pensive than its predecessors. The , But it is believed that this is. the > that two unusual events took place
total figure represented by pur- basic explanation for the anomal- in 1952 which had an adverse efchases under this moderization ous situation which the investment l'ect on airline earnings:;
* '
and
will
when^completed: banking
about the middle of 1954, be well field;
about the m,Hdle nf 1954. he wen field!
Program
in
excess
of
$750,000,000.
fo«
fhe
^
Dc.g and
DC
7
th
From
(1) the closing of the Newark
■
~ ~
the
Airbort
A—
end
1949
of
to
the
lines',
stratocruiser,
•
resulting
------
from
-----
the
three
acc£ients in Elizabeth N J • and
<2> curtailed operations result-
enle cC' expar^ta' the Sfe &££*
constellation
d
The
fraternity faces in this
-
effect
Rates have declined in the face
mounting costs for materials
and labor and heavier tax burdens,
increasing
demand
for
dustry seems to be unique in its
habit of cheapening the price of
its product
when
the
demand
fallen
off.
The
toward lower
to
from
pressure
perhaps
present
is
rates
the
$134,000,000. So long
coach service with
It is
probably still
categorically
say
coach travel is
a
is
It
growth of
healthy thing for
true that
in
which
rpvpnnp?
In
higher
269
wprp
the
an
leading
the
increasing
ratP
thp
this
reason
it
for
in
It'oJ ^
from
219
averaging about
a\erag
g aoo i
ana
From
1950
of the
end
sales
companies
295^ Ind
295 /0
find
pvln ifpafpr
iQ^f
in
in
than
manufacturing
business^we
W
airline*!
thp
nf
lines', product,
The
next year
fact
or
remains
cline
in
but at what cost?
will be clearer in the
answer
two
Meanwhile the
that
unless
the
prof t 'margins
can
can
the
be
the capital
to
period
a
' '
is
It
of
*
profitless prosperity.
suggested
that
Continued
;
a
meager
assets of other busi-.-cannot
be
preciation than if this equipment-debt
that
grist
provided
out
Eastman, Dillon & Co.
Broad
15
Street, ISTew York 5,N.Y.
cash;
of
by the issuance of
stock or by short-term
Were
depreciated
over
a
period of time. To date such
obligations
;
maturing con-j
with the depreciation
of the financed equipment. There;
may. be special situations where
long
currently
an-
long-term debt
is
•
PHILADELPHIA
READING
t
'.V-\Y
•
•
HARTFORD
*
PATERSON
:
.
••' .;••/
•
Members New York Stock,
preferred stock
or
CHICAGO
4
EASTON
•
'
CARLISLE
•
•
.
Exchange
appropriate, but certainly such
securities
not
are
suitable
as
.
for
media
they
airline
'plants
-have
railroads,,
for
are
utilities
financing
Chicago
whose
capital
to
our
of/ices above and correspondents in
•
San Francisco
Dallas
•
Richmond
Los Angeles
•
•
St. Louis
Charlottesville
•
•
Milwaukee
New Haven
•
assets
longer
other
and
wires
as
public
industries
and
Private
useful
substantially
lives
the
will
Underwriters and Distributors
coinciding more nearly to
length of time such securities
remain outstanding.
Why
,
of
more
the
then
has
there
stock
common
been
in
not
financing
of airlines during the past
case
year?
Investment Securities
First
,
action
In
let
us
the
1951,
trial
stocks
increase
of
at
the
market
stocks.
Dow-Jones indus¬
increased
average
airline
look
airline
of
showed
19%.
and
14%
an
stocks
However,
of 20%
have shown
against
industrial
from
air¬
decline
a
increase in the
of 4% and a
an
averages
Reynolds & Co.
rise in rail averages
of 27%. This
public
hunger for airline stocks
Members Neiv York Stock
indicates that the investing
has
no
and
Carl M. Loeb, Rhoades & Co.
42
WALL
STREET
NEW YORK 5, N. Y.
that
net
favorable
the
industry's
by
means
Corporate
sitive
are
to
market
for
climate
financing
to
selling
their
What
com¬
*
are
the
reasons
for
the
disfavor with which airline stocks
are
Exchange
Leading Exchanges
is
panies' common stock at depressed
prices.
and other
the
capital
requirements
of new stock issues.
managements are sen¬
market conditions and
averse
i
average
the beginning of 1952 to date
line
•
•
currently regarded?
In 1947 and 1948 the airlines of
120
BROADWAY
•
useful
on page
nesses. Obviously this has resulted -earnings,^ is
in larger annual charges for de- common
85%
/c.
seen
of the air-it is prudent and possible for air-L
de-
^be
cime ln prom margins can oe
erased the airlines will be facing
nanced if not through investment airline industry are primarily for flight equipment and so long asi
iines have considered it prudent lines to depreciate this equipment,,
to dePreciate their flight equip- in a relatively short period due,
ment over Periods ranging from; to the inroads of obsolescence, the
lour to seven years' shorter by ^soundest way for airlines to meet;
far than the depreciable life of
capital requirements which -
it has
stimulated the demand for the air-
the
as
and
importantly to the
more
airlines
partly
CAB
whether the tremendous
the
tendency
due
How has this plant been fi" new capital requirements of the
^significant when ^'banking channels?
remembered that the ODeraSric
The managements
1951
is
npri'od
hVrnmDflrablP
nvpr
^4^
1952
is
great and attempting to increase
its price when the demand has
3 " of the domes- and in the two-engine class the airlines decreased from $148,000,operating revenues ofTeeSdomese
Convair and the 404
000 to
first™ ighfmonths o^
seats'
and other space. The airline in-
it is interesting to note that the in8 fi"om a Period o£ gasoline ralong-term debt of the domestic. tioning caused by the oil strike.'
>
on
revenues
line's Principal plant is its flight funds supplemented by bank bor-. decline, v This has been, due to development of
equipment. During the past few rowings. It is recognized that this various causes which can be sum-1
fares.
years all the airlines have, in statement Ts perhaps an over-, marized by the statement thatj too
early
to
varying
non-re¬
of
efficient equipment, the for-' the
large net earnings carrying
through 1951. This year the results
tion obtaining in the transporta-; the annual depreciation charges
tion end of the business. Here we of the airline industry have made
1>ave
these
more
the improvement in the economy: This is not the first time that the
of operations brought about by- industry has presented the anombetter cost controls and new and aly of lowering rates in\ spite oi
years to generate suffi- tunes of-the airlines took an upcash
funds
to meet
such ward
trend
with
increasingly
cient
situa-
far
brought about by
the decrease in the average rates
charged by the industry.
well--
! in recent
.1^
first consider the
us
■*.
•
the country passed through
the
for
reason
(1) By the gain in expenses, in¬
cluding taxes, in their race against
of Federal Reserve
gross
been
investment
a
earnings
than
curring events, viz., the narrowing
of
the
margin
of
net
profit
brought about:
to aviation.
has
Transportation
of
capital financing the industry has
neen
industry
into
the
_
the
report follows:
poor
developments relating
nualJ depreciation charges have
field, throwing
been allowed by the government
which
exists bankers' mill does not stem from
for> income tax purposes, thus,
despite
the any lack of growth in the industry'lessening the tax burden and insteadily
in - itself. Accordingly it is important creasing the amount of available
creasing busi- to analyze the factors bringing cash throw-off. The airline business
of
both about the
prevailing condition.
ness has been fortunate enough
Hugh Knowlton
and
use
was
in
fundamental
capital financing during 1952 in the aviation in¬
of this has been placed privately. Attributes situation
;;
.
which
this
tation
dearth of
nical and other;
the
of
decrease
"V" loans, secured by government contracts. Committee reviews recent tech¬
York
City,
plained
a
most
airplane manufacturing companies financing through
Kuhn,
New
Committee, whose Chairman is Hugh Knowlton of
Kuhn, Loeb & Co., reports, despite steadily increasing volume of business,
Fla., the Aviation Securities
C
Financing
Annual
Investment
the
,27
NEW YORK 5, N. Y.
65
28
The Commercial and
(2352)
Financial Chronicle
Market for Railroad Securities Much
L.
Charles
W.
Pressprich & Co., Chairman of the
Railroad
the
of
Committee
Securities
R. W.
Associa¬
Bankers
Investment
the
Dec.
presented
report of
his
committee
tion,
3,
on
27% in
the
accompanied by increase in rail carriers'
still inadequate,
are
end
since
ture
Associa¬
of
war.
Finds
t
rail
1953
outlook
of
in-
period. Likewise, an accept-
two
decades
excluding
the
war
but
warned
d
road
in railroad
spite
se-
e
-
larger
railroad
able
index
bond
prices shows
bonds
of
have
demand
creased
an
noted
for
this
in-
an
type of
the
revenues
security.
earning an adequate
improved market status of
property invest- railroad securities
may be attrib-
not
their
ment-
favorable
uted to two main factors:
substantial amounts of retroactive
mail
properly allocable to
earlier years. Dividend payments
pay
estimated at $350,000,000 will be
the highest payout since 1930.
(1) the
Earnings for the
1952
year
both
pend both
and
were
extent. To the contrary,
it has
ac-
securities
most
which
in
deal
we
actively,
year 1952 it is estiapproximately $269,-
During the
that
mated
000,000
long-term
of
will
bonds
have been issued by railroad bor-
of which all but $16,000,-
rowers,
000
for
was
refunding
un¬
will
1953
be
will
de¬
handled
and
of
cost
producing the trans¬
service. With so many
known
agreement
look
and
Obviously, the
the volume of busi¬
on
which
ness
tually been reducing the volume
of
favorable
aspects.
financial results for
well
same
curities,
on
both
has
favorable
portation
income years of 1942 and 1943. Although
increase of earnings as reported for 1950 were
nearly 8% in this period. Further, somewhat higher than estimated
dealers in investment quality rail- 1952 results, these figures included
revival
are
has
1953
for
Looking ahead, the outlook for
the
o
vestor interest
rails
Outlook
record
He called
attention
return
a
unfavorable aspects.
Hollywood,
Fla.
Charles L. Bergmann
to
revenue
of
and do not reflect $8 billion increase in capital expendi¬
meeting
at
average
1953
of
tion
year,
able.
Chairman, notes rise in Dow-Jones rail
as
quate user charges should make
highway competition more equit¬
headed by Charles L. Bergmann of
high. Points out, despite all this, rail earnings, in terms of property investment,
41st
the
to
Convention
Pressprich & Co.
irsday, December 18,1952
Improved
Bergmann, of R.
Railroad Securities Committee of IB A,
Th
...
for
economists
1953
it
in
dis¬
business
the
on
out¬
does
not
seem
appropriate for this committee to
voice an opinion on the prospec¬
tive railroad traffic volume. How¬
inasmuch
ever,
sent such
operating
as
wages
repre¬
large part of railroad
a
costs
comment
some
pertaining thereto is pertinent.
A
purposes.
large part of railroad labor is
equipment
will result in the issuance of about
working under agreements which
expire in October,
1953. These
sales
formula
The
financing of
new
favorable 1952 finan- benefited substantially by rate
cial results and (2) the improved increases which became effective $266,000,000 of Equipment Trust agreements provide for changes
in hourly wage rates upward or
During the year 1952 railroad outl°ok f°r essential and construe- in April of this year. These rate Certificates and the placement of
downward in accordance with a
bonds and stocks found increasing tive
revisions of our national increases amounting to approxi- about $316,000,000 of conditional
The
text
of
Committee's relatively
the
report folloius:
favor
with
Jones
rail
at
81.70
to
103.95
investors.
averages
the
at
increase.
on
end
The
stood
of
Nov. 20,
This
transportation policy.
Dow-
which
1951
1952,
contrasts
a
mately
......
„
Revenues
at
All-time
,w.
.
High
rose
Gross
27%
with
reach
revenues
an
an
in
1952
may
all-time high of $11,000,-
000,000. Estimated net income of
increase of only 4%
Jones
industrial
in the Dowin
averages
$750-760,000,000 would be greater
than that for any year of the last
the
15%
with
exceptions
su-
perseded two partial interim ingranted during 1951. It is
creases
relief
some
requested.
hand, there
part of the
On
was,
the
other
frequently
prolonged and
as so
has been the case, a
costly delay between the applica¬
Municipals
Public Utilities
tion
the
for
granting
increases
thereof
by
and
the
the
Com¬
mission.
Railroads
Industrials
Equipment Trusts
It
should
vorable
Preferred Stocks
be noted that the fa¬
1952
all
not
Canadians
financial
they
are
Appraised
on
ICC
under
railroad
flect
earnings
from
procedure
reported
re¬
savings derived
accelerated
-amortization
privileges but do not reflect the
Salomon Bros.
Hutzler
&
Members New York Stetk
Exchange
total
amortization
charges. How¬
ever, four to five years hence re¬
ported earnings will no longer
reflect
Sixty Wall
Street, New York 5, N. Y.
Pritsti wins
It
the
PHILADELPHIA
CLEVELAND
CHICAGO
HARTFORD
SAN
benefit
of
the
tax
savings, whereas the depreciation
charges for these facilities will
continue
BOSTON
expense
to
be
reporting
ings per share
were
stocks
noted
large earn¬
their common
very
on
further
and
we
companies
that these created
a
commented
false impres¬
sion of prosperity for the railroad
industry. We then stated, "In most
cases large per share earnings are
the
result
of
small
a
stock
capi¬
investment earning only an aver-
as
tax
railroad
many
talization against a large property
acounting
income
report for 1951
our
in
investment or in terms of
purchasing power, railroad earn¬
ings are still inadequate. Also,
Acceptances
In
that
railroad prop-
seem.
of return
terms
results
erty
Bank
included' in
the
rate of return" and went
age
to
suggest
such
false
on
companies
impression
by
increasing the number of shares
outstanding either by stock divi¬
dends
stock
or
split-ups. It is in¬
split
three
their
stocks.
We
railroad
companies
outstanding r capital^
suggest that there are
other well known companies that
might properly consider this
pro¬
also
We
recommend
contemplating
that
either for the
new
money
com¬
financing
purpose
or
for re¬
industry during 1952
approximate
$1,375,000,000,
of convertible bonds. In view
of the
relatively favorable market
of which slightly more than a bil¬
lion dollars is for the acquisition
for railroad equities which exists
of
today such a procedure could
lor
equipment and the remainder
additions
and
betterments
to
suit in
a
re-
lower borrowing cost and
the
1950 to
by
000,000.
On
the
the
ever
ciation
of
amount
capital
of
made in the last
the
expenditures
seven
years.
Ex-
cept for equipment financing the
industry
of
new
has not been a seeker
capital to any important
be
the
highway
carrier.
Huge
highway construction programs at
public expense enable the trucker
to operate at a competitive advantage.
However,
the
recent
trend toward construction of toll
Railroad
and
Association,
with
represented, adopted
report
embodying
•
Street, New York 5
Boston
Cleveland
•
Philadelphia
railroad
Cincinnati
*
passenger
service
mit
incorporating all the
mendations in
•
•
Pittsburgh
recom¬
two of the most significant will be
holds that where
a
service cannot
compensatory its aban¬
should
be
permitted.
Another recommends that the As¬
sociation record itself
the
imposition
user
charges
mercial
making
roads and the imposition of ade-
on
of
Street, New York 5, N. Y.
favoring
all forms of
passenger
use
as
compensatory
com¬
transportation
of roadways, airways
Continued
on
Continuing the security business of ROOSEVELT & SON founded 1797
San Francisco
Pine
a
per¬
summarized. One recommendation
Municipal Bonds and Corporate Bonds & Stocks
30
on
this discussion but
CO.
Washington
St.leuis
specific
paying basis. Space does not
HAncver 2-2727
•
year.
states
recommendations designed to put
Underwriters & Distributors
At Wall
42
committee
a
*
Chicago
Utility
eight
DICK & MERLE-SMITH
State &
the
at
ing during November of this
indebtedness of the railroad
than
both
Commissioners at its annual meet¬
total
more
policies,
significant, as well as
positions on this subject
by the National Asso¬
the railroad industry continues to
little
widening recognition of
taken
was
significant to note that the
industry is
,
is
most
is
It
•
side
state and the national levels. One
donment
War
$400^-
favorable
more
regulatory
ment in the industry's debt ratio,
The main competitive threat to
World
estimated
an
the problems posed to
transporta¬
tion by outmoded and unrealistic
II.
of
percentage in¬
-
be made
end
for railroad
August, 1952, the railroad
might be further in¬
creased
opportunities for further improve-
the
same
to
expiring late
now
bill
wage
at the same time provide potential
since
contracts
new
secure
probably the coal indus¬
try, in the period from January,
bring to nearly $8,000,000,000 the
total of capital expenditures made
4
living
achieved by the steel work¬
roadway and structures. This will
C. J. DEVINE
of
cost
a
ers, and
The
cedure.
ance
by
workers
creases
recent,
date
will
made
negotiating
in 1953 seeks to
teresting to note that during 1952
the railroad
expenditures
of
supersede those
to
funding maturing obligations, give
greater consideration to the issu¬
Capital
SfMlaUiUtot
to
provision. Further, if the program
of the
programs,
of raising
Capital Expenditures
that
this
correct
panies
accounts.
FRANCISCO
ir
tied
index. If the wage rates
currently
in effect prevail throughout* all of
significant to note that the amounts equipment having an estimated next year and there is no change
of increases granted this year were value of $24,000,090, a relatively in the level of railroad employ¬
ment, next year's wage bill might
the full amounts which the car- small part of the total.
be some $67,000,000
higher than
riers sought and for the first
the 1952 level due to the escalator
More Stock-Splits Urged
time in our recollection the ICC
did not withhold
U. S. Governments
so-called
The
agreements.
Equitable Plan of equipment leas¬
ing was employed with respect to
page
46
Volume 176
Number 5178
.
.
The Commercial and Financial Chronicle
.
29
(2353)
Reports 1952 Municipal Issues at Record High
Lewis
Miller,
Assistant
Vice-
IBA
President of
the
First
tional
of
President of the First National Bank of
Bank
Chicago,
issues of
Chairman
the Munici¬
of
pal
the
the
Committee
the
ciation's opposition to
to
tion,
that
Since
...
then, however, beginning m
May there was a steady decline
tures
Hollywood,
Fla.,from Nov.
from
the 2.03%
basis
in
3U
the
met
Dec.
5.
The text of the Report
follows:
With but
1952
month
a
that the amount of
out
during the
bonds
will be sub¬
year
of any earlier
previous record high
the volume of such
made in
about
put
excess
The
year.
issues of
new
municipal
stantially in
in
remaining in
the record to date evidences
long-term
1950
$3.7
issues
was
total
was
During
when
the
the
billion.
first ten months of this
year cor¬
amount by about $60 million.
For the purpose of
comparison
below
the
notes and
ing
the
first
year and
ten
i
?
during
a
this
of
like period of
of
the
of
including the
year
above
re-
mentioned
large public housing offerings, the
March
from
of
which
of
second
September.
of the
postponed
was
until
the
Also
latter
the
part
removal
Voluntary Credit Restraint
restrictions
around
the
first
of
April helped to accelerate the vol'
"
of
ume
new
municipal
<
There
preceding
years.
two sources of very
were
issues.
There is
estoppel
and
feature of the pro-
one
posal, however, which is of serious
to
concern
state
and
wbicb
It is the matter of
in its application to
us.
municipai
there
totaling each
d0nars
mjnd
\ye
the
quent
27
iSSues
new
billion
to
sucb
be
out-
dollars
marketed
several billion
year
have
particularly
distribution
markets
bonc[s
securities of
currently
are
standing about
with
and
for
in
subse-
municipal
the interest of investors in
securities
and
also
in-
our
Commercial
Th#»rp
,
i«
nPpH
no
efforts
our
tn
partiaTlarly
yfears
years,
rpvipw hprp
since
since
parucuiaiiy
1938
1 wo,
to
10
and Article 3,
.£°mmercial Paper." .Negotiable
have municipal revenue bonds de->
clared
law
by
to
be
"negotiable
pal bonds:
necessary to go to
and
await
blocks
of
totaling $304.5 million.
was
on
Jan.
15
in
the
bonds
The first
amount
of
lative
the other
be
on
million; and
(2) On June
Ohio
Sept. 23 totaling
of this year the
4
Turnpike
Commission
sold
$326 million of State of Ohio Turn¬
pike revenue bonds. This was the
largest
bonds
single
ever
issue
sold.
of
revenue
In 1950 the Com¬
monwealth of Pennsylvania issued
$375
million
tion bonds.
in
veterans'
included in that Article is
paper
provision which might well have
been prepareci to provide munici-
a
the amount of
any
of
municipal bonds.
ever,
are
general
single issue
They, how¬
obligations
of
in
each
attributes
negotiability to
instruments.
The
negotiable
clearly specifying negoliability and not leaving it to assumption or subsequent argument
and later court action
is,
we
As reported
vious
extensive
as
at two of
meetings this
proposed
our
year
Code,
drafted
the
under
of members of the
are
expected to be marketed dur¬
ing the next few years. The total
Bar
of such issues put out in 1953
may
equal or exceed the 1952 volume.
l?nn by those bodies.
tion
form
Course
Interim
in
Report
1952
of
State
Law
above
municipals
during
fact, it improved from a 2.11%
yield basis at the opening of the
year—using the "Bond Buyer's"
market index of average
yields of
bonds of 20 large
—to
a
municipal units
2.03% basis through April.
American
the
American
purpose
of
adopcare-
ful study was devoted to this pro-
reported that despite the
substantial amount of new issues
of long-term
the first four months of this
year
the market stood up
very well. In
the
great deal of work and
posed
we
and
Association, for the
last
May
Laws,
Institute
Uni-
on
ultimately recommending it to the
A
Market's
cle
"does
Code
by
members
3
documents
not
securities"
K js
of
the
mentioned
be
negotiable
for
the
instru¬
of
possible
purpose
clarity and to avoid
any
misinterpre¬
tation
in
this
or
respect and
such securities may be
it
be
so
ar-
decision
as
that
so
clearly
and pass as such in all quarters-
in marketing,
in
in the hands of in-
vestors and in the courts.
We be-
lieve that nothing should be left
to chance interpretation in the
proposed law where the inclusion
of a clarifying provision would
avoid such risks or reduce them
to a minimum. We believe, too,
that there should be no omission
in the Code in its application to
state and municipal securities, ineluding those payable from a special fund, which may ultimately
prove detrimental to the issuers of
or investors in such securities or
the industry dealing in them. >
; This feature of the Code was
negotiability in its applica- presented to and considered by
tion to investment securities. It the Section of Municipal Law of
could
readily be contended and
probably upheld that it was not
the American
the
in
intent
of
the
legislature
Bar
Association
instruments
al
th
t
from
state
in
San
Francisco.
It
there
was
,
.
4U
enactment
and
mu-
n^rmtinhlp-inctnimpnt*
it
'«
'
be"
the
wouId
by state
Jhe
supersede
iaws
clare
which
legisla-
Negotiable
certain
tiable
specifically
bonds
be
to
instruments
municipal
Underwriters and Distributors
question
which
de-
nego-
concerning
of
including
bonds.
revenue
The
INVESTMENT SECURITIES
negotiability
have in mind under the
we
proposed
Code
embraces
obligation bonds
as
well
general
as
reve-
bonds
It has been said that
as
the at_
NEW
tributes of negotiability
are provided for investment securities in
Article
8
it
could
be argued
these securities
are
struments.
the
If
BOSTON
YOKK.
PHILADELPHIA
CHICAGO
that
negotiable inattributes
A
of
by the states it will add materially
desirable and protective' fea-
Article 8, why not declare them in
that Article to be "negotiable in-
DATA
'
•'
f>'~
ON
r
in fact provided
state and municipal securities in
MUNICIPAL
10Mos.,1f>50
10
are
FINANCING
Mo*.,'
1951'
..
10 Mos., 1 !)52
,
financing
$3,128,466,387 $2,713,541,173 $3,753,028,599
Short-term financing .1,231,842,561
1,210,647,897" 1,728,065,122
Total
Underwriters
.
Long-term
Distributors
"
Dealers
Brokers
$4,360,308,948 $3,924,189,070 $5,471,093,721
Corporate and Municipal Securities
Special and Secondary Offerings
State, Municipal and Revenue
Research and
Advisory Service
Commodities
Bonds
Shields & Company
'
L
Members
other
Lehman Brothers
Hp
Continued on page 36
(Jme^lcan Secmiti^
instruments Laws of the particular
state and with it, of course, the
nue
tn
.
.
struments because, had the legis- t0 negotianie instruments, it de¬
lature wished to do so, it would clarts expressly that that article
have so expressed itself and would does not aPPly to securities. That
its
Further,
securities.
proposed law by its ter
turei.
j
Code
ates negotiable
se
negotiability
'
at
its Annual Meeting in September
to money,
investment
or
organizations,
We appreciate that when adopted
to
ac-
negotiable instruments
(Italics ours.)
lear th
nt form
nici
apply
title
of
ing
National Con-
in
misunderstanding
each state with the resultant atfondant costs, loss of markets,
time, troubles and worries await*nS conclusions?
Further, there is, we believe, a
sound and reasonable argument
tor those who for one reason or
°ther may wish to take advantage
the lack of negotiability in a
security to advance the fact that
the Code is very sPecific on the
sub3ect insofar as certain classes
of PaPer are concerned. It is,
however, correspondingly specific
in withholding the classification
value of the many essential exist-
direction
to
This
However, the
specifies that Arti-
clearly
pre-
known
opinion, in
concerned
instruments.
Code
very
a
the Uniform Commercial Code,
was
ference of Commissioners
our
con-
sider, not only highly important
but essential among the marketing
and. protective features of state
and municipal securities.
The records indicate a substan¬
tial
accumulation
of
authorized
but unissued
municipal bonds that
In
state
of
the State.
The
curities
ments.
negl- "0t have made the distinction
tiable
matter of
compensa¬
This is the record high
enactments
taught
having legis-
declaring such bonds which have
approximately $133.8 million and
was
general
experience has
the importance of
us
the
about $170.7
that
clear
with
court to
court
our
all
municipal security financing, that
the proposed law declare such se¬
Asso¬
should
of
r
ln
rtS'°ftom UmeV?onUme it°Uis
(1) The local housing authori¬
along
essential, in
tr"1?en!s arespecifically pro- passing the Act to consider invest- pointed out, among other factors,
£°r
Atrtlcle.3 commercial
lts application to °f the Cod1 ment securities as negotiable in- that Article 3 of the Code relates
*
several'
past
"In-
covers
vestment Securities
Code
the
over
mThe ProP°sed Code consists of
articles. Article 8
10
The Proposed Uniform
Why
in
done
was
as
of
,
Negotiability of Municipals Under
struments"?
gue
•
instruments"
issuance during the year
of blocks of new issues of munici¬
put out two
renews
such
interest
ceptable
—
dustry
sizable
ties
the
will greatly exceed those
.
of the two
each
It is
.
securities
recitals,
course, af- negotiability
the weight of oiierings
during the
lease
r
of
validation,
20
Nov.
c
waS'
fected by
amount
months
As
z.39%
a
yield basis shown by the mdex
of new issues of
municipals, both
long-term, put out dur¬
basis to
October.
W^L
responding figures exceeded that
there is noted
.
other phases.
to
new
of municipal credit in financing private projects.
use
„
Conven¬
in
Miller
out
An¬
41st
nual
Lewis
current year
nicipal securities under proposed uniform commercial code, and
sented the Re-
of
long-term municipal bonds in
Chairman, points
as
the Code.
with result that, affected by weight of offerings, the
yield index has declined moderately. Discusses negotiability of State and mu¬
of
IBA, pre¬
port
Chicago
negotiable instruments and
securities
of the previous year,
Securities
Committee
tween
Municipal Securities Committee, headed by Lewis Miller, Assistant Vice-
Na¬
I\etv
Stock
York
Exchange and
principal Stock and Commodity Exchanges
14 WALL STREET
NEW YORK 5, N. Y.
Municipal Dept. Teletype NY 1-1052
•
WHITEHALL 3-5300
Corporate Dept. Teletype NY 1-1S30
^
_
—
—
—
m-
m*
—
SO
The
(2354)
Foresees Federal Deficits, with
The
tee
Association
its
less
Commit¬
Investment
the
Bankers
Federal Taxation Committee of IB A, headed by James M. Hutton, Jr. of W.
through
Hutton,
E. Hutton & Co.,
of
America,
Chairman,
M.
James
Jr.
E.
W.
of
Hutton
&
IB A concentrate
of taxation. Urges
of
members
predicts continued heavy government spending in
im¬
years
individual
Stock
de¬
'
livered
annual
its
report
the
at
With
let
relief from double taxation of dividends;
(3)
and unincorporated
corporate
41st
Association
o
1
has
ly wood,
tion. General Eisenhower's
dealt
p
Jr.
J. M. Hutton,
to Congress will probably
recommend totals which will not
exceed
changes in
arid
taxation
the
expected from
that
duction
be
may
will
Adminis¬
new
should
of
text
the
Committee's
report follows:
,
In
view
of
the
results
of
the
choice
In
and if he chooses to be the
Washington,
that
we
it
is
attempt to
appropriate
appraise
effects
man
of this change upon
legislation likely to be enacted
during the coming year.
Since
a
any
sachusetts
Chairman
bill will depend
tax
large extent
Rumors
are
prevalent
will
ask
for
$70
Armed
the
Committee,
Forces
that
propriations
Committee.
is
true
because
already
has
of money
sums
for defense and
a
Fer¬
abroad.
the
Korean
War
this
Of
of
Industrial,
and
Distributors
Public
Railroad
Utility
these
and
Securities
Insurance
Unlisted
appropriations
Defense
cuts
to be made
are
NEW
YORK
BROADWAY,
Telephone BArclay 7-3500
I)U
PONT
BUILDING
WILMINGTON,
DEL.
<15
ELM
bill
WIRE
Congress Street
Boston,
Tifft
1387
spending commitments which
inherit from his prede¬
•
Mass.
Mitchum,
650
Mass.
first two
main
as
It
and
see
& Company
Spring Street
:
be deficits
next
how substantial deficits
even
with
can
.
lion
contracts.
To
as
this:
Dealers in
Tax. This
eral
the situation briefly,
"hard goods" program
ness
in
might
Millikin,
Senate
result
there
the
a
deficit
new
in
a
more
Administration will
will
and
Municipal
sizable
individual
unbalance
Investment
Public
program
because
unpopular
and
it
is
would
will¬
brackets.
SINCE
1863
STREET, NEW YORK 5, N. Y.
on
Securities
Railroad
Municipal
SCHOELLKOPF, HUTTON & POMEROY, INC.
63 Wall
HAnover 2-2900
70
Street, New York 5
Niagara Street,
W nshington
BOwling Green 9-2070
Teletype NY 1-2827
Buffalo 2
8060
Teletype BU 122
Private
Wire
Between
Offices
to
Actually, of course,
Continued
i Iarvey Fisk & Sons
52 WALL
politically
appear
give greater relief to wealthy tax¬
payers than to those in lower in¬
than the
Distributors
Utility
Industrial
tax
the
OF
Bonds
therefore
this
For this reason, it will be difficult
to tie our 50% limitation into the
decrease
come
and
the
part of the pro¬
uncertain. Furthermore,
ing to face and therefore tax cuts
in the new bill will probably be
Underwriters
head
Committee
United States Government Securities
State and
by Gen¬
budget
still further, relief to individuals
will probably be limited to 5%.
business
be
who
much
as
for
cuts, will
will
to $14 billion.
are
promised
Finance
success
consequent increase in
up
that
in the follow¬
charged with the responsibility of
tax legislation in the
Senate, has
1953-54.
of from $4 to $5 bil¬
revenues
lion and
it is
since mid-
tor
$1
level. A moderate decline in busi¬
sum¬
Money appropriated for the
about
is
in
believe
to
are
.
any
change
be, but present
vote lor repeal without providing
some relief for individuals. Sena¬
drops
since
no
have
success
his campaign
speeches but'it faces the difficulty
that Congress will probably not
gram
be
of
It
us
was
individual.
that
to
seem
Eisenhower in
follows.' %2Vz bil-' indicated
assume
which
likelihood
best chances
pointed out that these
estimates
be
abandoning
$3
Such deficits
marize
of
billion
should
changes in the
ing:
profits, $2 billion cor¬
excess
*
efforts of the
IBA
these shall
our
presently
are
reductions
the
upon
program.
It should be
the
new
addition there
bill
greatest
porate -and
be
economies
forces, contract cancellations and
fewer
Tax
which
in the
tax
corporate
$8Vi' billion
cuts in the size of the armed
mean
it is
Federal
(1) Repeal of the Excess Profits
billion in excise taxes in
might be effected
through
reduced
spending
for
so-called
"hard good s"1 and
personnel. Such economies would
.
The
of
tax
because
the
of
thinking leads
All together these add up to about
which
,
(3)
r-In
in force
bear
deficits,
our
longis perhaps too
early to determine with certainty
be
must
employees
budget
opinion
without
is of vital impor¬
year
Consideration
scheduled
in his
budgets even if taxes re¬
they are. Tax cuts are
now
and
brought to
range
tax
new
March 31, 1954.
certain
consequently it is difficult to
avoided
Calif.
Inevitable
seems
scheduled in the laws
1
>"■
Tuliy
Angeles,
hand.
be
probable
new
about
approximately 15%.
(2) Rates on individual income
taxes go down after Dec. 31, 1953.
promised tax reduc¬
problem.as going
to keep
Federal fi¬
there will
that
PA.
TO
South
Los
in
officers
members
present laws. These are:
real
how
be
nances
BUILDING
PHILADELPHIA,
Hartford, Conn.
Street
to
NY 1-1248-49
LIBERTY
his
to
concentrated
(1) Excess profits tax drops on
tions,
Schirmer, Atherton & Co.
*
49 Pearl Street
Brothers
Main
Springfield,
LINCOLN
CONNECTIONS
the
upon
a
In view of the pressures which
of
and consequently the tax
program
will
In view of
N. Y.
Bell Teletype
NEW HAVEN, CONN.
DIRECT
5,
,
upon
of
as
corporations.
will
deficit
portant scheduled changes
EXCHANGE
YORK
STREET
Schirmer, Atherton & Co.
50
STOCK
NEW
receipts
taxed
re¬
of
Jan. 1, 1953 to
Laird, Bissell & Meeds
be
ac¬
the
depend
tance.
cessor.
120
net
a
based
the
Deficits
to
Tax treatment for self-em¬
corded
Obviously the size of the deficit
-
will
they will have
appropriations, not
General
Eisenhower,
Substantial
business
tirement funds similar to that
given in the tax program to im¬
he
MEMBERS
billion
$9
therefore, faces an extremely dif¬
ficult budget problem because of
Securities
by Constitutional amend¬
The election by unincorpo¬
(7)
$68.1 billion.
to come out of
spending.
Stocks
corporate dividends.
Committee that the
nearly
income
ployed persons with regard to
aid,
approximately $77 billion prob¬
estimated
passed
are
of
the
of
If
they will bring the total amount
available up to $149
billion. If
Municipal Bonds
Bank and
estimates.
of
capital
corporation.
the postal
able for 1953 and indicate
Depart¬
upon
ment
other
of
the
expected to be about
Underwriters
against
deficit, will be difficult to attain.
These add up to an overall figure
the requirements requested by
military are
$40 billion, based
25%
(6)
budgeted at $4 billion plus and in¬
as
the
Relief from present double
rated
presently
costs
cluding such items
fiscal year
new
government
in
shortening of the
period and an increased
a
(5) Repeal of the Excess Profits
works, about $1.5 billion, and gen¬
eral
50%.
Tax.
and
farm
as
exceed
ment.
currently set at $1.9 billion, public
amount
available. For the
economy
individual
on
Federal taxation in times of peace
to
few,
domestic
approxi¬
mately $72 billion has been spent
through September, leaving ap¬
proximately
$109
billion " still
succeed
Each
when
started, Congress has appropriated
approximately $181 billion for the
military
and
for
military / aid
a
These
taxes.
(4) Support to the effort to limit
mobilization to men¬
but they are limited
and relatively small. Cuts in the
budget for such things in our
tion
limit
reduction
rate,
(3)
Mer¬
in
piling
to
A
taxation
year
stock
not
(2)
deduction
drastically
economies
for
equitable
more
a
collecting
for losses.
Congress. Possibili¬
Marine,
substantial loss in
no
top
holding
of
to $1
1954, since this
in
certain
upon
were:
A
gains
emergency
ready been committed. Since mid1950,
•
target for an econ¬
a
minded
chant
large part of this amount has al¬
Forces
is
exist
ties
vast
of
cost
less
or
a
believed would
we
and
for
(1)
of the
atomic
program. Foreign economic
program
at
combined normal and surtax rates
re¬
because
may
Con¬
voted
unlikely
rising
billion
under the Truman Adminis¬
tration,
of the Ap¬
Chairmanship
the
to
billion,
This
further
but
1954,
are
be reduced
from $2.4 billion this
in
down,
gress,
the Armed
will
up,
be
to
Senator
Michigan
of
guson
Mr. Truman, who must submit the
budget,
of
to become Chairman of
the first step is to try to estimate
the size of the budget for fiscal
T954.
Chair¬
line
in
be
go
the
omy
Committee, but if Bridges choose
the budget,
upon
will
aid
ond.
the
of
ductions
energy
will
in
reduced
Assuming
Eisenhower's first
fiscal year but will probably drop
by about $71/2 billion in the sec¬
Appropriations Com¬
the mittee, Senator Saltonstall of Mas¬
the
tax
to
as
was
billion would be
second.
spending
actual
not
will head,
which he
to
ing change in the Administration
the
billion.
$20
1954,
Other
mostly for pay and reSearch, amount to $36 billion. Ad¬
ditional security programs call for
$6.4 billion this year and may be
et,
and
Republicans and six Demo¬
crats respectively. Senator Bridges
of New Hempshire will have his
com¬
from
For fiscal
spent.
case
measures
programs,
that the Korean War goes on, even
if these cuts are made in the budg¬
seven
Presidental election and the
another $10
be
estimated
an
Eisenhower budget
cut
composed of 12 Republi¬
nine
Democrats, and
be
cans
The promise
and
committees
ices Committee. These
support.
during the
anything at least
clue.
a
basis
September, this leaves $78 billion
to
mind
look
probable gain, and in
a
revenues,
$29 billion already spend through
still
in
any
1950 amounts to $107 billion. With
carry
made
mean
the first
from
in
Serv¬
Armed
the
and
to
made that $9 billion would be cut
viz: the Appropriations
Committee
pledges
have
we
re¬
spending
two committees
with
rest
will
The
government
the Senate,
tration, and laid down a tax pro¬
gram
which
the
Association's
membership
of
if
but
campaign
de¬
of
of the amount
termination
Federal fi¬
nances
Final
amount.
that
try
It is difficult to guess just what
these views will be at this time,
budget
message
with
rospective
largely
will
men
out
the views of General Eisenhower.
billion mentioned before the elec¬
Fla. The Com¬
mittee
concentrated
changes which
persons.
in
these
material decrease from the $85
a
realistic
a
program
result
at
in
estimates
these
-
Program
which the IBA can
support. In the past our program
vention of the
H
*
"
■
■
Tax
take
us
tax
and (5) social security added for self-'
concerns;
employed
Annual Con¬
(4) uniformity of taxes for
perhaps
income.taxes,
A
(2) reduction in capital gains tax, with shortening of holding period;
Tax;
Ex¬
In
instead of the 10% hoped for.
5"%
""t
the New York
change,
expected.
now
are
profits tax and some reduction in'
(1) securing repeal of Excess Profits
on
than
fact, it is likely that they will be
limited to a repeal of the excess
mediately ahead, with resulting budget deficits and little change in high scale
Co.,
Thursday, December 18,1952
...
Only Moderate Tax Cuts
Taxation
Federal
of
Financial Chrc^iicle
Commercial and
page
63
■
Volume 176
Number 5178
.
.
The Commercial and Financial Chronicle
.
Treasuries
Responding to Free Market
Stressing the importance of the
which
has
from
resulted
the
Federal
long-term bond in 1952
Re-
of
Re¬
Chair
m a
of
count
caused
Corpo¬
this
economy."
The
hailed
was
the
"a
as
the
of the report follows:
development
for U.
market
During
Federal
Reserve
ther
open
market
as
War
II
which
in
the
primarily
responded
to the influences of economic fac¬
This
tors.
free
long desired return to
in
markets,
opinion
the
of
Committee, is the most significant
in
development
restoration
the
the
of
to
approach
sound
a
mone¬
tary policy. Evidence has already
free
that
appeared
in
markets
Government
securities
constructive
influence
exercise
a
the
on
economy.
accord
The
between
the
Trea¬
Department and the Federal
Reserve Board allowed the System
sury
to
its
to
return
function of being
primarily concerned with the vol¬
ume
bank
of
rather than
reserves
with the maintenance of any
level .of
of
interest rates
Government
prices
securities.
This
all
ket
reappraise their
to
given
and
caused
segments
the
of
mar¬
responsi-'
bilities.
Investors, dealers, the
Federal
Reserve
System, and
Treasury
alike
necessary
to learn
of
niques
and
have
free
a
it
the tech¬
market.
assumptions formed
years
the
found
anew
become
Habits
"neutral";
as
securities
has
forced
an
has been
increasingly true in
re-
weeks.
These
es¬
conditions have had
new
impact
some
Treasury
upon
nancing policies.
fi-
totalling
Bonds
which
coupons
might
called
during the
called
because
have
year,
been
not
were
they could
be
not
refunded at any interest saving.
In
the
offered
bond,
Spring,
a
the
2%%
the
Treasury
non-marketable
bond
same
which
was
On
the
handled
whole,
the
itself
its
new
well
responsibilities.
in
suited
cord.
This time
it
purchases.
in
previous
the
free
a
and
market
yields
offered
combination
of
cash
and
Committee
plan,
or,
visable
and
'''
under
the
Mills
whether it would be adto
resort
repeal
this
to
earlier
the
legislation
method
°f scheduling corporate tax
ments evenly
ers
following
over
the
,
year
,
pay-
the four quart-
income js earned. It is
^
These
•
hearings
in
our
,
which
feeling
®
preceded
of
exhaustive
suance
naires
serve
to
the
long-term
had
reserves
either "through
the
to
be
officials,
to
bankers,
The compendium of
answers,
other
non-bank
,
...
,
point of view, the'acceleration of
::
Continued
ESTABLISHED 1845
to
purchase such securities from the
from the 2%%
inflation
MEMBERS
bond and enabled
System to prevent the
of
the
New York Stock
in
Also,
sury
the
Spring,
Exchange
New York Curb
Exchange
supply
money
which ordinarily accompanies delkit financing through banks.
the
Trea-
changes in the
all series of Savings^
announced
terms of
Bonds.
The
.
new
only
been
terms
have
moderately
at
well;
received. Whereas, in the early*
Par+L °f the year net cash outgo in
connection with the Savings Bond;
as
61
Wall
Street, New York 5, N, Y.
w i
reports that some 75% of matur-
was
WERTHEIM <Sl Co.
Members New York Stock
Exchange
■
should
be
used
in
Following
the
for
failure
non-marketable 2%%
money,
turned
with
to
of
the
bond offer-
the
important
sum
intermediate
marketable
a
over
were
2%%
was
of
area
bond
well
subscriptions total-
allotted.
The operation
Trea¬
financing operations.
Commercial
corporate
of the Mills plan
tax
has
payments
New York
resuked in a heavy concentration'
Treasury cash receipts in theMarch and June periods. In anticipation of these receipts, the
Treasury has issued Tax AnticlPatlon Bills,
a method of finance we consider appropriate as
long
as
effect.
the Mills plan remains in
However,
question whether
it
is
we
timely
should
to
con-
W
atlanta
&
UNLISTED
i
•...;
boston
buffalo
PERSHING & CO.
chicago
detroit
SECURITIES
Members
hartford
;
pittsburgh
New York Stock Exchange
providence
'V
'.
New York Curb Exchange
Chicago Board of Trader
-
rochester
toledo
Teletype NY 1-750
toronto
Telephone WOrth 4-4300
wheeling
\
-
on
Clark, Dodge & Co
-
curities
,
-
'■
youngstown
.
.
,
.
■_
^rom a debt management vo umes of important historical.
Higher
investors
and
of the hearings themselves, make
yields, particularly on the shorter
maturities, induced corporations
and
Re-
economists
since
from
the
and to numerous members of the
investment banking fraternity.
re-
the sale of
or
market.
question-
Treasury,
provided
borrowing
the Reserve Banks
securities
issues
to
is-
the
by
Board, to other Government
Private Wires.
v
held.
were
were
ex-
billion
v
held in.
Washington. In March the Patman
'
operate
}nS E bonds are being extended;
change against certain TLfyt % by tl]eir owners
whether from;
bonds not included in the earlier
satisfaction with, their terms or«
operation. The issue was unsuc- from sheer inertia, is not clear.:
cessful
from
the
standpoint of These rather negative results are
raising new cash.
In fact only being achieved in
a period of
$318 million of new money was high personal savings, a period in:
obtained from private investors, which savings deposits, in partiIncluding exchanges, only $1,758
®re. lncreasing substanmillion of non-marketable 2%% tially.
Savings bond maturities
bonds were issued. We believe this
u"?, 0
-*n
a-nc*
record
of disappointing response r
billion m 1954. It is the opinindicates a distinct investor pre. of
your Committee that a
ference for marketable securities thorough re-examination of terms
and points up the principle re- and methods used in the Savings
peatedly stated by your Commit- Bond program should be instituted
tee that only fully marketable seat a very early date.
a
the
LISTED
debt
and
were
both
for
ae-
Board
was
$11 billion, of which $4y4
market
fi-
such
;•'J.'
"•
tinue to
reserves.,,.
done
higher
following the Trea¬
ing
the
of
action
the
Reserve
with
of
-
issues in 1951,
received
sector
policy
approximately $100
month, it is now more
nearly $50 million. The Treasury
The thinness apparent at times in
longer
had-been
sury-Federal
offering. The 2%% issue
under
management
two studies in
monetary
million per
an
has
year
of
periods of deficit financing. When
this assumption proved incorrect,
program
the Treasury in June
set of cir¬
on
market
open
offered for exchange against 2%%
ing to raise
cumstances.
by providing
best
new
market
facilitate
$24.5 billion bearing 2% and 2V4%
tablished that it is hard for many
new
would
the Reserve
to readjust to
the
field
way
and has resulted, banking system. This largely offhigher short-term yields. This set the deposit increase resulting
sury
through
firmly
so
Points out Patman
important
of artifically supported
prices had
short
buy
Securities
Governmental
your
has
of restraint. The unwill-
one
cent months and
the first since be¬
stands
World
described
one
System
the
category. Thus the
fore
Reserve
commercial banks to borrow in
single bond in the
a
year
has
in
sold
high levels. The policy of
ingness of the Reserve System to
fn
System has nei¬
nor
year
market
se¬
the
period
this
purchased
over-ten
free
a
Government
S.
curities.
of
have
peak and
practical effect, however, has
bedn
»
The Year 1952 has witnessed the
further
all-time
Reserve
This
conse-
business
to
new
Federal
been
the
1
text
record
fac¬
on
a
expecta-
Federal
through
of the post-Korea period,
Bank, loans
the
the
nancmg
inflation, though lack-
quences
reached
that
this
of
System
of fur-
acute inflationary
succeeding
appraisal
based
was
tion
capital .expenditures have been at-short
primarily
influence
constructive
direction
ing the
II in which the Government Bond
tors,"' and
the
in
but
market
^e
high gear. The trend
in
been
ther credit
in
influence of economic
in
has
to
the
41st
Annual
responded
economy.
an additional $2
billion from non-bank subscribers,
which
tmuously
Annual Re-
total,
kwM
The year has been one in
port
the
During the
mone¬
the
the
on
weeks purchased
the economy has been almost con-
its
in
still apply to
issues and
limit their mar-
longer
severely
ketability.
Hollywood, Fla.,
pointed out that 1952 was "the
first year since before World War
to
is already true and will be
increasingly
so
in
succeeding
principle of independent Federal Reserve.
this
of
which
the
of
which
Dis¬
York,
by the restrictive terms of
many
ration of New
has
This
market by Federal
open
to restoration of sound
\
.
v
c
"
banks received only $500 million
.
considerable degree
a
ownership,
n,
Presi¬
Repp,
dent
has been to
N.
Herbert
".h.1
;
its
through
market
single
not
•
Board,
serve
its
sold in
or
approach
an
constructive influence
a
Committee Report sustains
the
Federal
at
policy and
tary
Com¬
mittee
Meeting
tax payments compli¬
Treasury financing and un¬
duly disturbs the money market.
cates
years
Secu¬
rities
Association
either bo ught
was
Reserve, and holds this indicates
Board,
mental
Herbert N. Repp
corporate
whose Chairman is Herbert N.
Govern¬
the
<
Committee,
Repp, President of Discount Corporation of New York, reveals
the
and
serve
Securities
ac¬
cord between the Treasury Depart¬
ment
Governmental
IBA
free market in government bonds,
31b
(2355)
120
BROADWAY, NEW YORK 5, N. Y.
page
68
The Commercial
-(2356)
Financial Chronicle
and
..
.Thursday, December 18,1952
In Attendance at IBA Convention
APPLEGATE,
ABBE, CHARLES M.»
&REAR.X. JOHN
{lockland-Atlas
National
Bank,
Coffin
Boston
ARMSTRONG,
AJNSWORTK, WALTER W.
Metropolitan St. Louis Company,
St.
New
Louis
O'Neal-Aiden
ALDINGER,
&
Co.,
Arnold
Louisville
Inc.,
CYRUS B.
Fordon, Aldinger & Co., Detroit
AJLDRICH.
GEORGE
LORE
AT WILL,
Atwill
Leedy, Wheeler & Alleman, Inc.,
ALLEN,
E.
E.
Orlando
&
Francisco
San
Francisco
Chronicle,
E.
Ames Si
ALLYN,
A.
Investment
M.*
A.
C.
ALTGELT,
AM4ZEEN,
Coffin
Si
EDWARD
Burr,
Si
BAIRD,
S.*
A.
Incorporated, Boston
LAWRENCE
JONAS
New
RALPH
C.*
Morgan
New York
&
Stanley
Group, Incorporated,
BARCLAY,
Stein
Mr.
BICKEL,
Kindred
BARNETT,
Jr.,
&
Co.,
GEORGE
and Mrs.
New
New
Chicago
E.
JOHN
BLAKE,
H.
-
J.
Dealers,
Bank
The
H.*
BOGERT,
Jr.,
The
EWING
Ohio
BOLGEK,
JOHN
BOLTON,
H.
V.
R.
H.
J.
Co., Newark
R.
W.
W.
New York
/
H.
Si
Jacksonville,
Atlantic
Asiel
&
.
-
York
7
M.
Si Co.,
New York
Harriman
New
,
York
CROUSE,
Pierce, Fenner & Beane,
CHARLES B.
'
GORDON
J '
DeHaven Si Townsend, Crouter & Bodine,
Philadelphia
.
.
CROUTER,
.
.
}
Louisville
CROWELL, WARREN ,H.* 1
;
^
Crowell, Weedon & Co., Los Angeles
Kindred &
HAROLD
Co., Chicago
R.*
*
CURTIS,
A.
>
Detroit
of
ARTHUR
Mulianey,
Gardner,
A.
of
GEORGE
St.
Louis
Wells
&
C.
Model,
DAVIS,
Paul
Roland
RALPH
H.
Davis
&
Company,
Stone,
Stein
V'* -"V?
Boyce.Co., Baltimore
PREVOST*
Bros.
boynton;
&
elwood
Hallgarten &
New York
W.
DAY, JAMES
&
Co., Chicago
E.
Stock
E.*
Exchange, Chicago
DEAN, Jr.. HOWARD B.*
Harris, Upham & Co., New York
Continued
on
Southwestern
BRADLEY,
Eaton
MEMBERS
NEW
NEW
YORK
YORK
STOCK
CURB
COMMODITY
;
-
=
;
-
v.
-
.
Securities Company, Dallas
*
1;
*
WHITNEY
Howard, Incorporated, Boston
NATIOMAI
BRANDI, FREDERIC II.*
EXCHANGE
EXCHANGE
&
S
d.«
''
>;
.
New York*
Co.,
BRADFORD, HUGH
Mclaughlin, reuss & co
-
Dillon, Read & Co.. .Inc., New York " ^
(ASSOC.)
BRAUN,
EXCHANGE, INC.
F.
S.
Jr.,
FRED
C.
SECURITIES SERIES
M'oseley & Co., New York
BRAYSHAW,
DONALD B.*
Lord, Abbett & Co., Atlanta
BREWER, ORLANDO
}■
BONDS: BOND SERIES
BROOKE, Jr., FRANCIS m.*
BOND BROKERAGE SERVICE
Brooke
&
Co.,
Putnam
&
;
BROPHY,
NEW
YORK
5
BROWN,
Dean
I
Telephone HAnover 2-1355
Teletype—NY 1-2155
MUTUAL INVESTMENT FUNDS
REQUEST
&
•
Co.,
New
J'
120
York
,i
W.? Pressprich
Bank
of
& Co,,
«
New York
•*
"
K.
.
.
America, N, T. & S. A.,
Francisco
.
BROWNE, KENNETH C.*
York
Times; New. York
&
RESEARCH CORPORATION
New York
AUSTIN
Witter
BROWNE, ALAN
New
PROSPECTUS ON
NATIONAL SECURITIES
A.*
BROWNj BARRETT*
San
—
-
.*
:
.
.
.
'•
>
-
.
^
INDUSTRIAL STOCKS SERIES
-LOW-PRICED COMMON STOCK SERIES
;
R.
,
L.
Associated Press,
STREET
SPECULATIVE SERIES
•
York
New
WALL
•
'
broome, robert e.*
Guaranty Trust Company of New York,
ONE
PREFERRED STOCK SERIES
COMMON STOCKS: STOCK SERIES
Hartford
Co.,
BALANCED SERIES
.
Philadelphia
BROOKS, JOHN H.
Stockholder Public Relations Counsel
BALANCED: INCOME SERIES
LOW-PRICED BOND SERIES
S*
Phelps, Fenn & Co., New York
Chicago
A.
Nashville
Baltimore,
MERRILL
HOWARD
DAVIS,
Adamex Securities Corporation, New York
CLARK, HAROLD W.
Clark, Landstreet & Kirkpatrlck, Inc.,
the City
E.
Peabody & Co., Boston
DAVIS, DeWITT
D.
Wainwright & Co., Boston
CLARK,
Bank
DARLING,
Kidder,
FORRESTER
C.
/
DALENZ, JOHN McG. >v - >
Calvin Bullock, New York
Cleveland
Co.,
WARREN
&
ARTHUR W.
Becker & Co., Chicago
G.
Baltimore
C.
V-
of
MILTON C.'': i ; ' '
'"" •'
Ripley Si Co., Incorporated, ■
CROSS,
Co., Inc., Charlottesville
D.
New
CROSS, CALVIN
•
Bank
Jacksonville
Co.,
Hallgarten
A>
National
CROLL, JOSEPH
V
•
Co., Richmond
JAMES
The
Midwest
BOYCE, C. MEREDITH
BOYCE,
<
WALTER W.*
Craigie
,
Pressprich & Co., New York
CLARK,
York
Co.
Co.,
H.*
York
-
,
D.
Lyons & Co.,
Reinholdt
B.*
Mercantile Trust
F.
CLAPP, Jr., JOHN J.*
Bank, Los Angeles
York, New
Si
S. R. Livingston, Crouse Si Co., Detroit
CHRISTOPHEL,
Corporation, New York
Chase National
H.
ROBERT
CRAIG1E,
Chiles-Schutz Company, Omaha
CHARLES A. B.*
New
L.
CHILES,
BOWMAN, FRANCIS B.
Ttfie
&
RICHARD W.
Co., Atlanta
CRANFORD,
v
TODD*
CHAPMAN, R. C.
Fulton, Reld &
Bank,
W.
Broad Street Sales
of
New
CHAPMAN, DWIGHT W.
American Trust Company, San Francisco
R.
FRANCIS
CRAFT,
Co., Atlanta
Cassell
,
.
Si
Starkweather
-
McDonald-Moore & Co.,
Moulton & Company, San Francisco
California
F.
4
C.
Atlanta
COX, M. J. M.
Curtiss, House & Co., Cleveland
Chicago
DOUGLAS
Co.,
Guaranty Trust Company of New York,
Co.,
&
MALON
COWIE, JOHN
~
HUGH
Jr.,
Si
CHAPEL,
Chicago
Rico
BOWEN,
Carroll
Ingen & Co., Inc., New York
DALTON
Co., New York
&
Courts
~
W.*
G.*
.
BORKLAND, Jr., ERNEST W.*
Tucker, Anthony Si Co., New York
BOSS,
W.
Barcus.
ROBERT
Si
Merrill Lynch,
New York
.W.
FREDERICK
BORDEN,
Nuveen
&
COURTS,
CHANDLER, JAMES W.*
F.*
D.
Son, Louisville
Savings Bank, Chicago
C.*
J. Van
Courts
CHANNER, Jr., GEORGE S.
Columbus
Sattley & Co., Inc., Detroit
Puerto
York
Si Co., Inc., Miami
JOHN
JAMES
COURTS,
.
Government Development
MONTREAL
York
CECIL, O. V.*
Bulger & Co.,
BONNIWELL,
&
CASSELL, EUGENE H.*
Association, Chicago
Company,
Shillinglaw,
Dominick Corporation of Canada
New
H.*
Allyn and Company, Incorporated,
Chicago
W.
T.*
New
II.
Van Ingen
J.
Chicago
Inc., Chicago
-
ROBERT
Hirsch
A. C.
,Eastman, Dillon <te Co,, New York
BOLES,
Affiliate
B.
Sweney, Cartwright & Co., Columbus
LAWRENCE
H.
Montreal
Inc.,
Ingen Si Co.,
York
COUIG, J.
Jacquelin, New York
FRANK
CASEY, J.
M.*
Bankers
Si
CART WRIGHT,
V
City Bank of Cleveland,
ERWIN
Quinlan,
RAYMOND V.*
COUFFER,
Nuveen & Co., Chicago
Courts
C.
Investment
Hilliard
CARTER,
Company,
Cleveland
Canadian
B.
Corporation, New York
CARROLL, LEE W.»
robert b.
BOEHMLER,
B
Harris Trust &
Lee
FRED
National
K.
Si
Paine, Webber, Jackson & Curtis, Chicago
CARRINGTON, Jr., WILLIAM G.
Ira Haupt & Co., New York
Blankenship, Gould & Blakely, Portland
blyth,
J.
CARR.
Blankenship, Gould & Blakely, Portland
14 Wall Street, New York 5
Company, Limited,
CAREY, CHARLES*
John
S.*
WILLIS
Company, New York
T.
Norris
Van
COOK,
A.*
Street Journal,
John
Byllesby and
Philadelphia
BLANKENSHIP,
Exchange
H.*
CARPENTER, FREDERICK B.
F.
M.
J.
New
CHARLES A.
Carlisle
the City
of
L.
SIDNEY
Si
COOK, HAROLD H.*
Spencer Trask & Co.,
CARHART, Jr., HAROLD W.*
A.*
Howard, Incorporated, Boston
BLAKELY,
Members New York Stock
&
FRANCIS
A.
Goldman, Sachs Si Co., New York
York
Dominick:
B.
Higginson Corporation, Chicago
Wall
Co., New York
WALTER
BLAINE,
York,
W.
Collier,
Association,
CARDWELL, MARION
York, New York
Eaton Si
&
York
CARBERRY, PATRICK
York
BLACKFORD, HENRY J.*
A. M. Law & Co., Spartanburg
BLAKE,
Dominick
Gouinlock
CAPEK,
ROBERT
BARCUS, JAMES S.
Barcus,
New
New York
Company,
Hutton
COLLIER,
Inc.,
CAMPBELL, IRVING
H.
Chase National
The
Incorporated, New York
COOK, A. HALSEY
The National City Bank of New York,
The First Boston
CLARENCE
BIVINS,
F.
CORRIN'GTON,
Milwaukee
Jr.,, WILLIAM K.*
Si Boyce, Philadelphia
&
Toronto
National Association of Securities
Bros.
National City Bank of New
^Denotes
York
of
Brooke & Co., Philadelphia
ANDERSON, Jr., WILLIAM J.
Equitable Securities Corporation,
Nashville
D.*
Phelps,
Ripley & Co., Incorporated,
Brothers Si
Barr
New
and
BIANCHETTI, A. J.
B.
ARTHUR L.
E. R. Jones & Co., Baltimore
York
Securities Company, Dallas
ROBERT
Si Son,
CONDON,
Lee
BANEY,
ANPRESS, GEORGE H. A.*
STEWART
York
BETHKE,
Sons, Winnipeg
Co.,
Si
WILLIAM
E.
Washington
Discount Corporation, New
ROBERT H.
KEEN*
W.
Sherrerd, Philadelphia
Investment Bankers
York
New
HAROLD J.
•Hairiman
D.
Allen
Pressprich Si Co., New York
BERItY,
York
W.
Si
CANNON,
New
New
Richardson
James
W.
R.
Gregory
CALLAWAY, Jr., DAVID
H.*
First of Michigan Corporation, New York
BERGMANN, CHARLES L.
Chicago
FRANCIS X.
COLEMAN,
CONDON, JOSEPH P.
McDougal & Condon,
Bell,
M.*
Bank,
CALVERT, GORDON L.
Investor,
H
COHU, HENRY WALLACE*
Cohu & Co., New York
CALLAGHAN, JOHN W.
Goldman, Sachs Si Co., New York
Topeka
Co.,
D.
CHARLES R.
Southwestern
K.*
York
New
JAMES F.
Development
Association, Chicago
GEORGE
Schoellkopf, Hutton & Pomeroy, Inc.,
CAHN, Jr., WILLIAM M.«
Henry Herrman Si Co., New York
ANDREA
States
BENNETT,
DUDLEY
BALDWIN,
ANDERSON, HERBERT R.
Distributors
for Banking
Philadelphia
BAKER, JOHN. D.
Reynolds & Co.,
ANASTASIA, A. A.
Wall Street Journal, New York
Kuhn, Loeb & Co.,
United
York
Miami
COLEMAN, SYLVAN C.*
Byrne
Dallas
Montreal
BENNETT,
ANDREW
BAKER,
MISS
BELL,
Incorporated
F.
Bosworth, Sullivan & Co., Denver
C.
Cole &
Bankers
Investment
C'OGGESHALL,
New
& Co.,
LOU
MARY
COLEMAN, MERRITT C.
BYRNE,
THOMAS*
RUSSELL
BELL,
Kindred
COBURN,
York
Co., Cleveland
HAGOOD
Jr.,
Barcus,
K *
Rico
Butcher
Greenshields Si Co., Inc., Montreal
G. Becker Si Co.,
BAKER,
Irying Lundborg & Co., San Francisco
ANDERSEN,
of
York
Trusts,
Savings Bank, New York
AMES, AMYAS
Kidder, Peabody & Co., New York
AMES,
Association
BAGGS, HENRY McK.
The Pennsylvania ComjOtny
Jr., ERNEST J.*
Harris Trust &
Montreal
Co.,
Co.,
H.*
&
BUTCHER,
Si
KARY
Southwest Company,
Beecroft,
S.
W.
Allyn & Co., Chicago
J.
BEECROFT, HARRY*
Hill & Company,
Malvern
New
ALLYN, JOHN
First
M.
WILLIAM
BAEIt,
C.
Allyn & Co., Chicago
Puerto
New
Ilirben
BUTCHER, III, HOWARD*
Butcher & Sherrerd, Philadelphia
Company of Georgia, Atlanta
BECKETT,
York
Dealers'
,
Trust
Bullock,
WILLIAM
CLARKE.
New York
HUGH*
Jr.,
Si
E.*
Merrill,
Company, New York
Bullock,
Government
F*
Beaubien
Trust
B.
New
G.
L.
BEAVERS,
Dealer, Cleveland
Si
C.
Bank
ROBERT
Calvin
BUSCAGLIA, RAFAEL
BEAUBIEN, ANDREW S.
Canada, Toronto
Co., Inc., New York
ARTHUR
C.
Co:,
HAROLD
BACKUS,
ALLEY, WILLIAM
A.
&
Bache
DANA
York
Harris, Upham & Co., New York
M.
Hayden, Miller & Co., Cleveland
York
CLARK,
CLARK,
RICHARD
Hutton
BURNS,
New York
Company,
CHARLES
Jr.,
BAXTER,
New
Co.,
A.*
Kraus, Cleveland
AVERELL, ALFRED
P.
&
F.
Calvin
Baxter, Williams Si Co., Cleveland
ALBERT
Bulge Si
Hutton
BAXTER,
CHESTER A.
Si
E.
E.
JOHN
Wachovia
JERROLD
BULLOCK,
Wood, Struthers & Co., New York
BASSETT, EARL K.
W.
Western
Winston-Salem
Dodge Si Co.,
BUECHLER,
New York
K.*
PHILIP
BARTOW,
Inc., New York
AUSTIN, J. HOI.LIS*
J. W. Tindall Si Company, Atlanta
Company, New York
SIDNEY
San
&
Rothschild
F.
Ball,
Inc., Chicago
HAROLD
Allen
ALLEN,
Boston
of
E.*
Plain
T.
Clark,
FRANCIS D.
Co.,
CLARK,
Company
Buyer, New
JOHN
BRYCE,
Co., New York
Jr.,
Leeds Si
Bond
Cleveland
'
WILLIAMCo., Miami Eeach
AUGUSTUS,
RAY
Ray Allen & Company,
ALLEN,
L.
&
Bartow
Jr.,
ATWOOD,
F. MONROE
The
BRYAN,
York
CLARENCE W.*
BARTOW,
f, B. Ashplant & Co., New York
York
W.
;Harris, Hall & Company, Chicago
ALLEMAN,
Drexel
Orleans
New
ASHPLANT, FREDERICK B.
ALEXISSON, GUSTAVE A.
Granbery, Marache & Co., New
ALFORD,
Crane,
Trust
York, Buffalo
BRUCHLOS, WERNER C.
P.*
Shields Si Company, New
WILSON*
H.
Si
ASCHER, H. ALBERT
Wm. E. Pollock Si Co.,
I).*
The Parker Corporation. Boston
EUGENE
BARRY,
H.
Corporation,
BARTOW,
ARNOLD, JOHN L.
Estabrook Si Co.,
New
Barrow, Leary & Co., Shreveport
York
ARNOLD,
ALDEN, Jr., WILLIAM O.
GEORGE
Hanseatic
York
New
Marine
New York
WM. RUSSELL*
BARROW,
Incorporated, Boston
Burr,
Si
BROWNING, HOMER*
SEYMOUR*
Erothers Si Co.,
Barr
ALBERT T.»
ARMITAGE,
W.
F.
BARR,
LOWRIE*
A.
Applegate & Co., Pittsburgh
G.
Geo.
jBlyth & Co., Inc., Boston
Broadway, New York 5, N. Y.
page
71
*
Volume 176
Number 5173
.
The Commercial and Financial Chronicle
.
.
(2357) ' 33
in U. S.!
For the fourth consecutive year,
the
America has reported
Conven-
tion
A
W. C. Pitfield &
to the An¬
nual
ss
ociation
meeting
at
other matters such
Arthur S.
Torrey
C.
eral
W.
of
Pitfield
grounds, for
&
as
$22V2
markets, along with
exchange controls, position of Canadian Fed¬
removal of
budget, capital investment, oil and
ject,
marizing the position of various pear to be turning slightly upward 000
and
is
1V2 %
classes of industry and generalize again. This prosperity is not con- higher than a year ago. Incomes
with regard to the overall eco- fined to manufacturing companies are rising and the cost of living is
tee, decried nomic situation in Canada today, in the urban areas alone
Our still declining gradually. People
Chairman of
Commit-
the
»
talk
the
favorable
which
d
throughout
the
has
United
States regarding Canada's progress
has caused "Canada to be oversold
in
the
this
United
idea
he
States."
To. offset
presented
data fur-
nished by the Committee regard-
ing
Canadian
various
industries,
and drew up an overall picture of
Canada's
tion
In
economic
current
of
posi-
Committee's
the
much has
Committee
been written and
In
this
ever,
>
Report
Fourth
the
Canadian
Annual
inflationary
in
farmpr
narf ir»ir*atincf
hicfh
farmer is participating in thic high
this
k
in
income,
of
01*0
are
Heport
sum-
any
pres-
farmer.
,
;
.
in
dustries.
a
n
penditures
ahead
mnm
something
of
spending
a
year
like
10%
Defense
ago.
proceeding at a rate
of about one-third higher. Capital
is
research development, utility
year.
As
a
industrial production is at
result,
a
ord level and business profits
rec-
$5.2 billion.
even though they may
be leveling off at the
moment, are
Iikeiy to exceed, by a considerable
few particular in-
ap-
early
improvement
than the previous peak in 1928
in the
summer
some,
or
ten-ye^^lerage11811613 ab°V6
-
The
whether
we
are
recession when the
a
nr
cuwajts
...
sensible, when times
are
odlic
good,
sion*™We°hidl
after
World
War
II
ronoern
—
about thp tran<itinn f mm
peacetime
a
At that
a
\*/or
However
economy.
time the chief
nrnhlem! i
amount
least,
tion
.
the
time
longer-
■
-
;
•
at
infla-
so,
problem
also
was
fear
some
of
Defense spending is still on the
and
there
is a
heavy
.
,,
in
carryover
this
particular
Underwriters
•
was
beginning of the
be
a
continuation of home build¬
and
commercial
and
Continued
on
service
page
a
there
year
indicated
an
drop of nearly
35% compared with a year earlier
but by June this was 17% above
Distributors
Dealers
•
•
Brokers
the
month
same
a
Rights - Scrip - Warrants
,
previous.
year
Concern over the prospect of a
drop in Canadian exports was not
borne out inasmuch
Our staff and facilities
are
available
assist dealers in the management
secondaries and
at
all times
to
of underwritings,
first
six
trade increased
countries
States
special offerings.
months
Weeks
gross
01 4-6600
•Midtown, 400 MadUan AvI., N*w York 17, N. Y.
PL 1 -1909
half
NEW YORK
PHILADELPHIA
CHICAGO
PROVIDENCE
DETROIT
of
product
the
of that for the
bott
by
in
year
budget
of
a
ONNELL
&
Minister
Ab¬
this
based
on
New York Stock
product
129
of $22y2 billion.
this
Exchange
New York Curb
the assump¬
national
gross
MEMBERS
as¬
budget and
1952
was
in
was
similar pe¬
The annual rate will
Finance
his
With
flOSTON
United
than 50%.
probably not be far from that
tion
*Open Thursdays until 9 PM
Members New York Stock Exchange and other Principal Exchange*
the
national
sumed
40 Wall Street, New York S, N. Y.
than
more
riod of 1951.
&
REORGANIZATION SECURITIES
export
20%, with sales to
other
first
ahead
Hornblower
1952
rising
The
the
during the
as
of
Exchange
BROADWAY, NEW YORK 5
Tel.
increase in economic
REctor
2-7800
CLEVELAND
PORTLAND
activity
8ANG0R
the
cost-of-living
index
BRANCH
dropped from 191.5 in January to
EST. 1888
187.3
in June.
At
the
time,
same
OFFICES:
254 Park Avenue, New York
Buhl Building, Detroit, Mich.
1
Press Plaza,
Asbury Park, N. J.
the wholesale-price index for this
period
declined
comes,
on
the
tinue to rise.
wage
about
other
4%.
hand,
In¬
con¬
The average weekly
in industry
from Janu¬
rose
to June about 7%
ary
in current
dollar terms.
Joseph McManus & Co.
MEMBERS
New York Stock
Exchange—New York Curb Exchange
being, to take price and de¬
adjustments as they appear
during the latter part of the year,
Canadians have settled down to
New York 6, N. Ya
39 Broadway
Having learned, at least for the
time
mand
Midwest Stock Exchange
period of good,
a
prosperity.
average
Investment Securities
This is not to say we are without
problems—in fact any economy al¬
ways
has some problems.
Cur¬
TRADING MARKETS and RETAIL DISTRIBUTION
1
**"->■
—McMaster Hutchinson & Co.
Chicago
—
Hulburd, Warren & Chandler
Cleveland —Wm. J. Mericka & Co.. Inc.
—Crockett & Company
City —Burke & MacDonald
New Orleans—T. J. Feibleman & Co.
Dallas
—Southwestern Securities Co.
Pittsburgh
to
diversify
operations,"
"how
long to consolidate and expand
Denver
—B. L Simpson & Company
St Louis
—White & Company
Detroit
—
San Antonio
—
Toronto
—Matthews & Company
Harrisburg—Blair F. Claybaugh & Co.
,
Lentz, Newton & Co.
will
long
last
and
back
So,
—Blair F. Claybaugh & Co.
R. C. 0'Donnell & Co.
pro¬
foreign markets," and, of course,
the ever present worry of "how
Houston
Kansas
such questions as "how to remain
duction and sales costs" and "how
CORRESPONDENT WIRE SYSTEM
Chicago
rently, business is occupied with
competitive in spite of rising
through
be
as
domestic
ever.
by
is
now
when
ean
L. F. Rothschild & Co.
prosperity
present
the
next
close,
our
Members
129
market
400,000,
is
a
higher
have
our
York
Stock
Exchange
population
approximates
Broadway, New York 5, N. Y.
Telephone: REctor 24600
than
increased
estimated at 14,000,000, our
force
New
set¬
expected."
1952 draws to
Consumers
some
labor
the
5,500,-
Boston
Chicago
de¬
partment. It is felt that there will
serious decline in home building.
SINCE 1888...
of
•
the future.
At the
'
LiS
-
being
a
increase
® events, things may hap-
industries felt much better about
There
but
concern
,
restrictions
no
concern.-
ing
x,
of
for
is-
£ tba?e days o£ £ast"
shown and these
was
with
answer
.
and
thi,
Exports,
Such industries, namely margin, the $3.9 billion total of
and
to
up
rearmampnt
those
and urban growth, are was inflation. In Canada our
govcontinuing at high levels and will ernment and our
banking fraterlikely reach the record figure of nity dealt most judicioUfly with
about lower prices and competispring
to
as
to
confronted.
are
pansion
,
jShffwMd&Sbut
that
pro¬
ZTe" conceded ifSf
sible to
It is alway™sane
ex-
higher
ably higher this
future
country"
even though defense and textiles, leather goods and appli- 1951.
Add
to
this. our
record
capital spending continues on the ances had similar problems in the wheat crop of 675 million
bushels,
up-trend.
United
States
which
brought or over 100 million bushels
been notice-
the
expend.tures, some associated this was accomplished with
with the defense program, some as little
dislocation of the
a result of substantial industrial business
In the early part of the current
year we heard considerable about
recession
monri
s
spending more on consumers
goods and services—with such ex
are
though
even
you
leading
sures,
Our exports have
Committee, how-
will continue by
we
resumption
give.
can
prices
without
prices is taking place
that
of the Canadian
consumer
rising after reversalearlier in the
a drop in consumer
year.
This
said about Canada during the past
12 months that there is little new
information
mnnthc
months there
talk and consider- level
as to whether the prices of some agricultural prodfavorable publicity which we have ucts have softened and others have
received has not oversold Canada remained firm.
in the United States. We-do not
The record wheat crop recently
th'® to be
mOTe
harvfted b™8s with it problems
likely that those who feel this way of storage and marketing but
are ,n an overbought position.
comes at a time when other coun1952 draws to a close, eco- tries are having only fair or, in
nomic activity is at the highest some cases, poor crops. All this
level m Canada's history. More will, of course, ultimately mean
Pe°Ple are working, incomes are more money for the Canadian
a
follows:■'
report
i
some
higher and
,
The text
±1
4
^as been
'
So
ai—
the past three
p"u bTfcity able thought
Arthur S. Torrey
s d r e a
t„
that
the
to
dissimilar
question
employment
briefly
problems in this regard
our
not
are
which
the
1952, of
billion, will be equaled, if
"Turning
New York and
Montreal,
.
the
and with the full realization
it is hazardous to forecast or
ing industries. Looks for continued cooperation between U. S. and Canada.
Company Ltd.,
that
not exceeded.
explorations, and position of lead¬
gas
believing
gross national product of
prosperity. Reviews Ca¬
nadian economic developments-and Canadian securities
Hoi 1 y wood,
Fla.
Chairmanship of Arthur S. Torrey of
Company Ltd., offers data indicating there is adequate ground
for confidence in Canada's continued progress and
the
of
between now and the end of
the year that will
upset these calculations
but
there
are
good
pen
Canadian Committee of I B A, under
the
of
Committee
Canadian
Investment Bankers Association of
Bell Teletype NY 1471
Rochester
.
Montreal
40
*
34
The Commercial and Financial Chronicle
(2358)
companies had acquired $19,900,position taken by life insurance 000,cOU of direct placements durcompany witnesses that registraing the period, the resales which
tion of direct placements is defi- might possibly have gone to the
Life Insurance Investments
frjonds, held by life insurance com¬
panies at the end of 1951 had
been
acquired by direct place¬
losses.
ment.
ments-
this advantage
looms large. It is important to us
to be able to work out directly
with the borrower or his agent
the terms which we feel will make
the loan sound and attractive.
The
is that it makes
speed of com¬
pletion of the loan than is pos¬
sible in the case of public offer*
nogs.
In1 periods of changing in¬
terest rates, this advantage is a
major consideration to the borsower.
Third, direct placements
facilitate adjustment of indenture
provisions and in the terms of
original loan agreement which
are
mutually beneficial to both
the borrower and the lender.
Facility of adjustment is impor¬
tant iri the dynamic economy in
which corporations operate today.
It is also advantageous in non¬
corporate loans, such as in the
New Jersey Turnpike issue where
it was possible to obtain consent
to
payments,
'
practical under
methods of financing.
traditional
These arguments for
ment financing
nancial
as
a
direct place¬
source of fi¬
economic
and
stability
put forward last spring in
the "Monthly Review" of the Fed¬
eral Reserve Bank of New York,
were
believe
I
and
There
merit.
that
can
they
have
be no doubt that
investment expendi¬
tures by American business at a
high level is the keystone of gen¬
stability
of
stability. J;
Turning now from the advan¬
tages of direct placements, there
are
several questions
been
raised
with
which have
respect
method of financing.
to
this
I would like
Perhaps one of the more sig¬ to refer to three of the more im¬
advantages of direct portant ones. First, there is the
placement financing is that it is nuesticn of whether SEC registra¬
of financial and economic
stability.
This
because
direct
loan
is
primarily
true
under
usually be
agreements
placements
can
changed at times of general busi¬
ness decline, and this can help to
SEC
holders
largely
into
tion of direct placements
is need¬
provide life insurance pol¬
icyholders
with
full
protection
against unsound life company in¬
ed
to
This
vestments.
tvhich
was
is
the
question
raised last May during
PUBLIC UTILITY
When
as
with
placements
which
quently resold.
re-
m
invest-
purchase,
stands
lties
by
has
iror one,
Veach
eacn
Secondly
becondiy,
in"Which
state
YORK
!
•
size
in New York'
through-
the
other
a
much
as
from
as
Finally
Association
of
a
'
a
year
the
Na
Insurance'
the
values
securi-
of
held
Valuation
companies provide the NAIC staff
and
enormous
an
formation
direct
each
advantages
Transfer
to
As
hearings
Subcommittee
Rales.
REGISTRAR and TRANSFER COMPANY
-
BEekman 3-2170
Establish^
15 EXCHANGE PLACE
1899
Jersey City 2, N. J.
HEnderson 4-8525
Over 50 Years of Efficient and Economical Service
before
the
life insurance
large
direct
volume
then
in"
period of serious
defaults
they will inevitably face public
any
that
relations
other
and
whether
that smaller
making
am
sug-
place-
the
funds
offering.
tions
seem
problems
invested
or
pub-
fact, all indicato point to easier,
In
to
are
me
uusmeos
and
nr.us
are
proper
as
case of direct
compared with isinvolving countless holders.
problems
<.i
not,
in
placements
diver-
sues
would be
If
the
as
period
a
of
heavy
defaults
DrovidGd by the securities of na- Should occur it will take wise actienwide corporations.
tion by the life companies both
°n the other hand' the suPP°rt- ^ protect their investments and
ers
dliect placements, and there to- avoid bad public relations.
large and sma11 Nevertheless. I feel confident this
distribution
The
wisdom will be forthcoming,
great
activity
.
.
,
Government Policy and Economic
securities
of
Stability
of
Turning now to the problems
cf economic stability—for the last
the
unhappy results of faulty Governmen P°licy with respect to economic stability. When the mistakes and excesses of' the 20's
Placements with smaller corpora- ushered in the depression of the
llwl'n '?'us)„p^r''c'?a''on fin
volume of public
offenngs> the smaller life compa"ies kave many advantages from
viewpoint of diversification of
11 'f, furfv!er Panted out that
the smaller life companies as a
gen.era] rul4e have important nat-
down
sncl thst by snd lsrge the of the obvious snd crying need
smaller
companies
£
snow
better
a
of
the
teen
major life insurance
survey
of
of
$243,05-3,000
of
the
,
.
.
.
seriously complicating the
are
free
on
various securities and subjects of inter¬
individual and institutional investors* will gladly be sent
Over
on
request.
f
«
thirty., years'' .experience, in securities, finance, economics, law,
taxes, analyses, industry, counsel, research, and authorship
bucks up this invitation to confer with
directly
might conceivably have got¬
ten into
the infla-
tax, spend and elect pol-
compa¬
placed securities which were re¬
sold during the period 1934-1951,
an absolute maximum of $43,000,000
Reprints of articles
est to
six¬
nies, holding 73% of the assets of
all United States Companies at the
end of 1951, showed that out- of a
total
different policy,
a
tionarv
Individual and Institutional Investors
got into the
general public.
In
a
for
to
on
eppsideration of intelligent investment of funds for every in¬
vestor. Wise planning necessitates extended
experience in law,
business, manufacturing, corporate management, taxes, reor¬
ganizations, etc. Skill is required to soften the impact of new
taxes and regulations that affect the investors' returns so vitally.
possibly
connection
return
The critical problems of today
SEC
registration should be required
issues,
originally
pur¬
chased directly, were subsequently
this
continue
overall
INVESTMENT COUNSEL
last
where
and
phrase: tax spend and elect. The
P.an/s in the real estate mortgage in its inflationary boom. In spite
question
whether
to
Government was
30's- a.
swept into power which has remained in power for full 20 years,
Its attack upon the depression is
well summed up by its own
result was that the depression was
unduly extended and was still
ural advantages over larger com- severe when World War II usnered
Heller
forward
went
registration
the
May,
•
Tax
made
I
this
by
in¬
about their
information
to say the
placements,
complete,
hands
N. Y.
amount of
year
is
resold
New York 7,
<own
least.
free booklet setting forth the Current Federal
50 CHURCH STREET
Committee
directly placed securities, life
narrowed
Issue
cor-
r"any smaller companies in direct three decades we have seen
"
Commissioners, through its Committee on Valuation of Securities,
for
underwriters, distributors, corporations
Original
suffici-
a
confess
people's savings,
of the
among both large and sma11 in"
three
everv
last anywhere
half
one
Which
Stock
in
as
companies invest
se-
corpora-
through this method is widespread
com-
ioint examination
held atleast
are
^id
with
Stale
I
puzzled
lie
th t
commissioners
state
life
defaulting
proportions.
somewhat
I life sanies, say that the facts
direct placements indicate
has had
s. nad.a
regulatory effect
made bv
method
the
through direct placement
it. is contended
rre many in both
life
in
investments
ve t
e
s
in their tssk of'Arriving cit vsnues
NEW YORK, N. Y. and JERSEY CITY, N. J.
and
point
therefore, securing
among
a^v
give
ments are 1imited mainly to the quicker and better handling of
nn
Vnrb-
and
in
our
the
to
sif.jcation of risk such
of
with
connection
quantity to smaller investors,
repiy
and
nanv
1-1691
and their stockholders.
not available
company
missioners'
W rite for
are
localities
busfness
will
financing
Placements is cited to show that
These Laminations
which look direct Placements have many ad"
closelv TnC the inLshnents and; vantagGS for both large and small
the financial cLdulon of a com- invest°rsThrough -their direct
AS TRANSFER AGENT
other
nationwide
of
or
comoanies
of
their financing
of the larger
companies.
It is
.;ecurili^
life
the issue of whether this
placements, prime-name
COmpanies
a
hands of the general
'
which I would like to mention is
,
several
tbeir
nirt^nn^fn
^
J
question
^eld
^state in wnicn a
requires
been
,
final
and
smaller life companies are
active in the direct placements
by life companies.
In
order to aid' the staff of the Com-
and
or
seeks to do .business
jurisdiction
over
the
life company
ties
economies
one
exercises
few months to
NEW
»
many
is chartered has a statprescribing What investments
i
'
with respect to direct placements L
ous
jn
company
ute
.su
••
-
third
The
t
about as follows: On the
insurance
ent
lite
tne state m wnicn a
*
t
porate borrowers during a general
business recession of fairly seri-
tions
it.
to
,
hand, it is pointed out that companies magnified problems in
direct
sides
many
subject
time, but
some
than/light has
t
>.e
are
Which Ycurities
This state
shortly thereafter.
establishes
afford
i
hfe
regulatory author-
the
regulation
tional
We
a
for
^yery further argued that, because of gestion. So long
tends
one
-
tions to carry out
being written
a
down
it. is
rslo
inv®stLrn®nt
chance of
?uy
?
but
nevertheless,
economy,
with
The impact of
the regulation is usually after the
of
to obtain
This
direct placement financing usually
leads large nationwide corpora-
gives the policyholder additional
protection
against
un-
carrying out
v
heat
more
ments
fact
with
(particularly
bonds.
business
ance
0ne
and
NY
high-grade
^Moreover, -state regulation „of
life
insurance
sound investments.
borrowers, as
general
of having companies unwittingly
in violation of the Federal antitrust laws, State laws prohibiting
underwriting of securities by life
companies, or the Securities Exchange Act. In any event, it is
the borrower who decides with
whom and with how many it will
do business.
has been debated in the life insur-
1 vestors.
INCORPORATED
-
investors
ment
company
raised
question
smaller life companies)
dis-
be
subse-
are
to
tional
clpan!e/0arf^ubJctlrtey"Zine
SON
WALL STREET
not
the
In recognition of the aistribu- .
tion question, a couple of years
ago the American Life Convention
and the Life Insurance Association of America formed a joint <
committee to study it. To date the
discussions of the committee have Y
revealed a considerable difference j
of opinion as to the seriousness of j
direct placements is
they unduly restrict the
opportunities of smaller institu-
quired under a public'offering.
years
Teletype
would
which
mation
-
which should not be destroyed.
whether
infor-
confidential
examinations"
RAILROAD BONDS
Telephone Digby 4-1180'
a
certain
close
Another
respect
directly
limited number of
lenders he is more willing to
broad
BONDS
GREGORY &
or
one
as
registration of direct tribution without running the risk
no need for
deals
borrower
a
comnanv
company
INDUSTRIAL BONDS
'
obtaining
much pertinent information
Q+f+I
STATE AND MUNICIPAL BONDS
•
direct placements
companies are
life
the
of
question
the
under
whether
desire to do
UNDERWRITERS AND DISTRIBUTORS
'
itself,
resolves
most
40
protect policytherefore,
ments is needed to
as
to
whether
registration of direct place-
real,
nificant
a source
order
individual
may
been
have
not
eral economic
additional financing.
in
issue
an
The question of
,
greater
possible
about
protect the uninitiated
investor.
well
vestor has virtually ceased to buy
corporate bonds, it is likely that
a large part of the $43,000,000 of
resales which could not be accounted for as having gone to
other institutional investors probably in fact did actually go to
such investors. Incidentally, as a the problem. There are some who
matter of common law, when life think it would be desirable to
companies sell direct placements have a somewhat wider distributhey
must
disclose any
facts tion of the large direct placements
known to them which indicate than has been the case. The stum-'
that the borrower is in poor con- bling block has been to discover
dition. I conclude that there is a way to bring about a wider dis-
issue is to require a full
disclosure of pertinent informacurity
tion
all investors and
general public amounted to only
22/100 of 1% of total acquisitions.
Inasmuch as the individual in-
nitely not needed for the protection of policyholders.
•;
V
The main purpose of SEC registration of a publicly offered se-
be made in would be available in the case of
periods of business adversity with- a registered issue. The answer is
out forcing a borrower into bank¬ that the life companies do obtain
a
complete disclosure of pertier uptcy, may also lead to greater
willingness to
borrow on
long nent information about the issues
term in order to plan capital ex¬ purchased directly.
In most inpenditures
ahead.
Finally,'/ di¬ stances this information is more
rect placements have made pos¬ complete and detailed than would
sible certain types of financing, be true in the case of public ofsuch as gas pipelines, which might ferings.
This is to be expected,
fund
insurance compa¬
second advantage
advance
that encourages
corporate management to engage
in
long-range investment plan¬
ning.
The knowledge also that
changes in loan agreements, such
as
temporary waiver of sinking
general,
in
corporations are; able to
commitments for
obtain
loan to meet the re¬
life
sure
am
place¬
funds—a practice
quirements of both the borrower
and the lender. I can tell you that
id the case of the Prudential, and
nies
a
is the fact that under direct
principal advantages of di¬
rect placements, as I see them, are
these: First, the direct placement
makes it possible to tailor the
1
and' also im¬
stabilizing element,
Moreover,
portant as
The
terms of the
and -reduce
defaults
off
stave
miscellaneous
and
I agree fully with
committee.
Trends and Problems of
industrial
investing public. Since the sixteen their investments. All this is entirely apart from those advantages
v/hich direct placements have lor
the Heller Subthe
before
hearings
Continued jrom page 20
Thursday, December 18,1952
...
THEODORE PRINCE.
formerly Theodore Prince & Co., Members of N.
30 Broad Street. New York
4/N. Y.
.t
...
LI
.
>1.
Y. Stock Exchange
WHitehall 4-7429 & 4-7430
<
Volume
176
Number 5178
.
.
.
The Commercial and Financial Chronicle
icy of the 30's was in effect con¬
tinued
as
such
throughout the
artificially booming 40's and right
to today. That policy as it
operates today seems to be summed
up by those who say that infla¬
down
tion
,a
is
continuously
little inflation is
The result ffiJs
destruction of
Since
.
necessary—
good thing.
a
been
substantial
a
Fortunately,
in
tnat
ductive
'inflation has been almost continu¬
there
than
are
the
1953
of
stability is
doubt,
unsolved
and
seen
quantities
mous
of
read
'means that since the end of World
about
War
II
the
buying power of the
has fallen by
'consumer's
"32%.
In
"few
dollar
the
of just
space
has
inflation
years,
these
taken
third of the value of our
away,a
The
_
in
the
'even
of wholesale prices
course
has
period
postwar
been
disturbing than that of
more
consumers' prices.
1945 to
From
.F948, wholesale prices rose 54%.
From
1948 to the
beginning of
From the be¬
1950, they fell 8%.
the spring of
they rose 19%.
From the
-spring of 1951 to the present they
have fallen 4%.
Over the whole
ginning of
1950
to
1951
prices
.postwar period -wholesale
ihave risen 63%.
The
*
.
erratic
movements of
ican
economy
and
inflationary
prices in the Amer¬
in the postwar years
have resulted partly from
mendous demands
the tre¬
the defense
of
^program superimposed on the nor¬
mal demands
of
the
peacetime
price
.rise has been unavoidable under
Possibly
economy.
some
these circumstances. But the price
rise
of
the
postwar
not
been
the
defense
simply
It has in
reflection of the
small but powerful
large part been
a
attempts
of
pressure
groups
have
to
returns
willing
been
more
than
secure
in
themselves
they
period has
reflection of
program.
'
for
a
to
con-
"
tribute
effort.
-
a
increased
in
It
addition,
in
has,
productive
reflection of inept and
policies
Government
ting
have
done
more
been
conflict-
which
contribute to
to
that
strikes
what to do
known—but
difficult
more
and
are
carry
date.
General
credit
should
turn.
controls
policy, sound
policy, Federal debt man¬
agement in accord with the evalu¬
■
fiscal
they
the
to
to
move
the
Federal
do
There
to
so
soften
down¬
a
be.
still
our
System
contribute
can
a
during
the
depressed
flationary
our
for
months
dec¬
two
than
addition
to
policy
be
on
Government.
done
to
business at
hope that taxes
enough to
force-
searching and critical scrutiny oi
Federal spending.
Finally,
good deal of artificial
a
pressure can be removed from our
monetary
system
the
on
market
if the
selves
that
evaluation
plqce.
of
We should rid
the
our¬
and for all of the idea
once
the
Govern¬
rely in its debt manage¬
Treasury
borrow at
can
well
as
upon
big toe is trod
because it raises the interest
carrying the Federal debt.
Nevertheless, continuance of
low-cost borrowing at all times is
•too
Much
can
great
a
able general
toward
maintaining a
stable level of business
activity
through varying the relationship
cost
to
the
nation.
credit controls.
In the general free world
econ¬
omy, "trade—not aid" is
probably
necessity for anything remotely
between the revenue and the ex¬
-approaching free world well be¬
penditures of the Federal Govern¬ ing.
Nevertheless, moves to im¬
ment.
plement "trade—not aid" will at
The
rules
in
connection
with
a
the -very outset run into most vio¬
lent business, labor and commu¬
nity opposition—opposition of pe¬
that Federal cash income will ex¬ culiar difficulty to the Republican
ceed cash outgo.
During a period Party. One cannot be too hopeful
of depressed or
declining business as to the outcome.
activity, reduce taxes and, if nec¬
In closing, I believe that
oppo¬
essary, spend more money.
Un¬ sition to the various sound
gen¬
fortunately, the rules don't fit the
fiscal
policy
simple. During
inflationary periods raise taxes so
less
are
eral measures which need to be
anticipated.
As problems before us.
Today; the
ly about a few of these measures. all of you know, commercial bank huge Federal tax burden is itself taken today will result in their
lending leads to
an
increased •an
important source of inflation. 'being emasculated in substantial
First, in the field of Federal
Reserve monetary policy, we must money supply through expansion ■Reductions in spending are diffi¬
.part, unless the business commu¬
of deposits. The new money comcult, to say the least, because of
recognize that the interests of our
for the supply of goods the life and
whole economy are more impor¬ .petes
death necessity of nity of which you are such an im¬
and services.
The most effective
tant than the narrow interests of
arming. Nevertheless, I think we portant part rallies to their sup¬
ades.. I would like to speak
brief¬
-seasonally
,
.
the United States Treasury.
of course,
securities market be
ernment
method of restraining deposit ex¬
tures
is
or¬
derly. particularly at" times when
the Treasury is offering a new
or a refunding issue.
But let's not
can
pansion of the commercial banks
It is,
essential that the Gov¬
to
act
the
on
which
reserves,
commercial
•the
banks
are
cut down
defense expendi¬ port.
If we come through with
hurting the arma¬ even half a loaf of a
constructive
on
without
ment
effort, and I believe the in¬
coming Administration thinks so.
Further, when armament expen¬
re¬
quired to keep against their de¬
posits, through general credit con¬
trols, such as open market operaconfuse an orderly market with
-tions and changes in the redis¬
a pegged one.
count rate. If these reserves can
A pegged market is a market be reduced, or even held constant,
ditures
begin t to taper off, there
economic
:
program,
it
will
achievement and
great
league step forward.
a
be
The
MUNICIPAL
the
control
an
not
-as
credit
of
general
-
MUNICIPAL and REVENUE
problem. During
for instance, the
easy
past
year,
"*
**
*
'
*
•
BONDS
United States received from abroad
BONDS
about
to
in
commercial
the
by
billion
$1
increase in
an:
leading
gold,
the
of
reserves
banking
system
like amount.
a
Fortunately, during this period
when
already inflationary sit¬
being aggravated by
an inflow of gold, the Federal Re¬
serve
took steps to .restrain the
increase of bank credit. Beginning
with .the March, 1951, "accord,"
Boland, Saffin & Co.
Established
1920
TELEPHONE
20 PINE ST.
Bell
System
the
WHITEHALL 3-3414
5, N. Y.
an
uation
was
refrained
Teletype—NY 1-535
f
the
supporting
r o m
1
WALL
STREET, NEW YORK 5, N.
Y.
have
Banks
Reserve
Federal
Tel.
WHitehall
4-3432
1
Teletype NY 1-838
-
Government securities market ex¬
periods when
short
for
cept
the
Treasury was offering a new issue.
During the past year, the Federal
Reserve Banks
have
thus been
able
prevent their holdings of
rising,
to
Government securities from
Consultants
on
Municipal Finance
Constructive Service to
of
ume
Municipalities
market
the
on
A
though the Treasury has put
even
monetization
therefore,
Finance we render a con¬
Consultants on Municipal
As
structive
planning service
for Cities,
assistance
in
development
of
plans for new financing,
existing
debt
financing of self-liquidating
the
public
relations.
WE
DO
structures,
planning
projects, and financial
NOT
BUY
OR
We are pleased to cooperate with
SECURITIES.
SELL
finan¬
institutions and
investment houses.
has,
and
been
serve
reserves
a
REVENUE BONDS
Banks in refusing to
supply
through the Government
tight
to
resort
to
have
been
seen
since
dislike
as
forced
from
borrowing
Federal Reserve Banks
not
in
The com¬
market.
banks
mercial
resulted
market has
money
Inasmuch
cial
STATE, MUNICIPAL
direct
debt
This action of the Federal Re-
'
securities
of
reorganization
The
the
prevented and a
influence placed on
bank deposit expansion.
member
States and other
This service includes experienced
of
restraining
!
governmental units.
substantial, vol-:
a
issues.
new
on
the early
a
the
scale
BYRNE AND PHELPS
'thirties.
commercial
banks
being in debt to the Fed¬
v
has been
Wainwright, Ramsey & Lancaster
70 Pine Street
New York 5,:N. Y.
cause
them to be
and investments. What
been
an
the
old
much
Federal Reserve
more
>
:
New York 5, N.
Telephone DIgby 4-2410
"pegged"
market, has been held, under the
new
.
Y.
might have
inflationary
extremely
under
44 Wall Street
in¬
creasingly selective in their loans
situation
Telephone WHitehall 4-3540
to
Incorporated
V
-V
eral Reserve Banks, the net effect
policy, to a
manageable expansion.
Open End Phone to Newark,
'
f/.
Teletype NY 1-1474
J.: MArhet 3-6319
a
seven-
.
then the ability of the commercial
"banking system to create new
Mnoney is limited.
NEW YORK
as
Here again a
Among other things, as I have
the part of the said, it makes impossible work-:
requires
■fiscal
bolster
cost of
a
the American economic system
a
sound and intelligent
of
the
somewhat
been
We should all lend
wisely admin¬
istered monetary policy, stability
past
has
our eco¬
support to that end.
In
-
pablum
stability of
nomic system.
year
has been
to
act
with
great very heavy. Both the loans and
view, fortitude, and the investments of commercial
selflessness, particularly with an banks have been rising steadily,
electorate which has been fed in¬ although the rise in the past few
of
I
reduced
bad.
have
would
be
tribute to the
credit
bank
time.
same
will
new
low cost in good times
con¬
industries,
for
the
Reserve
in its financing problems. In
to
initiative,
self-reliance and
all
agency for assisting the Treas¬
ury
eral credit controls of the Federal
tive, well known, and efficacious
measures,
any
Administration
Federal
a
im¬
reduction
economy, and incidentally
bolster free enterprise,
the difficult years
ahead, it is vital
that the. Federal Reserve
System
be free to use its
powers to con¬
the pegs in March of 1951, we
is have seen a wise use of the gen¬
demand
of
recognize the
tax
the
ment-
Since the removal
overall
to
certainly amule leeway for sub¬
stantial
ment will
deal toward the stability of Federal
economy.
opposition of special groups. To * Respite rather
ditions
win through with these conserva¬
in; some
clearness
is
an
of these, salutary as
which will not arouse Reserve System to restrain a po¬
fierce and determined tentially;'inflationary situation.
most
as
the Federal Reserve to be
simply
of
one
are,
refuse
portance
In fact,
If,vOn the other hand, the mar¬
pegged, the Federal Re¬
v
nomics, free markets, free prices,.
free production and consumption,
aid."
*
it
ex¬
ket is not
ation of the market place; and in
the more general
field of eco-' great
hardly,
order
Witness, early 1949.
serve
"trade—not
is
should
it may even sell.
and sound monetary
and
'
investments,
way
inflationary palliatives pursued
to
in
our
folio thus built up may make the
Federal Reserve reluctant to buy
effect
Government
securities
when
it
put into
out than the easy
this
of
times, policy devoted to economic sta¬
selling Gov¬ bility, *. and who still would like
infinitely
to
All
The Federal Reserve has been
boom
Reserve, System becomes an en¬
gine of inflation through its sup¬
port purchases. The huge port¬
simple and well
are
they
are
ernments
most
me
In
other
the addi¬
subtractions from
or
investors
when
forcefully is that the basic rules
on
of
money.
it
Reserve
over
supply.
money
and
material
"by 48% since October, 1945, which
-
tions to
enor¬
advice recently on what to do to
stabilize the economy. The thing
have risen
Consumers' prices
ous.
-
it loses its control
as ever.
in this room, without
us
has
as
35
'
Federal
ity to contribute, through mone¬ ercising its open market
powers to
tary measures, to the stability of exert a restraining influence on
our
economic system.
Once the the expansion of credit, thus act¬
Federal Reserve commits itself to
ing in the interest of the whole
maintain certain fixed prices and
economy. Unfortunately, however,
yields for Government securities, there are powerful elements who
indica¬
for the
the prob¬
problem
system may,
time being at least, meet
lem of inflation, but the
the
System has surrendered its abil¬
American
economic
which
in
to
great pro¬
the
of
power
Each of
War II
of World
instability
these unsettling forces.
tions
dollar.
our
the end
and
inflation
curb
(2359)
36
The Commercial and Financial Chronicle..
(2360)
Continued from page
industrial plants ness are a part of our early his¬
of leasing tory. In the 19th century, canal,
such plants to private corpora¬ turnpike, and railroad promotions
tions or individuals and to finance were the principal beneficiaries.
of
these
such construction or acquisition Some
programs
were
by the issuance of revenue or gen¬ spectacular failures and led to re¬
manufacturing
29
Reports 1952 Municipal
type of securities defined by
the Code would embrace bonds is¬
the
sued
municipalities, including
by
bonds
revenue
be
which would
not
governed by Article 3 of the
but would be governed by
ment
provisions of Article 8.
And
that the instruments in
8 are not negotiable se¬
curities under the terms of the
Code.
In fact,
the Code itself
makes a distinction between ne¬
otherwise
ments.
We are
confident that the legal
that there
practical considerations
further
are
Article
situation. We are
not concerned as to the particular
instruments
gotiable
and
secu¬
Therefore, if the Code
rities.
is
the
laws
Clearly designate state and mu¬
"Whereas, similar practices in
nicipal securities including reve¬ the past have had injurious effects states,
west."
nue bonds to be negotiable instru¬
upon public credit; and
fraternity will recognize
very
involved in this
wording or arrangement of the
needed amendment but urge one
of
"Whereas, if this practice is un¬
checked it may react to the detri¬
ment of
present system of free
and further may ulti¬
our
economy
and
use
constitutions
particularly
in
the
of
Mid¬
is
concluded
under
the
heading, "Competitive Bidding
for
Industry":
"One
dangerous
possibility
is
that the extension of industrial fi¬
mately endanger the valuable po¬
sition of State sovereignty as a nancing programs will result in
part of our constitutional dual cities bidding against one another
"Be
bond would be
It
Resolved,
that
the
their
in
will
plants.
they
In¬
vate
efforts
to
attract
outbid
To
would
rival
During the year there has been
financing of this-character
some
few of the States, principally
Mississippi, where general ob¬
ligation bonds are authorized for
in
a
in
the purpose.
In
the
Florida
Supreme
Of that State held
Court
such financing
illegal.
Louisiana
amendment
electorate
constitutional
a
approved by the
Nov. 4 last author¬
was
on
izing the issuance of general ob¬
ligation bonds of parishes (coun¬
ties) and other municipalities in
the
state
for the
purpose
tending municipal
operations.
of
ex¬
aid to private
new
cities,
Investment
to
tend
benefit of pri¬
industry."
In
article
The
system of government; now there¬
definitely eliminate the fore
existing merited concern respect¬
that
the
on
bonds of such mu¬
public
nicipalities payable solely or pri¬ funds for private benefit and on
state-local borrowing in general,
marily from the rentals of such
many of which persist to this day
plants; and
in
Code
the
it will declare or
strictions
era] obligation
High
Issues at Record
ties for the direct
or
for the express purpose
Thursday, December 18,1952
.
expand the
This would ex¬
The
Banking
Seminar
Investment
second
Bank¬
ing this feature of Article 8 of the
vestment Bankers Association of degree of subsidy.
ing Seminar, held last June, was,
governed entirely by the pro¬ proposed Code. We consider it es¬
America in convention assembled pose cities to even more adverse like the first of these sessions, a
sential from the municipal end
visions of Article 8 and it would
effects in the event of unfavorable
recommends to its members and
pronounced success. It was again
that the measure ultimately rec¬
not be a negotiable instrument.
economic
developments.
In
the
to dealers generally:
sponsored
by
our
Association
most likely event, the competitive
Following the discussion a res¬ ommended to the States for enact¬
"First, that each take it upon subsidies would tend to cancel out through the Education Committee
olution was adopted on Sept. 16 ment be in such form as to meet
in cooperation with the Wharton
with the approval: (1) of the ex¬ himself to become thoroughly in¬ and firms would locate where they
by the Section of Municipal Law
School of Finance and Commerce,
formed
on
this
whole
develop¬ would have gone without
amining attorneys who live with
of the ABA, reading:
any
University of Pennsylvania. There
ment and exercise extreme cau¬
the issuance, marketing and en¬
public aids.
"Be It Resolved, by the Section
were
100 representatives of IBA
forcement of municipal securities tion in underwriting or market¬
"Another
drawback
of
these member firms in attendance. Our
of
the
Municipal Law of the
and who in times of trouble are ing such bonds; and
programs is that the tax abate¬ Education Committee is to be con¬
American Bar Association:
called upon from the legal end in
"Second, that each use his best ment features involve redistribu¬
gratulated upon the calibre of the
"(1) That the proposed Uni¬ the protection of holders of such efforts to inform
voters, state leg¬ tion of the tax burden. If the new
program and the over-all success
form
Commercial Code be
securities, and (2) of those who islators, prospective issuing units plants do not
pay property taxes,
of both of these .-Seminars.
amended to provide that a secu¬ are
responsible for the under¬ of local government, and other in¬ other
property owners in the com¬
The subject of municipals was
rity issued by a government or writing,
placement
and subse¬ terested parties of the past ex¬ munity face heavier tax burdens
covered at one of the periods by
governmental agency or unit shall quent secondary marketing of bil- perience and inherent dangers of than
they might otherwise bear.
be a negotiable instrument if it
Walter W. Craigie of F. W. Craigie
lioins of dollars of such securities public financing of this charac¬
"Similarly, the income tax ex¬ &
conforms
to
the provisions of
ter."
Co., Richmond; John N. Mit¬
every year.
emption of the bonds sold to build chell of
Article 3, notwithstanding the fact
Caldwell, Marshall,
We believe that the dangers in¬
new factories can
Public Credit for Private
that it is payable from a special
mean, if these Trimble .& Mitchell, New York,
volved are becoming more evident
programs are more widely adopted
fund.
Operations
well-known municipal bond at¬
and better understood by those
and used, a shift in state and Fed¬
It was at our Annual Conven¬
"(2) That the Chairman of the
torneys; and Dr. Julius Grodinsky,
studying the many angles of the eral income tax burdens from tax¬
Section be and he is hereby au¬ tion a
Associate Professor of Finance of
enacted
a
revenue
year ago that our Associa¬
this ac¬ tion passed a resolution express¬ situation in their various applica¬
tion
to
the Sub-Committee
on ing deep concern as to the latent tions to credit and other impor¬
Uniform State Laws of the Board risks inherent in the issuance of
tant
municipal
phases,
having
of Governors of the American Bar bonds
for
financing
privatelyparticularly in mind the possible
Association and to other appro¬ owned
and
operated industrial
priate agencies of the Associa¬ developments in the name of mu¬ long-term adverse effects.
tion."
nicipalities
good of the distribution
For the
ments.
action
and
:
subsequent markets of State
the time after
and
municipal bonds and in the
of
h*terest of the issuers thereof and
investors
such
therein, also dealers in
securities,
we
petition
and
those
advising
protracted period
and of
the effects that might readily fee
For reference here the
with
the
(fWhere(ts,
some
enacted laws
proposed Code so that upon enact¬
palities
issue
September
review
by
Bank of
cle,
the
Federal
Chicago, there is
"City-Financed
New
or
could
the
of
and
their
deal
in
and
acquire aids and subsidies
to
the
Fac¬
are
Association
in
a
major
capacity
Walter
A.
of
moderator.
Craigie in his talk discussed
recent developments and outlook
in the municipal field; also indus¬
states
governments
as
Mr.
trial
municipal
chell
to
discussed
bonds.
the
with prob¬
uniquely their own."
Mr. Mit¬
invest¬
legal
years
of
the
United
States
ing authority bonds.
Canada adopted a resolution
18,1952, in which it recommended
made that
municipal
legislators:
finance
officers
-
"(1)
Advertising Municipal Securities
This
the
is
third
year during
Buyer" con¬
ducted its municipal advertising
contest. As will be recalled -frofei
which
"Bond
the
Carefully consider the
long-term adverse effects of the our previous reports the purpose
use
of public credit for private of the contest is to arouse interest
private busi-
in and develop effective methods
of advertising municipal securities
and
purposes;
"(2) Avoid the issuance of
mu¬
nicipal debt obligations to acquire
of
property
kind
the
and to deliver
a message respect¬
ing the factors which make them
mentioned
attractive
in the resolution."
On
adopted
i
«
of
of the
Law
Association
in
Meeting
G. H. Walker & Co.
investments. As in the
Sept. 16 last the Section of past, the "Bond Buyer" conducts
Municipal
Bar
San
at
this
American
its
Francisco
in
of
Education
also
resolution, reading':
a
contest
that part
Annual
active
support 61
the program of our
Committee
relating to
advertising securities.
"Be It Resolved, by the Section
;•
i
.
/ From advertisements entered in
Municipal Law of the Airieri-; the contest each month—January
can
investment bankers
School.
Philadelphia, acted
•at its Annual Conference en June
government
ESTABLISHED 1900
Wharton
ment characteristics
of housing
authority bonds and Dr. Grodinsky
The Municipal Finance Officers
discussed various aspects of hous¬
and
-local
on
plants, such
occur
local
future
lems that
arti¬
in this article:
"State
new
downturn, could impair
financial
and
are
easily
economic
tories."
in lowing pertinent points
other
"Finally, widespread defaults
as
Reserve
an
to
Schmidt of Schmidt, Poole & Co.,
bonds issued for
"Business Conditions," which is a
authorizing munici¬
construct
to
the
income
sources.
Among other comments the fol¬
legislatures
of the States have recently
them in this matter to amend the
i
taken at
the resolution reads:
Commissioners On Uniform State
Laws
a
was
study of the situation
involved.
In
other local govern¬
or
This
interest
able
thorized to communicate
Bar Association:
"That it
through October
is contrary to the
—
a
winner -is
selected by a committee of judges
in¬
terests of local governmental units
;Members:
\
*•
and
;_-v.
New York Stock
New York Curb
•u.w
Midwest Stock
★
Exchange
such
to
sound
local
issue their
industrial
policy
chosen by the "Bond Buyer." It
for is the advertisement considered to
governmental units to "be the best for originality, effec¬
.
Exchange (Associate)
public
bbligations to provide tiveness
plants
or
factory facili¬
among
Exchange
★
★
add
leadership.
From
these monthly winners, the
»
Underwriting and Re-offering of Investment Securities
.:
t
★
•
Dealers In Local and Over-the-Gounter Securities
Municipal Securities
State and Municipal Bonds
★
NEW YORK
★
★
★
ST. LOUIS
it
PROVIDENCE
★
★
NATIONAL STATE BANK
FOUNDED
HARTFORD
BRIDGEPORT
WHITE PLAINS
.
.-
810 Broad
1812
Strefet,'Newark 1, New Jersey
Telephones—Newark MI 3-4000—New York City BA 7-5928 Tele. NK 348
Member
Federal
Deposit
Insurance
Corporation
!
Volume 176
Number 5173
.
.
The Commercial and Financial Chronicle
.
37
(2361)
annual award is made
basis.
The
the
on
same
of
this
award
will be announced at this Conven¬
tion.
[Ed. Note:
The
award
for
the year was made to
Braun, Bosworth
&
winners
Co.,
for
Inc.,
the
New
first
10
Northern
for
and
Trust
the
form
of
months
plaque
a
Braun,
Bosworth
February: Boland, Saffin
in
cash.
We
Blyth
&
Ginther
&
of
the
ads
as
to
Company; Wm. J. Mericka
Inc.; Merrill,
Turben
derman, Asbeck &
&
&
test
or
Ol-
our
Curtiss, House & Company.
open
W.
Kraus;
May:
Pressprich & Co.;
R.. W.
Pressprich
The
were:
names
Northern
Trust
liam
ap¬
Trust
Association.
Company
of
Company of
in
Bank
The First National
Bank
Company
of
July: John Nuveen
of
tion
Chi¬
&
Report
August: The Marine Trust
states
interest
in
trade
to
both
the
appearing
tisement
were:
this
on
Blair,
Rollins
pany,
New
Cross
Incorporated,
.Bacon,
Stevenson
^Vork;
R.
York;
D.
Roosevelt
New
&
Lewis
White
&
Mrs.
Mrs.
■
Edwards
&
New Orleans
Mercantile
Company,
.
Trust
of Bal-
S.
*
Hughes, Wagenseller & Durst, Inc., Los
Mixed Foursomes Tournament:
Brothers, New York
;city-^/r
Dennis
E.
W
Murphy \
The Ohio
Donald
L.
Company, Columbus
v
1st—Frederick
G.
Larkin, Jr., Security-First National Bank,
Los Angeles.
Kirkpatrick-Pettis Co., Omaha
.
2nd—Eugene H. Cassell, C. F. Cassell & Co., Charlottesville.
>
Indianapolis
McEIroy, J. P. Morgan & Co., N. Y.
2nd—Mr. James D. Winsor, III, Biddle, Whelen & Co., Phila.
Mrs. William M. Rex, Clark, Dodge & Co., New York.
18 Hole Kicker's Handicap—Men:
Pettis
Frank L. Reissner
V
1st—Mr. and Mrs. David B.
New Orleans Cup—No Tournament Held.
Bond
&
Share
San Joaquin Light & Power
-
Trophy—No Tournament Held.
Corporation, Indianapolis
TENNIS
Bank
&
Trust
F.
1st—Wilbur E.
Hess, Fridley & Hess, Houston.
Jack R. Staples, Fulton, Reid & Co., Cleveland.
Stepp
Bank
&
k
Men's Doubles:
2nd—Malon C. Courts, Courts & Co., Atlanta.
Kimball Valentine, Vance, Sanders & Company,
Trust
Boston.
Scores: 6-1, 6-2
Mixed Doubles:
Anthony E. Tomasic
1st—Jack R. Staples, Fulton, Reid &
Company,
Mrs. Robert W.
Pittsburgh
Co., Cleveland.
Ewing, A. E. Masten & Company, Wheel¬
ing, W. Va.
E.
Youmans
2nd—Malon
Bosworth,
Sullivan
&
C.
Courts, Courts
&
Co., Atlanta.
,
Mrs. A. C.
Co.,
:'1
Denver
timore
.
•
William
"
Co.
Potter, Bacon, Whipple & Co., New York.
Scores: 6-3, 4-6, 6-4,
York; First of Michigan Cor¬
poration,
Burr
Detroit,
and
Coffin
Alan K. Browne
&
Bank of
Incorporated, Boston.
H.
Incorporated, Chicago. Other
names
appearing
this
on
Corporation;
Blyth
&
Frank
adver-
Underwriters
tion, Nashville
and
Distributors of
James G. Couffer
Co.,, Inc.,
B.
J. Van Ingen & Co., Inc.,
New York
A. C. Allyn and Com-
ipany, Incorporated,* Chicago, and
^
John Nuveen & Co.,
Chicago.-
City
Cecil R. Cummings
First
October: Merrill Lynch, Pierce,
Burkholder
Equitable Securities Corpora¬
j tisement were: The First Boston
|New York;
America, N.T. & S.A.,
San Francisco
September: Harris, Hall & Com¬
pany,
of
,
Michigan
U-
Securities
Investment
J
Corpora-
tion, Detroit
-
Fenner & Beane, New York,
..
r
The winner of the annual award
•r;
||or> 1950
f—
wak Ira * Haupt. Se \ Co;;
1—
Carl HL Doerge
>
( Wm.
J.
MEMBERS
-*
•
'Tt
&
Co., Inc.,
y'-)
ESTABLISHED
4
>
'
Cleveland
F. S. Smithers
,
*
Mericka
\
&
zu-.
Research
Advisory Service
and
'a.
A*
~
Co.
1857
'•
-
-r•
v
lNeiv YorkCarbExcltange
.
SHEARSON, HAMMILL S CO.
.
Founded in 1902
NEW
YORK :<
if
HARTFORD
CHICAGO
MONTREAL
DALLAS
•"
HOUSTON
RAILROAD, PUBLIC UTILITY,
INDUSTRIAL AND MUNICIPAL
/.-
;
LOS ANGELES
BEVERLY HILLS
PASADENA
,
BASLE, (Switzerland)
MACON
A MEMPHIS
EyCMAMQE MEMBERSHIPS
Mew Orleans Cotton
Liverpool Cotton Association, Ltd.
Mew york Cocoa
Exchange. Inc.
Los
Mew york
&
Memphis Cotton Exchange
Mew york Cotton
Midwest Stock Cxchange
Commodity Exchange, Inc.
Mew york Curb
Chicago Mercantile Exchange
One Wall Street, New York 5, N. Y.
Mew yorlt Stock Exchange
Chicago Board of Jrade
SECURITIES
•
Mrs. Carl H. Doerge, Wm. J. Mericka & Co., Cleveland.
Paul
C. Meredith Boyce
-
2nd—(Low Net):
Thomas &
Arnold & Crane,
New
Clark, Dodge & Co., New York.
Angeles
Sons,
Miller, Chairman
H. Wilson Arnold
&
Company,;
Benjamin J. Levy, Salomon Bros. & Hutzler, N. Y.
'
City National
First National Bank of Chicago
Trust
2nd—(Low Gross):
Co.,
St. Louis
Albro
York;
Co.,
&
Company, Kansas City
Incorporated, New York; Man¬
ufacturers and Traders Trust Com¬
Mercantile
Ergood, Jr., Stroud & Company, Inc., Phila.
Mrs. William M. Rex,
Cook
Company, Oklahoma City
&
Inc.,
1st—(Low Gross and Ladies Golf Champion):
-■
First National
COMMITTEE
Christensen,
Popper, I. M. Simon & Co., St. Louis.
M.
Philip J. Rhoads
MUNICIPAL SECURITIES
Co.
Waldmann,
cate¬
'
adver¬
&
18 Hole Tournament—Ladies:
Incor¬
during
several of
were
and
are
Respectfully submitted,
Com¬
Co.
Louis
G.
Writer
Handicap Tournament—Men:
2nd—Russell
Mills
Richard Morey
'
court
R.
1st—Elvin K.
'
gories.—Editor.]
names
i
1
and, legisla¬
the
There
year.
municipal
Co., Chi¬
pany of Western New York. Other
l
in
Hole
"Bond
various
to
rendered
importance
Chicago.
the
to
references
enacted
the
cago.
,New
the
of
States ;
the
[Appended
cago, and American National Bank
Trust
Jr.,
Peters,
1st—(Low Net):
A.
.
Chicago;
18
In¬
Frank H. Morse
decisions
Trust
St.
Banker," and Wil¬
Hall,
S.
Newhard,
Court Decisions and Legislation
Chicago;
Co.,
porated, New York City
Andrew
Peters,
New York.
David B. McEIroy
J. P. Morgan &
Lehman
and
-
mem¬
Co., Upton E. Liptrott of
brief
•
to
P.
Denver.
Min¬
2nd—George
Ripley &
corporated, Chicago
Buyer."
Com¬
of
Harriman
The
se¬
Continental Illinois National Bank
and
limited
not
many
judges in the contest,
T.
Bank
neapolis
advertisement
Chicago; City National
pany,
and
Other
this
on
and Savings
National
Bear, Stearns & Co., New York.
E. Christie, Jr. Memorial—Men:
1st—Gerald
Walter E. Lang
as
he wishes.
as
the "American
pearing
First
especially for
are
&
Robert
Carl J. Kail
Co.>
mus
Bank, Chicago.
1st—V. Theodore Low,
2nd—William D. Kerr, Bacon, Whipple & Co., Chicago.
3rd—Allen C. DuBois, Wertheim & Co., New York.
Company,
not
They
.
June: Harris Trust
Investment Bankers Association of Canada Trophy—Men:
William C. Jackson, Jr;
First Southwest
con¬
Cahn, Jr., Henry Herrman & Co., New
York.
Scott, Horner & Mason, Inc.,
sist of Robert W. Fisher of Dore-
&
B. Horner
Lynchburg
lected by the "Bond Buyer," con¬
New York.
;/
Edwin
to all.
The
New York.
.
1st—Mrs. Cornelius Shields, Shields & Co., New York.
Each contestant may
advertisements
bers of
April: R.
Kicker's Handicap—Ladies:
Company of Georgia,
Atlanta
form.
need
submit for consideration
Braun, Bosworth & Company, and
•
Lewis, Bear, Stearns & Co., New York.
O. Alden, Jr., O'Neal, Alden & Company, Inc.,
Louisville.
Trust
the
other publication.
any
this contest.
Prescott
&
2nd—William
Dallas
are
Burge
Inc., Portland,
published in the "Bond
entries
Ball,
same
advertisement
an
have been
Co.,
Co.;
Co.;
of
one
qualify for entry in this
It may be prepared
&
1st—Salim L.
Co.,
on
It will be recalled that in order
Jones
McDonald
&
2nd—Mrs. William M.
Buyer"
Company;
GOLF
Alden H. Little Trophy—Men:
Oreg.
determining factors of the awards,
Corporation;
Co.;
Corporation,
Lloyd B. Hatcher
Co.; Hayden, Miller & Co.; T. H.
Co.;
con¬
somewhat broadened basis with
March: Cleveland Dealer Group
—comprising Fahey, Clark & Co.;
At 1952 Investment Bankers Assn. Convention
Durgin
Higginson
Robert M. Hall
that the
understand
which will be in the
Reid
Lee
Golf and Tennis Tournament Winners
awarded $100
was
Buyer" contemplates
results
New York.
The First Cleveland
Chester R.
suitably
&
& Co.,
r
Boston
a
&
in
award
an
Dougherty
A. Webster
Dougherty & Co.,
Philadelphia
inscribed and the writer of the ad
"Bond
Company, Incorporated, Toledo.
&
Chi-"
tinuance of this contest in 1953
January:
A. Webster
The
1951,
Company,
Each received
cago.
The in each instance
Toledo.]
of this year are:
Fulton,
York,
'
winner
Montreal Curb Exchange
Mew york Produce
Exchange
Angeles Stock Exchange
Coffee
Exchange
Sugar Exchange, 7nc.
Exchange
Exchange
...
Financial Chronicle
The Commercial and
Thursday, December 18,1952
-...
(2362)
£8
And Its Prospects
her
in
deficit
population and about 10% for
national product.
But of course
Canada, except in her area and
her
international trade, is still
of
current balance
payments. This pattern was still
apparent in 1950 and the first
half of
1951 when Canada had
current account defi¬
relatively a small country, with
cits which were more than bal¬
a
population only one-eleventh
anced by capital imports, though
of yours and an output of less
it is worth
noting that even in
than one-fifteenth.
these years about five-sixths of
I hope that in what I have said
investment outlays were financed
so far I have been able to convey
from
domestic sources.
During
/something
of the
variety and
the past 12 or 18 months, how¬
magnitude
of
the
investment
ever, Canadians have apparently
projects now being carried out
been able to finance themselves
in Canada. Many of these devel¬
opments are
obviously still in entirely out of their own re¬
sources on an over-all basis, with¬
their infancy; it will be several
out these being supplemented by
years before the full implications
of western oil, Labrador iron ore, a net capital inflow.
It
is
perhaps surprising that
the St. Lawrence seaway, Kitimat
aluminum and Beaverlodge uran¬ during these months Canada has
large
very
is
already
tutes
in
very
in Canada consti¬
important increase
effort without
free
a
world's
on
supply
support
duction
a
very
this
quick
past periods of
this pattern
future.
expan¬
capital
large
to
see
reassert itself in the.
there
That
to
no
has
been
net inflow of capital
little
-or
during the
into
Canada may be a
there
and
in
owned
restrictions
in this country, or of
companies
purchase of Canadian corpo¬
the
securities.
rate
Canadians
most informed
good savers and
are
they risk large sums each year on
as
which
it is hard
Canada
equity money in
the scale required; in
on
undertaken r by
companies
which
or groups
able
are
to
.
in
have
they
some
is
in
to
develop,
a
tackle
inflow
of
easy:
of
the
about
Canada
fundamental
her
of
policies.
enough
annual
billion.
Owed U.
Canada
,
You'll find
public
of
Canada's
detailed
you a
economic
have said
fulfillment in
I
S.
Government would
Canadian
the
have
done
so
in
of
case
central
economic
maintain
first
purpose
policy
a
condition.
A
of Canadian
has
been
framework of free
to
en¬
war;
as
been'ap¬
the
partly
an
adequate program of so¬
cial welfare. In the main economic
re¬
is
government
not
government di¬
government
negative or unimportant.
has sought, and may be
placed
restriction of
to
measures
development
•
was
upon
less direct
fiscal and monetary methods, such
down
or
surveys
developments,
of industrial and
write to
any
branches,
of
resulting substantial budget¬
surpluses. Indeed, tjiere have
budgetary surpluses every
been
our
Canadian
rected. Yet the role of
year
since 1946, and the national
is
debt
has been reduced since then
the
dollar
United
balances
States,
owned
in
connection
or
Office
with
relied
net
U.
S.-Canadian
-
nor
upon
to
continue
to create conditions in
nomic
development
to
which
can
by nearly $2 V2 billion.
This
seek,
eco¬
proceed
program,
taxation
not
particularly
Montreal
our
UNITED
First
San
Bank
STATES OFFICES:
New York, (J4 Wall St.
Chicago, 27 S. La Salle St.
Francisco, 83:» California St.
v
over
$2,000,000,000
—
575
branches
spanning
Canada
Sav ard, Hodgson & Co., inc.
Members of The Investment Dealers'
Association
of Canada
Greenshields & Co
Greenshields & Co Inc
276 St. James Street
West,
Members Montreal Stock
Underwriters and Distributors
MONTREAL
SHERBROOKE
—
TROIS-RIVIERES
Savard
Members:
—
Exchange
Exchange
Montreal Curb Market
Canadian Security Issues
CHICOUTIMI
Hart
&
Montreal Stock
Toronto Stock
The Toronto Stock
507 Place d'Armes,
Montreal
Exchange
Exchange
Montreal Curb* Market
Head Office:
276 St. James St.
Bianch
62
William
West, Montreal
Offices:
'
Ottawa
St., New York City, HAnover 2-6625
■.
QUEBEC
—
TROIS-RIVIERES
CHICOUTIMI
—
ST.
—
SHERBROOKE
JOHNS, P. Q.
/■
Quebec
Sherbrooke
the
naturally
uniformly popular. Are
part of it, has
been
in
or
the
not
Canada
partly
balance- of
commercial credit outstanding in
changes
regu¬
Canada's
up
Resources
post-
non-essential construction,
sharp increases in taxes
sponsored,
in
com¬
Head
or
nt MutiM cutujun
(.
credit',
two
with
ary
consumer
slow
Montreal.
!
all-out
liance
A
the
with
Canadian
Bank
IJ.
.
securities, partly the reduction of
clear analy*
mercial conditions. To receive this
larly,
in Canada to
post-Korea upsurge
pressure
the
combat
patriation of Canadian government
monthly Business Review
our
help. It brings
great
sis
her
;;
in the United' States,: there
As
was
United
a
consumer
dition may be in order.
flow
—
most,
as
sharp rise in
enlarged
enormously
defense program.
and
States
subjected,
was
liance,
proximately balanced by the out¬
of short-term capital to the
CANADA ?
on
to
but that kind of war did not
come
and the pressure for price
controls was resisted. Instead, re¬
S.
the
capital from
has
$23
some
addition
in
countries were, to a
inventories and to
p o n e
States
of
rate
1950,
rapidly rising external prices,.
terprise and competition, coupled
United
the
In
brief reference to the second con¬
market for
year or so,
long-term
national product is currently
the
at
at.
the
the
economic
product concerned/
During the past
Keeping up-to-date
is
soundness
Capital Inflow Offset by Reduced
Short-Term Balances
gross
and
year
a
investment
number of cases
a
exports
valued
now
conditions are- met .; in prices by applying.direct price
existence ;"of favorable controls. Canada/ had made a sue-*
opportunities, and cess of price control during the
secondly, confidence in the finan¬ last war, and some thought that
cial integrity of Canada and the it should be tried again; Probably
first,
investing corporation has been
which has an interest in; and
able
the
to
trade,
imports, is
$8 billion
plus
necessary,
of these activities in Canada.
Moreover,
the
able
been
period? A general
in Canada two
postwar
answer
corporations than Canada,
is not surprising that only
great
external
Canadian
countries of the North Atlantic al¬
sought out Canada
volume throughout
capital
increasing
the
Obviously
the United States has; many more
and it
'
Why has the United States long-
term
them
finance
ways.
Canadian prices are
sensitive to world influences;*.
prices.
very
has
afield.
ic<
substantial
of companies
very
variety of
a
,
as in the United States,
projects usually have' to be
these
in
referred,
have
I
to get
in
you
as
by the world-wide upsurge
were,
dividends of
is the case with many of
to
outbreak,,
affected,
were
/
produced substantial;
spending based on fears of short¬
an intangible as well
ages and further price increases..
as
a
tangible sort. My hope is The
; heavy
investment program
not only that this mutually profit¬
received new impetus, particularly
able relationship will continue in
in industries producing materials
the future, but that conditions will
of strategicimportance for
de¬
be such that American capital will
fense. In addition Canada, along
be
tempted to venture further with the United States and other
Canada
ventures involved
in development of basic resources.
But where the projects are very
those
people would agree
investment in
American
that
the long-range
large,
pay¬
be
must
ways
Canadians
*
Canada
Inflation Control in
Soon after the Korean
over
and
trade
on
found for
American savings to be invested
fruitfully in the development of
other parts of the world. Looking
back over the years I think that
ment,
parent
by
controlled
or
proliferation of direct
and
nance
Most of this capital
inflow takes the form either of
direct
investment in
enterprises
years.
many
weaker
the
on
without the mainte¬
members and
probably have to wait for
would
free
the
intolerable
putting
strains
economic
developments
these
of
future
without
vive
of such American
absence
the
investment
schemes in
good augury for
world. If the free world is to sur¬
be little doubt that
can
economic
the
Alberta oil and Labrador ore—
as
productive
range
techni¬
such things
American
with
know-how,
cal-
capital,
venture
of
sums
combined
one
provide part of the
necessary savings, and has run a
imports
alarming
least
the
in
be
rapid economic growth in Canada.
sion Canada has relied on
activity
investment
heavy
there has usually been a current
account deficit and it would not
I now turn to the part of Amer¬
Xn
indicated, in past periods
have
I
of
stimulating
foreign
or
running wild. The early fears that
a
world-wide
depression might
follow
the
second
World
War
playing a most vital part in stimu- 1
same
rate as American investors
lating Canadian development/ It'
unfounded. .. Throughout
are
putting capital into new en¬ proved
may
not
be' generally known,
the postwar period, and particu¬
.
however, that there is at present terprises in Canada.
larly in the past two years, in
The willingness of American in¬
a
substantial two-way flow of
Canada as In. the United States,
capital between the United States vestors to put their savings and
inflation has been more of a prob¬
and
Canada. On theVone hand, know-how against the risks and
lem than deflation.
American
investors
are
putting problems of these great long-
sub¬ Canada,
accomplished without the artifi¬
protection of either exchange
restrictions or import quotas. As
high level of pro¬
in
pay¬
cial
armaments.
capital
am¬
exchange value of the Canadian
dollar.' Moreover, this has been
its armed forces and
as on
of
the
in
increase
stantial
strategic materials and industrial
capacity.
The
strength of the
western
world
depends just as
much
on
the ready availability
of
the
resources
necessary
to
balance
indeed with a
and
ments,
of
an
basic devel¬
large scale defense
incurring a deficit
of
current
the
in
both
carry
opment and a
the
of
going
the
ican
to
program
developments
total
sum
r*ow
able
bitious
the
however;
clear,
been
thing
One
assessed.
canvbe
ium
have steadily either without stalling
Canadians
short,
paying off short-term obliga¬
tions in this country at about ine
been
mean
Canada's Development
In
trade.
past year or so does not, of course,
that American capital is not
23
Continued from page
Toronto
.Volume 176
Number 5178
the Point Four Program and the cial rate for the Canadian dollar
popular? Yet it aid." We also recognize that the
Colombo Plan of British Common¬ because of the uncertainties in¬
reasonably effective economic strength of the nations
herent in fixing a new rate.
free
world is, in our wealth countries.' ~
brake on prices without reducing of the
The results, I expect, are famil¬
the flexibility of the economy. For dangerous era, the foundation of
Apart from these forms of aid,
its military power and political which are in part investments in iar to you. Without any official
a time prices rose somewhat more
quickly in Canada than they did security. In North America there our own security, our aim now rate of exchange, the market rate
here in the United States after is developing a better public un¬ must surely be to encourage the has been left to the free play of
price controls were reintroduced. derstanding of the responsibilities doing of what still has to be done demand and supply. The Canadian
During the present year, however, of the good debtor and the good to bring the economies of our dollar promptly demonstrated that
Both
must
play their friends and allies in Western Eu¬ it was undervalued at the previ¬
the
Canadian
cost-of-living has creditor.
high
taxes
provided
ever
a
while the
to its
declined considerably,
U.
level.
highest
still
is
index
S.
to
mid-1950
From
parts.
proper
close
this
In
dual
the
On
role.
and the Sterling Area into a
rope
has
Canada
matter
one
sufficiently
a
to
balance
safe
official
ous
10%.
en¬
able them to remove the wasteful
hand,
39
(2363)
Financial Chronicle
The Commercial and
.
of
rate
a
discount of
last January the two
were
being exchanged at
By
dollars
Canadian
im¬
exceeded
exports
ports by $460 million—a net re¬
versal
the
between
of
two years
$800 million. This obviously
greatly affected both the supply
some
of, and the demand for,
Canadian
dollars abroad.
at
Just
economy
rium
of
at
state of equilib¬
a
high level. The inflow
a
capital
outside is about
from
capital
outflow of
with the
even
Canadian
the
present
is in
international trade parity. By last March the Cana¬ from Canada. In the balance of
dex is about the same as in the a large volume of foreign invest¬ caused by import and payments dian dollar, surprisingly, climbed
payments on current account the
United
States
index,
indicating ment; total non-resident invest¬ restrictions, and hence to restore to a premium over the U. S. dol¬
that both countries have achieved ments in Canada are valued at the
convertibility
of currencies lar, a premium which reached a so-called invisible items of inter¬
the same over-all result by dif¬ some $9.4 billion, of which over and multilateral trading. That this level of 4% by the late summer. est, dividends, and so on, are prob¬
ferent means.
$7.2 billion are held in the United should be accomplished is, I am It has fallen a little since then ably involving net Canadian pay¬
States. On the other hand, Canada sure, profoundly in the interest of
and now stands at about 2l/2 cents. ments roughly equal to the net
Canada's Dependence on
is, on a much smaller scale, a net both the United States and Can¬
Foreign Markets
The Canadian Minister of Fi¬ receipts from
commodity trade.
creditor of several countries to ada. How to achieve it is now un¬
rise in the Canadian
date the
in¬
the recipient of
Canada has been
blockages
good reason for seeking .which substantial loans were
a
flexible and dy¬ made during the period of post¬
namic economy in Canada is the war reconstruction.
Thus, it be¬
A
dependence
heavy
external
on
Care must be taken that
markets.
price of export
goods are such that they can com¬
pete effectively, and that home in¬
dustries can stand up to import
the
quality
and
competition.
I
trade
of
that in the field
say
in most other
and Americans
similar objectives.
policy,
as
fields,'"Canadians
pursuing
are
Trade relations between the U. S.
and
Canada
still
is
good—but there
for
improvement.
are
room
Each
country has for1 a long time
been
the; other's best customer.
them has grown
Trade' between
about
times
seven
in
times
three
in
and
value
be¬
since
volume
at
Washington,-1 h
the
blasts in
through
or
in which the Canadian
is not
this larger problem.
has
Canada
cold
some
the postwar years
irrelevant to
They can repay us only in
e
weathered
economy
goods and services, whether sup¬
direct
present strength of the Ca¬
in the
date
The same
true of the overseas countries
which we and you have made
plied
in
forum.
The way
exchange
her
had
crises, and in 1947 saw her central
multi¬
monetary
rapidly
reserves
pride
undue
takes
alarmed
over-all. export surplus.
loans.
who
duly
received, Canada must develop an,
to
those
nadian dollar, nor
investments
and
of
problems will
certainly be discussed in a broader
a
loans
the
repay
recently said: "I am not one
nance
new
established
is
good creditor. In
order to service and ultimately to
as
the
When
Commonwealth.
Administration
debtor and
in
meeting
a
governments of the
London of the
hooves Canada to act both as a good
is
glad to
am
discussion
der
very
maintain
to
to
run¬
United
been
in
an
some
at
external
States
unusual
value
of
dollar."
It
more
has
pleasant one,
a
dollar
for Canadians to find their
worth
our
experience, and
measure
than
mand.
but this
yours,
,
this
-For
fiscal
year
budgetary
future receipts should at least equal and
some
below equality with
dollar dipped
the
if
high and so is consumer de¬
very
would I be un¬
production are
and
Employment
expenditures. I do
perhaps exceed
not
suppose
that,
in a world as
troubled and dangerous as
which
rium
we
live, such
steadily maintained;
be
can
great convul-,
barring some
but,
that in
equilib¬
an
sion, the foundations of the econ¬
It is a very ning away. Exchange control, im¬
in both your posed' of necessity at the begin¬ has its inconveniences, especially omy are solid enough both to with¬
which, may
country and mine there is at last ning of the war, had to be con¬ for exporters, into which I need stand any tremors
developing a fairly general public, tinued in one form or another not
occur
.and to support continued
go.
understanding of the role of the until 1950. For a period from 1947
The chief reason for the present expansion.
T
good creditor. In this process of on the Canadian Government had
; Although it appeared to many
public education business and fi¬ to resort to the distasteful process strength of Canadian currency
nancial associations can play, and of restricting imports and stiffen¬ arises from recent changes in the contemporaries that Great Britain
settlements.
lateral
that
sign
hopeful
important ing exchange controls in order to Canadian balance of trade. In the was making a poor bargain in 1763
prevent the disappearance of the
in keeping Canada and returning'
year ending in August, 1951, Ca¬
central reserves.
now
exist.
Canadians are
con¬
The biggest international eco¬
nadian imports exceeded exports Guadeloupe to France, in retro¬
These measures worked, by
scious^ however, that Americans nomic problem of today is how to
still do not buy as much from complete the task of substituting good management perhaps not un¬ by $340 million. In the following spect on the whole it does not
them as they do from you, and trade for aid. I
emphasize that assisted by goodluck. The drain on year, ending last August, however, seem to have been such a bad deal.
fore the
stacles
war.
trade
to
this
that
wish
ready
admit
to
factured
No very serious ob¬
goods
in
raw
materials
country
was
as
Canadian manu¬
and agricultural
products as Canadian metals and
other raw materials.
To
tion
both
of
our
countries the posi¬
customers is
overseas
our
of critical importance.
ity
buying
continue
to
which they need and
North
is
Their abil¬
goods
which
we
in
America wish to sell them
limited to the dollars they ob¬
tain by trade, aid
All
vestments.
learned
our
fundamental
slogan
that
and loans or in¬
of
lesson,
us,
having
recognize the
truth of the current
"trade is better than
playing,
are
very
a
part/
in
completion
the
is
this
which
shall,
task,
a
think, however, that
been made. I
we
of
great progress has
very
should, want some
and
special forms of aid to continue.
Military aid by the United States
also
and
go
sure,
Canada
by
until
on
will,
confidence that we and
in
ners
have
ance
strength
and
built
together
of
our
armaments
Economic aid I
our
.
am
up
the
collective forces
to
a
level.
safer
would expect also
tech¬
to continue in such forms as
nical assistance to underdeveloped
countries,
through
methods
like
a
com¬
difficulties
The.
height.
checked,
and the
to
climbed
soon
surmounted
thus
were
external,
employment' and
development continued
production,
economic
at
reversed,
was
fortable
W ood,
high levels inside Canada.
The
part¬
Alli¬
Atlantic
North
the
I
feel greater
we
flow
reserves
for
promptly
was
reserves
the
import
rapidly
ished
restrictions
relaxed
several
and
were
ago.
years
were
abol¬
Gundy & Co., Inc,
14 Wall
Street, New York 5
Not long
after their final disappearance
the
aided
by
Canadian
Government,
the
inflow
large
this
country,
did
capital
of
away
Chicago 3
105 West Adams Street,
.
from
with
ex¬
change control. Furthermore, they
decided
not
to
maintain
an
offi¬
Affiliated with
!• f
Wood, Gundy & Company
•>
Limited
Ottawa
Quebec
STOCKS
BONDS
•
Calgary
London, Ont.
•
Kitchener
1
Victoria
London, Ehg.
*
Halifax
'
Vancouver
Winnipeg
Hamilton
•
Edmonton
Regina
•
•
Montreal
Toronto
<
:
,
mZfrMi
m mam jioa
■Markets
;
vmmm
maintained in all classes of Canadian external
CANADIAN
and internal bond issues,.
cxtmr
.Stock orders executed
Exchanges,
or
net New York
markets quoted
on
PRIVATE
DIRECT
NEW
YORK,
TORONTO,
;
WIRES
request.
NY
VANtONVt* STOCK
nmmt
CONNECT OUR
TELETYPE
'
1KNAN01
GOVERNMENT
mm
MUNICIPAL
-
,
WINNIPEG STOCK
exchange
m00s! jaw
CORPORATION
MONTREAL & OTTAWA OFFICES
BELL SYSTEM
*a««t
CA10AKY STOCK
saskatoon
.
t
mmt*i
SECURITIES
the Montreal and Toronto Stock
on
stock
:
kcnakgi
\ mom
mum own
uethlrfogt
1-702-3
EXCHANGE
portage u
prairie
MINES, OIL, GRAIN :
CANADIAN C0NM0O
exchange inc.
COMMODITIES
swiff current
Dqmimioh Securities ©rporatiojt
Philadelphia
Associate
Ottawa
Halifax
New
York
Curb Exchange
kingston
T oronto
Montreal
London, Eng.
Calgary
Member
M
xek0ra
40
EXCHANGE
i
Telephone
PLACE, NEW YORK
WHitehall 4-8161
;
5
1
;
*
INVESTMENT MMttS
association
James Richardson ^ Sons
Winnipeg
Vancouver
Victoria
1
WINNIPEG,.
I
NKHffttAl
Of CANAM
investment bankers
1857
ESTABLISHED
toronto
association
CANADA
Of america
A
CHAIN
OF
CONNECTED
OFFICES
FROM
MONTREAL
OUR
OWN
DIRECT
IY
TO
VICTORIA
PRIVATE
WIRES
.
The Commercial and Financial Chronicle.,
4#
the
whether
Continued from, page
33
coming
as
year
Foreign
well rise in the
may
of
result
a
As
a
greater availability ol steel. How¬
ever,
in
the
expendi¬
capital
offset
to
tures
of
most
are
doubt
vital to
no
Canadian econ¬
health of the
at
.
,
"obtaining with a view to establishing evivaluable se- dence of criminality under Canacurities by false pretenses or by dian law. If the evidence is sufdefrauding the public, or any per- ficient, the fugitive is surrendered,
son
by deceit or falsehood, or Now that the Canadian Criminal
property, money
or
fraudulent
"making
nection
points out very clearly the
of government bond yields, intended
which
rose
slightly during the public."
low
crimes to
extraditable
other
be¬
reproduced
tabulation
The
is
trade
Canada
from
Bond and Stock Markets
Trade
you
foreign
aware,
purchases
can
current levels..
Canada Not Oversold in U. S.!
construction
countries
maintain
overseas
above
mentioned
their
trend
means"
and
of the mails in
use
schemes
with
to deceive
devised
or
clauses with respect to
defraud the
or
industries
such
developments
Lawrence
River
which
and
while
there
tures
the
will
be
that
Canada's
will
have
economic
security sales,
we
which
with the United States. This had to
investments
for
period
long
a
from
come
195
all
are
action
taken
familiar
with
moving
Foreign
all
Exchange
are covered by
those classes of stocks which were
Canadian
that the crime with which
beyond their relative
merit. The most striking example
tive
time, about 96 cents U. S., had, at
iate
January,
1952,
moved
to
of course,
tions,
far
selling
reflected
is
which
months
three
in
declined
have
the
sharply
just as
We
it
that
feel
not
do
as
alleged
merits
relative
fugi-
is
to
have
that
worth,
dollar,
at
of
her
national
nally,
that
tinues
to
large proportion
a
income; and,
outside
have
government
capital
confidence
policy
of
fi¬
con¬
against a
deficit of $339 million the previous
and
year, the reason for this improve¬
just
equal terms.
deficit
In 1951 Canada's gross
product, the value of
produced,
billion—an
17%
United
States
is
gradually to a high of $1.0431 last
13th.
It has fluctuated
August
this
around
figure until late Oc-
tradited from Canada, he must be
brought before a Canadian Court
$1,015. The strength in the Cana-
the
ex-
Long-Term Government Bond Yields
ANNUAL
of
a person can
»Canada
AVERAGE:
1938
—
tUnited States
3.35
2.61
tUnited Kingdom
$490 million. The value of
1950 and 80% over 1945. In terms
overseas
Of constant
nearly 55% and two-thirds of this
about
was
double
that
dollars,
5.6%
of
the
1939,
increase
and
1950
over
It
has
in
was
the
increased
been
increased
J exports
main
/sales
3.28
2.38
3.45
1940
3.39
2.21
3.00
1941
3.26
1.98
2.92
3.17
2.24
2.86
1943
3.17
2.15
1944
3.10
2.49
pub¬
1945
2.98
2.37
2.95
licity given by American publica¬
1946
2.63
2.15
2.52
and indus¬
1947
2.59
2.20
2.61
1948
2.93
2.41
2.82
1949
2.85
2.24
2.93
2.77
2.24
3.19
3.21
2.58
3.49
2.72
2.71
4.10
4.17
in
time
of
the
by
attributable
in
the
to
United
to
as
tions to
Officially estimated that the
reach
Over
this
product
$22.5
Kingdom,
gross
estimate
or
from
will
It
indices
all
certainly
Brazil
South
and
America.
will
year
billion—a rise of 6%
1951—and
maintained
this
commerce
our
is, therefore, readily
pand
and
trade,
possibly exceeded.
seen
how
it is for Canada to
resources.
We
American
that
appreciate
as
diversify iher
export
it is questionable
as
to
been
have
Bankers
Investment
an
such
is
of
member
.
listed
being
United
in
Canada
We
companies
States
securities.,
wish
also
fSpence/&$o. Limited
are
<
the
.
doing
AND
CORPORATION
business
KING
ST.
WEST
-
2.55
3.62
Standard
Canada
4.45
4.26
4.12
'v.*
".-
7-
'
.1945
,
3%
*
_■>.
on
3% 1959/62
Tl_
3%
1961/66
1938-1941
_____________________
2%% Mar. 15, 1956/60
2%%
1942-1943
is
Mar. 15, 1956/58
2%% Dec. 15, 1963/68
1944-present
is
as
Cana¬
:
L
^United Kingdom-^
r3%
1939-1944
3% Apr. 15, 1959/69
1945-present
Source:
Bank
of
July 15, 1954/58
Canada, Statistical Summary.
-
General
Dy¬
namics during the past year. It is
to be hoped that as the economy
\
American
and
grows
continue
T ORONTO
to
investors
make investments
in
shares, members of the In¬
vestment Fraternity will point out
our
MONTREAL
KITCHENER
WINNIPEG
Capital For
great difference between your
one
markets
and
I
and
refer
market
our
of
those
the
to
Canada—
narrowness
Canadian
of
with
compared
as
It is not, and will not be
possible for some time in a rapidly
declining market, to dispose of
Industry
yours.
shares at fractional
changes,
any
than1 it will be possible, in a
more
rising
market,
to
them—in other words, fluctuations
are bound to be of a much
sharper
McLeod,Young,Weir & Company
LIMITED
•
"
nature,
sale
as
a
sizable
affect prices
can
-
in
our
markets.
purchase
or
appreciably
'
Members of The Investment Dealers' Association of Canada
Extradition
In
DEALERS IN ALL
June
ment
CANADIAN SECURITIES
Direct
private
wire to
The First Boston
Montreal and
Corporation, New York
Stock orders executed
on
all
Exchanges
Canada
50
Office
Ottawa
■■
Wholesale groceries
Grain elevators
•
•
In all these industries there
are representa¬
companies whose issues of
securities have been originated, underwrit¬
ten and distributed by Gairdner & Company
tive
Canadian
Convention
and
the
be¬
Limited, Toronto.
7
;
Private
^
United
■
enquiries
Canada
as
are
to -financing in •*?,„
invited.
-
•
vention had been
previously rati¬
by the U. S. Senate.
The Supplementary Convention
to
the
correspond
with
Company Inc.
Gairdner
existing extradition
40
those
Wall
Street, New York 5
WHitehall 4-5336
sections of the Canadian Criminal
Code which deal with the fraudu¬
-'Branch
Hamilton
Offices
London
I
-
Winnipeg
Correspondents in London, England
confectionery, dairies
>
Heavy industry,
> foundries, machinery
States for extradition of Canadian
treaty
King Street Westr Toronto, Canada
5
Montreal
Hood
>
citizens incase of fraud. The Con¬
amended
■
•
Canadian -Parlia¬
Textiles
Department Stores
"
fied
'
Treaty
Western- Oils
■;
Sugar Refining
Pulp and Paper
Biscuits, bread,
completed ratification of the
^Supplementary
tween
•
the
Utilities
purchase,
so
lent
New York
sale
of
securities.
In
turn,
these sections have corresponding
clauses
in
U.
S. Federal
,
Perpetuals
Brands, General Motors,
and
;
4.47
2.65
: 2.68
better op-1
a
the listing
Johns-Manville
25
2.55
.
-Exchanges of the shares of
dian
BONDS
in
^
;
1946-present
that
Canada
portunity to buy shares of some
American companies
witnessed by
3.49/.
4.29
4.21
4.29
r
fUnited States—
of the larger
GOVERNMENT,* MUNIC1PAL
2.60
2.53
3.61'
1938-1944
;
record
in
being given
2.70
3.57
^Canada—
being reciprocated and that Cana¬
dians
_
September
solely in
;
•
to
interest
American
—
August
New
in
invest
to
-
.
July
York and the formation of several
investment
2.88
securities
trading
for
-
3.46
May
New York
Canadian
3.52
June
firms; the increase in the
.
3.52;
April
Further evidence
the
opening up of
of
3.49;
3.50
March
us.
2.89
1
1952:
February
growth.
by
AVERAGE
January
to
Canada's
.
MONTHLY
excellent and valuable
inquiries
regarding
This is evi¬
denced
by
an
ever
increasing
number of requests from U.
S.
members
for information
being
giving
service
number
ex¬
were
the
of
Canadian branches by
necessary
be
result
__
1942
try and to our wealth of natural
received
national
speculations
a
1939
doubt some
No
come.
unwise
fostered
countries has
overseas
astonishingly from $45 mil¬
lion to
over
the
slightly at $326 million, sur¬
risen
$21.2
to
rose
disturbing. Although the
with
plus with
and
goods
increase of
down
national
million
$164
is
ment
Gross National Product
services
of
plus
the
in
the
that
tober or early November, when it
declined rather sharply to about
Thus, before
be
result
the
parity. From that point it climbed
been
tive is found.
of these reports to discuss
purpose
a
must be a crime
both in the country in which it is
charged
committed
past and in the country where the fugi-
shares,
oil
the
by
is
with
1950
continue to be
the
Canadian
the
by
Government last December in re-
Control
the
overseas,
Exchange Control
You
Canada Extradition Treaty, states
any class
particularly
the Sterling Area, where dollar of security but rather to point out
shortages are a continuing prob¬ that, fundamentally, whether it
be the oil development or the nat¬
lem.
gas
development
or
any
While for the first six months ural
of 1952 Canada had a trading sur¬ other, their value will be proven
immigration; and that her capital
be
which is incorporated in the U. S.-
accounts
her
balance
to
should
satisfied,
the American market. The excep¬
Nonetheless, the trading they advanced in the previous 12
months.
Speculation,
of course,
deficit was so large that Canada
had a great deal to do with this.
still
needed
$400
million with
expanding policy through
an
the
from
fraudulent
American de-
any
extradition
for
mands
largely
final
last year.
develop¬
continue, provided
by capital inflow—
United States.
Capital funds received from the
States
were
about $560
million
but
doubt
This, however, was more
than financed
be
much to
little
is
net
a
current account of $524
on
mainly
during the past year
There
ment
deficit
million.
with
1951
ended
Canada
reduc¬
some
two, there is still
done.
position.
huge capital expendi¬
made
of
23%
earn
now
trade
Bersimis
project in Eastern
many
others about
has
been
said, and
little
tion in
Exports
omy.
as
Seaways,
hydro
Quebec
iron,
as
S. Statutes and the
Code, the U.
extradition treaty have analogous
con-
The steps that have been taken
quarter of 1951 and remained
to make both the Canadian Crim¬
steady until July of this
the nation's income and Canada quite
steel, aircraft and shipbuilding,
rise inal Code and the extradition
which
are
rapidly being com¬ is the world's fourth largest trad¬ year and then started to
treaty correspond with American
again.
pleted, there are other industries ing nation and the world's largest
The
Canadian
stock
market, law, will allay, to some extent,
which still have a great deal to do. on a per capita basis. It is, there¬
with one or two exceptions, has objections to the principle of douThere are many new, large scale fore, important to take a hard look
criminality.
This
principle,
followed the general pattern of ble
such
the
St. at the country's current
or
Thursday, December 18,1952
.
(2364)
Statutes.
The new clauses have extended
Toronto
Hamilton
Montreal
Kingston
•
Quebec City
Kitchener-
Calgary
London
■
Volume 176
Number 5178 ;
•
The Commercial and Financial Chronicle
.*.
(2365)
i
dian dollar
result of
was a
for balancing its budget and while
heavy
a
coming from abroad,; particularly
the surplus for the current fiscal, from the United States. ,,: v:
The
Canadian's
reluctance
to
more
recently, due to a surplus year will be substantially reduced
on
Trading Account. -Canadian from the huge surplus of a year take risks, vis a vis his American
Government holdings of gold and ago, it is indicative that the fi¬ neighbor, is usually, explained by
ll. S. Dollars have risen steadily nancial integrity of the country the Canadian temperament which,
from $1.61 billion in September, continues. Indications are that in it is said, tends to caution and
1951 to $1.86 billion in September the
next Federal Budget, there conservatism. However, one should
inflow" of
net
this
of
the
At
year.
Urading
and,
capital'funds
will be tax reductions of a reasonable amount,
time,
same
current account, which
a
deficit in
1951, has
on
recorded
been running at a
substantial
plus during the current year.
Capital Investment
sur-
Capital expenditures since the
have been
war
with another
year
write
the
down
19.7%. In 1951 more than $4.5
billion or 21.6% of gross national
sur-
was
product
with
result
the
the
new
this
comparable
the present fiscal year
will
by industries whose activities are
closely related to the defense effort
and
the
development
of
Canadian
Government
spend approximately $4.5
strategic resources. Chemicals will
lion. This reflects the increasing increase 129%, non-ferrous metals
impact of Canada's rearmament 90%, iron and steel 62%, petroprogram,
with defense outlays
counting
for
almost
ac-
leum and coal 60%, rubber 52%,
the
of
40%
railways and water transport 32%,
total government expenditures.
In
mand
for
goods,
the
elim-
or
tax
such
on
electrical
radios,
appliances,
and
and
months
cars
subsequent
the
proven
efficacy of this
action.
In
the
previous
removal
all
..
with
consumers'
a
as
result
siderable revival. The increase
in
the sale of durable goods over the
il_
r
•
it.-
_
rAnf,
months of the previous year
has been substantial and all other
have
lines
ment,
registered
although
taRevenues1?or
-
of 1951 had
in
the
unquestionably
a
book value of $9.4
billion—up 9% from 1940. Of this
76%
was
held
in
the
States
and
19%
in
the
amount,
40%
credit restrictions and
-
be down.
Foreign investment at the end
in
year
a
improve-
less
spec-
to date
permit
year
will
and
Oil
The
Canada to continue its reputation
from
that
of
the
previous
did not have that
spectacular character.
year,
glamour
to
Tr
.
,
„
bulk
.
of
from
coming
„OTir
now
money
J
Canadian
Canada
lion
has
now
barrels
of
about
proven
vested in
new
1.5
bil¬
In
of
the
venture
raised
East
will
in
•*»
is
before
200,000 barrels.
oil
products line
long.
Expansion in refining
lion
natural
of
case
markets
the
in
the
and
Fibres
and
and
Wood
and
Iron and
of
sums
will
needed
be
properly.1
As
+1952
*315.3
74.1
*86.6
*130.0
*57.7
364.5
483.4
227.0
33.7
86.3
100.4
137.0
83.8
891.6
980.2
1,332.5
942.0
42.1
215.5
290.9
182.4
535.3
611.8
684.6
401.7
43.7
130.7
158.1
191.9
119.6:
54.1
158.1
172.1
296.4
266.9
751.1
Miscellaneous
174.7
132.8
2,761.2
3,174.2
4,096.9
2,596.4
products
products
1949-
1939
■'
Wood
and
and
1951
$1952
773.0
Agric. & vegetable products 220.1
Animals and products
131.8
Fibres
I960
*644.0
*891.6
*455.9 i
*144.8'
338.4
*360.0
*350.4
14.4
25.2
30.0
37.2
17.6
242.5
875.3
1,113.4
1,399.2
694.6
textiles
paper
Iron and its products
63.1
292.9
250.8
342.0
228.3
182.9
426.6
457.0
570.0
358.1
Nonmetallic minerals
29.3
73.7
103.0
130.8
72.1
Chemicals & allied products
Miscellaneous products
24.3
70.7
99.4
132.0
64.5
16.5
117.1
61.2
61.2
54.7
924.9
2,992.9
3,118.8
3,914.4
Nonferrous metals
•
of
the
tre¬
^Approximate
ending August.
Source:
figure.
Dominion
tEight
Bureau
of
months
ending. August.
'
ISix
2,089.6:
months
Statistics.
which
develop
it
money
to
V,
:
reserves
1951
*550.2
geologically
in Texas. This
indication
some
mendous
1950
*485.0
377.4
183.2
favorable, is immense—some 770,000 square miles or three times
is
have
*
expanded,
L G. BEAUBIEN
«•
C°.
LIMITED
years
UNDERWRITERS
DEALERS
AND
outlets for the oil.
It
is,
that the
Specialists in Securities Originating in the
not surprising
Interprovincial Pipe Line
therefore,
Province
of QUEBEC
Government, Municipal, Corporation,
School
Commissions, Parishes and Fabriques,
Religious Institutions.
221
Take
it
look at Canada
a
NOTRE DAME STREET, WEST
MONTREAL
Quebec
St.
I
Trois-Rivieres
Ottawa
-
Hyacinthe
Shawinigan
Falls
Brussels
Paris
Canada offers unusually attractive opportunities
today... and
in close
for investment
touch with the Canadian
we are
scene
through W. C. Pitfield
8c
Company, Limited, and
&
tained in
and
associate, Hugh Mackay
memberships
are
at
the
Underwriters
we can
glad to put these
Orders
accepted for execution
Wire connections:
Halifax
W. C. Pitfield & Co, Inc.
Ottawa
Cornwall
Toronto
Hamilton
30
Broad Street
NEW YORK
244 St. James Street West
all stock exchanges
-
Toronto
-
New York
-
Montreal 1, Canada
Telephone HArbour 3121
Vancouver
Toronto
Kingston, Jamaica
on
Limited
Edmonton
London, Eng.
Montreal
HAnover 2-9250
Winnipeg
Calgary
Dealers
Royal Securities Corporation
Moncton
Saint John
*
Limited
Branches
Montreal
Distributors
disposal of dealers and institutions.
Affiliate
W. C. Pitfield & Company,
-
quotations and pertinent information
Canadian securities. We shall be
facilities
itu\
Canadian Securities
held in Canada's leading Stock
Exchanges. Through this nation-wide service
on
Miutm
major Canadian cities from coast to coast
furnish prompt
Canadian
/$t\
Company. Offices, linked by private wire, are main¬
our
42
333.0
paper
its products
Chemicals & allied
Columbia, Saskatchewan,
Manitoba, Alberta and the North
area
$23
32.8
Nonferrous metals
.
the favorable
new
page
100.9
products
textiles
Nonmetallic minerals
ish
which is regarded as
a
on
re¬
wit¬
Main Groups
1949
1939
Animals
likely
area
new
year
opening of
Continued
Agric. & vegetable products 127.8
1,500 wells were drilled
this year will
Territories. The entire
This
(Millions of Dollars)
Imports—
number
approximate
2,000.
Al¬
though Alberta remains Canada's
premier
oil
reservoir,
drilling
crews are now operating in Brit¬
nessed the
Canadian Imports and Exports by
Exports—
In 1951,
capacity.
Pacific
development work this year
cost approximately $250 mil¬
lion.
spent to create
were
fining
gas,
Canadian oil is seeking its logical
it is expected to top 400,000
barrels daily. Such increases in
production would hardly be un¬
dertaken without an expansion in
capital
to
an
the
export
exploration!,
is estimated that
It
and
cent months. Within the next few
must be admitted, however, that
much
be
the
As
against 45 million in 1946. During
still
enterprise last year,
reside"ts s;pp'ied about
Vancouver is
will
reserves
savings,
For instance, of the $4.5 billion in-
of
cut
well under way land, Oregon.. This is
of
great
completion is expected by late significance for the Trans Moun^
1953 or early 1954. Initially, it will tain Pipe Line. It seems reason¬
carry 75,000 to 120,000 barrels per ably certain that Canadian crude
day, while this could and probably will be supplying U. S. consumers
the past five years over a
year's
is
recent'
and
of
producing
capacity has /risen
It is not generally realized that steadily. At present it is close to
despite foreign participation in 300,000 barrels a day, although
pro-rationing has limited actual
our
economic development,
the
production ta about 200,000 in re¬
vast
The
-
real East to Toronto.
Canadian
growth is undoubtedly epitomized
by the development of Western
Oil. The step-up in exploration
and discovery since 1947 has been
phenomenal and there is no sign
of any let-up.
West
to
retail trade has experienced a con-
same
real estate will all
and
Budget
were
of
insurance
revoked
Federal
April and May of this
the
finance,
services,
commercial.
United Kingdom. Net inflow from
U. S., although down more than
taken in
measures
inflation
retail trade,
and
United
addition,
check
sale
washing machines, stoves,
as
have
reduced
excise
'transportation equipment 32%. On
the other hand, housing, whole-
durable
consumers'
Canada
inated
items
-
effort to stimulate the de-
an
now
Northwest.
capacity
that, generally speaking, the as¬ has been completed from Sarnia to has run concurrently with other
sumption of risk is in proportion Toronto. This is in addition to a developments in the oil industry.
to its wealth.
similar products line from Mont¬ Between 1947 and 1951, $310 mil¬
major increases will be recorded
billion,
which is considerably in excess of
the previous fiscal year, when expeno.itures approximated $3 bil-
the
even
America's
than
is
A1
increasing its capacity, by the ad¬ 10y2c a barrell in the U. S." import:
dition of new pumping stations. tariff
has
made
Alberta
crude
The
Trans ^ Mountain Pipe Line
competitive as far south as Port¬
billion
dollars were spent by the oil in¬
volume.
New
machinery
and dustry and present activity sug¬
equipment will be up 18% while gests expenditures of another bil¬
construction will rise 9%. The lion between 1952 and 1955.
figure for the United States.
During
on
and
assets
cess
reduced
one-half
expended
year
March 31, 1946, this debt
than
physical
planned investment is in exof $5.1 billion, or 22.5% of
estimated gross national product.
This year's amount is an increase of 13% over 1951 and 8%
of this is expected to be represented by a growth in physical
that since
has been
by almost 15%—or to a
total amount of $11.4 billion. By
the end of this year it is estimated
that the per capita debt in Canada
will be about $800, or a little less
debt,
was
durable
national
net
per-
The average for the years 1946-51
plus—its sixth in succession. The
amount of the surplus was used
to
increasing
an
is
income
less
centage of gross national product.
On March 31 last Canada ended
fiscal
capita
per
much
The Federal Budget
its
not overlook the fact that Canada's
to the head of the Great Lakes
-
Calgary
A
Halifax
Saint John
Edmonton
Quebec
Vancouver
Ottawa
Hamilton
Charlottetown
Winnipeg
St. John's, Nfld.
<
Financial Chronicle
The Commercial and
42
.Thursday, December 18,1952
..
(2366)
will present
of excellent timber
resources
41
Continued from page
Canada Not Oversold in U. S.!
Forest Products
Natural Gas
Estimated
.
natural
of
reserves
considerably over
have risen
gas
Alberta's reserves are
cubic
2 trillion cubic
feet have been developed in Brit¬
ish Columbia and Saskatchewan.
Most discussion of Canada's nat¬
ural gas now focuses on exports
and
markets.
Both the Alberta
last
year.
estimated at about 9 trillion
another
and
feet
a
thence
Vancouver and
tle,
Canada.' Many of
the
other
export
has
improved
and
for Canadian
market
bit
familiar
brighter
ing
are
the
and
whether
due
they be political or economic, we
profit
to
are
On
Salaries,
that the country's
production of iron
pletion of the initial stage by 1954
at
a
cost
of $160
million - will
bring 90,000 tons into production.
When
the
entire
$500
million
months.
To
be
Net
output is ex¬
pected, to be 500,000 tons annu¬
ally. The power project required
by the Kitimat development is on
a
colossal scale. Initially, 500,000
finished,
is
plant
.
Y
Pulp
the Peribonka
will provide
Iron
River. Together they
term the value of our
slight
tremendous
and
1,850
1,075
2,200
2,404
2,445
2,021
3,404
1,080
1,011
2,183
2,412
2,844
2,873
3,077
3,742
0,820
0,840
0,821 10,085 12,50(1 13,104 14,400 17,007
8,271
Indexes,
Seasonally
Adjusted —1035-30
=
100)
1050
1951
*1952
177.7
177.2
170.8
183,4
201.3
109.0
103.1
205.0
225.8
252.0
t'230.4.
211.0
221.2
220.3
220.1
251.3
.250.1
180.1
205.0
208.0
237.2
200.7
201.3
150.2
172.5
170.2
178.7
104.4
210.0
230.1
130.2
175.5
181.5
184.3
108.3
212.0
212.4
1040
11147
1048
1010
110.2
103.5
101.7
170.5
171.0
100.4
00.7
120.2
151.1
100.7
170.1
prod.
100.7
101.4
167.5
177.7
products—
108.7
223.9
187.3
metals «fc prod.
110.5
102.5
140.7
108.4
153.7
1O0.3
176.3
—•——
coal
and
power
—
Composite Industrial prod.
*Six
.
'
months
Source:
ending
Publications
June
of
1952.
fFoui
months
April.
ending
Statistics.
of
Bureau
Dominion
and
nickel
of
10% in two or
Completion of Falcon-
by
output
over
three years.
bridge's
Canadian Securities
outlined
new
Municipal
million
tons
much
is 10
ore
further
and
uncover
may
Government, Municipal,
ton¬
Orders Executed
Plans
Canadian
on
regular commission rates
or
Exchanges at
traded in U. S. funds
well
are
for
advanced
Orders executed
Utility, Corporate
drilling
greater
nage.
STOCKS
Canadian
Wall Street,
in Northern
mine
pounds
million
Manitoba.
An¬
Affiliated with:
nickel
of
Limited
.
.
.Members:
.
;
The
Members:
Investment
Association
Dealers'
Company
The
•
j
Ottawa
•
conversion
completed
next
expected
252
to
million
A
Montreal
will
maintained
be
pounds of
copper
ore
on
all Canadian Exchanges
York
is
the
ing has
being
London, England
been
out¬
Peninsula,
Mines
and
toward
made
property
brought
lead-zinc
United
in
and
States funds.
a
Victoria
.
at
into
pro¬
NESBITT, THOMSON AND COMPANY
Limited
Consolidated Mining and Smelt¬
at
Vancouver
an¬
duction.
regular commission rates or traded
New
has
Noranda
progress
BONDS
-
Calgary
awLethsrJZam&an Cities,.
body of 65
Gaspe
the
on
bringing
STOCKS
nickel
Winnipeg
L
low-grade
Quebec,. by
in
Affiliates in:
Toronto /
largest under¬
lined
executed
This
year.
million tons of
Orders
Bos inn
esti¬
million, will be
make it the world's
Incorporated
expansion
program,
mated to cost $100
nually.
CANADIAN
prices
A. E. Ames & Co.
near
»\v York
International Nickel's
is
I
constructed
ground mining operation. Capacity
Montreal
Winnipeg
Toronto
being
Toronto Stock Exchange
oj Canada
or
9
and
Edmonton, Alberta.
and
Burns Bros. &
Burns Bros. & Denton
New York
Inquiries Invited
refinery for handling the
is
ores
New York 5, N. Y., Tel.: DIgby 4-3870
net
at
on
ticipated production by 1954 is 17
million pounds of copper. A $17.5
37
Internal
and
External
Exchanges
bringing into production the new
Sherritt-Gordon nickel-copper
million
Burns Bros. & Denton, inc.
Stocks
Itoiuls
body in the Sudbury area;
per ore
Provincial,
Canadian
has now
nickel-cop¬
company
large
a
the indicated amount of
Corporation—External and Internal
pro¬
by 25%—to 35 million pounds
annually. This
BONDS
expansion
current
in 1954 will raise its produc¬
gram
tion
three
mines
into
additional
production
fourth should be in produc¬
tion by the end of this
year.
about
UNDERWRITERS and DISTRIBUTORS
The
$80
*
is
company
million
CHARLES KING & CO.
on
ditional
spending
Neu)
New
York
Stock
Exchange
York Curb Exchange
Montreal
Toronto Stock Exchange
Montreal
Curb
Stock Exchange
refining
facilities,
tilizer plant and
power
Government, Municipal,
the construction of ad¬
a
Members:
fer¬
a
Public Utility &
Industrial Issues
hydro-electric
project.
There
are
Market
others
many
of
a
PHONE
(MONTREAL)
HARBOUR
9221*
major importance but which it is
61 Broadway
New York 6,
N. Y.
within
not
Telephone:
Branch Offices:
WHitehall 4-8974
Montreal
scope
of
this
re¬
Toronto
Teletype NY 1-142
the
355 St. James
port to mention.
TORONTO
Uranium
QUEBEC
DIRECT PRIVATE WIRES CONNECT NEW YORK
<
WITH
TORONTO AND
MONTREAL
Canada
coming
shows
one
of
promise
the
of
world's
be¬
great
uranium producers. Production at
•
i
*
Street, W.
HAMILTON
LONDON, ONT.
VANCOUVER
4
a
i
201
173.3
15145
steel
and
Electric
Canada is at present the world's
producer
I
1926-1950.
Income and Expenditure
National Accounts
Non-Ferrous Metals
largest
0,000
at
paper
Nonferrous
lower 540,000 h.p. or enough for another
diminished, 45,000 tons of aluminum.
somewhat
costs and
137
1030
Agriculture
Petroleum
on
income
DIVISION OF INDUSTRY:
the first of the two new dams and
houses
115
and
(Volume
In Quebec, Alcan is opening up
power
7,701
82
840
1050
Industrial Production in Canada
h.p. will be generated with pro¬
vision for a capacity of 2,000,000
.
7,170
83
1,117
cost
Source:
5,221
340
4,053
1,068
4,373
agric.
national
factor
5,323
4,040
32
Income
of
1040
2,575
.
unineorp. business
other
1051
1048
1040-
1045
1,820
income
labor
income
Net
■*
Dollars)
104:
1044
Military pay & allowances
Investment
of
103 9
plans under way will increase the
Government,
ore
supple¬
&
wages
mentary
Kitimat
the
coast
west
the
by
production
100%.
than
more
increases but over the long-
wage
all satisfied that in due course
(Millions
to
,
.
are
designed
program
Canadian
raise
lumber is a
margins
increased
to
than it was dur¬
summer
prices
sure
now
expansion
The h.p.
possibilities.
excellent
be
.
Eastern
which
involved,
the
Canada,
and, therefore, regardless
factors
early
markets such as Japan, appear
with regard to both
taking place
.
you are
discussions
the
another
to
country
the
of these
and
Minnesota
to
and
weakness in the demand from
in¬
nc&ss
of
renewed. On the other hand,
Al¬
berta
King¬
United States and within'
pipelines
other
for
appears
now
potential
Net Canadian Income
is proceeding with an
inum ingots,
project is well under way. Com¬
part have not been
most
the
for
give its approval.
the one from Southern
Plans
clude
both of
September
in
expired
dom
First, how¬
economic.
has been the dis¬
years
of vast iron ore deposits.
It
Ultimately, output from the
1953.
de¬
covery
and
is expected by
production
initial
but
is
producer of alum¬
individual
est
spotty at
Contracts with the United
the Federal Power Commis¬
ever,
sion must
with
to
to Seat¬
the
and
Kingdom
during the year.
intervals
It is
enter the U. S. if the
to
line is to be
run
dependent on exports to
United States. Demand in
Portland.
Spokane and
necessary
on
lumber industry
these countries has been
pipeline is under
consideration which would
Canadian
United
the
Peace
the
from
exports
proved
River area and
posits. A mill is being built
few
last
uranium de¬
have uncovered large
exciting
most
the
of
velopments in Canada during the
Athabaska
Lake
on
One
Steel
and
Iron
hundred
few
a
customs
a
production
Athabaska
mines
may
be
four is. very great.
25% is exported and 90% of this
In
Ungava along the Quebectimes that from the Great Bear
Quebec,
one! can
goes
to the United States. The Province "of
Lake
area.
The development of Labrador border, exploration has
realize that this great
great proportion of this is chem¬ readily
ical pulp. In the last few years asset will keep pace with other uranium is largely a government proved upwards of 418 million
prices of sulphite and sulphate developments within our economy.
tons of high grade iron ore to a
enterprise but private companies
pulps
have
risen
muclKmore
depth of about 350 feet. Some
Aluminum
are now entering the field and the
rapidly than newsprint and there
The
Aluminum
Company
of government's mill is equipped to estimates have put the ultimate
has also been a wide-scale expan¬
Canada, Limited, the world's larg¬
sion in facilities.
The
have ap¬
Commission
Transport
capacity
south
miles
25%. of
its potential and that almost onehalf of this potential is in
the
installed
pulp
Canada's
Of
is heavily
of
Board
the
and
Government
built.
lines eventually
Alberta
markets.
for Eastern
daily
crude
of
barrels
20,000
cess
met and the
the obstacles will be
Sarnia to pro¬
million refinery at
dealt rather
extensively with Canada's Hydro
Electric development—easily one
of our
outstanding assets — and
when it is realized that present
year's report
Last
Goldfields,
and
on
ores
basis.
Territories.
Beaverlodge
Recent discoveries at
Hydro Electric Power
their-
handle
Great Bear
from
comes
Lake in the Northwest
their worth.
prove
VICTORIA
-
Montreal
WINNIPEG
CALGARY
OTTAWA
EDMONTON
SAINT JOHN, N. B.
Volume 176
in
reserves
Number 5178
this
at
area
.
.
fibre and filament yarn. Canadian
approxi-
Industries Limited are spending
should be moving at the rate of $45 % million in 1952-53, to manufive million tons a year and 10 facture polythene
at Edmonton,
million in 1956. If the St. Law- Alberta, intermediates for nylon
mately 2 billion tons. By 1954 ore
at Maitland, Ontario, and sulphur
Seaway is undertaken pro-
rence
duction
can
million
tons
be
a
stepped
to 20 -dioxide.
up
defense
American
the
began gaining monientum, sulphur has been m
spectacular
nature.
The
Steep short supply. Canadian industry
Bock property, 142 miles west of ^as ta^en steps which will go far
Port Arthur, near Lake Superior, towards giving it self-sufficiency
Program
In
addition, Canada has several
other iron developments of a less
will produce about 1.3 million tons
lr} Alberta are now recovering
elemental sulphur from natural
gas. Production will come from
smelter gases, refinery and nat-
rise to 3.5 million tons by 1955 and
possibly 5.5 million tons by 1957.
The ultimate
objective is 10 mil-
ural
lion tons annually.
Algoma
steadily
Ore
increasing
their
and in Southern Ontario
of
big
are
America
steel
searching for
a
Cur¬
projects will increase annual
are
capacity by 246,000 tons, against
output
St. Lawrence
of
sources
ore,
Last
including U. S. Steel at Sim-
coe
and Bethlehem Steel at Mar-
as
Chemicals
as
plant
struction is about $200
con-
Canada
December,
Ontario
that
carrying
the
debt
estab-
is
closer to
May
cooperation
in
the
in
as
custodians
the
of
in
which
we
hold
submitted the
erned
by those
supply
gasses
primary
monton
Montreal
and
the
precluding
Tn
Canadian
Ed-
going
a
navigation
"the
Co.,
a
as
1950
to Oct. 23
$3,825,000,000 $3,400,000,000 $4,820,000,000
40,000,000
guar.
.
282,312,000
174,600,000
257,850,000
116,949,500
142,987,234
280,215,303
185,665,000
32,740,000
168,667,651
179,903,689
Corporation
341,439,000
334,665,000
w
$4,695,371,-651 $4,229,620,689 $5,658,002,037
Gov¬
Less short-term financ¬
coun¬
ing (less than 1 year)
an
3,775,000,000
3,000,000,000
3,200,000,000
ex¬
of good will
$2,658,002,037^
$920,371,651 $1,029,620,689
above, the following amounts have been sold in New
Of the
York:
■■
B52
1951
1950
to Nov. 3
In June, Canada and the United
States applied to the International
approval to
develop
COMMITTEE
CANADIAN
to Oct. 22
to Oct. 23
Government of Canada
/' Arthur S. Torrey, Chairman
1
W.
Pitfield
C.
-Ltd., Montreal
in the International
power
$54 minion
Rapids section of the St. Lawrence
plant for the production of organic
River. In its application, the Cana-
chemicals, cellulose acetate, staple
dian
a
1951
Municipal
\
and Corpora¬
1951 and
to Oct. 22
Nov/3
Respectfully submitted,
Chemical- Joint Commission for
subsidiary oLCelanese Cor-
Canada
Provincial, guaranteed.
Roosevelt called
President
of Canada
Canada,
ideals
ideals our
forward
go
in-
the
of
Provincial
&
Government
stated
Frederick
F. B.
'
-
$72,000,000
$239,025,000
83,700,000
Municipal
27,800,000
68,292,000
130,900,000
2,500,000
19,000,000
20,000,000
$230,700,000
$309,817,000
$170,700,000
Company,
K
k
s
•
Corporation
Ashplant
Ashplant & Co.,
New York
in-
its
B.
$50,000,000
—
Provincial
~
poration, is building
Canada.
follows:
Government
policy of good neighbors."
scheme.
abundance- of
an
materials.
raw
East,
natural
of
great
ample to the spirit
and
of
li)52
business
common.
which
will
tries
as
to
much
citizens
others—as
—thus, fpr the time being at least,
refinery
1950
Govt,
have
In
more.
even
custodians
are
of Canada and each
Dominion Bureau of
Government
Bank
1952, with comparative figures for
United
respective citizens
common—as
of
Summary
tion bonds to date in
past.
we
the U. S. Senate failed to approve
the;
the
between
businessmen
are
the
of
Accounts
Public and Private Financing in
report with the firm hope that the
future
Public
funded
total
tNet
plus guaranteed securities.
liabilities and guarantees.
Reported sales of new Government, Municipal
therefore, conclude this
we,
terests
undertaking
contingent
Statistical
reality than
before.
ever
debt
Statistics.
that the much discussed
Seaway
is de-
Sarnia
it
appears
we
either
plus
Sources:
but
—
■ «»•
funded
Province.
Edmon-
tori,
■
Provincial
$19,243,000,000 .;
19,062,000,000
18,606,000,000 •.
18,438,000,000
18,391,000,000
18,317,000,000
$1,895,000,000
1,953,000,000
2,127,000,000
2,298,000,000
2,640,000,000
2,722,000,000
15,751,000,000
15,595,000,000
15,216,000,000
now
of petrochemicals. Industry
where
Federal
119955102
Canada
$17,348,000,000
17,109,000,000
16,479,000,000
16,140,000,000
may
long and difficult
project to Congress in January but
around
be
S.
U.
which $140 million is in the field
veloping rapidly
out
Total Dominion and
f Provinces of
( March HI)
be
maintain
President Truman
it
must
"-Dominion of Canada
negotiation of these obstacles
jointly with the United States.
or
million, of
by
have
all-Canadian
in
authority
City
v<
Ralph D. Baker
James Richardson &
Sons,
Winnipeg
Russell D. Bell
Greenshields & Co., Inc.,
Collier Norris
Montreal
Quinlan
&
MEMBERS
MONTREAL CURB
CANADIAN GOVERNMENT
A. E. Boothe
Bell, Gouinlock & Company,
Limited, Toronto
MONTREAL STOCK EXCHANGE
PROVINCIAL
MARKET
W. T. K. Collier
Norris
Collier,
AND
MUNICIPAL
Quinlan,
&
Ltd., Montreal
SECURITIES
C. G. Fullerton
A.
E.
Ames & Co. Limited.
Toronto
James A. Gairdner
Collier Norris
Toronto
Limited
Investment Bankers
McLeod, Young, Weir 8c Com¬
pany
Association of Canada
320 Bay
Street
I
/.Wood, Gundy & Co.,; Inc.,
>
-
MONTREAL
WINNIfEC
TORONTO
City
New York
Arnold B. Massey
WAverley 2984'
"
t
Edward S. Johnston'
.
!
Toronto
507 Place d'Armes
LIMIT!D
Limited, Toronto
Established 1920
Association of America
Montreal
> HArbour 2201
BELL, GOUINLOCK & CO.
W. H. R. Jarvis
MEMBERS
The Investment Dealers'
Ltd.,
Gairdner and Company,
Quinlan
&
..
Mills, Spence & Co.,
.Toronto
_
-
•.
Stanley E. Nixon
Dominion
Securities
*
♦»,.
Corpn.~>
Limited, Montreal /:
.George; P. Rutherford i
\
;
The Domin ion Securities Cor- \
Underwriter* mnd
Dealers in
^
poration,, New York City
—y
Denail
:
!'
f
1
Municipal
Canadian Government,
;
•
*
••»
:'"
•
i
J;
v-
,
'
..
•
/;•
'>
•
-
.
'
5
.•
......•
.
;
'
j
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j
f
.
.
.
Prices
for
.
quoted in United States Funds
delivery
in
the
:'.-v i *
•
•'
-J.
United
States
3;
|
*».y
/"•.
'— \
v
<~Y
'
Brawley. Gathers &
'
-
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o r p n
f
.
j
Again in Florida -i
or
At
the
Canadian Funds for delivery in Canada.
of
this
concluding
year's
CANADIAN
1
1953 Convention
-
Company
Dealers' Association of Canada
Members Investment
?
-•
Securities /C
?Limited, London, Ont...." >
j
-
*
Corporation; Securities
i
"
Midland
a.
>'
Limited, Toronto
D. B. Weldon
and
,
R.IA/ Walker'
Wood;• Gundy/ &" Company, 5
..
GOVERNMENT-MUNICIPAL-CORPORATION
SECURITIES
session
meeting,
the
Board of Governors decided to
-Equitable Securities of Canada
LIMITED
return
to
the
Hollywood
CANADIAN BANK OF
COMMERCE BUILDING
EMPIRE 3-5821
Beach Hotel for the 42nd An¬
'
'
•
'
■
.
nual
220 Bay
Street
Toronto, Canada
Telephone: EMpire 6-1141
Convention
in 1953.
43
Outstanding Dominion and Provincial Debt
*Net
As
Seaway,
must
Power Commission. The successful
we
the
Commission
authority to cooperate
and
licensed
1199446789
possible the Inter¬
Joint
Authority
an
is
an
body empowered to construct
a
and
chemical
appoint
Seaway
iished the St. Lawrence
mora.
Current
national
the
companies
new
this
Before
concurrently
navigation scheme.
States and Canada will flourish in
imports in 1951 of 396,000 tons.
number
and alone, the
and iron sulphide.
gas
rent
properties
material. New plants
i\su
this year and output is expected to
tention to undertake
with
Since
year.
(2367)
Chronicle
The Commercial and Financial
.
The
underway
on
be concluded
of the IBA
meeting will get
Nov. 29 and will
on
Dec. 4.
TORONTO
'
44
The Commercial and
(2368*
from Italy up to the Nether¬
lands, on to Denmark, and on to
Britain. For the last year Britain
Government
move
Continued
from
]t9
page
this
do
little
what
sion
of
I
and
of
the
propul¬
general method
glibly but not always with
understanding.
that
about
*
this
but
country
in
Western
World, returning to a
recognition of the principles upon
which our strength rests.
Within
the
which
all
of
may
the
or
not
benefits
profit motive
ance
with the dictates of the
people
threat
a
country,
a
without
as
its
ditions
and
to
an
enemy
It
is
in
sirable
that after all, we have
ceived
excuse
in
move
because
sible
to
There
this
Stalin
in
move
is
that direction
or
makes
always
it
that,
and
there
some palliative
that
gested
as
the
a
way.
grain of truth
a
in
But
impos¬
another
is
always
be
can
sug¬
temporary expedient.
essentials,
the
basic
—not
we
have
current
the
of
been
high
Western
the
of
one
to
of
that
most
the
has
be
dole,
but
handout
as
a
to
or
his
in¬
the
own
when
way
hospital.
with
return
the
to
by
one
Marshall
the
earning
and
one,
Plan
do
the
why
policy
achieve
and
employ¬
hava
We
way.
in
put
to
seen
work
Italy.
We
market
to
seen
that
It
that
the
not go
had to put
you
Uuence
LYONS & SHAFTO
on
able
to
be
it.
of
con¬
an
orderly
before
tried
I
I
but
only
can
this
United
that
the
States
United
it
had
the
to
the
I
was
very
that
we
should
judges of what
is; that
our
an
not
orderly
efforts should
the
see
shade
of
you
difference
and
due
and
bond
when
interest
on
After
two
hadn't
made
he
reason:
statement
half
a
to
I.
but
it
for
me
showing
was
from
hours
progress,
any
interesting
was
I
and
his
his
sales
he
Government
I
had
par.
"What
securities?"
banker."
It
them
Then I asked him, "Did
send the Treasury a check for
those 3V2 points you made?"
It
was the only thing that made an
you
impression
In
my
I
nance,
that
him.
on
early
there
experience
is
risk
no
securities.
ment
deal
HARTFORD
NEW YORK
to
in
Govern¬
Certainly
of
a
Market
sound
or
securities
in
depend
risk whatever.
no
on
that
the
forces
assert
the
of
only risk is in
You
currency
That risk, we
tion.
are confident,
by molding our
thinking, within the framework of
logic, to reliance on the forces of
will be minimized
market.
which
Committee
unsound
market.
we
are
what
Government
The
direction
trying to
ment
Let
is
move
me
tration
Bond
give
which
The year
1951
Market
you
just
one
because
largely a year
the debris in the
was
of clearing away
10
to
market,
and
'
Massachusetts Investors
4
ability even during that time of
minimizing monetization of the
debt,
market
F. S. MOSELEY & CO.
of
had
j
.
•
v
,
ESTABLISHED 1879
•
been
monetization
MEMBERS
the
•
hoe Ion Stock
Exchange
Sew York Curb Exchange
Exchange
31idwest Slock Exchange
bit, all
techniques
the
makes up the
debt
now
We found that
brokers,
that
—
eOdodton cfund
to -prevent
the
reverse.
dealers,
dividuals
the
composite
in-
that
Century Shares Trust
market—thought of
the Federal Reserve System much
in
the same way
(to draw'on
experience
my
Underwriters
and Distributors of
little
a
using
of
Growth Stock Fund
the
once
devices' and
worked in
New York Stock
that
freed
was
the
we
found
we
on
the 'floor
of
Canada General Fund
the Stock Exchange) that some of
the traders felt with respect to
a
BOSTON
Niassachusetts \nvestorsTrust
the
pegged
obvious desir-
the
OF
re-..
of
years
.
get
into
you
pool operator in the days when
operations were permitted
pool
CORPORATE
AND
MUNICIPAL
in the
early '30's.
were
much
was
they
PAPER
for
going
BOSTON
•
CHICAGO
•
INDIANAPOLIS
A
prospectus reletting to the shares of
investment funds may
any of these separate
be obtained from authorized dealers or
in
were
PHILADELPHIA
program
ket
•
under
that
to
operate
VANCK, SANDERS & COMPANY
than
making judgments
Also, we started
of freeing 5the mar¬
111
the
people
obvious
difficulty
were^ talking
about
collapse and panic and despair
and disaster; some said that once
STREET
DEVONSHIRE
BOSTON
themselves.
this
•
in
what
the
Federal
planned to do and how the Fed¬
eral
NEW YORK
interested
finding -put
SECURITIES
COMMERCIAL
Naturally, they
more
NEW
61
YORK
15 road
v.-a v
CHICAGO
120
South I.aSalle
LOS
street
210
illus¬
supports that view.
we
themselves.
Alter
can
The
deprecia¬
CfJJe
market
a
completely.
Mr.
great r
patient work
are to permit ;
thoughtful,
in
government like the United States,
there is
Open
strait-jacketed
which require a
shake off if you
fi¬
must
or
concepts
BOSTON
in
trained in the view
was
Still, I would like to share with
a
bit of The experience we
had with the unpegging of the
frozen
at
got those
through
my
Clearing Away Debris in Govern¬
as
market
pay
turned
"I
subscription,
on
103 Vzl
you
gotten
it,
one
several
at
did
a
when
on
sold
securities
asked,
me
broker
happened to notice that
of
this
the
that
from it you can see how
your
due, you will have
something you didn't have before.
comes
you
Government
that
see
the integrity of the
currency is
such that when those bonds come
we
have made "progress."
State and Municipal Bonds
root
purchasing
of the dollar,
power
the
at
the
of
stronger
that we
been;
matter,
been
credit
was
get
to
credit
hadn't
the
ever
trying
were
the
States
that
pa¬
tried
point
some
report,
him
to
as
and
ought to be extremely careful
about
attempting
to
intervene
unduly and in determining in the
thinking
morning,
could
debauched;
several
Congress to
"orderly market." I don't
realization
can
today some¬
at the mo¬
you
the
of
had
been
partly
was
in emphasis—and that even there,
restraining inthought I might
tangible,
did
problem of the
"maintaining
market
some
inflation
I
ment,
Miller
of
be the
a
give
thing
Incorporated
minimum and
a
maximum.
mar¬
States
listened
I
I
as
had
a
realizing
that at
tiently
explain
put
ing disorderly conditions—if
latent
responsible.
he
successful, but
I
do
think
that
gradually our
emphasis has been shifting toward
un¬
were
problem,
United
he
most encourag¬
been
the
As
think
their
new
of
that
a
a
destroyed—that it had
out
may
define
in¬
were
credit
those
of
field
and
on,
give
whole
a
had
this
about
will
participate in
be directed more toward prevent¬
was
that
groups
which
under¬
no
security
was,
and
he
by telling me that the
for
committees
benefit
and
ing kr find that there
it
that
bond
had
explore.
Against
Government
the
we
reserves
how the Fed¬
intervene, when it will
market."
have
we
the
have
experience
When
we
pegging
Belgium
have
to
guidance.
hard
monetary
in
able
their
of
to the
who
you
We had the
individuals;
great
deal
to
a
reserves
ter¬
bonds
started out
So
cept
have
I
interested,
more
must
market.
rules
of
not at
devoted *
understanding
been
aid
Division.
contributed
our
process,
it
seen
telligent,
it
countries of Europe that struggled
along
Securities
never
left
seen
have
We
he
ment
and
absorbing
will always be at
Govern¬
your
part
intervene, and for what purpose
will intervene; also, an under¬
standing
that
the
intervening
three full days, three
working, days, with
too
the
it
pay
his
had
He
•
understanding
take this opportunity
of spending
down.
some
was
when
the market, and those of you who
contacts in the market, an
tribute to your members
who have so greatly aided us in
this
task.
I
had
the
privilege
means
market
of
have
The Bond Market
want to
the
those
Cooperation in "Unpegging"
I
the
themselves,
should
or
ground
a
what might
eral
not only de¬
intelligently
con¬
intelligently planned
letting
background, it is our purpose to
try to develop and write some
done
was
The
unpegged market,
reassert
Federal
from
those
stages
perpetual
a
that
with
an
of
market
to develop and improve
operations under the
changed conditions.
In
war.
Govern¬
the
play in supplying
review¬
determining
few
a
market.
understanding
the
Govern¬
to
went
ketable
of
little
a
been
view
West¬
of
World.
reasons
able
levels
and
as
earn
and
the
cornerstone
of
the American
economy and of the
is
in
man¬
our operations in the
ment
securities
market
has
in
of
there is still too much uncertainty
and
unawareness
of
the
desir¬
that
debt
ing
helping people to help them¬
selves in a period of hospitaliza¬
tion, making "it possible for the
patient to
get
the
strength to
of the.", decision of the
place, have been the foun¬
economy
sub-committee
of
dation
That
because
it; it is
alternative
program
a
but
perpetual
gredients
market
and
on
credit
standing whatever of what
than
forces
with
distressed
months with
months,
shown
securities
ribly
to
way
However,
good friend who had
very
Government
"stability"
had
come
to
mean
"stagnation"
and
"frozen
prices."
Yet
today,
after
18
that
me
and
can
movement
a
securities
ability
cooperation
saw
merely because there
thirty-seconds
During the past year, under the
authority of the Federal Open
Market
Committee, an
ad hoc
mar¬
like
since
initial
its
regimentation, and it permits
has
to
used
word
to
seems
1951,
been
experience
does have
tangible, beneficial effect.
returning
work—and
Plan,
in
agement,
with the problem of
inflation, most of Western Europe
has gravitated around
the Mar¬
subtle.
had
monetary policy, if properly used
struggling
from
controls
Accord
Market
achieved
out
Europe
ern
slow,
not
found
been
and
wave
of the
painful
because
don't
ways
It creates the cort-;
shall
produce
is
It
past.
I
United.,, States.
debauched, and that I
the horizon
might say the period since
Treasury - Federal
Reserve
the
endanger
of
use
necessarily
achieved
vitality
economy
borders.
which
.
the
an
can
It is insidious.
the
to
the vigor of
and
It
hard.
The heritage of all wars is in¬
flation. And inflation can be just
as
serious
an
enemy,
just
as
Free
process
is
place
I
pleasure.
wasn't
right
testify, from people who
disaster, panic and collapse
ment
the record of the last few
and
of
the
fundamental
been
but also
way
purposeful
certainly
can
should
tools
of
it
the
the
get calls at midnight, as my wife
in
acceptance and
ket
of years.
and
the
the
of
prevent
another
on
the
to
this
Now
to
from
wisely
can
Other
time
period
a
let
we
reassert
market
the traditional
from
structure.
mar¬
that
has
almost forgotten for a period
we
of
roll
Return
place—something
serious
will
our
enterprise,
in accord¬
free
ket
been
reforming
that
utilizing
from
intelligently,
weapqn
or
part of the
a
that
at
used, of course, but if we did
not use monetary policy, too, we
would be turning away not only
situa¬
ourselves
handle
we
and
nature
may
maximum
flow
us
private property,
and
human
of
you
approve—the
for
if
the
framework
—of
end and we
is
by which
the
of
themselves.
swing is at the tail
have caught it where,
inflationary
it
months
experience in the Federal
an
unpegged market, but
under
be
say
there
out
entire
the
inflation
the
think
test—but
the forces
today is very much like the
on
the waves that you see
in the
sea—that this
tion
foam
again, not only in
once
con¬
might
I
ingredient—one
one
At the risk of appear¬
confident,
too
I
inflationary
serious
sequences.
competitive
present
ing
are
my
that monetary policy, alone,
responsible for restraining in¬
Monetary policy is just
four
of
believe,
maintain
of
By now I rather enjoy recalling
is
and a defense pro¬
which is now rolling —
without
im¬
to
Thursday. December 18,1952
...
is,vwe
a
flation.
one
machinery
below
The Role of the Federal Reserve
ply
and of production, a record
—
"went
be destroyed.
the first three
expansion,
enterprise system, which we talk
We
certainly don't intend
gram
economic
our
I
is to talk a
consider to
morning
about
would
taking measures running
somewhat parallel to ours. "
ment
the basic principles of
be
bonds
the credit of the United States
par
has been
Propels
Our Economic Machinery
A Fiee Market
to
Financial Chronicle
ANGELES
West Seventh Street
Volume 176
Number 5178
.
.
the
the
clearly and explicitly for the
independence of the Federal Re¬
of
privilege of working. Let me
you that during the Patestablishing some of the forces
that make for a freer market. The man Committee hearings he came
Federal
attempted
from several
things: from mother¬
bond
"the
*it
"Why don't
say,
That
tion
is
for
a
who
one
I
of
control
gets
of securities, as I
learned years ago while watching
'some
of
the people
who made
markets
the floor of the Stock
on
•it
rumored that
pressed
important
an
didn't
loaded his stock, and the company,
*
far
so
the
as
we
-the
traders
much that even
very
me
what
understand
to
seem
reserve
was,
process
they
so
said—just automatically—this is
concerned, was absolutely
-inflationary. I was asked to an¬
worthless. I happened to have 50
swer one article, but I said no, it
rwere
*
shares
of
General
Motors
the
at
is not
time, and I thought, "There is no
'hope for this company, so I had
give them six
worthwhile;
,
rush
better
my
••
there
over
I
came
•said
little
a
had
whom
great
to me
up
on
something
trader
respect
talked
I
right,
but
it
because
this:
available to
wasn't
investors
nonbank
it up
under the subscription
technique. Now I won't say this
was handled either badly or well;
took
the floor and
like
came
attractive to banks all
them
for
and
great deal
a
will ap¬
And so it
issue
was
it
out
then,
Right
with
answer
own power.
When the 2%%
went.
50 shares."
.whom
its
pear on
sell
and
the
and
weeks,
"You
know, that is a great company; it
is going places; it doesn't make
that isn't the point
tion.
have
You
step
difference whether a big exe¬
cutive has sold all his holdings in
•any
how
to
do
to
my
of
some
these
things, relearn some of the proc¬
it or not—the company, the auto¬
esses
that you knew very well
mobile business, is still there, and
at one time, only that time was
if they haven't got the right man¬
agement
now,
management.".
couraged
my
for
me
they can get a
Those words
very
much.
We
held
had
tionary!"
That case, to me, demonstrates
.something fundamental. We don't
what
happened?
weren't getting
But
*
have
credit of
handle
to
the
our
worry
United
fiscal,
about
monetary
Banks found they
the
—
jointly
—
and,
who
to
began
might
and
to
Then
to
go
corporation
did,
it
as
treasurers
main-
inflation
began
had
idle
in
taining the integrity of the dollar;
restraining
Re¬
began
portfolios.
rate
been
number
wished
into
think
deposits
,
could
be
interested
more
to
than is the Treasury of the United
States,
or
Treasury
the
Secretary
of
of
the
ceeded to
with whom I have had
That
in
People
the
.
,,
peevishly, and said: "If he
hitting
me
you
fellows bet-
he
for
solutions
problems as energetically
intelligently as we can so
as
to make sure that we preserve
as
of
action
and
choice
in
market
place.
The
reason
is*
freedom
the
the judgments
the decisions,
that
market place by and large
of the
will be sounder than those of any
administrators
public
or
any
of super men or any
group
supdr
staff that
you
likely to have
are
Washington or in your own
business. For this applies to our
in
private business as well as to the
Government. From it, you will get
the framework that will support
free democratic
One of those
institutions.
institutions is our
Reserve
Federal
System.
I
have
with how effec¬
tively the defects revealed in our
monetary system in the period of
1906-1907 have been overcome by
the successful working of the Fed¬
eral Reserve System. True,
the
Federal
Reserve
System, must
impressed
been
change its course and must adapt
changing times and pro¬
itself to
gress
but
like any other organization,
the
adjustments
that should
be made must be made
lsn 1 mwinS me' you "r, Dei
ter keep an eye on the referee,
a
that we
matter:
Continued
in accord-
on
page
Here
made.
bringing
market,
to
say
"Well,
you,
you
policy,"
can, and I
monetary
measure
don't think
No, I
you
FOUNDED
understand the plight of newsmen
who
come
and say
to
me
there is
192 5
from time to time
no news
in
mone¬
tary policy. No, there can't be, be¬
all in
work
it
doesn't
is
a
a
single afternoon,
a
make
process
doesn't
policy
monetary
cause
Ol
so
spot news. Yet it
that goes
general effect
quietly,
on
on
the econ¬
although it isn't measurable
omy,
in precise terms.
Question of Effect of Monetary
began
bills to get the re¬
i
coffin &
Policy
took
turn
banks, for they pro¬
sell
hadn't
rather
the
seeking
be
today's
and
of
-crux
should
investing
that
worthwhile, and
bills.
buy
care
the
be
quite
found
commitments
of
was
at
he had
mortgages
and
he
look
to
the
play penalty and reward.
can't
'
i none
getting
again
down
sat
those
of
some
with
are
deeply and sincerely interested
short-term
up
Both the Treasury and the
.Federal Reserve
they
so
their
reappraise
and
debt management problems prop¬
erly.
System,
serve
we
Federal
the
from
reserves
the
States if
a
weeks
and
said: "Oh, this is infla¬
he
pegged
over¬
several
of
everyone
small profit.
.really
was
high level activity for
period
50 shares, and later sold them
a
issue
subscribed. heavily oversubscribed.
en¬
I
This
ago.
years
new
had'been-effective,-but
that, after all, we had been having stability at high levels in this
country—with some forces of inand some forces of deflathe banks found the new issue at- tion, but equilibruim in the main
tractive was shown by
the fact for a period of many months,
that, at the end of the eight weeks, r
At this point, an associate of
they' held $1,400,000,000
of the :mine on the Board,' who-has a
$4,200,000,000 in new
securities, very nice way of putting things.
And yet, during the same period,
suggested that the comments of
there
was
a
decline
of
nearly our friend the economist about the
$600,000,000 in total holdings of effect of monetary policy on inflaGovernment securities—including tion—or rather its lack of effect—
the new issue—and in loans by reminded him of the time when
banks against Government securi- Max Baer was fighting Joe Louis,
ties. So instead of more inflation, Baer
had taken
a
pretty bad
we had a touch of credit restraint,
drubbing.
When
the
seventh
by virtue of the market attracting round ended, he had blood over
corporate deposits into
bills. I one eye and sweat was oozing
know some of you will say,
oh from his brow. His handlers were
that
is
short-term; it will just doing everything they could to
come back. But the very fact that
make him not only able but willit happened at all shows that the ing to get back in the ring with
process of reappraisal and readLouis, so they said: "Maxie, he
justment is going on. Other things isn't hitting you at all—he isn't
show it too. There was the period touching you. Just get in
there
when /mortgages
were
being and sock him in the jaw." Just
picked up right and left. An insur- as the bell was about to ring, and
ance executive told me that when
as they mopped his brow for the
the Government market was un- last time, Maxie turned around,
illustra¬
learn step by
of
market
of
Treasury raised over our policy
000,000 of maturing certificates of
of the financial publications
some
-executive of the company had un-
-therefore,
But
around.
The
indebtedness before its close. That T'lation
issue in the early part of the
it was widely miscon¬
strued
as
inflationary.
It
im¬
the floor of the Exchange when
was
lying
interplay
$4,200,000,000 at the beginning of
the period and refunded $2,000,-
summer,
General Motors crowd one day
on
effectiveness
the
of
free
forces.
and extend¬
1951,
year
"Exchange. I remember standing in
;a
In
the
of
had a
very interesting experience, and I
would say that the deficit financ¬
ing we have had to date has been
largely non-inflationary. When
the Treasury put, out a 2%%, six-
block
large
a
one
indicative
is
one
you
thought, maybe that is the spark
the fuel that
is
natural tempta¬
very
give
that will really ignite
down that amount."
or
to
ing into 1952, came deficit finance.
Now I was greatly disturbed when
I saw it loom late in 1951, because
make
we
We will be the
judge of whether it ought to go up
this amount
Deficit Financing
like
debris.
the
be.
to
swallow doesn't make a
but what happened in
eight-week period certainly
you,
experience in clearing away
more
market—we will make it what
ought
any
summer,
in
would
I
is very easy to
in the other direction; very
to
easy
lieve
,
account, it
move
that monetary policy had because somebody in that ring is
effectiveness whatever. He knocking the hell out of me."
That may be about the only sort
has had doubts recently as to how
correct his convictions were. He of measurement you can apply to
the effect of monetary policy.
remarked that he couldn't see that
an interest rate adjustment of an
Solution Lies in Freedom of
Vsth of 1% has any effect whatMarket Place
ever
on
the economy. I replied
I want to reiterate what to me is
that I couldn't prove to him that
from
gotten
System.
quite impressed at the end
eight-week period. Mind
the"
that
Renewal
•
you
haye a. bond
account of the size of the Federal's
when
.course
T'was
System.
serve
ing the market, and from the socalled
open^ mouth
policy.
Of
Reserve
'
out
to move away
hadn't
they
serves
remind
Government bond market and re¬
45
(2369)
Chronicle
The Commercial and Financial
.
That
had
brings
some
to
time
mind
ago
a
with
talk
a
I
very
brilliant economist who didn't be-
Purchasing and Distributing
State, Municipal, Corporation,
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Railroad and Public
Founded 1898
Utility
Securities
BOSTON
NEW
YORK
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from
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be obtained
investment dealers
or
STOCK FUINID
EUiNiD
PROSPECTUSES OF THESE TWO INVESTMENT FUNDS MAY
BE
OBTAINED
FROM
YOUR
INVESTMENT
DEALER
OR '
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EATON
&
200
INCORPORATED
BOSTON
24 Federal Street
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PARKER
CORPORATION
HOWARD
Berkeley St.
Boston, Mass.
333
Montgomery Street
SAN FRANCISCO
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So.
La
Salle
Chicago, 111.
St.
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S.
Los
Spring St.
Angeles
46
-m
The Commercial and Financial Chronicle..;
.(2370)
no
shortages of currency— to letting the adjustments be made
except temporarily when demand by the market place. If* we ever
for. small .coins gets ahead of the ;let political expendiencies or^elf-
have
Continued
from
45
page
problems in terms
elasticity or inelasticity of our
currency. But it was also found
of
principles.
ante with fundamental
And
I
insist that
the
basic prin¬
ciples of propulsion center around
the market place, not distortions
of the market place either by pool
operators or by a Federal Reserve
Committee
with
a
large
amount
of government securities.
You will recall
that in
a
people
we
happen again, founded
it must not
present Federal Reserve Sys¬
Before
tem.
tendency to
least
1907
it
panic, realizing
that
for
the
with
struggled
who
solution
our
panic and that the
money
that,
appear
needed and
was
money
mo£t
had
a
reserves
scattering
had
that bank
or
had
a
of
way
when
they were most needed, and also
of starting a sad chain of events.
the
So
Federal
given
was
contract
power
to
heart
of
system. Because the Federal Reserve System upholds the fundamental
and
Thus
needed.
Today
we
the
money
stands
and
e
that
money
our
system
is
Another
undertaking
major
dealing with the problems of na-
it, the System frequently iscalled
the primary bulwark of the free
power
Revised Transport Policy
' *
*
against forces that might destroy
when it was system.
disappear when
1
pi in cip
constructed or
facilities
maintained at public expense,
the
System
expand
reserves—a
the
to
goes
Reserve
Sectiritieslmprovsd
other
or
business economy and swept away
base of the free enterprise
disappearing
l
vl
private. irtterests obscuTe ithe
fundamental: principle ." that * the
currency
belongs to the people,
then we will have destroyed the
fundamental ingredient of a sound
there once were
Our Economic Machineiy
Continued from page'28
r
ish
hardly " realize
coinage—And,
Thursday,December 18,1952
tional
transportation policy is now
^pi^ly reaching the action stage,
^|je
por
jast
several
years
our
eVorSrabyiee,Sudy has been ^CooXuvT'
{£&£
£°fTl255s^ocia t io not
of deb! management'in
achieving A™7ka'
di¬
rectly and fundamentally related
price stability and high level employment—two things that you all
realize are mutually contradictory
in one sense, however desirable
they are sociklly. I am glad that
price stabilitywas given the same
consideration
ployment
didn't
long
a
make
D
the,.:hands..of the Board of Biem-'Tec*°.r? ^ ^ ® Transportation Assooiation of .Amenca and has re¬
time that prices ; ceived widespread; acclaim from
difference, ex- many groups interested in our
high level
as
because
hearing for
f
^horrpolicy geared o
^
~
?L pV€ COnfThe report of
C^ler&t^eJr°leCt ?
any
had -been
we
any dif- - transportation problems,
ference, and interest rates didn't * A number of
bills "affecting
change rates didn't make
make
any
again
we
difference. Well, once ".transportation
regulation
were
realizing that they introduced in the Senate in Jando; realizing that the productive uary of this year. One of the more
capacity of American business is important of these bills would
such that you will have to reduce • revise the basic rule of rate makprices in order to sustain volume ing and another seeks to reduce
adbsaLUMINUM
are
on the scale needed for
high level
employment, or else that in order
to keep prices up, you will have
to
reduce
that
and
the
number
will
the time lag which has been experienced between the impact of
-
higher costs and the achievement
units—; of compensating rate increases,
of
again
These bills, as well as many of
the others, bore a striking resem-
misery
existed as a
blance to certain of the recommendations contained in, the re-
result, of the unemployment following the '29 collapse. But let's
port of the National Cooperative
Project, although we do not believe they were then promoted
by the Transportation Association
of America. While these bills were
not enacted into legislation during the last session of Congress it
mean
some
ployment. We should
unem-
never
in this country permit the
and. suffering
that
not have our social
welfare
mental
has
work
security
impair
the
or our
funda-
working of the system that
made
great
us
made
and
us
strong.
i
'
I'd
like
to
experience
an
in
1943
by reciting
I
when
had
I
is to be hoped that public opiri-
in
conclude
ion fostered by the Transportation
Association of America program
lend-lease mission. Our
having
dinner
with
equivalent
of
Commerce
Moscow
there
went
on
a
will accomplish
group was
greater degree
a
Russian' of success in the 1953 Congress. '
the
and
Secretary of
We recommend that all friends
Secretary of De- of free enterprise, and particularly
fense, all rolled into one. In the those interested in transportation
course
of
the
evening,, he ex- —whether as users, providers or
pounded at length on the Russian
m
our
.
.
..
,
.
^
support the Transpos¬
system. Then he began question-
inves*:ors
ing
tation Association of America pro-
because
me;
would
know
American
he
thought
something
business
I
about
gram.
and finance. I
Respectfully submitted,
,
,,
told him
things don't Work in our
they do in his, that we
depend upon the market place to
make decisions. Oh, he said, we
couldn't permit that over .here —
yO.u j list couldn't have it.? Then
country
he
as
bn
went
tell
to
about
RAILROAD
COMMITTEE
The
formation
of
Anaconda
ground-breaking operations
mark Anaconda's
new
Aluminum ]
on
a
Company, and recent
50,000 tons of
in
primary aluminum
R.
jeeps
an
Howard. M.
•
;
•
,
Rowland
'
This step
tion
"•
.-f.--.
..
V—
you
•
forward. The
sion, modernization,
improvement —
at
j;
free
.
r
?•
men
because
accordance with
non-
our
are
we
are
pairing the fundamental "structure.
Yes, whether it is the New Capi¬
talism
:
the.
of
Theodore
Roosevelt
NewFreedom
Wilson,
made
be
the framework of the
mental concept
a
Subsidiary of Anaconda Copper Mining Company
market
sions
i"'
,
4*
.«
A'
.
t'H
s.It*"
i
M}'
that there will be
minimum of intervention in the
depend
.
within
solid, funda¬
as
place,
on
and
that
we
will
the composite of deci¬
the basis of free, strong,
v.
p
i
.
r
l-
;Samuel
-
'*
*
B.
'j
I
t
„
'
.
'
»
^
-
;
Payne
j
Morgan SJtanley & Co.,
New York
iCity
•
Xteorge E. Ricbirdson
Vilas
-
Hickey,
New York
City
i
|
Henry S. Sturgis
First
New
National
Bank
of
~
;l
York
Ropsevelt, the adjust¬
ment itself must
ALUMINUM COMPANY
Woodrow
the New Deal of
or even
Franklin D.
of
or
Co.,
■
i
City
Bear, Stearns, & Co., V
New York City
making '
not im-
York
V.'Theodore Lowr
proper! incentives
adjustments
New
\
!
George M,!. Grinnell • v
-Dick & Merle-Smith,
we -are
—from realization that in
62326-1
j
.
H. George
New York City
strong,
and our strength comes -from the
working of thb market place in
mines,
fabricating plants — is designed to keep Anaconda first in
ferrous metals.
in the United States
strength has been • created. We
Company's current program of expan¬
and
we
can't permit it not to be, because
that is the proeess by. .which our :
in aluminum reflects Anaconda's continuing; determina*
to move
that
,
-
■
"j
Well, I said, that may be so,
but I just! want to point out to
.
early in 1954.
*.
Wood, Struthers
■
.
Biscoe, Jr.
Boston
fine, this matter of free¬
dom, but we just couldn't permit
it."
v
y
."Whiting, Weeks & Stubbs,
initial
"That is
capacity of about
City
Kean, Taylor & Co.,
New York City
were
unending stream. Yet, in the
to the
-
,
George A. Barclay
under¬
we
W. Pressprich & Co.,
New York
the
argument, ending up on this note:
should be completed
per year,
couldn't
the
end, he went back
broadening interest in nonferrous metals. The
a
simply
how
:
J
Charles L. Bergmann, Chairman
,
sending ovter there seemed to roll
$45,000,000 aluminum yplant,
plant at Columbia Falls, Montana, with
he
stand
j
|
•
marvels of American products and
how
j
SECURITIES
J. Emerson Thors
Kuhn, Loeb & Co.,
New York City
K. P. Tsolainos
Baker, Weeks & Hardin,
New York City
James D. Winsor, 3rd
Biddle, Whelen & Co.,
Philadelphia .'
'
'
titoOM
Volume 176
't P««tik/y|/|q#l
Number 5178
.
.
.The Commercial and
1
r*Jl/|»A«i/»J£)
v»
Tirf?'W
'TftaW FT*/Til$.l4!h; "> ^
it*
iF-d* ^
<V\l' ^
p 2*~ '
1 iSfMMMtoJL
Financial Chronicle
(2371)
INVESTMENT BANKERS ASSOCIATION
OF AMERICA
OFFICERS 1952-1953
President
V ice-Presid ent
Vice-President
Ewing T. Boles
The Ohio Company
Columbus
Lewis Miller
Malon C. Courts
First National Bank
Courts & Co.
of Chicago
Atlanta
Vice-President
Ralph £. Phillips
Vice-President
Vice-President
Walter A. Schmidt
Dean
Witter & Co.
Los
Angeles
Schmidt, Poole & Co.
Philadelphia
Norman P. Smith
Merrill
Lynch, Pierce, Fenner kBeane
New York City
47
48
(2372)
The Commercial and Financial Chronicle
...
Thursday, December 18,1952
IBA GOVERNORS
Charles
M.
Abbe
Blyth & Co., Inc.,
Boston
Co., New
Hugh Bullock
Bullock,
York City
Leslie J. Fahey
Fahey,
Clark
&
Co.,
Cleveland
J. G.
Heimerdinger
Walter, Woody &
Heimerdinger, Cinn.
Peabody
&
Stein
Courts
&
Atlanta,
Bros.
&
Boyce,
Philadelphia
York City
Forrester
Hugh D. Carter, Jr.
Calvin
New
W. K. Barclay, Jr.
Amyas Ames
Kidder,
H. C.
Co.,
Ga.
A.
Clark
Wainright & Co.,
Walter F. Blaine
Goldman, Sachs & Co.,
New York
Robert
Eaton
Howard,
Incorporated
Boston
Benjamin F. Frick,Jr,
Clarence E. Goldsmith
stix & Co.,
white, Weld & Co.,
lite,
St, Louis
citv
New York City
Joseph T. Johnson
John L. Kenower
The Milwaukee Co.,
Kenower, MacArthur
fc Co,, Detroit, Mich.
Milwaukee
&
Schoellkopf, Hutton &
Pomeroy, Inc., N. Y.C
Boston
Holden K. Farrar
William S. Hughes
Broome
Trust Co.,
York City
New
Chas. F. Eaton, Jr.
George K. Coggeshall
Smith, Barney & Co.,
Chicago
Wagenseller & Durst,
Inc., Los Angeles
E.
Guaranty
City
N.
of
T.
L.
sutro
&
Harter
Co
Co.,
sinr,
vm
San Francisco
Russell A. Kent
Bank
Robert
America,
A.,
St S.
San Francisco
George
The
B.
Kneass
Philadelphia Nat'l
Bank, Philadelphia
»I
Volume 176
Number 5178
.
.
.
James
H.
Lemon
Lemon
Twmiww
iwwv A
I
rtM«
AMU
fw,
n
The Commercial and Financial Chronicle
(Continued)
Robert G. Mead
Co., Washington, D. C.
Stanley N. Minor
Stone
&
Pacific Northwest
Kay, Richards & Co.,
Hornblower & Weeks,
Company, Seattle
Pittsburgh
Chicago
&
Webster'
Securities Corp.,
Nathan K.
Parker
Charles R. Perrigo
Chicago
J.
John
Quail
&
Quail
Stuart
Co.,
Paine,
Jackson
Davenport, Iowa
New
Joseph
L.
Ryons
Garfield
R.
Reed
Webber,
&
Curtis,
York
J.
William
Clark,
New
M.
Rex
Philip J. Rhoads
& Co.,
York City
First
Dodge
&
Taussig
National
Arthur
S.
Charles
Torrey
Bank
Trust Company,
Oklahoma
City
Taussig, Day & Co.,
Inc., St. Louis
Lester, Ryons & Co.,
Los Angeles
Walter S. Robertson
Scott &
Stringfellow,
Richmond, Va.
City, Okla.
S.
Yrtis
W. C. Pitfield & Co.,
Glore, Forgan & Co.,
Ltd., Montreal
Chicago
Charles W. Warterfield
First American
National
Bank,
Nashville
Chas. B. White
Hempstead Washburne
,
tinrris
Hall
&
Chicago
Co
Chas. B. White h Co.,
'
Houston
l
/<1)Q
\fc
(2373)
IBA GOVERNORS
Johnston.
cjo.n
Paul E. Youmans
Woodard-Elwood
Co., Minneapolis
&
■
Henry J. Zilka
Bosworth, Sullivan &
Lawrence B. Woodard
Conrad, Bruce & Co.,
Portland. Or eg.
Co., Inc., Denver
I
iWffl
49
-;
,
The Commercial and Financial Chronicle
...
Thursday, December 18,1952
*
t
Pictures Taken at 1952 IBA Convention
Ewing T. Boles, The Ohio Company, Columbus, new
President, presenting plaque to Joseph T. Johnson,
The
Milwaukee
New
Officers-—1952-1953:
National
Company, Milwaukee,
retiring President
Mr.
&
Mrs.
Joseph T.
Company,
Johnson, The
Milwaukee
Milwaukee
Ralph E. Phillips, Dean
of Chicago; Malon C. Courts, Courts
Columbus; Walter A. Schmidt, Schmidt,
Merrill Lynch, Pierce, Fenner
Bank
pany,
Witter A Co.; Los Angeles; Lewis Miller, First
A Co., Atlanta; Ewing T. Boles, The Ohio Com¬
Poole A Co., Philadelphia; Norman Smith,
A Beane,
New York City
Newiy elected Governors:
William S. Hughes, Wagenseller A
Durst, Inc., Los Angeles; Robert G.
Mead, Stone A Webster Securities Corporation,
Chicago; Nathan K. Parker, Kay, Richards A Co.,
Pittsburgh; Garfield J. Taussig, Taussig, Day A Co., St. Louis; Arthur S.
Torrey, W. C. Pitfield A
Co., Ltd., Montreal; Charles S. Vrtis, Glore, Forgan A
Co., Chicago; Paul E. Youmans, Bosworth,
Sullivan A Co., Denver; Charles F.
Eaton, Jr., Eaton A Howard, Incorporated, Boston
Municipal Securities Committee;
Lewis
Miller, First National Bank,
Hugh
H.
Bullock, Calvin Bullock, New York City;
Wrong, Canadian Ambassador to the
States; Murray Hanson, Investment Bankers
Association, Washington D. C.
Hume
United
Mrs.
Thomas
Beckett, Dallas; Frederic P. Mullins,
Masten A Co., Pittsburgh
A. E.
Chicago, Chairman
Investment
Companies Forum: Edward S. Amazeen, Coffin A
Burr, Incorporated, Boston (Chairman);
Rogers, New York Herald Tribune, New York City; John
Sheffey, National Association of
Companies, New York; Arthur Wiesenberger, Arthur
Wiesenberger A Co., New York
City; Maurice Sandberg, A. E. Weltner A
Co., New York City; Robert L. Osgood, Vance, Sanders
A Co.,
Boston; George Mathison, Milwaukee Sentinel, Milwaukee; Theodore C.
Henderson, T. C.
Henderson A Co., Des
Moines, Iowa; Ray Trigger, Investment Dealers Digest, New York
City;
Herbert
R. Anderson,
Distributors Group, Incorporated, New York
City; Charles F. Eaton, Jr.,
Eaton A Howard,
Incorporated, Boston; Paul Johnston, Barron's Weekly, New York City; Walter L.
Morgan, The Wellington Company, Philadelphia;
\yilliam McK. Gillingham, Business Week, New York;
Paul A. Just, Television Shares
Management Co., Chicago
Donald
Investment
Joseph T. Johnson, The Milwaukee Company, Mil¬
waukee; William A. Patterson, President,
United
Air
Lines
John
S. Linen,
The Chase National Bank of th
City of New York; Walter F. Blaine, Goldman,
Sachs A Co., New York City
Wlii IU4W »■ flW /HfrVf' <1
Volume 176
Number 5178
.
.
.
Darnall
Company of America, addressing
Yvui.am
of
addressing Convention
Wallace, Bache & Co., New York City; Homer Browning, Marine Trust
Company of Western
York, Buffalo; Chester A. Atwood, L. F. Rothschild & Co., New York
City; Mrs.
Mrs. Homer Browning; Alfred B. Averell, Bache <& Co., New York
City
McC.
Martin,
Governors
of
the
Jr.,
Chairman
Federal
of
Reserve
the
Board
System,
A.
Finance
t*arry
McDonald, Administrator, Reconstruction
Corporation, addressing the Convention
addressing the convention
Dalenz,
Calvin
Bullock,
New
York
City;
Mrs.
Graham
Jones; Raymond D. Stitzer, Equitable Securities Corporation, New
York City; H. Lawrence Bogert, Jr., Eastman, Dillon & Co., New
York City; Graham Jones, Cooley & Co., Hartford, Conn.
torffJ.
Vta,
VJ "WHS***..-H ##V'
i
#* 1 w' i -t ' t
u \
i
V
^
'»?
»
/"lA*
JuSC WR
(2875)
Darnall Wallace;
William A. Patterson, President of United Air
Lines,
McG.
-W*W \WWWWf«l} fit
New
Convention
!
John
ii^HW
fF&k* !WW
51
Hollywood Beach Hotel, Florida
Carrol M. Shanks, President, Prudential Life Insur¬
the
M *
The Commercial and Financial Chronicle
At
ance
.
Benjamin
Edward
F.
D.
Jr., Stix & Co., St. Louis; Edward D. Jones,
&
Co., St. Louis; Arthur A. Christophel,
Gardner, St. Louis; Garfield J. Taussig,
Taussig, Day & Co., St. Louis
Jrrick,
Jones
Reinholdt
&
Ewing
T.
incoming
Boles, Thp Ohio Company, Columbus,
President, delivering inaugural address.
Alfred Rauch, Kidder, Peabody & Co., Philadelphia;
Robert C. Johnson, Kidder, Peabody & Co.,
New
Walter
York
City
J. Monro, Schoellkopf, Hutton
& Pomeroy, Inc., Buffalo;
George K. Coggeshall, Schoellkopf, Hutton & Pomeroy, Inc., New
City; Edward B. Hall, Harris, Hall <& Co. (Incorporated),
Chicago; Mrs. George K. Coggeshall
York
52
The Commercial and Financial Chronicle
(2376)
Elvin
K.
Walter
Popper, I. M. Simon & Co.,
Ainsworth, Metropolitan St.
W.
St.
A.
Louis
& Co., Baltimore; Stuart R. Reed,
Curtis, New York City; Elisha Riggs
Co., Baltimore; Louis G. Mudge,
International Bank, New York City
L.
Baney, E. R.
Webber, Jackson
Jones, E. R. Jones
Artnur
Paine,
G. Lanston & Co., New York City; Mr. & Mrs.
Salomon Bros. & Hulzler, New York City; Mr. & Mrs.
Howard Butcher, 3rd, Butcher & Sherrerd, Philadelphia
Mr. & Mrs. Leonard M. Horton, Aubrey
St. Louis;
Louis Co.,
Jones
&
&
von
Theodore
Jacob
Mrs.
Glahn,
Henry P. Heid, Jr., Robinson-Humphrey Co., Atlanta; Mrs. Claude
Wilhide, Baltimore; Mr. & Mrs. Edwin B. Horner, Scott, Horner &
Mason, Lynchburg, Va.; Joseph L. Morris,
Robinson-Humphrey Co.,
Atlanta
Mr.
C.
Thursday, December 18,1952
Stone,
Seymour
Dean
Asiel
&
Owens,
Witter
&
Co.,
Miami;
Co.,
New
New
York City;
Austin Brown,
York City
Mrs. Aloert T.
&
John
...
C.
N.
Armiiage, Cottin & Burr, Incorporated, Boston;
Clark, Wachovia Bank & Trust Company, Winston-Salem,
C.; Mr. & Mrs. Walter W. Craigie, F. W. Craigie & Co.,
Richmond, Va.
^."mrrrT
C*
Mr. & Mrs. Clarence E. Sample, Mercantile National Bank, Dallas; Mr. & Mrs. Alfred J. Stalker,
Kidder, Peabody & Co., New York City; Mr. & Mrs. Charles C. Pierce, Rauscher, Pierce & Co., Dallas;
Mr. & Mrs. R. W. Ewing, A. E. Masten & Co., Wheeling, W. Va.: Mr. & Mrs. Louis J. Kocurek,
Rauscher, Pierce & Co., San Antonio; Mrs. Frank Carr, Chicago
V. 1 hackara, Byrne and Phelps, New York
City;
Herbert
V.
B.
Gallager,
Yarnall
&
Co.,
Philadelphia;
Gerald B. West, Stone &
Webster Securities Corp., New York City
Sidney
L.
Weedon, Hugh
Broad
Street
W.
Long & Co., Inc., Elizabeth, N. J.; Mr. & Mrs. Woodford
Corp., New York City; Mrs. Sidney L. Weedon;
A. B. Boss, Broad Street Sales Corp., Boston
Sales
Mr. & Mrs. Charles
,
Matlock,
Mr. & Mrs. William N.. Edwards,
First Southwest
#
;/!
r
f
;
Charles
r-
David
M. Wood, Wood, King & Dawson, New York
City;
Dudley C. Smith, Investment Bankers
Association, Chicago;
Robie L. Mitchell,
Mitchell
&
Pershing,
William N. Edwards & Co., Ft. Worth
;
New
York
City
Mr. & Mrs. Thomas Beckett,
Company, Dallas; Mr. & Mrs. T. E. Graham, First National Bank, Ft.
Worth, Texas
■
Voiume 176
Number 61*78
.
.
.
the Commercial and Financial Chronicle
(2377)
53
f.
Charles
R.
Mosser,
Hornblower
A
Weeks, New
City;
Charles
R.
Perrigo,
Hornblower
A
Weeks, Chicago; J. Wesley Hickman, Schneider,
Bernet
A
Hickman, Dallas
York
William
A.
M.
M. Grubbs, Jenks, Kirkland A
Grubbs, Pittsburgh; Mr. & Mrs. Milton G. Hulme, Glover
MacGregor, Pittsburgh; Mr. & Mrs. Nathan K. Parker, Kay, Richards A Co., Pittsburgh;
Harold
X. Schreder,
Distributors Group, Incorporated, New York City;
Mr. & Mrs.
H.
Hammond, Braun, Bosworth A Co., Chicago; Clifton
Hipkins, Braun, Bosworth A Co., New York City; Daniel O'Day,
Trust Company of Chicago, New York City; Harold J.
Schluter, First National Bank of Chicago, New York City
Northern
Mrs. Joseph H. Fauset, Fauset, Steele A Co.,
Pittsburgh; A. Webster Dougherty, A. Webster
Dougherty A Co., Philadelphia
Mr. &
Special Rights
Committee;
Francis
M.
Brooke,
Jr.,
Brooke
A
Co.,
Walter A. Schmidt, Schmidt, Poole A Co., Philadelpnia, Chairman
of
Governors
B. Wise, Weeden A Co., New York City;
Mullaney, Mullaney, Wells A Co., Chicago;
Philip J. Rhoads, First National Bank A
Trust Co., Oklahoma City, Okla.
Joseph
Paul L.
Philadelphia
Guy H. Phillips, Caldwell-Phillips Co., St. Paul; E. Merrill Darling,
Kidder, Peabody A Co., Bdpton; Mrs. Albert T. Armitage;
Robert L. Osgood, Vance,\Sanders A Co., Boston; Albert
T. Armitage, Coffin A Burr, Incorporated, Boston
Board
A
Robert
L.
Harter, Sutro A Co., San Francisco; Mrs. Samuel L.
Philip M. Stearns, Estabrook A Co., Boston; (standing)
Varnedoe,
Varnedoe, Chisholm A Co., Savannah;
Paul
L.
Mullaney, Mullaney, Wells A Co., Chicago
Varnedoe;
Samuel
L.
Meeting
Mr.
&
Mrs.
John
San Antonio;
Russ
State
Legislation
Committee;
Charles
S.
Vrtis,
Glore,
Forgan
D.
Williamson,
Dittmar
A
Mr. & Mrs. Edward D. Muir,
A Co., San Antonio
A
Co.,
Chicago,
Chairman
Co.,
4
54
.
/
The Commercial and Financial Chronicle...
(2378)
.
'
,
Thursday, December 18,1852
J*
Bert
Mr.
&
Mrs.
St.
George
Herman
Walter
J.
C.
I.
C.
Sheedy,
Lyklema,
Ryan,
Mr.
Legg
Ryan,
C.
&
Co.,
Cleveland;
Allyn
A
Co.,
Co.,
Sutherland
A
Co.,.
New
York
City;
Toledo;
Donald
Si
Mrs.
John
F.
Bolger,
Shillinglaw, Bolger A Co., Chicago;
Wells A Co., Chicago; Wallace
A Co., Philadelphia
Paul L. Mullaney, Mullaney,
M. McCurdy, Thayer, Baker
Mr.
Laurence
E.
B.
Woodard,
City;
McFarland,
Wooaard-E.wood
A
Co.,
Mr. & Mrs. Charles S. Werner,
A Co., Minneapolis
Kalman
*
& Mrs. Hugh W. Long, Hugh W. Long A Co.,
Inc., Elizabeth, N. J.; Arthur J. C. Underbill,
Arthur Wiesenberger A Co., New York City
iv.r.
Mr. & Mrs. Myron F. Ratcliffe, Bache A Co., Chicago; Mr. & Mrs.
Wickliffe
Shreve, Hayden, Stone
A
Co., New York
City;
Lee H. Ostrander, William Blair A Company, Chicago
& Mrs. Rudolf Smutny, Salomon Bros. A Hutzler, New York City; Mr. & Mrs. Joseph
Ludin,
Dillon, Read A Co., New York City; Mr. & Mrs. Arthur S. Friend, Folger, Nolan Inc., Washington, D. C.
Chicago
u/P_°i8;- Fr®nk.Lucke, Laidlaw A Co., New York
A
Wertheim
Mr.
Company,
& Mrs. Joseph W. Sener,
A Company, Baltimore
McDonald
A.
Stein
Florida Securities
M. McCleary,
Petersburg;
John
Burt
Hempstead Washburne, Chicago; Leroy A. Wilbur, Stein Bros. A Boyce, Baltimore; C. Prevost Boyce,
Bros. A Boyce, Baltimore; Mr. & Mrs. Fred W. Gardner, Reinholdt A Gardner, St. Louis;
Joseph W. Dixon, American Securities Corporation, New York City
Horning, Stifel, Nicolaus A Company, Incor¬
porated, St. Louis; Joseph A. Glynn, Jr.,
Blewer, Heitner A Glynn, St. Louis
Mr.
&
Mrs.
Ewing
^r*' Mitchell A Merrill Lynch, Pierce, Fenner A Beane,
O. V. Cecil,
L. Mitchell,
Pittsburgh;
Mr,
T.
Boles.
The
Ohio
Company.
Columbus
New York City; Mr. & Mrs. Robie
Pershing, New York City; Mr. & Mrs. Anthony E. Tomasic, Thomas A Co.,
A Mrs. Henry L. Harris, Goldman, Sachs A Co., New York City
I"*
I.
I._
«•
M
,
t*?Tt
Volume 176
Richard
C.
Number 5178
.
.
.
The Commercial and Financial Chronicle
Ellsworth, Wm. P. Harper & Son & Co., Seattle; Mr. &
Edgar J. Loftus, R. S. Dickson & Co., Inc., New York City;
R.
Anderson, Distributors Group, Inc., New
York
City
Mrs.
Herbert
G.
Earl
Fridley & Hess, Houston; Mr. & Mrs. Douglas R. Hansel, Shields & Company,
City; Mrs. Cornelius Shields, New York City; Mr. & Mrs. Thomas Beckett, First
Dallas; Eugene P. Barry, Shields & Company, New York City
Southwest Company,
Stern Brothers & Co., Kansas
Waecherle, Kansas City, Mo.; James F.
Russell E. Siefert,
&
Philadelphia;
City, Mo.; Mr. & Mrs. Mark A. Lucas, Jr., Lucas,
Quigg, Paine, Webber, Jackson <ft Curtis, Chicago;
Edwards <ft Sons, St. Louis; Arthur Horton, Penington, Colket & Co.,
Mrs. Harley L. Rankin, Goldman, Sachs <£ Co., Philadelphia
Mr. &. Mrs. Richard Morey, A. G.
\
\
if
frt j l,jrfrYJf4rfhi^ t wv i n °i"amii'i;vi
55
Carver; Ralph Fordon, Fordon, Aldinger & Co., Detroit; Mrs. Kelton E. White, St. Louis;
Cyrus B. Aldinger, Fordon, Aldinger & Co., Detroit, Mich.; Mr. & Mrs. Harry
Theis, Albert Theis & Co., St. Louis
Mr. & Mrs. Carl H. Doerge, Wm. J. Mericha & Co., Inc., Cleveland;
Mr. & Mrs. J. Earl Jardine, Jr., William R. Staats & Co., Los Angeles
Fridley,
New York
Eisen
Grace
Houten, Heller, Bruce & Co., San Francisco; Mrs. Arthur E. Goodwin, Jr.; Mrs.
Sample; Mrs. Richard C. Van Houten; Clarence E. Sample, Mercantile National
Bank, Dallas; Arthur E. Goodwin, Jr., Rowles, Winston & Co., Houston
E.
Snerman
iM ■■flvi'
(2379)
Van
Clarence
i
Kelton E. White, G. H. Walker & Co., St. Louis; Paul A. Sellers,
The Illinois Company, Chicago; Alexander Forsyth, Calvin Bullock,
Denver; F. Vincent Reilly, Commercial & Financial Chronicle, N. Y. C.
Mr. & Mrs. Arnold Tschudy, Bank of America, N. T. & S. A., New York City; Mr. & Mrs. Henry
L. Prankard, 2nd, \Lord, Abbett & Co., New York City; Clarence A. Bickel, National Association of
Securities Dealers, Inc., Milwaukee; Mr. & Mrs. Ira Owen, Allison-Williams Company, Minneapolis
L. Thayer, Lehman Brothers, New York City; Richard B. Walbert, Lehman
Brothers, New
City; Edward H. Robinson, Schwabacher &. Co., New York City; John C. Clark, Wachovia Bahk
Company, Winston-Salem, N. C.; John F. Egan, First California Company, Inc., San Francisco^
Charles F. Matton, Wachovia Bank & Trust Company, Winston-Salem, N. C.
Robert
York
<fi
Trust
56
(2380)
The Commercial and Financial Chronicle
Irving H. Campbell, Bell, Gouinlock & Co., Toronto; Mrs. Arnold B. Massey; Mrs. Irving H. Campbell;
Mrs. William M. Alley;
Arnold B. Massey, Mills, Spence & Co., Toronto;
William M. Alley, A. E. Ames & Co., Inc., New York City
'
John
Latshaw, Uhlmann & Latshaw, Kansas City,
Mo.; Hugh Bradford, Southwestern Securities
Company, Dallas
York
City;
Joseph
Mr.
&
Mrs.
Thomas
M.
Johnson, Johnson, Lane, Space & Co.,
Savapnah; Joseph T. Johnson, The Milwaukee Company, Milwaukee;
Mr. & Mrs. Julian A. Space, Johnson, Lane, Space & Co., Savannah
Mr.
&
Mrs. James A. Cranford, Atlantic National Bank, Jacksonville,
Mr. & Mrs. Stewart A. Dunn, C. /. Devine & Co., New York City
F.
North,
Corporation,
W. Sydnor Gilbreath, Jr., First of Michigan Corporation, Detroit;
L. Morris, The Robinson-Humphrey Company, Atlanta
Mr. & Mrs. Russell M. Ergood,
Philadelphia;
Mr.
&
Jr., Stroud & Company, Incorporated,
Gilbert Hattier, Jr., White, Hattier <&
Sanford, New Orleans
Mrs.
Thursday, December 18,1952
Mrs. Frank T. Kennedy, New York City; Mr. & Mrs. Lewis F. Lyno, Mercantile National Bank, Dallas;
Clarence A. ttickei, National Association of Securities Dealers,
Inc., Milwaukee;
Ludlow
Robert W. Baird & Co., Milwaukee; Mr. & Mrs. David H. Callaway,
Jr., First of Michigan
New
...
Fla.;
Harry
A. McDonald, Reconstruction Finance Cor¬
poration, Washington, D. C.; Joseph T. Johnson,
The
Milwaukee
Mr.
Company, Milwaukee
& Mrs. William S.
Hughes, Wagenseller & Durst, Inc., Los
Angeles; Mr. & Mrs. John L. Kenower, Kenower, MacArthur & Co.,
Detroit
Number 5178
Volume 176
E.
Mr.
&
Mrs.
Andrew
&
Mrs.
Charles
Malon
C.
.
Williams,
S.
B.
C.
A.
Chicago;
World,
Courts, Courts
&
&
Co., New
York
A1 Seaber, A. M. Kidder & Co., Miami;
Herbert McNichoI, A. M. Kidder & Co.,
Miami
Beach,
&
Co., Atlanta
City;
A. M. Kidder &
Mr.
Rudolf Smutny, Salomon Bros. & Hutzler, New York City; Mr. & Mrs. Theodore A. von
Glahn, Salomon Bros. & Hutzler, New York City; Mr. & Mrs. Benjamin J. Levy,
Salomon Bros. & Hutzler, New York City
Mrs.
Mills, Newhard, Coon & Co., St. Louis;
White, Chas. B. White & Co., Houston;
M. Kidder
Fla.;
Garland
Wright,
Co., Ft. Lauderdale, Fla.
F.
D.
Mr.
&
Mrs.
Joseph P. Lombardo, Stubbs, Smith &
Lombardo,
Birmingham; John L. Blake, Eaton & Howard, Incorporated, Boston;
Mr. & Mrs. H. Wilson Arnold, Arnold & Crane, New Orleans
Farrell, City National Bank &
Norman
Peterson,
Equitable Securities Corpora¬
New York City; Eugene L. De
Fairman & Harris, Inc.; New York
tion,
M.
Rex,
Clark, Dodge &
Staebler, Sills,
City; William
Co., New York City
Trust Co., Kansas City, Mo.; Elmer G. Hassman,
Education
Committee
Fenner
meeting; Norman Smith, Merrill Lynch,
Beane, New York City, Chairman
&
Pierce,
Edward
B.
Charlotte,
Wulbern, R. S. Dickson
N. C.; George L. Martin,
&
Co.,
57
inc.,
International
New York City; David H. Callaway, Jr.,
First of Michigan Corporation, New York City
Bank,
Mr.
& Mrs. Jesse A. Sanders, Jr., panders & Newsom, Dallas; Mr.
White, Chas. B. White & Co., Houston; Gerald B.
West, Stone & Webster Securities Corporation, New York City
& Mrs. Charles B.
A. G. Becker
Co., Chicago; Thomas W. Evans, Continental-Illinois National Bank & Trust Co., Chicago; Mark A.
Lucas, Jr., Lucas, Eisen & Waeckerle, Kansas City, Mo.; Alan K. Browne, Bank of America, N. T. &
S. A., San Francisco; Milton S. Emrich, Julien Collins & Company, Chicago; S. David Lamon,
Blyth & Co., Inc., Los Angeles; Andrew S. Mills, Newhard, Cook & Co., St. Louis;
Harry Beecroft, Beecroft, Cole & Co., Topeka
&
J
E.
(2381)
The Commercial and Financial Chronicle
E. Ray Allen & Co.,
Bradshaw, Woodmen of the
Omaha, Nebraska
E.
Mr.
Emii
.
Allen,
Ray
D.
.
H.
Albert
Ascher, W. E. Pollock & Co., Inc., New
York City; Henry L. Harris, Goldman, Sachs & Co.,
New York City; Gordon Reis, Jr., Seasongood
&
Mayer,
First
Cincinnati; Brainerd H. Whitbeck,
Corporation, New York City
Boston
*
Gordon
Calvert,
Investment
Banners
Association,
Washington, D. C.; Frank L. Reissner, Indianapolis
& Share Corporation, Indianapolis, Ind.; Al¬
Bond
bert T. Armitage,
Coffin <ft Burr, Incorporated, Boston
(2382)
58
block Exchange
Carl
The Commercial and Financial Chronicle... Thursday, December 18,1852
Relations
Committee; James F. Burns, Jr., Harris, Upham A Co., N. Y. C., Chairman
H.
Doerge, Wm. J. Mericka A Co., Inc., Cleveland; Frank P.
Gallagher, Kidder, Peabody A Co., New York City; Frederick J.
Bolton, H. V. Sattley A Co., Inc., Detroit; R. C. Chapman,
Fulton, Reid A Co., Cleveland; Harold R. Chapel,
McDonald-Moore A Co., Detroit
Charles F. Mat ton,
Wachovia Bank A Trust Co.,
Winston-Salem, N. C.; John C. Clark, Wachovia
Trust Co., Winston-Salem, N. C.; Edwin B.
Horner, Scott, Horner A Mason, Inc., Lynchburg,
Va.; Frahcis D. Bartow, Jr., Bartow Leeds
A Co., New York City
Bank A
John
G.
St.
Heimerdinger, Walter, Woody A Heimerdinger, Cincinnati;
Magnus, Magnus A Co., Cincinnati; John M. Heimerdinger,
Woody A Heimerdinger, Cincinnati; Stanley G. McKie,
Julian A.
Walter,
Weil, Roth
A Irving Co., Cincinnati; Charles A.
Richards, Field, Richards A Co., Cincinnati
William
Louis
S.
Hildreth, Peoples National Bank, Charlottesville, Va.;
D.
Moore, Branch, Cabell A Co., Richmond, Va.;
Rand, Rand & Co., New York City; Julian A.
Magnus, Magnus & Co., Cincinnati; James W. Chandler,
W. L. Lyons & Co., Louisville, Ky.
Roderick
Thorburn
Quitman R. Ledyard, J. C. Bradford A
Co., Nashville; Thomas Whiteside, Chace, Whiteside, West A
Winslow, Boston; William J. Anderson, Jr., cEquitable Securities
Corporation, Nashville; Donald B.
Brayshaw, Lord, Abbett A Co., Atlanta; Bayard Dominick, II, Dominick A
J.
Kary
Beavers,
Trust
Company
of
Georgia,
Atlanta;
G.
Dominick, New York City;
Shelby Friedrichs,
Howard, Weil, Labouisse, Friedrichs A Co., New Orleans
Room
Ralph
Lewis
Phillips, Dean Witter A Co., Los Angeles;
J.
Whitney, Jr., Dempsey-Tegeler A Co,.
Angeles; Edward Hopkinson, Jr.,
Drexel
A Co., Philadelphia
Los
Volume 176
Number 5178
.
.
.
The Commercial and Financial Chronicle
(2383)
59
I
H.
Wilson
Edward
Arnold, Arnold <fi Crane, New Orleans;
Muir, Russ & Co., San Antonio
D.
Mr.
&
Mrs. Roderick D. Moore,
Branch, Cabell & Co., Richmond, Va.; Mr. & Mrs. Eugene H. Cassell,
C. F. Cassell & Co., Charlottesville, Va.; Mr. & Mrs. James W.
Chandler, W. L. Lyons & Co., Louisville
Edward
S. Amazeen,
Coffin & burr, Incorporated, Boston; Walter
Schmidt, Schmidt, Poole & Co., Philadelphia; Edwin A. Stephen¬
Chase National Bank, Chicago; Wm. Russell Barrow, Barrow,
Leary & Co., Shreveport, La.; James W. Means, Courts <fc Co., Atlanta
A.
son,
George H. Armstrong, New York Hanseatic Corpo¬
ration, New York City;
Mr. & Mrs. Arthur C.
Turner, New York Hanseatic Corporation, New York
City; Robert M. Work, Salomon Bros. & Hutzler,
Chicago
,
Julian
W.
Tindall, /. W. Tindall & Co., Atlanta; James W. Speas,
Bank, Atlanta; Lloyd B. Hatcher, Trust Company of
Atlanta; J. Hollis Austin, J. W. Tindall & Co., Atlanta;
Kary Beavers, Trust Company of Georgia, Atlanta
First National
Georgia,
J.
New York
&
Mrs.
Bankers
Keiton
E.
New York City
Ralph Fordon, Fordon, Aldinger & Co., Detroit; Joseph H. Fauset,
Fauset, Steele & Co., Pittsburgh; E. Jansen Hunt, White, Weld &
Co., New York City; Cyrus B. Aldinger, Fordon, Aldinger <£ Co.,
Detroit; Henry R. Hallowell, Hallo well, Sulzberger & Co., Philadelphia
White, G. ti. Walker & Co., St. Louis; Miss Mary R.
Lincoln, Investment
Association, Chicago; Miss Mary Lou Coburn, Investment Bankers
Association,
Chicago; Mr. & Mrs. Harry Theis, Albert Theis & Sons, St. Louis
'
Rand, Rand & Co., New York City; David H. Callaway, Jr., First of Michigan Corporation,
City; Arthur S. Friend, Folger, Nolan, Incorporated, Washington, D. C.; William T. Kemble,
& Co., Boston; J. Mills Thornton,
Thornton, Mohr & Co., Montgomery, Ala.;
Joseph P. Lombardo, Stubbs, Smith & Lombardo, Inc., Birmingham;
Delmont K. Pfeffer, National City Bank of New York
Estabrook
Mrs. Walter Morse, Lehman Brothers,
Mr.
Mr.
"
Richard N.
Mr. &
&
Mrs. Jesse P. Donnally, Peoples National
Bank, Charlottesville, Va.; Edward G. Webb,
Scott, Horner & Mason, Inc., Lynchburg, Va.
t
Harold
S.
Backus, Investment Dealers' Association of
Canada, Toronto; Mrs. Edward S. Johnston,
New York City; W. T. K. Collier, Collier, Norris &
Quinlan, Montreal; Mrs. Howard W. Hunter,
Toronto; Mrs. Eric S. Morse, New York City; Mr. & Mrs. Arthur S. Torrey, W. C. Pitfield &
Co.,
Ltd., Montreal; D. B. Weldon, Midland Securities Corpn., London, Ont.,
Canada;
Andrew S. Beaubien, L. G. Beaubien &
Co., Montreal
60
Mrs.
&
The Commercial and Financial Chronicle
(2384)
Kimball
L. Varnedoe, Savannah; Elvin K. Popper, I. M. Simon
Louis; Mr. & Mrs. Joseph P. Lombardo, Stubbs, Smith
Lombardo, Birmingham; Mrs. Lewis F. Lyne, Dallas
Samuel
Co.,
&
Mrs.
Mr.
Courts
Securities
Julian W. Tindall, Atlanta; Malon C. Courts,
&
Co., Atlanta;
Mr. &
Mrs. Joseph T.
Johnson, The Milwaukee Company, Milwaukee
First
&
Mrs.
Valentine,
Vance, Sanders & Co., Boston; Carr Payne,
Corporation, Nashville; F. Vincent Reilly,
Chronicle;
Lewis
F.
Lyne,
Mercantile
Dallas; Arthur E. Goodwin, Jr.*, Rowles, Winston
& Co., Houston
Cumberland
Securities
Commercial
St.
&
National
Bank,
Financial
Mrs.
&
E.
Goodwin, Jr., Houston, Tex.; James E. Roddy,
Mrs. Richard Morey, St. Louis;
Reis, Jr., Cincinnati; J. Kary Beavers, Trust Company
Georgia, Atlanta; Mrs. Kimball Valentine, Boston
Jones, Inc., New Orleans;
Gordon
of
Donald
&
National
Thursday, December 18,1952
Arthur
Scharh
Mrs.
...
Scltsam, Seltsam. Hanni & Co., Topeka; Mr. & Mrs. Richard B. ivicc.nt.re,
Exchange Commission, Washington, D. C.; Mrs. Harry Beecroft; Philip J. Rhoads,
Bank and Trust Co., Oklahoma City;
Harry Beecroft, Beecroft, Cole & Co., Topeka
George S. Channer, Jr., Earcus, Kindred & Co.,
Cnicago; Qunman K. Ledyard, J. C. Bradford & Co.,
Nashville; Wayne Martin, Milhous, Martin & Co.,
Atlanta,
John
G. Heimerdinger, Walter, Woody &
Heimerdinger, Cincinnati;
Stanley G. McKie, Weil, Roth & Irving Co., Cincinnati; Robert H.
Cook, B. J. Van Ingen & Co. Inc., Miami; F. Boice Miller,
B. J. Van Ingen & Co. Inc., Miami; L. Walter
Dempsey,
B. J. Van Ingen & Co. Inc., New York
City
Mr.
&
Mrs.
John
S.
Loomis, The Illinois Company,
Chicago
Mr. &
Ga.
Mrs. W. Carroll Mead, Mead, Miller <tk
Co., Baltimore; Mr.
Mrs. William W. Mackall, Mackali &
Coe, Washington, D. C.
&
.
Carnot
W.
Evans, Harris, Hall
Co. (Incorpo¬
rated), Chicago; Arthur R. Robinson, Anderson &
Strudwick, Richmond, Va.; S.„ E. Johanigman,
The Milwaukee Company, Chicago; Robert V.
Wehrheim, Philadelphia National Bank, Phila.
Standing: William H. Clark, Merrill, Turben & Co., Cleveland; Walter A. Schmidt, Schmidt, Poole
& Co., Philadelphia; Mrs. Jesse P.
Dannally, Charlottesville, Va.; James W. Chandler, W. L. Lyons &
Co., Louisville; Edwin B. Horner, Scott, Horner & Mason, Lynchburg, Va.; Mrs. Alfred J. Stalker,
New York City;
Scott Perry, Gordon Graves & Co., New York City; Mrs. William S. Hildreth,
Charlottesville, Va.;
Gordon
Crouter,
DeHaven
&
Townsend,
Crouter
&
Bodine,
Philadelphia;
Seated: K. P. Tsolainos, Baker, Weeks & Harden, New York
City; Orlando Brewer, Phelps, Fenn &
Co., New York City; Mrs. Scott Perry, Mrs. Edwin B. Horner; Mrs. William H. Clark;
Mrs.
Orlando
Brewer
Carnot W. Evans, Harris,
Hall & Co. I incorpo¬
rated), Chicago; Lewis Miller, First National Bank,
Chicago; Monroe V.Poole, George B. Gibbons & Co.,
New
York
City; Marquette de Bary,
F. S. Smithers & Co., New York City
Volume 176
Number 5178
.
.
.
The Commercial and Financial Chronicle
(2385)
il>» urn
Elisha
Riggs
Jones, E. R. Jones & Co., Baltimore; Mrs. Charles A. B. Boss; Walter H. Weed, Jr.,
Corporation, New York City; Charles A. B. Boss, Broad Street Sales Corp., Boston;
Mrs. and Mr. Paul B. Hanrahan, Hanrahan &
Co., Worcester, Mass.
Arthur
Union Securities
Wa<iace
ivi.
delphia;
Co.,
New
McCuray, I Payer, natter & Co., PnilaWilliam M. Cahn, Jr., Henry Herrman &
York City; Milton G. Hulme, Glover &
MacGregor,
Pittsburgh;
Wells
&
Paul Mullaney,
Co., Chicago
Mullaney,
branding:
Ahearn,
Rockland-Atlas
National
Bank
of
Boston; Herbert A. Dewitz, J. A. Hogle & Co., Salt
City, Utah; Warren D. Chiles, Chiles-Schutz
Lake
Co., Omaha;
Mr.
&
Mrs.
Denver;
A. A. Anastasia, Wall Street Journal,
New York City
E. Stone, Stone, Moore & Co.,
Mrs. Malcolm F. Roberts, Denver
Ernest
*#4
J.
Neumark, H. Hentz & Co., New York City; Wilbur E. Hess, Fridley
Maynard, Shearson, Hammhl & Co., New York City; H. Stanley Krusen,
& Co., New York City; Mrs. Walter Maynard
F. Brian Reuter Mellon National Bank, Pittsburgn; Frederick
1. Sevmg, Butcher & Sherrerd,
Philadelphia; Mrs. Milton G. Hulme, Pittsburgh; Charles McK. Lynch, Jr., Moore, Leonard & Lynch,
Gustavo
& Hess, Houston;
Shearson, Hammill
A.
Alexisson, Granbery, Marache & Co.,
City; J. W. Wolff, Zuckerman, Smith &
York City; Elvin K. Popper, /. M. Simon
Co., St. Louis; Arthur Nelson, Burnham & Co.,
New
York
Pittsburgh;
Co., New
Mrs.
&
'
Jonn
Walter
61
Mrs. Milton Trost, Louisville; Wilbur E. Johnson, Sr., Johnson & Johnson, Pittsburgh;
Arthur Nelson, New York City.
Seated: Mrs. Wiibur E. Johnson;\ Mrs. Nathan K. Parker,
Pittsburgh; Mrs. Robert W. Ewing, Wheeling, W. Va.; Mrs. Frederick T. Seving;
Mrs. F. Brian Reuter; Mrs. Charles McK. Lynch
Benjamin J. Levy, Salomon Bros. & Hutzler, New
York City; Robert G. Rowe,, Stroud & Company,
Incorporated, Philadelphia; Rudolf Smutny, Salomon
Bros. & Hutzler, New York City; Francis B. Bowman,
Chase National Bank of the City of New York
James
S.
David Lamon, Blyth & Co., Inc., Los Angeles;
G. Webb, Scott, Horner & Mason, Lynch¬
burg, Va.; Reginald M. Schmidt, Blyth & Co., Inc.,
New
York
City; John
V. Hollan,
Barr
Brothers & Co., New York City
Edward
Ryan, C. J. Devine & Co., New York City; Howard L. layior,
& Co., Beverly Hills, Calif.;
William G. Carrington, Jr.,
Haupt
&
Co.,
New
York
City;
Robert
W.
Borden,
R. H, Moulton & Co., San Francisco; Vernon E. Kimball,
J. Barth & Co., San Francisco
Taylor
Ira
New York City
George M. Gregory, Gregory & Son, Inc., New York
City; William H. Gregory, Jr., Bonner & Gregory,
New
York
City;
Jerome
F.
Tegeler,
DempseyTegeler & Co., St. Louis; Frederick W. Straus,
Straus, Blosser & McDowell, Chicago
Miss
Jean Lyons,
H.
Lyons & Shafto, Boston; Carroll
Little, C. H. Little & Co., Jackson, Tenn.
62
Robert
the
Mrs.
The Commercial and Financial Chronicle
(2386)
Federal Reserve Bank, New York City; Sheldon R. Green, Chase National Bank of
York, New York; William R. Rovensky, Hornblower & Weeks, New York City;
Mrs. Arthur D. Lane, New York City; Mr. & Mrs. J. Mills Thornton, Jr.,
Thornton, Mohr & Co., Montgomery, Ala.; Mrs. Thorburn Rand, New York City
G.
City
Rouse,
of
Sheldon
Arthur
c
*
*
R.
wy
Chesley &
Sawers,
■
/**f_
•
_
_
t
*
J
Co., Chicago;
_
j
/—*
Mrs. Charles
w.t
-
*
—
D1
V
...
Thursday, December 18,1952
Carey; Kenneth L■
Crowell, AHarris
viUiii*
Ol
#11*^
*+
n
m
Trust <6
All>•
>
—
New
R.
Green;
John Raiss, Burnham & Co.,
New York City; Bayard
Dominick, II, Dominick & Dominick, New York City;
Mrs. John Raiss; Albert E. Schwabacher, Jr.,
Schwabacher & Co., San Francisco
Roy W. Doolittle, Doolittle & Co., Buffalo; John C.
Maxwell, Tucker, Anthony & Co., New York City;
Arthur H. Lamborn, DeCoppet & Doremus,
New York City
«
Irving Koerner, Allen <fc Company, New York City; C. Merritt Coleman, Allen & Company, New York
City; Francis M. Brooke, Jr., Brooke & Co., Philadelphia; Arthur Horton, Penington, Colket & Co.,
Philadelphia; Joseph J. Corby, Allen & Company, New York City
Cleveland
Mrs.
Robert
E.
Clark, New York City;
B. Knox and Co., Ft.
Mrs.
Joseph
Mrs. Leonard J.
Paidar, Chicago;
Andrew
B. Knox, Andrew
Lauderdale, Fla.; Henry M. Ufford, Calvin Bullock, Atlanta;
Jr., Chicago; Mrs. Willard T. Grimm, Chicago
C. Houston,
,
_V
T
.
**
*
,
Gerald P. Peters, Peters, Writer A Christensen, Inc.,
Denver, Charles A. Parcells, Jr., Charles A. Par cells
& Co., Detroit; Carl Stolle, G. A. Saxton & Co., Inc.,
New York City
>
Stanley N. Minor, Pacific Northwest Company, Seattle; Edward C. George, Harriman Ripley & Co., Inc*
Chicago; Harold J. Berry, Harriman Ripley & Co., Inc., New York City; David Skinner, Harriman
Ripley <ft Co., New York City; Russell Welles, The Hanover Banjk, New York City
Edward H. Robinson, Schwabacher & Co., New York
City; Fred W. Hudson, Ball, Burge & Kraus,
Cleveland; Albert Augustus, Ball, Burge & Kraus,
Charles R.
Pejrrigo, Hornblower & Weeks, Chicago; Mrs. and Mr. O. Paul Decker, American National
Bank, Chicago; Clifton P. Walker, Paul H. Davis & Co., Chicago; Charles R. Mosser, Hornblower
& Weeks, New York City; Joseph E. Smith, Union Securities
Corporation, New York City
Volume 176
Number 5178
-
.
.
The Commercial and Financial Chronicle
.
(23tny
Continued from
page 30
tain
companies* which, for one
or
another, are unable to
conduct - their
affairs under the
reason
..)
-
corporate
v ■
Only Moderate Tax Cuts
there
a
every
reason
to
limitation
been
believe
50%
would
eventually
decrease
the
increase
revenues
rather
as
than
shown
was
reluctant
sales
make
to
or
sultant
loss
through
their
10%
capital
payment
this
If
tax.
of
the
rate
a
reduced
was
objections
r
them
26%
to
of
(2) With respect to a reduction
in the capital gains
tax, a shorten¬
ing of the holding period, and an
increased deduction against other
largely
income for losses,
important to members of the In¬
vestment
Banking business than
it would
It is
might make some pro¬
gress. Last year it will be recalled,
Secretary Snyder, ' following the
we
direction
of
President
recommended
from.
25%
to
in
37^%
from 6 months to
a
protest- and
the
upon
that
a
and free
fit
saw
At
the
various factors in
raise
time
it
increase
was
in
of
view
the
the
tax
too
to
26%.
that
raises
suggest that our pro¬
Both changes should be
accomplish the maximum
period.
this
made to
unfavorable
drastic
not
should stress too strongly
the desirability of a change in rate
over the shortening of the holding
gram
revenues
felt
was
not
do
we
holding period and
capital markets, Congress
to
and cooperation among the
our Association,
mony
based
information > available
shorter
a
lower tax would increase
benefits.
in
(3) With respect to relief from
generally. Since tax reduc¬
tions
seem
double taxation of cor¬
porate dividends, it seems hardly
opinion that
our
the
in
be
order,
it
present
is
should make
we
following recommendations
to
necessary
to
exceedingly high
tal Gains Tax: A reduction in the
in
rate
the
holding
and
to
10%;
shortening of
a
period to
months,
increase to $5,000 in the
an
actual
no
are
fact the actual
fig¬
will
increase
favorable
more
the
revenues,
treatment
ac¬
corded to capital gains in the 1942
tax bill resulted
increase
the
in
large
corrected.
trustees
investment
and
It
should
and
more
than
will
alleviate
We have
situation.
the
allowance of
be
impractical to
seems
for
the
advisers
present, tax. rate .of
on
long-term capital gains has acted
deterrent to
a
mendations
for
their
under
counts
The result of this
to believe that
in
laws
ac¬
credit of
a
10%
ference
in
tax rate would greatly encourage
porations
making changes in portfolios. Of
be
this
course
payment' of
would
taxes
result, in
greatly
capital
free
to
everyone
:
where
*■
any
of
markets.
line
have
of
others
as
business
in
who
which
taxed
would
upon
corporations
laws
work
of
is
indicated
the
therefore
by
election,
last
Respectfully submitted,
THE
have
we /
every
the Mime is
reason to hope* that
propitious for having our
*
program.
nCOMMITTEE
In August we learned that Mr.
Stam, who is the adviser for
Committees
Revenue
had
taxation
made
in
about
suggestions
changes
in
forthcoming
the
for
Rush
tax
■■R.
.
legislation. We felt that it would
happen to be incorporated. A bill
which provided for this was in-
IBA
to
trodueed to
and
•
accordingly I have stated to
our
position on the various
again
in
Since
Mr.
Congress in 1950 and
1951
by
Representative
m
Reed
will
York*
the
be
new
desirable for the
him
seems
respect to retirement funds
ficers
and
employees of
of-,
as
corpora-
tions, because Congress has already recognized the p r i n c i p 1 e
involved by allowing this group
to participate
in social security
benefits
on
porate
employees.
the
basis
same
as
The
consideration
John
have learned that other groups
,
.
,
record with him
,
session.
lation
removal
passed is
matter
a
conjecture, but it is believed
that it
probably overlooked in
was
the
rush
cause
for
adjournment
of the lack of
j±s
far
no
other
strong
position
as
Our
the
bill
On
the
very
our
Should Support
their
efforts
view
in
this
out
which
reasonable
an
generalities
might
Stam
that
should
we
our
send
a
the
IBA
.^Finally, in
.
opin¬
Carl
its thanks and
Murray
of
invaluable
change in
.
this report,
express
to
advice
and
for
in
Parker
&
Red-
path, Washington, D. C.
Walton
Gus B.
Walton & Company,
his
help
Sullivan, Jr.
Auchincloss,
,
apprecia-
Hanson
Stutz
N.
White-Phillips Company, Inc.*
Davenport
•
•
»'
Committee again wishes to
tion
:
Detroit
Mark
be
measures
G. H. Walker & Co., St. Louis?
Baker, Simonds & Co.,
;
sup¬
convention which
closing
Martin
Ralph W. Simonds
this organization,
your
M.
George A. Newton
it
inade¬
be
j
Co.,
Murphey Favre, Inc., Spokane
expressed
answer
to
tax law. A
Harold
■
felt that
worthy
and
direc¬
technical
Lemon
Johnston, Lemon &
Washington, D. C.
to!; be would state in detail the views of
seem
seem
James H.
that the
Mr.
highly
was
Bank*
Memphis
em¬
they concen-"
the fact
of
Stam after this
the
advocate
new
and
were
New Orleans
Union Planters National
the
more
Labouisse
Howard, Weil, Labouisse,
Friedrichs & Company,
James C. Lancaster
by
plementary communication to Mr.
certainly it will fail
other hand,
;
,
our
of
some
were
con¬
efforts to have them included
in the
we
questionnaire
is
of
have
made
quate and therefore it is
members
;we
However,
tion. In
ion
may
Omaha
John P.
spon¬
give it their wholehearted support,
which
there
between
those
and
programs
trated
in
program
unless
know
we
conflicts
to take
Program
ambitious and
...
this matter
on
tax
..
\
Kirkpatrick-Pettis Co.,
be¬
or
purpose
.
.
Stewart R. Kirkpatrick
various
phatic about the capital gains tax
was
active
an
our
.
Hogle & Co.,
City
Salt Lake
trying to get enacted into
been
sent
sorship. It is
J. A.
the law.
than
of
..
about
of
Why suitable legis¬
not
was
James E. Hogle
gave
discrimination during its re¬
cent
in
on
phases of the leSIslatlon whlth
we are
Hinton
W.
Conrad, Bruce & Co., Seattle
being inter-
as
suggestions
,
Hagan, Jr.
Donald
.
ested in the tax program and havemacje
C.
_
business have also gone
our
Co., Inc.
Mason-Hagan, Inc., Richmond
were
Courts that
Malon
by
suggestions
the
to
informed
others.
this
&rGo., Inc.
Charlotte, N. C.
Louisville
.......
cor-
House
Dickson
The Bankers Bond
phases of the tax bill which have
he had written to Mr. Stam and I
It also
S.
S. Dickson
Thomas Graham
to Mr. Stam
good chance that this
will
*
,
f
views of the
be expressed
constituted our program. We
measure
dif¬
Inc.,
! v; Little Rock, Ark.
Charles B. White
carrying out the work of the Com*
Chas. B. White &
mittee.
Co., Houston
BESS
ac
cor¬
cannot
permit
3
o^
the
un¬
to
elect
to
same
basis
as
because
the
hardship
a
TOMORROW IS NOW IN SOUTHERN NEW JERSEY"
pro¬
present
upon
With the passage
cer¬
New
of the referendum for the Garden State Parkway,
Jersey will have the dream highway* of the future within three
short years.
This parkway will extend from the New York State line
%
i
DOOLITTLE
Established
•
•
MEMEERS
MEMBERS
NEW
NEW
YORK
YORK
CO
to
UNDERWRITERS
*•'
-
CURB EXCHANGE
(ASSOC.)
{• i
Atlantic
!
DISTRIBUTORS
—
DEALERS
»
way
,
of Buffalo and Western New York
*
into the
further
City Electric Company welcomes this 380 mile long park-
-
of visitors
Primary markets in all securities
.
*
tip of the State.
1919
STOCK EXCHANGE
;
'-V
the southern
area
to
our
it
It
serves.
'
*
means easy access
'%
*
.
•
•
to
,
.
'
*
-
*
*
for countless thousands
territory and unquestionably will hasten the
resort
development of
F'
•.
our
3,000
square
miles of opportunity.
MANAGER TRADING DEPARTMENT
JOHN A. .BRADT
LIBERTY BANK BUILDING
Telephone Washington 4970
RIALTO
70
I
BUFFALO 2, N. Y.
ATLANTIC CITY:
-
ST., BUFFALO 2, N. Y.
•„
Wire
to
TUCKER, ANTHONY & CO., NEW YORK CITY
>/cW
,
HELPING TO BUILD A
I
Direct Private
ELECTRIC COMPANY
Bell Teletype BU 46
BUILDING, LOCKPORT, N. Y.
NIAGARA
•
•
■
V;
.
be
Chairman of the House Ways and
Means Committee there is a
fairly
be included in the tax bill.
•
New York
interested
groups
"J "1
Harris, Upham & Co.,
City
Washington,- v
inquiries of
* '
James F. Burns, Jr.
Internal
on
^
Cincinnati
Colin
Joint
-
TAXATION
James M. Hutton, Jr., Chairman
W. E. Hutton &
Co.,
,
adopted.
the
FEDERAL
impartiality.
incorporated business
be
many
investors
the
results
by
standards
(4) We have supported the
vision
in the investment
banking business knows of
instances
basis
same
same
*
long-term
on
gains and in addition would help
Nearly
this
treatment
and "individuals
or
allow¬
received
Certainly
the
justified by
fairness
the
modest in
credit
dividends
on
which
the present
that
85%
an
corporations.
us
be very
fact
make
ance
supervision.
inquiry leads
the
an
advocated
received
to
us
view of the
reduction in the
a
to
seems
making recom¬
changes
dividends
on
26%
the
upon
is
try to find out to what extent
the
as
in
are
taxation and
anything
adjustment which
hope
has recently
large number of
a
unfair
patently
versus
Committee
Tax
why
reason
are
constitutes double
Furthermore,
years.
consulted with
to
rather
a
collected
taxes
prior two
the
in
no
entitled to all
when the new
the earnings. Consequently, taxes
levied
upon
corporate earnings sidered.
are
levied upon the stockholders
IBA Members
and any further tax upon them
tention
tions
their
partnerships. Certain-
is
earn¬
of the cor¬
owners
porations and
available to support our con¬
that these recommenda¬
ures
shareholders
The
dends.
.
there
amount of
small
the
level and then
them again
taxing
ings available to stockholders are
paid to them in the form of divi¬
deduction for losses against other
income.
•
While
addition
when
3
injustice
the
argue
taxing corporate earnings at an
of
Congress with respect to the Capi¬
tax
as
conduct
Ways and Means Committee
taxes
to
must
-
members of this group should not
have the right to elect to be taxed
(5)
Despite
year.
evidence
members
whether
doubtful
Exchange
probable that
ly to the brokerage business will
self-employed persons will be acgo along with this, and since it
corded the same treatment with
is essential to have complete har-:
lengthening:of the holding period
cur
is
members of
Stock
more
even
who confine their activities strict¬
the
and
in rate is
shortening of the holding period.
It
Truman,
increase
an
a
and the tax paid.
opinion, therefore, that
our
reduction
a
seem
and the changes
overcome
would be made
industry
our
because of the rules of the
to
be
would
York
there
ly
In
apply to
Exchange,
exchanges of securities
held by them because of the re¬
in
tax
New
who,
desirable
the estimates made by the Tax
Committee in the report submitted
by Malon Courts.
that
would
business
is
that
form.
this
public sentiment
the
and
93
'*'
INDUSTRY
'
•
■
GK£/tT£R SOUTHERN NEW JERSEY
>
:
•
•
1
•
AGRICULTURE
•
v
RESORTS
.
•
The Commercial and Financial Chronicle
(2388)
£4
1951—the
Continued jrom page
26
*L.'
actual
this
back to
get
and
advocate
its
first
the
at
than
AA
creasing profits at least to match
its increases in plant investment.
earlier
and
bonds,
an
in
the
of
savings banks. Much of this buying
Among
utility
offered at
3.17%,
of
but
buying
of
has resulted from changes
laws
the
in
much
of it
past
two
function
proper
represents accumulat¬
ing a desired position. At some
point, which we can't predict, this
demand will settle back to meeting
generation private enterprise re¬
acquiring at least some part of the
socialized segment of the business.
Electric Utility
Earnings
picture of Class A
privately owned elec¬
utilities for the first eight
the
earnings
and Class B
tric
period of 1952 compared
to the same period in 1951. The industry's volume of busi¬
months
operating revenues
and gross
ness
continue to increase and the earn¬
shows
1952
of
eight
first
the
for
result
ings
months
healthy
a
improvement over the comparable
period, with operating earn¬
1951
ings before Federal income taxes
and
17.1%
up
This
13.9%.
to
is
net income
up
in sharp contrast
which
report
previous
our
operating income for the
showed
calendar year 1951 up
net
and
1950
down
12.2% over
income
actually
1951
1952
with
taking' into
con¬
of
comparison
requires
sideration
important
two
tax
excise tax
changes. The
removed
as
this
was
large factor in the
pf Nov. 1, 1951 and
earning
sufficient
Jevel
requirement of
basic
the
to
at
power
attract
to
a
new
and particularly common
stock capital. Justifiable rate in¬
creases must not only be adequate
capital
for
but must also be
this purpose
undue
delay.
security an¬
genuinely concerned
without
granted
with
the
authori¬
regulatory
our
of
attitudes
and
record
of
some
increased
was
in
1952
stock issuance with its
dividend requirements
pending the time the new money
can
be put to work to produce
earnings. Affiliated companies in
the Bell System have sold an ag¬
sold
by competitive
bidding; but of these nine, six
were
required to be sold at bid¬
were
by
pattern
jurisdic¬
tions, and it is evidenced by the
unwillingness
of certain
major
utility investors to purchase se¬
curities
of
companies
in
such
vast
with
certain
to
respect
jurisdictions.
Electric Utility
The
Financing
the electric
of financing by
pose
industry
utility
1951
and
during
the
during
the year
first
10
to
when
have
com¬
comparable
1951
financing of the industry
has increased 20.9% in the first 10
months of this year over the same
given
manage¬
freedom
recognized
that
will depend upon the ex¬
recognition by companies
regulatory bodies of the need
earnings and dividends ade¬
of
of
markets have continued at
higher
successfully completed the largest
dustry,
in
the country's history by means
outside
of
the
raises
lieve
caution
a
future.
There
that
signal about the
are
the
itself
many
who be¬
the
entire
has
been
profits
tax
nance
ex¬
struction
piration
next
summer,
it
but
quite possible that if it is not
the
newed
rates
3%
may
to
regular corporate
is
1953
for
the
new
industry's
huge
fi¬
con¬
Estimates
program.
industry
to
money
expenditures
of
indi¬
re¬
cate that 1953
financing should be
tax
fully
as
as
turn
will
be increased by 2% or
the loss of excess
great
be
1952, but this in
dependent
to
some
tax
change would
revenues.
be
Such
a
clearly damag¬
extent
upon
market conditions.
During 1951 there was a sharp
change in the level of the bond
ing to the net income of the in¬ market. Moody's utility bond yield
no
offsetting benefits.
It should also be borne in mind
that
the
industry
must
have
in¬
averages
for A
of
dustry since there would be little
or
companies
the
namely,
the Bell
of
System. It is
of
Convertible
debt
of inde¬
and stock issues
that
companies
the
from
3.32%
1951,
a
and
the
bonds hit
low
a
change of
varied
1952
much
a
high
of 2.82%
in
full xk of 1%,
market
from
a
the
has
high
not
of
pendent
ing continued the pattern estab¬
nancing of this industry has also
in
lished
recent
years
by
substantial. The independents
been
this
represent about 18% of the total
debentures
in selling
company
Earnings of Privately Owned
Electric Utilities
(000 omitted)
Eight Months
Change
1952
1951
+ 5.2%
(KWH)— 206,420,000 217,161,000
Sales of energy
stocks
common
has
extended
the
during
Operating
Operating
income
is
shown
by the
set
in
following
all electric operating
aver¬
com¬
stocks listed in The
Corporation's utility
+ 7.6%
$3,693,262
$3,433,381
revenues
the fall of 1951. This improvement
that
improvement
before
;
1,089,351
1,276,159
+ 17.1
income f taxes"'
387,926
492,094
+ 26.9
_L
732,225
815,563
+ 11.4
530,780
604,632
+ 13.9
income
Federal
Federal
taxes___
pany common
First
Boston
booklet.
stock
these 93
stocks
On
Nov.
were
7, 1952
selling at an
income
Gross
income
Net
12.8
times
common
stock
(Source:
profits tax.
excess
Federal Power Commission)
Financing
Electric Utility
and
6.10%, re¬
spectively. This favorable market
situation has made possible an in¬
creasing
amount
of
successful
were
'"Includes
of 14.0 times earnings and
(990 omitted)—■
Ten
Year
81
Change
1952
$1,531,371
financing
Total
Months ti> October
1951
1951
$1,282,260
$1,550,156
+ 20.9%
offerings, and util¬
ity companies have wisely taken
Form of financing
advantage of it.
We urge
caution
upon
bankers,
+ 16.3
debt__
$1,003,675
$842,815
$980,336
stock-_
182,082
129,088
170,422
+ 32.0
stock—
345,614
310,357
399,398
+ 28.7
$1,531,371
$1,282,260
$1,550,156
$1,495,450
$1,261,980
$1,535,427
30,078
I" 14,438
9,128
5,843
5,842
5,601
$1,282,260
$1,550,156
Long-term
utility managements and regula¬
Preferred
tory bodies in interpreting this ac¬
Common
tion
of
the
utility
common
stock
market. The trend has been against
believe this has been due at least
in part to an
Purpose of financing
unusually strong de-
Divestments
(Source:
States
+ 20.9%
the movement of money rates. We
Fefunding
Bonds
Ebasco
Services
+ 21.7%
—36.7
—
4.1
+ 20.9%
Incorporated)
of
and
UNDERWRITERS
AND DEALERS
Industrial, Piblic Utility, Railroad and Real Estate Securities
Municipalities
ACTIVE TRADING POSITIONS MAINTAINED
Municipal Bond Department
Established
THE
PHILADELPHIA NATIONAL BANK
1416 CHESTNUT STREET,
Bioren
PHILADELPHIA 1, PA.
'
"
1865
&
Co.
■
MEMBERS
Y
York
New
Telephones: Philadelphia LOmbard 3-9620
New York CAnal 6-3590
New
Stock
Exchange
York Curl Exchange
Philadelphia-Baltimore Stock Exchange
Teletype: PH 356
{/
1508 Walnut
Street, Philadelphia 2, Pa.
PEnnypacker 5-9400
MEMBER
FEDERAL
DEPOSIT
INSURANCE
CORPORATION
r
fi¬
Debentures due 1964. This financ¬
$1,531,371
offset
profits
Prac¬
tically all of this year's financing
will not be renewed after its
excess
1951.
year
fi¬
apparent from noting the number
offering to stockholders of
yielded an average of 5.51%. On
Dec. 10, 1951 these same averages
in
of
yield levels, the market for utility
average
this
compilation
reliable
No
nancing is available with respect
to the independent telephone in¬
Company
First
than
but
for
company
debentures.
something less than ideal.
these 10 months is already greater
legislation,
volume
the
parent
proceeds are therefore in
company's sale of the convertible
While bond and preferred stock
tax
period, and
capital
most of this stock
the
to
addition
of
large part reflected in the parent
single corporate security offering
$498,656,300 of 3V2%
in
and
v
industry received substantial ex¬
cess profits tax relief in the
1951
1951
and such
1952 American Tele¬
Telegraph
and
phone
1952,
$167,505,700
sold
was
Telephone Companies
In August,
of
sold
stock. However,
quate to stimulate continued and
new investment
by investors.
the
negotiated underwriting method
is the preferable way to sell pre¬
ferred stock issues, and particu¬
larly when markets for such issues
ages of
Total
as
1952
as
year
majority of utility
choice,
are
pur¬
regulatory authorities.
indicates that the
ments,
sets
table
forth the volume, type and
accompanying
benefit. The
to the excise tax
set
9
that
by
private sale
or
gregate of $95 million of debt se¬
curities through the end of No¬
have
level
sold
of
ing
vember
for
if the
had sold stock directly.
also makes possible the delay¬
tent
and
favorable prices
as
higher
quite
was
were
at
prices
but with
the
in
financing
issues
these
of
16
This
off¬
an
an
in¬
varying
average,
trend
feature of this
ding
be
to
seems
the
taxes
at
with
during the period. An interesting
wholly justified
but
period.
against 1951 and represents
discernible
no
not national
ties. This criticism is
pared
sur¬
issues
widely from the
and
are
the aggregate of normal
and
of 4.60%,
alysts
proved earnings picture. However,
im¬
dividual
offered
were
yield
negotiated public
the
a
issues
new
average
Many investors and
months of
is
with
operation
maintaining
lk of 1%.
The
difficulties
and
year,
and capital ex¬ new issues have become more
penditures, management and frequent.
regulatory
authorities
must be
In preferred stock financing, 25
both
alert
below sets forth
The tabulation
of this
taxes and costs
priqe
a
possible, in effect, the sale of stock
in
very
large quantities which
It
fraud of
With increased
at
company
much
as
stock
of the stock. This device has made
sold
the
referee,
fair
been
not
into
materially below the market price
undoubtedly could not have been
in state
and
years,
of regulator
only annual increments of new
economic It has been noted by many com¬ hardening
of
rates
in
recent funds. At such time these stocks
panies that their increment of in¬ months as in A bonds. The spread will
public power can be ex¬
again be priced by more nor¬
creased
income
represents
a between
A
and
AA
bonds
has mal supply and demand factors
posed more effectively and the
trend stopped. Under such condi¬ wholly unsatisfactory rate of re¬ widened during the year. Over¬ and the ability
of utilities and
turn on the new plant investment.
tions
we
can
envision in this
all, bond money is costing more bankers to sell such stocks at fair
its
and
has
there
Thursday, December 18,1952
convertible
the
from
of
year.
were
yield
average
arising
yield
were
electric
AAA
issues
26
situation
mand
months
10
average
an
31
utility common stocks
by pension funds, life insurance
companies
and,
more
recently,
issues of A bonds
in
year
being 3.31%
importantly,
3.36%,
with
the
general
level
higher in the past several months
To Private Investment
be
More
new
offered
Menace of Public Power
1952 range
3.21%.
to
.,.
New
York
Telephone:
DI;by
4-5632
Teletype:
PH 574
Number 5178
Volume 176
.
.
.
Continue], from page
telephones in service in this coun¬
constitute a
very sizable industry in itself. The
plant investment of the indepen¬
dent companies has grown from
$500 million in 1941 to approxi¬
mately $1,300 million at the end
be
27
•
Telephone
Association
predicts that this figure will ex¬
ceed
$2 billion ten years from
on a
property
continue
sive
at
very
a
Respectfully submitted,
function
SECURITIES
as
New York
H.
pay.
Hallgarten & Co.,
New York
William M.
<
which
be
completed and should
of
middle
the
by
completed
By this time the full bene¬
fits of the modern equipment will
City
the greater
be felt and
Crowell, Weedon & Co.,
Los Angeles
provided by the
may
well serve
Thomas S. Gates
efficiency
equipment
bring about
new
to
increase in net profits
Drexel & Co., Philadelphia
provided
the
traffic
demand
Gail Golliday
keeps pace with the increased pro¬
Stone
&
Webster Securities ductivity of the new equipment.
i
again
an
This will of
Corp., New York City
James B. Harper
;
(1)
Harper & Turner, Inc.,
Philadelphia
ness,
the general level of busi¬
regarding which one man's
Co.,
New York City
Louis Meyer, Jr.
&
Co.,
ceeded
Incorporated, Milwaukee
Company,
Chicago
Parker
Kay Richards & Co.,
V'
for
total
in
forms
first
the
of
time
miles
passenger
Pullman
industry
collateral
Joseph E. Refsnes
the
Rel'snes, Ely, Beck & Co.,
The
cars.
will
to
place
prove
that
seen
able
are
currently
to
finance
capital requiremtns largely
out of
depreciation but
noted
already
cannot
be
depreciation
availed
of
as
there
unless
cash
are
earnings of sufficient magnitude.
require¬
ments of the airline industry in
The depreciation reserve
this
phase of its tremendous capi¬
mounting at an
tal expansion are
almost fantastic
alone
not
—
lines,
interchange
rate.
by
airline
One
means
any
the
of
that
interchanges
mergers.
the
obtaining the
are
necessary
the most
to
as
burdensome
have
and
the
ties
and
been
thereto, but
be
in
to
of
that
termination
downward revision of
or
cess
the
the
ex¬
profits tax would not benefit
airlines' earnings picture as
might be supposed. Be¬
provisions in the
Act of 1951 only three
much
as
cause
of
airlines
were
tions,
is
seem
before
will
carriers
a
ques¬
technical
a
give
real
a
these
utility.
meaning to
fense Program, enormous progress
the
industry
next
One has been the progress
few
toward
Three mergers have al¬
ready been
time
This devolpment
encouraging developments on the
airline
scene
during
the year.
mergers.
aid
excess
to
to which the
in
of
short-haul
the
vulnerable
many
is that it is only
development
wonderful growth
potential still ahead of this dy¬
namic industry, can one, in the
face of the above figures and the
exposures
of
venture
to prophesy, be
the helicopter.
Under the impetus of the De¬
subject
Without in any way
The
proponents
in this, the
profitable of airline opera¬
least
profits tax last year.
disparage
subsidized.
government
tion
advanced
business continue
heavily
philosophy
of special
Revenue
be
their
concluded, two more
well under way, with others
in the discussion stage.
been made
has
will
we
in helicopter en¬
gineering and production. The
feats performed by the helicopter
for the military forces and other
services
(police,
now
for
to
not
as
future
well,
to
a
area.
Heli¬
copters capable of carrying
eight
limited
and
populous
said
be
can
involved
elements
transportation
which
of
the
most
Richard J. Stern
off
will be in service
addition
present day
fact that the
expensive to
technical ob¬
in the way of
habited communities
appalling
to
As
it
is
before
a
of
White, Weld & Co., Boston
which
of
John W. Valentine
the
in
jets have
developed to a
point where they will be an im¬
portant factor in commercial air
transportation, it is not improb¬
able that
because of the noise
nuisance
the
main
commercial
will
airports
moved
to
eventually be re¬
way outside of
points
metropolitan areas. As a result of
this development one can see an¬
other important role to be played
or
10 persons are now
face
brought out
earlier
this
speech made by Oswald
59%
Civil
he
in
Aeronautics
Board,
an
the domestic
Drexel & Co.
increase
airlines'
forecast
seat-mile
Wegener & Daly Corp.,
capacity by the end of
1953 as compared with June, 1951,
requiring nearly $400,000,000 of
Boise, Idaho
increased annual
Theodore JL Wegener
revenues
to
sus¬
Underwriters and Distributors
of Public Utility,
Industrial, Railroad, Municipal Securities
Sherrerd
&
ESTABLISHED
and
Equipment Trust Certificates.
1910
Underwriters, Distributors, Dealers in
CORPORATE AND
Members
MUNICIPAL SECURITIES
New York Stock
New York
York
Stock
Exchange
New
Philadelphia-Baltimore
York Curb Exchange
WALNUT STREET
•
1500 Walnut St.
Teletype
PEnnypacker 5-2700
PH-4
(Assoc.)
(Associate)
PHILADELPHIA 2, PA.
Philadelphia Telephone
Curb Exchange
Stock Exchange
Philadelphia i
1500
Exchange
Philadelphia-Baltimore Stock Exchange
MEMBERS
New
would be so
to be unendurable.
only a question of time
in
Ryan, presently Acting Chairman
Co.,
Kansas City, Mo.
Butcher
incorporat¬
as
their
for
was
emphatically
in
year
would
demand
product fall
Cincinnati
&
the
least six years. In
passengers.
airlines
the
should
Seasongood & Mayer,
Brothers
on
jets operating in any substantial
numbers in and out of thickly in¬
carry
within
COMET, the most
transport
ing it into service on the highly
congested routes of this country.
In addition, the noise
made by
emerging as a factor in
transportation. Three
distant
a
the
stacles
largest cities have regular
scheduled operations, confined so
far to the mail but destined in
passengers
jet
jet is prohibitively
operate, there are
our
the
given
the
mestic airlines,
commercial
of
to
probable that a jet transport, suit¬
able for
operation by our do¬
Guard, etc.) are matters of com¬
mon
knowledge. The helicopter
is
successor
horizon, will not be economical
to operate and it does not seem
Coast
forest,
to
land MARK III
The feeder lines from the
nature
A review of the income tax sit¬
indicates
1952
impor¬
of
tance.
1953.
uation
field
line
nothing
brought
de¬
potential of the
jet
transport.
British jets are
being used on certain routes of
the British airlines. In spite of all
the publicity given to the subject,
it appears that even the De Havil-
uncertain¬
incident
has
its
attention has been
Much
far such attempts
so
feeder
of
well prove to
long-sought
the
recently
expenses
from an annual rate
of $5,500,000 to $12,000,000, with
a
further large increase to come
year
the
time
this
the DC 3.
made
have had little apparent result.
In
threshold
the helicopter may
.cause
delays. At¬
demoralizing
heavy
at
velopment as an important factor
in the
airline industry. Indeed,
by the
CAB to streamline its procedure
so
as
to minimize these
delays
tempts
the
on
are
in
approvals
involved
cumbersome
so
short. While it is im- *■
predict
to
play in comercial air trans¬
portation, it is clear that the heli¬
copter presents major possibili¬
ties in this field,
and that we
It is unfortunate
procedures
short-haul air¬
flights
trunk-line
will
well
as
on
all the roles which the helicopter
of financial mergers.
approval is required in
case
for
as
on
is relatively
short
CAB
the
but
may
possible
for
arrangements
mergers,
country's largest—will have raised
its depreciation requirements dur¬
ing this
areas,
eventually
useful" in carrying passen¬
not only
gers
extent
some
of
helicopter
The seriousness of the situation
Phoenix, Ariz.
Thomas J. Reis
Stern
their
within
flying and by the helicopter in carrying pas¬
The second has been a devel¬ models capable of carrying 30 to sengers from the center of cities
have come of age, but now that
it is a full-fledged adult it must opment of which
it is believed 40 persons have been engineered to these relatively distant air¬
and
should
be
flying for the ports.
we have seen only the beginnings.
be ever vigilant against a deterio¬
ration in the quality of its service. This is the interchange of equip¬ military within a year. In addi¬
The subject of the turbo-prop
tion to the function of carrying
By this is meant not only speed ment, whereby a plane can orig¬
Continued on page 66
mail and persons
between air¬
and safety in the air but all the inate at a point on one line and
airline
Pittsburgh
other
air passenger miles ex¬
the
traveled
Lee II. Ostrander
William Blair &
with
1951
In
scheduled
Baird
have
airlines
as
transportation.
Ludlow F. North
Nathan K.
good
as
competition
Stern, Frank, Meyer & Fox,
Los Angeles
W.
the
ping
another's, and years, wonder at the somewhat
(2) the ability of the airlines tepid appraisal given to airline
to
please the travelling public stocks by the market today?
with
the services they offer in
There have, however, been two
is
guess,
Willard A. Lynch
Robert
depend on two
course
things:
'
W. C. Langley &
lines
take
to
appears
capacity, or an may to a limited .extent be re¬
than $1,000,000 a
garded as operating mergers stop¬
increase of more
We
points
where the distance between stops
day.
the
other
and
metropolitan and suburban
CAB's
The
tain this increased
1954.
Crowe 11
H.
of the air¬
equipment is about
new
two-thirds
Cahn
mail
:
.
lines for
Henry Herrman & Co.,
Warren
'
under
receive
The present program
.
City
New York
to be con¬
concept
the
airlines
the
earnings
earlier
done
was
as
with
sistent
Boynton
D.
earnings,
declining
a
such
this year does not seem
Company,
Incorporated, San Francisco
Elwood
of
face
the
Jr.
Birr,
mail
of
capital. To reduce them in
trend
California
The primary
rates is to act
earnings.
sort of governor on
a
vested
City
Theodore
First
Chairman
Corporation,
Boston
has had its effect
geared to allow the lines to earn a
reasonable
return
on
their in¬
COMMITTEE
First
these
course
airline
on
Charles C. Glavin,
in
which of
has seen a
by the CAB,
1952
year
reduction
kets for at least serveral years.
PUBLIC SERVICE
the
rates,
capital mar¬
to the
recourse
policies of the airline indus¬
try, including not only passenger
rates but express, cargo and mail
as
well. In the matter of mail
expenditures to
high level, it
is apparent that the entire indus¬
try will continue to have exten¬
pating
high governmental level of the
rate
antici¬
With the Bell System
now.
thing would be a complete review
lines.
these
such
pendent
ports
through trip over
a
or
support inter¬
agreements where traf¬
fic warrants competition. It may
well be that developments along
Financing
States Inde¬
United
The
1951.
on
line
65
the
policy
change
Finds Little Grist in New
^
of
flown
another
therefore,
and,
try
(2389)
Chronicle
The Commercial and Financial
New
York
Telephone
WHitehall
4-4927
New York 5
14 Wall Street
66
The
(2390)
Continued
from
'page
engine
has received
tion
and
that
such
its
a
is
plant
power
the turbo jet.
will
in
veloped
to
of
Whether the future
this
see
type
engine de-
of
point where its use
a
commercial transportation will
in
precede
ously
or
with
take place simultane-
that
of the
jet
turbo
rendered
by the airlines,
showing a steady growth. In
connection it is regrettable
believe
respects superior to that
-some
of attrition, perhaps as
been the opposite. 1951 was a year military level of activity and, processses
is of expansion requiring expensive having seen military orders in the great as 25% a year, will be at
this tooling up in preparation for the past reduced almost overnight work. Thus a period of very high
that increasingly heavy demands of more than 90%, the investor in manufacturing activity is to be
no means have yet been found
the Defense Program. Sales for the stocks of aircraft manufactur- anticipated for the next three
for providing a substitute for the the industry as a whole increased ing companies cannot be blamed years, except in the event of such
Railway Express Agency as the about 35% over 1950 but higher for asking himself whether this an improvement in the climate of
over-the-ground pick-up and de- taxes and higher costs sharply unhappy state of affairs is apt international affairs as to warlivery instrumentality for air ex- reduced 1951 earnings below those to recur.
rant a relaxing of our defense
press.
For the owners of this Gf 1950.
Fortunately for the industrv an effort or a change in government:
agency are the railroads who are
In 1952 the earnings have been analysis would indicate that for policy which would minimize thet
ice
much atten-
proponents
engine manufac-
142
will
addition,
normal
Aviation Financing
<
v
and
itself to
confine
most
but
airframe
«
pected
on
role to be played eventualities apby the air arms.
Neither of these
show
pears
the ascendant and it is ex- many years to come the demands
that
the
industry will of our government will continue
an average net income from
at a high level. The Defense ProManufacturing
30% to 40% in excess of that for gram in effect at the beginning
In concluding this part of the
The size and tempo of aircraft
1951. This, it will be noted, is of last year scheduled for the airreport having to do with the air
transportation industry, mention production is such today that its considerably lower than the in- craft industry a rapid increase in
might be made of the air freight impact is felt not only by air- crease jn the rate of sales of 85% production calculated to hit its
business. In spite of the optimistic frame and aircraft engine manu- wbicb the industry is experienc- peak
during 1953 and decline
hopes of its enthusiasts, the car- facturers, but also by the auto- jng
year and indicates the rapidly thereafter to a rate of
riage of goods by air remains a motive industry, which has been extent to which profit margins relatively
moderate production,
relatively unimportant branch of called upon to assist in the manu- after taxes have been decreasing. During
the year a change in
air transportation. It has grown, facture of airplanes and engines
oniy js the industry subject policy took place and it was deof course, but it has not overcome under licensing agreements, and
t0 the impact of heavier taxation, cided to stretch out the period
its basic limitations arising from by a host of sub-contractors. The
but the greater part of its busi- to a lower peak to be arrived at
the fact that the plane has not complexities of the problems fac- nes> bejng military, is also sub- later and to be held longer. The
yet been built which can carry ing the industry require it to jecf f0 fbe jnr0ads of renegotia- result of this change was generalgoods through the air cheaply draw more and more upon the fjon and price redetermination, ly pleasing to the industry as it
enough to compete with other engineering skills and productive fbe resuif 0f which has been dras- meant lessening the strains informs
of
freight transportation, capacities
of other industries, tically to reduce net profit mar- volved in the accelerated producThere
are
pf course occasions such, for example^ as^Jhe^elec-' gins^ in some cases to below 2% tion and high volume a activity,
longer
period of guaranteed
where the desirability of speed tronics industry. This report can- Qf safes after taxes,
than outweighs the expense not
embrace the effect 01 me
tne etiect of the
difficult indeed for The importance
of this cannot
differential, and air express, while present aircraft production pro- manufacturers to come ouf with be over-emphasized in its bearing
a small part of the overall servgram on the many related indus- anvtb;ne pleasing in tbe wav of on the stability of the ,industry
anything Dieasing
the way
...
earnings when forced to op— 2nd the conseQuent effect on the
TABLE I
erate with such an extraordinarily investment status of the securi15 Domestic Trunk Lines
low margin of profit were it not ^es of
companies.
(Millions)
for
the
hugeness of the
gross
The present military program
Net
volume of business in relation to
envisages a build-up of 53 addiIncome
Before Taxes
Operating
the net worth of the companies' tional wings for the Air Force
% Revs.
% Revs.
def. $20
assets.
In this end of the avia- and
four additional Navy air
def. $26
1947
$353
def.
5
tion industry, as in the case of carrier groups and the replacedef.') 2
L__ :
413
1948
13
2.8
the airlines, we see the workings ment of obsolescent military air28
6.1
460
1949
31
5.9
of a tremendous leverage.
craft which are believed to con59
10.2
524
1950
44
6.6
103
Traditionally the investing pub- stitute about 70% of our exist15.7
659
1951
mO0t
a
which
O.^stlon regarding in turn the
will
more
known at
airlines' chief competibusiness,
tors for express
be
doubt
no
time next year.
this
.
.
-w
^
J"4~
-
more
A
jt
,
Net
Income
Revenues
—
results based
C. A. B.
Source:
on
—
-
33
4.4
70
9.3
750
*1952 estimated
—
—
■
1952 Est.*
TABLE
II
:'V.:'
Net
def. $99
'
$705
1947
&
1,299
5.0
65
3.3
1,513
2,094
8.1
123
4.5
69
5.1
107
1.7
*36
5.3
200
2.0
1952 Est.f
3,800
New York City
,
Harrisburg
J
1952.
—Fire Air Transport
Vineland
Companies-
Close*
Close:—109
mi..
c..
.219
,,,100;.^
Low
324—217..
263—181
1948
UNDERWRITERS, DEALERS and BROKERS
1949... .240—193"
1947
.
"
*202"""
High;-
i.
113-/7^,1
Close*
Close=10®
vk
Ill
132— 93
101
119— 96.,
92
103
226,
Low
114
125
180—116 ""
180 '
198
.
'
"
339—230
339
154*
402—318
392
179
196—152
172
189
325
148
190—162
190
209
1952
Pennsylvania Municipal Bonds
Public
Utility—Railroad—Industrial;
*
analysis of the future of
industry during
4
few
next
Close at
~ better
times"for-these shdresr mar-*
ket-wise.
There was
situation.
tax
near Dec; 31
except-for-1952; 1952 close at Nov.-19..,..r"
November-19,' 1952. h V?j
St Poor's Trade and'Security Statistics and The Outlook.
a
profits taxes on aircraft
of excess
1951. While a few
companies in
y-,„<*,
BONDS and STOCKS
■'
Specializing in
Distributors, Dealers, Underwriters
t
Corporate & Municipal Issues.
Issues Free of the
1
Personal
Yarnall
Si Co.
Members of
New York Stock Exchange
1
J,*,- .7
•
,
Bodine
1874
MEMBERS
NEW YORK STOCK
EXCHANGE
NEW YORK CURB
EXCHANGE
PHILADELPHIA-BALTIMORE STOCK EXCHANGE
1500
Exchange (Assoc.)
NEW YORX
VV,
Philadelphia-Baltinaore Stock Exchange
New York Curb
I52« WALNUT
vy
,
Property Tax
ESTABLISHED
■.
;y
K,~-
Pennsylvania
DeHaven & Townsend, Crouter &
ST., PHILADELPHIA 2, PA;
CHESTNUT
STREET
PHILADELPHIA 2
WILXES-BARRE, PA.
con¬
the impact
siderable variation in
Source? Standard
y
is the
Another favorable. factor
or
11Through
terms of
for
ihat one may look
r
392—305
in
years
earnings is correct,
seem
^
1950 1
:to datef
our
marked decline in
'/>
it would
a sub¬
stantial further, improvement in
the market demand for aircraft
stocks. Unlike the stocks of the
airlines, these shares have tradi¬
tionally sold at a low times-earn¬
ings ratio and have shown rela¬
tively high dividend yields. These
factors, coupled with the, stability
which the fufufe"'a pp da rs to -hold
for this industry, would indicate
net
Manufacturing Cos.
1951
•i
the
*
Vr
1947
High
r
Nine Aircraft
Ameri¬
a
the future of the
Indices of Stocks of
^
as
gate shown a
If
Aircraft Manufacturing Groups.
1947-1951 and 1952 to Date
this increase has
fully reflected the
whole. Corpo¬
profits have in the aggre¬
industry
rate net
TABLE III
Atlantic City
Lebanon
means
company
Standard & Poor's Price
Klngslay 5-4500
But
industrial
Jones
Dow
performance, income-wise,
the
aircraft
manufacturing
can
reported not loss of $23,000,000 in year finding 1951.
11952 estimated results based on projection of nine months results. ,■„:
Source:
Standard and Poor's Industry Services-—Aircraft—and com¬
pany annual reports.
.,
<
*
*One
Largest Trading Area
•
increase,
the
no
have
shown
slightly greater
they
then
small
76
New York Curb Exchange
Philadelphia 1, Pa.
faced, the industry's principal
customer,- the ,t government, will
,
,
.
,
.
,
,
have to bear the brunt of these
under the escalator clauses in its
contracts.
The market in aircraft stocks
has a history of wide cyclical fluctuation. In 1950 they had a substantial rise caused primarily by
the Korean War and its impact
on rearmament plans. In 1951
their prices held well, in spite of
the falling off in the net earn¬
ings of the companies represented.
companies in relation to
43
1951
have to be
creases in wages may
of
def. $30
—
1,020
Air Transport &
Walnut Stmt,
—
8
Effective Distribution
1342
—
0.8
Philadelphia-Baltimore Stock Exchange
In the Nation'* Third
••••■
30
1950
Company
Members:
•
—
1949
Newburger
Exchange
—
pact attendant upon large scale
expansion, and while further in-
better
2.9
1948
New York Stock
—
today, it cannot be expected to
go any lower. It is believed that
the industry has already absorbed
the greater part of the cost im-
by
Net Income
% Sales
% Sales
Sales
and 2% of sales, as is the case
averages.
Income Before Taxes
BROKERS
least three
increasing
volume to be accompanied by a
continuation of the downward
trend in profit margins? While
time alone will give the answer
to this question, it is submitted
that when the net margin has
reached a point between \Vz%
than
Index
vol-
pects for increasingly high
ume are good for at
more years. Is this
Since
Nine Leading
(Millions)
DISTRIBUTORS
likely.
We see therefore that the pros-
a
Comprising
Aircraft Manufacturing Companies
Standard & Poor's Aircraft Manufacturing
projection of eight months data.
reports.
UNDERWRITERS
Thursday, December 18,1952
...
lie has been wary of the stocks ing military fleet. Under the
of aircraft manufacturers because present schedules this program
turers.
of the past mercurial nature of will not be achieved and our Air
Whereas
the
airlines
experi- the business in the terms of vol- Forces will not be at full strength
enced peak earnings in 1951 and ume of activity. Inasmuch as over before
1956 at which time
a
falling off of earnings in 1952, nine-tenths
of the business is wings and 15 carrier groups
the experience in the manufac- military, the industry is regarded have
been formed. In
turing end of the industry has as being at the mercy of a high during this period the
tries
65
Finds Little Grist in New
«
Commercial and Financial Chronicle
STAMFORD, CONN.
_<•
't-
y •
"
;
Volume 176
at
were
Number 5173
or
the
near
brackets,
credits
carry-over
tered
them
taxes
or
from
The Commercial and Financial Chronicle
.
sizable
gineering man hours to design the
B-17; the B-47 required 3,464,000.
shel-
which
minimized
guided missiles alone staggers the
imagination,
limited the tax load. In 1952, howThese prodigious feats have
ever, taxes have been accrued at been and are being accomplished
the
maximum
rate
of
70%
by on behalf of and made possible by
most
companies. If the excess the military effort. But, as is alprofits tax law should not be re- ways the case, the field of comnewed, the aircraft makers would mercial aviation will be an
tend to benefit
particularly in eventual beneficiary of this
earnings-
the
of
$14.1 billion backlog
progress.
;
Much publicity has been recently given to' the development
of jet transports by the British
manufacturing
and the question is often asked
why the British manufacturer is
ahead of the American manufac-
companies,
may
also expects to see, within the
next year, an
A Year of Careful
Planning
And Doing Ahead
that
at'June 30, of this year.
If one may expect a better market
for
the
shares
of
aircraft
one
"Opportunity-
expenses,
decreases
—
view
We must sell prosperity.
Our
new
film,
17
page
War II. The progress in the field of
heavy
of
from.
important volume of
67
U. S. A.," is just one of the
many
profits' B-36 is more thaa the cost of the
normal sur- complete B-17 bomber of World
Others, because
preliminary tooling
shbwed
Continued
excess
tajtes.
(2391)
The cost of the bomb-sight in the
tax
top
had
others
.
.
,
and'
u
byways
u.
,
,
which
over
of
many
cover
the last word
us
just traveled
in
economical road building?—Or
are
is
opportunities
turning
We
airplanes that flew some Investor and understood only by
here, are the last word in the pondering pundit of finance,
air transportation?
And so careful, thoughtful planThese are a few of the every- ning, not just for tomorrow, but
day things of modern living. What for many tomorrows to come is a
are the possibilities for expanding
must for the coming year.
production
peacetime
comparatively
ments
for
education
made
are simply
away
from the
business
can
dous
only raise the tremen-
amount
of
required
money
by industry and government if all
potential
investors
nanciallv
literate
education
fi-
made
are
through
rmblir
education?
Public
Hops
not begin at the top it begins at
industry has been much the bottom. It is the business of
develop- maligned, but through the years the Group Chairmen to see to it
electron- 0f
war
and
peace
investment that we have education commit-
through
new
atomic energy
as
investment
frontdoor.
us
such
the
Possible by this film,
that the
of
that
industry does.
Any of
who fail fully to exploit the
you
figures that full inmeaningless to Mr.
and
formation
telling the public about
work
banking
facts with mountains of
up
worlds
the
•
i.
of
ways
Qur
1(^s ~ ;he miJacle drugs — petro bankers have demonstrated their tees that fully inform and inspire
chemistry and
host of others.
a
the members, that each individual
firm of the IBA may take comby words, but by deeds.
Many plete and full advantage of all the
We have seen
inese
are
only a tew ot tne were
our
indiscretions
in
the development work that is done for
Ur this report that the volume of ities of
jet transports after the countless challenges of ceilings
'Twenties.
It is perhaps of small the information of the public,
p u b 1 i c
financing for aircraft war for two reasons: first, during unlimited that abound for the adcomfort that at that time ours was
May I call your attention again
manufacturers has been negligi- the war the British were in the
L°
a nation on a spree of indiscretion, to the fact that our nation has
ble
in
spite of • the
industry's lead in the development of the omy. But such an economy must
0
I.
^
only 7% of the world's people,
great expansion. How has this ex- jet engine, and second, the Brit- be free.
It must have the moti¬
We Are a Small Group
but produces 50% of the goods
pansion
been
financed?
It
has ish plane manufacturer realized vating force of high rewards for
There are only something over
May I likewise remind you that
been financed almost entirely by that it would not be possible for
high accomplishment.
It can not
self-liquidating bank borrowings him to compete successfully with hp class taxed or bureaucraticallv 3'000 dealers in the securities busi- an estimated 60,000 people in the
made possible by the use of Fed- America; in
the production of budgeted.
way Hes the road "ess
nam- investme„t banking industry repvnir,
ber of individuals devoting their
,
,
,,
,
eral Reserve "V" loans secured by transports powered by the con- to. aij Rnmo and to ruin.
old Rome
turer in this field. It was natural
for the British manufacturer to
in the introduction turn his attention to the possibil-
piiblic
this
of the aviation industry?
financing
patriotism
branch
by
.
devotion
and
their
to
country, time and again, not just
Unlimited Ceilings
-
,
..
.
¥haf
«? th^ country and the
.
ventional reciprocating e n g i n e.
military services serving as par- We have stated earlier in this retial guarantors.
This form of fi- port that even the most advanced
with
contracts,
government
the
Ume
Just
from
as
we
half
a
war
economy,
peace
quickly
economy
to a
not
may
pass
we
so
may
ousiy
is not
is.
inexpensive to the
so
improbable, for. the reasons
above
outlined,
climate
will
financing,
expected
that
the
market
itself to
lend
.
,
n u
„
y
than
rather
for
not
want
to
while others have been grappling
So, this may be
planning as well
this
with
,
the
On
pr0blem.
.
con-
,
,.
the
make
made by
ity for the obtaining of their fi-
adjustment
be
small
over
60,000.
indiscretions
helnine
and
tard
power.
of carefui
of doing. Many
SEC
m
a
,
,
.
seven
of two or three times
of
self during the coming year.
Another aspect of the situation
tending
relieve
to
manufacturer
of
the
is
the
fact
that
much
provided
through
government.
report would
This
from
a
acts
Respectfully submitted,
of,/,
with
is
gram,
Atomic
the
of
tion
so
New
Pro¬
much of what is being
one
Otis A.
not
so
Parker
&
1
j
1
1
We
capital.
enough
11
•
It might be encouraging to
j
i
one man,
«
Wiliam
that
any
time religion
private capital can not or will not
.
to
the
then
Donald
moving into such
We must sell
nomic salvation to
vacuum.
a
successful peace-
a
more
say
it
again
and
say
&
-let's
simply
get
with the job.
on
STROUD & COMPANY
\
Incorporated
City
Barclay
N.
•
^
Weeks,
Harding
PHILADELPHIA
McDonnell
rr,
I
7
Railroad
f
,j • '■
.!■>
.' J t
12
*0 !»
r\,
>,J* f •>!*
\.'iJ if *.f > ' t
*
-
'
& Distributors
Industrial
•
SECURITIES
Electronic
Stale and
General Market Municipal
and
Guaranteed
Television
and
Equipment
Leased
Trust
Funds
Municipal Bonds
Bonds
Equipment Trust Certiticates
Securities
Line
Stocks
Public
Obligations
Bank and Insurance
Mutual
Stocks
Utility and Industrial Securities
.
Shares
Philadelphia Bank Stocks
Charles A. Taggart & Co., Inc.
Members
Philadelphia-Baltimore
Stock
Exchange
Investment Securities
1500 Walnut
Philadelphia Phone
KIngsley 5-1716
of
it the investment banking industry
Dealers and Brokers in
and
savers
Thus, ;in the best traditions of
time economy.
Let's
the
this country,
L
Blyth & Co., Inc.,
New York City
138,000 en-.
Jersey
civilized
world.
needs to be done>
Sixty thousand devoted men and
then government has a way of women should be able to sell eco-
Underwriters
New
,
do a ^
Smith, Barney & Co.,
New York City
difficult for the lay¬
•
re-
the Apostle
.
amount Paul, some nineteen centuries ago,
sagacious almost single handed, sold a new
are
know
to
1
Red-
Glazebrook, Jr.
New York
comprehend. To give just
Public Utility
of
\,:l
Co., Atlanta
Hornblower
during the
"example, it took
Let's
be
a
Courts
W.
Courts &
complexities of the modern
are
times
^
,,
path, New York City
1951 and that many of these
are
continuing to be
to
him.
all
the
him to
ceasi
t
Co., New York City
&
Richard
records
man
at
in
we
want
•••...
,
City
Auchincloss,
broken.
aircraft
York
Cohu
it is known that all previous
records
of
speed, altitude, dis¬
tance and load-carrying perform¬
The
But let's
inform
to
and
business
Through patriotic deneyer
Roger Cortesi
ever,
year
it.
truth
meet
mos^ challenging problems of
excep¬
Energy
shattered
whole
to
trusted to meet
Henry W. Cohu
kept under wraps in the in¬
terest of national security. How¬
were
free
in-
trusted
Kuhn, Loeb & Co.,
done
ances
have
Hugh Knowlton, Chairman
technical stand¬
the possible
the
American
The
is entitled to the truth and
investment
;,:y COMMITTEE
be- incom¬
survive.
vestor
SECURITIES
AVIATION
point, In the case of no other in¬
dustry,
re-
here—"H^is^tir^^for ^a change"
plete without some mention of the
brilliant accomplishments of the
industry
of the
May all that is good in those two
facilities constructed and paid for v
by the
lndustry take* £° the
cry
of American manufacture,
be
leasing
the
Perhaps the battle
air with jets it will be with planes
the
of
can
unlikely that when
not
our alrlme
the aircraft
necessity of
plant expansion
required
is
v
.
raising additional permanent capital
it
and
of great capabili-
be
can
our nation.
billion of dollars of capital,
ties Acts,
but as of today no comprehensive changes have occurred,
wbo
men
whereas the economy is in need member that
needed in the two Federal Securi-
transports,
serv
set¬
Today we are supplying to the such men, the 30b can and must
industrial economy some six to be done.
their
jet
.
Lit
ingenious industry,
an
votion and
facturers have already engineered
CI13n26S
tjes
bushel>
trary- several o£ our ^ge manuof
This is
problems of our economy
in
and in war—have been hid-
under
rewards
Y "
made up of
for
t
beyond comprehension,
of the irrmor-
manv
one
So,
population.
our
job is tremendous, the
our
?f
so
Peace
JJen
of
opportunity and rewards of
have
genius
their
and
solve
a
versions
while
shouted from the housetops.
people
our
banker will have to address him-
is
And
and
were
question to which the investment
requirements?' This
Percent
group can never,
a
til^i
nancial
resents less than one-half of
per_
Obvi-
standpoint of numbers,
politically important.
been
a year
X?a+rS+£g° We agreed wi^
WGI*0
SOmG oil
industry would
Whereas the patriotic devotion of
mistakes
others, mad with
as
the
our
advancement, serve to hurt rather
than help our economy.
We do
has not been sitting by in idleness
instrumental-
an
.
,,
.
.
T^e American aircraft
capital while the "V" loan is readas
characteristics,
economic
.
these companies be
increase their share
ily available
equipment regardless
new
0£
equity
can
to
of
use
s0
from
not
British jet transport model falls pass quickly from all the inequimanufacturer and so easy to ob- far short of meeting the require- tles of
government by men to a
tain that the investment banker is ments
of our domestic airlines government by laws.
We learn
hard put to it to try to persuade which, unlike international carmany
things in the passage of
him to finance by long-term bond
riers, will not be forced by their time. Laws passed in haste and
or debenture issues. And while it
competition into the premature hate for revengeful purposes
nancing
thig
tQ
baps total little
Street, Philadelphia 2, Pa.
Teletype
PH
677
New
York
NEW YORK
Phone
WHitehall 4-7000
i
•
PITTSBURGH
•
ALLENTOWN
•
LANCASTER
68 *
The Commercial and Financial Chronicle
(2392)
Continued from page
Interest. The outcome was to sus¬
principle of
Federal
ent
solution
to note the the Re¬
is reassuring
will
ment
It
System.
publican Party platform of 1952
specifically supported this posi¬
been
tion.
the
be
of
the
called upon
our
Federal Reserve instituted a sur¬
ministration
in
its
of open market practices and velop a sound debt management
procedures. Mr. Robert H. Craft, program. We place the services of
who was then Chairman of the the Governmental Securities Com¬
Governmental Securities Com¬ mittee
at
the
disposal of
the
Association, was ap¬
months.
Many
in
one
and
no
Discount
National
one
of
Chicago.
must
n
on-marketable
\
the
for
obligations—
of
Sheldon R.
a
structure.
better
balanced
a
Bank
the
of
sym¬
small
of
of the
backbone
economy—through
the
Bank of
at
Above
financial institutions
our entire banking
other
-
,
•
•
Philadelphia National Bank,
Philadelphia.
II
threatened
was
economy
brink of disaster.
the
San Francisco.
George B. Kneass
6,000
billion
other
335
1912
the
public
loans
the
to
it
clear
that
the
for
blazing
private
into
ment
The
in
shown
the
in
way
which
ments
could
not
not
ago
the
the
long
To
properly
and
It
was
contrary
of
free
roads
historical
of
matter
a
to
non-feasible.
was
tradition
whatever little
experience
them
road
conjecture.
the
to
and
would
20 years
potential of
toll
distance
entirely
be
its
there
was
economically
Private
financing
endangered economy by bolster¬
ing our financial and industrial
system
at
phase
the
it
moved
into
militarily
us
strong
to
ourselves
the
a
I
the
from
project.
Today
large
a
are
beings
However,
I
privately
am
sure
financed.
that
none
a
it
is
were
suddenly cut
II,
we
off from our
served
as
*
activities
and
our
economy.
the
requirements
mobilization
of
present
situations.
For
it, stands ready with
of changes
our
nature
interna¬
a
capable,
keenly
taking place in
to meet the
economy
as
develop.
trans¬
rehabilitation
which
the
have
often
so
existent.
should
It
that
mean
Philadelphia-Baltimore Stock
Exchange
all
things have been accom¬
plished in such a way as to be
self-sustaining, paying all
leaving a surplus of
than $620 million.
costs
and
N. E. Cor. 15th & Locust Sts.
300 N. Charles St.
Philadelphia 2, Pa.
Baltimore 1, Md.
this
the
Nation.
rubber
Underwriters
operating
cost
Distributors
of
thetic
Trading Markets
Pennsylvania
and
General
Market
High Grade Corporate Bonds
★
★
ence
and
Stocks
IB IR OA ID
N. Y. Phone
HAnover 2-4554
£=====
teletype
PH
538
natural
on
grows
today
we
only
can
STREET
(9),
means
only tin
KIngsley 5-0689
syn¬
pro¬
synthetic
million,
rubber
over
areas
which
UNION
from
night be cut
TRUST
PITTSBURGH
..
;
.
-
BUILDING
19,
PA.
*•
the operation of the
smelter in the Western
of
25,000
acres
of
abaca
production, which provides
the hemp so essential to the main¬
tenance
THOMAS & COMPANY
depend¬
of tin per annum. It means the op¬
fibre
Phila. Phone
from
in
a
of
Hemisphere, producing 36,000 tons
eration
PA„
year
prospectus from PHILADELPHIA 3, PA.
a
and
year,
us
at
having
tons
value of $352
which
(Members Philadelphia-Baltimore Stock Exchange)
SOUTH
a
?
SCHMIDT, POOLE tr CO.
PHILADELPHIA
per
which has freed
off. It
123
rubber
rubber of
built
million,
950,000
mean
industry,
plants
ducing in the past
Municipal Bonds
★
$517
capacity of
should
It
synthetic
with
Retail
more
It should symbolize the defense
of
of
our
Navy
defense establishments.
and
It
other
means
Municipal and Corporate
Securities
of,
against
tomorrow
organization,
economy,
of
measure
financing where
the
tensions
lems
economy
large
in
to
defense
efficient
a3
it reconverted
civilian
limiting
tional
of
During
all-out wareconomy to
peacetime
our
War
it
Today in the present full
aware
World
tremen¬
allies.
years
an
not taken that risk.
in
II
next
against shock to Amer¬
industry;
would have been built if RFC had
Again,
the
aggregating $86
the
destruction
of
that
number of long distance toll roads
the
It should mean
loans
for
of
success
we
War-
the demands
our
ican
needed
risk.
and
from
RFC
the
was
economically
and
meet
post-war
cushion
not
of the
financing
it
As
World
of
need
take
when
disaster.
dous production required to make
risk.
you
by
into
its
did
time
a
threatened
quite properly refused to take the
tell
na¬
Corporation has had many roles.
Its
first job was to save
and
period,
industry
our
they arise. In'
short history of 20 years the
came
in new develop¬
meeting
problems of
economy as
instances
many
illustrate,
success
various
the
tional
economy.
private
and
risk.
develop¬
American
has
RFC
to
of
avenues
the
trails
convert
new
industry
broad
organization, but
still is
a
living entity
of these
Members
has
RFC
brought to those to whom the
availability of bank credit is non¬
Bankers
a
today a static
has been and
bil¬
$1.25
railroad
the
the
mean
aggregating
30,000
forces
Investment
the
mean
aggregating $1.5
municipalities and
agencies for hospi¬
It should
save
million
formerly Brooke, Stokes & Co.
on
was
It should
portation system.
BROOKE & CO.
our
tals,
bridges,
water
systems,
drainage districts and other es¬
sential
public
services
which
could not be obtained from pri¬
lion
ESTABLISHED
and
loans
to
vate sources.
.
and is
been
has
it should symbolize
all,
pioneer
showed
the 27,000 loans
mean
capitalistic
America, N.T. & S.A.,
y,
do
me to
briefly
RFC.
Yet I believe
this brief sketch should
even
time when
a
system
Russell A. Kent
outside the
loans ag¬
participation in 26,000
gregating $1.7 billion.
and
Chicago.
through the refunding of maturi¬
ties, through cash offerings, and
through optional exchanges in ad-
fjg
should
amounting to $4.8 billion to banks
Harris Trust & Savings Bank,
banking system.
The year 1953 will offer op¬
portunities to achieve these ends
T"T|
disappeared
have
the
of
most
preservation
—
It should
Hardin H. Hawes
debt
program, an effort should be made
to widen the
ownership of the
debt
the
and
aid." It
its
business
City of New York.
this
with
Consistent
would
American
>'
Green
National
Chase
long-range program aimed at ob¬
taining
available
not
was
bolize
York.
this
of
Industry
5.
'
rather obviously
development
business enter¬
57,000 loans in amounts less than
$100,000. It should symbolize the
W. Wayne Glover /
partnership with private banking,
California Bank, Los Angeles. otherwise unable to help, through
.
calls
you
First National Bank in Dallas.
due.
situation
Stewart A. Dunn
Robert R. Gilbert, Jr.
permit
sketch
to
the
of
that
being
our
it
whom
C. J. Devine & Co., New
mostly Savings Bonds and Notes—
which are actually or contingently,
This
Company of
all
that
the
without
of
billions
those
added
be
Trust
country.
preserving
in
RFC has made to
Guaranty
the
on
the
prises to whom private financing
H. Craft
New York.
curities, $74 billion mature or are
callable within one year. To this
of
think of RFC, what
symbolize?
It should
symbolize the 63,000 loans ag¬
gregating $5.5 billion which the
C. F. Childs and Company
billion in marketable Treasury se¬
thinking
needs
factor
key
When
F. Newell Childs
Of $148
nately large short debt.
than
make
accomplished without loss
operating
agreements
Notwithstanding this, these ugly through
facts, which have
been
minor with private industry in the best
side plays in the great work of American tradition.
the RFC, still
distort a record
Blazing New Trails for Private
and achievement which has been
should
public debt management is
refunding the now inordi¬
our
reason
few of the highlights in the his¬
prise.
San Francisco.
Robert
best
economic
a
American Trust Company,
much good may be
as
a
result of its
to
For this
are
now
working on a plan
get the entire industry into
private
hands
at
the
earliest
possible time.
much
from page 22
system of free competitive enter¬
Dwight W. Chapman
findings.
Looking into the year ahead it
seems to us that the major prob¬
lem in
City Bank of
Cleveland.
tee, the study was entirely con¬
structive in its approach. It is our
opinion that
anticipated
of
Corporation
the
fleets
Chairman
Robert B. Blyth
made. From the viewpoint of those IBA representatives
who appeared before the Commit¬
yet been
^
Repp,
risk
any
defense.
not been and is not
New York.
a
was
N.
sound competitive
a
Time does not
Continued
syn¬
operated
to
National Bank, Atlanta.
First
be
we
J. W. Speas
Bank,
Seattle.
GOVERNMENTAL
Herbert
private
public report has as
progress,
National
on
the
need
we
fear that
can
without
national
City.
In Defense of the RFC
SECURITIES COMMITTEE
person
before the
Committee. This survey, which is
still
York
basis
Hutzler,
tory
THE
of our mem¬
in
appeared
privately
Salmon Bros. &
that
any
rubber
the
sound
a
Today
such
longer have
thetic
Rudolf Smutny
New
Seattle-First
Respectfully submitted,
questionnaires and
bers answered
no
Treasury.
pointed "Technical Consultant" to
the study
committee and has
served on a full-time basis for
five
Company,
eco¬
at
it had not
on
basis.
is
was
Even
War II
established
been
situation
St. Louis.
of
industry
an
feasible.
competitive
Trust
Malcolm S. Prosser
vey
mittee of this
Corporation,
New York.
de¬
to
efforts
Boston
National City Bank
support to the new Ad¬
yet
Mercantile
needed
was
Private
close of World
of
William P. Sharpe
Delmont K. Pfeffer
to consult with
Bank
City.
New York.
problems. We pledge
its financing
full
First
frequently has
Shawmut
such
nomically
Boston.
Emil J. Pattberg, Jr.
in connection with
Treasury
Federal
Open Market Committee of the
New York
Company,
A substitute
industry
could
not
establish
a
synthetic
rubber industry of the magnitude
required. There was no assurance
that
Schermerhorn
National
Bankers Trust
The
problem.
committee
This
May of this year the
In
Robert C. Morris
uncalled
imaginative treat¬
required for the
debt. Bold and
independ¬
an
Reserve
Company, Pittsburgh.
Horace
rub ber.
immediately.
Mellon National Bank & Trust
Bank
National
of Minneapolis.
of the maturity of
of
Brian Reuter
F.
Winston L. Molander-
Northwestern
Bank
Boston.
Company,
Chicago.
Treasuries Responding;
To Free Market
vanee
Trust
&
only sources of supply of natural
National
First
The
National
Continental-Illinois
V Bank
tain the
L. Sumner Pruyne:
Knight
Francis M.
31
Thursday, December 18,1952
...
prob¬
they
flfolume 176
Number 5178
.
.
The Commercial and Financial Chronicle
.
Continued from page 24
(2393)
Securities
Texas
The
Act.
mem¬
Turnpike Revenue Bonds, that the bow effectively
many Blue Sky
exemption
under
the
Virginia problems can be solved when they
Blue Sky law for "Any security are taken
up promptly and infor¬
issued
by any state or political mally with state regulatory au¬
bers of this special subcommittee
are:
New State Legislation
H.
H.
Dewar
&
son
Robert¬
(Dewar,
San
Pancoast,
...
subdivision
or
agency
thereof"
extends only to general obligation
bonds and does not exempt reve¬
Antonio),
Chairman.
Affecting Securities
ticularly significant to note that
a
member of the
curities
Pennsylvania Se¬
Commission
tional
that
stated
Pennsylvania Securities Act
"has worked splendidly" and that
he definitely endorses that type of
Central
Michigan, where
State
a
in
was
minor amend¬
a
by
certain corporations organized and
exclusively
tional purposes,
for
educa¬
and
based
In
private stockholder
or
indi¬
is
amendment
sum¬
Illinois
committee
of
legislative
Central
the
work
on
anticipated
the present Illinois Securities Act
or
obtaining
complete
the
adoption
Illinois
new
of
as
soon
Securities
it
is
has appointed a
„
Supreme
Jaffe
the
Court
of
in
will
the
the
Cruttenden.
v.
plaintiff
(Jaffe)
under the
a
as
a
on
which administrative rulings were
in Austin
tary of
Texas
at
Com¬
case
F.
the
case
not
been
accordance
Class "B"
curity, the sale of which
was
se¬
both representing
Southwestern Group of the
IBA,
City),
are
working
Association
with
the
Bar
Committee.
will
bill
a
introduced-in
be
the
sel,
the
with
assistance
IBA
of
with
amendments
the
Austin
of
Securities
Commissioner of Texas at
in
were
Secretary
State of Texas and the
a
meet¬
October. 27th.
on
Although the Texas officials did
commit
not
themselves
him.
The
W.
amendments,
posed
mittee
believes
troduced at the 1951 session of
amendments.
legislature, to provide
Blue
new
law
Sky
th£
complete
a
for
New
The
visions
include
would
amendments
pro¬
(1) to permit the registra¬
Mexico, based in large part upon
tion of securities of seasoned com¬
the IBA model law of the notifica¬
tion type.In
"
-
Tennessee
we
expect that
a
bill
will
in
introduced
be
legislature, to provide a complete
new Blue Sky law for
Tennessee,
did not
prove
compliance with embodying the IBA model law of
the notification type with a few
subsection 5(7). Subsection 5(7) of
minor changes.
the Illiois Securities Law
spe¬
exempts
In Texas
empted sales)
"B", ex¬
the sale by regis¬
Legislative
tered
in
subcommittee of the
Texas
,
a
Committee
the
of
Group has been appointed
to seek relief from certain
market of certain securities about
(a)
which
administrative
specified
available
in
a
information
is
recognized manual
of securities. The Illinois Supreme
Court
on
May 22, 1952, in affirm¬
ing the decision of the lower court
in
favor
of
the
defendant,
held
interpretations of
provisions of the Texas Securities
Act
which
letter
set
were
from
the
forth
Securities
missioner of Texas to all
securities
(b)
to
dealers
seek
in
in
Com¬
general
Texas
amendments
a
to
and
for
savings
W.
Pennsylvania: for banks
operate with the special subcom¬
mittee in
Texas
embody
such
amendments
was
completely cooperative
Also, the laws of New Jersey re¬
considering the problem with lating to the administration e£
the committee of Virginia mem¬
estates, including investments for
bers, reversed his previous ten¬ fiduciaries, have been revised and
tative position and he now accepts the general insurance law of Vir¬
bonds
revenue
'
issued
political
agency thereof
or
a
exempt
as
the Virginia Blue Sky law.
result
of
this
ginia has been recodified and re¬
by a state
subdivision
or
vised.
We
from
think
it
important to call
The particularly to your attention the
Continued
meeting illustrates
on
page
Robert W. Baird
New
York
Midwest
v
Co.
&
Stock-Exchange
Stock
Exchange
-New York Curb Exchange
!'!•
Ui:
>
as
Securities Act to
of the proposed
are agreed to and
■
(Associate)
fv
Wisconsin Securities
clarify certain ambiguous and
inconsistent
provisions
of
the
Bought
—
Sold
present Act.
In
been
to
appointed
prepare
new
A-
Washington
MILWAUKEE
draft of a complete
law for Washington.
a
Blue Sky
Members
committee has
by the Governor
a
committee
this
of
in¬
Telephone: Br. 6-0525
Teletype: Milwaukee 291
clude:
Blanchett
Fred
(Conrad
& Company,
Ellsworth
Bruce
Seattle).
P.
(Wm.
(Blyth & Co.,-
Jfnvited in
Hemphill (Waldo Hemp¬
Investments, Seattle).
Beardslee
Merrill
(Richards,
Merrill & Peterson, Inc.,
MILWAUKEE
Spokane).
J.
Walter
Member Midwest Stock Exchange
Nicholls &
Earl
Nicholls
Waterman & Co.,
Lyle Wilson
J.
(Walter
(Earl
F.
(Pacific Northwest
j
Copies of the IBA
Municipal
Institutional
amending
or
Sky Law Exemption for
Revenue
In
interim
the
Committee
4
=
=
we
Bonds
report
reported
of
the
INVESTMENT
that the
SECURITIES
■«.,
Director of the Securities Division
of the
Virginia Corporation Com¬
had
taken the tentative
mission
position,
in
connection
with the
niiiisiigeifiiiiBimiiiEUEiimiiimiiiiiKiiitifiiiiiiiiitiiiiiiimiiiimiomimiiiiiiiiirc $96,000,000 State of West Virginia
Industrial
Mutual Funds
revising State Blue Sky laws.
Blue
DAVENPORT, IOWA
Utility
Industrial
Insurance
Sky laws have been furnished to
of the committees mentioned
above for their use in
BLDG.
model Blue
Bank and
all
Securities
BANK
Public
Public Utility
Seattle).
Company, Seattle).
Corporate and Municipal
WISCONSIN
Co., Spokane).
Waterman
F.
&
SECURITIES
s
•
7B
to
hill
Business Established 1922
'
>
completely rewriting the
present
Waldo
QUAIL & CO.
DAVENPORT
trust
in
tion for sales of certain securities
John J. Hasfurther
=
or
who
Inc., Spokane).
e
com¬
companies.
Harper & Son & Co., Seattle).
c
banks*
insurance
and
Members
Sherman
the
"C
|
York:
fiduciaries
panies.
Willson
panies by notification and (2) to
clarify and simplify the exemp¬
cified respects and that defendant
secondary
panies.
W.
proposed
proposed
ondary market. The Texas officials
indicated their willingness to co¬
the
(F.
will support most of the
legislature, similar to the bill in¬
dealers
of
were:
officials
the
legislature, similar to the bill in¬
ex¬
Class
members
subcom¬
the
that
troduced at the 1951 session of the
securities- in
banks.
of the pro¬
any
tiff then contended that subsection
(as
Director
Craigie
by registered dealers in the sec¬
unconstitutional in
amendments
the
at
the
was'
been
Homer L. Ferguson, Jr. (Masonquestion.
The
Secretary
of
Rhode Island: for banks, saving*
State, in accord with the request Hagan, Inc., Richmond).
banks and trust companies.
of the subcommittee, also subse¬
Garnett
O.
Lee,
Jr.
(Scott,
South Carolina: for trust funds.
quently added the San Francisco Horner & Mason,
Inc., Richmond).
Texas: for banks and trust com¬
Stock Exchange and the Los An¬
Walter S. Robertson (Scott &
panies.
geles Stock Exchange to the ex¬
Stringfellow, Richmond).
changes approved under the Texas
Virginia: for savings banks*
Edmund Strudwick, Jr. (Ander¬
Securities Act, so that securities
son &
Summaries
of
these
amenc^-i
Strudwick, Richmond).
listed upon those exchanges are
We are pleased to report that ments to legal investment laws
exempt from registration under
at this meeting the Director of the are attached to this report as Ap¬
the Texas Securities Act.
Securities
The subcommittee and its coun¬ Virginia
Commission, pendix B.
empted from the registration re¬
quirements of the law. The plain¬
5(7)
have
in
meeting to support
In New Mexico we expect that
.
the
Craigie
(F.
Craigie & Co., Richmond).
ing
of
There
New
the principal points
on
C
of
ing Agency Bonds.
Craigie & Co., Richmond).
ruled
State subsequently
favorably
with
Walter
August 25. The Secre¬
on
with
this special committee
meeting
a
the
have been amended to permit in¬
vestment in certain Public Hous¬
memo¬
general obligations is¬
as
of
District
Virginia Securities Division
New Jersey; for savings banks^.
May 23rd to discuss this prob¬ fiduciaries
and
insurance
com¬
lem
desired with the Secretary of State
of
legal
Rules
the
of
Columbia for investments by fidu¬
ciaries in the District of Columbia
to
Virginia Se¬
a
Civil
Court
of the
upon
of Texas and the Securities
submitted
the
Division
committee met
coun¬
points
Kansas
re¬
With subsection 5(7) of the Illinois
Securities Law
the
discussed
Illinois
In this
in
discussed
These proposed
alleged that
had
sold
was
(E. F. Hutton
Dallas).
(Barret, Fitch, North & Co.,
Kansas
City) and Frederick H.
MacDonald (Burke & MacDonald,
law. The defendant answered that
the stock
Taylor
The subcommittee and its
sel
IBA
of
Local
District
mem¬
by the specified issuers are this year to the legal investment
exempt from the Virginia Blue laws of the following states:
Sky law, and the members of the
Massachusetts:
for
savings
Chairman of the
Legislation Committee of the Mis¬
(Crut¬
Class "D" security
stock
Allen
& Company,
Virginia
sued
Co., St. Louis),
required under that
as
W.
(Rauscher,
Co., Inc., Dallas).
sissippi Valley Group, and Howard
Illinois Securities Law
that the
and
registered
&
the
Director
well
as
Pierce
be
chased from the defendant
was
Pierce
of
of
randum prepared by the IBA staff
to demonstrate that revenue bonds
Co., Houston).
C.
Legal Investment Laws
The
committee
curities
(Moroney,
counsel, then prepared briefs pro¬
posing eight amendments to the
present
Texas
Securities
Act.
stock which he had pur¬
common
tenden)
George Newton (G. H. Walker &
year.
decision
Charles
Dallas).
Moroney
Fitch
Commissioner
the
Beissner &
the
the
who
The Committee is pleased to
port
committee to re¬
Blue Sky law.
Missouri
the
vise
Illinois
of
known
during the coming
discus¬
In Missouri the Bar Association
a
Securities
Commissioner
as
further
that
sions will be held.
Act. This committee plans to dis¬
cuss such a program with the Se¬
curities
them the possibil¬
new
Blue Sky law in
Michigan. This project is entirely
in the discussion stage and it is
amending
continue
March 24th and
on
complete
organized
to
of
ity of obtaining the enactment of a
States
8 of the NASD has been
secondary
members
Michigan
Commissioner
Group of the IBA and District No.
E.
missioner
discussed with
joint
a
the
ties Commissioner and the Deputy
marized in Appendix A.
In
in
the
Legislation
Committee
of
the
Michigan
Group met with the
Michigan Corporation and Securi¬
religious instruction,
and no part of the
earnings of
which inures to the benefit of
Robert
all
to
A
(Rauscher,
Mayes
thorities.
bonds.
bers
Harland
Pierce & Co., Inc.,
the legal
market.
upon
or
This
Group of the IBA
securities
listed
maintaining grade
schools
vidual.
re¬
registered
dealers in Illinois of upholding the
constitutionality
of
subsection
5(7) which provides the basic ex¬
emption, from the securities regis¬
tration requirements of the Illinois
Securities Law, for trading in un¬
importance
ment exempts securities issued
any
States
contributed financially to
State Blue Sky Laws
Christian
the
nue
Vice-Chairman.
defendant
with
defense of this case because of the
The only amendment to
Blue Sky law this year
high
constitu¬
is
the
compliance
E. O. Cartwright (Merrill Lynch,
Pierce, Fenner & Beane, Dallas),
quirements of that paragraph. The
Blue Sky law.
or
5(7)
that
and
proved
the
operated
subsection
that
m
225
EAST
MASON
STREET
•
SROADWAY
6-8040
70
The Commercial
(2394;
and
Financial Chronicle
Thursday. December 18,1952
...
f*
Continued
from
page
last year and was vetoed by
69
Dewey.
ernor
plies
New State
Legislation
Affecting Securities
stock
and
have the
common
thorize
stock.
The
limited
1
vestment
up
under
to 40%
than
legal
in
cases
was
Union
Abandoned Property Laws
in
Co.
amended
was
in¬
by
serting a new article (V-A) which
requires every broker or dealer to
to the state comptroller, on or
pay
Price,
v.
York
New
before
10 of each
March
all
year,
by
the
New
Jersey
Superior
Court, Chancery Division, Essex
County, on March 24, 1952, where
the Court, emphasizing the fact
property which on the preceding
Dec. 31 was: (1) "Any amount re¬
ceived in this state after June 30,
that the trust instrument
nominee of such broker
held that the
1946
controls,
retrospective char-
by
holder
the
as
acter of the New Jersey Prudent-
curity
Man Statute, alone, did not render
*4
broker
a
of
dealer
or
unconstitutional
not
because
it
impair the obligation of
tract
or
interfere with
vested right
or
respect
to
con¬
alter any
the
New
of
of
unpaid
the
to
broker
a
or
dealer
customer which has remained
unpaid
the
to
five
the last
for
customer
years
be invested
on
after
entry,
dividends
count
of
date
the
other
than
of
receipt of
the
interest
or
such
in
broker
the
ac¬
dealer
or
This
amendment
improvement
the
good
to
of
than
more
is
of
requiring
abandoned
include
they
payment
shall
provisions that
apply
to
any
which has been paid or
required to be paid as
be
escheated
abandoned
or
Tax
The
Tax
New
1%.
Financial
City
Receipts was in¬
effective June 30, from
two-fifths of
The
increase
this
but the
r
i
Neuhaus
Co.,
&
Houston
Mullaney, Wells & Company,
Crowell, Weedon & Co.,
Chicago
Los
Continued
Angeles
Job for Private Capital
States
world the Union Jack
sources,
It
unsuccess¬
was
to
the
of
offices
from
New
fold
America
storing
our
City to New Jersey and a
investment funds have closed
Preparation
the
most
of
1953
for
the
state
legisla¬
regular session in
we
introduced
be
in
1953
of the IBA to organize ef¬
state legislation commit¬
each group,
in
resentatives
with
rep¬
state.
each
We
that all members of the IBA
the
lookout
for
posing amendments to
of
bills
pro¬
the
or
Blue
state
stable
a
necessity
Sky
en¬
laws,
to
ing
the
European economy, was
out of public tax funds
financed
and
administered
officials.
The
enterprise,
private
reliance
total
that
the
gestions
from
all
invites
the
in
problem
any
Legis¬
State
welcomes
opportunity
to
relating
and
assist
to state
I
legislation.
Incorporated
sug¬
members
STATE
Indianapolis 4, Indiana
assumed
government
eco-
In
industry;
but it
leaders
is also true
that the
hostility rbf
could
indif¬
industry
lender
situation
government
take
which
over
by
a
in
moved
not
a
the gap. This
fill
to
has
Government
American
the
is
happy solution.
Our
with
experience
invasions
ment
of
in
ment
financ¬
of the inadgovernment invest¬
ing has convinced
visability
govern-*
of private
us
field.
domestic
the
inadvisability
of
vestment in the
The
in¬
government
foreign field, howJ
is far less clearly seen. Too
On
this
recently
port,
point
"Business Week"
published
a^;special re¬
"Foreign Aid: What Comes
Next?"
people
many
today
still
of
talk
they think ought to be gov¬
ernment's role in iforeign invests
ment. Too few talk of what
to be the dominant role of
capital. And most of
rot learned
government* to
our
ernments
flow
of
us
that loans
do
not
ought
private
have still
gifts by
or
foreign
gov*
the
encourage
into the
foreign countries concerned, but
rather discourage such private in¬
capital
private
vestment.
default.
Discussing
flow
the
of
capital into foreign countries,
this report
LEGISLATIVE
almost
is
consulting
risk
Respectfully submitted,
this
government
omic functions without
a
Committee
on
truly amazing. It is dqubtless true
created
conclusion,
in
what
private
or
lation
pro¬
or
resulted
situation
This
view of the American, passion for
a
ference
In
"Point -Four"
100,
was
"power vacuum," and, inevitably,"
ever,
was,
type which might conceivably af¬
those engaged in
the securities business.
by government
it
too,*
abroad^
even 5tf
climate
ago."
years
and is, a public rather
undertaking.
In
gram
than
responsible
or
almost entire¬
national
our
Then,
abroad.
risks
what
government.
The Marshall Plan, aimed at sav¬
ly
have^
many
isn't
materials.
raw
turned the job over
legal investment laws, abandoned
property laws, or taxes of any
fect securities
of
so
investment
among
nine-!
tempting blue-chip',
opportunities right here at home
that private capital, by and
large,|
has been unwilling to take even
been
the
supplementing
for
sources
own
private British;
as
capital went abroad in the
teenth century.
But there
two¬
a
economy
much
normal
Up to the present time we have
anticipate that
considerable amount of legisla¬
will
presents
develop the world's re-
to
con¬
allies in Western Europe, and
our
actment
the
problem: the necessity of re¬
York
on
that
me
crisis that
suspended
lew
urge
to
investment bankers.
as
us
fronts
their
groups
clear
seems
rate, several investment funds
Since
flying.
was
Challenge of the Suspended Crisis
The
result
a
moved
18
page
community* precise economic factors of the
the adoption suspended crisis which America
now faces offer a special challenge
the tax rate,
in
opposition
As
tax
from
Foreign Investment Is
increased
ful.
be
If
we
largely the job of private risk
capital to establish a wholesome
world
"Right after the
war
it
was
as-
then
economy,
tunity
our
responsibility
and
industry
says:
reach agreement that
can
it is
to
oppor¬
as
an
technical
provide
leadership become clear,
^
COMMITTEE
Member Midwest Stock
v
»
George W. Weedon
Paul L. Mullaney
to four-fifths of
1%
opposed
tees within
North Meridian Street
*
Underwood
R.
Underwood,
financial
vigorously
fective
20
Co.,
profitably in whatever part of the
Proposals
York
affecting the investment banking
industry, we strongly urge all
RAFFENSPERGER, HUGHES & CO.
Milton
property
Gross
on*
tion
Corporate Bonds and Stocks
mond, Va.
Moore
other state.
any
a
AND
Strudwick, Rich¬
Anderson &
state
a
specific
not
amount
to
the
shall
1953, and since
Municipal Bonds
Robinson
Arthur R.
Meyer
state.
one
property to
tures will be in
DEALERS IN
&
Curtis, Boston
Seattle
&
Jackson
Webber,
Paine,
Marshall,
Detroit
liabil¬
definite
a
Albert Pratt
McDonald-Moore
abandoned
same
Dallas
Company,
Blyth & Co., Inc., Chicago
still
there
possibility
the
pay
the bill which
over
law
new
F.
William
received in
their New York City offices.
with such customer."
Earl
(as
have their
were
&
only
York
&
Memphis, Tenn.
Foster
Co.,
Rauscher, Pierce &
Reddoch
We strongly urge that any similar
passed the New York Legislature
loaned out
to
of
a
Maryland mutual savings banks to
invest deposits in equity stocks,
the Maryland Attorney General in
an
opinion dated Aug.' 6, 1952,
concluded that (under the Mary¬
land law which provides that de¬
posits of savings institutions "shall
or
the
proposals
se¬
a
New
tion, Nashville
Charles C. Pierce
Donald A. Meyer
York.
Under
creased,
to
right
claimed amounts
1946 due from
did
antecedently existed.
With
remaining
Meeks
principal offices in New York)
regardless of whether the un¬
entitled thereto for five
years following the receipt there¬
of."
and
(2)
"Any amount re¬
ceived in this state after June 30,
legal remedy that
or
to firms which
as
in
Equitable Securities Corpora¬
G. Gordon Meeks
this
vetoed
maintained
offices
or
person
it
which
branch
dealer
or
record
bill
the
well
property
property law of
The abandoned
in¬
in
provides
sustained in Fi¬
Trust
firms
ity
trust instrument
otherwise)
delity
rule
other
in
Ralph Owen
George K. Baum & Company,
Kansas City, Mo.
1, 1935,
received
whereas
remains
in¬
trust estate
except
vestments,
a
a
Prudent-Man
the
investments
which
of
and
is authorized
missioner.
fiduciaries
for
a w
savings associa¬
legislature expressly au¬
such
investment
before
purchase
have
other pay¬
or
law applies only to
new
amount
state",
approved by the state bank com¬
in¬
Prudent-Man
(which permits fiduciaries to
vest
such
constitutionality of the New
Jersey
Also, the
tions, but that in view of the long
accepted and followed practice to
the contrary, it would be wise to
savings banks
to authorize savings banks to in¬
vest
in
certain
preferred stock,
guaranteed
would seem proper
rectors of mutual
Investment law for
would
year
r
Co., St. Louis
G. H. Walker &
George J. McLiney
equity last year would apparently have
lor di¬ applied to amounts received by
directors") the purchase of
stocks
last
George A. New ton
Weil, Roth & Irving Co.,
Cincinnati
1946,
ments received after June
"any
The
amounts received
whereas the
to
30,
vetoed
Stanley G. McKie
Gov¬
law ap¬
new
applied to dividends
of the
security, in the discretion
fact, as reported in "IBA Wash¬
ington Bulletin No. 2-52," that a
new subsection (26) was added to
Section 235 of the New York Legal
only
June
after
bill
The
Exchange
sumed
would
Charles S. Vrtis, Chairman
Glore.
Forgan
&
that
flow
private
out
from
risk
the
When foreign investment is re-
capital
United
garded
as a
straight business
ven-
Co.,
Chicago
Richard A. Bigger
R. S. Dickson &
Co., Inc.,
Charlotte, N. C.
Waller C. Brinker
INDIANA
.*4
'% -;<$
4/*
BONDS
s
,
<
'
/
Indiana
■/%
INDIANAPOLIS
Investment
Co.,
Figures
In
£
,
Moore,
Stocks and Bonds of
V
Mullen
Leonard
&
Lynch,
Pittsburgh
C.
Corporations
E.
our
we're mighty
case,
six years
G. Fullerton
A.
Participating Dealers
CORPORATION
&
Hornblower &
Co.
Limited
of operation, our operating revenues
144% and the number of cus¬
tomers we are
129 East Market Street
Herman
Bldg.
Indianapolis, Indiana
T.
(nr^JBUC UTILITY
Telephone—Market 4321
Teletype—IP 2 9 8
4'*
t
i„
W
1*
Weeks,
Co., Inc.
St.
MUNICIPAL and
r-
Jones
&
versified
Company,
will be
Cleveland
The
'*
n-i
First
National
I ?0NDS
r/t.
Is
xr
,
Vvn
^
to
areas
which
are
widely di¬
agriculture and industry. We
happy to send a copy of our annual
\
Paul
Its "Setter... It's
Milhous, Martin & Co.,
Atlanta
<
x;
as
of
Bank
INDIANA
A
/
in 66 cities and towns in
report upon request.
Wayne Martin
M
serving 119,111 natural gas and
Indiana, located in
B. Joseph
,|
?f
was
water customers
Stanley R. Manske
MEMBER MIDWEST STOCK EXCHANGE
.
H.
serving increased 42%. Dividend
payments to shareholders have increased 40%.
At the close of 1951, Indiana Gas & Water
Boston
RAILROAD
proud of the way
have increased
Ames
Henry Hornblower, 2nd
and Distributors in
★
UP!
they add up. At the close of only a little over
Toronto
BOND and SHARE
ADD
Ernest O. Dorbritz
7
.v
},#■?>
f
K.
Denver
MUNICIPAL
*
J.
'
Orus J. Matthews
..
Kidder, Peabody & Co.,
Philadelphia
,
GAS
& WATER
CO., INC.
Volume 176
Number 5178
ture, and not
tional
into
the
needed will be
the
men
skill
As
not
go
of the present world seems favor- I have received from
able
back to
bankers
mvestment
The
risks
.only
we
and sulfers
On
judgment
the other hand
^ioii
held
are
personally,
the
mistakes.
greatest
tha"
not of
of
®
av
d
nroiprts that
P$v
V-
noint the
States
,7
r
,
®jeeis
J?0
,
profession: responsibility to
whole
those
dor> financed by the M. A. Hanna
who
skilled
esser
their
entrust
sense
tlLWv0nf
funds
to, r0
thTa"re
fjve
and
leaders
in
the
steel
M&'S
handling and, in a
responsibility
to
on
the
Drohiem
Gulf>
joint un.
a
he
rxun
^od b^eL
dertaking by Gulf 0il C°' and time '
*
chlr tTTcan
of
aV'the
and
DEWAR,
Dewar,
5
nensihilitv;
'mBt rinrSI f«rVfh^«nWfh" tHer^'aretnew roads,
mat spreadv-for
cnme
come
foreign,^7-fiGns
vestors.
robbed
They fear they
of their
b€f(
wdl
schools
-ecord
birthright: of
nat^^ brivdte
resources by a rapacious and
Drodd powerful nation, vt
'
:
sa^
J.
well
mav
p "
•
be
y
,
r
r
is
Iran
Expropriation
.
+c
created the worst
for trust
and
possible climate
confidence, for pri-
capital will
1
Will
vate
Vdie
it has
has
flow only when
iiuw Uliiy
w
of fair treatment
assurances
1
S
^
^ome
been
discriminatory
from
the
,
A
An-
of
fear
from possible
,.
.
fa x a t i o n
,
nationalization,
breach of contract,
f
^
...
outstanding example ot this
good-neighborr CansK^^^hen
Zfhf^n
Pfln!2'
Government tnni Jf niPrP«frip
took oft all restricthp
Pp.
p,
f
1 tl ficulties of forei-n investment
on
the withdrawal of Amen-
M
p
firmed by an appeal made to our
inHnQ+rv
hpln
fn
dnvpmmpnt
own industry to help government
j
^
agencies decide
which foreign in-
is not just humanitarianism vestments may be profitable and
talk about wanting other na- to give advice on preparing them
to match or better our for the capital market.
As inIt is sound business and vestment bankers," he
political sense."
m
where
the
they
you
jncoming Administration,
jernment
'that
our
we
says
.
proposition
matters
are
best
ceiving "new ideas" as to the so-
iution of the problems which concern
all Americans.
It is here that
recting the flow of private capital
int0 Europe and the undeveloped
countries.
best, and also accepts the wrollary
•that its own job isyo
rn^e it pos-
Specifically, I find a most
couraging report regarding
for, American
jto operate freely
:
buismessnien
wherever^n. the
world the American flag is honor-
ably received—then we shall see
that kind of cooperation
between
government and industry that will
our
a
solution
!
,Is
of the
long-term
wOrld crisis.
such
a
;
solution
of
"
;
eco.
the
'
-
sus-
to
me,
yes.
The "climate"
th»
government.
H *
JOSEPH
Fauset, Steele <fc Co.,.- PittsburghFAY,
CHARLES W.
Jr.,
Hooker
<fc
FINNEY,
San
Fay„
Francisco
HOWARD*
Jr.,
New York
Bear, Stearns & Co.,
S.
CHARLES
FISHER,
New York
HENRY
Atwill
and
Hanrahan
SYDNEY G.
& Co
Inc
New York
Pittsburgh
Company,
&
Co.,
Miami
J.*
Worcester
CHARLES
FORBES,
Miami
M.
CHARLES
FLEMING,
York
N.
Deane & Scribner,
Singer,
FISHMAN,
New
Trust Co.,
City
FAUSET,
c.*
Co.,
National Bank
Daily
News,
Miami
FORDON, RALPH
& Co.. New v«k
Fordon,
Aldinger & Co., Detroit
Continued
'Denotes Mr. and Mrs.
on
m|ttee/' meeting
This
Since 1885
Wc
have
portends
on
a greater emself-help and less on
years,
in
specialized
of
underwriting
the
bonds
municipal
Illinois
and offer you experienced,
and
for
68
prompt service.
the international dole, greater reliance
on
the methods of free
en-
terprise and
private finance that
underlie
success
in
our
at home.
this there is implicit for
industry
a
our
call for
H. C. Speer
& Sons Company
ESTABLISHED
1885
challenging role,
specialized technical
the i knowledge and experience.
Our
Re- stalents should contribute signifien-a
in
Was, received by
State Department.
sion
I
shared
Washington,
officials of the
On this
with
Mr.
occa-
Harold
Economic Affairs,
some
of the
thoughts on private investment
abroad which I intended to incormy
our
135 So. La Salle St.
Field Building
CHICAGO
Telephone
—
3
RAndolph 6-0820
aid undeveloped and underprivileged lands, and the effort to solidify the free world against the
totalitarian threat, while at the
and enriching our life at home. I
know that to a man this industry
will measure up to the respon-
remarks today. Asa sibility
direct result of this conversation,
Listed and Unlisted Stocks and Bonds
Genera] Distributors
—
and
the
opportunity
H. M. Byllesby and Company
(Incorporated)
of
the call.
Municipal Bonds
Public Utility
—
Fidelity Fund, Inc.
—
Industrial
Railroad
—
Municipal Bonds
Members Midwest Stock Exchange
Philadelphia-Baltimore Stock Exchange
Paal H.Davis & Go.
s
Members
Established
CG
ILL.
New York Curb Exchange
(Assoc.)
1916
133 South La Salle Street, Chicago
principal Stock Exchanges
10 South La Salle
72
MUNICIPAL BONDS
Underwriters and Distributors
PEORIA,
page
cently our IBA Conference Com- cantly in this re-directed effort to
! pended economic crisis feasible? It porate in
seems
B1
&
Chicago
.
j most surely bring this country to Linder, then Acting Assistant forr same time preserving our welfare
'nomic
City
Kansas
w.*
Buffalo
J
allen
First Boston Corporation,
know first-hand what it takes
phasis
own
attitude of
The
FARRELL, F. D.
distribution
left to those who understand them
rsibl'e
DUFFY,
Inc., New York
J.*
FARRAR, HOLDF.N K.
Smith, Barney <fe Co., Chicago
t.«c
are
industry might well be able to
national gov-make its contribution toward di-
the
accepts
economic
Co.,
NORMAN
Wertheim
LESLIE
FAIRCHILD, PAUL W.
Co., Inc., Cleveland
js interested in deempha-
their investment.
If and when
<
expect to receive
may
of
fruits
ROY
importantly, the climate seems to mg concern."
be-favorable in Washington. The
There are, then, most encourassured
FAHEY,
H.*
(4) Lastly, and perhaps most to translate a good idea into a go-
capital, American funds began
«w>ney^wheretiiey expectout, lea^t
the and
trouble
getting
it
Corporation,
Wheeling
Pollock & Co.,
E.
and
W.*
SEYMOUR
FABRICANT,
Wm.
Securities Corporation,
Chicaeo
W.
of Chicago, Chicago
A. E. Masten & Co.,
New York
Inc.,
a. Webster
Philadelphia Dougherty & Co.,
Dubois,
(Incorporated),
Fahey, Clark & Co., Cleveland
Doolittle <&
appear to businessmen. Furthermore, this impression is con-
THOMAS
EWING, ROBERT
T.*
Securities
DOOLITTLE,
aging signs that our country is on
the threshold of a new diplomacy,
sizing the influence of government a more realistic policy, a new apto flow into Canada in a tremenin thoge fields where government proach to the problems of the free
dous
rush^ People
place . their has no proper business and in re- world.
tions
can
York
New
Peoples National Bank, Charlottesville
tions
growth.
Co.,
donnally, jesse p..
as
*
W.
Company
Trust Company
-TSSSS1 HSSSSfr*
SS!they
'"due uy ivn. r-diey.
—of freedom from vexatious laws,
from
we
&
Continental Illinois National Bank
DOMINICK* II, BAYAR.D*
Union
M.*
F.
ELMER
CARL
DOWNEY,
Hall
EVANS,
Mericka &
J.
RUSSELL
&
Harris,
real effort to understand the dif-
.
reservations, there have
declarations Similar to
b
Pancoast,
York
Wm,
Dispatch, Columbus
Jr.,
Chicago
JOSEPH
DOICRGE,
abroad. To me, at least, Mr. Rob-
b^ve
,w^e
l°J^ the
^_d
New
Chicago
Salt Lake City
Eberstadt & Co.,
American
',f
S.
Company,
Company, Incorporated,
Philadelphia
; '
DIXON, JOSEPH W.*
jnson's responses give evidence
t^at our government is making a
many
th
F.
&
ROBERT
Columbus
HERBERT
Glore, Forgan &
DINEEN,
Collins
ENGLISH,
governments concerned;
Guaranties against certain non- dorbritz, ernest o.
business risks; and more liberal
Moore. Leonard & Lynch, Pittsburgh
Tax Treatment for income earned Dougherty, a. webster
industry itself,
a eoun-
try which is discouraging private
investment.
M
^flrnat^ js jravoralble
.\t/.
perhaps the/outstanding
example at the moment of
•
f
an
SHERMAN
EVANS, CARNOT
Hogle & Co.,
DIECKMAN,
foreign
American
A.
.
Incorporated,
Harper & Son & Co., Seattle
MILTON
ERGOOD,
H.*
Robertson &
DEWITZ,
installa: for example, Treaties with the
hosoitals
new
which
of
enterDrice
ural
new
HAL
P.
Julien
San Antonio
b
• essential ingredient of
work dselfout n
helrea o for- Brltai'"'S An«lo-Irania»world progress and security,
eign investment of nrivate risk"
These P"vately-financed ven- which is in the interest of every
bbIhoI?rwfrtlr tho Uiffinnitics tures raean to oul" own economy American."BcOiluv foBino
rw^tentiai* 3 steady flow of high-grade iron
thl
Because we have today touched
Ameril, SS2L
SSKt <>« ^ abundant petroleum, on the proper function of governiiew the fe^ie^tBBVet^Sf^in
What the more than $500,000,000 ment in these economic enterSI
initially invested will mean to the Prises, you will be interested in
^BH^^SeenU^mi^ W^Vrioped areas involved will Mr. Robinson's concrete suggeschanged in the last^,cental.
^ fdUy? seen
only after some tions as to how government can
veloped countries, however,, back-^
yearsr^s a by-product of course serve industry abroad. He lists.
M
Wm.
York
New
Fort Worth
Co.,
Company,
Francisco
Stroud
Inc.,
&
F.
California
EMRICH,
sills, Fahman & Harris, incorporated,
Nev Yolk
Blyth & Co.,
N>
Edwards
ELLSWORTH,
dcstaeblur, eggene l.
iraon
*?
U1
San
b. j. van ingen & Co., inc., New York
a major,
Incorporated,
Co.,
ELKINS, Jr., GEORGE W.*
Elkins, Morris & Co., Philadelphia
dempsey, l. Walter*
asserts-
1
&
WILLIAM
N.
JOHN
First
Comptroller of the Currency, Washington
f-tor in raising living standards
brine those talents to bea™
!?•
William
EGAN,
delano, preston
that
rannnt
Baird
EDWARDS,
^
?el?avenM& T°wn,fndl Crouter &
Bodine, New York
problem, ne asserts.
^matter
Persian
fart
alnnp
the West can be
prise in
"UnZa'PZefopm^rintabra!
characterizes
the
thp
W.
EATON, Jr., CHARLES F.
Eaton & Howard,
Incorporated, Boston
dciiaven, Walter t.
,.Surely the lngenuity and res0Vrce/u'I}essI„ °' private enter-
"Cerro
Steel's
.
invP^tmprit
,
projects mat point, tne
6 ®r
United
resnon-
nr;va+p
despoiling them. Here there
opVpral
arp
rPPoffni7im*
A.*
Co., Inc., New York
Milwaukee
v.»
l.
STEWART
Devine &
j.
Robert
*' S" Hecht & C°'' New °"eans
not
.
.
whilp
our
sibility
our
sense
have
wmcn governments nave not,
"in
made available with the
1S
C.
DUNNE, NEWMAN L.
g.
d.gruy,
bi'2®'"
'
.
I.All VMll 1 AH
VUIft VvllllUIft
DUNN,
York
pAUL:,
Q
these areas^ He remarks quite
nat-
Ml
IRA
*1**1
American National Bank and Trust
company of Chicago, Chicago
.lrankly however that.
idea of developing these countries,
of these
strength
effects
Our
lies in that <?ohpr
DECRER
ifshould not' and Probably cannot
P y I private American function effectively.
,
VMM
_
31
1*1
world> and why the government DeGROFF, ralpii l.
hag feU it necessary to move into
Robert Garrett & Sons, Baltimore
as
nmfit
h
rpeftl]rpps
«
mm
AM* 1^*11*1111 VV
the
omies of certain parts of the free
,.undevel_
with
m
AHPIHlailPP
UP^ecl d%BsRsmnh^?sQ&Eco.f New
States by the low standard of livthe undeveloped econ-
ana Germany as
s0_called
m
enormously
feel, immediately and
we
Cermanv
and
indicates
Robinson
Mr.
cpntimpnt
COUntries"-lands
d
nral
bad.
because they are self-correcting—
because
Italv
the
of
0
and Economic Devel-
Ex0]3161? Pi°seid f°5
(2) The elimate „ favorable in
ineviiaDie capitai
minimum
a
Fu-
aid"--
not
pnmmnn
well
inevitable
our
1J\
to
U
o
mistakes
+Hp
Frarfce
of
money
proves
our
travelers to reflect in-
^pooinrriv
personal embarrass-
no
if his
ment
taxpayers'
among
Continued from paqe 32
opment Staff„ a statement on the. JM
position his agency takes.
•*■
becoming
"TraHf*
j^y
government
the
is
Mr. Hamlin
71
Robinson, Assistant Chief of the
expressive slogan, coined by
Englancrs Finance Minister, is said
often than
investor
more
favorable
ronpar1
pretend tlist our- profes-
being right
specific
tbis
judgment is infallible. We
do know, however, that our very
life as professional men depends
wrong.
four
dimate
The
more
sional
on our
least
at
Investment
(1)
that job
do
to
in,
areas:
they
whose whole professional
equips them
best.
na-
investment
given
(2395)
the
where
areas
are
The Commercial and Financial Chronicle
.
charity,
or
of channeling
process
funds
.
form of
as some
idealism
.
Telephone Financial 6-4000
Street, Chicago
405
New York
rockford,
ill.
—
Philadelphia
—
3
Teletypes CG 273 and 2860
Pittsburgh
—
Minneapolis
[>
72
Continued
from
HAMMOND,
71
page
H.
WILLIAM
In Attendance at IBA Convention
JARDINE, Jr., J.
HANRAHAN,
JENKS,
HANSEL,
TOREEY, Jr., GEORGE C.*
Indianapolis Bond & Share Corporation,
Indianapolis
Calvin
ALEXANDER
Paul
Stix
PAUL
Frederick
6c
Co.,
Fridley
Business
St. Louis
Hess,
Folger,
GOODWIN,
FUGLESTAD.
Washington
Bankers Trust
New
Washington
New
G.
New York
Cooley
&
Hartford
Company,
GALLAGEK,
Yarnall
V.
GRIMM,
W.
B.
Co., Philadelphia
GALLAGHER,
W.*
New
EUGENE
GIBBONS,
Geo.
New
Jr.,
Incorporated,
GEORGE
8c
York
Inc., Richmond
JUST,
Inc.,
Richmond
Chicago
J.
T. C. Henderson
& Co.,
Des Moines
KINGSMILL,
I.
du
Philadelphia
KNEASS,
Sc
HICKMAN,
HILSON,
WESLEY
Werthelm
&
Co.,
Allen
us as our
Representative in the Southeast
with
headquarters in
604 Mutual
HOLMES,
j>
Co., New York
Carlisle
S.
&
New York
Jacquelin.
Cleveland
\
LUCKE, FRANK L.*
New
Laidlaw
York
&
Co.,
New York
JOSEPH*
Dillon, Read & Co., New York
Hamlin
New York
'v "'
SAMUEL D.
LUNT,
H.»
&
>
:
LYKLEMA, WALTER C.
DAVID
A.
Los Angeles
.
v
Buffalo
Lunt.
Allyn & Co., Chicago
C.
HOPKINSON, Jr., EDWARD
Drexel & Co., Philadelphia
SHARES MANAGEMENT CO*
HORNER, EDWIN B.*
National Underwriter and Investment Advisor-
Television-Flecfronicj Fund, Inc..
135 Sw»h to. SaUo* Street, Chicago
Scott, Horner Sc. Mason, Lynchburg
115- Broadway, New York '
•
und
HORNING, BERT H.
Stifel, Nicoiaus 6c Co., Inc., St. Louis J
: 7
;
HORNOR,
INC.
DeWITT
National City Bank, New York
HUDSON
National Underwriter
115
HORTON, ARTHUR
Penington, Colket Sc Co., Philadelphia
FUND DISTRIBUTORS, INC.
Broadway, Now York
Hudson Fund, Inc.
HORTON,
LEONARD
An Open-End Investment
M.*
Aubrey G. Lanston Sc Co., New York
135 South 1* Sail* Strao), Chicago
•
-
Prospectus
HQTCHRISS, EUGENE
Blunt Ellis Ss Simmons,
Chicago
your
HOUSTON, Jr., JOSEPH C.*
Calvin Bullock, Chicago
on
request from
Prospectus
you*
[
A'
HOWELL; WILLIAM.F. }
Hallgarten & Co.,
Negotiate:
>v
H
MANAGEMENT CO.
New York
^
HUDSON; FHED' Wi*
135 S. La. Salle St.
Bali; Burge & Kraus, Cleveland
y.
-
Direct Placement Issues
Bonds, Notes, Mortgages
or
Preferred Stocks
HUGHES,
,
Purchase
or
Sale of Businesses
insure the successful
can
..
WILLIAM
MILTON
Los Angeles- 7 *
u.r.f'S
,.v
tk
>4 '
of
Equitable Securities of Canada, Toronto
HUTTLIKGER,
F.
Co.
specialists
in-the
231 So LaSalle St.. Chicago 4. III.
financial 6 5265
*
.
•
7 DISTRIBUTION
TELETYPE CG 1751
7
J.
Co., Philadelphia
UNDERWRITING
UNLISTED TRADING DEPARTMENT
,,
E.
'
Los Angeles 13 Calif
Hutton
&
Cincinnati
Co.,
JOSEPH A.
W. E. Hutton Sc
ILLOWAY, LAWRENCE B.
Aspden, Robinson Sc- Co.,
York
Midwest
Stock
Exchange
134
SOUTH
LA
SALLE STREET,
ANdover
Branch
Exchange Firms,
Louis, Mo.
Henry B. Warner & Co., Inc., Philadelphia, Pa.
Philadelphia
ROSCOE C.
Association of Stock
.New
Member
Direct Wire-to Scherck, Richter Company, St.
W.
Co., New York
PRospect 3809
INGALLS,
-
Jr., JAMES M.
IGLEHART,
negotiation of
714 W. Olympic Blvo
Chicago 3,
Illinoii
Chicago
TELETYPE CG 1399
W.
SALE AND MERGER OF COMPANIES
KURT
P. Ristine &
HUTTON,
INSTITUTIONAL INVESTMENTS
PLACEMENT LOANS
m
MUNICIPAL BOND DEPARTMENT
HURRY, HARRY W.
i
Bingham, Walter & Hurry, Pasadena
OIHECT
-,y
HUNTER, HOWARD-W.*
'!
HURLEYy WILLIAM L.
Baker, Simonds & Co., Detroit
W. T. Grimm &
-Y'ork 6, tt.Y.
First Securities.
MacGregor, Pittsburgh
JANSEN*
t
White, Weld & Co., New York
C
.
t
G*
HUNT, E.
us.
»w
~
' -.135 $. La.*Salle St.;
S.*
Wagenseller & Durst,
HULME,
completion of these
opportunities by consulting
N
115 Broadway
Indianapolis
,
ers
v..
or
HUGHES, W. SHANNON !
Raffensperger, Hughes & Co.,
Glover &
You
■
t
v
ALBERT Rk*
HUGHES,
*
authorized, dealer
PriBcijuil lUwIerwriter
Broadway
Lord, Abbetfc & Co., New York
<
Sale and Leaseback Transactions
-
115
.
-be obtained from
-
New York 6, N Y
Chicago 3, 111.
may
HI]DSON^R1N&0!STKIBUT(HIS
.....
We Assist Dealers to
Company
,
investment dealer or
TELEVISION SHARES
HOWE, JAMES M.
7
Farwell, Chapman & Co., Chicago
-If
'
WILLIAM E.
LUDIN,
& Doremus,
Inc.,
.
.
Baxter, Williams Sc Co.,
R.
ARTHUR
Blyth & Co.,
7
,
LUCAS,
A.*
Banking, New York
LAMON,
Washington
Chicago
Jr., MARK A.*
Lucas, Eisen 8c Waeckerle, Kansas City
Association,
HOPKINS, JOHN E.
J. P. Morgan & Co., New York
Company,
Stearns & Co., New York
LUCAS,
Company, New York
De Coppet
Bankers
<
LOWRY, DAVID A.*
J.
WILLIAM
St. Paul
THEODORE*
V.
Bear,
IRVING
LAMBORN,
ELAINE
Investment
Building, Richmond
Tel. Richmond 3-8516.
TELEVISION
KUHNS,
Bank,
JOHN S.*
Illinois
Tho
Louis
St.
LOW,
KRUSEN, H. STANLEY*
Shearson, Hammill & Co.,
HOLLAN, JOHN V.
Barr Brothers &c
Company,
HUGH
JOHN
National
First
LOOMIS.
Prescott, Shepard Sc Co., Cleveland
HODGES, THOMAS E*
Keystone Company, Boston
W.*
LOOMIS, CHARLES H.
S.
A.
Braun, Bosworth & Co., New York
has become associated with
&
KRUSE,
York.
P.*
Smith & Lombardo, Birmingham
HUGH
LONG,
Rauscher, Pierce & Co., San Antonio
York
New
CLIFTON
Canada,
B.*.
LOUIS
KOERNER,
JOHN S.*
HIPKINS,
of
Assn.
Kuhn, Loeb & Co., New York
Schneider, Bernet & Hickman, Dallas
formerly Director of the Securities Division of
the State Corporation Commission of Virginia
A.
Trust
KOCUREK,
J.
LOMBARDO, JOSEPH
Stubbs,
NEWELL
KNOWLTON,
HILDRETH, WILLIAM S.*
Peoples National Bank, Charlottesville
MR. WILLIAM C. KING
Corporation, New York
GEORGE
Mercantile
New York
Co.,
EDGAR J.*
Hugh W. Long & Co., Elizabeth
HEWITT, MAX A.*
Jones, Kreeger. Sc Hewitt, Washington
thai
H.
Philadelphia National Bank, Philadelphia
KNIGHT,
Milwaukee
Co.,
&
LOFTUS,
R. S. Dickson & Co., New
Investment Dealers'
Houston
Pont
J.
J. VICTOR
Loewi
Toronto
HESS, WILBUR E.
Hess,
JOSEPH
Little
H.
LOEWI,
San Francisco
Co.,
Union Securities
HESS,
Fridley &
6c
Association, Chicago
CARROLL H.
& Co., Jackson
LITTLE,
VERNON E.
Barth
KING,
HENDERSON, THEODORE C.
ARLEIGH P.*
Woodcock, Hess 6c Co.,
Investment Bankers
C.
New York
ALDEN H.
LITTLE,
Bacon, Whipple & Co., Chicago
KIMBALL,
National Bank,
Chase
New York
Chicago
JOHN S.
LINEN,
WILLIAM D.
KERR,
R.
Investment Bankers Association,
Kenower, MacArthur & Co., Detroit
HENDERSHOT, RALPH*
World-Telegram & Sun. New York
WILLIAM C.
announce
York
New
MARY
LINCOLN,
KENOWER, JOHN L.*
Cincinnati
Francis
pleased lo
Blych 6c Co., New York
Rollins 6c Co., Inc.,
Devine Sc Co.,
York
LEE M.
LIMBERT,
KENNEDY, FRANK T.*
HEIMERDINGER, JOHN M.
Walter, Woody 6c Heimerdinger,
White, Weld & Co., Boston
are
Management Co.,
•
C.
Bear, Stearns 8c Co., New
Chicago
C. J.
f
CONRAD
DONALD
LILLIS,
PAUL A.*
Blair,
York
H.
Stern, Lauer & Co., New York
Co., Cleveland
Shares
L.
Bear, Stearns & Co., New
LIEBENFROST,
KEMBLE, WILLIAM T.*
Estabrook & Co., Boston
York
New
SALIM
LEWIS,
PAUL *
Times,
HEWITT, CHARLES L.
We
&
MRS. REUBEN A.
Magazine, Chicago
Finance
KELLER, Jr., C. COURTNEY
Cincinnati
(Incorporated),
HENRY R.*
Hallowell, Sulzberger & Co., Philadelphia
Mrs.
York
Jones
Television
Baltimore
HEIMERDINGER, JOHN G.
Walter, Woody 6c Heimerdinger,
Morgan Stanley Sc Co., New York
New York
W.
HENRY P.
Robinson-Humphrey Company, Atlanta
JOHN C.*
HAMMOND, Jr.,
Mr. and
DONALD
H.
York
New
A.
Merle-Smith. New York
&
LEWIS,
Cleveland
HEID, Jr.,
HALLOWELL,
Bissell & Meeds.,
♦Denotes
New
HALL, HERBERT S.
GIBBS, LOUIS A.*
Laird,
C.*
HALLORAN, ROBERT K.*
Robert Winthrop Sc Co., New York
B.
T.
Chicago
MEAD
Dick
JOSEPH, HERMAN B.
Trust & Savings Bank,
BENJAMIN J.*
Bros. & Hutzler,
LEWIS,
Peters, Writer & Christensen, Denver
H.
HUDSON B.
8c Co., New York
Salomon
New York
JORGENSON, O. JERRY*
Company,
Central Republic Company,
New York
Company, Inc.,
Trust
Baumgarten, Downing 6c Co.,
H.*
Corporation,
E.
Gibbons
B.
JOHN
Harris. Hall Sc Co.
Chicago
Loeb, Rhoades & Co., New York
GEORGE -
Geyer & Co.,
HARDIN
Harris
HALL, EDWARD B.
Incorporated,
Chicago
GEYER.
KURT
Mason-Hagan,
Carl M.
H.*
&
H.*
Philadelphia
Morgan Stanley
LEVY,
THOMAS
Jr.,
Co.,
&
LEMKAU,
H.
York
IIAWES,
Chicago
Bank
Louis
SEAVER*
Jones Sc Co.,
ROBERT
Drexel
RIGGS
Baltimore
New York
Hutton & Co.,
E.
LEE,
D.
Hartford
T. H.
JAMES J.
W.
JONES,
New York
LEDYARD, Q. R.
J, C. Bradford & Co., Nashville
Jones & Co.,
G.
T.*
OR IN
Estabrook & Co.,
LEE,
JONES, GRAHAM*
Cooley 6c Company,
York
HAGAN, III,
GEORGE, EDWARD C.
FRANK
New
T.*
Hanseatic
Mason-Hagan,
M.
Harrimati Ripley & Co.,
ALFRED
Chemical
ELISHA
RICHARD*
Levy & Williams, San Francisco
Lawson,
LEACH,
Pittsburgh
Bankers Trust Company,
Jr., GILBERT*
White, Hattier & Sanford, New Orleans
HAUSER,
R.
JONES,
Dallas
HATTIER,
HEFFERNAN,
Clark, Dodge Sc Co., New York
GERNON,
York
HAGAN,
EARLE
E.
HAYES, EDDE K.
New
Hayden, Stone Sc Co., New York
GEDDES,
York
New
WILLIAM H.»
Grimm Sc Co.,
Bank,
HAYDEN,
Reinholdt Sc Gardner, St. Louis
GATCI1ELL,
T.
JONES,
Atlanta
Chase National Bank, New York
Gregory, New York
WILLARD
Georgia,
ROBERT L.
GRUNEBAUM,
FRANCIS P.
FRED
HATCHER,
GRUBBS, M. M.
Jenks, Kirkland Sc Grubbs, Pittsburgh
Kidder, Peabody Sc Co., New York
GARDNER,
SHELDON R.»
National Bank,
Bonner Sc
HERBERT
Sc
>
E.*
.
York
New
LAWSON,
Edward D. Jones & Co., St.
B.*
of
EDWARD
York
PETER I. B.*
American Securities Corporation,
LAVAN,
Gundy & Co., New York
JONES,
MAURICE M.*
First National
New York
Company,
Trust
GREGORY, Jr.,
Trubee, Collins & Co., Buffalo
G.
Co., Chicago
LLOYD
HATCHER,
GEORGE M.*
Gregory Sc Son, New York
CHESTER O.
Wood,
Company, New
Bankers Trust
WILBUR
Johnson,
WELLS*
LAUD-BROWN,
T.*
JOHNSTON, PAUL A.*
Barron's Weekly, New York
Francisco
ELMER
Becker &
G.
Trust Company
GREGORY,
GAERSTE, JOHN L.
GALE,
A.
BRADLEY
J.
Chase
KEITH
Exchange,
IIASSMAN,
& Trust Company,
Bank
Guaranty
GREEN,
York Stock
B.
&
Latshaw, Kansas City
Uhlmann &
JOHNSTON, EDWARD S.*
BARTER, ROBERT L.
Sutro & Co., San
Sr.,
Johnson
York
GREEN,
H.
JOHNSON,
Sachs 6c Co., New York
HATCHER,
National Association of Securities Dealers,
FUNSTON,
Goldman,
GRAY, EDWARD C.*
New York Stock Exchange, New York
NEAL*
Company, New York
WALLACE
FULTON,
LATSHAW, JOHN
Milwaukee Company, Milwaukee
JOHNSON, THOMAS M.*
York
Los Angelei
Security-First National Bank,
J.
JOSEPH
FREDERICK G.
LARKIN, Jr.,
JOHNSON, ROBERT C.*
/
Kidder, Peabody 6c Co., New York
Corp.,
HARRIS, HENRY L>
Bank, Fort Worth
I.
GRAINGER,
Chemical
W.
Louis
Securities & Research
Sills, Fairman 6c Harris, Chicago
K*
First National
White, Weld & Co., New York
Jr.,
St.
WALN*
E.
National
New
The
HARRIS, DAVID J.
ARTHUR E.*
Jr.,
T.
GRAHAM,
ARNE
FULKERSON,
HARE,
Winston Sc Co., Houston
Rowles,
S.*
Incorporated,
Nolan,
A.*
Globe-Democrat,
Week, New York
Chase
JOHANIGMAN, S. E.
The Milwaukee Company, Chicago
Association,
M
ARTHUR D.*
National Bank, New York
LANE,
•
EDWARD
JOHNSON,
WILLIAM
Los Angeles
Johnson, Lane, Space 6c Co., Savannah
Houston
ARTHUR
MURRAY
Bankers
Staats 6c Co.,
First National Bank, Chicago
:
«
Nashville
MORTON*
JENNETT,
;
Washington
McK.
JOSEPH A.
Blewer, Heitner Sc Glynn, St. Louis
New Orleans
Company,
WILLIAM
GLYNN, Jr.,
FRIEDKICHS, G. SHELBY
Howard, Weil, Labouisse, Friedrichs
FRIEND,
R.*
Co., New York
Investment
R.
Landstreet & Ktrkpatrick,
Clark,
'
EARLE*
Jenks, Kirkland 6c Grubbs, Philadelphia
York
GLAVIN, CHARLES C.*
The First Boston Corporation, New York
F.
Worcester
Co.,
DOUGLAS
HANSON,
GILLIES, GEORGE J.
A. C. Allyn and Company, Incorporated,
New York
Company,
6c
Shields 6c
HAPP,
EARL G.*
&
SYDNOR
Michigan Corporation, Detroit
of
New
O.*
&
W.
Jr.,
GILLINGHAM,
Jr., BENJAMIN
FRIDLEY,
Ac
First
Bullock, Denver
FREDERICK,
FRICK,
GILBREATH,
William
PAUL B.*
Hanrahan
LANDSTREET, III, BEVERLY W.
JAMIEKON, JAMES P.
Glore, Forgan 6c Co., Chicago
Braun, Bosworth 8c Co., Chicago
HAMPSON, PHILIP F.
Chicago Tribune. Chicago
FORSYTH,
December 18,1953
The Commercial and Financial Chronicle... Thursday,
(2396)
CHICAGO 3, ILL.
3-1520
Office—Champaign, Illinois
if
yolume 176
Number 5173
...
The Commercial and Financial Chronicle
(2397)
LYNCH, Jr., CHARLES McK.*
■Moore, Leonard & Lynch, Pittsburgh
MEAD, W. CARROLL*
LYNCH, YYILLARD a*
W. C. Langley & Co., New York
MERRELL,
LYNE,
METZNER, RUSSELL H.
Central National Bank, Cleveland
OSGOOD, ROBERT
MEYER, Jr., MAURICE*
Hirsch & Co., New York
OSTRANDER, LEE H.
LEWIS
Mercantile
Lee
F.i-
National
NOYES,
Mead, Miller & Co., Baltimore
Bank, Dallas
LYNN, HENRY S.»
Sterne, Agee & Leach, Birmingham
BLANCKE
fttntHAKU,
Hempshill, Noyes
ROLAND*
O'DAY,
Higginson Corporation, New York
& Co.,
Northern Trust Company, New York
OTIS,
LYONS,
MILLER,
B.«
Magazine,
Chicago
MacARTHUR, ROBERT W.*
MILLER,
Paine, Webber, Jackson & Curtis, Boston
First
MacDONALD, GEORGE C.
Mackall
WILLIAM
&
Coe,
MAGNUS, JULIAN
"Magnus
Mitchell
A.
ROBIE
&
New York
L.
STEVENS
Brown &
MARCKWALD, ANDREW
Discount
MOORE,
Sons, Baltimore
MOREY,
A.
International
John
L.*
Bank, New York
MORGAN,
Milhous, Martin & Co., Atlanta
The
MARTIN, Jr., WILLIAM McC.*
Federal Reserve Board, Washington
J.
W.
Securities
&
McCORMICK,
York
Corp.,
H.
Jr.,
LEONARD
Company,
•
ROBERT
W.*
Portland
-
SHREVE, WICKLIFFE*
Hayden, Stone & Co., New York
Van
&
New
Lord,
York
&
G.
Abbett &
Intermediate
Stetson
Credit
SIEFERT, RUSSELL
Stern Brothers &
SIMMONS,
E.*
Co.,
RICHARD
Kansas City
W.
Blunt Ellis & Simmons,
-
SIMONSON, Jr.,
National
HENRY
National Securities
New York
Co., New York
&
Chicago
J.*
Research
'Putnam
aeon,
I *
SKINNER, DAVID L.
Harriman Ripley & Co., New York
SMITH, DUDLEY C.*
Investment Bankers Association,
Chicago
Continued
on
page
yy/nppiQ
lso.
JAMES
Chicago
New York
D.
Members
New
GEORGE
New
York
W.
Stock
of
Curb
\j.
Partners
•Quail & Co., Davenport
William
T.'Bacon
Jay N. Whipple
Ernest
F.
Harold
Hartshorne
Francis R. Schanck,
Harold A. Bray
Leslie
.
QUIST,
William
Robert B. Krell
H. Sherburne
Chicago
I
LEO L.
Harold E.-Wood
Co.," Milwaukee
Exchange
Exchange
Exchange (Associate)
Exchange Firms,
•QUIGG, JAMES F.
Paine, Webber, Jackson & Curtis,
Incorporated,
Stock
York
New
QUAIL, JOHN J.
PARKER
Robert -W. Balrd
York
Midwest Stock
Distributors, 'Boston
HENRY
'Association
NORTH, LUDLOW F.*
♦Denotes'Mr. and 'Mrs.
&
D.
Kerr
Joseph E. Rich
1
Wagner
Co., St. Paul
RAISS, JOHN*
'Burnham
RAND,
&
Co., New York
RICHARD
Rand
&
Co.,
N.*
New York
RAND, THORBURN*
Rand
DISTRIBUTING
•
TRADING
&
RANKIN,
Co., New York
HARLEY
L *
Goldman, Sachs ic Co., Philadelphia
RASH,
J.
LISTED & UNLISTED
J.
B.
Hilliard
RATCLIFFE,
'
•
.
.
'
'
'
&
''
•
Chicago
JOHN
Rauscher, Tierce
our
distribution
the
•N
own
we
placement
retail
and
wholesale
RAY. NORMAN
blocks
of
RAYMOND,
Dominion
Securities
'New
A.
New
York
Curb
Chicago 4, Illinois
Omaha
GUY*
R.
Webber,
Jackson
&
Curtis,
York
REILLY,
Exchange
F.
"&
Financial
Chronicle,
York
Chicago
DEarborn 2-0500
REIS,
Jr.,
New York
San Francisco
GORDON*
Seasongood
BEISSNER.
Established 1893
VINCENT
Commercial
Lincoln
A. G. Becker fe Co.
Refsnes, Ely, Beck & Co..'Phoenix
•
Denver
Securities Corporation,
W.
REFSNES, JOSEPH E.
New
209 S. La Salle Street
COMMERCIAL PAPER
'
J.
•-INCORPORATED
Co.
York Stock Exchange & Mir'west Stock Exchange
-Associate Member
ANDREW
STUART
Paine,
New
Members "New
Co., Dallas
G. Edwards '& Sons, St. Louis
REED,
&
&
C.*
York
-REDMAN.
Crnttendbn
PREFERRED AND COMMON STOCKS
Philadelphia
H.*
Kay, Richards & Co., Pittsburgh
offer unusuarfacilities for
of
Co.,
&
'*
^RAUSCHER.
Through
CORPORATE AND MUNICIPAL BONDS
Son, Louisville
MYRON F.*
Co.,
•RAUCH,ALFRED*
Kidder, Peabody
SECURITIES
t
DILLMAN "A.*
-Bache-&
"* *
74
York
Hartford
Co.,
Fund
PUTNAM,
J.*
New
ALBERT
PUTNAM, Jr.,
Chicago
•
Corpi*
Co., New York
Co.,
Putnam &
Co., 'New York
Folger, Nolan,
Washington
&
PUTNAM,
Alstyne, Noel & Co., New York
NOLAN,
Webster
UNDERWRITING
ft-
New York
Brothers, New York
Co., 'New York
TRANKARD, 2nd, HARRY
D.
MacDONALD
Land
ALLEN
Riter
G. " V.
Securities Corp.,
York
Bacon, Whipple & Co., New York
Newhard, Cook & Co., St. Louis
NIX,
HARRIS b.*^
•:
& Co., Cleveland
Camp & Co.,
Weltner &
New
LAWRENCE
Co., St. Louis
Smith, Barney &
-NOEL, RICHARD C.*
'McDonald
SHIELS,
TOWERS, ROBERT A.
NICHOLSON, DANIEL F.
Chicago
G. H. Walker & Co., St. Louis
Shields & Co.,
S.
T.
PRUDDEN, HORTON R.
Milwaukee
STANLEY
New York
POTTER, »A. €.*
York
New
Gibbons & Co., New York
I. M. Simon &
Banks, New York
G.
The Weil, Roth & Irving Co., Cincinnati
^McKINNEY, CLIFFORD P.*
•
Co.,
Shields & Co.,
•POPPER, ELVIN K.
NEWHARD, CHAPIN S.*
McGREW, EDWARD D.*
Northern Trust Company, Chicago
&
&
B.
H.
VIRGIL*
Commission,
SAVARD, J. ERNEST
Savard, Hodgson & Co., Montreal
SCHAP1RO, MORRIS A.*
M. A. Schapiro &
Co., New York
Co., Chicago
POOLE, MONROE V.*
Geo.
R.*
JAMES
PRATT, ALBERT
"Paine, Webber, Jackson & Curtis, Boston
Federal
ARTHUR N.
Milwaukee
Stone
'
&
NEWBURGER, Jr., FRANK L.»
Newburger & Co., Philadelphia
Exchange Commission,
Kalman & Co., Minneapolis
MEAD,
Cruttenden
NEWCOMB,
&
McFARLAND, DONALD E.
McLAREN^
Co., Pittsburgh
Hallgdrten & Co.,
Washington
•
Hentz
NEWBORG,
Morgan & Co., 'New York
i McKIE,
&
RICHARD
Vance, Sanders & Co., Chicago
NEUMARK, ARTHUR J.
New York
McENTIRE, RICHARD B.*
,
Masten
E.
<
Bacon, Whipple & Co., New York
JESSE A.*
'
Sanders & Newsom, Dallas
PODESTA, ROBERT A.*
E.
SHERBURNE, HAROLD
SHERRILL, H.
SANDERS, Jr.,
PLATT,
NEUHAUS, PHILIP R.
Underwood, Neuhaus & Co., Houston
Mcelroy, david b.*
A.
Investment
SHEPARD, ROBERT O.*
Prescott, Shepard & Co., Cleveland
Bank, Dallas
SANDBERG, MAURICE II.*
PIPER, Jr., HARRY C.*
Piper, Jaffray- & Hopwood, Minneapolis
NELSON, ARTHUR*
"Burnham & Co., New York
McDonnell, Donald n.
The
New York
R.
G.*
PARIS
Mercantile
M.
Association
SHIELDS, CORNELIUS*
BURT
Lehman
J.
Companies, New York
SAMPLE, CLARENC7 E.*
FIETROWICZ, STEPHEN R.*
Chicago Tribune, Chicago
San Antonio
National
RYONS, JOSEPH L.*
Lester, Ryons & Co., Los Angeles
SAGE, II, ANDERW G. C.
PIERCE, CHARLES C.*
Rauscher, Pierce & Co., Dallas
Weeks, New York
SHEFFEY, JOHN
G.
Bank, New York
C. J. Devine & Co.,
Angeles
Topeka
Baltimore
McDonald & Co.:, Cleveland
York
,'Ryan, Sutherland & Co., Toledo
RYAN,
Legg & Co.,
SHEEDY, HERMAN
Glore, Forgan & Co., New York
E.
C.
WILLIAM Sv
The Bond Buyer, New York
Meeds, New York
Washington
PHILLIPS, SPENCER
Emanuel, Deetjen & Co., New York
Co., New York
MURRAY, Jr., WILLIAM <N.
The Illinois Company, Chicago
Washington
McGEOCH,
&
T.
McDonald, harry a.
j-
&
ROWEN, PAUL
Co.,
Prudential Insurance
Company, Newark
J.*
ROBERT
A.*
&
SHANKS,
Merle-Smith, New
RUSSELL,
Company, Chicago
Hanni
SHANKS, CARROL M.
New York
Stroud &
Company, Incorporated.
Philadelphia
Co., St. Paul
MULLINS, FREDERIC P.
Chicago
Thayer, Baker & Co., Philadelphia
]
Morton
Russ & Co.,
WcCURDY, WALLACE M.*
Securities
H.
ROWE,
RYAN,
Dean Witter & Co., Los
MUIR, EDWARD D.*
Curb Exchange, New
•Blyth'& Co., Inc.,
&
Newark
A.
SEVING, FREDERICK T.*
Butcher & Sherrerd,
Philadelphia
I.*
Hornblower & Weeks, New York
M.
RALPH
John
Tribune, New York
Securities & Exchange
MULLANEY, PAUL L.
Mullaney, Wells & Co., Chicago
Finance
&
Richmond
SENER, JOSEPH W.*
MIDDLETON
Federal Reserve
Shares, New York
GUY
PHILLIPS,
International Bank,
Co., Greenville
EDWARD
Dick
New York
D.*
Caldwell Phillips
Brothers, New York
Hornblower
Company,
Co.,
Reconstruction
PHILLIPS,
WALTER*
Seltsam,
B.
Roll & Co.,
ROSS, ALFRED
S.*
PFEFFER, DELMONT K.»
National City Bank, New York
York
MUDGE, LOUIS G.
"A.
J. P.
S.*
MOSSER, CHARLES R.
McCORMICK, D. DEAN*
McCormick
JOHN
Illinois
SELTSAM, DONALD
Chicago
York Herald
Laird, Eissell
Irving Trust Company, New York
MORTON, WILLIAM H.*
&
ROSE,
PEVEAR, WILLIAML W.
Brothers, New York
Company, Chicago
St. 'Petersburg
York
ERIC
KARL
Knickerbocker
Atlanta
L.
Pitfield & Co., New
Lehman
McCLEARY, GEORGE M.*
New
C.
MORSE,
MAYNARD, WALTER*
Shearson, Hammill & Co., New York
Florida
CHARLES
Corporation, Boston
Furman
J. B.
R.
FAIRFIELD
PETTIT,
Hemphill, Noyes & Co., New York
Lehman
McCALL, ARTHUR C.*
Alester G.
ROLL,
Cleveland
PETERSON, E. NORMAN
Equitable Securities Corp., New York
Atlanta
MORSE, FRANK H.*
DENNY
Parker
New
York
H.
Stringfellow,
Dominick, New York
Rodman & Linn,
Peters, Writer & Christensen, Denver
C.*
The
E.
Scharff & Jones, New
Orleans
F.*
Gordon Graves & Co.,
Chicago
Hirshberg,
MORSE, Jr.,
W.
MAXWELL, JOHN M.«
The
JACK
&
MORSE,
Co.,
MAXWELL, JOHN C.*
Tucker, Anthony & Co., New York
MAY,
AVERY
ROVENSKY, WILLIAM
Winston-Salem
Trust
JOHN
Co., San Francisco
National State Bank,
York
RODDY, JAMES
Corporation, New York
Perko & Co.,
PERRY,
MORRIS, JOSEPH L.
Robinson-Humphrey Company,
MATTON, CHARLES F.
Northern
Jr.,
PETERS, GERALD P.
Norris
MATLOCK, WOODFORD*
Broad Street Sales Corporation, New York
Trust
Dominick &
&
SELLERS, PAUL
ROUSE, ROBERT
MORRIS,
Distributors, Boston
GEORGE
Bank &
EDWARD H.
Schwabacher & Co., New
J.*
«
'
E*
SEIDLER, Jr., ALEX.
ROBINSON,
Hornblower & Weeks, Chicago
W.*
Scott
R.*
PERSHING, F. W.*
Pershing & Co., New York
F. S. Yantis & Co.,
Milwaukee Sentinel, Milwaukee
Wachovia
F.
&
ALBERT
SCOTT, WILSON A.
McKelvy & Co., Pittsburgh
ROCKEFELLER,
EMIL
PERRIGO, CHARLES
Corporation, Chicago
Schwabacher
Jr.,
SCHWERENS, MURRAY R.
World-Telegram & Sun, New
Strudwick, Richmond
MORRIS, CHARLES K.
MASTERS, WILLLAM G.*
Putnam Fund
G.*
Co., New York
ROGERS, DONALD
J.
Los Angeles
SCHWABACHER,
RODMAN, T. CLIFFORD
PERKO,
B.
LAURENCE
Parker
HENRY
Inc., New York
Distributors Group, "New York
Tribune, New York
MORGAN, WALTER L.*
The Wellington Company, Philadelphia
B.*
Mills, Spence & Co., Toronto
MATHISON,
GERARD*
EMERSON
Morgan & Co.,
MARTIN, WAYNE*
MASSEY, ARNOLD
C.
C. Legg & Co., Baltimore
MORGAN,
3rd,
&
FX
M.
SCHMIDT, WALTER A.
Schmidt, Poole & Co., Philadelphia
SCHREDER, HAROLD X.
Cincinnati
WILLIAM
York Herald
Anderson &
CARR
Cumberland Securities Corp., Nashville
St. Louis
Blyth & Co.,
A.
PAYNE,
Richmond
Sons,
Trust Co.,
Co.,
Chicago,
New York
SCHMIDT, REGINALD
ROBINSON, ARTHUR
Corporation, Boston
Jr.,
Boston
First
City
PATTERSON, WILLIAM A.
United Air Lines,
Chicago
RICHARD*
Edwards &
MORGAN,
Laurence M. Marks & Co., New York
GEORGE
G.
First
D.*
Branch, Cabell & Co.,
K.
Corporation, New York
MARKS, LAURENCE M.
MARTIN,
RODERICK
Parker
PATTBERG,
Bear, Stearns & Co., New York
MARBURG, F. GRAINGER
Alex.
The
MOONEY, Jr., URBAN D.
Angeles
&
H.
HAROLD J.
National Bank of
SCOTT, JAMES
Corporation, Boston
PARKER, WILLIAM A.
Schoellkopf, Hutton & Pomeroy, Buffalo
Paine, Webber, Jackson & Curtis,
Riter
NATHAN K.*
Kay, Richards & Co., Pittsburgh
Bank, Minneapolis
Bank
ROBERT
Reynolds & Co., New York
SCHLUTER,
J.*
&
GEORGE J.
National Bank,
Minneapollt
ROBERTS, MALCOLM F.*
Sidlo, Simons, Roberts & Co., Denver
ROBERTSON, WALTER S.
Scott & Stringfellow, Richmond -
PARKER,
WINSTON
Northwestern National
MONRO, WALTER J.
Los
RITER,
AMORY
The Parker
York
MANNING,
New
Charles A. Tarcells & Co., Detroit
MOLANDER,
ROBERT A.
RIENZI,
PARCELLS, Jr., CHARLES A.*
Pershing,
National
Field, Richards
Business Week, New York
L.*
First
SCHLESINGER,
RICHARDS, CHARLES
PAIDAR, LEONARD J.*
Goodbody & Co., Chicago
PARKER,
Merrill Lvnch, Pierce, Fenner &
Beane,
New
St. Louis
MOFFITT, WALTER V.
Kidder, Peabody & Co., New York
Co., Cincinnati
MAGOWAN,
Cook & Co.,
MITCHELL,
Oklahoma
Buyer, New York
IRA D.*
Allison-Williams Company, Minneapolis
Pacific Northwest Company, Seattle
New York
Bond
PACE, CLARK R.*
MINOR, STANLEY N.
D.
Dominick & Dominick,
First
OWEN,
Bank, Chicago
MJHAUST,
Bank, Pittsburgh
RHOADES, PHILIP
T. H. Jones & Co., Cleveland
LEWIS
National
Newhard,
W.*
Washington
*IACKEY, DONALD
A.
Bank, Cleveland
MILLS, ANDREW S.»
McLeod, Young, Weir & Co., New York
MACKALL,
BURTON
National City
National
C. BARRON*
The
S.*
Trust Company.
REX, WILLIAM M.*
Clark, Dodge & Co., New York
OVERTON, JOSEPH A.
SAM
Finance
>•
Mellon
Co., Chicago
MEYER, RICHARD
Dow, Jones, Inc., New York
&
York
REUTER, F. BRIAN*
L.*
Vance, Sanders & Co., Boston
William Blair &
WILLIAM
Chemica] Bank
New
LYONS, KEVIN T.
Lyons & Shafto, Boston
r
New York
DANIEL
73
&
Mayer,"Cincinnati
FRANK
L.
Indianapolis Eond & Share Corporation,
Indianapolis
-
And
Other
Cities
Jr.
-
*
•
74
The Commercial and, Financial
(2398)
Continued
from
TORREY,
73
page
W.
WILLIAMSON,
S.*
ARTHUR
Pit field
C.
&
Dittmar
Montreal
Co.,
TOWBIN, BELMONT*
E.
C.
In Attendance at IBA Convention
WILLIAM
E. W. Clark
FREEHOLD,
De
Coppet & Doremus, New
York
New
Lynch, Pierce, Fenner & Beane,
York
New
SULLIVAN, JAMES J.
Blair, Rollins Ac Co.,
OTTO
SMUCKER,
RUDOLF*
SMUTNY,
First
W.
Atlanta-
Bank,
Newbold's Son
H.
Ac
Co.,
Witter
Dean
Cleveland
Beid & Co.,
GEORGE
STEARNS,
PHILIP M.*
STEARNS,
VAN
TERRELL, ALLEN M.
Girard Trust Corn Exchange Bank,.
Philadelphia
VAN
R.
Chicago
The Economist,
Estabrook & Co., Boston
Chase National Bank of
New York
Investment
THOMAS,
Bankers Association,
Lehman
Chicago
RAYMOND
STITZER,
Gairdner
TINDALL,
&
HERMANN
J.
G.
Co., Toronto
A. Saxton
Co., New York
TORO,
—
i WI
♦Denotes
Tindall
W.
Mr. and
Ac
Puerto
von
Co.,
Atlanta
W
CHARLES
1,1
Rico
ADSVVORTH,
Lehman
El
MINNESOTA
I
Paul
MONTANA
3
SOUTH DAKOTA
CLIFTON
WALLACE,
Bache
&
The
WARD,
3
TWIN CITY STOCKS
I
I
WARREN,
made.
ALLISON-WILLIAMS COMPANY
Phone:
TWX MP
163
II.*
are
CHARLES
&
Bank,
INVESTMENT
WEED,
Union
FIRST
New
NATIONAL BANK
The
and U. S. Government bonds
TELETYPE
—
MP 178
Corp.,
WEST,
&
Co.,
York
JAY
Company, Inc.
STOCK
EXCHANGE
Eaton
S.*
York
-
•
Securities
UNDERWRITERS & DISTRIBUTORS
CORPORATE & MUNICIPAL SECURITIES
It
2.3.
to
equivalent
is
true
in which
—
included
Government
though
aside for
set
&
since 1939 and. at first
does
the
not
be
in¬
seem
to
v e r.
compared
Howe
prewar-period,
is
cash
in relation to sales and also
change
disturbing
1939
in
the
if, both
1951, the amount of
and
liability
is
We then
equivalent,
Corp.,
what
is
BRAINERI)
KELTON
H. Walker &
deducted
may
actually
find
from
that the
amount .of cash
which
be
—
is
called
free
tax
a
re¬
and
from
lien,
and not only rela-
MINNEAPOLIS
ENDICOTT
1, MINN.
ST. PAUL
TELETYPE—
V
MP 120
BLDG.
position anywhere
that
as
1, MINN.
TELETYPES—
ST
P
ST P
93
117
(Corporate
Dept.)
.(Municipal Dept.)
Bros.
&
Any further increase in sales,
resulting from newly constructed
plants getting into operation over
the
few
the
will
effect
months,
accentuate
those
plant
the
of
together
Mills
the cash
their
later
1953
in
try-by-industry completion of
&
CORPORATE &
able
do
program
of
state
have
not
&
EMIL
C.
A. M. Kidder & Co.,
'
New York
"
I
primarily a
possible decline in the unit price
level
of
manufactured
goods,
which
the
in
is
turn,
What I
affected
materially
of
cost
by
labor, with the latter
flexible cost
down-side.
have in mind in speaking
not
component
very
a
the
on
prevailing
our
economy
are
things as the present ab¬
normal velocity of business, with
sales
volume
in
relation
to
net
plant value being 2V2 times what
it
in
was
(which
1939;
pretax
profits
inevitably pushed up
are
by high taxes and must include a
heavy tax
rate
burden)
running at
a
61% of net
plant value; tax rates running up
equal
to 70%
of
to
about
pretax profits and cor¬
porate tax liability equal to some
80%
of the
bonds
ury.
in
cash and government
the.
corporations' treas¬
TCo corporation can afford to
overlook the leverage, or leverage
1895
DISTRIBUTORS
MEMBERS
YORK
STOCK
YORK
CURB
STOCK
MINNEAPOLIS
D.
arise.
mind
EXCHANGE
(ASSOCIATE)
EXCHANGE
Baltimore
Co., New York
our
now
will
affairs
in
as
MUNICIPAL SECURITIES
MIDWEST
W.*
Co.,
1954
laid
out, problems of transition from
our present
economy to a differ¬
ent and not yet clearly foresee¬
NEW
Boyce, Baltimore
or
the step-bv-step and indus-
rearmament
UNDERWRITERS &
ST. PAUL
y
GREAT FALLS
WILLIAMS,
have
attention / on
financing
without
corre¬
attention on their cash
A.
BENJAMIN
Hutton
Bill,
problem
which
companies
Sometime
upon
ESTABLISHED
»
E.
next
with
Co., St. Louis
CLAUDE
Watts
strong
1939.
.
LeROY
WILLIAMS,
W.
as
in
E.*
<"■
WILHIDE,
Baker,
near
maintained
:
Piper, Jaffray & Hopwood
WHITNEY, Jr., LEWIS J.
Dempsey-Tegeler & Co., ^Los Angeles
Stein
obviously been
to' maintain a cash
inadequate
NEW
building
into
the cash flow has
New York
WIESENBERGER,, ARTHUR* '
Arthur Wiesenberger & Co., New York
Mcknight
:
flowing
H.*
WHITESIDE, THOMAS
Chace, Whiteside, West & Winslow,
Boston
what
industrial corporations' treats-
our
Co., Trenton
CHARLES B.*
Chas. B. White & Co., Houston
WILBUR,
-
cash
N.*
WHITE,
G.
S
v
rather different
a
4.4
maining net
B.
STEPHEN
Howard, Boston
&
WHITE,
'
•
corpo¬
holdings of cash and government
WHITCOMB,
MIDWEST
find
even
bonds.
First Boston Corporation.
MEMBERS
the
of
.
Whipple & Co., Chicago
WHITBECK,
Kalman &
subject
manufacturing
we
A
tax
ENOS
Wdtzel
WHIPPLE,
Bacon,
profit¬
to the
plants and facilities
assets and the cash posi¬
are
down
for
York
E.
be
up
cash position is discovered
Chicago
New
Webster
WETZEL, W.
W.
While
*
such
ties.
New
Bank,
GERALD
Stone
New
&
one-half
and
position.
do\yn in relation to current liabili¬
London
B.
CHARLES
Wertheim
equity it is orrlj* between
in 1939.
was
of
with
CHARLES M.*
Fund Distributors, Boston
WERNER,
it
in 1939;vandin re¬
was
one-third
ca¬
plant
the
from
now
adequate.
J
National
Putnam
lation to
sponding
and
cash
that
glance,
V.*
B.
Securities
GEORGE
WERLY,
sales
cash, in relation to
inventories, is less than one-^third
most 250%
ROBERT
Hanover Bank,
First
now
in 1939. On this relative
of what it
future tax payment—has risen al¬
WELLES, RUSSELL
WENDT,
or will
strictly
be
our
bonds
Securities Corporation,
York
WELDON, D.
1939;
only
compared
is
"free"
the
on
H.
WALTER
Philadelphia National Bank,
Philadelphia
Minnesota, North Dakota and South Dakota,
eye
of additional
from
term
Midland
critical
a
The current ratio since 1939 has
Lynch, Pierce, Fenner & Beane.
WEHRHEIM,
Specialists in state and municipal bonds of
of
fallen
G.*
WEEDON, SIDNEY L.*
MINNEAPOLIS
investor to
prompt the
will
rations*,
Hugh W. Long & Co., Elizabeth
OF
have
picture.
G.
BYRON
Jr.,
basis
concentrated
necessary
tion
Chicago
DEPARTMENT
annual
in
was
it
corresponding percentage
for
to current
Scott, Horner & Mason, Lynchburg
Merrill
of
a
of 14.2%
prod¬
Turning
York
New
EDWARI)
WEBSTER,
•
with
off in
of taxes
WATLING, PALMER
Watling, Lerchen & Co., Detroit
WEBB,
I
corporation.
HEMPSTEAD
Co.,
further
replacement
or
is
comparisons
with
able,
W.*
National
Nashville
Asiel
2.5%
it
that
manufactured
financing
WASSERMAN, JOHN*
ATlantic 3475
than
further,
such
Harris, Hall & Co., Chicago
MINNEAPOLIS, MINNESOTA
Charlotte
V
ROBERT
WASHBURNE,
other
or
for
pacity. f The burden of proof that
additions
or
replacements
Bank, Nashville
American
armament
lor
will
ucts
look
Geyer & Co., Incorporated, New York
First
tivelyr—less
and
Any marked falling
demand
C.
WATERFIEL.D,
;
running at
public util¬
as
already
entirely excluded
the
from
Euyer, New York
National
construction
is still
•
expansion
mentioned,
L.*
JAMES
Third
i
a
Bond
replace¬
prob¬
acute
an
excepting the
industry! which,
ity
Chicago
GEORGE*
WANDERS,
3
higher
Plant
—and
P.
Fidelity-Philadelphia Trust Company,
Philadelphia
I
®
only
unlikely' to continue much
longer at the present abnormal
level excepting in a few instances
Co., New York
H.
to 61%
is
B.
DARNALL*
WALTERS,
MUNICIPAL AND STATE BONDS
3
3
3
3
3
3
plant
New York'
Davis & Co.,
pretax
equal
financing
demands,
L.*
Brothers, Chicago
H.
for
tfye immediately foresee-
future.
aMe
the
value-...versus
become
unexpected
RICHARD
WALKER,
B.*
Co.,
the overall phys¬ ury via annual depreciation and
capacity of our manufactur-<. accelerated "depreciation is now
ing industry, will be more than almost three times what it was
twice what it was in 1939. Barring
prewar, yet even this increase in
Mercantile Trust Company, New York
NORTH DAKOTA
A:
ical
WALDMAN, GEORGE R.
3
i
EDWARD
Dickson
dle of riext year
S.*
ARTHUR
Dillon, Read & Co.,
out-
2.8<-
^L«^^high level that by the ITlid-
New York
Kidder, Peabody & Co., Chicago
I
I
i
^
Development Bank,
Hutzler,
Also
this
may
in
lem
L.*
Glore, Forgan & Co., Chicago
Development Eank,
8.
j
■'
Bjsworth,' Sullivan A: Co., Denver
1939.
ment cost
GLAHN, THEODORE A.*
VRTIS,
only
was
plant
Nor
VOYSEL, FRANK E.*
J.
de
S.,
25
page
was
^been-iand
Salomon Bros. &
E.*
net
Salvador
W'ALBERT,
3
from
1939.1
18% -in
MILLS
Pittsburgh
ROBERTO
Government
Mrs.
Ac
Co.,
of
Chicago
SAMUEL
Government
W.*
ANTHONY
Thomas
&
J.
Jr.,
JULIAN
TOM ASIC,
STOLLE, CARL
G.
vivo,
Thornton, Mohr Ac Co., Montgomery
York
STOCKWELL,
A.*
i
U.
YOUMANS, PAUL E.
profit in r1951
P.*
Varnedoe, Chisholm & CO.,
Brothers, New York
THORNTON,
D.
Equitable Securities Corporation,
New
JOSEPH
ROBERT
MIKE
VARNEDOE,
Albert Theis Ac Sons, St. Louis
3rd, ROBERT
•R.
Montreal
& Co.,
sales
in
4.5C
Chicago
Journal of Commerce, New York
THEIS, HARRY*
New York
Bacon, Stevenson & Co.,
V.
OWEN
SLYCK,
Ambassador to the
WULPERN,
relation to increased
put and
HOUTEN, RICHARD C.*
VAN
i
STEVENSON, G. C.*
STEVENSON,
tion in
Heller, Bruce & Co., San Francisco
L.
Brothers,
Lehman
CAMP,
*
Washington
York
M.
Hutzler, Chicago
HUME*
Canadian
,
each dollar of sales compared with
Chicago Sun-Times,
ROBERT
THAYER,
York, Chicago
New York
KIMBALL*
VANDERPOOL,
Byrne A: Phelps, New York
the City of
C.
First Security Company,
V,*
CHARLES
THACKARA,
EDWIN A.
STEPHENSON,
J.
Vance, Sanders & Co., Boston
Dempsey-Tegeler Ac Co., St. Louis
H.
A:
High Taxes
Coipoiate
Bank, New York
ARTHUR
VALENTINE,
F*
JEROME
TEGELER,
New York
C. Allyn Ac Co.,
National
Athur Wiesenberger & Co.,
Taylor Ac Co., Beverly Hills
WRONG,
M.
Bros.
Corporation,
M.
E.*
UNDERHILL,
L.
I,
ROBERT
Salomon
G.
W.
Continued
Hanseatic
L.
Minneapolis
C.*
Bullock, Atlanta
Chase
,/
Co., San Francisco
HOWARD
TAYLOR,
STARRING, MASON B.
New
Ac
JACK R.
Fulton,
A.
EATON
TAYLOR,
New York
Kidder, Peabody & Co.,
F.
HENRY
ULLERY,
B.
Co.,
Harden, New York
York
Calvin
Philadelphia
STAPLES,
York
New
UFFORB,
J.*
ALFRED
C.
WOOD,
A:
York
WORK,
P.*
ARTHUR
New
J.
TAYLOR, C. NEWBOLD
W.*
JAMES
National
STALKER,
JAMES
LAWRENCE
RICHARD A.
Ljnch, Pierce, Fenner & Beane,
Merrill
York
Zuckerman, Smith & Co., New
N. T. <fc S. A.,
CLAUDE
TURNER,
Day Ac Co., St. Louis
Taussig,
WOLFF,
Merrill, Turben &- Co., Cleveland
GARFIELD
TAUSSIG,
Savannah
Johnson, Lane, Space 6i Co.,
SPEAS,
FURBEN,
WOODS,
Weeden & Co., New York
C.
>1.*
Woodard-Elwoori
B.
Sa'vard, Hodgson
Eoston
Keystone Company,
JULIAN A.*
SPACE,
Louisville
EDWARD
JOSEPH
WISE,
Co.,. Buffalo
of America,
WOODARD,
Whipple A: Co.. New York
Bacon,
Boyce,
TSOLAINOS, K.
Baker, Weeks
JOHN*
SWANEY,
HARRY B.
Philadelphia
Yarnall Ac Co.,
WINTERS,
Digest, New York
York
New
Washington
New York
Salomon Bros. & Hutzler,
SNYDER,
Bank
New York
DAVID
New
S.*
Collins &
^
Thursday, December 18,1952
Wood, King A: Dawson, New York
W.
Morgan Stanley & Co., New
FRANK
Jr.,
Trubee,
Jr.,
SULLIVAN,
TRUBEE,
WALTER
♦
...
WOOD,
Antonio
WINHOR, III, JAMES D.*
Biddle, Wbelen & Co., Philadelphia
New York
Co.,
TSCHUDY, ARNOLD*
MARK*
Auchlncloss, Parker Ac Redpath,
Chicago
Sun-Times,
Chicago
W.*
McDowell, Chicago
FREDERICK
&
D.*
San
Securities Corporation,
WILSON,
RAYMOND*
Bros.
JOHN
Co.,
WARREN*
H.
New .York
P.*
Philadelphia
&
MILTON
Stein
H.
EUGENE*
Rothschild
FROST,
STUBBS, JOHN O.
Whiting, Weeks Ac Stubbs, Boston
SMITH, NORMAN*
Merrill
York
Straus, .Blosser Ac
Union Securities
<fc Co.,
Investment Dealers'
Nev.
Co.,
&
STRAUS,
E.
Corporation, New York
JOSEPH
SMITH,
Asiel
York
F.
TRIGGER,
C.
JACOB
STONE,
L.
Co., Denver
Stone, Moore
SMITH, J. RAYMOND
Weeden & Co.,
ERNEST E>
STONE,
SMITH, HOWARD C.*
Union
Unterberg & Co., New York
TOWNSEND,
ic
WILSON,
Chronicle
BILLINGS
'i
Volume 176
Number 5178
.
The Commercial and Financial Chronicle
.
.
"
.
V.
.
in reverse, inherent in
these high percentages.
Whatever a period of
some
1
(2399)
of
Continued
from first
of
page
tion
will
Shall We Have
One
are
icant
service
them," he added.
..
Jones index of "sensitive"; spot
Senator Angel Maria Cusano of prices that skyrocketed by about
Uruguay said his country .also 56%, from 144 to 225, in the first
signif-
the
protec-
our
toward
private
4
"irt
without
Respectfully submittedf
cnAiit«irtr
maneuvers
&
J. Facio of Costa
Francisco
the
Henry J. Blackford
-
A.
M.
Law
&
'i
Lawrenee
Harold H.
Jr.
A.
Joshua
City
Harriman Ripley &
Co.,
Glassmeyer
Blyth & Co., Inc., New
York City
r-
White,
New
Weld &
City
Co.
MacArthur
McDonald-Moore
&
>
S. Newhard
Carl M.
from
is
.
United
City
particular
on
but
bars
the
parity
as
any
effort
principle
unworkable
unrealistic."
of
sorbed
list,
started
in
supposed
the
face
of
to
the
be
its
while
on
27
others
little
will be spent from here
on, and the remaining 48 "pro¬
grams" are to undergo a renewed
Europe, purchases for stock¬
have been almost stopped
not
Munitions
accelerate
money
piling
are
will
scrutiny. (But $1 billion worth of
re¬
Continued
dollar-
on
page
76
un¬
post-
should
Caldwell Phillips Co.
BANK BUILDING
FIRST NATIONAL
SAINT PAUL 1,
MINN.
Bell
System
Teletype ST P
139
(excepting fibers). And, of
months of dete-
these 20
be
explained
1951,
began
seemed
in
demand
Co.
widely
City
in
February,
have
to
its
spent
fall. With armaments
gear,
could
resurgence
a
be,
expected,
and
has
of
been,
especially
also
by public authorities
mental
Co.,
-
From
is
shortages to surpluses
the
actually
or
modities
ception
being
with
of
"breaks"
of
the
inter-
national price level have occurred
Chicago
since;
but
the
irrelevant
instead of recovering,
ex¬
nickel
metals,
few
a
•
Mutual Funds
Shares
one
SHAUGHNESSY & COMPANY,
INC.
First National Bank Building
ST. PAUL 1,
MINNESOTA
in
prices
special
aluminum
and
it
steady,
some
is due
Steel,
petroleum
as
It
picture.
the most important
to
not in over-supply
are
but their markets may be
yet;
by next spring
glutted
Sugar
is
supported
before,
or
the
on
open
market
by Cuba keeping its sur-
piuses
under
profits
Tin
lock.
temporarily by the nationalization
duction,
major
Work
Corporate and Municipal Securities
—
applies
.potentially to all com¬
global
0f
no
of
relation¬
supply-demand
misguided accordingly. Indeed,
&
reaction
a
Underwriters and Distributors
ships.
whose economic and financial policies were
Ward
as
to
the preceding excesses of
speculation, but not their softness
throughout the current year. This
continued weakness is indicative
Of profound changes in the funda-
Prices
Salomon Bros. & Hutzler
-
entirely
occurs,
quantitative terms.1 If
Pattern
that
getting
Rothschild &
M.
surpluses; the ampleness of
supplies in turn dampens the in¬
terest in stockpiling.
and
the
of
it
physical volume that has been ab-
hold
The
force by last
Angeles
Robert
willing to nego¬
scale
world
prices
Richards
Hill
Los
cre¬
ate
In
that
"selective" purchases, meaning the
29 products still on the critical
ar¬
the
reasons.
Eugene Treuhold
Murray
to
promise
Board
their
were
commodity boom
K°rearl
the
that
The sharp setback of commodity
Sanders, Jr.
Newsom, Dallas
York
of materials helps
reserves
leaving little
by devaluations,
something
predictable
could
im-
the above
hastened to add:
agreements
a
and
Sanders &
F.
devel-
Royce
Jesse A.
New
less
which
is
States
introduce
to
on
Los Angeles
L.
of
understood
commodities
2nd
William R. Staats & Co.,
,
it
.
Fulton, Reid & Co., Cleveland
'"
to
add
already,
consolation to the outer world by
the
situation is that the reluctance of
to
appropriation, had been spent.'
the rest,
over
$1 billion is
cracked,"
that
taken,
tiate
Frank B. Reid
Donald
Unless
proposed
materials.*
".
Loeb, Rhoades & Co.,
York
New
prices
staple
boosted
course,
"Times,"
Ames, Emerich & Co., Inc.,
Chicago
Parish,
Of
committed
before
stood
it
stockpiling policies, and other
countries
price
interests
the
report is
Donald E. Nichols
Henry
4
the
tifices.
all those countries
expect
further
declining world"
market prices unless we step in in
a
big
way.
The
New
York
St. Louis.
•<.
the
and
plication:
Co.,
Newhard, Cook & Co.,
*
already
re¬
Cesar
More important is a second
Detroit
-
where
Korea—when
shift.
Harry A. McDonald, Jr.
•
States
of their crude
Curtis, Boston
,
above
(American
modest 30 points or
a
riorating prices coincided with the
most voluminous arms build-up
request that we subsidizedEurope, in peacetime history, a process
Asia, Africa and Latin America that should have sufficed to check
by way of supporting—stabilizing, the unrelenting downward trend
as they like to
call it—the prices of staples. Their break in 1951
Paine, Webber, Jackson &
Chapin
side,
mid-year Stockpile Report an¬
that
through June 30,
1952, $2,566 billion, one-half of
February, 1951, to keep
buying tin and natural rubber at
fantastic prices sparked the com¬
modity slump.) The irony of the
governments
from
this
nounced
in
the
On
significance of--these-complaints is, in the first place, the
Philadelphia
*
it lingers
again. Lately,
175,
started
soon
stockpiling.
fusal
British
the
slowing down,
virtual cessation, of of¬
ficial
war-reserves.
the
foodstuffs
some
The
Jenks, Kirkland & Grubbs,
W.
Actually,
sold
Europe must be largely offset by
a
Samuel N. Kirkland
-r.
around
oped countries before making such
York
Robert
but
year,
skidding
so
by Sept. 19, 1951.
about 5% to the end
rose
rearmament, the
count
E. Jansen Hunt
n
shortage.
is the
accumulations in the countries of
Dr. Bunge said. He added that he origin. The decline this year, as
did
not
wish
to
appear
to
be against the^ previous, in consumer
standing in the wavjaMechnblog-v;demand was one reason for falling
ical advance, but ne thought the crude
material
prices
without,
United States should take into ac- however,
greatly affecting
the
Incorporated, Chicago
cr'
Korea, fell precipitously
last
of
by producers because
up
stitutes
Edward C. George
Edward
in
broke
not been substantially liquidated
in this country; their reduction in
run
was
of United
New York City,
Pf
loose
U«Ab/\
hell
after
United States shifted to wool sub^
A. Davis
"
L
months
prices of primary commoditiO&x;.-" soon
wlPed ou^- This is reDr. Bunge referred to the wool
markable for more than one
situation. "When the price of wool reason.
Visible inventories have
Reynolds & Co.,
"J
Argentina
of
industrialized
the
"U «ll
^
eight
take action to maintain the world
Cook
York
the debate Dr.
in
Bunge
that
Spencer Trask & Co.,
New
protect the pro¬
in the poorer countries.
Earlier
Eastman, Dillon & Co.,
New York City
in rich countries but
to
floors
ducer
Bogert,
efforts to control the
consumer
price
Company,
Spartanburg, S. C.
„H.
Rica,
price
of
coffee
in the United
States, said that what was needed
was
not price ceilings to defend
San
Co.,
prices,
of disquieting
Then, it
Gonzalo
Eaton Taylor, Chairman
Witter
nnnnc?
to less than 183
disturbed by
Dean
liter
fluctuations, in the markets of the
COMMITTEE
'
rv+
world."
SECURITIES
INDUSTRIAL
a
needed "the security of just
enterprise system.
!
t
,
goods is easing up, the underde- prices kept slipping, notwithveloped countries are finding it standing short-lived interruptions
increasingly difficult to pay for of the downward trend. The Dow-
by themselves, their employees and the investing public
but they will also render a
Prices?
.
.
thing
tion and soundness of
mining
have
reason
if not the
Global Parity
placing
a strong liquid posionly do the right
not
and
their
will play an unusually
important role. Those foresighted
themselves in
plantation
Stockpiling
resources
which
farm,
production.
transition
may bring next year or the year
after, working capital and cash
corporations
75
.
.
Bolivian
mines. Their out-
put, about 20%
of the world pro-
the
is
expected
yet there is
dry
to
fear of tin short-
no
capacity of.
other producers. Major farm crop
prices are bolstered by devious
given the
age,
controls
have
Harold E. Wood & Company
up;
Investment Securities
excess
subsidies.
and
recovered
lately
hides
If
to
a
FIRST NATIONAL BANK
SAINT PAUL,
BUILDING
MINNESOTA
mod¬
erate
extent, that is so because
they had plunged out of propor¬
tion to the general trend. The re¬
advance
cent
SMITH, POLIAN & COMPANY
Members
Midwest Stock Exchange
Underwriters
and
New York is
lead
by
0.50c in
if
only becausfe of the ample zinc
supply on hand and in view of the
weakness of the newly opened free
lead
Distributors
of
gf. doubtful duration
in
market
London;
Chile's
INVESTMENT
DEPARTMENT
attempt to rig the copper market
(with
U. S.
support)
is bound,to
fail since the strike in the North¬
A retail
organization specializing
ern
Rhodesian
What
in
that
utility stocks.
stands
OMAHA
Bank Building
2, NEBRASKA
the
—
OM 180
Telephone
—
JA 5065
THE FIRST NATIONAL
ended.
are
the
consumers
facts:
BANK OF SAINT PAUL
refrain
purchases,
hand-to-mouth fash¬
ion; that professional speculators
are
conspicuous by their reluc¬
tance to commit themselves; and
from
"speculative"
a
u. S. GOVERNMENT,
AND
MUNICIPAL BONDS
anxious
are
to
unload.
TELETYPES
Buyers' markets predominate, and
more
of thd same js expected in
nearly
*
1 Aj
may
gory.
STATE
producers, instead of holding
back,Teletype
out
industrial
buying in
424 Omaha National
mines
every
it
soon
"uncontrolled" area
c.ppears
be
in
presently,
the
even
over-supplied
nickel
cate¬
ST P 159
MUNICIPAL DEPARTMENT^
rPkST P 132 TRADING
DEPARTW "'-
3*
The Commercial and Financial Chronicle
<2400)
Continued from page
be
The worst would
75
able
20%
year
sales,
Shall We Have
In
and thereafter, in automobile
dwelling construction, etc.
there is little pros¬
pect on the immediate consumer
goods horizon that would promise
an
outlet for a greatly increased
Prices?
Global Parity
appreci¬
next
an
decline,
30%
to
case,
any
output of crude materials. But the
complicated machine tools
be
"chickens"
British bulk-buying.
the
stock¬
piling agencies—which are most
anxious to buy when prices are
liigh. And the subsiding fear of
budgeted
markets
•war
next
relax,
affects
so
year.)
As
the
do
authorities:
the
who
first
more
the
sion"
the
invested
U. S. tin
is
stockpiles
conspicuous,
as
in the
holdings, to
even
case
of
nothing
say
hatched
by problem is just that: what will
happen in view of the huge ex¬
pansion of productive capacities?
in
"reces¬
demand. Mild
factor is the
second
consumer
the
not
or
armament
is
and Underwriters
and
as
Volta Redonda in Brazil
Huachipato
mechanization
in
Chile.
and
the
Farm
growing
of fertilizers do their share—
use
theory is il¬ in that respect as in many others
by the Report's worries our own Marshall plans and Point
about the alleged exhaustion of Four programs having provided
the lubricant. That synthetics are
our oil resources, while the Petro¬
leum Institute has just come out cutting deep into the markets of
with the statement that for every such significant materials as
barrel of petroleum they take out fibers, hides, detergents, natural
of the ground,
two barrels are rubber, etc., and promise more of
credited
Malthusian
lustrated
exploration,
mechanization
up,
and
the
moderate
than
more
upturn
seasonal
would
be
that
—
the
other
Technological
be
the recovery is less extensive and
pro¬
less intensive than its counterpart
being stretched.
material markets register
fact with
The
Prescgtt.Wrinht.SniderCq.
is,
The
this
dismay.
hard
of
core
however,
Kanaa#
City
and
the
problem
on
COMMON
INVESTMENT
Wartime
STOCKS
1949-50
of
stocks
the
commodity prices were
heading toward a show¬
visibly
FUNDS
down.
set
Instead, the
in
and
boom
Korean
brought the dilation
to an unprecedented
process
climax.
The
world's
with
"management"
commodity
the
of
economy,
resultant
impending
crisis, would fill three volumes—
UNDERWRITERS anil DISTRIBUTORS
the
size
Paley
and
may
mining
was
ago.
ment take time. But
begin¬
we are
ning to reap the fruits of the poli¬
cies that received their final
mentum two years ago.
is
far
a
more
mo¬
The result
rapid rise in the out¬
in
facilities,
nate
crease
in armament
major in¬
expenditures
provide employment
can
20-million-ton
for the
additional
steel
and
the
in
on
Very wisely/
of
rest
either
acts
the
in
Western
the
same
down its
restrictions
of
the
Report,
much-advertised
which
stated
another
of
European capacity, with both Bri¬
tain
even
Marshall
omy-promises
heights of basic steel production,
to
keep
living standards. It would
plus the proportionately growing
new
world
manner,
is forced by poverty and gov¬
or
ernmental
change the picture—at
Germany reaching
face
credit
prefers to strengthen its savings.
take
and
the
indiscrimi¬
have reached
by the end of 1953,
year
American
average
"consumption."
The
a
a
unrestrained
family is not bent
the effective
(paying) demand for
season
same
an¬
far,
so
In spite of his unparalleled
virtually
it
Nothing short of
the
In fact,
spree.
liquid holdings,
of
put of major commodities than in
them.
public is ready for
buying
capacity which this country will
of the outgoing Ad¬
story
ministration's
the
progress
rural
and
postwar in¬
flations
created
such
a
mighty
impetus toward expansion that by
BONOS
CORPORATION
buffer
futile
1930's.
in
rate, exploration and develop¬
any
monopolistic international cartels
Ave.
slower
duction than in manufacturing; at
the supply side:
the tremendous expansion of pro¬
ductive capacities. It began with
BANKERS
INVESTMENT
world-wide
a
opening
American
Overgrown Capacities
MUTUAL
primitive rehash of the dis¬
places
extension along virtually all basic
raw
and
This
com¬
been and is
Distributors
PREFERRED
not
large-scale modern mills
ing into operation at such remote
commodity lines have taken place.
—it is not
Dealers
and
which,
doing,
similarly expanding
resources
approaching its peak
likely to reach it next
year—this much is certain: it has
program
Since 1385
MUNICIPAL
against
whatever else they may be
are
sure,
Whether
Baltimore
harder
and
ment
Europe.
916
expanding at compound rates
is thus pressing harder and
Nor will the problem be eased
by the military demand. Govern¬
the same, needs no elaboration.
spending for war prepara¬ being developed.
as it may be, the fact is that the
tions is not likely to be reduced
Mineral oils and natural gas are
Presently, some commodities
postwar pent-up demand has been
more
than fractionally, but it is
show signs of fresh buoyancy, as
characteristic of what is going on.
pretty much satisfied along major
still less likely to rise appreciably
most of them did at this time last
lines of durables, and a fresh in¬
The glut of their markets hinges
—even
if the Korean adventure
year. But if cotton and wool have
flationary outburst does not seem
more
on
the
establishment
of
should
be stepped up
(and the
lately gained price-wise, it is be¬
to be in the cards. Short of that,
Republicans are anxious not to pipelines than on anything else,
the best the markets can antici¬
cause
of the seasonal upsurge of
step too hard). Arms aid to Chiang
and the pipelines are coming in
pate is a sort of stability of sales
demand
for
their
and to Japan may come largely
end-products.
volumes, possibly bolstered by the
out of the same $6.9 billion total fast. Under American leadership, Crop variations are another factor.
accelerated growth of population.
as
this year, cutting the aid to aid, inducement and actural pres¬ But there is no indication that
A
The route of official inventories
outside
i
The Demand Side
82.5
billion lire in stockpiles (45% in
wheat), lately have begun to
liquidate some of them.
Italians,
the
of
to
are
is
and
Thursday, December 18,1952
...
Plan
foregoing all Republican
(which,
econ¬
if
kept
fractionally, must add to the
"deflationary" pressure).
ver¬
batim:
Corporation and Municipal
-
'*
"The
report
of
the President's
Materials Policy Commission
Securities
has
its
as
ination
terials
central
the
of
to
task
adequacy
meet
the
after
area
soaring
Steffi Brottefs
MEMBERS
MIDWEST
STOCK
Co.
EXCHANGE
1909 BALTIMORE AVE., KANSAS CUT B, MO.
Teletype KC 273-4
Grand 64G0
UNDERWRITERS
Established
the
ahead. In
A. G. EDWARDS & SONS
—MEMBERS—
New York Stock
Exchange
shrinking re¬
consequent pressure
Midwest Stock
Exchange
we
the
arrest
an
standard
Specializing in
decline
or
of
living
cherish and hope to share."
Missouri and Illinois Issues
we
(Italics
COMPLETE
ours.)
Report appeared last
May, signed by four "big" busi¬
ness
Direct Private Wire to
Chicago Office
leaders, the floor under
material
for
over
that
a
year.
it
Yet,
argued
FACILITIES
409 NO. EIGHTH ST., ST. LOUIS 1, MO.
raw
prices had been sinking
TRADING
Direct Private Wire to
Carl M. Loeb, Rhoades & Co., New York
When the
OMAHA, NEB.—CHICAGO, ILL
New York Curb Exchange
Chicago Board of Trade
Municipal and Corporate Securities
shortages, the strong
possibility of
DEALERS
*
18S7
ma¬
of
rising real costs, the risk
the
DISTRIBUTORS
.
encounter
area
wartime
in
.
demands,
sources,
toward
of
of
needs
free world in the years
.
exam¬
an
Telephone Central 4744
Clayton, Mo.
Bell
Houston, Texas
Teletype—SL 4715
New York, N. Y.
Springfield, III..
heading for scarcities
and high prices and that largewe
scale
are
stockpiling
the
is
answer.
Which goes to show what happens
Retail Distributors
of
Corporate Securities
to business leaders when they get
themselves
involved
bureaucrats who, of
a
couple of chips
ders.
tions
They
the
for
inter¬
national arrangements about
modities
to
fashion
Missouri
Kansas
new
com¬
reckoning
reckless
about
Members
NEW
NEW
YORK
YORK
MIDWEST
STOCK
EXCHANGE
Private
CURB
ASSOCIATE
EXCHANGE
our
branch office:
14 Wall St., New York
of
the
our
by
resources.
by
CHICAGO
—
ST. LOUIS
Company System
Its
thesis
is
in this sentence:.
saying
192-3
material
that
the
GEORGE K. BAUM & COMPANY
1016 Baltimore
Avenue, Kansas City 6, Mo»
Municipal Department
perhaps be successfully oversim¬
plified
To:
fantastic
raw
"The nature of the problem can
-
-
ESTABLISHED
policy
threatening exhaustion
summed up
YORK
Darnel F. Rice &
bringing
consumption and by dire forecasts
about
Kansas City 6, Missoourii
to
the
Wires
expansion. The Report
figures about future
Direct private wires to
correspondents in principal
cities and
more
markets.
of
follow
must
western
cloaks
day
expansion—by
justified this
STOCK
111 West lOtSi Sforeeft
that
the
maintained
Kansas City & South¬
to the
General Market
for foreign aid, above all: for the
of
markets
all active securities local
in
Southwestern and
h A T S H A W/
postponement
Position
regula¬
more
restrictions,
CORPORATES
carry
their shoul¬
on
ask for
and
with
course,
con¬
sumption of almost all materials
Bell
Teletype
—
KC 385
Phone—Harrison 2090
to
the price
Trading Department
Bell Teletype
—
KC 472-3
Phone—Harrison 6432-4
IVolume 176
_
Number 5178
4
.
The Commercial and Financial Chronicle
.
(2401)
Continued from first
page
that arise from
tary
debt
policy
41st Annual Convention
issue
on
of
the
page
17.)
adjournment
of
in
government
its
pursue
statutory
the
field
of
and credit.
It is encourag¬
ing to note that the 1952 Republi¬
money
platform
can
Federal Debt Structure
ihe
to
"Chronicle," starting responsibilities
Boles Calls for Sounder
After
branch
which
the
of
also
included
a
supported
plank
the
pendence of the Federal
inde¬
Reserve
Convention, Ewing T. Boles, newly System.
elected
President, on Dec. 7
"The Association commends the
issued the following statement re¬ Federal
Reserve System for the
lating to Government fiscal policy objective manner in which it has
and debt
refunding:
carried out its responsibilities dur¬
"I
would
emphasize
ent
points
mental
like
to
reiterate
of the
some
in
made
Securities
port. (Full text
the
"At this Convention
the
Investment
in
re¬
of orthodox
been
The resto¬
credit
policies
significantly
successful
monetization of the
arresting
debt
31.—Ed.)
page
ration
has
Govern¬
Committee
on
ing the past 20 months.
and
sali¬
more
and
further
dangerous
ex¬
a
"It
"It must be
tion adopted a resolution
strongly
that
recognized, however,
consistently
to
1951-52
1950-51
1949-50
Joseph T. Johnson
Laurence M. Marks
Albert T. Armitage
to
coun¬
has
been
the
take into account the need for
obtaining
properly balanced debt
The results of this pol¬
all too obvious.
At the
a
structure.
icy
are
end
of
this
year
of the
have
$57
billion,
marketable
debt
or
will
maturity of less than one
$38 billion, or 25% more
a
year,
will
mature within five years—a
total of almost 65% of the market¬
able
debt
maturing within five
In addition to these actual
years.
maturities, approximately $65 bil¬
lion
of
non-marketable
debt
is
payable
on demand.
The imbal¬
in the debt is further pointed
BROKERS
by the fact that there will be
marketable
bonds
the
this
no
at
monetary
fiscal
the
that the debt management policies
of the postwar period have failed
up
Associa¬
and
greatly
of
view of the Governmental Securi¬
ties Committee of this Association
pansion of credit.
ago
year
contribute
try.
ance
Bankers
IBA PAST PRESIDENTS
coordinated
management
can
economic health
39%
IBA
properly
sound Federal Reserve pol¬
a
icy,
the
text, also most of the Com¬ Executive
mittee Reports are given in this and free
If
menace.
with
full
in attacking the inflation
weapons
Association oi America Holds
mone¬
Debt management and
policies
are
also
major
causes.
fiscal
The Investment Jankers
other than
TO
end
policy alone can¬
supporting the maintenance of an
ultimate
independent Federal Reserve Sys¬ not be wholly effective in dealing
20 years.
tem, free of influence from the with the problems of inflation
of
outstanding
with
in
g
Established
DEALERS
an
excess
of
year
maturity
HmnmNM—l
Business
and
1874
£
<
m
•
"The Investment Bankers Asso¬
ciation, through its Governmental
Securities Committee,
repeatedly
st.
Our
louis
Local Listed And Unlisted
And
"//
We
Invites
there
is
Your
Market
a
has recommended to the
markets
Trading Department Is Active
In
that
toward
All
can
find
it"
has
ESTABLISHED
1871
MEMBERS
-
Stock
Exchange
Chicago Board of Trade
300 North
Central
4th
Midwest
St.
-
Direct
Joscphthal &
Private
Co., New
Stock
Exchange
New York Curb Exchange (Assoc.)
7600
Wire Connections
with
Bennett
•'*
■
&
a
I. M. Simon
distinct
disadvantages.
Co., Chicago
&
Co
MEMBERS
proper
New
York
Stock Exchange
Midwest Stock Exchange
Chicago Board of Trade
a
attendant cost and usual
New
First,
=
Central
3350
St.
York
Curb
(Associate)
ST. LOUIS 2, MO.
Louis*
Stock
Oldest
attrition;
SL 288
Exchange House
second, during
a period of danger¬
international tensions, it seri¬
ous
of
Saint Louis 2, Mo.
Bell Teletype SL 593
York and James E.
of
ously impairs Treasury flexibility
which easily could be aggravated
by the increasingly large amounts
■■
.
York
funding
it involves the necessity of almost
continuous rolling over with the
Specialize In Orders For Banks And Dealers
•"
New
~
the
Treasury
looking
initiated
of the floating debt.
preponderant overweight¬
ing of the debt in short maturities
Such
we
be
proportion
Securities
Inquiries.
EDWARD D. JONES & CO.
.
steps
-
actual
maturities of Series E,
bonds; and, finally, the
Treasury to enter the
market frequently for
refundings
has materially restricted the Fed¬
eral Reserve System in
discharg¬
ing its responsibilities in the area
F
and
'•'■■'V
G
need for the
of credit control.
"So
long
' v1,
.
.
.
INSTITUTIONAL and CORPORATION
★
deemable
468 Olive
Long
Distance
STOCK
LOUIS
a
unquestionably
problem, but I be¬
The
Investment
Association
pi
Bank¬
BOND
believes that any
requirements of the
Treasury should be raised to the
New York
fullest extent possible outside the
Street, St. Louis 2, Mo.
Teletype SL
158
DEPARTMENT
cash
new
EXCHANGE
71
ST.
debt
during the coming year to¬
achieving a sounder debt
ward
★
H. WlBBING & Co.
MIDWEST
TRUST COMPANY
lieve that progress can and will be
ers
MEMBERS
financing,
side
the
banking system.
The
present unwieldy floating and re¬
structure.
O.
least
prudent to place as
much of the debt as possible out¬
made
★
at
seem
represents
BONDS and STOCKS
face
we
and the need for deficit
it would
°f
as
danger of further inflation
some
UNDERWRITERS and DISTRIBUTORS
Correspondent
14 Wall Street
banking system,
through the sale
and preferably
of longer term,
fully marketable issues.
"The Investment Bankers Asso¬
ciation-
is
with the
ment of a
program
anxious
the needs of the
Co.
&
cooperate
long range management
calculated to best serve
vestor and
Newhard, Cook
to
Treasury in the develop¬
Treasury, the in¬
the entire economy.
It
is desirous of
making available to
Treasury its facilities to aid in,
the
SIXTY-TWO YEARS
the
distribution and placement of
securities designed for these pur¬
particularly in the
distributing securities to
poses,
Underwriters and
!ft
ff
private
INVESTMENT
Jjs
New York Stock
Membership and
Reports
Exchange
*
OF
of
investors."
Members
Distributors
area
Listed and
New York Curb
Unlisted Securities
ported
Midwest Slock
Exchange
BANKING
The Membership Committee re¬
(Associate)
Municipal Bonds
Finance
of
to the
Nov.
had
767
Convention that
as
30,
1952, the Association
members, classified as
follows:
Class A
67
Class
New
Wall
AND
St.
York, N. Y.
OLIVE
-
SAINT
1st
Nat'I
Bank
123
Class
LOUIS
C
D___>
254
Class
FOURTH
67
Class
61
B
E
256
Stifel, Nicolaus & Company
INCORPORATED
Bldg.
Alton, Illinois
Total
In
addition
767
there
Continued
were
on
ST. LOUIS
1,026
page
78
•
CHICAGO
78
Financial Chronicle
The Commercial and
(2402)
...
Thursday, December 18, 1952
i
Continued,
jrom
with
The ISA oi America Holds
has
41st Annual Convention
registered branch offices of
bers.
755
These
totals
members
with
compare
957
and
branch offices
mem¬
registered
1951.
Nov. 30,
on
$217,443 and expenses
convention
of
covered
(exclusive
to
expenses
be
convention receipts
$182,905, leav¬
by
operating profit of $34,533.
the Committee noted,
Charles
R.
Perrigo, of Horn- expenses for the remainder of the
blower & Weeks, Chicago, Chair¬ year will exceed income by a con¬
man
of IBA Finance Committee, siderable amount, thus reducing
the operating profit to the esti¬
presented the
mated $17,673 indicated above.
balance sheet
of
the
31, along
the
in¬
come
and
The
ex¬
state¬
the
first
an
hibit
Dec.
of
this
on
Charles R.
secu¬
period.
the
months
Committee's
full
figures
for
the
income
218 and expenses of
an
year
first
of
es¬
based
10
$232,-
$214,545, thus
operating profit
of
$17,673. From the figures, income
for
the
first
interest:
Heritage
Foundation
Campaign;
for
Freedom
support
Chamber
10
months
totaled
Parker, Kay, Richards
Company, Pittsburgh.
&
of
tional Thrift Committee, Inc.;
the year
and
Hugh
Conference: Laurence M.
Concerning the proposed Gradu¬
M.
Laurence
ate School of Investment
School
Banking,
of
Banking
by the American
Marks
&
Education: Norman
main¬
rill
Bankers
Committee
the
with
for
a
New
the
rec¬
Wharton
achievement
School.
The
Federal
registrant
session to be held during the week
pany
be
would
work
in
the
interim
periods.
&
R.
Perrigo,
Com¬
Trust
Chairmen's:
G.
annual
registration
including
program,
&
meals
would
housing
Securities:
Merrill,
&
Co.,
This
&
Companies:
mittee
THE FIRST CLEVELAND CORPORATION
MIDWEST STOCK
EXCHANGE
NATIONAL CITY E. 6th BLDG.
CLEVELAND
Membership:
1952 refresher course.
Graduate
School,
integrated
course
prospective
.
Robert
Sanders
&
banking
&
Francis
Established
Northwest
Foster, Foster & Marf
Rocky
Alexander.
Mountain
W.
Forsyth,
Calviri
Weld
,
|
Securities:
Southeastern
&
Jchn
C.
Hagan,
Jr.,
\
Mason-
The
1953.
Securities: War¬
Securities:
Bergmann,
governors
42nd
Service
H.
R.
Charles
L.
W.v Pressprich
Southern
H.
Wilson
Arnold
Southwestern
Harry
Research and Statistics: W. Yost
Fulton, Fulton, Reid & Co., Cleve¬
&
Beecroft,
Beecroft,
CLEV
29 to
Dec.
land.
dates set
4.
State
laney,
GOVERNORS
GROUP
respective
their
by
tion
pany,
following have been elected
as
governors
for
Groups
Legislation: Paul L. Mul-
Mullaney,
Wells
&
Com¬
John D.
Williamson, Dittmar
Company, San Antonio.
Chicago.
Stock
Exchange
James
F.
ham &
to
of the Associa¬
three-year
Building
ELAND,
Jr.,
Western
Relations:
Co., New York.
Burns,
Charles N.
Harris, Up&
Pennsylvania
Fisher, Singer, Deane
Scribner.
terms begin¬
California
William S. Hughes,
OHIO
&
Wegenseller
Durst, Inc., Los Angeles.
Canadian
Arthur S. Torrey,
&
W. C. Pitfield
Company, Limited, Montreal.
Central States
Robert
ster
G. Mead,
Securities
Stone & Web¬
Corporation,
Chi¬
cago.
Charles
& Co.,
T. H. Jones
&
Company
INVESTMENT SECURITIES
S.
Originators, Underwriters, Distributors of
Vrtis, Glore, Forgan
Chicago.
CORPORATE AND MUNICIPAL
Mississippi1 Valley
Garfield
J.
Taussig,
Taussig,
SECURITIES
Day & Company, Inc., St. Louis.
1170 Union Commerce
Building
Cleveland 14, Ohio
Cole
Company, Topeka.
ning at the close of the 1952 Con¬
Commerce
&
&
Co., New York.
annual
Arnold,
Crane, New Orleans.
vention:
Union
^
Seasongood
Bullock, Denver.
White,
Kernan,
Railroad
the
return to the Hollywood
Nov.
serve
SECURITIES
of
Hotel for the
The
INVESTMENT
,
Texas
are
1903
Members Midwest Stock Exchange
regular
Convention,
board
convention in
YDEN, MILLER & CO.
,
shall, Seattle.
Crowell, Crowell, Weedon
Co., Los Angeles.
ren
Convention
the
of
Association's
IIA
■
t.
Hagan, Inc., Richmond.
At the conclusion of the
Beach
Harter,
Co., New York.
&
to
L.
Co., Philadelphia.
Public
Next
voted
Robert
Reis,
Pacific
Albert O.
Oil and Natural Gas
his firm."
sessions
J.
Valley
Mayer, Cincinnati.
Dougherty. A. Webster Dougherty
Teletype
Bell System CV 443 & 444
&
■-
Ohio
Municipal Securities: A. Webster
an
executive. It would prove of last¬
to
Telephone
PRospect 1-1571
Turben
F.
Com¬
ing benefit to the individual and
14
Merrill,
Hay,
Co.,
.
of study for the
investment
*
Ohio
Sutro & Co., San Francisco.
provide
would
noted,
the
.
i
Dodge
Clark,
r.
John
slightly higher than the $165 fee
for the
York
Rex,
Northern
In¬
Claude
Turben
Osgood,
Vance,
Company, Boston.
only
M.
Co., New York.
Thomas
Investment
and
be
;
Co., Cleveland.
L.
hotel
SECURITIES
Curtis, Boston.
William
M.
Andrew
Becker
the
fee
?
Webber,
-
Industrial
Turben,
i
' '
Paine,
Pratt,
Jackson &
Cleveland.
MUNICIPAL and CORPORATION
England
Weeks, Chicago.
Guaranty
A.
,-j
■
New
& Co.,
corporated, Chicago.
The
for
Charles
Valley
Guy Redman, A. G. Edwardst
Sons, St. Louis.
; j
M.
James
of New York, New York.
Group
by the solution of selected prob¬
lems
Craft,
Baird,
supple¬
required reading and
by
Mississippi
W.
Governmental Securities: Robert
beginning March 29, 1953. Class¬
mented
Underwriters and Dealers
each
week
one
Wittenberg, Blyth &
New
H.
for
Minnesota
Albert
Finance:
Blyth &Co".,
Co., Inc., Minneapolis.
Taxation:
Hornblower &
Allen,
Wilbur W.
&c
Cincinnati.
Spring for three years—the first
Seminar
Fenner
Hutton, Jr., W. E. Hutton
the
project, the film, "Op¬
Philadelphia.
Inc., Detroit.
Legislation: William K.
Federal
of¬
would attend
program
year"
room
MEMBER
C.
Alonzo
Smith, Mer¬
Pierce,
Barclay, Jr., Stein Bros. & Boyce,
Philadelphia.
Wharton
leading to
program
of
Lynch,
Beane, New York.
jointly by the IBA and the
under this
Smith
Stroud & Com¬
Michigan
Marks,
Co.,
York.
that "we complete ar¬
certificate
fered
P.
Pennsylvania
Incorporated,
reciprocate.
School
Norman
Chicago.
Robert G. Rowe,
pany,
«
York.
turn
a
and
Pit-
Ostrander, William Blair
Eastern
Committee. These organizations in
C.
(
Lee H.
for
& Company,
Securities:
W.
Torrey,
Central States
Com¬
named
Knowlton, Kuhn, Loeb & Co., New
in various cat¬
the major
O.
Co., Ltd., Montreal.
spon¬
egories of in¬
ed¬
National
were
America
in
Canadian
field
1952-53:
Aviation
rangements
1952 "has been
ucation,
COMMITTEE
following
Invest
&
Co., San Francisco.
CHAIRMEN
Chairmen
the
year
Witter
Dean
Taylor,
Arthur
NATIONAL
The
by
Eaton
Nathan K.
States
Week
Chairmen for the
Group
1952-53:
Pennsylvania
mittee
In vest-in-America
as
Company, Inc., Denver.
National
ommended
that
vestment
Mountain
California
with the
Commerce;
elect^u
The following have been
by their respective groups to serve
Thrift Week sponsored by the Na¬
of
Bruce
the
by
United
the
of
Conrad,
Youmans, Bosworth, Sul¬
Western
Production
sponsored
Electric Utility Industry
Association,
Pierce, Fenner
Beane, New
York City,
busy
livan &
CHAIRMEN
GROUP
Northwest
Zilka,
Rocky
Paul E.
Register-
and-Vote
J
Co., Portland.
American
tained
Merrill Lynch,
a
Cz
variety of projects in
a
public
uate
Nor¬
stated
Henry
patterned after the Rutgers Grad¬
&
the
indicate
providing
Perrigo
v
The
for
Report to the
on
Smith
man
during
timates
Annual
chair¬
is
man
on
purchases and
rities
the
with the
de¬
In
4.
whose
showing
sales
merged
tht?
report, the
Com mittee,
ex¬
the details
its
Convention
of
1952, along
with
zations in
Education Committee,
livered
10
months
been
has
Public
ment covering
Education Committee,
IBA
which
Report
A.,"
S.
degrte
cooperated with other organi¬
sored
Committee
Education
of
as
with
pense
an
However,
Asso¬
ciation
Oct.
Finances
on
U.
high
a
after Oct. 31) were
ing
Report
Pacific
is meeting
of success,
though it has not ytc attained its
maximum possible distribution.
The Committee reported that it
portunity,
77
page
New England
Forrester A. Clark, H. C. WainCLEVELAND
wright & Co.,. Boston.
F.
Blaine,
Sachs & Co., New York.
Hugh
Bullock,
New York.
Goldman,
f;
t
-
Calvin
...
Detroit
Columbus
New York
Walter
-MEMBER
i!':
Bullock,
,
'
.
MIDWEST
STOCK
EXCHANGE-
Volume 1-76
Number 5178
The Commercial and Financial
Chronicle
...
(2403)
in
orous
their
79
purchases of these
obligations.
Our
Reporter
Governments
on
The
By JOHN T. CHIPPENDALE, JPv.
ing
government
through
operations.
usual
which
-
of
owners
the
market
these
partially
for
is
go¬
year-end
that
means
securities
are
prices
which
tions
just
and
tax
have
outside
Year-end
taken
>of
quota¬
this
area.
operations
the
are
most
somewhat
enlarged
in
volume
a.ctivity
although
it
brought about a broad
and
has
not
and
wide
trading market. Switches are fol¬
lowing the usual pattern, from
longs
shorts
to
although there
a
and
vice-versa,
to
now- seems
be
definite
more
.tendency. to
from shorts to longs. This
switch
has been instrumental in
improv¬
ing the tone of the higher coupon
obligations.
The
on
market
defensive,
is
still
because
it
is
bearing the full brunt of the tight
money policy of the powers that
be.
The uncertain
near-term
been
position of the
obligations
trast with
is
in
the steadiness
evident in
the
con¬
that has
medium
and
longer term securities.
Reports- indicate
demand
for
the
improving
an
bank
2V2s
of
1967-72. with buying from private
sources
giving
the
to
issues.
to
rule
the
not
yet be classified
mean
Tne
that it
1V2S
some
into
staying in much the
still
are
same
trading
there
declines
in
better
to
be
there
and
is
this
in
the
bond,
banks,
the
with
according
to
about what will
the
longest
dling the
bank
obligation
by
of
many
at
as
are
there
looked
prevailing
in
recently eligible 2%s.
1963-67
and
the
-
2t4s
at
banks have
due
a
bit
more
in
problem
to
by
no
han¬
will take place
unless economic condi¬
climate, with the
expected to be kept
money
markets as long
sure
what
to
will
Officials
and
honored
of
Curb
guests
tion
of
be
economic
next
*■.
■
&.
Curb
Brokers
held
Firms;
Roscoe
were:
Firms,
C.
Ingalls,
Henry
and
sociation
Also
sections
Vice-President, New York
Presi¬
Maynard,
Presi-
dent-Elect, Association Stock Ex-
Executive
Exchange; Edward A.
Stock
Putman,
the
of
the
various
Association
Exchange Firms.
the
upon
On
the
other
those who do not
are
carry
■
Co.
at
on
to
seem
high
as
in
as
indicate
a
level
a
This
1952.
Merrill, Turben & Co.
UNION
of
COMMERCE
BUILDING
CLEVELAND, OHIO
would
market
money
MEMBERS
with action not dissimilar to what
STOCK
MIDWEST
has been going on in the last sev¬
EXCHANGE
months.
eral
Originators, Underwriters, Distributors of
Treasury Bills Steady Due to
CORPORATE
Short-term
-
AND
MUNICIPAL
Support
SECURITIES
der
rates
continue
if
and
pressure
it
un¬
were
not
for
help by Federal here and
there, Treasury bills would most
likely be going to higher yields.
.Although there has been some
1186
Union
Commerce Bum;.
CLEVELAND
Telephone CHerry 1-1920
11, OHIO
Teletype CV 83
Underwriters and Dealers in
switching into this obligation for
tax
operations, it has not been
sufficient
to
make
impression yet
upon
much
of
the yield
Municipal and Corporate Securities
an
on
Treasury bills.
The
Member
Midwest Stock Exchange
restricted
little
a
more
recently
bonds
have
interest
in
had
them
Olderman, Asbeck & Co.
private
from
pension
funds, with the last two maturi¬
Union Commerce
ties being the favored obligations.
There has been
the
among
mainly for tax
shorter
being
Eeld, Rickards & Go.
ESTABLISHED
ment
largely
Bldg.
14, Ohio
switching
Bank
bonds,
Member:
Midwest Stock
with the
purposes,
medium
and
used
some
World
Cleveland
term
for
Exchange
issues
replace¬
purposes.
1903
Boston Inv. Club
Elects New Officers
Underwriters and Distributors
Of
PARSONS
N.
BOSTON, Mass.—At the annual
election
Club
Municipal & Corporate
on
Dec.
were
Securities
CLEVELAND
of the Boston Investment
held
the University
at
Club
10, the following officers
TOwer
gram,
Commerce
CLEVELAND
Bldg.
14, OHIO
Telephone PRospect
Teletype—CV
1-2770
174
1207
14, OHIO
CV 652
elected:
SPECIAL SITUATIONS
President: Albert P. Everts, Jr.,
Vice-President:
Union
BLDG.,
1-6550
★
Paine, Webber, Jackson & Curtis.
1556
CO., INC.
&
C.
B.
Union
Central
CINCINNATI
2,
Bldg.
197
&
CI
B.
J.
Russell
★
★
Bingham-Herbrand Corporation
Tucker, Anthony & Co.
Treasurer:
.
In¬
Potter,
Ferry Cap & Set Screw Company
Arthur W. Wood & Co.
OHIO
Telephone Main 3776
Teletype—CI
David
Secretary:
150
Alfred
A.
Wagner,
Coffin & Burr.
Publicity
Chairman:
Forest
City Industries, Inc.
Air-Way Electric Appliance Corporation
John
.Bleakie, W. E. Hutton & Co.
M.
As¬
Firms.
Exchange
Presidents
of
W.
Vice-President,
Investment Securities
some
Ex¬
dent, Association Stock Exchange
annual
Walter
the
change
any
activity
Fulton, Reid
McCormick,
change;
York Stock
Gray,
T.
York
the
as
in the' economic
picture, with business expected to
see
'
the
New
were
Exchanges
at
Edward
York
New
Richard M. Crooks, Chairman, New
conditions
influence
markets.
hand, there
•
change;
President,
pres¬
on
because
year
favorable
a
money
.
the
Customers
looking for a decline in busi¬
ness
activity, which should have
.
Hopkinson, Jr.
Exchange; John J. Mann,
Chairman, New York Curb Ex¬
Christmas Dinner of the Associa¬
are
'
E.
demand for funds is strong. There
is apparently some disagreement
vig-
as
i.
Collins
Stock
in
changes
policy
H.
Hold Yule Dinner
1953,
Dec. 11.
a
growing
Among the invited guests
really im¬
be
that
now
economic
times, with advices
been
done
tions undergo substantial change.
The measures
that are
adopted
will most likely depend upon the
12/15/59-62 have also been fairly
taken
debt
appears
opinion
portant
attractive
an
currently
The
because
be
Administration
new
Julien
Customers Brokers
Stock
Market
Although there is considerable
from the restricted bonds into the
Dewar
leading
reports, building positions in lim¬
1953
H.
considerable*
talk
the 2V2S due 9/15/67-72
Hal
ited amounts at present levels.
indicating that the New York City
or
opinion
do
selling tapers off.
the 2%s due 1958
commercial
number of switches
a
vvell
spurts
acting
the
should
tax
appears
activitiy
been
hold
been
though
occasional
have
some
Economic Conditions to Dominate
they have been in recently,
been
been
doing just the opposie, moving
from the shorts into the
longs.
According to reports there have
even
have
1956,
the
issue
are
range
there
also
shorts, while others will
quite
1946 -47
due
in
securities
still
be
levels.
obligations
because
of
and
Nonetheless,
going from the longs
are
48
-
obligations,
1955, the
1955, and the
IV2S
when
These tax exchanges
list,
that
the
1947
12/15/60-65
have
due
t~ese
the whole range of the gov¬
ernment
49
coupon
the
also
well
this has tended to hold
prices
within
the
recently
prevailing
area.
lower
as
l%s
helped the making of tax switches,
cover
6/15/58-63
such
other than
as
-
are reportedly the principal
buyers of the tax sheltered obli¬
gations.
a
relatively thin market.
There
have been, however, more buyers
and
sellers
around,
which
has
trading
1948
recently,
aforementioned bond. Commercial
Volume in the government mar¬
has
expanded
slightly,
al¬
though this does
due
banks
ket
issue
Factor
Treasury
continue
history.
upon
Changes Still Market
)
j
fillip
some
longest restricted
Year-End
likely
pretty
much,
until
the
1952 is about to pass on into
and
short-term
the
in
come
attention
2%s
market, although
the demand for this obligation has
not
been
as
strong as for the
market
can
have
the
taken out of the
forces
year
the
due
operating in the govern¬
ment market and these forces will
resulted
,
exempts
of
being the favored issue; The 2%s
main
benefits.
has
maturities
greater
with
adjustments^; switches
moving from one obligation into
another in order to obtain certain
This
longer
'
■
The
IBA PAST PRESIDENTS
Partial Exempts Have Attraction
Stock
80
The Commercial and
(2404)
ties.
Loud Exec. V.-P. of
Financial Chronicle
He has also handled the ne¬
F. Eberstadt & Go.
of the
Mr.
Board
and
a
President of F.
Inc., 39 Broadway,
City, has announced
York
the
election
Executive
Loud,
1935,
and
who
has
of
concerned
writing
Loud
Vice-President.
joined
been
Director
a
activities
Nelson
have
a
the
since
activities
and
for
the
Cor¬
to
New York
Webster-Chicago
there
Obviously
few
May, Borg & Co., 61 Broadway,
under¬
New
public
share
a
able in January.
Curb
cal
Exchange,
have
with
York
full
Only
43.9%.
pay-
lower than
This
ago.
There had been
rumors,
line
in
months.
taken into
the company
not
had
that
was
long
a
way
improvement
pro-
that this program will
and
gram
the
in
What
account
still has
its
in
year
hopes,
some
earnings
few
go
indicated industry average.
continue to necessitate large
Bonds
outlays.
t
ke
o
Thus,
payment
n
cash
though
even
a
stockholders
to
might be justified, conservatism
In line with the
Braun, Bosworth & Co.
Incorporated
-
New York
-
Detroit
Chicago
-
Club of San Francisco has
months
10
through
the
common
earnings on
,
announced the election of the following officers and directors of
,
with only $0.60 reported in
_
reflect,
th
did .
October, the abJ
sence this year of retroactive mail
pay increases. Even at that, it is
estimated
m t
,
that
full
h
$3 0Q
,
results
year's
b
Secretary: Robert Mann, Davis,
~
Skaggs & Co.
Treasurer: Robert
Goshen, Dean
Witter & Co.
Grosvenor
Directors:
T
,
.
ter, Dean Witter &
com_
.
Callan,
C.
p
,
.
Vice-President: William M. WitCo.
like 1951 interim. Comparisons in
the final two months will
1953:
the Club for the year
President: Edwin
the Brush, Slocum
,
r»i
..
„
T„„.
~
Farwell,
Tronnofu
r
list, and spurred
the recent earnings improve¬
hopes, Central
war
years
senger
when
business
the
even
was
pas-
MacKenzie, North
win; and John
being profit- American
Securities Company,
ment and dividend
stock had
Municipal Bonds
Toledo
the
For
is
throughout the speculative
section of the rail
by
gtreet
fortable margin. This will mark Jr., Blyth & Co., Inc., Kenneth C.
widening of in- the best results since the boom Koch, Walston, Hoffman & Good-
essential.
terest
FRANCISCO, Calif.—The
SAN
still at least five points above the
a
stock amounted to $2.16 compared
been
to
earlier it was
Thf^nrnvpSIn
the improvement in
and
Club Elects Officers
was
points
2.1
was
year
a
ratio
this
October
past
State and Municipal
months
While this
that perhaps double
with
operations
10
San Francisco Street
For the
identi-
was
taken
and
nership.
have been experiencing.
week.
action
the
speculative
railroads.
Central
it is still far too high for comfort
ander the
boom conditions we
declared,
was
City, members of the
York
admitted Robert Schwarz to part¬
placements of securi¬
$0.50
the
over
action of the New
Central directors last
His
a
community
disappointed
were
dividend
quite
were
financial
the
in
who
May, Borg Admits
stock in relation
other
of
stocks
eastern
Philadelphia, Penn¬
Corporation, Chicago, Illinois.
opinion of
much en¬
analysts, support
thusiasm for the
Inc., and
in
principally New York
with the firm's
and private
sylvania
Mr.
1945.
Vice-Presi¬
Director of The Diversey
Vice-President
been
a
Chemical Fund,
Corporation,
as
firm
also
many
such earn¬
the
in
not,
18,1952
even
However,
do
ings
poration, Chicago, Illinois; Porocel
Eberstadt & Co.
New
is
Loud
dent of
Eberstadt, Chairman
Thursday, December
able.
gotiation of mergers and sales of
companies.
Ferdinand
...
-
Cleveland
-
Cincinnati
been
quite buoyant. On
volume it
good
pushed
had
for¬
ward earlier in the week into new
high ground for the year. On an¬
the
of
nouncement
dividend
tion considerable selling
stock
The
easily
fairly
ground
gave
ac¬
appeared.
substantially.
The decline, how¬
lived and before
the close the stock was again on
DEALERS and DISTRIBUTORS
the way up.
of
If,
ing
months
continue to
New
BOND DEPARTMENT
has
been
not
earnings
Provident
Savings Bank & Trust Company
CINCINNATI 2, OHIO
PHONE CHERRY 6111
period
of
in
the
any
that
of
average
share
to only $1.28.
unprofitable
business, large amount
haul
and
l.c.l. freight
passenger
short
traffic,
heavy
the
and
burden of
terminal
operations, the company
was unable to get its costs under
control.
Also it was periodically
sweney
and in industries vital from
INVESTMENT
SECURITIES
fic
standpoint.
ratio
co.
Huntington Bank Building
traf¬
Columbus, Ohio
transportation
postwar
ly high figures of 44%-46%. The
high of only 6.9% in 1950.
a
In its initial stages the
tion
avail.
least
Probably
in
large
favorable
Ingalls Bldg.
dieselizaof /little
program" appeared
★
severely
trains.
this
to
the
increased
at
un¬
which
of
length
the
maximum
The
due
an
situation
d
y a r
limited
unless
ized
be
was
measure
from dieselization
savings
not be real¬
can
train
lengths
can
substantially,
thus
reducing the ratio of train miles
ton-miles.
to
the
Ton-miles
while
revenues
develop
train
miles
determine the expenses. Therefore
extensive property improvements
were
called
for
top
on
of
the
the
op¬
motive power program.
Some
Walter, Woody & Heimerdinger
MUNICIPAL BONDS
&
period
has ranged between the abnormal¬
to
Established 1887
403 DIXIE TERMINAL
CINCINNATI 2
-
pre-tax profit margin ranged from
a deficit in 1946 and 2.6% in 1947
*
CINCINNATI 2, OHIO
Its
during this
a
cartwri ght
INVESTMENT SECURITIES
plagued by strikes on its own lines
Seasongood (r Mayer
Distance 33
share re¬
the
substantial
its
With
Long:
4523
II
War
1946-1951
earnings amounted
of
MAin
The best
a
On
1950.
COLUMBUS IS, OHIO
BUILDING
history
year
the $2.84
years
BANK
~
should
World
inspiring.
for
was
ported
for
Central's
end
SECURITIES
HUNTINGTON
general busi¬
in com¬
this interest
expand.
York
the
since
>
community.
trading
holds to high levels
ness
MUNICIPAL BONDS
the
is expected,
as
Member Midwest Stock Exchange
INVESTMENT
Obviously speculative
caught the imagina¬
have
rails
tion
OF
=====
short
was
ever,
John B. Joyce & Company
percentagewise, quite
and,
improvement
in
erating performance began to ap¬
pear in
1952, although the road
was
from
with
still
the
suffer
to
labor
considerably
disturbances.
Even
improvement the trans¬
portation
ratio
consistently
well above 40%
month
ran
by month
through August. In the two sub¬
sequent months the
for the first time in
been
able
nominally
to
company
a
reduce
below
the
has,
long while,
the
above
ratio
40%
level. While this feat has received
considerable
publicity in the
press
in
the
heart
The Ohio & Company
~\
1
Volume 176
Number 5178
...
The Commercial and Financial Chronicle
(2405)
Continued from page 21
work
economically under 1,500
miles, we must take a new engin¬
eering approach to make it appli¬
cable
Progress and Problems
to
distances
There
ideas for
our
social and
Industry
must
the future.
with the public.
the
are
Decisions
to
critical
The
problem involves de¬
equipment. There is no
question but that we are in the jet
or
turbo prop age.
There is no
commercial
or
next
cisions
on
further debate
interested
its
about
four
rather
important segments that manage¬
ment in air transportation must
consider.
the
handling
principle.
wrong
»
the
take
As
course.
Mr.
right
engine and
Those things
mer¬
find
out
didn't
knew about
you
tell
them.
the
IBA
mmm
M:
it
and
At
40,000 feet,
there must be a great deal
of
pressure in an airplane's cabin. Jet
engines are inclined at times to
have failures and they throw their
jet wheels, so to speak, against the
all fuselage.
If you puncture a jet
gasoline
the
are
The British have made
to
the
cannot follow the British.
or
thing,
For
one
have private enterprise
with responsibility to our invest¬
Knowlton
we
iological
done.
research
For
that
that
reason
must
Aviation
Committee
lems is the question of labor.
When United Air Lines
ors.
I
than
favor
labor unions, I favor high
I favor all those fine things
help workers to live better,
to work better, to become better
citizens. However, many of us are
now confronted with the
question
of whether we are going to have
forced on us the feather-bedding
with
ently in
pay,
that
the
use
ton-mile
advantage
no
machine
equipment
that
or
will be
in
buying
unless
it
does
better and produces a
nomic
result.
new
its
job
better
eco¬
We have
sibility to stockholders.
a
a
respon¬
The
cost of the airplane of the
future is going to be such that the
airline that buys the
wrong one
will
bankrupt.
go
manufacturer
airplane.
wrong
So
It
will
the
builds
who
the
is
under¬
my
The Brit¬
John Clifford
Folger
Jay N. Whipple
Jaffe,
Jaffe, Lewis & Go.
as
(Special to The Financial Chkonicle)
CLEVELAND,
and
O.
Milton
George
—
B.
Lewis
E.
have
formed Jaffe, Lewis &
Company,
members of the Midwest Stock
with
offices
in
the
Union Commerce
Building Arcade.
Mr. Jaffe was
formerly a
partner
Jaffe,
which
Siegler
Mr.
&
Co.,
Lewis
was
new
firm.
Edward Siegler Forms
Own Invesfmenf Firm
(Special to The Financial Chronicle)
Exchange,
in
Siegler & Co., Mr. Fields
Lorain, O. representative, will
be connected with the
Formed in Cleveland
Jaffe
Rising Cost of Airplanes
pres¬
the cost per
There is
lower.
Charles S. Garland
be
do¬
your
mestic airlines
industry just can't
buys walk into the jet field as pictured
has informed you this morning, an
various
airplane, it must satisfy itself in
magazine
articles.
the industry is in excellent shape
that,
along
with
technological There is more to it than just read¬
this year.
progress
and
advancement, the ing the magazines.
Number one among our prob¬ end economic result will be better
of
1942 -43
I don't believe in
a
plane, or any plane, at 40,000 feet
develop¬ and lose the pressure, you have a
ment of a commercial jet trans¬ very serious
problem. There is a
port plane but we in this country great deal of technical study, phys¬
by management as a
possible fork in the road and a
determination
by
you
as
to
we
to relative
as
conventional
contribution
real
situations
whether
the
settled.
those
of
of
combustion
I would be interested in
watching
1943 -44-45
frankly
very
tell the people the truth and
they understand it, it doesn't scare
them early as much
as
if they
Equipment
on
banker, I would be particularly
in
1945 -46
feel
you
forward
problems confront¬
ing the industry? If I were an in¬
banker
over
I
in real and con¬
scaring anyone but I always have
development
in
the
air
operated on the principle that if
transportation field.
decisions and
vestment
which
tinued
look
What
IBA PAST PRESIDENTS
1,500
physiological
some
involved
should talk
we
What About the Future
we
are
problems
important part
economic progress.
Now
under
miles.
Oi Aviation
vance new
81
CLEVELAND, O.—Edw. N. Sieg¬
ler
&
Co.
has
in
the
offices
been
formed
Union
Building Arcade
to
with
Commerce
also
with
engage
in
a
asso¬
securities business.
Partners are
standing that if an aircraft manu¬
ciated.
industry is government facturer today wanted to
Edward
N.
specu¬
Siegler, formerly a
practices of the rail unions.
Our owned; it has no such
responsibil¬ late and build two
Bernard S. Haffner and Louis
prototypes of
partner in Jaffe, Siegler & Co.,
company had a strike last year, ity. Under no circumstances could
the jet transport I have been tell¬
R.
pot on the issue of pay but on we
Fields, both formerly with and Lawrence N.
justify purchase of the Brit¬ ing you about, he would have to
Siegler.
the question of mileage limitation. ish "Comet." We
would go bank¬ invest
$120,000,000 in engineering,
With the advancement of equip¬
rupt operating it. It will not pro¬ research, construction
costs, and
ment, labor is unnecessarily con¬ duce an economic end result. tooling for his production line in
cerned that there will be techno¬ There
you see the advantage of preparation for ultimate manufac¬
Active Markets Maintained in
logical unemployment, which is government ownership in one re¬ ture. He
would have $120,000,000
something I have never been able spect, in that the British are lead¬ invested in that
project. I think
MUNICIPAL BONDS
to find but which always seems to
ing toward the establishment of you will find that one or two com¬
be labor's spook in the closet.
greater prestige. They feel it is a panies now thinking of this are
CORPORATE SECURITIES
J I think I can appreciate the at¬ good investment for their country only worth about $80,000,000 or
titude of the railroad men. I don't to do
so, after coming out of the $90,000,000. That might indicate to
know
when
they
made
their war in a rather depressed position you that we must be right on our
Specialists in
agreement, but they did it a long with no particular leadership in next move.
time ago when labor unions in¬ aviation.
Michigan Bonds and Stocks
Thus, they are buying
sisted that 250 miles was eight
The Coach Business
prestige with the Comet.
hour's work.
ish airline
Those railroad pres¬
The
idents may have been sitting there
with
a
train
that
operated at
airlines
of
sorts
are
working
airplanes
20
on
through
all
their
respective research organizations
they —and
they are working together.
were concerned that was
an
ob¬
We now \ are working on a jet
vious commitment; they couldn't
plane that will travel at about 530
visualize trains that might travel
to 550 miles an hour. It will climb
miles
an
hour
and
far
as
as
The next critical point as far as
am
concerned is the air coach
I
business.
the
war
inch of space in an airplane.
of course, necessary and
every
It
is,
First of Miciiigax Corporation
There developed during
the practice of utilizing
Member
BUHL
NEW
YORK
Battle Creek
75
miles
an
hour.
It
didn't
a
much
it
managements
could
do
better job if they hadn't been sad¬
dled with so many feather-bed¬
than
just performance figures.
We think that particular airplane,
if we can use it properly, will
pro¬
duce a profitable result.
But we
ding rules and regulations which have to figure out some
very prac¬
make it almost impossible to take tical
questions
that
are
unan¬
advantage of technological prog¬ swered today. Our conclusions at
ress.
the moment indicate that the air¬
f It would have been very easy plane I have just described will
£or us last year to have said that efficient and a
be
money-maker, pro¬
vided it flies at least 1,500 miles
SO,000 miles or 50,000 miles was
a month's work, but with atomic
without a stop. Domestically, only
energy coming and with the speed 13%
of all our passengers last
of aircraft, that might become two
year
flew 1,500 miles or more.
days' work. We don't know. So I Now, these airplanes are going to
think the attitude we take in re¬ cost
$4,000,000 apiece. The ques¬
sisting feather-bedding—which, in
my
opinion, is just as detrimental
to the individual worker
to the
as
company—is going to have
a very
tion
in
is:
"X"
can
we
invest
number
satisfy 13% of
our
know.
$4,000,000
of
airplanes to
demand? T don't
are
to
Those
study.
If
things we have
the. airplane won't
proper
together
different
Thus
find
we
proposition.
when
that
they applied
ory—to
up
the
a new
put in
more
crowd
space,
bothering
We
about
ness.
me.
were
Detroit Stock
Exchange
Exchange
Specializing in
-
dependent
upon
you
may
enter
Continued
on
Kenower, MacArthur & Co.
MEMBERS
airline
Ford
thing,
our
page
air-
MIDWEST
DETROIT
Building,
Telephone
Detroit
STOCK
STOCK
Detroit
.
EXCHANGE
EXCHANGE
.•••».
26,
WOodward
Michigan
Bearinger
2-3262
Saginaw
Building,
Saginaw,
Telephone 2-3311
Michigan
Teletype DE 475
82
McDonald-Moore & Co.
& OO
MEMBERS
DETROIT
MEMBERS
MID-WEST
STOCK
EXCHANGE
•
STOCK
EXCHANGE
Underwriters and Distributors
Midwest Stock
Listed and Unlisted Stocks
(Associate)
Exchange
Penobscot Building
DETROIT 26, MICH.
Am) Arbor
Julius Poehelon
Municipal and Corporate Bonds
New York Curb
.
Hitchman
Huron
reluctant and hesitant
Members:
Stock
T. Norris
Port
•
Michigan Municipals and Revenue Bonds
we were doing the right
We think the public is ex¬
that
CLEVELAND
•
Grand Rapids
•
Reginald MacArthur
the aisles,
and sell the
management to do the right
so
CHICAGO
Municipal and Corporation Securities
seats, crowd
going into the coach busi¬
Why? Because we weren't
tremely
•
up
satisfied
thing.
Midwest Stock Exchanges
Underwriters, Distributors and Dealers in
economic the¬
Investment Securities
York
John L. Kenower
carry more people
trips for less. It sounds very sim¬
ple but that is what has been
WATLING, LERCHEN
New
certain
types of operations were started
by the
nonscheduled
air
lines,
&
Bay City
•
that, in time of war, we
10,000 feet a minute. It will cruise use
everything to the maximum,
mean anything to them at the time
at 40,000 feet.
Those figures are but the
crowding of people in air¬
hut today I think we see the rail¬
spectacular, but there is more to planes
during peacetime is an al¬
road business dwarfed.
Present
at
Detroit
BUILDING, DETROIT, MICHIGAN
DETROIT 26,
MICHIGAN
Jackson
GRAND RAPIDS
LANSING
FLINT
82
The Commercial and
(2406)
Continued,
from
for the
81
page
is asked to make
that responsibility.
forced into the coach
recognize
We
would be destructive if we had
much
wanted to satisfy ourselves as
but
the
the
whether
to
doing
were
we
any
public debate about it,
contribution to safety—
well-being of the public—can¬
Those who think
spent hundreds of thousands of
dollars in research; research which I have been destructive can wait;
time
they may find that
has just been completed and ex¬ some
the long run.
in
have
We
to
come
what
the
have done has been con¬
we
This air coach business
conclusion that what we were do¬
structive.
wrong.
We still are in
the coach business and we intend
has been a critical
ing
was
remain
to
trying to
in
we
airplane.
The next
erning the operation of aircraft
for safety cannot be formulated
by statisticians or economists. I
have great respect for statisticians
and economists; in fact, I use them
a
great deal, but I have respect
for them in their place. When it
comes to safety, I want to discuss
the question and policy with en¬
gineers and the men who fly the
airplanes.
The
governmental
not like it.
of
agencies
I had the
presenting
our
afternoon.
my
the
All
I
conscience is
decision
can
more
than
it
You
is
gentlemen
cumbs
on
to
times,
such
the
Board
responsible
decisions
then,
the
facts
to evaluate from
of
effect
which
did
If
I
the
in
were
or
and
the other.
position,
your
I
greatly concerned about
stability
of
nautics Board.
is
that
stable.
I
agency
break
or
direction
one
would be
time to time the
regulatory
make
can
in
move
this
the
Civil
Aero¬
It has not been too
not
am
critical
of
the
that
danger
That
and
is
that
upon
go
sions of
.
itself.
Board
before.
business
We
the
just
are
in
as
responsible
airline
this
mentioned
of
self
that
MEMBERS
NEW
WASHINGTON
YORK
STOCK
CURB
EXCHANGE
(ASSOCIATE)
EXCHANGE
trend
and
that is
that nlust be
one
in
effort
and
technical
District
7-5700
6,
D.
think
I
us
should
we
recommendations
Eastman, then
Interstate Com¬
which
each
would
form
be
within
agency
ICC
the
Commission,
merce
tion
of
of
and
out with
study
an
instance,
nautics
of
transporta¬
represented
an agency,
functioning
as
so-called
a
moderator, co-ordinator and court
appeals. It is unfortunate for
see
if
the
new
in
we
Civil
opinion,
my
Eastman
hasn't
the
did in
we
sell
we
1940 is
airplane has become
contributor
to
can
reducing
problem; for the good of the
we have to look at all
own
Dwinnelf,Harkness &
Hill Formed in Boston
BOSTON, Mass.'—
Aero¬
Harkness & Hill,
Dwinnell,|!
been
formed
State
Street ;.to
securities,
Incorporated, has^
with
offices
act
specializing
>
exempt bonds.
comedy.
If you
phase of air transpor¬
foster
a
undertake
don't think
simple little airplane
the
tified
is
Board
tation which it has
you
in
Officers
no
inclined
business to
which cannot be jus¬
or
economically.
We thus
are
formerly
was
municipal
brook
with
the
Boston,
ated
Co.
&
Mr.
First
ana
of
National
Mr.
charge at
that
Hill
airline
an
has
at
was
the
at
you
BANKERS BOND ^
INCORPORATED
;fe^:rlst;FLOOR KENTUCKY HOME LIFE BLDG.
time of day.
arrive at ten
proper
if
LOUISVILLE 2, KENTUCKY
equipment
all
and
of
,
ours
standing by. You wonder why we
don't interchange.
But you come
to the Chicago airport from four
able
EXCHANGE
until nine at night and
will find every piece of avail¬
INVESTMENT
equipment being used by the
individual
THOMAS
H.
airline.
on
mendous.
Let
example
of
Francisco at
Markets In
a
securities
tion
six
some
months
Direct Private
«a
4
our
Wire to
New York
Correspondent
overhaul
bad
ESTABLISHED 1920
so
WASHINGTON STOCK EXCHANGE
-
a
EXCHANGE
DISTRIBUTORS
-
the
sent
of
*
Branch
Bell
Office:
Teletype: WA £>'5 & WA
Alexandria, Va.
plays.
28
can
we
of
have,
Mgr.
KING
M.
WILLIAM
FETTER
R.
H.
P.
GRAGG
JOHNSTON.
E.
JR.
Pl'RYEAR
an
(
during
;
In Louisville Since 1872
a
reduced
in
think
six
is/a.,
our
Eighty Years of
Investment Service
facilities
be moved into
baggage
can
three
or
four
you
and
triple
who have
bags in flights here and
the
due
say
we
are
faci that this
to
J. J. B. HILLIARD & SON
be
room
being transferred
in
there, I want-to
proud
Asst.
C.
CONWAY
have to turn to the air¬
To those of
lost your
LEWIS
M.
its opera¬
right into the baggage
instead
DEALERS
Building, Washington 5, D. C.
Telephone: Sterling 3130
to
base
don't
and your
involved
Southern
of
repair
airplane
dock
P.
the overhaul of
ports and mechanize
MEMBERS
UNDERWRITERS
now
CHARLES
WeNAIR
people in fi¬
It has
on
I
F.
DEPT.
San
investment.
We
Johnston, Lemon & Co.
and
which
years,
STOCK
in
as
man-hours
BOHNERT
HANNAH.
ROBERT
engines, aircraft and instruments
by 22V2%. We will pay for that.,
<0
PHILADELPHIA-BALTIMORE
base
"United Air Lines' folly."
I will tell you how much of
our
Loeb, Rhoades & Co.,
WOOD
that
.1.
cost of $7,700,000—
folly it has been.
Carl M.
in
C.
INVESTMENT
Manager
one
built
circles referred
the first
washington
repair
a
plant which
nancial
have
YY.
E.
tre¬
progress
We
and
are
just
cite
me
our
direction.
overhaul
the ground
DEPT.
GRAHAM,
YVILI ARD
The opportunities to further re¬
duce costs
Firm
associ-
with John Nuveen & Co.
a
m
quite
year
quality control,
ESTABLISHED
1872
Member New York and Midivest Stock
Associate Member New York Curb
Exchanges
Exchange
Tax-Exempt Bonds—Investment Grade Common Stocks
419 W. JEFFERSON
Masonic
Temple
ST., LOUISVILLE 2, KY.
Owensboro, Ky.
was'
Bank- of
it
we
Chicago
TO
STOCK
Esta-
Dwinnell
equipment, men,
as though
the
Queen Mary had just arrived—
and, after all, it only weighs about
100,000 pounds.
For every gate
you
YORK
of the
co-manager
department
o'clock
NEW
R. B.
Harkness, President; Draper Hill,
in,'
comes
you might see Chicago &
Southern Airlines and Delta using
HAYDEN, STONE & CO.
.70;
un:
tax-"
are
automotive
carts
their
MEMBERS
at
dealers
as
a
as
to
km-
cost, but all of you who flv
know that the ground operation
a
Board
Sometimes
mile
port
local bank stocks
come
authority on this
subject, but I think we all have
grown up. -We can't continue to be
selfishly interested only in our
as an
we
intelligent,
that
so
a
the progress of air transportation.
price
same
because
that
reason
o'clock
washington securities
an
the
In
WIRE
in
with the
air transportation today for about
The
Some of you may ask
don't pool these things
and use them jointly. The trouble
is that you don't go out to the air¬
Firm Markets in all
a
transportation.
it¬
co-ordination
on
transportation
For
development of the air¬
calling for
regulatory Vice-President, and Marshall
agency is extremely interested in Dwinnell, Treasurer. Mr. Harkness
plane.
why
DIRECT
many
cit¬
in the reguation of different forms
what not.
67
does}
re-examine
made
Mr.
by
ago
Chairman
in
as
overlapping and ' con¬
flicting interests'and controls.
and
busi¬
transportation
vested in individual step ladders,
automobiles, air conditioners and
C.
Teletype—WA
surface
country
overcome
scientific
the
place in short haul
no
large terminal, there is $70,000 in¬
BUILDING, 1625 EYE STREET, N. W.
WASHINGTON
say
can't
cor¬
rected. We have spent "all our time
position
CAFRITZ
interests
bodies
come
unselfish
represents^dapgerouS',
might ;dc
effectively.
some¬
as
Transportation
what
regulatory
in the air—and
and
EXCHANGE
We
transportation
else.
is
can't
true.
This
has
ness;
that
it is time to re-examine the
the large propor¬
investment of the
where another
For ex¬
ample, we have short haul and
long haul business. The airplane
to the front
izens; the overall quality of trans¬
portation in all its forms. At this
airlines is
A
STOCK
like to
thing.
more
rail
thing
deci¬
have no sense of humor.
Take the way baggage is handled.
YORK
betr
my opinion, to look at
transportation as one thing
air
Possibilities/--
capital
the job more
of
closing, I would
one
and
morning when Mr". Knowlton
tion
so,
NEW
That
you
time I am not recommending a
future, ppssi^jlities.single regulatory agency but I do
couldn't help but
^'/impressed think
is
JONES, KREEGER & HEWITT
hope to give
about
Now
I
great challenge.
a
we
continue, in
decisions
any
In
just
yesterday or tomorrow.
Future
virgin
a
Transportation Coordination
great
a
field
a
transportation
transportation,
greater
look with
have
is
It
The Question of Regulatory and
see
unlike
are
operations.
and
ef¬
our
greater efficiency in
results.
ter
of the things
some
We
on.
that
today
by continuing
pres¬
some¬
investment
an
as
banker, I would like to
stability and I would
suspicion
and
regardless of what the
us
—
ground
is where
do
to
agency
indicate.
facts
this
to be saved
field
the other hand, put
on
on
thing for
the
clear after
ciency.
not
submitted
pay¬
by increased effi¬
There still is much more
signifi¬
the economic
on
of
our
of
co-ordinated plan of regulation of
all
forms
of
transportation, in
all
making
for
years
form
years
forts toward
agency
sure
five
forced into
off-set
We cannot operate a regulatory
cance
last
Thursday, December 18,1952!
...
roll,
through
wage
increases
alone, has gone up between $20,000,000 and $25,000,000. We have
suc¬
but
pressure,
the
In
commerce
always.
in
everything can be handled
efficiently and smoothly.
the Board to
pressure on
At
may
issue, you may ad¬
vise with us, become our bankers,
and try to anticipate the future
of the company. You have to guess
just as we do, but you also have
this
was
bring
of
our
that
so
business¬
Senators,
chambers
and
done.
an
up
say
all
we
consideration
this
in
underwrite
them
to
case
on
justifies
thing in which
Board.
tics
opportunity
yesterday and will finish
department loose
going to invest
are
building
docks
into
which the airplane can be moved
every
the conduct of the Civil Aeronau¬
coach planes
our
believe
it
in
nation of future development. Im¬
portant
from 66
passengers to 54. I might say that
it was not a popular thing to do.
on
are
should be interested is a determi¬
We have reduced the maximum
load
I
My con¬
public confidence in what we are
doing.
squeeze every
out of the
that
basis
a
are not
last nickle
Policies gov¬
but
it,
We
is clear.
science
thing.
decision,
a
to
one
bag in
Instead of investing
lot of step ladders
a
we
money
do it the way the airline wants it
not, in my opinion, be destructive
right thing by the public. We have
amined.
to
again,
in
Chronicle
loss
our
1,000.
$70,000
immediately turns its pub¬
relations
men
too
Nevertheless,
by threat.
lic
Congressmen,
it
were
business
we
airline
enough
they succumb to
Whenever the Board
that pressure.
people have made the state¬
that our decision has been
destructive to the industry. I think
Because
while
a
ment
We should
at our mercy.
Why?
them from all sources
Some
confidence.
perfect
with
in
once
Of Aviation Industry
are
every
pressure on
Piogress and Problems
You
limited
members.
learned that if you put
we
planes
instability of the Board as
its
are
Financial
t,
Volume 176
Number 5173
.
.
.
The Commercial and Financial Chronicle
(2407)
i
Heavy Public and Private Debts
trend"
ciation of Credit
debt
now
By WILLIAM J. McKAY
aggre¬
and individual
Further
exceeds $125 billion.
now
!In
H:
editorial article by Henry
an
Heimann,
the
in
we
ernment
"Monthly
Business Review" of the National
Association
ness
men
Men,
not
we
only
future.
to
It
is
whether
of
longer
no
we
of
reduce
strated
view
the
aroused
will
tremendous
express
both
in
question
the
cut
question
a
As
H.
of
<!in the past
depreciated
the
of
corporations,
$160
billion,' has
six
our
!, dividual debt,
now at
doubled
billion, which is twice
and
purchasing
-
which has
through
our
deficit
the' value
goods
enlarged
possible.
"If
$125
exceeds
now
that
increasing
As
of
so
currency
increased
civilian
and that in-
years
total
budget
the
of
to
of
fi¬
our
be
production
which
reduced
will
make
government
and
of
present
our
capacity
the cost of
ment
is
North
certain
financial
re¬
are
New
York
in
New
Federal
Re-
engender
enough
stimulate
and
and
S.
new
G.
&
Co.
of
is at
which
a
is
these
easy
indicates
business
30-year high.
new
..,"It
he
end
incentive
the
to remember that
dollar debts probably
so
that
government
tually receive
well
under the
York
ing
more
naturalized
higher
close
*
Another
despite
*
note
the
of
..
debt situation.
"It is, therefore, a
good policy for all, both business
and
yHfnen
behalf of
will
that
carefully
incurring
further
any
debt,
vestment
America
but
Bankers
will
Hollywood
also to program for the amortiza¬
tion of their present obligations.
wood
Debt service charges will continue
29
to
"The
next
Beach
Beach,
held
in
Hotel,
Florida,
The Association's
bearing his
has
interests
will
warning thai,
of
"we
cannot
readjustments
the
business
in
as¬
one
structure
always be offset by expand¬
ing influences
from
other
direc¬
tions."
underlying
ESTABLISHED
chants,
V
Members New York
of
New
York
Associate Members
of the
New
York
Exchange
Stock
Curb
Exchange
Exchange
Government and Federal Land Bank Bonds
the
Maryland County and Municipal Bonds
Listed and Unlisted Stocks and Bonds
United
Active Trading Markets in
Chair¬
Local Securities
is
metal
&
mer¬
CALVERT & REDWOOD STREETS
subsidiary of the London
a
Stock
Members Philadelphia-Baltimore
a
name.
the
He
1900
on
Brandeis, Goldschmidt
Inc.,
the
Holly¬
November
same
BALTIMORE 3, MD.
which
name,
by S. G. Warburg &
Co., Ltd. He is also a director of
and
vestment
a
London
Toronto, an
company in which
organization
substantial
Mr.
with
Telephones:
New
York—CAnal
the
has
is
all
Canadian
and
in¬
Bell
6-7162
System
Baltimore—Mulberry
Teletype—BA
260C
395
had
participation.
Warburg
familiar
Representatives: Clarksburg, W. Va.; Salisbury, Md.
Investment
Ltd.,
Warburg
thoroughly
phases of U. S.
business
fi¬
and
having participated in the
nance,
operations
conducted
by
Kuhn,
Loeb & Co., and the International
Acceptance
Bank,
which
INSURANCE
was
STOCKS
merged into the Bank of the Man¬
Winter
meet¬
hattan
family
14,
that
that
BAKER, WATTS & CO.
extensive
in
Canada.
and
of
now
to act
power
Warburg
business
Co.,
but
Chairman
as
firm
Mr.
ing will be held February 13 and
1953, in the Edgewater Beach
Hotel, Chicago. The Spring meet¬
unlikely.
seems
be
of
to December 4.
be
costly, interest rates will
firm unless political action again
prevents the operation of the law
of; supply and demand, which now
Association
sees
ar¬
Kuhn, Loeb & Co. and
remain
London
Toronto
present taxing."
The 1953 Convention of the In¬
individuals, to weigh
the advisability of not
Enman
is controlled
Dates of IBA Meetings
Scheduled for 1953
power," Mr.
vHeimann says in making his point
about the serious nature of the
added
sector
*
"strong
Mr.
"seriously threatened by
in overseas markets,"
cooperation
banker,
ain, will have full
Company,
purchasing
in
the best interest all around."
citizen of Great Brit¬
concern
than
revenue
Scotia.
Canada
and
be
favorable
States, some
in business "may come
these days," was uttered
restriction
sume
"would
more
United
Warburg &
announced
German
ac¬
would
Nova
tion of the British position in this
he added,
the
Kuhn, Loeb & Co.
for
the
in
will have to be paid in dollars of
/
the
of
respect,
'
System
Mr.
strong and widely accepted
sterling currency. Early clarifica¬
supervision of Siegmund G. War¬
burg. Mr. Warburg, a former lead¬
confidence
the
principally
Loeb
problem,
a
completed by the two af¬
filiated banking houses, under the
ber
from
by
been
man
move
payments
that
by another bank President, H. C.
Enman, President of the Bank of
bal¬
Stewart held, could best be eased
in, general financial matters have
effect
banks
Kuhn,
rangements
could
a
Ltd.,
of
ance
international
fact
Co., Ltd., London bankers.
easily
serve
in
one
chronic
in Canada. The two firms in ques¬
logical
such
Holdings,
enterprises
tion
can
tax
announce¬
The
which will invest in industrial and
was six years ago. He also points
to the total of borrowings of mem¬
of
recent
two
American
States
it
increasing
leading
inter¬
national
banking
firms
have
joined in forming a new company
in
Toronto,
called
the, L.N.T.
ductions put through, the psycho¬
much as
as
the
that
The offices of
our
bolster
v
trouble
lower
a
once
increase, our people will
have the ability to absorb much
President of
debt
the
to
dollars
Heimann
jthe Association, points out that
the
people
expenditures
balance
nancing. *
Henry
Vice-
around
need
constantly
Heimann,
who is Execuv e
take
not
demon¬
been
our
oeen
'
warning,
Mr.
t i
has
power
basis for
a
this
thus
years.
afford
can
It
that
can
we
debts in the j
six
we
it.
government
private
^:last
whether
"We
public
and
?
get
themselves.
of
"increases
'
gov¬
will
can
extending
credits, in
•
of
a
budget, but rather it is
tious policy in
-
cost
further in debt, but we will bund
real
trouble
in
the
near
cau¬
a
the
for
busi¬
are
warned
take
Credit
of
reduce
can
of
world-wide investment interest in
Canada
J
evidence
the
Canada looked
than
setback
Men, points out corporate debt,
years,
in
bigger Canadian
a
and
term prospect for investment
near
Canadian Securities
Policy
Henry H. Heimann, Executive Vice-President of National Asso¬
gating $160 billion, has doubled in six
toward
economy
Calls for Cautious Credit
1
83
a
Company.
In
by
forced
was
his
1938
Nazi
the
government to dispose of its inter¬
in
est
firm.
the
Soon
Mr.
after
UTILITY
PUBLIC
Warburg, with others, formed the
ing will be held May 13-16 in the
New
\ watch is the cost of government,
Greenbrier
Springs, West Virginia.
MUNICIPAL
—
INDUSTRIAL
SECURITIES
don, whose activities until the end
I both
—
important factor
national
local.
and
to
Unless
Hotel, White
Sulphur
of
;a
Trading Company, Ltd., Lon¬
the
last
small
war
were
number
transactions.
nance
War II,
confined
industrial
of
After
to
fi¬
World
when the company's
name
changed to S. G. Warburg &
was
Co., Ltd., it became active in plac¬
ing and issuing credit to business
Mead, Miller & Co.
Members New York Stock
New
York
Curb
Exchange
Exchange
Philadelphia-Baltimore
CSTABUlMtD
Britain, as well
its interest and
nections
(Associate)
Stock
Great
in
as
Exchange
in
world,
various
parts
particularly
OF
NEW' YORK
STOCK
EXCHANGE
con¬
of
in
!•••
in
MEMBERS
developing
NEW
the
YORK
CURB
EXCHANGE
PHILADELPHIA-BALTIMORE
North
(ASSOC )
STOCK
EXCHANGE
America.
ft.
The
national
Active Markets in Local Issues
tf
entrance
NEW YORK
BALTIMORE
t{.
of
inter¬
strong
banking interests in the
Canadian field is
indication of
an
world-wide confidence in Canada's
i.
economic
future, and is
contribution
111 E. Redwood
Telephone: Baltimore
—
Canadian
St., Baltimore 2, Md.
Lexington 0210
Bell
Teletype
New York
—
—
curities
nual
BA 270
the
prices.
address
James
of
capital
new
which, he said,
C. T. WILLIAMS & CO.
tained
in
bank
INVESTMENT BANKERS
road
in
of
United States Government and Municipal Bonds
Utility
and
Industrial
FIDELITY BUILDING
Private
—
Bell Teletype
—
BA 499
Telephones to New York and Philadelphia
Branch
Office
Bell
—
National
Bank
Teletype—ESTN
large
BALTIMORE
investment,
the most
RYLAND
A
SECU
sus¬
history.
Bldg.,
MD
Easton,
264
Md.
cautioned
had
no
entering a period
risk in business,"
are
increasing
1, MD.
of
our
Stewart said,
was
more
than 7% higher than last year be¬
cause
some
crops.
of
Telephone: SAratoga 8400_
greater
.
OTHER
Canada's gross national produc¬
Mr.
A Baltimore Institution since
productivity,
price increases and bumper
1 853
6 South Calvert Street, Baltimore 2,
affairs."
tion figure of close to $23,000,000,-
000,
Stein Bros.&Boyce
since he told share¬
ahead,
duct
Y
that
easy
adding there is no need for pes¬
simism, "provided the-utmost ef¬
ficiency is exercised in the con¬
Issues
BALTIMORE
Telephone Plaza 2484
in
heavy vol¬
nation's
Canada
holders "we
Public
was
the
President,
business
Railroad,
WE INVITE YOUR INQUIRIES
However, this prominent Canadian
INCORPORATED
„
se¬
an¬
Commerce, at¬
buoyancy
part to the relatively
ume
recent
stockholders,
President of the
Stewart,
this
his
of
some
to
Canadian Bank of
tributed
added
Canadian
of
In
an
buoyancy
despite
progress,
reaction
recent
WHitehall 3-4000
to
LOUISVILLE, KY.
NEW
•->
Maryland
,
Teletype: BA 393
OFFICES
Wabash 5331
PHILADELPHIA, PA.-Pennypacker 5-5175
Rector 2-3327
-----
YORK, N. Y.
.
CUMBERLAND, MD.
MEMBERS
OF NEW YORK STOCK
and Other
-
EXCHANGE
leading exchanges.
Cumberland 1540
ft*
The Commercial and Financial Chronicle...
(2408)
BIyth Group Offers
Cons. Eng. Corp. Sik.
IBA PAST PRESIDENTS
I;;
A
1938 -39
1939-40 -41
1941 -42
nationwide
of
syndicate
vestment bankers headed by
& Co. Inc.
Dec. 16 made
on
stock
IBA PAST PRESIDENTS
in¬
1937 -33
Blyth
1936 -37
1935-36
public
offering of 225,000 shares of
mon
Thursday, December 18,1952
com¬
(par 50 cents) of Con¬
solidated
Engineering
Corp.
California at $15
Pasadena,
of
per
share.
Proceeds
from
the
stock will
sale
of
the
be
applied by
the company against the purchase
price
of
a
vacuum
equipment
common
business
to
division
be
of
acquired
Eastman
from
Kodak
a
Co.,
for which the company expects to
between
pay
$2,500,000
and
$3,-
000,000.
The business to be purchased
Jean C. Witter
Emmett F. Connely
John S. Flesh
is
part of the operation of Distilla¬
tion
Products
Industries
F. E.
Edward B. Hall
Frothingham
Orrin
G.
Wood
which
incorporated in 1938 under
the joint ownership of Kodak and
General Mills, Inc., to exploit a
was
Joins Hill Richards
Bayard Dominick II Dir.
general
Bayard Dominick, II, a
partner in the firm of Dominick &
Dominick,
(
has
elected
been
known
process
(Special to The Financial Chronicle)
LOS
ANGELES, Calif.—Gordon
Curtis
M
.g
nQW
a Hill Richards &
director of National Shares Corp.
tillation.
affiliated
Co.,
621
with
South
Spring Street.
sold
In
its
molecular
as
General
1948
interest
Kodak, and
corporation
business
in
D.
P.
I.
to
Dec. 21, 1949, the
dissolved and the
on
was
continued
division
a
as
Distributors
Engineering Corp.,
with
its
two
principal
plants
located in Pasadena, Calif., is en¬
gaged primarily in the design, de¬
Dealers
Va.—On
RICHMOND,
John
Kerr Branch
become
a
partner
1,
Jan.
Rennolds will
Branch
in
&
Company, 1103 East Main Street,
of
members
of Kodak.
Consoldiated
Underwriters
Alex. Brown to Admit
To Be Branch Partner
dis¬
Mills
Richmond
the
and
York
New
Stock Exchanges.
BALTIMORE,
Harvey,
Jr.
partnership
Sons,
135
members
Md.—F.
will
in
be
Barton
admitted
Alex.
of
the
New
to
Brown
East Baltimore
Sc.
Street,
York
and
Philadelphia-Baltimore Stock Ex¬
changes, Jan. 1.
velopment, manufacture, and sale
SOUTHERN
TEXTILE
SECURITIES
South Carolina
General
dustrial
Midwest
used
instruments
by
diverse
a
including
of
turers
which
list
x'
MUNICIPAL BONDS
Public Utility, Industrial & Railroad Securities
Active Market
are
petroleum
Exchange
other
S.
structure.
C.
types
in
used
Bell Teletype ZP 67
Ltaj Distance 51
and
engines,
the
by
of
Its
and
machines
the
on
State—County—City
Bonds
—
Warrants
MEMBER
MIDWEST
and
|
v
Corporate
private
have
been
stock
common
each
Securities
S=
114 Third Street, N. E.,
Phones
2-8157-8-9
STERNE, AGEE & LEACH
MEMBER MIDWEST
STOCK
BIRMINGHAM
Teletype BH
97
3,
EXCHANGE
ALA.
Long
Distance
9983
Branch—Montgomery 2, Alabama
CO., Inc.
Charlottesville, Va.
Bell
Teletype—CHARVL 95
THE
Peoples National Bank
Elects New Officers
members
tee
ililllllllllllillllll!
EXCHANGE
and
on
one
Dealers in
member
of
Municipal Bonds
Specializing in
Virginia, North Carolina, and West Virginia Municipals
CAPITAL STRUCTURE
the District Commit¬
new
CHARLOTTESVILLE
CHARLOTTESVILLE, VA.
g
CHICAGO, 111. — The annual
g election in District No. 8 of the
g National Association of Securities
g Dealers, Inc., comprised of the
g States of Illinois, Indiana, Iowa,
g Michigan, Nebraska and Wiscong sin, has resulted in four new
H
STOCK
paid
NASD Dist. No. 8
|
EXCHANGE
year
g beginning in 1947, but the greater
jj portion of the company's earnings
g has been used for research, eng gineering and development, and
g for the general expansion of the
g business.
(
STOCK
C. F. CASSELL &
field
OF
Local
Securities
organizations.
Cash dividends
lllilllil
and
also
are
energy
universities
research
Local
and
pumps
atomic
in
PHILADELPHIA-BALTIMORE
railroad
products
Dealers
indus¬
of
automotive,
equipment,
Distributors
VIRGINIA
chemical companies and manufac¬
1892
Stock
Underwriters
in¬
The
uses.
technical
Securities
SPARTANBURG,
and
instruments, mass spectrom¬
eters,
leak
detectors,
electrical
computors and other specialized
A. M. LAW & COMPANY
Member
analytical
ing
tries,
Established
specialized
company's
products include dynamic record¬
Municipals
Corporate
of
instruments for scientific
PROPERTIES
and
lease
or
November
30,
at
1952,
close
of
business
$3,877,000.91
the
Board of Governors.
W.
Thurman
Riley, Vice-Presi¬
Riley
&
Company,
Mil¬
waukee, Wisconsin; John D. McHugh, Vice-President, James J.
McNulty
&
Company, Chicago,
Illinois;
Arthur
S.
Grossman,
dent,
partner,
Straus,
Dowell,
R.
lington, Iowa,
municipal
bonds
succeed
j
Mc¬
and
TELEPHONE V-WA
j
President,
Company, Bur¬
have
Vern
been
elected
Bell,
S.
Bell
&
Farrell, Inc., Madison, Wisconsin,
Joseph E. Dempsey, Dempsey &
Company,
Chicago,
Thorson. Paine,
Illinois;
Reuben
Webber
0$cm:
LYNCHBURG, VA.
RICHMOND, MIL
Chicago, Illinois,
Harry G. Williams, Quail &
Co.,
Davenport,
members
of
the
Iowa,
retiring
n, car.
*. va.
^
j
CORPORATE LY42 & 63
j
MUNICIPAL Lm
1
I
CORPORATE STOCKS & BONDS
j
MUNICIPAL BONDS
DANVILLE, VA.
UNLISTED SECURITIES
ROANOKE, VA.
District Commit¬
'
tee.
VIRGINIA
TELETYPES:
r
NORFOLK, VA.
Jackson & Curtis,
and
i
m
Kramer,
Kramer-Gardner
to
&
Illinois;
Chicago,
Alfred
SOUTHERN
Blosser
m
BLOEFfELD, W. VA.
George F. Noyes, Vice-President,
Stubbs, Smith 4 Immm, In.
The
Illinois
Illinois,
Board
BIRMINGHAM
has
of
Clarence
Telephone:
7-3175
Teletype:
BH 287
Company,
been
Governors
A.
Chicago,
elected
Bickel,
to
to
the
succeed
Milwaukee,
LYNCH BURG ..VIRGINIA
Wis.
The
mittee
newly elected District Com¬
and
members
Board
twill
Jan. 16, 1953.
of
DISTRIBUTORS
,
Governors
office
assume
U
UNDERWRITERS
£
on
<y4
-
-
-
J;
tVolume 176
Number 5178
.
.
The Commercial and Financial Chronicle
.
(2409)
Continued
from
page
Bulletin," shows that despite all
the selling effort that has been
3
put forward the rank and file of
The Institutional
American
families
equities. Only
do
not
IBA PAST PRESIDENTS
own
8% of families
some
stocks. Among lower-income
families, the large majority prefer
to
put their savings in savings
banks, savings and loan associa¬
own
Market lot
league, although they are enjoying
a spectacular
percentage gain.
These
are
six
types
gathering
billion
in
institutions
of
approximately
trast,
through
direct
net
save
than
and
the American people are now in¬
vested through
institutions, rather
than
directly
mortgages.
in
The
Securities
Inpact
What
on
the
are
securities
and
Market
of
consequences
this great revolution in the invest¬
ing habits of the American
ple?
for
For
peo¬
thing, the demand
bonds is artificially enlarged
because
the
one
these
institutions
bulk of their funds
invest
in
credit
instruments and not in equities.
is
artificially
contracted.
As
savings go into institutions that
buy only or mainly bonds and
reason
was
about
unusual.
far
The
in 1950
in
above
Role
ual
true because individ¬
more
investors
in
the
middle
and
income brackets who
upper
pro¬
vided the chief market for stocks
have
smaller proportion of
a
the
nation's savings and are attracted
into tax exempts because the re¬
turn after taxes
is often not suf¬
ficiently attractive on taxable se¬
curities, except for capital gains.
Distortions resulting from the
institutionalization of savings
have been exaggerated by the fact
that many corporations have dis¬
liked long-term borrowing on any
large scale, in view of adverse de¬
pression experiences where bor¬
rowing was heavy. Industries that
burned in the depression like
the railroads have virtually aban¬
were
doned
new
financing with longbonds; they limit themselves
equipment
trust
certificates
term
to
with
serial
were
in
to
up
corporations
15
that
not burned
the
past,
IBM,
or
maturities
Only
years.
by excessive debt
like Union Carbide
are now
willing to: finance
freely
with
long-term
The
result
ization
of
of
many
of
the
institutional¬
savings and reluctance
corporations to finance
with bonds has been
change in
a
yield relationships. We have.fig¬
ures showing the
relationship be¬
bond
tween
yields for
many
1919
tween
bonds
were
higher than
those
17
yields
and
years
1935,
almost
yields
years,
and
back.
Be¬
yields
on
consistently
on
the
stock
stocks.
average
In
yield
of representative corporate bonds
was
on
higher than the
all listed stocks
average
yield
in every year
but two.
Take
of
all
1929.
listed
The
average
stocks
on
yield
the
York Stock
3.5%.
Yield
New
Exchange for 1929 was
"Moody's Corporate Bond
Index,"
which
includes
we
"nation of
in
flow of savings caused by
to
go
institutions
that
M.
Pope
Henry T. Ferriss
invest
The
simplest solution of the
problem of shifting a part of the
flow of savings from debt to equ¬
ity securities is the investment of
institutional funds in equities. Let
1936, stock yields aver¬
aged lower than bond yields be¬
of the big demand for stocks
individuals investors, who
take up each type of financial
us
for
They liked stocks because
they counted on reinvested earn¬
institution
ings and growth to provide larger
equity market.
both.
and
the
see
extent
to
,
returns
.Allan
George W. Bovenizer
mainly in bonds and mortgages.
Before
market
the
the fact that $13 billion of savings
of listed common
something over 5.5%.
chief
Funds
do a lot better than attracting
$600 million of savings per annum
if they are to correct the distortion
yield
the
Mutual
to
yields over the last two
years or so, and the decline
in
stock yields, the average at the
present time is 3.2% for "Moody's
Corporate Bond Index," and the
average
stocks is
of
which
and
they
Life
can
will enter the
or
insurance
companies
H. J. Lamm Co to Admit
Wood, Walker Admits
On Dec. 23, H. J. Lamm & Co.*
Wall
Street, New York City, members 29 Broadway, New York City*
of the New York Stock Exchange, members of the New York Stock
will admit John R. Atterbury and Exchange, will admit George E.
David A Murray to partnership Mendum to partnership. Mr. Menon Jan. 1. Mr. Atterbury is indus¬
dum will acquire a membership
trial analyst for the firm.
in the Stock Exchange on Dec. 23-
Wood,
Walker & Co.,
63
re¬
ceive something over $41/2 billion
of the nation's savings each
year.
and the limited individual demand
They are the chief channel for
equity yields savings in the country today. In
to rise. This is the more striking a recession, life insurance com¬
because
corporations
formerly panies account for even a larger
paid out around 70% of their share of the nation's savings than
earnings as dividends, and today in prosperity, since insurance is
they are paying out only about so deeply ingrained in the habits
50%. Retained earnings are rela¬ of the average American family
tively larger now than they were that many a family considers the
in the past, yet they are reflected payment of its life insurance
pre¬
far less in stock prices than in the miums as second in
priority only
past because of the contraction to the payment of income tax, if
in the market for equities.
that. The savings that are collected
for stocks has caused
HAsON,1HagAN
-Established
Members
Richmond
1929
Stock
Exchange
•
by
of
the
the institutionalization
by
savings
could
be
corrected
in
three ways.
part in bonds, instead of concen¬
trating their purchases on bonds
almost exclusively,
which is the case today.
distortions
The
life
be
could
cor¬
laws
of
insurance
38
building
more
freely;
and
if
sustained at a very
the supply of
bonds and mortgages could catch
up with the institutional demand,
and
is
level.
bond
Then
yields
institutions
cause
rise
would
would
be¬
not
de¬
yields by their active bid¬
ding. An expansion of debt
financing sufficient to keep pace
fully with the institutionalization
press
of
savings would
narrow
the dif¬
ferential between stocks and bond
yields.
—
OF
Municipal Securities
1110 E.
part
life
of
portfolios
being
one
a
ST., RICHMOND 10, VA.
Telephone 2-2841
allowed
to
buy
1951.
before
constituted
MAIN
Yet
negligible
insurance
company
Established May 20, 1093
until
1951, the reason
peculiar to the life in¬
surance
field. Most larger com¬
panies want to do business in New
substantial
as
of
it must be in
so
compliance
New
York
with
State.
So
Members
the
long
TSfew York Stock
New York did not allow its life
Exchange
New York
Richmond Stock Exchange
CurbExchange (Associate)
insurance companies to buy com¬
equities, larger companies
incorporated in other states re¬
mon
frained from
Last
mon
Walter 8.
Thomas
N.
R.
doing
so
in the main.
Fitzgerald
Eldrldge
Robertson
D.
Neal
James
H.
Bcott
L, Thornton Fiends*
Joseph J. Muldowney
Longest
New
York, for the
first time since 1906, allowed life
insurance companies to buy com¬
year
Buford Ecott
Marlon
stocks.
They could buy pre¬
stocks, under certain re¬
strictions, for a number of years,
a
right of which they took only
ferred
115 Mutual
Richmond, Virginia
Building
Teletype RH 190
Private Wire to
Telephones 2-7234 and L. D. 3
Clark, Dodge A Company, New York City
limited advantage. Life insurance
A third correction would be the
revival of
an
adequate market for
companies in New York can now
invest up to 3% of assets, or onethird of surplus, whichever is less,
stocks among individual investors.
The
Consumer
Finance
Survey
in
sponsored by the Federal Reserve
surance
System, whose findings
in
found
states
equities
law
high
Equity and Bond Financing
Teletype—RH 460
companies
stocks
common
York, but to do
issues
DISTRIBUTORS
AND
most
the second place, if
corporations would finance with
in
rected,
UNDERWRITERS
Companies
and mortgages
Yield
insurance
Philadelphia-Baltimore Stock Exchange
Stock Investments By Insurance
First, it could be corrected if in¬
stitutions would buy equities in
volume, so that they would place
a part of the
huge volume of sav¬
ings they receive in equities and
t.
life
companies are
stable, as well as the
largest, segment of the total.
This distortion of yield relations
caused
bond
relatively
bonds.
a
solution. But mutual funds have
a
than double the
more
bonds. And after the rise
appreciation in the
mortgages, less savings are left future. Since 1936, institutional
for the purchase of stocks. This is
buyers have depressed bond yields
all the
bankers
them, but
Maybe the mutual fund will be
stocks
bond
from
Investment
yet to develop
on
yield of listed
was
on
cause
them.
have
stocks
the yield on
1936, the yield
held
bonds.
yield
1930-31
stockholders" in this country?
Since
has
1931-32
they give for not buying
is that they don't know
have sought to tell
yields averaged higher
yields in 15 out of 17
stock
provided
Secondly, the demand for equi¬
ties
that 1929
bond
1934
tions and savings bonds. The chief
that
years.
$2 bil¬
some
in
equities
You say
But
lion. In other words, almost 90%
of
individual liquid
savings
of
5.2%
averaged
year.
$13
security
mortgage purchases
and BAA
triple A, double A, A,
ratings,
con¬
savings. By
individuals will
new
Equities
the
"Federal
are
to be
common
stocks.
And
life
in¬
companies incorporated in
other states that want to do busi-
Continued
Reserve
on
page
86
Municipal Bonds and Corporate
VIRGINIA-WEST VIRGINIA
Securities
NORTH and SOUTH CAROLINA
MUNICIPAL BONDS
Local Industrial & Utility Stocks
Trading Markets
F. W.-
Retail Distribution
CRAIGIE & CO.
DEALERS IN
STATE
616
EAST MAIN
Telephone 3-9137
and
STRADER, TAYLOR & CO., INC.
MUNICIPAL BONDS
STREET
-
RICHMOND 15, VIRGINIA
Teletype RH 83 A
84
LYNCHBURG, VIRGINIA ID 39 TWXLY77
86
(2410)
The Commercial and Financial Chronicle
Continued
jrom
85
page
Thursday, December 18,1952
...
equities is to be expanded to
for
potential. There is the job
j
its full
IBA PAST PRESIDENTS
1929
-
The Institutional
1926 -27
1927 -28
30
institutions
these
safely
equities
to
that
this
subject
restriction.
same
now
Under
are
restriction,
life
insurance
companies
incorporated
York
the
have
Equities
their assets. For the first
on
invest
to
year
to
up
5%
buy
other states that
substantia]
New
York
about
3% of assets
equities and yet be
common
in
can
now
compliance
State
the
law
with
buy
can
amount,
same
the
New
York
invest
can
stocks,
change in the New York insurance
Pliny
Henry R. Hayes
million
law creates
At
Jewell
about
potential market for
a
$1.2
billion
stocks among
of
common
life insurance
com-
the
$6*00
in
common
moment
they
although
first
ment
$360
for
alone.
al-
not
are
Banks
Are insurance companies taking
full advantage of that right? By
the
Exchange, will retire from
partnership in Joseph McManus &
Weekly Firm Changes
and
Co. Dec. 31.
large,
the
is
answer
In-
no
surance
company purchases have
been modest to date for two rea-
amendment
of
On
Exchange
J. George R. Graham will with¬
draw from
&
Robert
partnership in James
E.
Dec.
the
23
Exchange will
consider transfer of the Exchange
V.
may
Nehrbas, member of
purchases
in Parrish &
want
field &
Rodman &
over
For
Bennett
Co.
Delafield
Thomas
31.
Dec.
on
T. Hamil
31.
G.
Cassady will with¬
Farwell, Chapman &
draw from
Co. Dec.
Dec.
J.
Gildea,
member
low
was
the
firm,
will become
a
limited
as
when
Secondly,
surance
it
and
suitable,
dealers
able
about
at
They
hold
mortgages
are
of
that
more
so long as they are availacceptable yields of over
institutional
BONDS
and
not
as
matter
a
attitude
This
For insurance
i or insurance
to
COCA
COLA
COMMON
BOUGHT
COMPANY
est
SOLD
of
group
the
25%
of
This
one
in
deposits, has
intercorporate dividend
7.8% tax, yield over 5% after tax.
If the mutual savings bank buys
that
could
investment
larger
today than
of
are
*ar as re*ative advantage of dividends and capital gains is con-
funds
market
for
of
the
any
institutions,
much
the
al-
cerned.
■
■
""
Investment
Of
Policy
Problems
Institutions
,
'
.
wfo''ue?u*n.es Ts
®
H
ls
small
the
-nrp
but
to
it
ls
stni
stlU relatively
growing and it j
mn)in„.b
tn
s
of help *°. evolve e?uity invest-
ment
policies, for this type of in-
-S
n£W/°r 'a®1"' not 'r'S
At» for
is
stage, their chief need
secUritv
analysis
±
For
f
the
,
,
most
.
continue to glow.
part, they will buy standard issues,
Secondly, there are two jobs to and they have talent for the
be done if the institutional market analytical job. Rather, they need
ply of bonds and mortgages likely
be inadequate? When there is
to
a
business
reduce
a
Clement A. Evans & Company
available
incorporated
First
National Bank
ATLANTA
3,
basis
Building
Tel.
KIDDER,
Main
t92l
&
Macon
PEABODY
Be
CO..
a
are
attractive
more
the
top of a boom,
you can usually get bonds
mortgages in volume at high¬
yields.
L.
D.
,
Ham
'C°CK
savannah
NEW
^ST-Oc.
384
Savings
Columbus
PRIVATE WIRE TO
at
and
er
Augusta
will
stocks
common
on
than
which
financing. And during
when
GEORGIA
Bell teletype at 596
recession,
new
recession
loan
and
associations
°*O S
not good prospects for
equity
investment. First they don't have
are
YORK
right to buy equities now.
Secondly, they have so large a
percentage of their assets invested
in
1894
risk
if
they
are
ment
STATE AND MUNICIPAL BONDS
likely to favor
securities.
change
a
It
in
picture, specifically
traction
CORPORATE BONDS
and
to
in
govern¬
would
the
a
building,
major
for
-BONDS
take
economic
INVESTMENT TRUSTS
con¬
savings
loan associations to seek
OVER-THE-COUNTER DEALER
and
get the authority to buy equities
in
LOCAL STOCKS
Co.
assets, that is, mortgages,
they buy anything else
that
quite
&
ATL-ANTA 'LO"VG
"oy
the
ESTABLISHED
the future.
Commercial
banks
are
not
a
logical prospect for equity invest¬
ment.
Their liabilities
mainly
deposits; hence they want
stability of
demand
are
the safety and market
GEORGIA
debt
obligations. If the ratio of
capital to deposits was much high¬
er, the situation could be different.
4
The
i But
Robinson-Humphrey Company,Inc.
i
.with
average
ratio
For Over
Twenty Years
Specialists in Southern Securities
of
capital to liabilities of about 7%
equities do not fit their picture.
Mutual
RHODES
an
HAVERTY
BLDG.
ATLANTA
1,
GEORGIA
Savings Banks and Stocks
Mutual
different
Teletypes—AT 288 and AT 142
Long Distance 421 and 422
savings banks present
story.
Mutual
der
2i/2% dividends, and are
pressure to
earn
higher
un¬
re-
&
Hirshberg, Inc.
Southern Municipals
Corporate Stocks
Mutual
savings
banks. Their average is about 11%.
Most mutual savings banks now
pay
Norris
a
banks have a higher ratio of sur¬
plus to deposits than commercial
I
,
The
small-
^ncluskms-^ t0 ^ f0l~
,
when
dif-
individual
exceed 12% of
relative size,
]0vvine
irrational,
stocks
have
from
Institutions require a great deal
rorrmanies will na/e
companies will have
common
to
up
classes*
in
of choice.
not
serves
to pay an
are gaining
billion, -two
year. They are
a
a
though they
supply of bonds and mortgages is
inadequate And when is the sup-
STOCK
-
buy
is
a
the
mutual
other
insurance companies prefer to buy
common stocks when
they have to,
STOCKS
on
thing, they are
capital gains as
a
rule, than in dividend income.
Thus,
a
mutual
savings
bank
which is subject to Federal income
tax, because its surplus and re-
one
equities.
them
equities
they cannot get bonds and
mortgages on that basis will they
buy common stocks eagerly. These
BONDS
For
less interested
They
of
put
into
The
when
CORPORATE
buyers
interests
buyers.
attractive
a net yield of less than 2% after
the 52% tax. A high grade utility
stock yielding 5.5% would, after
constitute
3% net return after expense. Only
MUNICIPAL
more
basis,
largest institu-. a low yielding stock for capital
tional market for equities for the gains, on the
realized
gain ,it
near term, although not necessar- would have to pay a 26% tax. Its
ily for the long term, outside mu- position is thus exactly the optual funds.
posite of that of individuals, so
en-
purchase
and
tractive. A good mortgage giving
4% after servicing cost would give
rate
make
bonds
administered
pension
Murray outlined the pic-
likely to
in-
not
are
the
stocks.
common
distributors
was
number of the
a
companies
thusiastic
partner.
as
the
Then
easier
become
week.
last
gain
bonds
underwriters
well
at
conditions
tax of 7.8% on dividends received,
This makes equities extremely at-
hundred million
high-
On» Jan.
31.
1, Peter C.
Wright-Clark, General Partner in
of
over the years, they
bought when the market
major
market
be
inde-
pendently
ture
fifth
institutions,
funds. Dr.
and down
up
will have
the
investing
diversify also when they
that, as the market goes
so
Co. Dec.
Boylan will retire
from Gilchrist, Bliss & Co. Dec. 31.
to
buy,
partnership in Ross, Blanchard &
A.
Thomas
Reidy will retire from
Linn, Dec. 31.
Edmund B. Ross will retire from
31.
Thomas
Co. Dec. 31.
They not only want to
diversify what they buy; they
will
will be available in
volume, while
equities
appear
ferent
insurance
time."
H. Allen Wardle, member of the
Exchange, will retire from Dela-
the Exchange, and Shirley P. Aus¬
tin will retire from partnership
"diversified
institutional
This
business
long-term
this authority
their
0f this
smaller
the
Mutual
sons.
10
long time
maybe indefinitely,
favorable.
jess
savings banks, like life
companies, will utilize
gradually. Wanting
membership of Albert Brumley
changes:
First, insurance companies lean a higher rate of return, however,
to Perry Kahn.
Warren Ackerman, member of
towards the dollar-averaging prin- a number of
James W. Brooks, member of
savings banks are
the
Exchange will retire from
in buying equities.
the Exchange, will withdraw from ciple
They buying or planning to buy equities
partnership in Ackerman & Com¬
don't want to buy at any one price
without waiting for a shortage of
partnership in D. T. Moore & Co.
pany, Dec. 31.
level. As they put it, they want bonds and mortgages to
Dec. 31.
develop.
The New York Stock
has announced the following firm
a
mortgages
law to allow mutual savings banks
to invest in stocks of larger banks
also.
—
favors
and
equities.
when
in banks stocks,
Superintendent of
the
the
argument can be made
concentrating on the develop-
the
panies.
New York Stock Exch.
for
invest
to
lowed
of
strong
a
in
over
stocks
to
reason
savings
people will continue
to'come
million
everv
the
that
^ institutionalized for
,State savings banks
over
institutions, after
is
thprp
believe
commons.
therefore, for
history; and
in
time
in
good
vantage.
^
in
with
and
these
of
of
right to
buy ap- : their assets, or one-half of their
proximately $600 million of com- surplus,
whichever
is less, in
mon
stocks. Companies incorpoequities. They can invest up to
rated
in |
invest
they get that authority, that they
can •
invest
in
equities
to
ad-
time, they have receive authority
from the New York Legislature
this
New
in
turns
to
long-term results; and a job has|
to be done to convince manage¬
ments
in New York
ness
of!
tory authorities on the ability
Market ior
Trowbridge Callaway
regula¬
of selling legistatures and
C
&
Fund
S Natl. Bank Bldg.
Teletype AT 579
UNDERWRITERS
& Bonds
Shares
•
Atlanta 3, Georgia
Telephone WAlnut 2788
DEALERS
DISTRIBUTORS
.Volume 176
if-
Number 5178
The Commercial and Financial Chronicle
...
87
(2411)
'
!■
a
long-term philosophy for equity
investment
adapted to their spe¬
cial requirements and
objectives,
s
Trustees
and
the
fearful
are
criticism
will
give rise.
that
can
ties:
There
dollar
equi¬
on
averaging,
they
devices
are
minimize losses
plans, and
losses
of
which
to
formula
built up out of
reserves
income. Thus, a savings bank that
buys a good stock on a 5% yield
basis and puts 1% into a reserve
will have, after 20
years, a reserve
equal to 20% of cost and yet real¬
ize 4%
after
if the divi¬
reserve,
dend
is
serve
has been accumulated to the
sustained.
When
the
rer *
cannot count
we
homes
being
on
million
a
started
new
every
Continued
from
8
page
ingly
numerous
groups
of the
population demand that their
year,
since the net increase in the
num¬
ber
families
of
in
this
country
creases
of
homes
by
million,
a
later
or
will
we
.into
run
old
an
fashioned
over-building cycle.
Secondly, virtually all home mort¬
gages today are instalment mort¬
gages, so that a large volume of
loans must be made each year
new
just to replace amortization
ments received
pay¬
old mortgages.
on
Developments
Western Europe
In
by 500,000 and the number
sooner
If
.
.
policy of this kind
is at present excluded by the fear
of
any increase, however small,
in
the
level
of
unemployment.
There is
the danger that un-
even
scribed but is caused by shifts in
value
gage supply.
demands away
cost,
after
re¬
In that case,
Institutions
:
prefer' riskless in¬
They would buy gov¬
vestments.
ernment
sively,
if
the
securities
almost
exclu¬
they did during the war,
yield were high enough.
as
""
Actually, there are two ways of
making a virtually riskless in¬
vestment.
One
is
way
to
buy
come
cluding
be
reserve
is
adequate, it will absorb
whatever loss may be
incurred.;;
j Financial institutions
forced
to ;take
" may
be
interest 'fin
an
earlier
more
oquity
investment
date if
building activity declines.
at
A major reason
why they have not
suffered
from
a
shortage
of
vestment since the end of the
has
the
been
the
huge
in¬
war
increase
in
mortgage supply. The future
outlook
for
is clouded
the
mortgage supply
for two
reasons.
First,
equities.
They
active in
more
then
may
seeking further
of
restrictions
on
equity investment.
in
voked
the
is
not
pro-
just
manner
de-
from certain prodrecently lor example textiles, may be treated by the govucts,
as
ernment
as
subsidies
or
relief
for
giving
other special forms of
reason
a
amounted to 30%; since then the
rate of increase has substantially
talien. As yet, however, it is too
early to say whether the current
™n of price stability of some nine
months duration is more than an-
other breathing
61
F.
Hutton
Broadway,
&
members of the New York Stock
Exchange,
Matthew
Jan.
on
1
will
admit
A.
Anderson, J. Ray¬
mond Stuart, Gordon B. Crary, Jr.
of. Los Angeles, Douglas B. Lewis
f
William
and
D.
Kilduff
of "San
political climate—towards
what
inevitably
namely
Mr.
Maurice
Sum¬
York
a
member
Stock
been active
as
an
of
Exchange,
jobs;
willingness to accept, say,
of
unemployed to the
working Population of 3 or 4 or
even 5%, rathei
than the ratio of
1
and
far
so
2%
that has prethe war.
since
problem
To
no
Breathing Space
sum
there
up,
to
this
extremes
c^the^^^
goHes
nor
^objSive
arouns
not
seekina auarantees
are
as
permanent
over
and
solution
applied
the
a
field
private
whole
public
debt
it
of
would
sent another long
yet
as
im-
recent
i^?ri„ta^'s«P_0sit.10n^s
than
more
breathing
space,
mounting of
crisis,
one
one
minimum
in
to
accept in a
been gaining
has
many
raises
countries
its
process
ground
which
and
problems:
own
,
Process
real
tihually
keepS
rising
at
wRh
pace
productivity
which
increase
illustrated
^™ted
olace
thesnread
wide areas 01
to the
over
im¬
the freedom of action of the
etary authorities.
has
severelv
could hot)e
mon-
In particular, it
limifpd
what
thpv
accomnlish bv
L
mon-
IZy expansionTsamconsoTredUci'ng unemployment;
difficult
to
and it is
their stand
dispute
ternative
bilitv
between
and
increased
_a7between
the al-
financial
A
second
problem,
major
which
their
critics
have accused them of choosing the
former in preference to the latter
_is
a* genuine one. In the
place, it appears that the
not
second
.
rising rates of reai wages claimed
by organized labor have absorbed
the fruits of the increased produc-
tivity due to the additional capital
investment
years,
so;
of
that
the
this
last
an
Continued
on
page
U. S. Government Securities
and
essen¬
tial element in Britain's power to
CORPORATE SECURITIES
Municipal Bonds
in foreign markets, is
financing sufficient new
capital investment in British in¬
compete
that
of
dustry to allow it to exploit tech¬
nical
discoveries
in
ments
and
methods,
and
improve¬
thus to
Bond Department
increase productivity. As a result
of the various effects of taxation
the volume and forms of
on
LEEDY, WHEELER 6- ALLEMAN
Incorporated
FLORIDA
BANK
BUILDING
The shrinkage of the market fo*-
capital
ORLANDO, FLORIDA
BELL
issues—due
experiences
TELETYPE
OR
10
LONG
DISTANCE
27
to
a
taxation,
either
past
of
the
of
for credit from the
inflationary
to
Distributors
Dealers
inflation,
increased
such has been
remain
point
FLORIDA MUNICIPALS
of
the
tor.
Inquiries Invited
on
than
But
private
additional
France
from
rather
E
Jacksonville, Florida
Phone 6-5611
Teletype JK 182
the
from
DISTRIBUTORS
DEALERS
the
Florida Bonds
bank
private
sector
public sec¬
the
UNDERWRITERS
are
predomi¬
came
borrowers
are
government,
to
L
MUNICIPAL
COUNTY
DISTRICTS
although the demands of
fuse than
seems
L
ot
taken
Over
are
tradition¬
ally supposed to be easier to
Local Securities
1
illustra¬
An
may
postwar period,
for
in
nantly
Florida Corporate Issues and
source
be
experience.
French
much
credit
V
N
or
and is likely
unless the credit
so,
this
demands
BANIC
S
pressure,
from
CORPORATE BONDS & STOCKS
K.
banks, and as
serious
a
appropriately strict.
of
C
A
demands
policies of the Central Banks
tion
1
to both—is indeed
or
problem in most Euro¬
countries.
It is one of th®
causes
NAT IO
OF
th*
to
major
pean
Underwriters
sav¬
ing, industry is having increasing
difficulty in obtaining new capi¬
tal, and especially risk capital.
for
have
Firm Bids
—
Firm Offerings
—
Quotations
re¬
the demands of the
the Bank
some
time
attempted,
of
France
consciously
through
its
UNLISTED CORPORATE ISSUES
ALL
LOCAL
SECURITIES
discount
Florida S<ecurities Company
Not
Members
Incorporated
Philadelphia-Baltimore
Stock
policy, to compensate for
insufficiency of genuine sav¬
ings available for investment in
the
industry by additional bankreredit.
The fact that the French economy
Exchange
caught in a rapid pricespiral made the inflation
became
601
FLORIDA
NATIONAL
BANK
BUILDING
wage
ST. PETERSBURG
TELEPHONE:
7-5131
L
D-32
1, FLORIDA
TELETYPE:
politically
ST
PBG
89
once
the
it
very
had
postwar
difficult
started,
to stop
and during
period—as
at
other
times in French history—inflation
few
investment,
Dealers in
the
solution of which is also
sta-
emnlovment
ports.
MUNICIPAL BONDS
col
^aUy re^
sur¬
the expense of running down in¬
ventories as a result of more strin¬
in
outruns it
more
more
controls
the
con-
which
be
^
T;
mcreas-
balance of pay¬
achieved partly at
physical
the
or even
In
+J,
rate
a
Thls P°lnt
i"alv
wages
that are
wages
.
.
under
also
was
a
ments
gent
which
repre-
step-together
with the sliding scale of
which M. Pinay
^al
merely of stable
Sht S
by M. that, in the circumstances,
Pinay-a loan of which the redemption value is tied to the market price of gold-may seem satisfactory for the time being. But
obliged
seems
the
that
assurance
France,
in
elsewhere is that of offering
sufficient inducements to invest
in long-term securities (whether
government or private) to
«.publie that has lost confidence in its
Local currency as a store of value,
as
wages
A
expressed, for example, in the
stopping of the drain on her gold
and foreign exchange reserves, is
1924
crucial
^Sher unem- The recent solution adopted
a
individual floor
broker.
ESTABLISHED
including
with it,
ratio
a
the
has
one
ployment level, due to the larger
numbers of people that will at
any moment be moving between
partnership in the firm.
Summers,
New
F.
change
a
goes
somewhat
a
vailed
and
than
ciple of labor mobility
of
to
less
which is willing to accept the prin-
between
Dallas,
difficulty
nothing
Francisco, Willard R. Wigley, Jr.
mers
Carried
'
stability which preceded the outbreak of the Korean War.
in
Company,
York City,
New
similar to
space,
keeping the labor there instead of
■encouraging its release and move-
is
To Admit Partners
E.
lo
Vear or more of relative price
industries
to overcome this kind of
E. F. Hulfon & Co.
the
thus
these
to
anything
BUSINESS
which
During
per annum.
months between June, 1950, and
December 1951
the increase
A
a
When the
reserve.
accustomed fields, in¬
liberalization
ting part of the added income they
a
for investments
eager
outside the
United States government securi¬
ty. The other is to buy risk invest¬
ments, including equities, and put¬
provide into
more
institutions will be¬
ber.
problems. There has been a con- ?eTLcome-an
which
tinuous increase in the money sup
would seem to be unattainable,
Ply* since the war at rates which especially when we consider the
nave varied between 15 and over added complication that some la¬
.
A deliberate
by little net increase in the mort¬
of
or, more com¬
2*"
20% maximum, the yield becomes,
not 5%, but 5% on the net
book
80%
gold
as
monly, the basket of goods under¬
lying a cost-of-living index num¬
has overshadowed other economic
employment
of
terms, such
price level until employment be-
dwelling starts should drop to
500,000-600,000 a year, there may
serve, or 63/4%.
titles, whether to property or to
income, should be fixed in "real"
Recent Inflation
this year will be closer to 500,000.
If
the
number
of
families
in¬
Pierce-Carrison Corporation
Barnett National Bank
JACKSONVILLE 1,
Long Distance 47; 3-8621
Building
FLORIDA
Bell Teletype JK 181
88
68
The Commercial and Financial Chronicle
(2412)
reconstituted
Continued from page 87
increase
Recent Inflation
Developments
In Western Europe
which
this respect is the reverse
crease
of the United
it was hoped would de¬
unemployment, has instead
gone into raising the standard of
living of those already employed.
For
Italy the statistics show,
somewhat surprisingly perhaps, a
rate of increase in the money sup¬
ply which is
the highest in
The situation in
among
Western Europe.
level
JAMES
inflation which oc¬
curred in Italy between 1938 and
1947 had
raised the velocity of
circulation of money abnormally
marked open
since
has
1947
of
IBA PAST PRESIDENTS
price
a
been
1925-28
1922 -23
we
that,
succeeded
perhaps
may
while
she has
than
better
con¬
far
other
so
any
Western European country except
Switzerland
tion,
in
controlling infla¬
attempted the
has
and
not
high. Following the stabilization
hopeless task of trying to overcome
of
1947, it has gradually fallen a
capital shortage by an inflation¬
again—in other words people have
ary expansion of bank credit, she
JOHN
RODDY
E.
Italy
clude
problems
J.
ZOLLINGER, JR.
which
aggravated
live
SCHARFF
accompanied
which
Of
very
has
D.
volume
Italy Living Beyond Her Means
or
IKE
substan¬
very
the
among the most stable in Western
Europe.
of that
The
Kingdom.
has
money
a
in
Thursday, December 18,195J
cash
normal
more
balances—so that
tial
...
by
beyond her
sense,
i.e.,
levels
in
attempt
industry
real
wage
which
are
higher than the country can
ford, except at the cost of the
Active
employment of
Trading Markets
to
in another
means
achieve
to
created
are
an
af¬
Ray Morris
John A. Prescott
un¬
high percentage
a
of the labor force.
tn
In
Sweden, which, next to Nor¬
is the country where the
way,
LOUISIANA AND MISSISSIPPI
thorities
have
the
wedded
to
interest
BANK STOCKS AND
been
rates,
most
principle
of
which
and
au¬
firmly
Erwin
E. N.
Anagnosti
Vincent B. D'Antoni
George J. Bourg
along
with France
was the country with
highest degree of price-infla¬
tion after Korea, the annual in¬
LOCAL CORPORATE ISSUES
R. Schweickhardt
low
Underwriters
Distributors
—
Dealers
—
the
reached
which
SchmTT L Jones
INCORPORATED
TELETYPE
NO
180 &
CARONDELET
219
181
D.
Tulane
ORLEANS
1952
the
slowed
rate
down
0161
level
again it is not yet
to
necessary
trol
the
over
tight
money
in the
we
interlude
are
took
porarily
the
open market
Firm
their
Offerings
Public
Southdown Sugars,
Standard Fruit &
Service
Co.
Common)
Inc.
Steamship Co.
(Preferred and Common)
or
kind
end
of
SCHWEICKHARDT & COMPAHY
tem¬
policy
of
MEMBERS
NEW
ORLEANS
STOCK EXCHANGE
f.y
NEW ORLEANS
Germany,
it was
in the spring of
year, somewhat to relax the
l>
Teletypa NO 344
12, LA.
Tulane 6461
&
Tulane
8812
stiffer credit conditions introduced
measures
taken
in late 1950 and early 1951; it was
possible to do this while keeping
Quotations
prices
Municipals
level, and while
on an even
regaining
European
Market
Orleans
possible,
by the series of
General
the
the
Co.
purchases of securi¬
Western
found
Dealers
of
Trust
just
ties.
Bids
this
Firm
run,
&
(Preferred and
new
long
at
New
Stocks
con¬
of
Bank
326 HIBERNIA BUILDING
In
Distributors
the
authorities
relaxed
Canal
New Orleans Bank
will
witnessing
place
when
1950,
Underwriters
keep
creation
inquiries in:
Corp.
Mississippi Shipping Co.
cer¬
authorities
Isle
Belle
(in liquidation)
allow interest rates to rise to the
which
•
has
Mississippi Municipals
considerably.
whether
another
Securities
in
here
JACKSON, MISS.
Government
war;
tain
the
especially invite
your
any
increase
of
very
whether
States
the
We
Louisiana and
1951
for
235
12
S1IREVEPORT, LA.
Unitedl
money
in
than
since
year
of
(20%)
higher
was
previous
volume
rate
a
But
L.
ST.
(Ground Floor)
NEW
the
in
crease
surplus position in the
a
Payments
Union.
The
budget
deficit
is,
however,
at
present very small, and what will
happen in the future depends on
the
at which rearmament is
pace
set
going and on whether some¬
thing can be done to revive the
market
In teT Mmmi
OF
a
8-5193
LD-311
•
building
form
MEMPHIS
of
fair
•
LD-312
TELETYPES ME-283
capital
issues.
Al¬
the beginnings of
are
of savings in the
deposits, and this
up
bank
process has enabled credit expan¬
sion to take place
recently on a
MEMPHIS 1, TENNESSEE
TELEPHONES
for
though there
•
scale
without
inflationary
ME-284
consequences,
there- is
as
yet
little sign of a willingness on the
WIRE SYSTEM—THE BANK WIRE
part of the public to invest in the
long-term
securities
■;
Finally,
we
in
some
cases,
ticularly
PiilM BIDS AND
•
the
t
.
,
5H
!
.
.
.
•
ures
par¬
of
Belgium, the
stability has been
to
FIRM
show
Belgium, the fig¬
relatively heavy price
a
BIDS
AND
OFFERINGS
the
Belgian authorities'
reputation for tight control. The
inflationary pressure came from
the financing by the Central Bank
(through the purchase of gold and
United States Government
foreign exchange reserves or the
granting of credits) of the surplus
in Belgium's balance of payments
Securities
with the members of the
Payments
cially
the
Union Planters National Bank
BELL TELETYPE—ME
—
THE BANK WIRE
year,
give
on
foreign
part
of
the
was
export surplus
on
of
to
Department
FIRST NATIONAL BANK I
IN
DALLAS
the
passing-
against
to the Treasury
reduce the
Telephone ST-4411
The Bank W ire
to
the
and part of it on to the exporters
In addition the gov¬
tried
Bond
CREDIT ANALYSES
Bank
on
themselves.
ernment
MARKET APPRAISALS
willing to
account,
lending
espe¬
half
National
placing limits
amount of credit it
99
situation
1951,
second
and the
by
r."
European
The
during the
reacted
Memphis 1, Tennessee
LONG DISTANCE 218
Union.
became very acute in
Bond Department
TEUS MUNICIPAL B0N0N
despite
Municipal*
WIRE SYSTEM
f
rise "in the post-K orean
period,
and Arkansas
!
that
is
danger of importing inflation
i
Mississippi—Tennessee
I:
this
from abroad. In
•
;
and
true
main threat
OFFERINGS
market.
should notice
sur¬
plus by encouraging imports from,
Principal Markets
Teletype DL
-
94
,
k
Volume 176
Number 5178
.
.
.
The Commercial and Financial Chronicle
(2413)
and
placing
restrictions
on,
ex¬
ports to the countries of the Eu¬
ropean
In
Payments Union.
this
brief
commented
features
on
in
account
some
the
have
we
of the salient
varied
economic
pictures presented by different
Western European countries. It is
true
that
the
past
nine
or
ten
can
high enough interest rates to
public
subscription
to
their securities. The inflationary
danger coming from large ex¬
port surpluses of individual coun¬
ments
years,
sure
that
to
come
and
we
cannot yet be
this time stability has
stay, and that the danger
towards the
Union
moment
The
to
been
have
of
whole,
able development is the reversion
figures show
to the
an
of the methods of ortho¬
dox monetary policy for
ing
had
inflation
combat¬
countries
previously
On the other
are
in
discarded
which
them.
in
existed
here
a
this
the
for
again
for
Union
many
we
likely to persist
will not
occur
On
Chronicle.
has
the
most
coun¬
than
months.
being written the
market is still churning with
varying groups stepping out,
while other previously strong
groups are retreating.
It's a
smell
But
sure
As this is
strongly of
making.
❖
that
from this side
in the future.
top in the
a
Paradoxically, however, any
advertised top (or for
market,
It
is
is
bottom) in the
a
usually suspect.
probable that the
even
anticipated reaction may not
only be postponed but may
occur from a
higher level.
*
At
*
presented
are
as
Dept. in Chicago
CHICAGO, 111.
Members
New
will
Bache & Co.,
—
York
open
Stock
Ex¬
municipal
Chicago
a
office, 135 South La Salle Street.
Edgar S. Beaumont, formerly with
Braun, Bosworth & Co., has be¬
associated with the firm
come
mitted
stocks
that
aware
nowhere
are
many
Lazard Freres to Admit
the basis of such averages.
should
these
highs again
that a new
buying spurt will be set off
that may take these averages
up another 4 to 5 points.
*
Kimberly will be ad¬
&
Co., ,111
in
Stark¬
Broadway,
City, members of the
York
Jan. 1.
Stock
Mr.
Exchange
on
Kimberly is Manager
of the firm's
trading department.
Reynolds & Go. Will:,
Admit Two Partners
Reynolds & Co., 120 Broadway,
New York City, members of the
Shearson, Hammill Admits New York stock Exchange,
Jan. 1 will admit Walker G. Buck-
CHICAGO,
Hammill
New
Jan.
111. — Shearson,
Co., members of the
&
York
1
will
Stock
Exchange,
ner
admit Walter Tintner
Exchange, to partner¬
ship.
to
partnership. Mr. Tintner will
his
headquarters in
the
firm's Chicago office, 208 South
On Dec. 31 Joshua A. Davis and
make
La
and Robert G. Howard, mem¬
ber of the
on
Emmons Bryant will
Salle Street.
retire from
partnership in the firm.
averages
go through their
it is not unlikely
*
Kimberly
Two New Partners
those
near
highs. But as most market
participants watch the aver¬
ages with anxious eyes and
are
frequently swayed by
them, I assume they act on
Now,
A.
partnership
York
New
this
well
to
weather
New
Lazard Freres &
Co., 44 Wall
Street, New York City, members
*
Oliver A.
as
manager of the department.
writing the custo¬ of the New York Stock Exchange,
on
Jan. 1, will admit Charles J.
mary averages are either close
Stewart and Howard S. Kniffin to
to their recently established
partnership in the firm.
new
highs or just under them.
I'm
Oliver
bond department in their
^
well
that matter
They
Bache Opens New
change,
*
Starkweather Partner
those of the author only.]
pattern that continues to
has
Kimberly to Be
[The views expressed in this
article do not necessarily at any
time coincide with those of the
By WALTER WHYTE;
September
cannot be
hand, budget deficits further disturbances
everywhere
year
desk it looks like
time, nor enough
"right" stocks, are available
at present.
Whyte
Oliver
❖
From my
neither the
Says—
the
closer approach to
balance
Walter
reduced.
Germany.
however,- the
even
tries
been
position
that
of inflation is past. A very favor¬
use
for
*
Markets
European Pay¬
appears
largest and longest sustained
surplus
you in the end, is to have the
right stocks at the right time.
Tomorrow's
induce
tries
war
whether
pay
months have
ever, occurred before in the post¬
and
be financed without in¬
flation depends partly on whether
the
governments are willing to
area, a
been, over the whole
period of approximate price
stability. Such periods have, how¬
increase,
even
or
they
89
*
We retail
Texas Securities
;
.
It would be nice if such
a
rise would be
ed
in
equally reflect¬
medium priced
the
shares
that
long of.
kind
some
And
traders
most
are
But that would be
of
millenium.
a
miracles
and
markets
simply don't mix.
:'f
All
*
this
*
that you'd
prepared for another
burst of buying, accompanied
by volume, and perhaps even
with news that may be con¬
means
better be
*
UeuM.
*
Rcdetfam
Rmarnf
&
"Members New York Stock Exchange
sidered favorable.
—
New York Curb Exchange (Associate)
SAN ANTONIO 5, TEXAS
*
Fannin
7141
Teletype SA 3
Branches:
San
Angelo
-
Corpus Christ!
Yet, despite the possibility
of such an advance, I still
would
them
UNDERWRITERS
••
•
'■
v
DISTRIBUTORS
DEALERS
refrain
this
at
been
from
much
too
"inflation-
protection" buying
v
consider
to
Corporate and Municipal
though
even
Securities
the
the
or
up
to
market
strong position.
points
buying
There's
point.
a
A shake-out,
minor,
market's
say
technical
5
posi¬
tion.
*
*
ACTIVE TRADING MARKETS
now
in
would improve
so,
TEXAS SECURITIES
Longhorn Portland Cement Co.
Johnston Testers, Inc.
Houston Natural Gas, Com. & Pfd.
Garrett Oil Tools, Inc.
Tennessee Gas & Tran. Co.
San Antonio Transit Co.
El Paso Electric Co.
Houston
Lone Star
Public Service of New Mexico
Brewing Co.
Sommers Drug Stores, Com. & Pfd.
Central Power & Light Co., 4% Pfd.
Kirby Lumber Corp.
t'f
Light & Pwr. $4 Pfd.
Duncan Coffee Co., Class A
Slick
Airways, Inc.
River Brand Rice Mills, Inc.
All San Antonio and Houston Bank Stocks
There's considerable belief
in
no
Fridley
First
National
&
Batk
Hess
Building
HOUSTON 2, TEXAS
Bell
Teletype HO 42
Telephone PResfon 8101
some
markets
Texas
are
through until
the steels have been
whirl.
given
a
I don't know what this
belief is based
been
Quick firm Bids On All
technical circles that
shown
on
though I've
"proof" that
has occurred in the past.
whether true
or
it
But
false, the $64
question that will
pay
off for
Municipal Bonds
8c Gompany
Russ
INCORPORATED
OFFICERS
C. L. WEST
W. G.
HOBBS, Jr.
E. D. MUIR
Members Midwest
Stock Exchange
Alamo National Building
OFFICES
HOUSTON
AUSTIN
SAN
ANTONIO
5
FORT WORTH
A. M. RUSS
Direct
and
Connecting Wires to:
Dallas, Houston, Galveston, New York & Los Angeles
90
The Commercial and Financial Chronicle
(2414)
loss.
They have taken it
Securities Salesman's Corner
they
—
holding
on
yet they
—
will often sell out their promising
As
securities where they have a prof¬
it,
By JOHN DCTTON
continue
and
"dogs"
their
to
See It
We
hug
their
bosoms for dear
to
What Is
life.
BUILDING AN INVESTMENT CLIENTELE
(Article
"The
the
the securities business
people
in
entirely for
many
the fact that greater headway has
o
when
not been made toward
of
ment
the
to what constitutes
ment
nite signs that there
unwillingness
curity
buyers
In many
expect
ers
defi¬
is
when
general
a
gains taxes and' some
not give up current divi¬
dends.
are
become
to
with
acquainted
would
the part of
on
capital
invest¬
sound
There
procedure.
cally high levels. Others fear the
enlighten¬
public as
investing
today.
even
hope
They
the
for
best
a
wish
they
it
eat
to
too.
They
say
yet they look
high yields. Some¬
safety
want
other
analysis of the
security in question would have
ness
the
were
was
stocks
times these high returns are
When
temporary
advancing and busi¬
shown
the upgrade, most of
on
ful
they bought advanced
in price. Then
something
along would
that
failed
to
its
thinking
lies ahead.
up
of
trouble
Wen these speculative
would they remind that salesman
of the one that was lagging be¬
cline.
people will hold
hind, and
ing
mention the
place
calculation
stocks
never
the
takes
wish¬
When
weakness.
list, or worse
still, it went down. Only too often
with the rest of their
only
an
—
hard-headed
come
go
pass
divi¬
reduce their
or
dends, the price of the shares de¬
many
"good buys", which he brought to
a
their attention.
at
Yet,
that
many
they
which
on
of these same
for years, hop¬
someday
may
see
of the stock to levels
recovery
they
bought it. Such
Some
Planning
wish
believe
to
that
this
will be different. Of
never
different.
In
the "New Era"
was
time
1929
a
table
there
of
1937,
and
50%
or more.
the
age
a
stocks
many
that
sharply
There
was
government
false illusion;
10 years we
a
in
a
money
that
putting
race
well
a
they
five
horse. Lunch
advice
meaning friend is only
they
commitment in securities.
in
price
as
soon
they
other
as
the
for
turn
better
is
often
too
Letters
completely
rarely
are
of
Again, it is
well
a
recognized
was
they
clearly justified by
a
worse
a
management
income
cult in
a
the waste basket.
company.
while
whether
that
per¬
goes
lower and
lower.
All
the
they hold to the foolish idea
they do not wish to take a
enter
Not
to
the
pens
This
About the only
like
seem
in
the
broader
there
-
there
that
build
to
..solidly,
.
.
jtj-xu-
£onefusion
to what the nation
as
investor
client
as
in
to
Many
studied
losses
and
ana-
investor
eliminated
success
your
what
are
you
of
causes
be
ean
for
are
if
;
the;*
clearly de-^
customers knows*
both
trying
to
do
It is
not enough to do
be
—
but
educated
right by v
"Little
into
Nell"*
the
rights
foregoingii
second
coukkirk (the--.nature of the
foreign goods
New
York
Cotton
Exchange
—
C. P.
Stock
Street
Montgomery
Produce
Teletype NY
long
so
San
Francisco
Wires
to
Santa
Sacramento^—
admit
treaties
New
invalid for
of
reason
Deal
origin
are
often
that these arrangements did little
about the administrative aspects of the
or
case^
Still other
vitaf aspects of this situation remain. It isj
not only in this country that these countries need
foreign*
markets, and it is riot always and not altogether tariff or-
J. Bautii
V
'
£
Members
. ¥t
Los Angeles Stock
Co.
&
ESTABLISHED 1883 £
£
3
Exchange
Exchange
San Francisco Stock Exchange
New York Curb Exchange ^Associate-
...
*
.
•••"
Underwriters, Distributors and Dealers in Corporate,
.
■
'
•
'«v
«!*
v"
tor*
'
t?"
'
k
Municipal and Unlisted Securities
of Hous-;
&
as
Partner
Co.,
503
Locust
Street,
mem¬
SAN FRANCISCO: 494
Montgomery Street
Telephone DOuglas 2-6400
Teletypes: SF 138
—
Order Dept.
LOS ANGELES: 210 W. 7th Street
Telephone MAdison 6-46S1
Stock Ex¬
SF 230X
NEW
—
Unlisted Sec. Dept.
YORK:
14
Wall
Principal Offices
Fresno
—
Monterey
Santa
—
Oakland
Teletype NY 1-3466
Jr. to limited partnership in
the firm
Rosa
bps
^
on
Jan. 1.
been with
'time.
the
Mr. Wightman
firm for
some
Street
Telephone DIgby 9-3780
change, will admit Orrin S. Wight—
the
nothing
Beaumont,
LOUIS, Mo.—G. H. Walker
bers of the New York
1-5600
Barbara
are;!
partnership in the firm.
Wighiman
man,
—-
these major impediments
as
.
Duson, Jr., William M. Minar
to
ST.
1-928
Street, San Francisco 4, Calif.
Sutter
Private
will
than partially*,
reciprocal trade
G. H. Walker to Admit
Exchange
New York 5, N. Y.
at Market
more
Chicago Board, of Trade
York
COrtlandt 7-4150
of
be
case
Exchange
Commodity Exchange Inc.—Fresno Cotton Exchange
(Associate)
14 Wall
Cordts
2
and Walter M. Sorensen
ton
New
G.
<
and th«T
Claims for the results of the
Moreland, 705 Travis..Street,>
Jan.
The system
purposes
left intact.
To Admit Partners
on
-
very.
iste^d^iifurlher difficulties. No revision of tariff rates;
HOUSTON, Tex.—Rotan, Mosle
and
also
so, are
jdBfec^tv^.mannea^m-jvhich this part of the law is admin-i.
simple
NOTE —The
.
?
barriers to the entry of foreign goods.
knowing;
article in a series, the
first having appeared in our issue of 3
Dec. 4, on page 26. The third article*
tvill be given next tveek.
Ca
*
■But there is much
James W. Lain of Galveston, and
Francisco
—
'
effective:dh reducing the barriers to the importation of1
TOGETHER.
EDITOR'S
Members
San
to replace aid dollars customs,
more in this situation than greets
the- casual-eye.Antiquated and
needlessly complicated!
-
certain^$bi^^«-s«^^s
"why"
the
the
of
Edwin
—
the fact remains and is obvi-T
are to enter our markets and:
Other Factors Involved
■
New York Stock
Exchange (Associate)
own
the sheltered in-4
owes
goods for customs
Exchange,
New York Curb
The American
■
members of the New York, Stock:
Exchange
changes
ajj
the* neSsity''of''enlight^ngn^'- customs procedures, sometimes purposely
Industrial, Public Utility^ Railroad Securities,;
Stock
rather
/
*
will take up cer-
we
Rotan, Mosle Firm
York
earn
m past decades as a
se^rates-must, be reduced.
mscemibk^nthe^S^olioof
Dealers
Schwabacher
/
,
Next week
is
New
•
j.
seiriad-tol% premises, but
iaAhe
the
than
industries and branches which
upon
developed in this country
"een
wards should be well worth while.
Pacific Coast Exchanges
State and Municipal Bonds
permit Europe to
PeoPle themselves must, accordingly, arrive at their
by her..
Underwriters, Brokers and
heavily
aheLe,VrnS1n^hLrvftheW^! provide^earned" dollars
tience
almost
overhauling of the rate structure
to
today^|^^#iaf if foreign products
just what constitutes doing
PACIFIC COAST SECURITIES
An
if we-wish
instances at least where such indicated
are
the"
is better
so
an
more
directly and openly applied, which is the
There,result, of the protection carefully provided.
security salesman, who desiresL. to
tomersawCme] find
diffi-,
given the; dollars they seek and need.' Of course*
,
have
dffliculfie^In'fact° tli^indfviduat
tunity for doing
very
they most of all need to come.'
would bear
.
great deal of truth in viewing"
a
us.
markets—where
rate,
a
than be
situation^
sense,
to
infrequently it is the rate of duty which is
essential
is
harsh
a
seems
by rates of duty make it
for these European peoples to
heart of the matter.
a
may
it
or so
Any
hardly
are
mapy cases
good
a
our
such
into
dividend check hap¬
to be sent to a wrong address.
perchance
must
on
childish,
others like them,
any
insuperable difficulty. Sometimes it is nothing
stockholders is when
many
"Little Nell"
Orders executed
or
time that the company ever hears
from
fined, and
it
diagnoses,
reducing tariffs imposed
the imports of foreign goods.
upon
far
neglected.
thrown
are
The
might even' get the impression that the
Of course, we do
balance sheets and
—
accounts
have
are
turn for the
in the affairs of
these
better than
take
are
sent
we
total of the need is that of
sum
stocks
to
place. Study and research
over
ports to the entry of foreign goods.
our
by this country
own.
fact that many investors refuse to
take losses even when
in stock prices in 1946,
and there is some reason to doubt
be
espe¬
They become
impatient. They finally sell out
just at the time when the real
the
man¬
at
naive observers
refuse
markets.
re¬
study that is given to
Refusal to Take Losses
recession
can
Or
soon.
They will buy
good growth stock that has real
shrinkage in the value They will hold on to a weak situa¬ rules
dollar, yet we had a sharp tion and refuse to sell out even if
prosperity
too
bull
constant
of the
erected
in
and
war
on
will
people
earned
abandon
exercise
search and
During the past
have had
secu¬
a
too often the total amount of
talk then
everything, but that too
many
buy
gossip, the unsound
a
declined
could
hard
the
dollar bet
which turned
broke
all
would
it
it is
managed economy and the
market
their
with
to be
nothing new at all.
During the New Deal thirties we
stock
among
rity. Time and again
invest
out
had
prevalent
investors when they
who
course,
also
are
sions down through the ages, there
investors
removing artificial and arbitrary barriers which
into
develop
the problem in this manner.
Impulsiveness and emotionalism
cycle.
stocks to go up forever, Although
have had booms and reces¬
some;
it
its economic feet. One would
again in this country that the only problem is that of
growth
good
a
watch
on
any¬
seem
the business
people expect the prices of
always
as
long enough. This is
which
is
Snap Jud0—"1"** instead
we
are
to
on
and
out
but
Business Cycle
public also does not
well
as
or care¬
at times from what is being said over and
suppose
Yet, how few people
method of sizing up the
Lack of Understanding of the
The
required to place Europe
invest¬
Required
wise, however, not to be hasty
analyzing the prerequisites of the "trade" that is
promise. Often it will not advance
a
leads to losses.
course
to understand
hold
sell
Many investors want their cake
and
around for the
markets
else.
the
real profitable investment. They
a
of
again I have watched people pur¬
chase one good security after an¬
salesman.
will
stock
Sacrificing Safety for Income
better
fundamentals.
a
business
ment
where
in
reward
own
cially true during the latter stages
se¬
instances security buy¬
too much. Time and
from
its
is
to wait
is high.
hope
lessin
must underlie
that
all successful investment. Patience
Yet
people will not take profits
stock prices are at histori¬
petuated forever,
to that other
come
we
virture
great
Ups and Downs of the Securities Business"
blame
can't
You
And then
1—Part 2)
We should be
of Patience
Lack
Thursday, December 18,1952
Continued from first page
taking it everyday that they
are
continue
...
PRIVATE
WIRE
CONNECTIONS
BETWEEN
ALL
OFFICES
Volume 176
Number 5173
barriers
customs
.
.
The Commercial and Financial Chronicle
.
limit
which
the
countries to these other lands.
ficial
into
markets which limit the exports
countries to
if
States.
United
the
To Assume New Posts
At Doremus-Eshleman
way
countries restrict
all of these
not
one
another
or
limit their
or
ous
The British have their austerity program, and
ways.
others
their
restrict domestic
of controls to
brand
own
will
They have
countries.
many
had their burdens to bear the like of which
we
in this
directly experienced.
never
1920
-
21
1915-17
Philadelphia office of Dore-
&
mus
Ben¬
be¬
Eshleman
comes
Mr.
Livingston
when
he
Philadelphia office
he
account
an
joining Dore¬
with
associated
was
the
joined
as
to
asso¬
& Company
Doremus
1947
Prior
been
has
with
since
mus
The
and
Company
Company
effective Jan. 2, 1953.
jamin
executive.
Country have
PRESIDENTS
Department when the merger
of the
ciated
the citizens of
upon
PAST
Thompson that of head of the
E.
consumption. Much of all this has without question borne
heavily
the post
Barry
assume
of Production Manager and
Art
They encourage exports in vari¬
purchases from abroad.
IBA
PHILADELPHIA, Pa.—Philip R.
of European
Livingston
In
91
altogether arti¬
arbitrary barriers to the entry of foreign goods
or
our own
most
of European
exports
Nor is'it
(2415)
a
Philadelphia accounting firm.
Why We Are Reluctant
;
It is this
Before
fact, doubtless,: in part which accounts for
son
the
reluctance
that at
of
least
of many
in this country to face the fact
of these
some
peoples areJ"carrying crosses
The ordinary.
making.
own
reads of the
man
Thomp¬
with
associated
was
Art
the
Department of the A1 Paul Lefton
Co.
for
Lewis B. Franklin
Roy C. Osgood
Prior to that he
10 years.
connected with the F. Wallace
was
their
Benjamin
The
joining
Eshleman Co. in 1945, Mr.
Armstrong
agency.
privations of his British cousin, for example, and finds
it difficult to say
fronted.
This
Peter
that his counterpart overseas is lacking
in his endeavors to meet the situation
reaction
is
natural
by which he is con¬
What is not
enough.
Morgan Sells
Gulf
IBA GROUP CHAIRMEN
Sulphur Shares
Peter Morgan
always realized is the fact that what the Britisher has
& Co. on Dec. 16
announced that its recent offering
done is often to reconcile himself to
of
mode of
exceedingly frugal
an
living. }That is not enough. What is needed in
so far as we-can see,- has not been
addition, and what,
done, is to take the steps necessary to work his way out
bf the need for such
privations; that is to increase produc¬
tion through hard work, careful planning
and the full
utilization of modern techniques and organization.
?
shares
will
shares
the sale of the
used
be
provide
to
the purchase of
funds required for
machinery and equipment neces¬
for exploration and drilling
wells
on
concessions
in
sary
of
30
and
to
for advances
drilling. The
balance will be used for working
already
would increase were there
pay
capital.
tariffs at all in the way.
there would be
In
for
lines without doubt
some
sharp increases, but
made
suspect that the
we
R. E. Watson Joins
Albert
overall
With
in
a
the
total would not
few
be
nearly
so
large
exceptions, European peoples
modern
supposed.
as
are so
A. M, Kidder in Fla.
techniques of large-scale' production that
wares
in
country in competition with the alert and well-man¬
with
members
the
European has failed to do for
a
good
many
decades, but most particularly perhaps since World War II,
is
to
enter
abundance
competitively in the
low cost—and
at
do
to
to produce in vast
race
at
so
the
expense
of
A.
M.
the
of
Exchange,
M. Rex
Clark, Dodge
New
Curtis,
York
&
1
Co.,
City
u
■„
Robert G. Rowe
:
..
Stroud & Company»
*
■
v,
Incorporated,
?. f-,
Philadelphia
Boston
Ray¬
—
Kidder & Co.,
York Stock
New
of their
Tallahassee office
manager
as
opened
Gruntal to Admit
Joseph Walker Admits
1, Joseph Walker, Jr.
Gruntal & Co., 25 Broad Street,
Mr. Watson
will become a partner in Joseph New York City, members of»the
representative for Walker &
Sons, 120 Broadway, New York Stock Exchange, will
Research-Distributing Corporation
New York City, members of the admit Albert M. Hartig to partand prior thereto was associated
New York Stock Exchange.
nership Jan. 2.
with the Keystone Company
of
Jan.
On
in the Hotel Floridan.
formerly
was
what
Fla.
&
mond E. Watson has become asso¬
ciated
newly
aged modern factory here. Again with certain exceptions,
Jackson
(Special to The Financial Chronicle)
TALLAHASSEE,
William
Pratt
Paine, Webber,
'
-
far behind
they would find it difficult to lay down their
this
PENNSYLVANIA
NEW YORK
ENGLAND
sold.
been
having
Proceeds from
interesting to know just how much Euro¬
pean exports to this country
no
said
;
Mexico
It would be
\
EASTERN
NEW
225,000 shares of Gulf Sulphur
Corp. common stock at $3 per
share has been completed, all of
with
ciated
and
the
In
Boston.
officer of Carlberg &
an
was
past he was asso¬
Florida firms
several
Cook, Inc. of Palm Beach.
long hard work and surrender of his time-honored customs
of
M. C. Kielsmeier With
management.
This
Hannaford
type of failure is hurting him not only in his
efforts to reach this market but also in other parts
of the
Correction of these infirmities is not easy,
but it
only
way
which in the long
is likely to be
run
suc¬
FRANCISCO, Calif.—Mar¬
C. Kielsmeier has become
California
meier
Street.
Mr.
for J.
Henry
■
Kiels¬
Palo
formerly
was
manager
cessful.
State and
as¬
sociated with Hannaford & Talbot,
519
is the
United States Government Securities
Talbot
(Special to The Financial Chronicle)
SAN
cus
world.
&
i
Alto
Helser
Municipal Bonds
&
Co. with which he had been asso¬
for
ciated
number
a
of
Three With Harris,
years.
Specializing
Upham
j in the General
(Special to The Financial Chronicle)
SAN
Ramsay
CO.
SUTRO
Investment Dealers and Brokers
ham
of Primary and Secondary Offerings
Underwriters
—
Industrial Brokers
&
Co.,
York Stock
York
Exchange
Francisco
Stock
Los Angeles Stock
Exchange
Exchange
(Associate)
Merrill Lynch
Uttttk of America
ANGELES, Calif.—Paul H.
Darrow has become affiliated with
Bond Investment Department
FRANCISCO
4
LOS
VAN
407 MONTGOMERY STREET
NEW
40
YORK
WALL
:
NORTH
BUILDING
CANON
CORRESPONDENT
4
Pierce,
Lynch,
formerly
was
& Company.
,
:
'
/i-S-
Hogle
'
Chronicle)
Calif.—Stefan X.
Bagrowski has joined the staff of
J. A. Hogle & Co., 1030 Sixth Ave¬
SAN
OFFICES
MANILA,
P.
I.
CALIFORNIA
'
With J. A.
nue.
DIEGO,
Mr.
Bargrowski
viously connected with
ritt & Company,
Inc.
was
pre¬
King Mer-
IS vsinos ASSOCIATION
SAN FRANCISCO
He
F. Hutton
with E.
(Special to The Financial
DRIVE
Fenner &
Beane, 523 West Sixth Street.
HILLS
Direct Private Wires
HONOLULU, T. H.
14
SOUTH FIRST STREET
246
BEVERLY
275
NUYS
SAN JOSE
5
STREET
ANGELES
NATIONAL
LOS
Merrill
SAN
'%*
Montgomery St.
previously with
Co.
Mr. Raggio
(Special to The Financial Chronicle)
San
Curb Exchange
&
and its Political Subdivisions
5VJ
with Francis I. du Pont & Co.
Joins
New
was
Schwabacher
was
MEMBERS
New
232
Browne
Mr.
Distributors
FRANCISCO, Calif. —
Browne, Jess J. France,
Jr., and John T. Raggio have be¬
come associated
with Harris, Up¬
,.v
Obligations
of the State of CALIFORNIA
vV
■'/
K:-i?,
vi'.vA'-?
■!.' I'/;
Mi
#4
-i
'
I
»2
The Commercial and Financial Chronicle"...
(24X6)
Continued
gets overly generous, or sometimes earlier year resulting in the tax
the children bring this about. If benefit
was
clearly
erroneous.
this is contemplated, be extremely The fact that the earlier year can¬
from page 7
careful.
The
Income.
As you know,
ordinarily a three-year statute of
limitation runs against the Com¬
ment.
missioner
ment.
very recent
case.
Internal
of
when he seeks to
wind up with
Revenue
make
addi¬
an
limitations
which
come
in his return
said
but
that
the Commissioner could make
no
•deficiency
assessment because
by the three-year statute
The taxpayer said
the five-year statute did not ap¬
ply because the unreported in¬
barred
of limitations.
come
did
not
amount
of
to 25%
his gross sales. The Commissioner
said that the unreported income
exceeded 25% of taxpayer's gross
when
involved
in
divorce
a
or
includible
would
be
not
'
*
in
the
income
of
deductible.
man
Sometimes
the wife's attorneys' fees are con¬
each
of
is referred to in the
separation decree;
is not.
Naturally,
cerned, that portion which is
properly attributable to the pro¬
could
fits
sometimes
or
it
almost
as
duction of the alimony or the col¬
lection thereof is deductible.
It
had
to
contracts
his
like
15,
its
re¬
Ordinarily,
limitations
against
would
March
out
15, 1948, three
Where the corpora¬
later.
transfers
stockholder
its
who
assets
to
becomes
a
liable
transferee, an additional year
permitted to make the assess¬
against the transferee. This
a
is
there
1944, the
filed
1945.
assessment
statute of
deficiency
a
as
that with
corporations,
the
tion
be $5,000 of tax free bene¬
be received by the bene¬
the agreement
insofar
However,
Taxpayer
March
turn
years
the
separation.
Generally, attorneys'
such proceedings are not
volved the calendar year
corporate
run
beneficiary up to a maximum of
$5,000 per employer.
Thus, if a
fees in
later divorce
ap¬
substantial amount of in¬
a
separation agree¬
a
Sometimes such separation
fore—sometimes after.
Taxpayer had failed to in¬
clude
separations
or
last word on this subject. Nearly ficiary of the employee were de¬
ductible by the employer and not
everybody has
attorneys'
fees
agreement is made during the le¬
gal proceedings — sometimes be¬
the taxpayer understates his gross
Income by 25%, it is a five-year
of
divorces
Most
tional assessment. However, where
plies.
such,
as
to the widow.
husband
taxpayer's gross sales are not
Only his income (arrived
•t after deducting from sales re¬
ceipts the cost of goods sold) is
In the Revenue Act of 1951 a
subject to income tax. This the entered into incident to such di¬ new agreement is not essentially
courts have repeatedly said is a vorce or separation. A lump sum made incident to the decree of provision was made that all pay¬
Constitutional right—not a matter settlement payable in instalments divorce or separation; hence great ments made under express con¬
tracts by reason of the death of
of statutory grace. Another appli¬ over a period of more than ten care and thought must be
given
cation of this rule came up in a years is considered periodic pay¬ to each situation as it arises. One an employee to the named bene¬
ji
Statute
and
income
might lose not be corrected because of the Net Operating Carry-Back Losses
his right to the deduction and the running of the statute of limita¬
Statute of Limitations
wife might not have to report the tion cannot be availed of
What I have to say on this sub¬
by the
ductible by the husband and re¬ alimony as income.
Some cases Commissioner of Internal Rev¬ ject may sound a little compli¬
enue.
portable by the wife if the pay¬ have gone this way.
cated or confused—but it involves
ment is made pursuant to the de¬
a
The reason is that the obligation
point which should be kept in
Bonus Payments to a Widow
cree, or pursuant to an agreement of the husband created under the
mind. In a recent case which in¬
Progressive Tax Changes in 1952
"v
gift,
Thursday, December 18,1953
ment
would
have
March
always, the husband wants
But
what
about
a
company
to obtain the tax deduction, but cannot at this time be said with
which wants to make a gratuitous
the wife does not want to report the same degree of
certainty that bonus payment to the widow of
the income. Hence, the constant the husband's
attorneys' fees in an employee in excess of $5,000?
conflict.
opposing the amount or amounts Is that deductible by the corpora¬
Briefly, it might be said that if of alimony are likewise deductible. tion? The Courts have constantly
at the time the separation agree¬
said "Yes,"
Is it income to the
Abandonment Losses
ment is made, or at any time be¬
widow? A recent Tax Court case
In recent years not too many said "No." In this
fore, the parties spoke of a con¬
case, a highlytemplated divorce or legal separa¬ cases have come before the Courts paid employee of long standing
tion, the Court will probably hold dealing with the deductibility of a died. There was no contract or
sent
brought the date to
1949.
The Commis¬
15,
sioner
ficiary from each corporation.
in
notice of deficiency
a
March
of
1950.
Hence,
statute of limitations had
in 1947
as
result of
a
ating loss in 1946,
the
But
run.
net oper¬
a
the Taxpayer
had
received
year
1944. The Commissioner said
a
refund
that the statute did not
1951, which
March
the
was
for
run
the
until
four years from
15, 1947, the date for filing
return.
The deficiency
1946
which
the
Commissioner claimed
that the separation agreement was loss from abandonment. Perhaps policy to
pay the deceased em¬ for the year 1944 arose out of old
(i.e., sales' less cost of incident to the decree of divorce or with there being more business
ployee's estate
or
widow
It
any tax matters in the year 1944.
sales) and hence, the five-year separation, regardless of whether declines and unstable economic
further sales or tax bonuses.
The did not arise out of anything in
statute applied. The Court upheld that
fact is mentioned in the de¬ conditions,
abandonment losses
the Commissioner. So there is the cree or not.
after
determining the 1946 net operating loss carry¬
Payments made pur¬ will more and more arise. The corporation,
situation very clearly defined.
The Court held that the
suant to a separation agreement importance
of
an
abandonment that the widow was not financially back.
Income
Deductibility of Alimony and
Separation Payments
before
the
divorce
decree
are
not deductible by the
husband
separation
or
reportable by the wife.
One of the largest sources, of
And
payments made under an
tax litigation during the past dec¬
agreement not incident to a legal
ade
out
came
of
the
law
which
permitted
called
deductibility of soalimony payments by a
husband to
the
wife
ments
a
has
wife.
to
To the extent
report the
pay¬
income the husband gets
the benefit of deduction. Briefly,
where
as
a
husband and wife
are
di¬
vorced or
odic
legally separated, peri¬
alimony payments (whether
or
separation
or
divorce
not de¬
are
us
say
that
husband
a
is
making payments to the wife
pursuant to a separation agree¬
ment
which
decree,
and
was
for
incident
some
to
the
reason
or
abandoned
though
is
the
asset
capital asset. In
capital asset is
exchanged, the loss would
a
other words,
or
if
a
have to be treated
as
secure,
have
and
paid
subsequent to the decree
Sometimes
the
former
husband
would
Commissioner made the
salary
too
her
bonus if he had lived during
the remainder of the year.
These
payments totaled $67,000. The Tax
Court
no
held
legal
that
since
obligation
to
there
pay
was
the
ent
entirely on the holding period. salary or gift after the death of
capital loss may be deductible the husband, the payment was a
only against capital assets, or or¬
But
capital asset is aban¬
doned, the loss can be deductible
against ordinary income as well
to
so as
what
husband's
A
dinary income,
modify the agreement
to
her
been
of
$1,000
where
in
deficiency
anything
which
arises from the audit of the orig¬
inal return
of four
rise
the
to
barred at the end
was
If the item giving
years.
proposed
had arisen from
the
net
an
deficiency
adjustment in
operating loss which
carried
back
from
1946
then
maximum
a
one
year.
the
capital gains.
as
this
to
up
any
late,—that
long-term
a
short-term capital loss, depend¬
or
to
permit the husband to make larger
or
different types of payments.
de¬
come— even
other the husband and wife want
made at regular intervals or not)
are
ordinary loss deduction, de¬
an
ductible in full from ordinary in¬
sold
ductible either.
Now let
loss is that it is deductible in full
as
An
clearly
was
portrayed
Dealers in Industrial & Public Utility
of
example
in
Stocks & Bonds
a
recent Tax
Court case, where the
(a partnership)
made
improvements on leased
taxpayer
capital
Active Retail Outlets
property.
ELWORTHY
&
The Court held that for
the first year and a half the tax¬
CO
payer was able to
preciation
sets
and
for
cost
be
Investment Securities
then
the
the
balance
as¬
the
of
improvement
deducted
because
deduct the de¬
the life of the
over
Demaolt & COL
could
immediately in full
ESTABLISHED
the taxpayer then aban¬
doned the leasehold.
Russ Building,
Deduction in Wrong Year by An
Accrual
111
SUTTER STREET, SAN
Garfield
FRANCISCO 4
Basis
How to obtain
1-4460
a
deduction for
deductible
Oakland
San
Jose
item
which
good
trick.
is
a
ally it happens.
In
never
It
that
the tax.
Underwriters
and
Distributors
of
>
Y
i
pay
Occasion¬
that
State, Municipal and
•
Corporate
*
M
'
cluded
then
amount
in income
that
ceived
Securities
a
for
that
a
determined
should
in
1943
Taxpayer
tax
benefit in
deduction.
held
liable
The Commissioner of In¬
Revenue
such
reason
the
not
was
The
be
in¬
for
the
Offices
had
re¬
is
controverted
settled
even
provide
complete
coverage
1940 from
Tax
Court
obliga¬
tion is not accruable until the dis¬
pute
Our 26
Hence, it did not have to
it.
ternal
though
of America's
fastest
the
one of law.
The deduc¬
tion by the Taxpayer in 1940 was
growing
clearly
area
dispute is
'•AH
•AH
FRANCISCO
STOCK
150Q Rues
EXCHANGE
Building
LOB
•
ANGELES
STOCK
That
rule
deduction
EXCHANGE'
San Francisco
J
in
The
does
a
erroneous
prior
as
year
income
so-called
of
tax
not
apply here.
only where a
properly taken in a
applies
prior year, resulting in a tax bene¬
fit, is adjusted in a later year.
Ordinarily, such adjustment will
result
Teletype sf 172
year.
benefit rule
"s"' /fry,
MEMBERS
later
taken
be treated
may not
a
An
erroneous.
deduction
Kaiser sl Co.
Teletype SF 272
recent Tax
a
did not pay the tax,
it
System
a
but contested its liability. In 1943,
the
local State
Supreme Court
held
Bell
ex¬
Court case, the Taxpayer in 1940
deducted
from
income
a
state
sales tax.
San Francisco 4
Telephone EXbrook 2-7484
Taxpayer
isted
Sacramento
1931
the
Incorporated
Members
San Francisco Stock Exchange
Midwest Stock
in income to the extent of
tax
ceived.
First California Company
benefit
But
such
previously
rule
does
re¬
not
apply where the deduction in the
300
Private (Fir#
Los Angeles Stock Exchange
Exchange
Montgomery Street
to
•
San Francisco
No to York, Chicago and other loading Eatterit
eitloo
was
the
Jfolume 176
Number 5178
.
.
The Commercial and Financial Chronicle
.
»
(2417)
deterrnination
:•
could" have
?
otherwise^* -f*:
*¥ '
'"3'*
'*
.
•
4
f >'
' -V.,.
' "*
t4
been
'
*-'*<-»
*
"
unquestionably the Taxpayer ac¬ health ought to
give heed to the
quired and held property for a
purport of this decision.
,,
considerable period of time
Property. Held Primarily for Sale
investment.
to
-
-
Customers in the Regular
Course
Taxpayer after holding the
■
for
A problem which is encountered
quite
frequently by people
is
dealer in securities.
gain
any
loss
or
generally taxable
full.
If he
from
such,
in
deal
cases
full.
with
Many,
:
this
in
where
case
merely holds the asset
for
Of
property for his
risk, at the
in
the
business.
investment
their
But
own
was
sale
those
account
to
of
who
speculation
are
been
not
court
to
use
ordinary
ficulty
She required
doctor
in
and
of transportation to
means
assistance, and had
not gener¬
re¬
case the taxpayer
wholly disabled. She
unable
on
case
In this
almost
get around.
hold
the
obtaining deductions
district
a
regular
cus¬
course
in
advised
dif¬
about.
Her
her
to
seek
re¬
ally
considered
"dealers,"
and munerative employment as and
they would not be permitted to for occupational
therapy. In order
compute income on the inventory to carry out the directions of her
method.
mally
Such
be
assets
would
considered
as¬
sets—or at least might obtain the
benefit of Section 117(J).
On the
gaged
other hand, those assets acquired
and
held primarily for sale to
customers in the ordinary course
tween her home and
of
business
cluded
specifically
capital
assets
are
from
statutory definition and
are
help
driver
a
her
and
of
taxicab
a
transport
her
therapy
also
at
her
the
held
for
either
purpose
may
purpose
at
the, discretion
of
the
occupational
direction
part of the cost—and
fore
medical
a
Taxpayer exercised in good faith.
is.'ithis very last proposition
basis it
which
eral
be dangerous.
can
recent
In
the Tax
cases,
sev-
cal
Court
held against the Taxpayer where
collected
other
of
her
was
deductible
was
A
expense.
People who
go to Florida
or
bad
of
a
it
cor¬
of
$50,000,
During the
as
a
doctor's
corporate
deposited
same
mailed
and
day.
The
to
It
held that
was
check
Dec.
on
could have cashed
it
Eaton
since
was
to
31,
it
Dean
1946
and
him,
and
should
have
The moral of the story
IBA GROUP
is, have
the dividend payable on Jan. 1 of
the succeeding year.
Then there
is
•
PRIVATE
PENNSYLVANIA
Private
will
Jan.
1
Everett- Ware
become
York
Cady
City, members of the New
Stock
Cady,
Exchange,
will
name
Roberts
be
&
and
the
changed
Co.
to
Mr.
Cady
formerly a limited partner of
Carl M. Loeb, Rhoades & Co.
was
FRANCISCO,
Charles
Scribner, Pittsburgh
Francisco and Los Angeles Stock
Exchanges. Mr. Good was formerly
Mitchum, Tully & Co.
•
Joins Thomson McKinnon
Pedolsky has opened offices
Main
Street
to
at
in
engage
•
•
&
associated
McKinnon,
Mr. Randall
was
with
—
Laguna Beach
J. Warndorf has become associated
with
form¬
Building, members of the Cincin¬
Charlotte, N. C. office.
nati
Geo.
and
Eustis
&
Co., Traction.
Midwest
J
changes. *
Stock
'
FRANCISCO,
to the staff of
ANGELES
BELL
CORRESPONDENT:
Long Beach
Santa Monica
SYSTEM
BACHE
£
Glendale
Riverside
Corona del Mar
Co.
300
Montgomery
Street.
TELETYPE
(Special to The Financial Chronicle)
LOS
LA
17
ald
Pasadena
Pomona
Ontario
San Pedro
ANGELES, Calif.—T. Don¬
O'Neil
J.
Seventh
has
Barth
Street.
become associated
&
Co.,
Mr.
210
O'Neil
West
was
formerly
with
Wagenseller
&
Durst and prior thereto was with
Cohu & Co. and
ager for
was trading
Morgan & Co.
on
the Pacific Coast
San
(Assoc.)
17
distribution facilities
Members:
"'U '1'
CO.
Complete
Wilson, Johnson &
MARKET
LOS
MADISON 7111
&
Calif.—
COVERAGE OF THE
STREET,
Dean Witter
(Special to The Financial Chronicle)
SAN
man¬
;
Anthony
Webb
Wilson, Johnson Adds
San Diego
New York Curb Exchange
become
CINCINNATI, Ohio
was an
Markley & Co., Inc.
Angeles Stock Exchange
Redlands
With Geo. Eustis & Co,
(Special to The Financial Chronicle)
erly with Harris, Upham & Co. in
their
a
TRinity 0281
with
CJaremont
Mayer,
Cincinnati
Poughkeepsie
individual dealer and
T. Donald O'Neil
Santa Ana
Seasongood &
'
Members
Hollywood
Thomas J. Rets
&
business. Mr. Pedolsky
formerly engaged in the se¬
curities business in
CALIFORNIA
Exchange
YORK
has
Building.
Lester, Ryons & Co.
NEW
„
(Special to The Financial Chronicle)
Thomson
(Special to The Financial Chronicle)
was
Spencer Trask & Co., New York
COMPREHENSIVE
TELEPHONE
Hay
Turben
Cleveland
SHELBY, N. C.—Ralph E. Ran¬
POUGHKEEPSIE, N. Y.—Sam¬
as an
I
LOS ANGELES 14
HOPE
Co.,
Meyerson & York, 216 Montgom¬
ery Street, members of the San
Underwriters and Distributors
SOUTH
John
Merrill,
Eubanks,
advice
J. Barth & Go.
623
Fisher
asso¬
T. D. 0'Neii With
Los
N.
Singer, Deane &
Calif.—
Richard D. Good has become
ciated
with
Stewart,
Higgins,
New York Stock
OHIO VALLEY
a
Alden M. Howells has been added
SOUTHERN
OHIO
partner in Roberts
Co., 488 Madison Avenue, New
officer of
wire to
NORTHERN
Cady, Roberts & Go.
On
uel
PLACEMENTS
'
long Beach
•
CHAIRMEN
.
TELETYPE LA 38
Pasadena
Foster
Marshall,
New Firm Name to Be
& Co.
DISTRIBUTORS
'
•
&
Seattle
securities
UNDERWRITERS
650 S. SPRING ST.
Albert 0.
Foster
WESTERN
problem.
no
192
•
Forsyth
Bullock,
Denver
been
dall
Members Los Angeles Stock Exchange
W.
Calvin
that day,
on
Pedolsky Opens
on
Alex.
Co.,
taxed to him in 1946.
with
Crowell,
&
Francisco
unconditionally available
(Special to The Financial Chronicle)
or¬
Taylor
Witter
San
With Stewart Eubanks
medi¬
Arizona for their
the
taxpayer could have obtained
the
there¬
was
other
who
it
1947.
ary,
the
SAN
refund
on
NORTHWEST
taxpayer's
home; received by him in Janu¬
On this
expense.
the
was
firm
dered.
It
MOUNTAIN
delivered by hand to the
of
stockholder,
York
employment, at all times,
of
how
owner
dividend
a
was
was
by
freely appropriated to the other
declared
&
part
out
50%
ROCKY
afternoon of Dec.
31, two dividend
checks
of
$25,000
each
were
her place of
employment. The Court held that
since her
ex¬
found
was
PACIFIC.
CALIFORNIA
One recent
payable Dec. 31, 1946.
to
excluded
from .the physician, the expenditures for
benefits of Section 117(J). But, of the cab
transportation essential
course, assets originally acquired thereto
were
to be included as
and
He
CHAIRMEN
poration, the remaining 50% be¬
ing owned by another corporation.
On Dec. 23, 1946 the
corporation
be¬
specifically
be
taxpayer
was.
doctor, she sought and obtained
employment. In doing so, she en¬
nor¬
capital
—sometimes it is bad.
special
extreme
moving
IBA GROUP
re¬
ceipt is fairly well known to all
of us. Sometimes it is
good for us
One
over
have
'.Constructive Receipt
•
cashier
expenses when they
slightly off the beaten path.
one
taxpayer obtained a re¬
cently.
was
for
or
is
part
taxpayers
fund
a
regular
Thus,
he
most
•
The doctrine of constructive
signed by the corporate treasury.
medical
were
type of assets
same
primarily
tomers
for
for
other
no
as
As
assets
the least.
say
successful in
at all times
time
the
all
the
years
account and
own
same
dealer in the
held
For
will
payer
said
Medical Expenses
But many times a Tax¬
deal- in securities or
purpose.
and
clusion, to
Taxpayer
investment, and for
Court
many
subject.
the
during the
gain was treated
ordinary income. A severe con¬
as
if the asset is a capital
there is no problem, such as
a
the
117(J)
course,
asset
assets, and thereafter did
were
neither capital assets nor
entitled to the benefits of Section
the
as
ductible
sell
the regular course of business.
gain
is
a capital gain, whereas
a loss
might be a capital loss, or,
if Section
117(J) applies, it is de¬
treated
to
it was selling off the assets
Taxpayer was holding them
primarily for sale to customers in
is
-
asset
the
deductible in
or
Otherwise,
sale
an
time
or
is, then
a
decided
years
The Court said that
so.
estate is whether the person
dealer in real estate or a
a
several
off the
who
handle quantities of securities
real
as
In each of these
cases,
Los
and
New
York
Stock
Exchange
Francisco Stock
Exchange
Angeles
other
Stock
Exchange
leading security and
commodity exchanges
Ex¬
*r Villi
91
The Commercial
(2418)
Continued,
jrom
the
increased cash outlays.
to afford
Investing for Pension and
Profit Sharing Trusts
the
tween
which
two
types
funds
of
investment
affect
may
thinking, is that the beneficiary of
Pension Plan trust looks only
a
to the amount of
he
pension benefits
expects to receive,
size
that
not to the
the composition of the fund
or
is
expected
to produce
such
benefits, while the participating
employee of a Profit Sharing fund
is not only aware of the exact
of
amount
cash
periodically
credited for his benefit but is also
informed
at
least
annually of his
proportionate share of the
fund
that
so
ment
of
are
than
more
passing importance to him.
When
trustee
a
is
investing
he is in¬
Profit
Sharing funds,
vesting the "incentive payments"
belonging to numerous individuals.
There
would
be
little
reason
for
employees to exert their best ef¬
forts to help create profits if such
v?
gains
were
Moreover, payments from Profit
Sharing funds are often lump sum
payments
tion of
a
whole
requiring
the
liquida¬
proportionate part of the
fund.
Such
payments
can¬
be
accurately anticipated be¬
they may .accrue as the re¬
cause
sult
of
charge,
death,
disability,
dis¬
resignation; it is only
or
in anticipation of retirement that
distribution can be effected in an
orderly
manner.
As
the
number
of
employees is usually reduced
during periods of depression, it is
possible that substantial liquida¬
tion may occur
during periods of
security markets.
depressed
The
foregoing is not said with
the idea that the best investment
for profit sharing trusts
policy
would
be
to
confine
to government
bonds
called
investments
other
or
riskless securities.
On
so-
the
effort should
every
be
toward building up these
individual nest-eggs; but in for¬
mulating investment policy and in
the continued supervision of these
investments, the trustee must keep
problems inherent in
in mind the
profit sharing funds, and
emphasis must be placed upon the
timing of investments and sales—
with more emphasis on the shortto-medium term outlook for the
these
and tne markets rather
than the long-term outlook.
economy
Participants
funds
also
in
have
profit sharing
possibilities for
vesting of the account. Many plans
gradually over
vest their interests
period of years, and in compa¬
nies
having
substantial
a
such forfeitures
turnover
standpoint, a
profit sharing fund might have a
lesser representation
in equities
than a pension plan trust and at
the same time have equal or even
From
pants.
this
more,
an
recessions
in
pany,
which
market
be the
own
com¬
vestment
is
desirable
tp
stock in the in¬
portfolio.
Some compa¬
him
known to
policies governing
Sharing trusts would be ex¬
pected to vary considerably with
the size of the company and the
community
interests
of
rewards.
Pension
Fund
experience
ment
activities
trusts
has
led
there
ment
in
of
the
invest¬
Pension
to
be
to
me
believe
definite
are
sion
of
selected
trusts.
I
do
be
typical
Steel
Fabrics
bonds
the
33%
Corporate bonds.
Total Common
7
large pension trusts
and market value
which
our
bank
administers
lower, which situation might re¬
quire increased contributions from currently invested as follows:
Corporate
Markets Maintained
COLORADO
% Preferred;*
.
Railroads
Electric
Light and Power
Natural
Gas
figures
&
market
Other
1.4
0.2
62.1
_:
•—---
Total Preferred
MONTANA
10&10^
Maintained
Institutional
% Bonds
U. S. Government
stocks
1.1
3.2
17.9
10.7
3.6
2.2
,
Gas
8.0
4.8
30.7
Industrials
Bonds
18.4
100.0%
Other
based
upon
The
0.8%
82.3
3.9
Total
Bell
Teletype DN
296
have
Telephone Keystone 3201
MAIN
Pension
been
of
assets
established
are
set
for
a
continuing
does
represent
an
not
in
many
CORPORATE and MUNICIPAL
a
is
not
sizable
so
Plan's
con¬
Dealers in
into
Corporation Securities
con¬
and
neces¬
ARIZONA
NEW
in
this
that
either
gan to think
Established 1919
as
a
recent
favor
Co.
until
for
the
the decade.
there
MONTANA
UTAH
NEVADA
WYOMING
trustees
STONE, MOORE & COMPANY
1
—
has
U.
been
funds,
gain any wide
very
a
last part of
S.
NATIONAL
BANK
Teleohone
•><
BUILDING
KEystone 2395
v
Teletype DN 580
1949, however,
very
=
DENVER 2, COLORADO
Pension
Since
INCORPORATED
INVESTMENT BANKERS
or
seriously of equities
medium
and the idea did not
k
COLORADO
MEXICO
investment
very
donor-corporations, generally, be¬
Phone TAbor 6271
Municipal Bonds of
with
As I mentioned previously
talk, it was not until the
years.
REGION
1940's
FIRST NATIONAL BANK BLDG.
DENVER 2. COLO.
a
percentage of a
funds, has become
widely
accepted
only within
'
>
Jjl'-
decided
trend toward
Exchange
increasing equity in¬
vestments; almost without excep¬
tion, corporate management has
DENVER, COLO
Teletype DN 63
become
more
years, and more willing
to have the Funds assume the riks
inherent
in
ERNEST E. STONE
\
stock-minded in the
last few
/
stock
369
investment
lodged
practice
Specializing in Securities of the
Member of the Midwest Stock
DN
The purchase of common stocks
Pension
&
—
Gregory
Bank.
with
SECURITIES
Sidlo, Simons, Roberts
&
accounts sole investment
responsibility
the
Bonner
to
Loveland, Colo.
over a long
However, this a^
distribution
wire
that
policy to be applied to all Pension
Plan trusts; each trust has its own
peculiarities and objectives, and
Active Markets Maintained in
4.7%
PETERS, WRITER & CHRISTENSEN, INC.
is
expected
period of time.
sarily
trusts
length of time and
tributions
MOUNTAIN
BELL, DN 290
Private
of the port¬
Plan
which substantial
N
100.0%
6281
-
distribution
siderable
t
ROCKY
Miscellaneous
this portfolio show
represent 30%
sizable
Security Building, Denver 2, Colorado
% Total
17.6%
0.1
probably indicative of our present
investment policy with respect to
COUGHLIN and COMPANY
60.0%
% Miscellaneous
,
4.1
folio.
This
19.6%
1.9/
5.3
their cost prices, and costs on the
other securities held, the common
all
on
% Total
32.6%
CLASS—
30%
Securities
6.9%
MISCELLANEOUS
appreciation of approximately
over
cost; on the basis of
an
Municipal Bonds
Markets
in
j-^0.7
BONDS
Sales Agreements
Oil Payment Contracts
values, not cost prices.
stocks held
4.3
10.0
-
8.9
are
0.3%
20.8
3.2
Industrials
Total
36.3
assets...
These
MEXICO
% Total
3.9%
___
WYOMING
NEW
28.4%
is
32.9
stocks
Other
0.9
STOCKS
CLASS—
2.1
stocks
Preferred
;
.
15.7%
bonds
Common
:
100.0%
s.
PREFERRED
Natural
meagre,
0.3
3.2
-
.
0.3
1.1
—
Electric Light and Power
Telephone and Telegraph
7
____
likely
the
0.6
0.9
—
Railroads
23
Preferred stocks
of
.
.—2.2
Rubber
Other Governments
30
Common stocks
One
0.9
0.1
—
Textiles and
0.2
3.2
________
Telephone
1.2
0.8
CLASS—
Government
Other assets
4.3
;
pen¬
know
not
worth:
S.
0.4
4.3
Railroads
study, but here are
perecentages, for what they
the
1.4
1.6
_
Paper, Printing, Publishing
,
1.3
15.2
—_—.
this
of
source
U. S. Government bonds
IN
Metals
Oil Production and Refining
that
invest¬
Canadian bonds
Active
4.6
~
-
1.0
Plan
developing, there is
at this time no typical investment
pattern for such trusts. I recently
dividend income to the
trust from this investment is
Nonferrous
—
1.8
3.4
5.0
__,
Gas
1.8
6.3
Merchandising
Natural
0.7
-
Trusts
trends
the
earnings,
Products
Miscellaneous
U.
to
Household
Tobacco
while
4.3
2.5
Machinery & Metal Products (incl. Can Cos.)
investment risks and
may
hesitated
15.0
6.3
Food and
Tire and
My
0.5
0.8
Financial
of
closer
1.6
2.9
Light and Power
Equipment
and perhaps be more cognizant of
authorize
have
Farm
participant.
In
other
words, a plan covering several
thousand
hourly - rate
workers
would
present
the need for a
a
Pharmaceuticals
Electric
Investment
type
1.0
3.1
Electrical Equipment
Profit
1.5
3.5
10.9
and
Drugs
suffered
0.1%
5.1
_,
Building Construction Materials, Paint, Glass
like decline.
a
purchase of their own stock
in pension plan trusts because of
the eggs-in-one-basket theory and
because
in
periods
of reduced
nies
mar-
% Total
0.3%
Chemicals
com¬
a
% Common
Aircraft and Air Transport
Automobiles and Parts
reflected
in
values, than would
if the stock of
case
not
pany,
his
tribution
whether it
on
STOCKS
CLASS—
are
lower
ness
saw
a
report, published by an
actuary, which gave the asset dis¬
policy that is almost always
COMMON
employee is more likely
the reasons for busi¬
ment
include company
rate of return obtainable
that
greater enhancement possibilities.
There is one question of invest¬
raised:
Thursday, December 18, 1952
types of investment that afford
something better than the going
income and also the protection afforded both income and principal
to appreciate
be
quite substantial in relation to the
interests of the remaining partici¬
order to obtain both the increased
...
plans,
Sharing
in
labor
may
Financial Chronicle
however, against the effects of inflationary ketable corporate bonds.
Many
trends.
they are primarily
pension trusts are participating in
We have also noticed an increas- private
incentive plans; and the very fact
placements;
conditional
that the employee has two avenues ing interest, on the part of man- sales contracts on equipment; saleof possible profit when the fund agement
and
trustees, in other and-lease-back agreements; mortholds company stock is in itself
a
Composition of P/P/T Assets as of July 31, 1952
strong argument for the pur¬
chase of company stock. Further¬
Profit
differ
appreciation in their fund apart
from any income or capital gains
which might be the result of in¬ more conservative overall
policy
vestment activity—that is, in their than
would
be required
in the
proportionate share of forfeitures plan of an advertising agency or
arising from severance payments a brokerage firm where the rela¬
to
employees prior to the full tively few participants would have
a
subsequently dissipated
in part through investment losses.
not
contrary,
exerted
entire
intermediate invest¬
results
time
able
company
at the very
when it is financially least
9
page
and
purchases
in
WM. J. MAY
HOWARD J. HANNON
*
Volume 176
Number 5178
.
.
The Commercial and Financial
Chronicle
.
(2419)
gages
on
industrial,
and other
commercial,
income-producing
Continued jrom page 6
prop¬
erty; oil payment contracts, and in
some
cases
many
other assets that
classify
as
oil
royalties;
calculated
in
and
Eqi iiies
Mortgages as
Savings Bank Investment
would
we
risks.
Investment of Relatively Small
Pension Contributions
One of the investment
problems
very often encountered, is how to
invest
relatively small pension
contributions.
Suppose the ini¬
tial
contribution
less,
and
of
be
In such cases
would
the
bonds
than
As
grew,
the
pro¬
risks
portionate amount and the
diver¬
common
expect
proportion
of
could
These
to
be accomplished
In
conclusion,
terested
in
the
was
as
reduce
this
shifts
of
the
on
market
that
in¬
thh /
of
•
bank. held
on
of
date. .These
such
assets
figures
^ made between pension
consideration
as
accounts,
are
ment
plan
,
accounts,
was
the
degree
responsibility
and
and
given
the size of
the
equity investment,
hav-
larger surplus to absorb poslosses and market depreciaare
a
also
attractive for
relatively low ratio
to
total
resources,
such banks, equities
provide
supplementary source of in-
I
V^La t/i
1 as;ji high
July 31, 1952, at
values
sharing
banks,
amount
of
stocks
only
many
divert
can
relatively
a
funds
from
small
mortgage
lending by these institutions
der existing conditions.
most attractive for.-
creased income. ^
in¬
weighted in any way; in their
/computation, no distinction was
factors
and tax standpoints for
savings
at most
of
For
a
not
profit
Conclusions
'
un-
For
a
mortgages
chases they do
riod of
of
to
-no
such
various
invest¬
lodged
with
the bank, etc.
make
over
a
Equity investment is more
petitive' with mortgages in
banks than in
others.
It is
*
t-Ij,
W;
DUI pf
Alonzo
&
Blyth
Chicago
C.
&
Allen
Co.,
Arthur S.
Inc.
Torrey
W.
C. Pitfield &
Company, Ltd.,
Detroit
Montreal
some
IBA GROUP
most
competitive in banks that have a
large surplus and that have a rel-
atively smaller percentage of
SOUTHEASTERN
CHAIRMEN
SOUTHERN
SOUTHWESTERN
re-
invested in higher yielding
sources
I
w
WU
.
«I1U
^
1 *
Such banksf j-'oahks,•
concerned7 with
they are-likely to
-
,
wel 1
as
their larger pur-
as
the
want
to/mini-^Ji;
^ competition
mize the risks
they incur on their-"investment
security investments.A fact fur- -bank
available
among
outlets
for
savings
"funds is increasing.
is
mortbanks
that
equity holdings must be val-
&a§e loans offered
at
fail to
is
a
cost
or
market, whichever
lower, in examinations,
so
that
charge would be made against
surplus
accounts
iners in the event
market
value
of
bank
by
a
stocks
held
ex-
come
ments,
be
,
,
savings
to their require-
up
therefore,
tions win
exam-
decline in the
Should
'he quality and yields of the
ued
these
institu-
less
pressure
und
,
CHICAGO, 111.
now
—
associated
with
Francis I. du Pont &
Co., 208 South
Street.
He
ously with Faroll &
was
previ¬
Company.
Richmond,
H.
Inc.,
Wilson
Arnold
Va.
New
Arnold
<fc
Beecroft
Harry
Crane,
Beecrojt,
Orleans
Cole
&
Co.,
Topeka, Kans.
,
make such loans merely to keep
funds invested. But so long
as a £ood supply of sound mortat
reasonable
yields
con-
appraise the position of the indi-
Edward Flan-
John C. Hagan, Jr.
Mason-Hagan,
gages
up.
dnues to be available
^an^s» no other type
vidual savings bank,
therefore, in
ment is likely to threaten the pri-
the
marY position that mortgage lend-
authority to buy equities is likely
occupies in their portfolios
Mortgage bankers will
(Special to The Financial
Chronicle)
Salle
Blair
Company,
bx-^yia^esrhsf, eornorate and tax-exproblem, they obtain a
relatively-^u^K? ds
large income from mortgages, and -?'W.;»?nas_ tnis year, indicates
indicates
With F. I. du Pont
La
Ostrander
com-
set
is
H.
William
pe-
ceeds the reserve which has been
nigan
Lee
years,
f
mortgage ratio.
not
are
sharing trusts
CANADA
following figures
showing the ";:cornpbsitioh
•J assets which
are
banks with
be
may
a
Equities
received.
you
MICHIGAN
We may thus include
that, atas equities are
from the
;
/
Policies
attractiveness
tion-
cor-
new
STATES
CHAIRMEN
pur-
of
sible
government
progressive
vestment money
ing
stocks.
bonds in favor of
higher-yield
porates.
'
ex-
one
thing, statutory limirelatively large sue- tations severely
constrict
the
plus. In the first place, such banks, amount of
equities savings banks
have to pay the Federal income
can-buy;*-Secondly, the risks that
tax on retained
earnings, and so attach to equity investment will
benefit fully from the very favor- cause some
savings banks to reable tax position of dividend in- frainfrom
making equity investcome.
Secondly, such banks are ments in any considerable amount
in better position to
incur the and others to spread what
would
we
both
Equities
.
with government
be the case in
increase
sification if the
We would also
the
Bank
relative
banks with
'
would
trust
to
new
equities and mortgages will differ,
account.
the
expect
like
would
The bond portion
would be more
portfolio
larger
The
the stocks selected
utilities or consumer
heavily weighted
a
a
.
industry stocks.
of
Individual
or
and
be
stocks, and in-
an
more
equities,
all
CENTRAL
GROUP
perience for mutual savings banks,.,
tracti-ve
con¬
in
we
for
vestment in equities is
initial commitment furthermore, as between individual savings banks.
V.
than 15% to 20% in"
^
make
not
$100,000'
annual
to
are
amounts.
likely
is
continuing
tributions
maximum
IBA
vs.
determining
to
whether
or
want
not
to
lessen its interest in
mortgages
even
to
a
tpday,
to
savings
of
invest-
DISTRIBUTORS
o
INVESTMENT
(
f
SECURITIES
limited extent.
Seymour Katzenstein
Hirsch Co. Partner
Bingham .Walter s Hurry, Inc.
Member Los Angeles Stock Exchange
621 S. SPRING-LOS ANGELES
Bateman. Eichler & Co
-
TELETYPE
LA
-
TRinity 1041
224
Investment Securities
Pasadena: 423 Security Bldg.
A
453
-i
SOUTH
LOS
SPRING
ANGELES
—
SYcamore 3-4194
STREET
13
Pasadena
28
MEMBER
LOS
NORTH
GARFIELD
ANGELES
STOCK
Serving Southern California
Seymour Katzenstein
EXCHANGE
On Jan.
1
will be admitted to
Hirsch
&
Co.,
25
Broad
York
York
Stock
Street,
City, members
New
Katzenstein
is
Manager
statistical
of
Exchange.
the
Mr.
of
the
department.
Wagenseller 6 Durst, Inc.
Investment Securities
626
Waddell Reed Adds
(Special to The Financial Chronicle)
HlU
KANSAS
Robbins
bonds and
stocks
is
Waddell &
more
CITY,
now
Mo.—John
affiliated
Angeles and San Francisco Stock
Exchanges
ORLANDO,
Grimm
Avenue.
&
ST.,
LOS ANGELES 14
TELETYPE: LA 68
—
LA 35
LOS ANGELES
STOCK
EXCHANGE
NEW YORK CURB EXCHANGE (ASSOCIATE)
Fla.
become
Co.,
-
MEMBERS:
with
Avenue.
Long has
SPRING
B.
to
Staff
DIRECT PRIVATE WIRE
(Special to The Financial Chronicle)
Los
S.
TRinity 5761
Reed, Inc., 1012 Balti¬
Grimm Adds
Members
1927
partnership in
New
firm's
since
Seympur Katzenstein
—
Murray
affiliated
KIDDER, PEABODY & CO, NEW YORK
S.
with
65 East Robinson
CLAREMONT
PASADENA
REDLANDS
SANTA MONICA
95
06
The Commercial and Financial Chronicle
(2420)
Continued
from
before acquiring any
rights to his share. Such
rights could, and this is common
vested
der such
include
tirement
Plan
ings
in
of,
excess
You will
of
say
from this,
see
$500,000
same
that
20%
on
earnings,
would
be
in
tribution
the
choice
of
the
formula,
main
be definite, and not
bitrary arrangement.
to
It
is
also
ar¬
Treasury require¬
ment that a qualified Profit-Shar¬
ing Retirement Plan contain a
certain
remain
a
pre-determined
provide
This
ment.
be
"
of
way
be
more
credited
a
making
method
been
twice
$5,000.
that,
in
as
incidentally, has
salary plus
a
income
The
the
serve
be
dis¬
the -Fund
to
an
the basis
ability
in
used
to
service
re¬
for
a
reasonable
paid
in
installments,
purchase
Present
If the
length
tion
Nowy let
do,
rea¬
dis¬
por¬
Specialists in Securities
First,
the
of the
United
rectors.
DISTRIBUTORS
•
stockholder
MUNICIPAL
SINCE
U.
S.
STOCKS
would
&
executed
BONDS
mitted
PORTLAND
to
by
be
all
4j
to
and
Board
OREGON
the
your
of
'a')'
~'j'*.a*:'
»•)
the
as
result, the net cost
corporation may be as low
a
40 cents for each
$1 contributed
Plan, and if it is subject to
profits tax, it would be
considerably less. In
the
or
the
case
individual
deduction
(3)
Income
are
An
currently
event
having
he
and
pro¬
comes
profits
employee
his
would not pay any, tax.
To Admit J. L. Borke
off
in
to
is
Stock
W.
Exchange member firm of
ErHutton
in the Trust Fund. When
&
Co.
Burke
Mr.
is Resident Manager of the firm's
Dayton office, 42 North Main St.
First New
Hampshire Corp.
CONCORD,
N. H. — The First
Hampshire Corporation is
being formed with offices at 104
New
Main
Street to
act
as
the
taxed
not
admitted
partnership in the New York
cialists
benefits
N,T Ohio—On Jan. 1,
J. Logan Burke will be
of
tax-exempt.
as
his
un¬
in any. one. year may not exceed
his personal exemptions and other
allowable tax deductions. In that
North
(2)
Trusts
than '< during
Furthermore,
,lQ-year period,
it is quite likely that his income
a
partnership
years.
D A'YT G
Profit-Sharing Plan
fully deductible as an operating
excess
they
•
WrJjji
con¬
a
bracket
der the present method: of
em¬
to the
a
income
working
as
As
the;: employee
are
(1) An employer's annual
is
to
become subject to-tax.
Normally,
a
retired employee is in a lower
not only
accrue
employer but to the
well. They are:
ployee
paid
are
accrue
benefits
in
eral market
municipal bonds.
George H. Wyckoff will be
ciated
spe¬
New England and gen¬
with the
asso¬
firm.
and
the
general
Plan
and
be
tif.
sub¬
<■
*
•
•
'
_
1318
i
>,' *,
Pacific Northwest Securities
approval.
■
AT.
to
is
Partnership,
Agreement
approved
Treasury Depart¬
Wage Stabilization
the
for
such
If
Third, the
Agreement must
Trust
19 27
BUILDING
require
partners.
BONDS
ment
BANK
have
cases
corporate
your
a
their top taxable brackets.
of
ratified
ratification.
firm happens to be a
the Plan
and
Trust
SECURITIES
CORPORATE
of
not
may
v
actu¬
viewpoint there
action
some
'•Co.?-*inc.',
service
no
prietor,
Directors
provisions
of
there
are
generally
it is
have the
of
De¬
prepared and
Board of Di¬
your
to
Board
charter
JUNE S. JONES & CO.
adopted.
Treasury
be
by the stockholders. In
the
TRUSTS
be
Second,
necessary
INVESTMENT
States
by
tax
a
to
approved
elaborate
there
advantages which
would
must
the
general
you a
WHtwiberg
;1 ' Blytlti
Louis
expenses.
expense.
partment
Pacific Northwest
INVESTMENT
arial
be simi¬
a Plan
and Trust Agree¬
meeting the requirements of
ment
because
for
records and
Profit-Sharing Re¬
a
plan
of
need
no
tribution to
give
me
tirement Plan
DEALERS
type
an¬
larly distributed.
idea of how
Wi W.
&
to pay him over a
be
may
may
occurs
The administration
From
of his account
which
ministrative cost than any other
than retirement,
death, the vested
or
earnings
Pension Plan is created
Profit-Sharing - Plan is
much
simpler and involves less ad¬
controls
wage
a
lump
one
or
a
(c)
dis¬
insured
an
prior service
any
and funded.
payable.
employee leaves for
other
sons
ability,
UNDERWRITERS
when
em¬
retirement,
fund
to
employees. This eliminates
current
total
the
benefit
St.
many companies as
it avoids the abnormal drain on
settlements.
employee to remain in
an
The
in
Sons,
hardship for
pre¬
however, prohibit lump sum pay¬
ments, except in the case of death
provided for him. The best
is to
be
may
nuity.
temporary financial independ¬
the
death
or
sum,
quire
factor for length
accumulated
represents
few years of service because of
seem,
be
of
by
ProfitrSharing
Plan.
Edwards
em¬
received
cannot
a
Guy Redman
G.
"■"?
ployee's account with the Trustee
This
method, it would
in
Company,
Antonio
of
have
be
to
Retirement
amount
A.
San
and
benefit
participating
employee
determined
W.
Dittmar &
addi¬
as
ultimate
benefits
immediately, he may be
likely to leave his job after
ence
receiving favorable consid¬
on
would
John D. Williamson
remaining
ployees.
him
the
Another
eration is to allocate
of
much
as
forfeiture
increase
employee's share in the Plan vests
com¬
Thus, the empolyee
making $10,000 annually would be
with
possibly
or
.
pensation.
one
some
forfeitures
tional
methods
location in relation to basic
fully~vested in him,
the
vesting of their share in
Profit-Sharing Retirement Plans
and Pension Plans. They like to
discriminatory.
several
such
fect,
being visualize ownership in the amounts
used today in allocating the con¬ that' are
being accumulated in
tribution to the participating em¬ their behalf. On the other
hand,
ployee accounts. They are: al¬ the employer knows that if the
are
dis¬
em¬
remaining partici¬
pating employee accounts. In ef¬
the whole feel very strongly about
any
FAA
tributed to the
the
in
may
all of his account and the amount
accom¬
tribution among
There
you
permanent
upon
he would forfeit
retire¬
for
allocating the employer con¬
participating em¬
ployees, and this formula cannot
that
ac¬
adopt
you may
death. Should the
or
his account is
plished by the gradual vesting of
employee credits. Employees on
formula
MINNESOTA
ployee's service terminate before
a
until
best
may
or
ability
retirement
service
in
VALLEY
length of service, however, there
would be full vesting at retire¬
benefits,
the employer may logically feel
that benefits should accrue prin¬
cipally to those employees who
re¬
an
nu¬
of
TEXAS
that
service, the par¬
employee would have
again,
vesting formula
ment
purpose
MISSISSIPPI
year
so
vested interest in his
100%
a
Profit-Sharing Retirement Plan is
quirement being that the formula
must
main
years,
consider best suited to your partic¬
ular organization.
Regardless of
unit credit method.
the
10
count. Here
variations, particularly the
Since
would vest each
next
ticipating
a
Length of Service of Employee
con¬
a
has
method
Either
service.
only 20% of $300,000, or $60,000,
or 6%
of payroll. The Treasury
Department
will
permit
wide
latitude
This is known as the
method. As an ex¬
ample, one unit is given for
merous
10%
the
CHAIRMEN
after 15 years of
some¬
based
net
contribution
the
credit
unit
after,
for
each
$100 of salary plus one unit for
net earn¬ each year of service. This method
$200,000. gives some weight to length of
formula
a
service.
of
Un¬
circumstance, he could
Profit-Sharing Re¬
what like this:
the
deductions.
tax
as
a
in his
IBA GROUP
practice, be given gradually, for
example: no vesting rights for the
first five years of service. There¬
Employee's Profit-Sharing TrustsXeytoSolvingRetirementPioblems
allowable
Thursday, December 18,1952
time
of
11
page
...
.
,
•
"
Summary
To
sum
(1) In
ment
utes
up
a
nual
profits
and
to
it" is
Trustee's
ployee's accounts based
pensation,.-or
ment
table
'
-
his
account
to him.
wage controls
*
*
WILCOX
re¬
in
the
becomes
V
•
*•'
com¬
Seattle
-
•
•
i
'-V
5
;l"v
;■
a
Telephene Main
Member
Federal
*
Insurance
.tions
the
Teletype SE 489
Deposit
Corporation
the
'
X+>':■*
p*
•
'
A'
>-p'■'
-
---.A £ ':A;A'
V':r'{•.^ * Caa-:a
Plan
insured Annuity with his share.
(3) Some of the advantages of
a. Prof
it-Sharing Retirement Plan
are:
> ; A ~V'v
:A
(a) It overcomes the objecto costs of
as
mitment
Washington
3131
equal annual
However,
a'A.I' Pi'
~t-i
-y
present
f
;
BOND DEPARTMENT
Seattle 4,
10
"*•
Profit-
it must be paid to
least
-
%
an
-
-
at
:
mdy provide for the purchase of
First
National Bank
tn
installments.
A"-'
Telrty^ PD
Tetetyp*PD 280
and
distribu¬
Under the
(^
Awv*<."£
•
him
'pi
BUILDING-/'
PORTLAND 4,
Bell Syrtem
f
on
compensation
Sharing Trust
„
INCORPORATED
irrevocable
an
the
sponsibility to invest the funds.
The funds placed in the Trust are
allocated to * the individual : em¬
Municipal" Bonds
■*
BLANKENSHIP, GOULD & BLAKELY
'
Plan the employer contrib¬
a
stated: percentage of an¬
trust
State and
briefly:
Profit-Sharing Retire¬
Pension
employer's
a
fixed
Plan.
com¬
A'AHE
SSASc§M |p:p||§i||;if
investment securities
American Bank Bid;.
Pi>rtl*«i5LOrsjon
Since
contribution
"Siv-c- *-
is
■
,■.'
geared to profits, his obligation
to
contribute
is
limited
to
v..
A"
a
■
percentage of profits each year.
Hence,
no
profits,
no
contribu¬
tion.
\~Afr
(b)
The
employer
does
not
A. T.
T.
»A
•
J?
Teletype PIT 254
ff v
V:
IV-* 4
Number 5178
yolume 176
Continued
from
.
The Commercial and Financial Chronicle
.
.
whenever
municipal
justifiably
say to yourselves that
you are
making your small contribution to
the preservation of those unalien¬
able rights of free men which
12
page
bond
Value of
Municipal Financing
Preserving Local Autonomy
Iii
in
Russia
lites.'- '
■
or
•»
v
satel¬
in any of dtis
V '*
■:
vf
•
"it
'*
.*»•
'
-
_
"S«-
"
Importance of Keeping
-
Municipalities Virile.
I hope what I have* said
illus¬
of
vital necessity
trates the
(2421)
pre¬
Thomas
the
the
state
National
the
nor
of
Bank and Insurance Stocks
By H. E.
This Week
Independence.
Govern¬
serving the rAmerican municipal¬ ment plays any part in this op¬
ity as a virile organization, and eration. It is true that the state
I will now attempt to explain to
enacts laws regulating the manner
Bond Marketers
to
there
is
have
something
more
Washington
the
Bridge
why I feel that the present in which the municipalities may
method of financing the munici¬
issue their bonds, but in this re¬
palities of this country plays such
spect the state simply lays down
a
vital
part in preserving the the general rules of the game.
autonomy of our municipalities
From that point on the game is
and through those municipalities
played by the municipality and
the
liberties of the individual,
private parties. When a munici¬
which we are so apt to take for
pality finances its operations in
granted.
:
this manner it does not in any
;^
If American municipalities are
way impair its autonomy.
you
^
to
remain
autonomous
they must
be able to finance themselves free
from
control
Government.
National
the
by
Und^y the existing
system municipalities in this coun¬
try finance themselves in three
by taxes which
they levy
themselves, by bonds which they
ways;
issue
isell
and
public,
states
-
investing
from
grants
by
or
and
the
to
National
the
Government.
municipality in agnation
which is growing as rapidly as
this country is growing, finds it
necessary to construct public im¬
provements, many of which re¬
quire immense amounts of capital.
Every
When they finance these
themselves
ments
Federal Government
improve¬
with
)taxes
as
Financing Source
New let
municipality
the
when
pens
re¬
sorts to the National Government
financing of its operation.
concrete illustration with
for the
As
a^
which
all, no doubt,
somewhat familiar, let us consider
the financing of a housing pro¬
ject in any community under the
national housing laws. The mu¬
nicipality sets up, as a general
rule, a housing authority. The
housing authority enters into a
contract with the Federal Housing
are
you
Administration
National
which
under
will
Government
stop to think that not
the
and
of those
one
hard
work
and their
taken
0
by bond dealers
employees and the risks
The bond deal¬
by them?
of
ers
done
this
George
built the
Bridge and
Washington
just as much
engineers and the steel
workers and the sandhogs. Very
few public improvements in this
country would exist today were
to
the
their
which
story about
men
what
he
he
the second
the' latter,
ticularly
give
me
concrete
municipality de¬
a
the
a
water works
-system and p r o p o s e s to issue
bonds
the
the purpose
for
of raising
capital, the first
takes place, usually,
necessary
thing
that
is determined for it in
Washington. The Federal Housing
Administration dictates the design
thing
of the
construct
to
a
you some
illustrations: If
sires
they
lose
of their autonomy.
measure
Let
par¬
project and its cost. It tells
housing authority when it
sell the bonds, what the ma¬
of the bonds
shall be,
may
turities
interest
the
what
and when it may
sale.
for
It
even
shall
rate
be,
offer the bonds
determines the
discussions between, the muni¬
newspapers in which the notice of
cipal officials and local organiza¬ sale shall appear, and also decides
tions, such' as the Chamber of whether or not the authority may
Commerce, taxpayers' associa¬ •accept bids which it receives pur¬
tions, and similar organizations of suant to those notices of sale.
the people of that community. In When the bond dealers interested
are
these discussions the character of
the improvement, its
in
bidding for those bonds, or the
location, the
amount of money to be raised for
its construction, its design and all
necessary
other details of the improvement
one
discussed, and these discus¬
sions are given widespread pub¬
are
licity in the local press.
Public
'sentiment regarding the improve¬
ment is crystallized. The next step,
usually, is the employment of ex¬
perts to assist the municipality in
the
development
Engineers
are
cialists in that
i business
are
of
the
project.
employed and spe¬
particular field of
retained,
and
ulti¬
specialist in munici¬
pal law, called a bond attorney, is
mately
some
i-etained to advise the city regard-
attorneys who are called upon to
pass
much
will
you
1952
ing
noble
som(e
the George
instructions
with
ties
with
to
York
held
R.
son
1
All of these specialists are re¬
tained
by the municipality itself.
They are the agents of that mu¬
nicipality. They discuss the matter
officials of the
with the
munici¬
pality and to the best of their abil¬
ity advise the municipality how
the improvement should be con¬
structed and financed in order to
are
which
part
has
of
been
a
de¬
vised by the
American people to
assist municipalities in 'his nation
to
finance
of
ently
themselves
the
State
independ¬
and
the
Na¬
tional Government, and you are a
offered for sale and in¬
bankers
bid
them.
to
Then
are
The
function
the
is
invited
to
investment
to
assemble
capital which the municipal¬
ity requires for the construction of
that improvement. They are pri¬
vate
individuals
and
they
ap¬
proach other private
individuals
and
these municipalities
it unnecessary for
depend upon either the
making
them
States
you
to
or
are
the Federal Government
contributing to the free¬
dom cf the kidiv 'dual,
much
we
a
par. of
take it for
1.00
1.75
62.9,
Continental
2.50
2.50
4.74
2.80
3.00
4.71
59.4
Federal Insurance
2.35
2.20
3.70
63.5
Fidelity-Phenix
2.80
3.00
5.05
55.4
Fire Association of Philadelphia
Fireman's Fund
2.70
2.60
5.72
47.2
1.60
1.60
3.09
51.8
Firemen's
0.85
0.75
2.84
29.9
2.00
2.30
3.41
which is
so
American life that
granted. Therefore,
,
52.7
Continental Insurance
58.7
Casualty
-
(Newark)
Glens Falls Insurance.
A
i;
..
43.6
Home
stimulating
if
Insurance
1.80
1.80
2.75
65.5
Insurance Co. of North America
2.50
2.00,
4.52
55.3
Phoenix Insurance
3.00
3.00
5.88
51.0
St. Paul Fire & Marine
0.85
0.775
1.56
54.5-
Security Insurance
Springfield Fire & Marine-.
U. S. Fidelity & Guaranty
1.70
1.60
2.57
66.1
2,00
2.00
3.37
59.3
2.00
2.00
3.91
51.2
Westchester Fire
doing
was
you
are
like
or
of
the
of
of
New
1.00
1.00
1.65
60.6
•
It should be pointed out that the above figures do not, in many;
instances, reveal the current situation with respect to dividend
rates.
Dodge
Co.
was
for 1953.
serve
Others elected
Vice-
were:
P
r e
si d ent,
Richard
creased the rate of payment.
urer,
Jesup
C.
Stroud
of
Union Securi¬
ties Corp.
Also Chairman,
publications and
&
Co.; Chairman,
committee, William
Goedecke of Smith, Barney &
ris,
Upham
membership
S.
Co.;
Chairman,
Hanover Fire also increased its quarterly payment
beginning ,
January distribution. Heretofore, Hanover has been pay-r |
ing 40 cents a share each quarter. The new rate is 45 cents, indi-f -j
eating payments in 1953 of $1.80 as against $1.60 previously paidL !>
There have also been several companies which have announced
intention to
an
quently,
Altschui
of
Arthur
Chairman,
William
Herrick
Lehman
education
F.
Haneman
Bros.,
G.
and
committee,
of
Butler,
& Marshall.
an
split their shares
adjustment is made in the cash payment when the
York
and
new
These
show
increases
in dividends together with prospective in- ;
give assurance that total 1953 payments wity j;
further gain.
(. jj
next
creases
a
year
With H. Hentz Co.
(Special to The Financial Chronicle)
MIAMI
with
H.
Street.
BANK
BEACH, Fla.—James B.
Williams
has
become
Hentz
Mr.
&
Co.,
Williams
and
associated
INSURANCE
414 71st
previ¬
was
STOCKS
ously with J. R. Williston & Co.,
Laird, Bissell & Meeds
Chronicle)
E. R. Sanders
Opens
(Special to The Financial Chronicle)
MIAMI, Fla.—Elmer R. Sanders
209 South La
members of the New
Midwest
Stock Ex¬
j.
are distributed.
The Agricultural Insurance will vote on f
2%-for-l split in February and Boston Insurance just approved
j;
a 2-for-l split.
Also Continental Casualty is to pay a 33%% stock |
dividend.
i {!
CHICAGO, 111.—Elmer C. Rob¬
erts has been added to the staff
changes.
j
Fre4 {
shares
Cruttendsn Adds
Salle Street,
stock dividend.
a
Bache & Co., and A. M. Kidder &
Co.
(Special to The Financial
of Cruttenden & Co.,
or pay
a
White, Weld & Co.; Chairman,
committee,
a
Phoenix
quarterly. The payment to be made Jan. 2, 1953 will be f
cents, indicating that the total next year may be $3.40 a share !
compared with $3.00 paid in recent years.
entertainment
program
j.
with the
committee, J. Glencross Gallagher
of
;
cents
First Boston
R.
Thus the indicated
further increase next year is possible.
Insurance Company is another company thati
recently increased the quarterly payment beginning with the first f
distribution next year. Previously Phoenix has been paying 75 \
The
as
Treas¬
David
share.
;;
distributed,
&
Corp.;
a
compared with $2.70 paid in.
Firemen's Insurance of Newark in October increased the semi-
Reynolds
of
as
annual payment made by the company from 40 cents a share
to;
45 cents. This would indicate a minimum payment next
year of j
90 cents. Because of the conservative portion of earnings
being;
85
Cullum
$3.00
1952.
of
J.
In October the quarterly declaration
increased from 65 cents to 75 cents
rate for Fire Association is
W.
Francis
words, several of the companies have increased
dividend payable Jan. 2, 1953 to 60 cents a share from 50 cents.
Thus, the payment indicated for 1953 is at least $2.40. In recent
years an extra of 25 cents has been paid at the year-end to bring
the total for the year to $2.25.
Fire Association is another company which has recently in¬
Baldwin
Co.; Secretary,
In other
their payments beginning with the first quarter of 1953, so
thatj
the current indicated rate is above the payment made for the full;
year 1952.
For example, Aetna Insurance recently increased the quarterly
17, Nel¬
Clark,
elected
of
tonomy
60.9
1.10
Camden Fire
50.8
President to
pality, and by preserving the au¬
vestment
the
mechanism
you
vital factor in preserving the au¬
community.
bankers'
bonds
tonomy of the American munici¬
valuable
that
for
en¬
are
the
most
of
are
you
gaged in the marketing of munici¬
pal
4.27
publicity, Lewis B. Harder of Har¬
citizens
ibe
bonds
when
Therefore,
2.40
55.9
&
will of the Na¬
tional Government.
improvement.
r
2.60
Insurance
2.95
December
on
Jesup
Nelson
ties to oppose the
50.8
Boston
54.0%
2.86
Association
Investment
tween the citizens of the munici¬
expect the local housing authori¬
'
56.2
1.97
6.88
meeting
com¬
]to finance the construction of the
6.23
1.00
was
annual
a
the mechanics of the issuance
ing
$4.17
3.50
1.00
1.50
Officers for 1953
the
At
comply
of the bonds which are necessary
$2.25
3.50
American Insurance
3.00
N. Y. Inv. Ass'n Elects
local project
is taken over by the national ad¬
ministration. In any conflict be¬
of
control
$2.25
Agricultural Insurance
1.60
the Lincoln Tunnel.
passed
short almost
them. In
plete
to 1951
Earnings
1.50
structure,
by the Federal authorities to
officials of the local authori¬
on
the
1951
3.00
Washington Bridge
officials
are
1951
Ratio »r
1952 Diva,
1.60
phase of munici¬
housing authority but
officials, and the
conclusions reached as a result
conferences
invest-
Earnings
Hartford Fire
pal financing, that you are build¬
palities and the National Govern¬
ment it would be utterly futile to
;
any
of the local
these
casualty companies,
Hanover Fire
realize, when
working in
with the Federal
of
cautious attitude with respect to dividend payments.
,
their validity, find it
consult with some¬
regarding the financing, they
with the
though investment
said
more
to
consult
even
ditch; he asked
a
upon
not
do
work
a
Aetna Fire
their citi¬ annual contributions to aid in the and he said he was making a liv¬
zens or by means of bond issues
construction of the housing pro¬ ing, and he asked the third man
which they sell to the investing
ject. From that point on the mu¬ what he was doing and he said
public, they preservetheir in¬ nicipality has very little to say
he was building a cathedral. I
dependence, but when they resort regarding the construction of the
to grants or loans from'the state
think
that you
will "find your
project or its financing. Every¬
the Federal Government,
Thus,
ment
which they levy upon
or
year..
Great American
what he
man
unprofitable last
Dividends Paid
man
doing and he
was
digging
was
been numerous.
This is possibly a
underwriting operations rather than,
In other words, underwriting operations for
of
years together with the 1951 investment earnings and the
percentage of earnings paid out are shown on a per share basis
ex¬
an
have
trend
for 24 of the major fire and
by telling a
who saw three
a man
an¬
In the tabulation below, the dividends paid in each of the past
mean
swinging pickaxes in
others have
split the shares in.
two
by
cavation. He asked the first
actions
the
of
were
provide
invest¬
ment bankers and their organiza¬
tions. I suggest that you keep that
fact in mind in the daily routine
of your business.1" Your point of
view toward your work is im¬
port not only to you, but to the
whole community. I can best il¬
lustrate what I
payments While
their intention to
or
results provide ample coverage for the dividends paid by most of
the major companies, underwriting operations have tended to
the contributions made
construction
extra
or
the different groups have shown some improvement this year in
contrast to the unfavorable experience of 1951. This is primarily
a
reflection of a better rate structure on certain casualty lines
country
the Lincoln Tunnel
as
the
investment results.
ever
in all probability
exist had it not been for
the
make
you
cash
future.
reflection
improvements
would
it not for
consider what hap¬
us
Did
Tunnel.
Insurance Stocks
Most of the increases in cash declarations have been modest
-
Lincoln
increased
near
although
the George
as
-—
•
nounced stock dividends
municipal bond which is also
important to keep in mind. You
have all seen great public im¬
a
provements, such
•
Dividend action taken by fire and
casualty companies in recent
months has been generally favorable. A'number of institutions
Role of Municipal
But
JOHNSON
in
mentioned
Jefferson
Declaration
of
purpose
a
can
•
assembling
the capital which the municipality
will require. I think it is very im¬
portant for you: to notice that the
assembling of this capital is pure¬
ly a private operation. Neither the
with
sell
you
think you
I
97
is
engaging in
ness
from
a
offices
securities busi¬
at
west 100th Terrace.
1007
North¬
Members New York Stock Exchange
Members
120
New
■
York Curb Exchange
BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-8509
Bell
Teletype—NY 1-1243-49
(L. A. Gibbs, Manager Trading Dept.)
Specialists in Bank Stocks
98
The Commercial
(2422)
Continued f rom page
It
14
that
c
plant,
panded
industrial
where
accelerated
has not been in the
picture. Along
retentions
normal
with
even
amortization
of
earn¬
ings these reserves are estimated
the great
to be sufficient to carry
bulk
financing
industry
of
re¬
find
will
We
ket.
favored
former
quirements for plant and equip¬
during the remainder of the
finance
cannot
help
nesses;
and
will
needed
be
institutional
this
for
certain
are
funds
purpose.
requirements of in¬
But the total
dustry
busi¬
much
be
to
So
government borrowing, I have
not
directly taken into account
governmental
said
will want the same, or an
only slightly smaller, volume of
ing
it
than
funds
commercial
in
had
has
building,
1952;
prob¬
after
ably a slow start due to materials
difficulties, will want considerably
more
than it
was
permitted to
-seek in 1952. Farm loans will be
slightly
borrowing
utilities
up;
remain
will
fairly
constant.
In¬
policies
Board
interest
loans
be
be larger
of demand for institu¬
State, local and na¬
in
and
1952,
of
long-term
for
certain to
considerable part
a
will have to be
funds.
Local
funds
schools, roads, and other pub¬
lic improvements
will continue to
here, however, the prospect
the defense program will
that
is
stretched
be
stepped-up
deficit
out
that
and
will
less
be
than
rather
the
actual
than
many
This
On
balance, the present outlook
that private demand for bor¬
rowed funds during 1953 will not
be
in
excess
the
that of
what
that
of
total
of
1952, but
including
demand,
government, will be
some¬
greater. The increase, how¬
does not promise to put a
ever,
substantial
strain
the
on
money
supply. On the contrary, because
of the continued growth of institu¬
tional
savings,
the
outlook over
whole, is for a
noticeable easing of the present
tight condition.
the
year
as
a
No marked
to
change, however, is
expected during the early
be
be
advancing the bulk
The
one.
field
of
I
of
may
loan
that
our
will
be
than
I
the
on
more
have
Your
restoration
ses¬
be
the
of
de¬
savings
pressing
inde¬
this
and
is
move
certain
bring under critical review the
whole
HHFA
set-up. Even larger
questions that
in
1954
bound to arise
are
if not in
1953
the fu¬
are
ture
policy in respect to Federal
subsidies for public housing and
urban redevelopment and the fu¬
only on the clear
lapse in functioning
a
institutions,
but
accepted,
once
government.
An
for
lending
opportunity such
offers
ent
should
one
no
will last
can
hesitancy in invoking
vantageously
phasizing
I
government.
can
how
long
it might
it
so
ad¬
again. By
that
come
the
the pres¬
be
lost,
as
not
say
when
or
of
no
power
em¬
all
purposes
activity
provide
to
Public
istration, while standing firmly
this pressure, recognized
its threat
confident
tration
/iews
that
does
the
not
Since
that
have
is
fixed
be
to
done
n
respect to these, and I have not
encountered any well worked out
olans for them floating
around
inywhere else.
be
of
one
respite from the 20-
a
trend toward
a
public home
credit system
of
one
sudden
a
the
sirable thing. There is
early
the
reason
why
rather
reversal
believe this is
corporate
another
will
year
practical
no
should
we
of
de¬
a
rush
remove
A
its
cause.
Wisconsin
wholesale
,
Change in
Public
Service
While
two
Corp.
Conventional
an
the
events
have
years
the
of
pointed
past
the
up
in nine
energy
has
area
estimated population of 543,000.
The region is outstanding in the
production
milk,
of
cheese,
for processing,
peas
and
well
as
as
funds
to all
sections of the
try. The seasons for
lie
laws
in
these weak¬
barnacled
our
in
and
coun¬
the
state
short-sighted
products, limestone, cement, fur¬
niture, bathroom fixtures, kitchen
enamel v/are, light and heavy ma¬
chinery and other metal products.
rivalries among our several kinds
In
of
Michigan and
lending
The
is
institutions.
first
thing that
covering
mittees
is
needed
revision
widespread
a
laws
of state
foreclosure.
of the
American
sociation—stimulated, I
Bar
ade ago
laws
prepared
this
on
As¬
may
say,
dec¬
a
series of model
a
subject
been recommended
which
have
for enactment
the
port communities
number
of
has been
sufficiently interested to
anything about it. But the in¬
do
struments
are
ready for
the will to
ever
Our
state
move
when¬
use
is aroused.
laws
covering loan-tovalue ratios, geographical limita¬
shipyards,
state
our
laws
were
con¬
of
out-of-state
fishing, boat¬
reasons
I
do
for
not
government
re¬
federally
op¬
erated
system of mortgage insur¬
ance, but I suspect that the need
might be of a different and more
limited
sort
than
people
many
consider it to be.
now
I
not
am
But
that
It
has
Wisconsin
million
been
Since
estimated
receives
income
annually
from
about
vaca¬
4.000
of
the
State's 8,700
lakes are in counties
either fully or partially served by
the company, much of this tourist
income is probably received in the
company's service
seen
say
we
have
recently
glaring present distor¬
tions in the market can be
readily
remedied
Easing of Money Market
The general easing of the whole
is
market
money
felt in the
certain
to
mortgage part of that
market. Banks and insurance
panies
be
com¬
housing
the
loans, while the savings and loan
associations, having no alterna¬
tive, are bound to pour their in¬
politics,
in
likely
into mortgages.
generally are not
rise beyond present
to
levels and in the latter part of the
year may
although
the
the
1950
recede at least slightly,
nothing as happy from
borrower's
point
of
view
as
conditions
that prevailed in
early 1951 is to be ex¬
In other words, we can
and
pected.
hardly expect to reach
a
situation
and
program
that
pro¬
either of events
pressures
few
we
Some
ing
of
before
I seized the
a
sist
at
seriously
to
or
least
a
think
over.
may recall that,
privilege of speak¬
you
when I had the
in
take
can
months
things
assets
rates
rate
enlarged. The opportunity
finally come when, without
allocations of funds for mortgage
crease
interest
tially
has
Interest
the
is not likely to be substan¬
gram
likely to increase their
are
by
change. FNMA has sufficient
funds to handle the current defense
three
you
years
opportunity to
now
taking
ago,
engage
little exhortation. I can't
re¬
similar advan¬
tage of the situation. Three years
ago
I
urged
a
the
strengthening of
methods
loans.
I
of
want
broadening and
our
conventional
making
to
urge
mortgage
that again.
precisely
what
the
details
The company has been active in
of
all
in
the
connected
were
pany's
farms
lines.
Not
service
the
to
com¬
single
a
rural
lines to
a
minor
Customers,
have
all
extent..
sales
shown
and
(
yond
achievement
do the
if
effort is be¬
the
will
to
power
types of farm work
ously performed by hand.
many
age
to
previ¬
Aver¬
annual use per rural custom¬
increased 178% between Dec.
31,
1940
and
June
30,
1952,
business
be
may
found
in
the
levels of usage already reached by
certain
rural
customers
of
the
farm
In
several
customers
have
instances,
been
between
the
maintainance
suc¬
of
a
legitimate and desirable competi¬
tion for
of
for
business and the seeking
exclusive business
advantages
one
group
enactment
or
enactment
of
kind
of
or
the
another
by the
prevention
legislation.
intervention
in
of
This
reverse
ural
gas
of
plants
total
kwh
hydro
distributed is purchased
the Michigan-W i s c o
from
Pipeline
n s
i
n
Company.
Capitalization is 50% debt, 16%
preferred stock and 34%
stock equity.
standing
common
The amount of out¬
stock
common
has
re¬
cently
been increased by 218,070*
shares sold for $2.6 million to the?
tion
Gas
plan.
pany
&
stock
1951 this farm used 44,310 kwh.
The company has also taken an
important part in the "Trees for
Tomorrow"
movement.
as
public
carrying
ation
timber
conservation
Other
private, as well
agencies,
have
been
on a substantial reforest¬
program
shares,
$2
and
later,
year or
with the object of
dissolu¬
a
total
of
mostly now in
public. The com¬
sell $7-8 million
million
preferred
with
stock
common
Electric
This makes
expects to
bonds
possibly some
financing late next
early in 1954.
Earnings of,$1.44 in the twelve
months
ended
on
shares,
the
endar
Sept. 30 were
old
number
year
shares
for the
on
cal¬
The budget
1952.
of 13c,
dent C. E.
$1.10
of
but $1.32 is estimated
timate for 1953 is $1.45, or
crease
re¬
the
increased
an
es¬
in¬
according to Presi¬
Kohlhepp. The present
dividend
maintained,
rate
and
if
should
necessary
be
to
protect it the company would ask
in
a
tne
rate
rate
time
some
electric
using
18-20,000 kwh annually and in one
cessful, however, it will be neces¬
case usage has reached about 32,sary for all types of lending in¬
000
kwh.
At the University of
stitutions to recognize a common
Wisconsin an experimental project
interest and a common
danger. It known as the Electric Research
is safe to say that the inroads of
Farm carries on a continuing pro¬
government are paved by the dis¬
gram to develop new, electrically
unities of private business. I think
operated equipment for more fully
the time has come to
distinguish mechanizing farm work, and in
In order to make the effort
steam
34%, the re¬
maining 8% being purchased. Nat¬
wants to
of
company.
job is present.
and
plication
believe I have had enough pected by the management to con¬
experience to know the directions tinue. An indication of the poten¬
in which the
changes lie. I have tial growth in this phase of the
no
miscellaneous
about 58%
trend in recent years with the ap¬
of
enough changes made to
with
company's
output,
improving
an
amounting at the latter date to
legislation should be. 3,232 kwh.
This very favorable
beyond my competence. rate of increase in farm use is ex¬
be convinced that
The
produce
for
revenues
needed state
is
26%,
ported
area.
I
also
to
of
small,
about 10%.
the hands of the
er
attempting
trial
2,218,070
imply that in
the final analysis there would
main oo need for a
27%
19%,
and
industrial
18%-,
large commercial and indus¬
activities.
priately modified along these electric
cooperative exists within
lines, we should have provided the
company's service area, though
a broader market for conventional
two of them, operating outside the
loans and have lessened one of
company's territory, infiltrate its
the main
about
over
commercial
and
ing, swimming and other vacation
96%
appro¬
rural
Standard
thousands
area
visitors annually for
area
If
contributes
revenues,
parent, company, just prior to the
consummation of Step I of the
tioners.
strong group
Green Bay are a
on
commercial
Much of the northern
happened because
This
than
the
tract
by state legislatures. Nothing has
The most
funds
Corp.
supplying
tains lakes and streams which at¬
$565
no
Lake
on
coal, oil and other port facilities.
Com¬
by Federal attorneys—over
of
experienced.
and
their
serve
vigorous initiative.
a
vigor of the conventional lending number of other farm and
dairy
methods, they have also revealed products. Industries in the terri¬
more clearly than ever the weak¬
tory
include
paper,
pulp,
food
nesses
that
prevent
them from products, aluminum
goods, malt
providing an equable flow of liquor,
lumber,
leather,
wood
into
housing
ability to
needs for credit with broad vision'
and
service
electric
communities. The service
Lending Methods
mortgage legislation. The outlook
is good for at least another
year.
of
to
people its determi¬
raw
material re¬
serves
prosperous farming
areas quirements of the industries using
lending in Wisconsin as well
as the cities
forest
products
on
a
sustained,
program, have resulted from pub¬
of Green Bay, Wausau, Oshkosh,
yield basis within Wisconsin, im¬
lic conviction of the inadequacies
Sheboygan and others. The terri¬ proving the recreational industry
of the private order. To be sure,
tory
consists
of
about
10,000 and providing watershed protecy
government resistance to outside
square miles in north-central and tion.
.•
••; ' - '
group pressure steadily grew less
northeastern
Wisconsin
and
an
About
82%
of the
as
the years went by. Neverthe¬
company's
adjacent part of upper Michigan.
less, I think that the principle can Retail electric service is furnished revenues are derived from elec¬
tricity, 16% from gas and 2%
be accepted
that the only cure in
280
communities,
retail gas from
bus service.
Residential
for government intervention is to
service
in
19
communities
and
quarter, however, there is
a
good probability that we shall
begin to have an ampler supply
round
and
demonstrate
can
of FNMA to the VA direct
intrusion.
By and large the next
nation
Wisconsin Public Service
time, almost all the
interventionary steps that have
been
taken, from the expansion
Adminis¬
new
yet
what
about
am
and
By OWEN ELY
review and modernization.
I
it
American
it, invented the FHA.
residential
But
the
Utility Securities
and, in order to divert
role of government
in re¬
spect to the secondary market for
mortgages.
fraternity can assume a
leadership that has long passed
from
funds
transactions. The Admin¬
new
tions, and limitations on branch promoting rural electrification
banking also could stand some and, as of June 30, 1952, over
ture
.Thursday, December 18,1952
..
ends by hamstringing rather than
groups have in common and by
helping the market and leads only uniting on the accomplishment
to positive moves on the
of these common
part ofobjectives, the
against
on
con¬
ac¬
ordi¬
instance
Chronicle
the real estate and building inter¬
ests in 1934 for an extension of
the
pendence of the Home Loan Bank
than
borrowing during
months. Sometime in
for
with which
come.
that trend. I
second
many
look
is
friends will
ably
in
fact
moves
porate savings heavily and prob¬
increase
use
June
you
not
Congress. Later
scribed
or
and
during the impending
mortgage
some
and
do
plain
drastic
ind
con-
activity is well down
period, will be to draw down
cause
feel
government
private
is
attitude
Financial
vividly remember the clamor from
effort
I
outlast
Administration
cerned
to
the
nesses
list of things
the
year
cor¬
will
that
sure
of corporate tax payments to this
to
hurt.
credit and the
on
major revolution,
part of the year. The effect of the
Mills plan, in
a
Board,
have earlier contemplated.
that
to
stand-by basis, if at all.
hardly a forecast of a
on a
sion
Even
is
only
substantial bite.
a
there
clearest
defense
be
Federal rent
lapse on April 30,
materials
new
and
continue to take
the
on
the
areas,
the controls
of
substantial, while the defense
foreign aid programs will
be
only
that
taken
and will be given
otherwise
will
irol
borrowers in 1953 than
of this borrowing
the
VA
and
them
expect
I
program
FNMA
defense
does not exhaust
tional governments are
FHA
on
confident that, outside of the new
Mortgage Investments
sources
taken
restore
first
our
appropriated for the VA direct
lending
would
the
expect
also
that the
public housing program will sub¬
mit to further curtailment, that
additional funds are unlikely to
evidence
tional funds.
for
confirmed
be
I
be
to
as
marketability.
dustry, however, may ask for con¬
course
will
rates
so
siderably less.
This of
of
will
strengthened.
action
that the
the Federal
instance,
Reserve
hat
action.
governmental
present
and
in¬
some
on
to
that, the evidence
on
although
based
for
expect,
to
Institutional Funds Seeking
is
of
ferences
the
what I
influences
market,
money
have
I
is this: residential build¬
reference
a
resort
the
established
as an
American
in
HOLC
to
the demand side
of the finance picture, the outlook
for 1953
in
of
for
Market
except
far,
reduced.
Summarizing
position.
Money
obviously
new
loans to their
Governmental Influences in
decade.
reserves
loans
guaranteed
or
restore these
would
ment
Accumulated
rate of
a
insured
on
mar¬
however, anticipate
41/4% to 4,//2%
can,
where
one
the
evidence of
wide and ready
a
is
narily
home mortgages at par
where 4%
of
a
tion
Mortgage Finance in 1953
)
be taken
can
feature
and
increase.
since
increase
unlikely for
the.
company
"fatten" the book value.
The stock will
on
An
appears
probably be listed
the New York Stock Exchange
within
a
currently
19%.
few weeks.
It is selling
over-counter
around
Number 5178
Volume 176
.
.
The Commercial and Financial Chronicle
.
(2423)
The
Indications of Current
Business
following statistical tabulations
latest week
Activity
week
or
or
month available.
month ended
Latest
AMERICAN
stee!
Equivalent
Steel
operations
(percent
oil
Week
Ago
and
gallons
(net tons)
<;10G.3
106.5
2,196,000
*2,207,000
2,212,000
Dec.
output—daily
(bbls.
average
6
6,476.550
6,668,550
6,612,300
2,097,000
6
116,309,000
7,143,000
6,860,000
23,518,000
24,107,000
23,465,000
22,381,000
6
2,894,000
2,842,000
2,713,000
2,705,000
Dec.
6
10,216,000
10,939,000
10,376,000
10,113,000
jec.
6
8,785,000
b,U42,UU0
6
129.470.000
126,333,000
Distillate
oil
fuel
ASSOCIATION
(bbls.)
oil
OF
(bbls.)
CIVIL
!
:
8,4(8,UU0
121,374,000
124,063,000
6
31,142,000
32,190.000
33,383,000
6
114,362,000
117,990,000
120,146,000
6
50,658.000
*52,401,000
53,602,000
U.
S.
Private
Public
Y
of cars)
CONSTRUCTION
6
719,159
670J67
829,198
6
642,022
654,949
717,168
694,708
Dec. 11
Dec. 11
construction
—Dec. 11
municipal
$411,529,000
(U»
S.
BUREAU
OF
220,700,000
249,420,000
STORE
FAILURES
-
1
113,576,000
123.478 000
162,109.000
SALES
57.382.00G
78,856,000
90,479,000
44,617,000
71,630,000
—Dec.
6
10,035.000
9,000,000
9,900,000
746,000
653,000
929,000
steel
(per gross
Scrap steel (per
METAL
96,400
*81,900
84,500
PRICES
6
194
138
118
INDUSTRIAL)
DUN
—
(New
8,140,257
J.
8,165,463
157
>•
9
Dec.
ton).™—
7,883,873
and
9
Dec.
—
9
120
148
Public
143
4.376c
$42.00
4.376c
$55.26
$52.72
$42.00
$42.00
$42.00
24.200c
24.200c
34.725c
34.850c
27.425c
121.200c
121.375c
14.000c
14.000c
121.250c
14.125c
—
Dec. 16
18.800c
19.500c
96.58
96.88
96.93
97.32
103.52
112.93
All
Dec. 16
113.50
112.19
112.37
112.00
109.24
108.70
107.62
104.14
S.
BUSINESS
Aaa
103.64
102.13
106.39
104.14
109.60
108.52
Wholesale
112.56
212.37
112.19
113.31
Retail
2.74
2.72
2.72
3.18
3.20
2.97
2.98
3.01
Groups
—Dec. 16
3.06
121
3.24
3.53
3.33
3.37
3.50
3.19
3.19
3.19
3.06
3.04
3.05
409.9
188,958
372,747
243,936
AND
DRUG
=
REPORTER
LOT
—
228,894
,-.243,283
sales
Odd-lot
(customers'
shares
N.
ON
EXCHANGE
Y.
of
orders—Customers'
Customers'
short
Customers'
other
total
Customers'
short
26.108
31,082
26,528
Customers'
923,384
746,001
$32,901,935
$35,599,366
25,645
29,894
20,261
21,750
other
of
20,172
617,187
3,573
4,843
3,370
Number
by
ACCOUNT
MEMBERS
THE
ON
STOCK
NEW
234,150
271,220
164,790
165,730
29
234,150
271,220
164,790
165,730
353,980
329,920
380,680
FOR
ACCOUNT
Nov. 22
9,767,310
Total
Nov. 22
10,091,110
.
221,630
199.170
175,589
5,996,720
5,572,710
5,147,370
6,218,350
5,771,830
5,322,950
Short
636,510
543,850
Total
185,460
118,600
92,300
22
899,740
500,980
109,580
449,040
sales
619,580
553,620
All
*
31
42,244
35,269
106,944
183,193
90,475
171,381
♦185,511
135,868
255,981
167,747
266.665
*94,745
226,035
bales)—
835
1,618
1,171
2,618
1,199
1,834
2,171
805
1,814
6,627
4,177
.5,794
5,498
2,362
-
1
3,048
1,454
2,411
5.33
5.62
5.86
—
:
(1,000 pounds)—
31
——
WEIGHTED
MOODY'S
—
YIELD
4,041
OF
Nov.:
of
(125)
7,100
8,100
268,670
132,500
Insurance
284,070
139,600
98,500
106,600
8,700
113,410
122,110
Average
381,590
284,840
170,680
44,740
40,350
29,540
25,330
421,037
263,995
197,001
252,498
465,777
304,345
226,541
277,828
1,752,710
1,076,830
762,533
Total
126,330
Guaranteed
—
—
6.14
5.30
5.71
4.29
15,400
(24)
5.77
5.14
-—.———i—.—
(25)
futilities
Banks
AVERAGE
STOCKS—Month
COMMON
200
Industrial
———Nov. 22
^ov.22
Nov* 22
SERIES
245,600
"-?T0V-
—
U.
—
S.
DEPT.
190,213
.
—,—-——Nov. 22
Nov, J2
—^ov- 22
4.64
(15)
(10)
6.45
3.15
3.47
5.28
5.56
5.78
$275,000,000
$275,000,000
$275,000,000
267,432,234
264,919,493
50,592
(200)
166,050
817,350
147,220
1,589,447
897,475
744,541
784,898
1,835,047
1,063,525
891,761
U.
S.
GOVT.
As
Total
at
of
44,803
42,840
$267,482,827
$264,964,296
$259,646,943
626,043
628,001
$266,856,783
$264,336,294
8,143,216
10,663,705
—
—I———
STATUTORY DEBT LIMITATION
Nov.
face
30
—
,
.
commodities other than farm and foods.
-
"
911,228
gross
——--Dec.
.—Dec.
—_——Dee.
——Dec.
9,
9
109.6
*110.0
99.8
*102.4
public debt and guaranteed
104.2
104.3
106.3
outstanding
subject
to
public
debt
obli¬
debt limitation
668,203
104.3
9
gations not
259,604,103
^
the
by
Treasury
OF
110.7
Grand
9
95.7
96.2
101.3
Balance
9
112.8
♦112.8
113.0
under
^Includes 639,000 barrels of foreign crude runs.
be outstanding
obligations
—
,
that may
public debt
obligations not owned
gross
Deduct—other
—.——
(000's omitted):
amount
time
Outstanding—
any
Total
"ec-
——
foods
Revised figure.
385,596
232,129
—
Nov. 22
—-—•
Meats
387,447
49,314
:
—
92,960
—
products—
72,854
'
152,930
—
Grabbots, etc.
LABOR— (1947-49= 100):
Processed
214,679
—
102,820
_————
——
Commodity Group—
All commodities—:.
Farm
81,857
248,660
160,000
,
—■_—
155,480
—
—
————
NEW
31—————
-
(1,000-lb.
279,430
—,
—
—-—
PRICES,
115,114
379,384
_—
__
31
Oct.
———Nov. 22
—
———
Total sales
WHOLESALE
173,826,000
125,071,000
209,363
4ov. 22
——-—-Nov. 22
—
——■
sales
sales
71,655,000
103,262,000
off the floor—
purchases
Other
154,868,000
346,127
_
___—
Nov. 22
Total round-lot transactions for account of members—
Short
31-
Oct.
(tons)
Fiber
Motes,
511,290
—..—_
Totflil sfilcs
Total
186,591,000
288,212,000
175,856,000
Shipped
418,990
1,085,200
—
sales
Other
152,672,000
257,819,000
77,223,000
119,867,000
„
—
(tons)
Oct.
Railroad
purchases
Short
103,809,000
156,459,000
479,360
Nov. 22
—..
———
:
—
Oct.
Shipped
—-
transactions initiated
837,547
1,705,283
343,165,000
31
(tons)—
Produced
the floor—
sales
Total sales
Other
Oct.
(tons)
Stocks Oct.
—Nov. 22
.
sales
Other
v
1,586,788
♦1,034,750
186,351,000
-
*521,460
2,009,911
162,946,000
249,604,000
,
Oct.31——
Produced
1,091,290
—
purchases
*1,169,950
780,974
31—
(running bales)—
Stocks
MEM¬
OF
sales
Total sales—
on
$435,000
of
Shipped
Nov. 22
———
initiated
$591,000
PROD¬
(tons)—
(pounds)
(tons)
Stocks
——
transactions
952,000
$17,567,000
$575,000
SEED
——
Oct.
(tons)
Produced
Hull
sales
Other
2,175,000
$35,049,000
YORK—
COMMERCE—Month
(pounds)
Shipped
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Other
3,740,000
1,756,135
COTTON
OF
(pounds)
Stocks
Linters
283,080
323,800
— —
Short
NEW
(pounds)
Produced
—_1_—Nov. 22
:
purchases
4,369,000
5,167,000
Oil—
Stocks
Shipped
YORK
Total sales
Total
OF
(pounds)
Produced
sales—
TRANSACTIONS
2,348,000
6,078,000
3,027,000
(000's omitted)
(pounds)
Stocks
TRANSACTIONS
saies
ROUND-LOT
8,550,000
OUTSTANDING—FED¬
BANK
mills
Consumption
4ov. 29
(SHARES):
sales
Other
OF
$6,158,000
'
Oil—
Produced
$25,409,638
Nov. 29
SALES
ROUND-LOT
EXCHANGE AND
$13,079,000
Cake and Meal—
609,255
$23,670,713
dealers—
STOCK
$5,853,000
2,424,000
5,865,000
1,588,000
Hulls—__
shares
Round-lot
581,543
$34,239,581
<ov.
ROUND-LOT
Short
354,007
$29,777,003
Nov. 29
—
purchases
of
737.353
(ov. 29
sales
Round-lot
■
7,932
sales
sales
Other
587
$18,757,000
AND
(tons)
Shipped
21,513
584,913
4ov. 29
shares—Total
30
(tons)
Produced
232
29,748
858,850
i
Short
89
25,535
740,926
sales
Number
)46
110
__•!vov. 29
————Nov. 29
dealers—
by
-
48
631
Seed—
Refined
Nov. 29
1—.Nov. 29
jr
.
liabilities
PAPER
Nov.
Stocky
784,854
$40,314,408
Dollar value
sales
liabilities
SEED
Cotton
28,029
782,105
sales
sales
of
Stocks
$34,832,510
sales
Round-lot
As
Crushed
4ov. 29
shares—Total
cf
_*
-
—
RESERVE
COTTON
Crude
1
liabilities
52
590
liabilities
Received at
———Nov. 29
sales:—
Number
Total
114.32
._____^i__Nov. 29
sales
FOR
109.50
purchases by dealers (customers' sales)—
Number
TOTAL
109.20
—
:
68
61
86
428,921
STOCK
—
1
number
October:
Nov. 29
value
97
581,039
COMMISSION:
purchases)
58
307
88
_
>
INDEX—
orders
of
Number
Dollar
by dealers
of
Number
Odd-lot
SPECIALISTS
106
54
291
liabilities
ERAL
201,883
91
457,365
109.05
AND
146
66
Commercial service
ODD-LOT ACCOUNT OF ODD-
SECURITIES
5
__
UCTS—DEPT.
100
DEALERS
EXCHANGE
PRICE
76
5
October:
service
COMMERCIAL
95
AVERAGE
15
77
BRADSTREET,
number
Construction
265,609
549,762
PAINT
55
20
121
&
457.7
339,672
194!)
187
62
2.99
404.7
ASSOCIATION:
STOCK TRANSACTIONS FOR
of
liabilities
Total
OIL,
*330
72
development
32
100
16
enterprises
number
Wholesale
Retail
3.25
3.03
PAPERBOARD
37
34
♦125
5
service
number
Manufacturing
3.G2
401.3
NATIONAL
134
40
57
_
and
number
Total
3 30
3.51
3.33
Utilities
Public
3.04
3.22
3.50
—Dec. 16
97
137
3.25
3.05
—-
300
*141
33
number
Commercial
2.68
3.19
2.97
'
-j.
■
*352
230
INC.—Month
Construction
—Dec. 16
68
117
—
facilities
public
Manufacturing
109.60
—.
...
Aa
103.97
107.09
AVERAGES:
.i—
building
6
806
*52
38
institutional-—
7
*1,023
136
FAILURES—DUN
109.60
Bonds
Government
7
public.
i-Dec. 16
Average corporate
42
248
337
water
107.09
DAILY
41
49
274
48
naval
Miscellaneous
Dec. 16
Group
126
331
*37
112.00
109.06
.
and
139
*360
47
building
Military and
Highways
other
23
247
——
Conservation
109.42
34
26
802
nonresidential
13.925c
109.79
»
31
130
12.500c
113.70
telegraph
building
13.800c
109.60
29
12
117
,
private—.--——
12.500c
113.70
34
33
23
utilities-
Hospital and
Sewer
Government Bonds
129
39
29
construction
Other
141
12
_
and
Educational
19.000c
55
135
Industrial
103.000c
41
*59
331
Nonresidential
24.200c
35.175c
96
*45
37
Residential
.-Dec. 10
*104
59
33
public
other
200
48
recreational
*189
107
buildings
14
425
187
~
^
—^
utilities
Other
All
84
18
*434
38
;
Telephone
4.131c
$55.26
930
429
Railroad
'
% 4.376c
Son. 26
*"">£
MOODY'S BOND PRICES DAILY AVERAGES:
U.
*95
I__
(nonfarm)
construction
Public
at
YIELD
832
85
18
building
and
13.300c
BOND
*935
;
12.500c
MOODY'S
1,818
930
Miscellaneous
V
._Dec. 10
Industrials
$2,624
*1,988
*1,048
alterations
nonresidential
Social
7,666,864
21.200c
U. S.
*$3,011
1,917
1,033
Hospital and institutional
QUOTATIONS):
-
York)
$2,799
Educational
Farm
.-Dec. 10
tin
42,539,000
$437,339,000
Religious
—.Dec.
copper—
Straits
27,858,000
$449,429,000
Warehouses, offices and loft buildings
Stores, restaurants, and garages
Other
&
—
M.
&
30,631,000
$478,463,000
Industrial
191
Dec. 11
gross
(E.
shipped between
Nonhousekeeping
165,800
Dec.
Dec. 13
AND
ton)
Electrolytic
and
building (nonfarm)
dwelling units
Nonresidential
RESERVE
1«0
=
lb.)
(per
5,100,000
construction
New
953,000
6
COMPOSITE PRICES:
Pig iron
38,701,000
30,393,000
construction
new
11,280,000
6
(in 000 kwh.)
Finished
stored
;
Additions
47,199,000
Dec.
1,
INDEX—FEDERAL
AVERAGE
(COMMERCIAL
AGE
7,333,000
32,348,000
I™
credits
113,855,600
CONSTRUCTION—U. S. DEPT. OF
LABOR—Month of November (in
millions):
Total
104,581,000
70,563,000
43,013,000
BRADSTREET, INC
IRON
$227,309,000
116,357,000
7,869,000
countries
Total
EDISON ELECTRIC INSTITUTE:
Electric output
$237,106,000
15,847,000
46,206,000
29,243,000
~
goods
foreign
87,982,000
Dec.
SYSTEM—1047-4(1
warehouse
Commercial
(tons)
DEPARTMENT
$233,234,000
123,302,000
—II—I
"III
shipments
on
$132,188,000
30:
exchange
Based
MINES):
and lignite (tons)
Pennsylvania anthracite (tons)—
coke
Domestic
$192,563,000
127,421,000
Dec. 11
Bituminous coal
Beehive
$240,9S)7,00C
$344,173,000
Dec. U
OUTPUT
of
$154,237,000
OUT¬
BANK
j.
Private
Federal
COAL
ACCEPTANCES
YORK—As
Ago
SYSTEM—
Residential
construction
and
NEW
Year
M°hth
thousands)
Nov,
773,530
of cars)— Dec.
ENGINEERING
—
DOLLAR
Previous
OF
BUILDING
Dec.
(no.
construction
State
"
(in
OF
47,290,000
NEWS-RECORD:
Total
November
Imports
Exports
31,443,000
100.603,000
RAILROADS:
(number
of that date:
are as
$130,188,000
GOVERNORS
RESERVE
Dollar
Dec.
;
freight received from connections
ENGINEERING
of
Domestic
Dec.
at
at
AMERICAN
Revenue freight loaded
Revenue
(bbls.)
(bbls.)
output
fuel
Residual
OF
FEDERAL RESERVE
STANDING—FEDERAL
6,610,000
6
Dec.
oil
DEBITS—BOARD
Month
6,221,350
Dec.
Dec,
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at—
Dec.
Kerosene (bbls.) at
:
Dec.
.
BANK
BANKERS'
;I
of quotations,
cases
either for the
are
Latest
104.4
of
(bbls.)
(bbls.)—.
Kerosene output (bbls.),
Distillate fuel oil output
Residual fuel
in
or,
INSTITUTE:
condensate
output
shown in first column
Ap"-
105.7
Dec. 21
each)
Crude runs to stills—daily average
Gasoline
Dates
Year
THE
AMERICAN PETROLEUM
42
Dec. 21
production and other figures for the
cover
that date,
to—
ingots and castings
Crude
capacity)
of
Month
Week
IRON AND STEEL INSTITUTE:
Indicated
Previous
on
99
tNot
total
face
outstanding
amount
above
of
.
$258,978,739
obligations, issuable
authority
including American Tel. & Tel.
-—
,
16,021,260
*
.
K.
100
The Commercial and Financial Chronicle...
(2424)
Continued from page
^
billion,
1952, these expenditures will total $26.9
For all
about 2% above 1951.
or
overloaded order books,
reports "Steel," the weekly magazine of metalworking.
First
quarter production already is sold out in virtually all products
thus, little open tonnage, consequently, will be available for that
period and what does appear will be diverted to high-rated
military and defense projects, it states.
Nondefense consumers stand little chance of getting their
requirements fully satisfied with carryover from fourth quarter
claiming two-thirds of the period's output.
This means heavy
overflow into second quarter, and order books for that period
on most products will not be opened for another couple of weeks.
According to National Production Authority estimates, 23 million
tons of finished steel will be available for all consumption in
will
mills
Steel
the
Tolled carbon sheets well into
tonnage than they are getting and, in many in¬
cfoeet and strip
inventories are at the lowest points in months.
At the same time, automotive requirements for flat-rolled are
pressing increasingly on the market, "Steel" adds.
As year-end nears the furnaces are pouring steel in un¬
precedented volume.
Output for the year is disappointing, esti¬
mated around 93 million net tons against the record 105-milliontheir
stances,
.
the drop was due entirely to loss of more
during the work stoppages of April
August. Actually, 1952 ranks third in the production records
mid, from any normal standard, performance of the industry
during the year was impressive, this trade journal notes.
Supplies of raw materials are considered adequate to sup¬
port full operations into spring. Fear of an iron ore shortage due
to strike-loss of some 24 million tons in lake shipments has about
1951.
But
plus
in
than
18 million tons' output
to
vanished.
Scrap supplies also are considered ample with mill inventories
reported in excess of 6 million tons as against 4.5 million a year
concludes this trade weekly.
ago,
The
American
Institute
that
announced
the
operating rate of steel companies having 93% of the steelmaking
capacity for the entire industry will be at
an average of 105.7% of
capacity for the week beginning Dec. 15, 1952, equivalent to 2,196,4HM tons of ingots and steel for castings.
In the week starting
Dec. 8, the actual rate was
A month
2,207,000 tons.
tons, while
year
a
ago
106.3% of capacity and output totaled
ago
output stood at 106.5%,
when the capacity
was
2,212,000
or
smaller the esti¬
mated output was 2,097,000 tons with the rate at
and power
industry for the week ended Dec. 13, 1952, was esti¬
mated at 8,140,257,000 kwh., according to the Eidson Electric In¬
stitute.
This represented a decline from the preceding week's
25,206,000 kwh. below that of the pre¬
ceding week when output amounted to 8,165,463,000 kwh.
It was
473,393,000 kwh., or *3.2%, above the total output for the week
ended Dec. 15, 1951, and 1,154,836,000 kwh. in excess of the output
reported for the corresponding period two years ago.
was
Loadings Rise 7.3% in Latest Week
7% below the corresponding week a year ago, and a decrease of
47,736 cars, or 6.2% below the corresponding week in 1950.
in
the
United
States
week
dropped about 5% from the level of the previous week due to
closings for model changeovers.
It aggregated 89,924 cars compared with
94,886 cars (revised)
In the previous week and 85,483 cars one
year ago, according to
a*Ward's
Automotive
Reports."
half years, or
since June 27, 1950 at the start of the Korean con¬
flict, when the index stood at $6.04.
The current level at $6.15,
represents a drop of 8.1% from the year-ago figure of $6.69.
The index
represents the
for the past week was made up of 89,924 cars
and 27,822 trucks built in the United
States, against 94,886 cars
and 28,426 trucks the previous week and
85,483 cars and 25,927
a
year ago.
3,985
eral trend of food
cars
Business Failures Rise
Wholesale
Commodity Price Index Irregularly
far
1951
This upturn
totals
of
150
below, 42%, the
and
pre-war
rose
to
157
the week
preceding week, Dun & Bradstreet,
brought
143
casualties
above
their
1950
respectively, but they remained
level of 270 in the comparable week
of 1939.
All
daily wholesale commodity price index, compiled by
Bradstreet, Inc., moved irregularly downward last week.
The index closed at 283.46 on Dec. 9, comparing with 285.27 a
week earlier, and with 310.71 on the corresponding date a year
ago.
Grain
for
price movements
the week
the
bilities of $5,000
and
increase
or more,
exceeded the
113
occurred
among failures involving lia¬
which climbed to 137 from 95 last week
of this
size
a
Small casualties,
those with liabilities under
$5,000, dipped to 20 from 25 and were
not
as
numerous
as
in
1951
year ago.
when
30
were
recorded
for
the
similar week.
Failures in all
crease
In all
groups showed
a
mild in¬
during the week. More businesses failed than last year
lines, but the increases from the 1951 level were small.
Geographically, a major part of the-week's rise was concentrated in the Middle Atlantic States
where casualties jumped
Domestic
demand
for wheat
showed
Foreign sales continued to lag but prospects
were good.
Corn showed comparative
firmness, influenced by more active export trade, a slowing down
in new crop movement, and strength in the cash market. Trad¬
ing in all grain and soybean futures on the Chicago Board of
Trade last week averaged about 50,800,000 bushels, against 59,200,000 in the previous week, and 47,000,000 for the same week
improvement.
some
for enlarged export
trade
last year.
Hard wheat
bakery flours developed
a
somewhat firmer tone
in the week, aided by advances in wheat premiums in the South¬
west.
New bookings for these flours, however, remained at a
low level.
noted
Some expansion
around
mid-week
with values
strong
in Spring wheat flour bookings was
other flours
but
dull.
Cocoa
for
others
some
foreign buying.
Easi¬
in the domestic spot raw sugar market most of
rallied slightly following announce¬
the week but futures prices
ment
by the Department of Agriculture of the 1953 import and
marketing quotas which were set at 7,800,000 tons.
Trading in lard
heavy
was
sent most lard contracts to
in
business
new
lard
heavy but clearances
Quotations
heavy
for
steers
receipts
and
and
lower
as
the result of liquidation which
lows for the
continued
good
were
lambs
dressed
season.
slow.
Hog
marketings
and
worked
meat
prices held steady.
lower, influenced by
prices.
Firmness in
early dealings reflected mill and export price-fixing
but the market trended downward
during the remainder of the
period.
slow export
trade, the
absence of any particular activity in the goods market, and pre¬
dictions of a moderate increase in the forthcoming Government
estimate.
crop
fill-in
and
goods
for
post-holiday
promotions.
As
during
the
past
months, the total dollar
volume
of
was
moder¬
year
earlier.
wholesale
orders
ately larger than
Delivery
snags
a
several<
The
somewhat
larger
than
Department
report, issued on Dec. 8, placed the 1952 cotton crop
15,038,000 bales, as against 14,905,000 forecast a month ago.
This year's indicated production compares with the 1951
yield
of 15,144,000 bales, and a ten-year
average of 11,755,000 bales.
store
country-wide basis,
sales
the
staple into
the
CCC
loan
on
stock
were
below
increased
the
1%
from
preceding week.
vious
was
week
-
week
weeks
level
In the
decrease
a
reported
similar
four
1952,
of
the
of
fromz that
ended
of
the
For
1951.
of
pre¬
14% *
the
<
Dec.
6,
1952,
For the period
1 to Dec. 6, ? 1952, depart¬
store sales registered a drop
sales declined 2%.
Jan,
ment
of
1%
the
below
the
preceding
Retail
week
trade
had
weather
period
in
New
York
last
warm
and
rainy
contend
to
with
which:
volume
by
According
store
the
to the Federal Re¬
index, department
Board's
serve
sales in New York
City for
weekly period ended Dec. 6,
1952, decreased 6% below the like
period
of
last
year.
In
the
preceding week a decrease of 3%*
(revised)
was
reported
from
those of the similar week of 1951,
while for the four weeks ended
Dec.
6,
was
recorded.
Jan.
1
declined
riod
*In
decrease
of
For
a
Dec.
8%
of the
period
6,
the
1952,
under
the
preceding
than
in
other
any
comparable
volume
like
had
generally
slightly
confident
largest
in
should
be
observance
made
of
the
for
the
their sales
to
suburbs.
Relaxed
were
the
as
mild
that
receipts
the
than
Christmas
a
year
Nov.
29.
pre-
ago
shopping
and
season
some large cities, particularly in the
East,
lagging; the disappointing response was
weather
credit
terms
and
the
population shift to the
extended shopping hours
and
used
by many merchants to spur shopping.
Some cities
reported that shortages of sales personnel were
being reflected
dollar
volume
of retail
trade in the period ended
Wednesday of the past week was estimated by Dun & Brad¬
street, Inc., to be from 1 to 5% higher than a year ago. Regional
estimates varied from the
year-ago levels by the following per¬
centages: New England +2 to +6; East —1 to +3; South and
Northwest +1 to +5; Midwest 0 to
+4; Southwest and Pacific
on
~f^3 to -J-?.
While the rise in the demand for
apparel was about
seasonal expectations, the interest in outer-wear
with
on
a
was
par
dis¬
couraged by mild weather in many parts.
such
more
Traditional gift items
accessories, and jewelry were
lingerie, haberdashery,
widely purchased than a year
as
demand
for
food
ago.
rebounded
from the
post-holiday dip
Housewives continued to spend more for food
comparable 1951 week.
In increased demand this
week were pork and lamb as some
price shavings attracted con¬
sumers.
While the buying of beverages for the
in the prior week.
than
in
the
holiday expanded
seasonally, it remained below the level of
a
year before.
fact
Thanksgiving
holiday, store closings occurred in th<*
week ending Nov. 24, 1951 whereas thr*
year
they occurred in the week ending
ex¬
record.
on
Department stores in
reported
larger
pe¬
year.
Christmas week.
would be the
9%
using year ago comparisons for thr*
ending
Nov. 22
and
Nov.
29,
allowance
that
1952,
to
buying gained further momentum in most parts of the
nation in the period ended on
Wednesday of last week as shop¬
money
%
year ago.
Gift
Retailers
a&
10% from the level of
as
ginnings from this year's growth prior to Dec. 1 were placed at
13,419,943 running bales, or approximately 90% of the crop and
the highest percentage on that date since 1943.
more
of
\
to cut sales
served
much
like
year.
Loans reported during the week ended Nov. 28 were
81,300 against 94,500 bales in the preceding week, bringing total
entries for the season through that date to
414,600 bales.
Cotton
spent
a
the Federal Reserve Board's index
for the week ended Dec. 6,
pectations.
pers
a
taken from
as
at
of
in
reported
were
few
lines, but retailers gen¬
erally had little difficulty in fill¬
ing their needs. Inventories re¬
a
weeks
Bearish influences included continued
expanded
as many mer¬
hurried
holiday
prepared
was
sharply, prompted largely by continued
concerning new crop prospects, coupled with
reports
prevailed
ness
were
up
strength in the London market and
The
industry and trade
irregular although net changes
were
small.
were
markets
placed
mained
&
Coast
of
Trading activities in the nation's
wholesale
The
Dun
The total
in
Washers, driers, floor cov¬
erings, silverware and small ap¬
were widely popular.
year ago.
in lost sales.
Moderately
Commercial and industrial failures
ended Dec. 11 from 120 in the
and
sum
prices at the wholesale level.
attributed
and 1,980 trucks against
3,619 cars and 2,074 trucks in the prior week and 2,632 cars and
1,585 trucks in the comparable 1951 week.
Inc., reports.
total of the price per pound of
and its chief function is to show the gen¬
31 foods in general use
were
Total output
trucks in the comparable period
Canadian Plants turned out
either
By Christmas Buying
last
in
were
in
pliances
orders
price index, compiled by Dun & Bradstreet, Inc., fell sharply from last week's figure of $6.22, to $6.15
on Dec. 9.
This marked a new low for approximately two and a
Week, But Exceeded Like Period in 1951
production
than
Trade Volume Showed Further Improvement
Spurred
United States Auto Output Declined 5% in Latest
car
demand
chants
food
The wholesale
Entries
Loadings of'revenue freight for the week ended Dec. 6, 1952,
totaled 719,159 cars, according to the Association of American
Railroads, representing an increase of 48,992 cars, or 7.3% above
the preceding holiday week.
The week's total represented a decrease of 54,371 cars or
Many household goods
broader
slightly in the week
Domestic cotton prices registered further declines last week.
The amount of electric energy distributed by the electric light
Passenger
West
2^2-Year Low
Export
Of Previous Week
Car
the
Wholesale Food Price Index Declines to New
104.4%.
Recedes From All-Time High Record
all-time high record.
The current total
in
week.
were
Electric Output
place
including the East North Central, remained unchanged.
decline during the week appeared in the New England States
which had about one-half as many failures as in the previous
week.
Mortality in that area was down sharply from 1951, but
in all other regions casualties equalled or exceeded last year's toll.
bearish
Steel
and
Iron
took
Lower in Latest Week
signs point to sustained demand for hot and coldsecond quarter, possibly beyond.
Manufacturers of household appliances are seeking far more
All
increases
the prior week or the similar 1951
it continues.
second quarter,
Slight
regions,
The only
with
1953
enter
30.
North Central and West South Central States, while three
Fractionally Lower Level
Steel Output Set at
week ago and in the Pacific States where they
a
from
40
to
rose
The State o! Trade and Industry
three months.
from 34
to 61
5
Thursday, December 18, 1952
Your
RID
CROSS
must carry on I
Volume 176
Number 5178
...
The Commercial and Financial Chronicle
(2425)
5s,
1972; The Cincinnati Enquirer 5s, 1967;
Missouri-Kansas-Texas
mulative
first
Mutual Funds
B
A
Co.
way
first
Transmission
Western
Railroad
Co.
4s,
1-960;
Tennessee
debenture
Maryland
47/sS,
Railway
Gas
and
1971
Co.
4V2s,
B
1967.
By ROBERT R. RICH
THERE'S
NO
CEILING
in
sight
far as the growth of electronics
is concerned. That's the view of a
Bonds
top investment authority on elec¬
tronics.
This
view
Chester D.
advanced
was "
by
Tripp, President of the
Television-Electronics
Fund.
''There
upper
are
predictable
no
limits to the continuing growth of
the electronics industry," he told
his shareholders in the Fund's
nual
report
ended
the
Oct.
only
for
its
31, 1952.
fiscal
investment
concentrating
electronics
year
The fund is
American
company
an¬
.■
the
on
field.
Mr. Tripp pointed out that ap¬
plications of electronics in indus¬
trial
and
growing
commercial. fields
much
basis
centage
faster
than
tainment field.
that
in
on
a
the
per¬
enter¬
will
uses
eventually overshadow electronics
for entertainment.
,
The mutual fund executive sin¬
,
gled out microwave equipment as
an instance of how
quickly a seg¬
ment of the industry can develop.
He
recalled
in
that
July, 1950,
only
1,900 miles of microwave
systems had been authorized and
a
year
later 9,800 miles. Last June
the total had passed 20,000 miles.
'Today,"
he
continued,
is measured
wave
"micro¬
in thousands of
miles; tomorrow it will be
joying well-being in sharp contrast
to conditions prevailing a year ago.
A significant comparison can be
drawn
meas¬
This
that
last
were
at this
year
fronting
time
there
uncertainties
numerous
particularly
con¬
radio
and
television set manufacturing.
"Not
that
all
of
the
"but
the
current
trend
shows
unsold
and
climate."
He gave
i
this picture of the tele-
NJ/te
Seorpe
PUTNAM
i
sets.
Today, most dealers'
distributors'
FUND
stocks
at
are
a
minimum, orders
cated
and
are being allo¬
in the hands of
sets
manufacturers
approximate 80,000.
Not only is demand outstripping
supply at the moment, but there
are
good signs of continued de¬
mand."
the in¬
auguration of "several dozen
stations
new
the air next year." He
on
noted that because the ultra
high
frequency service provided to date
has been highly acceptable, the
opening of new markets will be
speeded.
"have
"Nor," he
continued,
growing pains which
the
pessimists forecast for the intro¬
duction
of
ink
red
dicted.
UHF
in
resulted
which
had
the
been
pre¬
The
the
&
months
12
of
were
Utilities
Corp. deben¬
Central & Chicago,
joint 5s, 1963;
1969; Illinois
&
investments
New
tctal
$12,177,682 increase in
assets
net
reported
was
by
Television-Electronics Fund in its
1952 fiscal year.
the
largest
fund's
the
close
the fiscal
This
of
assets
boosted
and
of
Oct. 31, last.
the
net
high of $21,970,301
new
a
was
any
history
assets to
net
The increase
year in
for
year
$9,792,619
on
with
compares
Pittston
Co.
collateral
Seaboard Air Line
SOME
trust
1961
4s,
and
Railway Co. A 4 Vis, 2016.
REVEALING
the
number
information
man-hours
of
that goes
Putnam Fund Distributors, Inc.
50 State
Street, Boston
Iff
the
year
a
period,
same
increased
to
net
$13.57
asset
share
a
the
company's annual report.
into the
of
of
furnished
in
such
pany
the
the
man¬
Fund
is
fund
December
portfolio
in
aver¬
than 500 man-hours
more
a
according to the Bulletin.
the equivalent of about
year,
This
is
of
one-quarter
man's
one
total
hours
are
of
research
of
into
runs
thousands,
the
organization,
sponsible
for
tions
continuous
business
Government
force
factors
the
on
and
exert
an
first
of
dominate
time,
and
Hudson
AN
OIL
100
a
the
is
re¬
recommenda¬
supervision
investments.
Fund
SUPPLY
at
years
business
activity is being sus¬
tained at a high level, aided by
large government defense expen¬
ditures.
Heavy defense spending
is
likely
continue and your
management does not believe that
a major decline
in business is in
the
to
offing."
The report covers
Manhattan
operations of
the fiscal year
qualify
me
as
in
international
consin
the
accountant.
ideas
last
of
the
of
"There
is
sufficient
the
current
for
con¬
contrast
the
countries
of
about
of
100
characteristics
the
and
its
its
of
management,
conservative
financial
policy."
Mr.
oil
from
the
in
stated
that
1932,
decline
ity
the peak
bottom
11J ONE
111 WALL
STREET
Calvin bullock
:
Tnew york
sented
of
compared
in
Canadian FuncL
during
the
$7.85,
Oct.
year
one
of
the
of
the
year-end
the
Co. of
1952
during the
year
Power
4.8s,
Co.
Inc.
mutual
is
funds
which invest solely
net
assets
amounted
were
different bond
the
Canada, Ltd., in December;
1950.
in
OPEN-END
Europe,"
REPORTS.
assets
due
recovery
hard
work.
France,
on
has
due
to
a
sharp
a
in
a large part to
England and
other hand, re¬
been less noticeable
Dividend
of
31, 1952, the end of its 20th fiscal
In
the
deal
great
However, the
rqental
"For
the
year,
with
tourist
comments
the
on
effects
of
were $108,740,592 compared
$97,327,210 one year earlier.
New records
of apathy.
attitude in
American
NET
established botir
were
value of assets and number of
in
shareholders,
Assets
share
Oct.
in
equal
were
31, 1951.
the
formation
since
bottom of the
investment income and more than
$24,000,000 in distributions from
net profits on sales of investments.
Stockholders
stocks
were
told that all
held
by Dividend Shares
are
currently paying dividends
and over 90% have paid dividends
the
for
10
years
numbered
1932
stocks owned in
106
Only
more.
or
in the company's
of
$1.83 m
share can
in 1932, at
depression, the
report
mailed
to
stockholders!
pointed out that since then Divi¬
dend Shares has paid more than.
$41,000,000 in dividends from net
ress
1953.
kinds
a
Reviewing the company's prog¬
in
some
to
against $1.79
as
probable expiration of both price
controls and excess profits taxes
"To
thank
more
now
60,000.
now
portfolio, which
common
stocks at
the fiscal year-end.
companies
this would
mean little or
nothing,"
publication states, "for others
it would greatly stimulate earning
power.
For example, lifting of
price controls will not help those
stocks
Common
at
fiscal
FUND'S
election
at
the
to $26.-
invested
in
57
issues.
bonds
were:
1987;
added
to
holdings
American & Foreign
Beaunit
Mills,
Inc.
as
orderly
consistent
was
end
sets,
represented 88.38% of net
compared
with
87.51%
months earlier.
Fundamental Investors, Inc.
of
Diversified Common Stock Fund
Diversified Growth Stock Fund
in¬
Diversified Investment Fund
with
investment, according
today.
As
to
Manhattan Bond Fund, Inc.
announcement
1,
assets
1952,
were
with
of
Knickerbocker's
56.3%
the
in
common
balance
in
cor¬
porate bonds, preferreds, treasury
bills, and cash.
*
^^'P&OSPEfcTJpSES
IfWA
AVAILABLE
FROM
YOUR
ON
LOCAL
.
EUROPEAN
investors,
particularly the Dutch, prefer to
buy their own securities for in¬
come rather than American issues,
according to Douglas Laird, Di¬
rector
of
Research
National
Securities
Corporation.
&
Mr." Laird*
//X,
/-Ckvttand
/
.
a
/.
;
,
INVESTMENT
DEALER,
,1.1.1.1.
/iW
.
v
*
'/A
Incprborated
v
,
W
■.
MUTUAL FUNDS
THESE
in
.
MANY
year-
the
rates of 1929
depression
with a 47%
period
14
appear
domestic
same
of
Cluett, Peabody & Co., Inc., and
its subsidiary, Cluett, Peabody &
program.
stocks,
Fund,
oldest
Total
and
was
higher
cents
Bond
in the country
bonds.
fund
13, 1951.
Manhattan
Among
city-
share
twenty-two
on
elected
was
Treasurer
and
Shares, Inc., a mutual fund manr*
aged by Calvin Bullock, at Oct*
Fox-Martin,
KNICKERBOCKER
Dec.
919.443
Address.
successive
improvement in dividends. At
each
Schenck
Mr.
Vice-President
year
third
the
Madison*
Germany there has been
Kidder,
Peabody & Co., was moderator of
of
in
Home,
that
Central
in
Co.
TOTAL
general business activ¬
Milton
an
obligation please send
prospectus on
Wis.
the
of
Trust
time.
the end of the year net asset value
than
no
Wisconsin
the
of
em¬
Con¬
was
consumption declined less than
15%
to
Aul
previously
Vice-President
billion
of
was
Harry S..
Manchester, Inc., Madison, Wis,
and
prior to that position was
barrels and the 425 billion barrels
chief
Mr. Schenck
He
pany.
rate
reserves
public
Cluett;
a
said Laird. "In Holland and West
This supply includes the proven
oil
is
troller and Treasurer of
Harold
of
certified
Before joining
ployed with The Wisconsin Com¬
the degree of economic rehabilita¬
tion in
and
Peabody,
"Economic
sharp
a
Mr.
company.
joined Cluett, Peabody &
Co., Inc., New York, N. Y., March
1, 1949, as Controller.
He is &
graduate of the University of Wis¬
expert
an
that
Schenck
Laird said, "The fact that I have
just spent several weeks in Europe
does not
of
rectors
couraged by the Truman labor and
fiscal policies.
quarterly in¬ vestment in equities was increased
come
dividends totaling 37 cents substantially during the past quar¬
ter with the greater part of the
per share were paid to the fund's
shareholders. This amount repre¬ increase taking place as soon after
During
price
their
Bond
Fund, Inc. for
ended Oct. 31, 1952.
A
pack could increase their earnings
by 30% to 40%."
France and the United Kingdom
was
the estimate
seems
to
be
improving,"
said
Aul, Vice-President of
Calvin Bullock, on the radio pro¬ Laird, "particularly since the ad¬
vent of the new conservative gov¬
gram over WOR, "Your Money At
ernments."
Work," on Sunday.
sumption
the
over¬
margins.
American
covery
of
the
general
profit
rise of less than one-half cent
per
have stated that currently they
prefer to lighten their holdings of
the
mindedness
all
III
normal
Bulletin
trouble, its vast reserves, increas¬
ing efficiency, the research-
these
UYESTMENT
pur¬
for ap¬
preciation, according to Mr. Laird,
although some Dutch bankers
cases,
Royalists" in Europe, commented
continued. This latter total makes Laird, appear to be the executive
and junior executive classes. Al¬
no allowance for the
many securi¬
most everyone in this group has a
ties studied and found unsuitable.,
c o m p a n y-f inanced
automobile
In addition to this time element,
along with very generous expense
it is pointed out, the job of man¬
accounts encouraged by the high
aging the Fund's portfolio in¬ rate of taxation.
tens
influenced
second. At the prosent
GENTLEMEN: At
most
to
hours.
conditions and
important
ISTOAl
securities
in
affairs, contrary
many returning
When this research
time for
tourists. However, some of my re¬
one
security is multiplied by the marks
might be interesting as
74
companies
currently
repre¬ casual observations on the
Euro¬
sented in the Hudson Fund port¬
pean scene."
folio, the resulting total manThe
working
petroleum
industry, in the
speaker's opinion, were "its rec¬
ord
of
growth,
its
tremendous
strength
in
times of economic
by changes in the
market.
Policies of the
hand, makers of
Hud¬
Chemical
Dow
as
Hudson
ages
mutual
a
commenting on this predic¬
tion, Hugh W. Long, President of
Manhattan Bond Fund, Inc., went
on to
say, "Bond investments are
by
other
like
cigarettes, whose;
earnings have been squeezed be¬
tween higher costs of leaf tobacco
and price control of their finished
product, could quickly restore
Europe," Commented Laird, "the
best value seems to be in
Italy,
1,619,318 shares outstand¬ of oil in the
Spain and also in the United King¬
ground "waiting to
dom
where
ing on Oct. 31. 1952, from $12.91
austerity has kept
be discovered."
a share on the 758,445 shares out¬
prices for food, goods and services
Predictions that we'll soon run
comparatively low. In most other
standing on Oct. 31, 1951.
out of oil, Mr. Aul
stated, stem parts of Europe, particularly in
"IT IS ANTICIPATED that gov¬ from
a
misunderstanding of oil Paris, prices for most things are
ernment fiscal policies under the company operations.
Since prov¬ very high.
new Administration will create an
ing up oil reserves ties up a lot
of money, Mr. Aul
atmosphere favorable to the bond
explained, the THE CURRENT issue of "Brief
market." This statement was made industry drills enough oil wells Case" published by Distributors
to more than 13,800 shareholders to insure about a 13-year supply. Group
Incorporated for the in¬
vestment
dealer and
his client,
of Manhattan Bond Fund in the
From an investment viewpoint,
value
on
Federal
I
American
chased,
in over-supply.
are
securities, and increase HAROLD W. STORY, President
holdings in European, partic¬ of the Wisconsin Investment Com¬
ularly Dutch issues, due to their pany of Milwaukee, announced
son Fund Bulletin.
Research time
apprehension about long-term in¬ today that <E". W. Schenck has
devoted to a single major com¬ flation in the
United States en¬ been elected to the board of di¬
agement
previously.
In
"On the
products
Dutch issues."
Pennsylvania Railroad Co. B 5s, 1968; The
investment
manager."
goods
consumers' resistance.
incomes are available in
European securities," said
Laird, "due to the rather low level
of prices which prevails for many
UHF
station
whose
Nor those whose goods could not
be sold at high prices because of
"High
Orleans
money
of -E/joiten
me a
from
country's first com¬
volves building contacts for field
operation, station
as
well
as
avail¬
KPTV
in Portland, Ore., began investigators
broadcasting a scant two months ability of statistical material.
The Fiduciary Trust Company
ago and is already
showing an
of New
York, a long-established
operating profit, according to the
mercial
In
1
Realty
4s,
Louis
annual
The fund head forecast
a
generally better feeling and indi¬
cates hope of a better economic
tures
research
entire
industry
combined,
manufacturers, distributors, and
dealers, held close to two million
at
problems
have disappeared and a big rain¬
bow taken their places," he said,
General
St.
during
The
A record
according to Mr.
Tripp, the industry is in a better
position businesswise. He recalled
year,
fund
on
in millions of miles."
ured
from the inventory figure
in the summer of 1951.
eliminated
reached
are
And he predicted
non-entertainment
vision
industry:
"Certainly the
teleVision set makers are now en¬
luncheon at the Bank¬
a
ers' Club for the
staff
of the
Economic and Investment Depart¬
ment of this Mutual Fund sponsor.
some
the
as
spoke at
cu¬
1967;
Peabody Coal Co.
1972; Peoria & Eastern Rail¬
5s,
4V2S,
101
'>'*< '
Yt
Westminster
'1
at
" "
*
,i
'
Parker, Elizabeth
New Jersey
*
OR
as¬
six
102
(2426)
The Commercial and Financial Chronicle
..
.Thursday, December 18,1952
it INDICATES
Securities
Now
in
Registration
15
★
NEW ISSUE CALENDAR
December
★ American Brake Shoe Co.
19,
(no par) to
1952
be offered for
subscription by certain employees under
the company's "Employees' Stock Purchase Plan." Un¬
Standard
Staats
&
..Common
Dec.
Otis, Inc. and F. L. Rossmann & Co.)
December
Ansonia Wire & Cable Co., New York
filed 100,000 shares of common stock (par $1).
Price—To
be
supplied by amendment. Proceeds—To
Colorado Fuel & Iron
29,
(Allen
&
stock.
Powers
1953
Co.,
Inc.)
($20 per share).
Underwriter—M. H.
Proceeds—For
par
working capital.
Minneapolis, Minn.
Bishop
&
El
1953
Common
(Gordon
Graves &
(Bids
to
be
'
;
bidders: Lehman Brothers; Morgan
Harriman Ripley & Co., Inc., and The
Corp. (jointly). Bids—To be received up
?
(EST)
share
one
on
of
Price—For
held.
by
\
Jan. 14.
1953
for
stock
common
each
two
'
'
-
shares
;
preferred, $8.50 per -share, and for
Proceeds—For working capi-
•
$6.50 per share.
common,
invited)
7,
January
new
Co.;
tal. Underwriter—Coburn &
Paso,
••
competitive
determined
be
Probable
&
a.m.
and
Co.)
Delaware, Lackawanna & West'n RR.__Eq. Tr. Ctfs.
Dallas. Office—301 Mercantile Commerce
Bldg., Dallas 1,
Tex. Underwriter—Harold S. Stewart &
Co.,
Common
6,
January
(letter of notification) 10,500 shares of common
stock (par $1). Price—At market
(approximately $2.87 V2
per share). Proceeds—To the Tioga Petroleum
Corp. of
Proceeds—For
12.
.1
Price—To be
Manufacturing Co.
Nov. 6 (letter of notification) 5,526 shares of class A
preferred stock (par $5) and 10,000 shares of common
stock (par $1) to be initially offered to stockholders ai
rate of one preferred share for each five shares held
Rupe & Son)
Commonwealth Oil Co
Nov. 24
share for each
new
Jan. 30.
Danielson
Manufacturing Co.
(Dallas
one
on
(no par)
stockholders
common
construe-
on
Boston
11
to
Common
Co.,
Beaver Lodge Oil Corp.,
Dallas, Tex.
First
Corp.
&
Jan.
stock
common
by
15 at the rate of
Underwriters—To
bidding.
5,
iBlyt.h
Filtrol
Price—At
tion.
Stanley
★ Bank Shares, Inc., Minneapolis, Minn.
11 (letter of notification) 10,000 shares of class A
subscription
held; rights to expire
announced
Co.)
January
Dei.
for
Co.)
Debentures
(Allen
ford, Conn.
(1/14)
Co.
617,669 shares of
offered
10 shares
Garrett Freightlines, Inc
part of purchase price of assets being acquired from
Noma Electric Corp. Underwriter—Putnam &
Co., Hart¬
pay
Power
of record Jan.
Common
&
filed
16
be
to
1952
Corp
.
t
★ Consumers
derwriter—None.
Dec. 8
-
New York.
Co.)
Sulphur Co
(Gearhart &
filed
For
.Common
(William R.
28
investigation of potential oil areas and for general
corporate purposes. Underwriter—Gordon Graves & Co.,
Fluor Corp., Ltd
Dec. 10 filed 50,000 shares of common stock
ISSUE
Commonwealth
Nov.
Underwriter—None.
REVISED
Oil Co., Miami, Fla. (1/6)
150,000 shares of common stock (par one
cent). Price—To be supplied by amendment. Proceeds—
filed
1,000,000 shares of capital stock (par $1)
to be offered to agents of Allied Van
Lines, Inc. Price
v-$1.60 per share. Proceeds—For capital and surplus.
PREVIOUS
ITEMS
•
★ Allied Insurance Co. of America, Broadview, III.
Dec.
ADDITIONS
SINCE
1
Middlebrook, Inc., Hartford,
;
Conn.
Tex.
Moore
★ Big Basin Oil, Inc., Holyoke, Colo.
(letter of notification) 1,100,000 shares of
Dec. 8
(William S.), Inc
(Fulton,
New
com¬
stock (par five cents).
Price—25 cents per share.
Proceeds—To repay notes, and for drilling expenses and
ver,
equipment.
Colo.
(Bids to
(Bids
National
(par $1).
Price—At
par
($50
per
Proceeds—For
13,
EST)
1953
Turben
...Common
<fc
by Merrill,.
stock
Co.)
.
Preferred
(Bids
11
a.m.
Co., Philadelphia, Pa.
(letter of notification) 99,000 shares of
4
Dec.
To
(par one cent). Price—$3
acquire leases and drill wells.
11
Dec.
Common
stock
(Offering to stockholders)
ing fund mortgage bonds due Nov.
1, 1962, to be offered
for subscription
by common stockholders at the rate
of $100 of bonds for each
28 shares of stock held
(for
a
14-day standby). Certain stockholders have waived
Montreal
11
Transportation
(Shields
&
a.m.
share. .Proceeds—
per
(letter of notification)
10,000 shares of common 1
Price—$22 per'share. Proceeds—For ^
Office—1949 No. Cicero Avenue, Chicago, <
Bonds
Hart)
&
Co
Common
'
Proceeds—To
EST)
Savard
Edison
Electronics & Nucleonics, Inc., N. Y.
Nov. 10 (letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent). Price—25 cents per Share.
<
ing
(Bids to be invited)
capital.
expand current operations and for work-
Underwriter—To
be
furnished
by
ment.
their
rights. Price—At par. Proceeds—To
repay $1,014,outstanding notes and for drilling expenses and
working capital.
Underwriters
Dallas Rupe & Son,
Dallas, Texas; Carl M. Loeb, Rhoades & Co., New
York;
and Straus, Blosser &
McDowell, Chicago, 111. Offering
—Postponed until after Jan. 1, 1953.
January 20, 1953
500 of
Kansas
City Power & Light Co
—
(Bids
to
(Bids
11
Bonds
Bonds & Preferred
a.m.
amend¬
%
Empire Oil Corp., Tulsa, Okla.
Nov. 6 (letter of notification) 600,000 shares of common
stock (par 5 cents). Price—50 cents per share. Proceeds '
—To drill well. Office—Mayo Bldg., Tulsa, Okla. Under¬
be invited)
Ohio Power Co
EST)
writer—I. J. Schenin Co., New York.
■
Canadian Prospect
Ltd., Calgary, Alta., Canada
common
stock
for account of
Southern Ry.
(par 3313
Price—To be sup¬
Proceeds—To company to be used
for operating expenses to
pay for future exploration and
development of leases, etc.
Underwriters—White, Weld
& Co., New
York, for an undetermined number of shares;
balance through a Canadian
underwriter to be named
later. Offering—Not
expected until after Jan.
1, 1953.
Century Natural Gas
&
Oil
West
Penn
Electric
of
sold
account of
A
(of
for
underwriters). Price—For preferred, $50
per
share; for common, $2 per share.
Proceeds—For work¬
ing capital. Office—250 N. Water
Street, Milwaukee,
Wis. Underwriter—Pioneer
Enterprises, Inc.,
Bluefield
W. Va.
22
State Bank of
(Offering
Under¬
class
Electric
Illuminating
557,895 shares of
common
being offered for subscription
by
of record Nov. 24 at the
rate of
stock
common
one
new
(no par)
a.m.
-Bonds & Pfd.
CST)
■
■
(letter of notification)
■
■
Films
.
to
Common
stockholders—underwritten
&
by
Salomon
Hutzler)
$43.25
per
held; rights to expire on Dec. 19. Price—
share. Proceeds—For property additions. Un¬
derwriter—None.
•
Coca-Cola
Dec.
5
stock
per
Bottling Co. of St. Louis
notification) 2,500 shares of common
$1). Price—At market (approximately $25
(letter of
(par
share).
Proceeds—To
Underwriters
Willard
—
G.
R.
H.
Cox,
Walker
the
&
selling
Co.
and
Co., both of St. Louis, Mo. Offering—
Code
1
.
»
•
•
Inc.,
Filtrol Corp.,
Nov. 28 filed
Price—To be
lantic Co.,
Los Angeles, Calif. (1/5)
653,500 shares of common stock
(par $1).T'
supplied by amendment. Proceeds—To At- 1
F. Eberstadt & Co., Inc. and Lazard Freres &
Co. and certain individuals.
Corp., Philadelphia, Pa.
500,000 shares of 6% cumulative
preferred
Underwriters—Blyth & Co.,
San Francisco and New York. Business—Produc¬
tion
Products
filed
':
Television,
(letter of notification)
1
Inc.,
Not immiment.
Dec.
'' *
■"
for
of
cracking
clay
catalysts
ing, etc.
for
petroleum
refin¬
-
.
stock
(par $1) and 255,000 shares of common stock (no
par—stated value $1) to be sold in units of two shares
of preferred and one share of common stock.
Price—$3
per
unit,
Proceeds
—
For working capital.
Manufactures electrical equipment.
Business
—
Underwriter—None.
Company intends to offer securities to broker-dealers for
public offering'.
•
Colorado
Fuel &
Iron
Corp.:- (12/291
•,
Dec.
8 filed 340,000 shares of common stock
(no par).
Price—To be supplied by amendment., ProceedSr-To fi¬
Through the Chicago Tribunealone,
securities and services
most
you can
effectively and
place the story.bf
at.
your
one.,low-cost before
nance,
both types
Corp.)
market—professionals and the general investing public. Get the full
in part, purchase by a subsidiary (Colorado Steel
of all plants and inventories of John A. Roebling's Sons Co. Underwriter—Allen & Co., New York.
New York.
Boston
Philadelphia
Pittsburgh
San Francisco
Private fVires
to
all
offices
Chicago
Cleveland
it Columbus National Life Insurance Co.,
Columbus, Ga.
Dec. 11 (letter of notification)
2,500 shares of capital
stock
(par $10).
Price—$40 per share.
Proceeds—To
retire notes
and
for working capital.
Avenue, Columbus, Ga.
Office—1317 First
Underwriter—None.
<
Hollywood, Calif.
$182,000 of subordinated
debentures and 1,820 shares of class B stock (the stock
to be offered by J. H. Skirball who will issue, without *
charge, five shares of class B stock for each $500 of de¬
bentures purchased).
Price — At par. Proceeds — For
working capital. Offices—1041 North Formosa St., Holly¬
wood, Calif., and 19 Rector St., New York, N. Y. Under¬
writer—Bruns, Nordeman & Co., New York.
Dec.
shares
five
stockholders
share for each
1953
Albany, N. Y
Wm. F. Dowdall &
Co.
11
Bros.
stockholder.
filed
Equipment Acceptance Corp., Peoria, III.
2,000 shares of common
stock (par $50). Price — $60 per share. Proceeds — For
working capital. Office—3500 North Adams St., Peoria,
111. Underwriter—Paul H. Davis & Co., Chicago, 111.
10
..
(Bids
15-year 6%{,
Farm
Oct.
underwriting)
Iowa-Illinois Gas & Electric Co
Milliken,
preferred stock and 58,750 shares of
common stock
which 30,000 shares of common
stock will be
1953
stockholders—no
to
January 27,
it Clarvan Corp., Milwaukee, Wis.
Dec. 8 (letter of
notification) 1,150 shares
Cleveland
26,
Common
Corp.
(letter of notification) 100,000 shares of
common
(par 10 cents). Price—At market
(estimated at
20 cents per share).
Proceeds—To Kenneth P.
Oct.
Common
Culver Corp.
(Offering
9
sinking fund debentures dated Nov. 1, 1952 and due
1, 1967. Price—At par and accrued interest: Pro¬
ceeds—To repay bank loans and for working capital.
Office—1602 Wagner Avenue, Erie. Pa. Underwriter—
None.
Smith & Root, Erie, Pa., will act as distributor. /•
1953
Co
January
Systems, Inc., Erie, Pa.
(letter of notification) $300,000 of
Nov.
(Offering to stockholders—Bids to be invited)
stock
Vice-President, who is the selling stockholder.
writer—Hunter Securities
Corp., New York.
Dec.
invited)
January 23,
selling stockholders.
Dec. 9
be
to
c
Erie Meter
Equip. Trust Ctfs.
(Eids
plied by amendment.
v....
>4
January 22, 1953
cents), of which 235,000 shares are to be issued
upon
exercise of share rights and
68,595 shares are to be sold
-
Underwriter—Hopper, *•'
Underwriter—None.
111.
Commission
and
Co.
California
>
common
Common
(Bids
Southern
1953
Co
Power
-
(par $2.50).
general funds.
Main
January 14,
,
★ Ekco Products Co., Chicago, III
White Plains, N. Y
Consumers
303,595 shares of
>
Soliday & Co., Philadelphia, Pa.
EST)
People's National Bank & Trust Co.,
Byrd Oil Corp., Dallas, Tex.
Oct. 22 filed $1,750,000 of
10-year 5%% convertible sink¬
Nov. 24 filed
■
Ekco Oil
City Bank of Cleveland
share).
working capital.
Office—200 W.
Street, Spartanburg, S. C. Underwriter—None.
a.m.
Ohio Edison Co.
★ Burton Manufacturing Corp.,
Spartanburg, S. C.
Dec. 10 (letter of
notification) 500 shares of 8% cumu¬
stock.
11
(Offering to stockholders—underwritten
Price—Approximately 64.48 cents per share. Proceeds—
To acquire leases and for
corporate purposes. Under¬
writer—None, To be named by amendment.
lative preferred
invited)
Common
January
stock
Bonds
—
Canada
common
be
Devil Peak Uranium, Ltd. (Nev.)
April 7 (letter of notification) 600,000 shares of common
stock (par one cent).
Price—50 cents per share. Preceeds
For rehabilitation and development program.
Office —Suite 839, 60 East 42nd St., New York 17, N. Y.
Underwriter—Gardner & Co., New York.
Co.)
Ohio Edison Co
Underwriter—E. I. Shelley Co., Den¬
Bristol Oils Ltd., Toronto,
Sept. 25 filed 1,000,000 shares of
Reid &
York, New Haven & Hartford RR
mon
new
Debentures
story
of investment buyers in the multibiiliondollar.;rnidwest
from
your
advertising counsel
or nearest
Chicago Tribune
advertising sales representative.
CHICAGO
TRIBUNE
The Tribune gives to the market tables of the
leading
stock exchanges the largest circulation given them in America
Volume
★
176
Number 5176
Fluar Corp.,
The Commercial and Financial Chronicle
...
Ltd., Los Angeles, Calif.
(12/19)
Nov. 26 filed 100.000 shares of capital stock
(par $2.50).
Price—To be supplied by amendment (estimated not to'
exceed $17 per share). Proceeds—For
working
Underwriter
William
—
R.
Staats
&
capital.
Co., Los Angeles.
Calif.
Ispetrol Corp., New York
29 filed 49,500 shares of
Oct.
($100
par
crude
oil
Marsh
stock. Price—At
common
share). Proceeds—To finance purchase of
enterprises and to purchase crude
per
oil for Israeli
oil
and
products for resale in Israel. Underwriter—
Israel Securities Corp., New York.
Food Fair Stores, Inc.,
Philadelphia, Pa.
Sept. 9 filed 100,000 shares of common stock (par $1)
to be offered to certain
employees pursuant to the terms
of stock purchase
plan.
Price—$3 below the average
Price—At par
($100 per share)/ Proceeds—For industrial and mineral
development of Israel. Underwriter — Israel Securities
market price
Corp., New York."
pleted.
for the month
Proceeds—For
in which
general
is
payment
funds.1
com¬
Underwriter—
None.
of DeLand.
Underwriter—None.
★ GoocTall
Rubber
Dec.
15
(letter of
stock
common
★ Grace
(W.
notification)
shares of class A
per share. Pro¬
1,500
Price—$12.50
Williamson, Jr.
R.)
&
Co., New York
(letter of notification) 9,300 shares of common
stock, (no par).
Price—$32.25 per share. Proceeds—To
Estate, of, Maurice
Bouvier, deceased. -■ Underwriters—
Merrill Lynch, Pierce,. Fenner & Beane and Blyth &
Co.,
Inc., both of New York.
filed
350.000
shares
12
stock
class
of
A
stock
common
—405
East
James, L. I.,
N.
Y.
Underwriter—
"•,V.. .7.
Hawthorne House of Nevada, Inc.
-*
($10
62nd
St., New York,
Otis, Inc., New York.
Dec.
12
filed
16,871
to be issuable upon
shares of
common
Proceeds
—
To
N.
Y.
Underwriter—
exercisable
in
1953.
stock
common
a
stock
(par
common
share). - Proceeds—For
new
construction and furnishings of motel.
OfficeRoom 4, Cornet Bldg./ Las
Vegas, Nev. Underwriter—
Lester L. LaFortune, Las
Vegas, Nev.
per
Hemisphere Western Oil Co.
Dec. 3 (letter of notification)
1,186,000 shares of common
stock (par one cent).
Price—25 cents per share. Pro¬
ceeds—To acquire working interest in oil wells.
Office
—Cravens
Bldg., Oklahoma City. Okla.
Winner & Meyers, Lock Haven, Pa.
H.
$1).
Underwriter-
(no
par)
com¬
subsidiary.
The options
per
share.
Proceeds—To
Nottbusch, the selling stockholder.
Office—
Lassiter
Corp., Charlotte, N. C.
(letter of notification) 14,344 shares of class B
common
stock
(par $5) and 2,500 shares of class A
common stock
(par $5). Price—$10 per share. Under¬
4
Charlotte, N. C. Proceeds—
selling stockholder.
Lee
Paper Co., Vicksburg, Mich.
(letter of notification) 30,000 shares of common
stock to be offered for subscription only by stockholders
of record Aug. 18. Price—At par ($16 per share). Pro¬
ceeds—For working capital. Underwriter—None.
Nov.
13
(letter of notification) 30,000 shares of 5%
lative convertible
scription
1952
by
cumu¬
preferred stock being offered for sub¬
stockholders
common
basis of 4V2
on
June 12 filed 10,000,000 shares of common stock
cents).
—
corporate purposes.
Underwriter—B. V. Christie & Co.,
Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New
York, N. Y. Telephone
WHitehall 3-2181.
McGraw
Co., Hartford, Conn.
Sept. 10 (letter of notification) 5,000 shares of common
(par $2) and warrants to purchase 20,000 shares
stock
of
common
of
one
stock at
share
and
3 filed
stock
10
113,000 shares of 6% cumulative preferred
common stock (par
to
be
class of stock.
per
Price—$50.10
unit. Proceeds
—
For new equipment and working
Office—385 Hillside Ave., Hillside, N. J. Under¬
capital.
writer—None.
of
Nov.
record
preferred shares for each 100
15,
com¬
if Holiday Plastics,
Inc., Kansas City, Mo.
Dec. 10 (letter of notification) 3,799 shares of common
stock
(no par).
Price—$13 per share.
Proceeds—For
working capital.
Office—410
East
Kansas
City, Mo.
Underwriter
Land, Inc., Kansas City, Mo.
Horizon Oil &
Nov. 24
Gas
—
27th
Street
Prugh,
-
Terrace,
Combest,
&
-V
-
(letter of notification) 600,000 shares of
common
(par 10 cents). Price—50 cents per share. Proceeds
—To drill test wells. Office—50
Broadway, New York,
N.
Y. Underwriter—Teden & Co., Inc., New York.
fering—Indefinitely postponed. Idaho
Maryland Mines Corp.
:
.
June 6 filed 200,000 shares of common stock
market
(on
the
San
Francisco
Of¬
: >
(par $1).
Stock
Ex¬
change).
Proceeds—To selling stockholder (Gwendolyn
MacBoyle Betchtold. as executrix of the la«t will and
testament
of
Francisco.
Calif.
Insurance
Nov
and
filed
25
Errol
Bechtold,
28,000
30,000 shares
common
of
shares.
500
Office—San
of
common
stock.
common
stock
(par
stock (par $50)
$10)
of which
are
share of preferred and two
Of
remaining
2,000
have been sold to directors and
common
1.500
are
to
be reserved for directors and sales representatives. Price
—$70
per
& Hoverson
J.)
Mid-Gulf Oil
ceeds—To
(letter of notification) 6,510 shares of common
Proceeds—To Mis.
Julia ,.Lindemann
Amendt,
the
selling
stockholder.
(par $1). Price—$2 per share.
Underwriter—Merrill
Lynch,
Pierce,
Fenner
&
Beane,
Milwaukee, Wis.
Underwriter—None.
if Lock Joint Pipe Co.
Dec. 16 (letter of notification)
100 shares of common
stock (no par).
Price — At market (about $610 per
share). Proceeds—To Walter W. Trickey, a Vice-Presi¬
dent.
Underwriter—Hemphill, Noyes & Cq., New York.
if Lonergan Manufacturing Co., Albion, Mich.
Dec. 11 (letter of notification) 6,000 shares of class B
common stock.
Price — $3 per share.
Proceeds — To
Jr., the selling stockholder.
Co., Chicago, 111.
unit. Proceeds—For working capital. Under¬
writer—None.
if Lorain Telephone Co.,
9
Dec.
stock
mon
Under¬
stockholders at rate of
shares
Price
held.
—
$20
one
per
new
share for each 15.41
share.
Proceeds
—
For
Office—203 W. Ninth Street, Lorain,
Louray Gas & Oil Corp., Phila., Pa.
5 (letter of notification) 290,000 shares of capital
stock.
Price
At par ($1 per share).
Proceeds — To
—
Securities, Inc., Oakland, Calif.
10-year participating agreements, as fol¬
10,240 units of $1,000 each, Single Payment Plan,
12
lows:
Series
filed
U.
and
Plan, Series E.
12,300 units of $1,200 each, Accumulative
Business—Investment
company.
Under¬
writer—None.
acquire and drill wells.
County Telephone & Telegraph Co.
Dec. 3 (letter of notification) 6,000 shares of 5% cumu¬
lative preferred stock, series B.
Price—At par ($25 per
share).
Proceeds—For
general corporate purposes.
Un¬
derwriter—H. W. Freeman & Co., Fort Meyers, Fla.
International Glass Corp., Beverly Hills, Calif.
Sept. 22 (letter of notification) 299,635 shares of com¬
stock, to be issued as follows: To William Hoeppner, 6,985 shares: to stockholders of Soft-Flex
Glass
mon
Fabrics
shares.
Corp.,
17,650
Price—At
par
shares; and to public, 275,000
($1 per share).
Proceeds—For
general corporate purposes. Office—119 South Beverly
Drive, Beverly Hills, Calif. Underwriter—Douglass &
Co., Beverly Hills, Calif.
&
Refining Co.
acquire additional properties. Office—927-929
Exploration Corp., Ltd., Toronto Canada
2,000,000 shares of common stock, each
share to have attached an "A," "B" and "C" warrant,
each giving the holder the right to buy one additional
share for each two shares purchased in two, three, or
five years, at $1, $2 and $3 per share, respectively. Price
—For 2,000,000 shares, $1 per share—Canadian.
Pro¬
ceeds—For exploration, development and acquisition of
properties. Underwriter—Brewis & White, Ltd., Toronto,
29
filed
Canada.
Names of United States underwriters to be sup¬
Mississippi Chemical Corp., Yazoo City, Miss.
Sept. 29 filed 2,000,000 shares of common stock (par $5),
of which
849,038 shares have been subscribed, paid for
issued, and an additional 107,550 shares have been
subscribed for as of Aug. 28 and will be issued in con¬
and
nection with expansion of
ammonia, plant.. The remain¬
ing shares will be offered for sale primarily to farmers
farm
groups.
Price
—
At
par.
Proceeds
—
For new
Underwriter—None.
Basin Oil Corp.
(N. Y.)
Sept. 19 (letter of notification) 300,000 shares of common
stock
(par 10 cents).
Price—$1 per share. Proceeds—
exploration and development expenses. Underwrites
—Aetna Securities Corp.,
New York.
(William S.), Inc., Newark, Ohio (1/7)
Dec. 12 filed $700,000 of 6% convertible sinking fund
subordinated debentures due Jan. 1, 1968. Price—100%.
Proceeds
For
new
equipment and working capital.
Business—Chain of retail stores.
Underwriter—Fulton,
if Moore
Reid
&
Co., Cleveland, Ohio.
Multicrafters, Inc., Lincolnwood, III.
Oct. 28 (letter of notification) 99.900 shares of 6% con¬
vertible prior preference stock. Price—At par ($3 per
share.
Proceeds
For new machinery and equipment.
—
Office—3517 Touhy
—Steele & Co.,
Ave., Lincolnwood, 111. Underwriter
New York.
if Nemco Oil & Gas Corp., Albuquerque, N. M.
Dec. 8 (letter ol notification) 50,000 shares of common
(par $1).
Price—$2.50 per share.
Proceeds—To
purchase oil and gas lands. Office—624 First National
Bank Building, Albuquerque, N. M.
Underwriter—E. H.
Martin, Albuquerque, N. M.
stock
Nov. 21
mon
Tungsten Corp., Mina, Nev.
(letter of notification) 4,000,000 shares of com¬
stock
(par
Proceeds—For
one
cent). Price—Five cents per share.
working capital. Underwriter—Tellier &
Co., New York.
•
New
England Telephone & Telegraph Co.
shares of capital stock being offered
Office—2717 Fidelity-Philadel¬
for
of
subscription by stockholders of record Dec. 10 at rate
new
share for each ten shares held; rights to
one
expire
Jan. 12. Price—At par ($100 per share). Pro¬
borrowings made from American Tele¬
on
ceeds—To repay
phia Trust Bldg., 123 So. Broad Street, Philadelphia, Pa.
phone & Telegraph Co., the parent (owner of 69.15%
Underwriter—None.
the
Bar
M
Dec.
3
stock.
Inter
each
of
Nov. 20 filed 232,558
Dec.
if Insurance
Dec.
share
Nevada
Underwriter—None.
Ohio.
one
Proceeds—For work¬
Mineral
July
Lorain, Ohio
of notification) 5,000 shares of common
(no par) to be offered lor subscription by com¬
(letter
property additions.
of
unit.
—
Inc., Minneapolis, Minn.
Dec. 8 (letter of notification)
12,431 shares of capital
stock.
Price—At par
($10 per share).
Proceeds—To
purchase machinery. Office — 701 Metropolitan Bldg.,
Minneapolis, Minn.
units
Market St., Wilmington, Del. Underwriter—W. C. Doehler Co., Jersey City, N. J.
For
Co.
21
stock
Simon J. Lorengan,
shares and all of the preferred stock
one
(A.
Underwriter—None.
writer—David A. Noyes &
Exchange Corp., Walla Walla, Wash.
to be offered in units of
shares
deceased).
Underwriter—None.
14.000 shares of preferred
Proceeds—For investment.
Lindemann
in
per
Nov. 10 (letter of notification) 400,000 shares of common
stock (par five cents). Price—60 cents per share. Pro¬
Montana
Price—At
if Linen Products,
Corp., N. Y.
stock
Price—At
To pay
if Lexington Trust Fund, New York
15 filed 350,000 shares of capital stock.
Nov.
privilege);
share).
per
Dec.
market.
-
offered
Price—$6
ing capital. Business—Purchase, processing, refining and
of Fluorspar. Underwriter — To be
supplied by
construction.
stock.
share to be offered in units
(par $5) and 113,000 shares of
cents)
writer—None.
common
per
to purchase four additional
Price—$19.87V2 per share. Proceeds—To Clifford
S. Strike, the selling stockholder.
Underwriter—Granbery, Marache & Co., New York.
prefcned and
share of
$6
warrants
shares.
and
one
Offering—Date indefinite.
(F. H.)
loans. Address — c/o S. H. Collier,
President of First National Bank, Mercedes, Tex. Under¬
—
(par 25
Price—$2 per share. Proceeds
For drilling ol
exploratory wells, acquisition of leases and for general
mon
shares held (with an oversubscription
rights to expire Dec. 31. Price—At par ($10
Proceeds
^
McCarthy (Glenn), Inc.
if Hi-Pac Corp., Hillside, N. J.
15 (letter of notification)
4,950 shares of 5% pre¬
ferred stock (par $50) and 4,950 shares of common stock
(par 10 cents) to be offered in units of one share of
Dec.
Underwriter—H. O. Peet
Co., Kansas City, Mo.
plied by amendment.
Leon Land & Cattle Co.
Nov. 6
&
common
Avenue, San Diego 1, Calif. Underwriter—
Dempsey-Tegeler & Co., San Diego, Calif.
To
Estate of James C.
Shepherd.
amendment.
of
Second
Dec.
stock
Steel Corp., North Kansas
City, Mo.
(letter of notification) 4,500 shares of common
(par $10). Price—$20.50 per share. Proceeds—To
sale
Underwriter—None.
Price—$1.50
1
Mex-American Minerals Corp., Granite City, III.
exercise of options to purchase
Wesco Foods Co.,
company and
are
Dec.
Nov.
stock held by certain officers and executives of the
mon
writer—R. S. Dickson & Co.,
notification) 30,000 shares of
par
market.
if Kroger Co., Cincinnati, Ohio
660
Nov. 17.(letter of
stock.
Price—At
5,912 shares of
At
★ Kopp Scientific Inc., New York
10 (letter of notification) 50,000 shares of common
stock (par 25 cents). Price—$2.25 per share. Proceeds—
To repay loans and notes and for working capital. Office
Frank
directors, officers and employees for services
and 300,000 shares will be offered to
public.
Price—To be supplied by amendment.
Proceeds—For
engineering and construction of prototype coaxial heli¬
-
—
L. Blakeslee, the selling stockholder.
Under¬
writer—Hulburd, Warren & Chandler, Chicago, 111.
holders,
None.
Price
Dec.
rendered
Office—St.
$10).
Arthur
(par $1), of which 50,000 shares will be issued to stock¬
copter.
(letter of notification)
(par
if Langley Corp., San Diego, Calif.
5 (letter of notification) 2,000 shares
Gyrodyne Co. of America, Inc.
13
Development Corp.
if Kalamazoo Stove & Furnace Co.
Gearhart &
Underwriter—None.
11
Nov.
Mineral
&
Dec.
Co.
(par $5).
ceeds—To F. B.
Industrial
Oct. 6 filed 30,000 shares of class A stock.
Dec.
★ Fountain of Youth, Inc., DeLand, Fla.
Dec. 8 (letter of
notification) 1,250 shares of class A
stock. Price—100 per share. Proceeds—To
develop prop¬
erty known as Ponce de Leon Springs, eight miles north
Dec.
Israel
103
(2427)
well.
Oil Co., Newcastle, Wyo.
(letter cf notification) 173,200 shares of common
Price—At par ($1 per share). Proceeds—To drill
Underwriter—Carroll, Kirchner & Jaquith, Inc.,
of
present outstanding stock), and for other corporate
Underwriter—None.
purposes.
Nielco
Nov.
19
Chemicals, Inc., Detroit, Mich.
(letter of notification) 34,800 shares of common
stock. Price—At par
($5 per share). Proceeds—To liqui¬
Denver, Colo.
date notes.
Magma King Manganese Mining Co.
Nov. 12 (letter of notification) 553,500 shares of common
Underwriter—Smith, Hague & Co., Detroit, Mich.
stock
—For
(par 10 cents). Price—50 cents per share. Proceeds
capital. Office — 532 Security Bldg.,
Phoenix, Ariz. Underwriter—Weber-Millican Co., New
working
York.
^Manchester (Harry S.), Inc., Madison, Wis.
8 (letter of notification)
10,000 shares of 5% cu¬
mulative preferred stock. Price—At par ($25 per share).
Proceeds—For working capital. Office—2 E. Mifflin St.,
Dec.
Madison
Underwriter—Harley
Inc., Madison, Wis.
3,
Wis.
Haydon
&
Co.,
Office—8129 Lyndon Ave., Detroit 21,
Mich.
Oils, Ltd., Calgary, Alta., Canada
1,000,000 shares of capital stock (par 20
cents—Canadian) and subscription warrants for 600,000
Northland
Nov.
21
filed
shares, of which the stock and subscription warrants for
400,000 shares are to be offered in units of 100 shares
subscription warrants for 40 shares. Price—
of stock and
$52
per
and
to
unit. Proceeds—For drilling of additional wells
purchase producing wells. Underwriter—M. S.
Gerber, Inc., New York.
Continued
on
page
104
_
104
(2428)
The Commercial and Financial Chronicle
Continued
jrom
page
103
k Republic Aviation Corp., Farmingdale, L. I., N. Y.
15
(letter of notification) 344 shares of common
stock (par $1). Price—At market (estimated at $20 per
share). Proceeds—To holders entitled to receive frac¬
Dec.
k Ohio Edison Co.
Dec.
11
each
ten
(1/7)
filed
479,846 shares of common stock (par $12)
to be offered for subscription by common stockholders of
record Jan. 8, 1953 on the basis of one new share for
shares
held
(with an oversubscription privi¬
on Jan. 23, 1953.
Price—To be
Proceeds—For repayment of bank
lege); rights to expire
fixed
by
loans
and
company.
for
determined
Merrill
Underwriters—-To
construction.
new
by
competitive
bidding.
be
Probable bidders:
Lynch,
Pierce, Fenner & Beane and Kidder,
Peabody & Co. (jointly); Lehman Brothers and Bear,
Stearns & Co.
(jointly); Morgan Stanley & Co.; The
First Boston Corp.
Bids—To be received up to 11 a.m.
(EST) on Jan. 7 at offices of Commonwealth Services
Inc., 20 Pine Street, New York 5, N. Y.
k Ohio Edison Co.
(1/13)
Dec. 11 filed 150,000 shares of preferred stock (par $100).
Proceeds
For repayment of bank loans and for new
tional
shares
in
connection
with
10%
dividend
stock
will
offer
New
the
York
shares
Curb
time
from
Exchange
to
either
time
in the
or
market. Underwriter—None.
Schweser's
(George) Sons, Inc., Fremont, Neb.
(letter of notification) 989 shares of 6% cumu¬
lative preferred stock.
Price—At par ($100 per share).
Proceeds—For working capital. Office—108 East 6th St.,
Fremont, Neb. Underwriter—None, but Ellis, Holyoke &
Co., Lincoln, Neb., will aot as broker.
To be
received
up
to 11
a.m.
(EST)
offices of Commonwealth Services,
New York 5, N. Y.
on Jan. 13, 1953 at
Inc., 20 Pine Street,
Telephone & Telegraph Co.
Oct. 24 filed 703,375 shares of common stock being of¬
fered for subscription by stockholders at rate of one new
share for each nine preferred or common shares held on
Dec. 3; rights to expire on Dec. 30. American Telephone &
Telegraph Co., the parent, presently owns more than
90% of the outstanding shares. Price—At par ($100 per
Proceeds—To repay advances and bank loans
for
new
construction.
Underwriter—None.
Pacific Western Oil Corp.
Aug. 5 filed 100.000 shares of
common
stock
(par $4).
Price—At the market. Proceeds—To J. Paul Getty, Presi¬
dent,
Underwriter — None, sales to be handled
brokers on the New York Stock Exchange.
by
Paradise Valley Oil Co., Reno, Nev.
Aug. 20 filed 3,000,000 shares of capital stock. Price—
At par (10 cents per share). Proceeds—To drill six wells
subleased land and for other corporate purposes. Un¬
on
derwriter—None, with sales to be made
on a
commission
basis (selling commission is two cents
per share).
fice—c/o Nevada Agency & Trust Co., Inc., Cheney
139 N.
Of¬
Bldg.,
Virginia St., Reno, Nev.
k Peoples Finance Co. of Denville, N. J.
15 (letter of
notification) $50,000 of 7% subordi¬
nated debentures.
Price—At par (in denominations of
Dec.
$100 each).
Proceeds—To make small loans.
Main St.,
Now
Denville, N. J. Underwriter—None.
being made.
Office—3
Offering—
ferred
stock
ferred
shares of pre¬
$1) and 100,000 shares of common
(par 10 cents) to be offered in units of one pre¬
stock
and
Proceeds
(par
one
common
share.
Seaboard
Price—$1.25
per
unit.
For operating capital. Address — c/o N. A.
Tinker, Jr., Mercantile Securities Bldg., Dallas, Tex.
Underwriter—Garrett & Co., Inc., Dallas, Tex.
working capital. Office — 945 South Flower
Angeles 15, Calif. Underwriter—None.
—
k Pioneer Enterprises,
Dec. 4
vances
Inc., Bluefield, W. V.
(letter of notification) 50,000 shares of common
Price—At par ($5 per share). Proceeds—For ad¬
to sales agents. Office—Law and Commerce
Bldg.,
Bluefield, W. V.
Underwriter—None.
2
(letter of notification) 60,000 shares of class B
common stock
being offered to all stockholders of rec¬
ord
or
Dec.
1
at
rate
of
one
new
share
for
each
class A
B share held.
Officers of company have waived suffi¬
preemptive rights (33,078 shares) so that
remaining stockholders may subscribe on a one-forone basis.
Price—At par ($5 per share). Proceeds—For
expansion and modernization of plant and for
working
capital.
Office —403 Oliver
Bldg., Pittsburgh 22, Pa.
cient
of
Underwriter—None.
chinery and new construction. Address—Box
788, Polson, Mont. Underwriter—None.
(1/5-9)
—
—
equipment and new construction.
<rf heavy duty power
transmission
etc.
&
Business—Production
chain, prockets, gears,
Office—Longview, Tex. Underwriter—Dallas Rupe
Son, Dallas, Texas. Offering—Expected first week in
January.
5, Ohio. Underwriters—Ball, Burge &
Kraus, Cleveland
Ohio, and Collin, Norton & Co.,
Toledo, Ohio.
k Preston Moss Fund,
Inc., Boston, Mass.
15 filed
5,000 shares of capital stock.
Price—At
market. Proceeds—For
investment. Underwriter—None.
Dec.
Office—73 Bliss Road,
Kidder, Peabody & Co.,
20-year
Price—At par (in
denominations of $500 and
$1,000). Proceeds—To make
loans to Americans who
desire to purchase
public and
private housing and other structures in
Israel
Office
11 West 42nd
St., New York, N. Y. Underwriter—None.
Clifton
common
stock
(par $1)
to be issued to G.
the promoter. Price—Of class A stock, at pa
Proceeds—To drill and equip wells. Office—1213 Sout
as
Underwriter—Non
k Thompson Creek Coal & Coke Corp.
Dec. 10 (letter of notification) 16,250 shares of commo
stock.
Price
At par ($1 per share).
Proceeds — Fo
working capital. Address—P. O. Box 7772, Denver 15
—
Underwriter—None.
Colo.
V
:
k Tijuana Mines, Inc., Phoenix, Ariz.
Dec. 8 (letter of notification) 1,000 shares of commo:
stock.
Price—At par ($100 per share).
Proceeds—Fo
Office—931 E. Denton Lane
Underwriter—None.
-
•
-
k Toledo Edison Co.
Dec. 17 filed 600,000 shares of common stock (par $5)
Price—To be supplied by amendment. ; Proceeds—Foi
construction expenditures. Underwriters—The First Bos¬
Corp., New York; and Collins, Norton & Co., Toledo
Torhio Oil Corp., Ltd., Toronto, Canada
Aug. 21 filed 300,000 shares of common stock (par $1) it
k Security Controls, Inc., Buffalo, N. Y.
Dec. 15
(letter of notification)
18,000 shares of common
stock.
Price—At par ($10 per share).
Proceeds—For
purchase of materials, developmental costs and working
capital. Office—257 Franklin St., Buffalo 2, N. Y. Un¬
derwriter—None.
be offered first to stockholders and then to the genei
public. Price — 60 cents per share. Proceeds—For ex
ploration of oil and gas properties, and to drill a te
well. Underwriter—None, but offering to public will
handled through brokers.
j
,
Sinclair Oil Corp.
Nov. 10 filed
298,735 shares of common stock (no par)
to be offered to certain officers and other
employees of
the company and its subsidiaries under the Stock Pur¬
chase and Option Plan. Price—$39.50
share. Pro¬
Underwriter—
per
ceeds—For
general corporate
purposes.
None.
k Smith
(Alexander), Inc.
(letter of notification) 6,625 shares of common
stock, of which 3,625 shares are to be sold immediately
and 3,000 shares in
January, 1953. Price—At market.
Dec.
16
Proceeds—To Alexander S. Cochran, a
director, Under¬
^Southern California Edison Co.
Dec.
11
filed
500,000 shares of
Proceeds—To
tion.
bank
Underwriters—To
bidding.
Boston
on
retire
loans
be
(1/14)
common
and
stock
for
determined
(par $25).
new
by
construc¬
competitive
Probable bidders: Blyth & Co., Inc.; The First
Corp.; White, Weld &/Co.
Bids—To be received
Jan. 14.
.
stockholder.
Office
1732 Life of America Building
Dallas, Texas.
Underwriters—Harry Leslie; Taft Hold
ing Corp.; and Zerike Co.
* -w
—
k Trans-Texas Oil & Gas Co., Fort Worth, Tex.
(letter of notification) 300,000 shares of commo.
stock (par 10 cents).
Price—$1 per share. Proceeds-^
For
drilling
expenses.
Office — 714 Dan Waggone
Building, Fort Worth, Texas. ^ Underwriter—Degaetan
Securities Co., New York. •
Dec. 8
k Union Finance Co.,
Dec.
12
Inc., Tampa, Fla.
(letter of notification) 4,000 shares of 6%
pre
ferred stock
(par $20) and 4,000 shares of common stock
(par $1). Price—At par. Proceeds—For working capi¬
tal.
Office—22 Western Union Building, Tampa, Fla.;
of shares of
common
employee
stock to
stock
be issued
purchase
?
United Equipment & Service, Inc., Baltimore, Md
Nov.
20
(letter
Price—At
par
of notification)
(in
$238,400
denominations
of
of
$100,
6%
$500,
bonds
$1,00
and $5,000 each). Proceeds—To reduce outstanding notes
Office—629 Title Bldg., Baltimore, Md. Underwriter
None.
k Starrett (L. S.) Co., Athol, Mass.
Dec. 12 (letter of notification)
$300,000 aggregate amount
under the
plan.
com¬
Underwriter—
None.
United Petroleum & Mining Corp., Bismarck, N. D
Nov. 17
(letter of notification) 150,000 shares of class
voting stock and 150,00 shares of 4% class B non-votin
stock.
Price—$1 per share.
Proceeds—To purchase 01
and gas leases.
Office—222 Main Street, Bismarck, N. D
.
State
Street
Investment
Corp.
Oct. 24 filed 180,556 shares of
capital stock (no par)
being offered for subscription by stockholders of record
Nov. 5, 1952, at rate of one new share for each 10 shares
held; rights to expire on Dec. 20. Price—At net asset
in
warrants
effect
are
when
properly
executed
received from stockholders.
subscription
Proceeds—For
investment. Underwriter—None.
Sterling Telecasting Co., Spartanburg, S. C.
(letter of notification) 60,000 shares of common
Dec. 2
Price
At par ($5 per share).
Proceeds
television station.
Office—124V2 East
—
Street, Spartanburg, S. C.
—
To
Main
Underwriter—A. M. Law
Co., Spartanburg, S. C.
■
'
&
_
and increased costs.
Chicago 13, 111.
Office—4101
Ravens wood
Offering—Probaby
some
June 4
Avenue,
the Toronto Stock
time in October.
Underwriter—To be named by amendment.
-
.
Warren Petroleum Corp., Tulsa, Okla.
Nov.
stock
7
(letter of notification) 3,000 shares of commo
(par $3). Price—At market. Proceeds—To J.
La Fortune and Mrs. Gertrude La Fortune.
may
-Of¬
be with¬
-
Underwrite
—Harris, Upham & Co., New York.
West Coast
2,500,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds—
To buy property for oil prospecting.
Office—Houston,
drawn.
200,000 shares at prices ranging from 15 cents to $1
Estimated public offering prices range from
$1.50 per share. Proceeds—For mining opei
tions. Underwriter—Jack Rogers, of Montreal, Canac
who is the "optionee" of the stock to be taken down.
Pipe Line Co., Dallas, Tex.
$29,000,000 12-year 6% debentures due Dec
15, 1964, and 580,000 shares of common stock (par 5
cents) to be offered in units of one $50 debenture and
one share of stock.
Price—To be supplied by amend
ment.
Proceeds—From sale of units and 1,125,000 addi
tional shares of common stock and private sale of $55,
000,000 first mortgage bonds, to be used to build a 1,030
Nov. 20 filed
filed
fering—Tentatively postponed. Statement
Montreal, Canada
Oct. 22 filed 1,050,000 shares of common stock. Prk
To be taken down in 10 blocks ranging from 50,000
Products Corp., Red Bank, N. J.
•
(letter of notification) 75,000 shares of commo
stock (par 50 cents).
Priee—$2.50 per share.
Procec
—For working capital.
Office—42 West Street, R
Bank, N. J. Underwriter—None.
Exchange at time of offering. Proceeds — For working
capital. Underwriter—F. W. MacDonald & Co., Inc., New
York.
Victoria Copper Zinc Mines Ltd.,
Video
Sweet Grass Oils, Ltd.,
Toronto, Canada
July 29 filed 375,000 shares of common stock (no par).
on
be sold in units of 30 shares and one participating unit
Price—$120 per unit. Proceeds—To increase capital an
surplus. Office—7 Weldon, Phoenix, Ariz. Underwrite
—Life Underwriters, Inc., Phoenix, Ariz.
Oct. 3
Underwriter—None.
Price—To be related to quotation
k United Security Life, Phoenix, Ariz.
Dec. 2 (letter of notification) 75,000 shares of class
common stock
(par $1) and 2,500 participating units t
cents to
Price—$100 per share.
Proceeds—To in¬
equity capital to take care of increased business
crease
Underwriter—John G. Kinnard & Co., Minneapolis, Min
share.
Streeter-Amet Co., Chicago, III.
Aug. 27 (letter of notification) 2,367 shares of common
stock (par $50) to be offered for subscription
by common
stockholders at rate of one new share for each four
Tex.
,
Underwriter—None.
Sulphur Co., New York (12/19)
Nov. 7 filed 1,250,000 shares of common stock
(par 10
cents). Price—$1 per share. Proceeds—For construction
of plant and purchase of new
equipment and for working
capital. Underwriters—Gearhart & Otis, Inc., and F. L.
pany's
.
^Transcontinental Oil Carp., Dallas, Tex.
Dec. 11 (letter of notification) 102,000 shares of common
stock (par 25 cents). Price—At market (about 81 cent
per share).
Proceeds—To C. J. Simpson, the selling
Standard
Texas General Production Co.
Dec.
5%
of class B
Ohio.
—
shares held.
Prestole Corp.,
Toledo, Ohio
Dec. 5 (letter of
notification) 20,000 shares of common
stock (par $1).
Price—$5 per share/ Proceeds—To pur¬
chase factory
building. Office—1345 Miami St., Toledo
k Rassco Financial Corp., New York
11
(letter of notification)
$250,000
sinking fund debentures due 1972.
by stockholders; 6,226l/z shares of class A common stoc
exchange for leases and beneficial interest; an
2,679 V2 shares of class A common stock and 13,750 shar
ton
construct
Sept. 25 filed 250,000 shares of common stock
(par $l).i
Price
$2 per share.
Proceeds
For machinery and
D.
(letter of notification) 1,000 shares of class
stock (par $25) to be offered for subscriptio
in
and for other corporate purposes.
stock.
Manufacturing Co.
24
general corporate purposes.
Sept. 8 (letter of notification) 5,000 shares of non-voting
stock, series B (no par). Price—$10 per share.
Proceeds—To acquire real estate and buildings, convert
found stages, install recording equipment and
cameras,
value
k Poison Plywood Co., Poison, Mont.
Dec. 8 (letter of
notification) 183,997 shares of common
stock. Price—At par ($1
per share). Proceeds—For ma¬
Powers
•TexSoDak Oil Co., Sioux Falls, S.
Nov.
Phoenix, Ariz.
Productions, Inc., Newport, R. I.
their
the
•
Los
Rossmann & Co., both of New York.
Pittsburgh Reflector Co.
Dec.
St.,
common
•
stock.
Finance Co., Los Angeles, Calif.
(letter of notification) 14,000 shares of common
(par $1). Price—$20.75 per share. Proceeds—For
Nov. 14
writer—None.
Petroleum Service, Inc. (Texas)
Oct. 29 (letter of notification) 100,000
Houston, Tex.
Underwriter—Scott, Khoury & Co., Inc., New York.
Newport, R. I. Underwriter
Providence, R. I.
share).
and
None.
Seacrest
Inc.,
Hawthorne Ave., Sioux Falls, S. D.
Scott Paper Co.
Dec. 5 filed $1,000,000 of memberships in the company's
Stock Purchase Plan for 1953 and 23,529 shares of com¬
mon stock purchasable
under the plan. Underwriter—
stock
Pacific
Co.,
stock (par 10 cents). Price—50 cents per share. Procee"
—For working capital. Office—1 Main St., Houston, Te
common
Oct. 17
Western Oil
Nov. 12 (letter of notification) 100,000 shares of commo
the
on
over-the-counter
—
Stearns & Co. (jointly); W. C. Langle.y & Co., Glore,
Forgan & Co. and White, Weld & Co. (jointly). Bids—
Oil Exploration Co., Fort Worth, Tex.
(letter of notification) 1,200,000 shares of com¬
mon stock (par 10 cents). Price—25 cents per share. Pro¬
ceeds—To drill oil and gas wells and for acquisition o
properties. Underwriter—Peter W. Spiess Co., New Yor
5
Texas
Sapphire Petroleums Ltd., Toronto, Canada
28 filed 50,000 shares of common stock (par $1—
Canadian). Price—To be supplied by amendment. Pro¬
ceeds—To Ken Kelman, the selling stockholder, who
construction.
Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Morgan Stanley &
Co.; The First Boston Corp.; Lehman Brothers and Bear,
Texas
Dec,
payable Dec. 20. Underwriter—None.
Oct.
Thursday, December 13,195
...
yolume 176
Number 5178
mile crude oil
.
.
.
The Commercial and Financial Chronicle
Underwriters—White, Weld &
Corp., both of New York. Of¬
fering—Not to be made until after Jan. 1, 1953.
pipeline.
Co. and Union Securities
West Coast
Pipe Line Co., 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¬
Nov. 20 filed
curities Corp., both of New
hfter Jan. 1, 1953.
•
York.
Offering—To be made
West Flagler Amusement Co., Inc., Miami, Fla.
20 filed 170,000 shares of common stock (par 50
lov.
cents).
Price—$10
share.
Proceeds—To nine selling
stockholders.
Business—Amusement park. Is owner of
West Flagler Kennel Club.
Underwriter—Floyd D. Cerf
Jf, Co., Miami, Fla., and Chicago, 111. Offering — Ex¬
pected late this month or early in January.
per
.
Western Natural
Gas
Co., Houston, Tex.
Nov.
25
stock
being offered for subscription by
filed
shares
183,002
holders of record Dec.
ferred
stock
(with
convertible
of
15}1at rate of
for-each 20 .shares
of
preferred
common
one
stock¬
share of
pre¬
stock
held
common
oversubscription privilege); rights will expire
an
Dec. 29. Price—At par ($30 per share). Proceeds—To
n
Columbia Gas System, Inc., N. Y.
was announced company plans to issue and sell
common stock and
additional debentures early in the
Oct. 10 it
Spring of 1953.
Company has sought SEC author¬
ity to borrow from banks an aggregate of $25,000,000.
Underwriters—To be determined by competitive bidding.
Probable bidders: For stock, Merrill Lynch, Pierce, Fen¬
ner & Beane,
White, Weld & Co. and R. W. Pressprich
& Co. (jointly); Morgan Stanley & Co. For
debentures,
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Culver
Nov.
Pioneer Investment Co.,
filed 35,000 shares-of common
11
rice—$30
ions
as
share.
per
finance
a
Proceeds—To
Oakland, Calif.
stock
(par $10).
commence
for
and
company
opera-
working capital.
Underwriter—None.
Westshore
Hospital, Inc., Tampa, Fla.
Dec. 3
(letter of notification) 30,000 shares of common
(of which 1.250 shares will be issued to Dr. Samuel
stock
Hibbs
John
and
Himes for services rendered).
share). Proceeds—For property
id equipment expenses. Office—349 Plant
Ave., Tampa,
Fla. Underwriter—Louis C. McClure & Co.,
Tampa, Fla.
r.
Price—At par
Wisdom
($10
R.
per
cumulative
preferred
;k
(par $100) and 6,600 shares of common stock (par
10) to be offered in units of one share of preferred and
share of
ne
stock.
Price—$110 per unit. Pronational picture magazine. Unerwriter—None. An earlier registration statement filed
uly 14, 1952, covering a like offering of preferred and
ommon shares was withdrawn Aug.
1, 1952.
eeds—To
\
common
publish
on or
(1/26)
that
company proposes to
about Jan. 26, 1953, a total of
23,640 additional shares of common stock on a share-forshare basis; rights to expire Feb. 9.
Price—At par ($2
per share).
Proceeds—For investment. Office—105 West
Madison
Street, Chicago, 111.
Underwriter—None.
-A-Delaware, Lackawanna & Western RR. (1/6)
16 it was announced company plans to issue and
sell at competitive bidding on Jan. 6 an issue of $6,500,000
equipment trust certificates.
Probable bidders:
Dec.
Halsey, Stuart & Co.; Salomon Bros & Hutzler; and Kid¬
der, Peabody & Co., Dick & Merle-Smith and Wood,
Struthers &
Co.
(jointly).
Utilities
Eastern
cient
amount
new
common
raise
stock to
approximately
$2,000,000. plan further provides that Blackstone Valley
Gas & Electric Co., Brockton Edison Co., and Fall River
Electric Light Co. issue mortgage bonds. Proceeds—To
repay bank loans.
Underwriters—For EUA debentures
may be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc. (for bonds only);
Lehman Brothers; Estabrook & Co. and Stone & Webster
Securities Corp. (jointly); Glore, Forgan & Co. and Har¬
riman Ripley & Co., Inc. (jointly).
was
announced company may offer
early next
$10,000,000 of preferred stock.
Proceeds—To repay
loans and for construction program.
year
$8,000,000 of bank
Underwriters—May be determined by competitive bid¬
ding. Probable bidders: Blyth & Co., Inc.; Kidder, Pea¬
body & Co.; White, Weld & Co.; The First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Beane.
Meeting —
Stockholders
of
will
Jan.
vote
20
authorizing
on
an
issue
$20,000,000 preferred stock.
European American Airlines, Inc.
June 11 it was reported company plans to raise
ock
$7.50
ad¬
an
ditional
ughes & Co., Denver, Colo.
$400,000 of equity capital. An issue of $200,000
of capital stock was just recently placed privately at
Underwriter—Gearhart &
share.
per
Otis,
Inc.,
if Follansbee Steel Corp.
Dec. 16, M. A. Follansbee, President, said the company
plans additional equity financing, totaling about $4,500,000.
This may be done through a rights offering to
stockholders.
Proceeds—Together with funds from pro¬
Aluminium Ltd.
be undertaken in 1953 to meet the
crease
estimated cost
major part of the in¬
of the
Boston Corp., and A. E. Ames & Co., Ltd.,
dealer-managers in stock offering to stockhold¬
as
in Oct. 1951.
2
it
Company
reported Bank plans offering of 250,000
was
dditional shares of capital stock to its stockholders
one-for-ten
a
Boston
basis.
Underwriter—Probably
The
on
First
Electric
was announced company intends to sell early
approximately $10,000,000 of additional new se¬
curities, .viz:, $8,000,000 of first mortgage bonds and
bout $2,000,000 of common or preferred stock. Proceeds
new construction
and repayment of bank loans.
Underwriters—May be determined by competitive bid¬
ing. Probable bidders: fl) For bonds only—Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler. (2) For
—For
stocks:
and
Dean
Merrill
Witter
&
Lynch, Pierce, Fenner &
(jointly); Kidder, Pea-
Co.
body & Co.; Blyth & Co., Inc.
Central
Maine
Power Co.
after March 1,
ield
approximately $5,000,000 to refund the then out¬
Underwriters—To be deter¬
mined by competitive bidding. Probable bidder—(1) For
>nds, Halsey, Stuart & Co. Inc.; Coffin & Burr, Inc. and
The First Boston Corp. (jointly); Blyth & Co., Inc. and
Kidder, Peabody & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Beane and White, Weld & Co. (jointly); Harriman Ripley & Co., Inc.; Salomon Bros. & Hutzler.
(2) For stock, Blyth & Co., Inc. and Kidder, Peabody &
Co. (jointly); Coffin & Burr, Inc. and The First Boston
Corp. (jointly); Harriman Ripley & Co., Inc.
standing short-term notes.
Charter Oil
Co., Ltd.
Tov. 18, it was reported that company plans to offer and
ell 900,000 additional shares of common stock (no par).
later
(around
$1.70 per share).
Underwriters—LehBrothers and Bear, Stearns & Co. for about 800,000
named
Toceeds—For expansion program.
nan
offered in Canada.
iot expected until after Jan. 1, 1953.
hares;
balance
to
be
if Cinerama Productions Corp.
Dec. 11 it was reported corporation
of
securities
applied to ICC
authority to issue and sell $1,100,000 6% convertible
Proceeds—To retire
outstanding debentures and preferred stock and for new
equipment and working capital. Underwriter—Allen &
Co., New York; Peters, Writer & Christenson, Denver,
Colo.; and Edward D. Jones & Co., St. Louis, Mo.
tional shares
(probably comjnon
may
stock).
May be Hayden, Stone & Co., New York.
Offering
—
sell $5,000,000
Underwriter-
Dec. 10 it
to
customers
of two
preferred
stock
$5)
per
will be used to buy
000)
and
stock (par
(par $1) at $11
shares
and
unit.
a
of
cumulative
7%
share of common
Proceeds (about $250,-
one
fleet of refrigerated trucks
expand food-handling facilities.
Indiana & Michigan Electric Co.
Nov. 6 it
in
1953
reported
was
some
company
bonds and/or preferred stock.
writers—May
Proceeds—
construction. Under¬
determined by competitive bidding.
Probable bidders: (1) for bonds—Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; The First Boston Corp.; Union
Securities Corp.; Harriman Ripley & Co., Inc.
(2) for
preferred—Lehman Brothers; The First Boston Corp.;
be
Smith, Barney & Co.
lowa»lllinois
Nov.
$8,000,000
first
preferred
stock
loans
and
determined
for
& Electric
approved
mortgage
(par
new
bonds
$100).
Co.
plans
(1/27/53)
to
and
issue
60.000
Proceeds—To
construction.
sell
and
shares
repay
of
bank
Underwriters—To
be
by competitive
bidding. Probable bidders:
For bonds, Halsey, Stuart & Co. Inc.; Harriman, Ripley
& Co. Inc., Union Securities Corp. and White, Weld &
Co. (jointly); Equitable Securities Corp.; Glore. Forgan
&
Co.;
bonds. Proceeds—To
repay bank
loans and for new
construction. Underwriters—To be determined
by com¬
petitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Glore, Forgan &
Co.; Blyth & Co., Inc. and
Lazard
Freres
&
Co.
(jointly);
The
First
Boston
Corp.; White, Weld & Co. and Shields & Co.
(jointly);
Smith, Barney & Co.; Kuhn, Loeb & Co., Salomon Bra*
& Hutzler.and Union Securities
able
Securities
Corp.;
&
Harris,
Hall
&
Co. -(Inc.);
Lehman
Brothers;
,
Corp. (jointly); Equit¬
Lehman
Brothers
and
Co.
Bear;
(jointly); Harriman Ripley & Co., Inc.
Bids—Tentatively scheduled to be received on Jan. 20.
Macy
(R. H.)
Nov. 13 it
in
1953
in
& Co.
reported company may do
was
the
form
of
debentures
loans.
Previous financing
Lehman Brothers.
was
done
or
financing.
some
long-term bank
privately through
Missouri Power & Light Co.
Dec. 11 the SEC authorized the
company to borrow
$2,-
800,000 from The Chase National Bank of the
City of
York, the loan to be later funded through a form
of permanent
financing, Probable bidders for bonds:
Halsey, Stuart & Co. Inc.; White, Weld & Co., Kidder,
Peabody & Co. and Shields & Co. (jointly).
New
Monongahela Power Co.
Dec.
sale
11
it
was announced
company plans issuance
the middle of 1953 of
$10,000,000 first
near
and.
mortgage
Underwriters;—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
W. C. Langley & Co. and The First Boston
Corp. (joint¬
bonds.
ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co.; Glorew
Forgan & Co.; Lehman Brothers; Equitable Securities
Corp.; Union Securities Corp. and Salomon- Bros. &
Hutzler
(jointly); Merrill Lynch, Pierce, Fenner &
Beane; Harriman Ripley & Co., Inc.
• Montreal Transportation Commission
(1/14)
9 it was reported early
registration is expected of
$18,000,000 of 20-year 4V4% guaranteed bonds which
may be payable in both U. S. and Canadian funds. Un¬
Dec.
&
Co.,
New
York
and
Savard
&
Hart, Montreal, Canada.
Narragansett Electric Co.
Oct. 7 it
was reported
company plans issuance and sale
$10,000,000 first mortgage bonds, series D. Pro¬
To repay bank loans and for new construction.
of about
ceeds
—
Underwriters—To be determined by competitive
Probable bidders: Halsey, Stuart & Co.
bidding.
Inc.; Kuhn, Loeb
Glore, Forgan & Co. (jointly); Salomon Bros.
& Hutzler; Kidder, Peabody & Co. and Stone & Web¬
ster Securities Corp.
(jointly); Lehman Brothers andl
Goldman, Sachs & Co. (jointly); Union Securities Corp.;
The First Boston
Corp.; White, Weld & Co.
Offering—
Expected early in 1953.
if National Can Corp.
Dec.
13
C. L.
Thompson, Chairman and President,
on
an¬
Dec. 30 will vote, among other
on approving the issuance and sale of $1,500,006
10-year 5% convertible subordinate debentures.
National
Dec.
all
5
it
City Bank of Cleveland
was
announced
stockholders
of
record
company
Jan.
(1/13)
plans to offer
to
2,
next, 125,000 addi¬
tional shares of capital stock (par
$16)_#at the rate of one
new share for each six shares
held; rights to expire on
Feb.
2.
Offering is subject to approval of stockholders
Jan. 13.
Price—$36 per share. Proceeds—To increase
capital and surplus.
Underwriter — Merrill, Turben &
on
Co., Cleveland, Ohio.
New Orleans
Public Service
Inc.
July 24 company announced plans to issue and sell $6^000.000 of first mortgage bonds due Dec. 1, 1982.
ceeds—For
new
construction. Underwriters—To
be de¬
termined
by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; Lehman Brothers; Kidder,
Peabody & Co. and Stone & Webster Securities Corp.
(jointly); Equitable Securities Corp.; Union Securities
Corp.
Bids—Originally scheduled to be received on
Dec. 15 have been postponed -until around the end of
•
New
1953.
-
.
York, New Haven & Hartford RR.
(1/7)
Nov. 12 company applied to ICC for permission to issue
and sell $14,000,000 of Harlem River Division first mort¬
bonds, series A, due Jan. 1, 1973. Proceeds—To
gether, with other funds, to refund $14,427,000 Harlen#
gage
River & Port Chester first
mortgage 4% bonds due May
1, 1954. Underwriter— ^o be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Peabody & Co.; Kuhn, Loeb & Co.: Morgan.
Stanley & Co.; The First Boston Corp.; Smith, Barnr; c'v
Co.; W. C. Langley & Co.; Merrill Lynch, Pierce, r ennsr
& Beane and Bl.yth & Co. Inc., (jointly). Bids—To be
received up to nocti (EST) cn Jan. 7 at company's office
Kidder,
Gas
directors
26
a.m.
Light Co. (1/20)
19, H. B. Munsell, President, announced
company
to issue and sell $12,000,000 of first
mortgage
plans
the first quarter of
plans to issue and sell
To repay bank loans and for new
11
things,
Pittsburgh, Pa.
plans offer and sale
units
at
Kansas City Power &
Nov.
may
announced company
of
received
Jamaica Water
Supply Co.
2 it was reported
company plans late in 1953 to
raise about $2,000,000
(about 60% in bonds and 40% in
stock). Underwriter—Blyth &
Co., Inc., New York.
to stockholders rather than resort to bor¬
was
be
Dec.
nounced stockholders
President, announced that its do¬
spend around $80,000,000 for
new construction in 1953.
Of this total, $15,000,000 will
be provided internally leaving about $65,000,000 to be
financed by the sale of securities.
Subsidiaries expect
to sell around $49,000,000 of bonds, debentures and pre¬
ferred stocks and 0MPU will furnish about $16,000,000 to
them. GPU expects to obtain the funds from bank loans,
the sale of debentures, the sale of common stock or a
combination of these.
If present conditions continue
well into next year, GPU would expect to offer addi¬
subsidiaries
mestic
if Harris Foods Co.,
soon
1953, intends to issue and sell $6,000,000 of first and
eneral mortgage bonds and sufficient common stock to
be
announced company has
rowing.
ept. 2 it was announced company
*rice--To
(12/29)
Freightlines, Inc.
was
Nov. 15, A. F. Tegen,
Power Co.
in 1953
and
it
Oct. 17
for
to
Jan. 27.
on
& Co. and
General Public Utilities Corp.
Oct. 7 it
eane
Garrett
Corp., New York.
California
onds
program.
debentures due 1967. Price—At par.
Bank of the Manhattan
Dec.
posed $29,500,000 RFC loan, would be used for expansion
expansion program.
First
le
acted
ers
in the
financing will
(CST)
derwriters—Shields
New York.
ct. 15 directors expected that additional
Bids—Tentatively scheduled
•
Equitable Gas Co.
17
(letter 6f,notification) 500,000 shares of common
(par> five cents).;Price—25 cents per share. Proeeds —: For oil and gas leases. Underwriter — R. L.
of
105
Blyth & Co., Inc.; The First Boston Corp.; Smith,
Barney
& Co.
For preferred, Blyth &
Co., Inc.; Merrill Lync£
Pierce, Fenner & Beane; Glore, Forgan & Co.; Lehman
Brothers; Salomon Bros. & Hutzler and Union Securities
Corp. (jointly); Kidder, Peabody &
Co.; Harriman, Rip¬
ley & Co. Inc. Registration—Expected late in December.
Stearns
Associates
was announced that amended plan of reor¬
ganization of this company and subsidiaries calls for is¬
suance by company of $7,000,000 debentures and a suffi¬
Wyoming National Oil Co., Inc., Denver, Colo.
ov.
announced
was
offer to stockholders
Nov. 20 it
Magazine, Inc., Beverly Hills, Calif.
ept. 17 filed 6,600 shares of 5%
Corp., Chicago, III.
it
22
Sept. 3 it
Western
Dec.
Proceeds—To repay bank loans and for
construction program.
retire oustanding preferred stock and bank debt. Under¬
writer—White, Weld & Co., New York.
(2429)
in New York City.
Northern Indiana Public Service Co.
Sept. 18 it was reported company may issue and
shortly after the close of this jcar some additional
Continued
on
page
set
pre-
1GS
s
106
The Commercial and
(2430)
Continued
The First Boston Corp. and Coffin & Burr, Inc.
front page 105
Underwriters—May be Cen¬
ferred and common stock.
Inc. and Merrill
Co. (Inc.), Blyth & Co.,
Lynch, Pierce, Fenner & Beane.
tral Republic
i
< \
competitive
by
bidding. Probable bidders:
First
For bonds, Halsey, Stuart & Co., Inc.; The
Boston Corp.; Union Securities Corp. and Salomon
(1)
Bros.
& Hutzler (jointly); Kuhn, Loeb & Co., Harriman Ripley
&
Co., Inc. and Stone & Webster Securities Corp.
(jointly); Blyth & Co. Inc.; Glore Forgan & Co. (2)
For preferred stock, Blyth & Co., Inc.; Dillon, Read &
Co., Inc.; Harriman Ripley & Co., Inc. and Stone &
(jointly); Glore, Forgan & Co.;
Webster Securities Corp.
Securi¬
(jointly). Bids—
Tentatively expected to be received on Jan. 20 at 11 a.m.
(EST). Registration—Scheduled for Dec. 18.
The First Boston Corp.; Union
Lehman Brothers;
ties Corp. and
Salomon Bros. & Hutzler
Oklahoma Gas & Electric Co.
Nov.
13
it
announced company plans to issue and
was
additional
sell
basis
stock
common
(2,411,945
Proceeds—For
about
at
one-for-ten
a
shares of common stock outstanding).
construction. Underwriters—May be
new
sell
total
a
of
scription to
which
plans to issue and
company
$101,758,900
dinated debentures,
of
convertible
new
Expected
filed a second substitute application
proposing to construct a 1,384-mile trans¬
the San Juan Basin in New
Mexico and Colorado to market areas in the Pacific
Northwest. Estimated overall capital cost of the project
Aug. 29
company
after
with the FPC
Merrill
York.
Financing is expected to consist of first
mortgage pipe line bonds and preferred and common
stocks, and is expected to be completed by April, 1953.
Underwriters—White, Weld & Co. and Kidder, Peabody
& Co., both of New York, and Dominion Securities Corp.,
Ltd., Toronto, Canada.
is $179,000,000.
Pan-American
Oct.
issue
an
of
over
$3,000,000
of
stock
common
(probably around 500,000 shares to be offered to stock¬
on a l-for-2V2 basis. Price—About $7 per share.
Proceeds
For construction
program. Underwriters —
holders
—
and New York.
Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades & Co.,
both of New York.
18.
subsidiaries
announced that company and each of its
will
issue
mortgage
securities. Proceeds—To finance
bonds
Boston
bidders:
Halsey, Stuart
competitive bidders.
& Co. Inc.; The First
Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co.
facilities
it
had
sell
Pierce,
Natural
FPC
3
Fenner
Gas
authorized
estimated
been
&
Stuart & Co. Inc.; Stone &
Nov. 26 it
.&■
subor¬
approving
offering and stock dividend of 4,000 shares.
Service Co. of New Hampshire
it was announced company plans to
Public
3
issue and
of bonds in May or June,
1953, and in the latter part of 1953 to issue sufficient
common shares to raise about $4,000,000.
Proceeds—To
sell approximately $5,000,000
loans
bank
repay
*3 writers—To
and
for
determined
be
construction.
new
by
competitive
Under-
bidding.
Probable bidders:
For bonds, Halsey, Stuart & Co. Inc.;
Continued
page
from
•
to
be de¬
company
during
bonds
the
the
first
six
expects
months
of the
for
a
maintaining one's position in the
capital loss for tax purposes.
must
also
remind
you
of
< rJer>
(jointly); Carl M. Loeb; Rhoades & Co.; Kidder, Pea¬
body & Co.; The First Boston Corp. and Glore, Forgan
& Co. (jointly); Union Securities Corp.; Smith, Barney
& Co.; White, Weld & Co. and Merrill Lynch, Pierce,
Fenner
permanently lowered cost basis in the
possessing unrealized losses which
and
can
-
even
the
Dec.
on
Probable
Bros. &
•
nasty
case
holders
to
Southwestern
it
5
that
stock
common
stockholders
mon
subscription
nancing
repay
was
on
privilege).
back loans and for
Co. Inc.,
Expected in January, 1953.
more
the
York.
absence
can
little
of stock
matter
of
a
sale
and
from
of
a
a
Service
of companies
number
ders
&
bonds:
for
Halsey,
Corp.; Union
Stuart
Beane; Harris. Fhll & Co
on
liquidation—
they reduce the
some¬
shareholder's
ordinary income
tax
These
from
your
tax.
attractiveness of the net-after-tax
the price of another vehicle for use of
the capital,
related to the need for
money for consumption.
high-bracket holder of Sears Roebuck with a
as
A 10-year
50-point gain must
decide whether is present price of 62
represents
an
overvaluation
It
decisions
functions
of
pre-empts
based
associates
large portions of portfolios
criteria and
from
investment
the
,
of older shareholders
Bros.
&
Hutzler
and
offering today
(Dec. 18) $11,625,000 of New York
are
Central Railroad 3Vs% equipment
trust
certificates, maturing annu¬
ally Jan. 1, 1954 to 1968, inclusive.
The certificates are priced to yield
to
value
on
Lynch, Pierce, Fenner &
Certificates Offered
from
Ice
counselling generally. And it
tightly freezes large segments of the market, particularly at this
advanced stage of an extended secular rise (accentuated in the case
2.40%
to
3.30%,
according
maturity.
issue
The
new
will
standard
-
be
gauge
secured
by
railroad
equipment, including Diesel
switching locomotives, steel box
cars, steel flat cars, and a selfpropelled passenger-baggage-mail
car, estimated to cost $15,519,900.
Issuance of the certificates is sub¬
by the capital gains tax exemption bonus from
death). This is, of course, particularly true in the Blue Chip sector.
ject to authorization by the inter¬
And the tendency is for
state Commerce Commission.
increasing Blue Chip-itis disparity, "the
seems to be psychologically distasteful
switch from the glamorous issues with
perpetual upward motion
the stagnant cats-and-dogs, even apart from the tax
penalty on
higher they go," since it
selling the former.
gent investing policy.
coldblooded calculation of the
structure.
First
The
r)• Carl M. Loeb, Rhoades
Salomon
other
investment
normal
to
Accordingly, decisions whether to liquidate a
ai^ accfued profit can and should be arrived at by
market
Inc.;
a
year-end reflections on tax-motivated tax
strategy highlight the crucial impact of the capital gains tax on
the
to
Tax Strategy and
Investing Decisions
and
Co.
&
New York Central
or
simply overvalued at
one-eighth of
on
common
Co.; Salomon Bros. & Hutzler.
teria, it had better be sold without trying to outwit the calendar.
Even a cutting in half of the existing capital gains tax rate and
save you
of
Securities Corp.; Kidder. Peabody
Co.; Shields & Co.; Merrill
share of his tax bill
The Market
shares
of
if negotiated, may be handled by The First
Corp. and Robert W. Baird & Co. Probable bid¬
better value in another issue at 50,
is
include the
may
$7,000,000 and $8,000,000
$2,000,000 to $3,000,000 of preferred
indeterminate
An
y.
plans permanent
financing,
com¬
it
between
Over-zealous following of prevalent advice to postpone the
taking of profits until after the close of this year, in expectation of
ameliorating new legislation, may also lead to interference with
ceiling in 1953 could only
Corp.
stock may be offered late in 1953 or early in 1954. Stock
Underwriter
switch whether
of
be realized to offset current
Tax strategy should be
kept within the framework of intelli¬
and
bonds
stock.
Registration—
per
find
Public
announced that company
issuance
&
than the $12 V2
was
of
Boston
New
about
or
Wisconsin
Boston
an
offer about 264,-
stock ,to common stock¬
Langley & Co. and The First Boston Corp. (jointly);
Brothers and Goldman, Sachs & Co. (jointly);
and Harriman Ripley & Co., Inc..Registration—Expected
over¬
(with
construction.
new
common
C.
and preferred stock fi¬
privately. Proceeds—To
done
—Dillon, Read &
basis
First
(1/23)
financing prior to June 1, 1953, which
(about 293,500 shares) to
Bond
previously
or
on
Nov. 26 it
the
l-for-12
a
Co.
Co. and The
about Dec. 19.
company's financing
tentatively involves offering early in 1953 of
$12,000,000 bonds and $2,000,000 preferred stock in addi¬
tion to about $5,500,000 to be raised from the sale of
additional
com¬
Lehman
Public Service Co.
announced
was
If
Jan. 23 on a l-for-15 basis; rights
about Feb. 9. Underwriters—To be de¬
by competitive bidding. Probable bidders: W.
on
expire
include Halsey,
may
Electric
Penn
termined
-
Langley &
11 company announced it plans to
000 additional shares of
Bell
issued, probable bidders
are
the short-sale
Thus
or
preceding column).
a
may
(jointly); W. C.
Corp. (jointly).
West
Dec.
Stuart & Co. Inc. and Morgan Stanley & Co.
the loss-possessing
companies really offer merely
postponement and, in most cases, some tax saving!
versus
Co.
Boston
proposed issuance to its parent, American Telephone &
Telegraph Co., of $85,000,000 common stock.
If deben¬
tures
stock while registering
between the 26% capital gains tax
ceiling and his
bracket, if the latter is the higher.
y1
(see
Blyth & Co., Inc., Smith, Barney & Co. and White, Weld
Halsey, Stuart & Co. Inc.; Salomon
Hutzler; Kidder, Peabody & Co.
Telephone Co.
Nov. 28 company applied to the Missouri P. S. Commis¬
sion for authority to issue and sell $186,000,000 of additional securities as the need arises (in addition to the
only to the extent of the difference
proceeds
17
include: Halsey, Stuart & Co. Inc.;
Union Securities Corp. and Lehman Brothers (jointly);
bidders:
Southwestern
3
petitive, bidders
&
Dec. 5
tempting description "tax-sheltered" is
what misleading.
Actually, since
cost basis, they advantage him
Dec.
on
Washington Water Power Co.
Railway (1/22)
it was reported company expects to open bids Jan.
an issue of $3,600,000 equipment trust certificates.
earnings (as Transamerica, Electric Bond and
While such losses provide a pool for the payment
less
with the SEC
mortgage
Southern
of an equivalent amount of dividends that are free of tax
on the
recipient's ordinary income, they do not, as is frequently repre¬
sented, along with "equivalent" tables, provide a "tax-free" yield;
and
Beane
bonds
$14,000,000 and $18,000,000 of debentures.
accumulated
Share, etc.).
&
(jointly); Lehman Brothers. Offering
probably early in 1953.
Stock Registered—
The -600,000 shares of common stock were registered
—Of
intelligent investing decision. If a stock shows preponderant evi¬
dence of being overpriced net-after-tax on the basis of value cri¬
that
of
tween
That Nasty Reduction of Cost
We
shares
butuiauie: Securities
Probable bidders for bonds: Halsey, Stuart & Co
Inc.; Kuhn, Loeb & Co.; The First Boston Corp., Blytb
& Co. Inc. and Kidder, Peabody & Co.
(jointly). Any
stock financing may be via stockholders.
•
device of
same
600,000
bonds, to be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Corp. and Salomon Bros. & Hutz-
bidding.
price of 50, not the market's 62.
•
and
bonds
time.
in
case
mortgage
derwriters—For
it was reported company may issue and sell in
1953, $10,000,000 of first mortgage bonds and be¬
by
in the
first
June,
i.e., whether he
basis likewise obtains
reported company plans issue and sale of
was
stock. Proceeds—For construction program. Un¬
common
to
of
3 it
$7,500,000
Co.
that
Toledo Edison Co.
Oct.
by the sale of additional first mortgage bonds or othei
as may be appropriate at the
5
Observations.
reported that this company, Texas Power
was
Light Co., Dallas Power & Light Co. and Texas Elec¬
tric Service Co. plan new financing totaling about $53,006,600.'*to finance, in part, a $69,500,000 construction
program.
program
Nov.
Utilities Co.
Texas
indenture, and to provide for other permanent financing
Dec.
on
'
White, Weld & Co. (jointly).
company to construct. pipeline
cost
$32,518,500.
On Sept. 15
announced
additional
Meeting—Stockholders
Jan. 13 will vote
Underwriters—May be deter¬
competitive bidding. Probable bidders: Halsey,
Webster Securities Corp. and
mined by
Beane, both -of New
1953 in the amount then permissible under its
★ People's National Bank & Trust Co.,
White Plains, N. Y.
(1/13)
Dec. 11 it was announced company plans to offer for
subscription by stockholders 4,000 additional shares of
capital stock (par $25) on a one-for-six basis. Price—$50
per share.
Proceeds —To increase capital and surplus.
on
Co.
was
mortgage pipe line bonds.
time in January. Registration—Expected
Underwriters—Smith, Barney & Go. and
Lynch,
debt
construction programs.
Underwriters—To be determined by
Probable
other
or
3 it
reported company plans to issue and sell
early in 1953 between $25,000,000 and $30,000,000 of first
Registration—Expected Dec. 19.
Southern
Nov.
22
Peoples Gas Light & Coke Co.
was
Gas Transmission
Tennessee
Dec.
—
Oct. 24 it
by
surplus.
securities in such amounts
Sulphur Co., Dallas, Tex.
23, J. R. Patten, President, said that it is planned
float
to
and
★ Sylvania Electric Products Co.
8, it was reported company may do some financing
1953 (probably bonds and common stock).
Under¬
writer
Paine, Webber, Jackson & Curtis, of Boston,
a
some
Dec.
mission line extending from
t
capital
in
later date. Proceeds—To retire $40,000,000
loans and for expansion program.' Offering-
bank
of
Pipeline Corp.
increase
Dec.
stockholders at rate of $100 of deben¬
comon
termined at
Pacific Northwest
To
—
Underwriter—Salomon Bros. & Hutzler, New York.
first to be offered for sub¬
are
Lehman
& Co. and Harriman Ripley & Co., Inc.
shares held. Price—To be determined
Proceeds
&
Sinclair Oil Corp.
Oct. 28 it was announced
tures for each 12 shares of stock held. Price—To
by competitive bidding. Probable bidders:
Brothers; The First Boston Corp.; Smith, Bar¬
directors.
petitive bidding. Probable bidders: (1) For bonds—Hal¬
sey, Stuart & Co. Inc.; First Boston Corp. and Salomon
Bros. & Hutzler (jointly); Stone & Webster Securities
Corp.; Lehman Brothers, Bear, Stearns & Co. and A. C.
Allyn & Co., Inc. (jointly); Merrill Lynch, Pierce, Fen¬
ner & Beane; Estabrook & Co.
(2) For preferred—Stone
& Webster Securities Corp.; Lehman Brothers; W. C.
Langley & Co.; Estabrook & Co. and Kidder, Peabody &
Co. (jointly). Common stock will probably be offered
for subscription by stockholders.
determined
ney
for each three
L. Lovett, President, announced company ex¬
the next two years
through sale of bonds, and preferred and common stock,
viz: $5,500,000 of first mortgage bonds and $5,500,000
prefererd stock in 1953 and $6,000,000 bonds, $6,000,000
preferred stock, and $1,000,000 common stock in 1954.
Proceeds—For expansion program. Underwriters — For
bonds and preferred stock may be determined by com¬
pects to raise about $24,000,000 in
and 100,000 shares of
$22,000,000 of first mortgage bonds
preferred stock (par $100). Proceeds — To repay bank
loans and for new construction.
Underwriters — To be
determined
Dec.
Nov. 12, F.
reported company plans to issue and sell
Oci. 28 it was
r
Thursday, December 18,1952
...
★ State Bank of Albany, N. Y. (1/27)
15, Frederick McDonald, President, announced that
company plans to olfer (following approval on Jan. 27
of increase in capitalization)
101,725 additional shares
of capital stock (par $10) on the basis of one new share
Kidder, Peabody & Co.; White, Weld & Co.
For. stock,
Kidder, Peabody & Co. and Blyth & Co., Inc. (jointly);
Harriman Ripley & Co. Inc.
Rockland Light & Power Co.
(1/20/53)
Ohio Power Co.
(jointly);
Financial Chronicle
The tax law
companies must
regarding capital gains taken by the investment
act
on
ing
\
participating in the offer¬
are:
curities
Co., Inc.'
Drexel & Co.; Union Se¬
Corp.,
and
Stroud
'
,
_
&
' V
as
case
Will the Ponzi scheme-like chain
continue
Also
-
an additional freezer-in of profits, par¬
of the closed-end companies whose cashing
of paper profits and their legislatively forced disbursement re¬
sults in long-term unwinding of their capital funds.
ticularly in the
.
permanently?
the next Congresses.
buying of the stylish issues
At least partly does
r
'
the
-
answer
v.
With Waddell fz Reed
(Special to The Financial
CHICAGO,
111.
—
ontouS)
William
G.
depend
Schumann is connected with'Wad¬
'
dell &
•
Reed, Inc.
*N
Volume
Number 5178
176
Continued
from
.
.
The Commercial arid Financial
.
Chronicle
8
page
(2431)
offered for subscription during the
The
second week of January.
Dealer-Broker Investment
Jan. If.
on
West
247 Park
Pabco
Illustrated brochure
—
—
Steve
Hannagan,
105
East Pikes Peak Avenue,
Package
Machinery Co.—Analysis—May
&
Gannon,
Inc.,
161
Devonshire Street, Boston 10, Mass.
Riverside
Cement
Co.
Good-name
equities evidently
are still
enjoying a bang-up mar¬
ket judging from the manner in
which a couple of large secondary
offerings were snapped up this
Mass.
and
Eastern
Brochure
—
describing
head¬
Spokane
week.
quarters of the Seattle-First National—Seattle First National
Bank, Second Avenue & Columbia Street, Seattle 4, Wash.
A
Wisconsin Public Service Corp. — Memorandum — Robert W.
Baird & Co., 110 East Wisconsin Avenue, Milwaukee 1, Wis.
tions
of Carrol
dent
of
of
M.
Shanks, Presi¬
Prudential
Insurance
Co.
America, in addressing the IBA
[Full text
speech on page 20.—Ed.]
He
estimated
all
of
around
normal
order
of
business
than
better
bonds, and
those
utility
other
held
than
a
year
obtained via that route.
to
lend
emphasis
trend, which has been
in
this
to
relegated to secondary posi¬
marked
tion
in
underwriting and in¬
vestment world this week.
True,
a
smattering of small issues
shows
reached
went
market, mostly railroad
equipment notes, with the big sec¬
ondary in Atlantic Refining serv¬
ing to build
But
,
the
bulk
those
of
looking forward to the
and
customary festivities of the
-
Generally
rapidly
been
good
a
have
after
the
for
offering
public
the
taking
if
to
insurance
institutional
other
their needs.
form
Equities To
Fore
financing
through the sale of equities. But
these operations will involve of¬
fering first on "rights" to stock¬
holders.
-
i
SEC
to
shares of additional
issue
617>669
to be
common
of
DIVIDEND
all
But
within
announced
NOTICES
Morte,
in
Glazier Director
William S. Glazier, a partner of
Lehman Brothers, was elected z.
Maloney
a
Maloney
director
partner of
&
Co.,
New
City, passed away Dec. 16 at
the age of 43.
The
and
of
Franklin
at
$12.75
Stores
share,
a
Corp.
of
common
held Dec.
also
as
meeting with brisk demand.
17, 1952.
The
(50$)
Capital
Corporation.
C
DIVIDEND
NOTICES
Machinery CorporatlM
The
Directors of this Corporation have de¬
a
dividend of 37J/2 cents per share rvA
Preferred capital stock. ■ They have also de¬
clared a dividend of 62% cents
per share on
the Common capital stock.
The dividends on
clared
share
a
Stock
of
fifty
the
on
the
both
Preferred
February
2,
and
Common
stock
payabl
are
1953, to stockholders of record
business January 2, 1953.
the close of
Com¬
WALLACE
M.
KEMP,
things
considered
stockholders of
to
at
the
close
rec¬
of business
19, 1952.
United States
CLARK, Treasurer
Plywood
Corporation
December 11, 1952
■
For
York, December 10, 1952.
A dividend of Fifty Cents
($.50) per share on
the
capital stock of this Company has been
declared payable January
15, 1953, at the Ofiice of
the Treasurer, 46G Lexington Avenue,
New York 17, N. Y., to stockholders of record
at the close of business December
19, 1952.
*
E.
PANCOST,
the
cash
been
PACIFIC GAS AND ELECTRIC CO.
quarter
dividend
standing
New
declared
stockholders
December
ended
of
common
35c
NOTICE
New
the
1952,
31,
on
the
York, N.
12,
close
OTTINGEE,
1953,
of busines:.
Secretary.
1952.
Y., December 3,
The
NATIONAL
14
SHARES
Wall
'
CORPORATION
Street,
New
A
special dividend of two dollars and thirteen
($2.13) per share has been declared this
on
the Corporation's capital stock payable
December
26,
1952
to
stockholders
of record
cents
at
the
close
of
business
December
1952.
18,
is
expected that approximately one dollar
fifty-nine and
two-tenths
cents
($1,592)
share cf
It
and
per
this special
dividend will be designated
gain dividend," pursuant to the
provisiono or tne jn„eui.u xw.vv.iu.,
xni
Directors have also declared a dividend
of fifteen cents (15c) per share payable January
as
a
10,
the
York
Board
of
Directors
1952, declared
fourth quarter
a
share
common
capital stock.
will be paid by check
cents
1953,
at
the
22,
per
to common
close
on
December
ol
This
on
dividend
on
December
be closed.
1953
to
stockholders
December
of
31,
11,
record
at
1952.
Sl'OUr,
S.
the
San
of
Is
the rate
Christensen, Treasurer
Francisco, California
hereby
of
Stationery
the
given that a dividend
share on the issued
without par value
$0.60
outstanding
Common
Stationery
"capital
business
Notice
at
and
not
&
Corporation
stockholders of record
business
Tablet
WESTAB
January 15,
1952. The Transfer Books will
K. C.
Western
cash dividend for
of the year of 50
upon
the Company's
per
shares
Stock
of
Western
Tablet &
has
been declared
1953, to holders of
record of such shares at the close of busi¬
ness
on
December 29,
1952.
payable
on
Corporation
January 15,
E.
close
H.
BACH,
Treasurer.
Secretary.
1952.
The Garlock
"approaches.
year
Perhaps
Electric Storage
December
company
they
.
will treat them
For
less kindly.
no
large
firm,
been active
has
ways
had
one
which
and
twenties, the current period is
to
ported
have
And
breaker.
which
*'
ranks
been
well
-
the line
cents
close
on
basis of capital, improved
results over last year.
fifty
($.50)
of business
its
up
,
the
A Thus, it
share
on
a
of
the
on
December
15,
-
at
large
have
not
been
STOCK
17, 1952.
H. B. Pierce,
DIVIDEND
H.C.ALLAN,
Secretary and Treasurer
Philadelphia, December 5, 2952.
•••••••••••
•
PACIFIC
bad.
CORRECTED DIVIDEND NOTICES
rash of direct placements * '!%
through in the past week!
point to the recent observa-
The
going
gave
DIVIDEND
OLIVER
WANTED
TRADER
experienced
municipals.
Chronicle,
the
over
references.
Highest
25
in
including knowledge
Commercial
1218,*
Park
&
Place,
of Directors
has declared
quarterly dividend of 30 cents
on
Thoroughly
On Dec. 10,
2,
New
York
Stock
of
The
Love
in
County National
the
affairs.
State
therefore
claims
for
Marietta,
of
Bank
Oklahoma
All creditors of the
of
Jan. 15, 1953,
to
hereby
payment
Oklahoma.
to
notified
the
at
is
Mari¬
share
record
Date
1953, to shareholders of record
Pay¬
to
present
C.
at
McMAKIN,
Liquidating Agent.
1,
$1.25
of
business
on
January
15, 1953.
Preferred Stock,
Preferred Stock Dividend:
The
regular
$1.12%
per
quarterly dividend
share
on
$100 par value
of
the 4%% Cumula¬
5% Series
5% Sinking
Fund Series
COMMON STOCK ($5.00
2-2-53
The Beverly
Fund Series
2-2-53
$0.31V4
$1.25 Series
2-2-53
$0,311/4
Board
J
■—;—
OLIVER
CORPORATION
Chicago, Illinois
b.
c. Reynolds,
Secretary
Par)
regular quarterly dividend
of $0.75 per
Corporation Dividends Are Good Providers
$25 par value
President
THE
A
$1.25
Preferred Stock,
A. KING McCORD
,
G.
close
Per
Share
2-2-53
February
payable
1953 to holders of record at the
Rate
able
December 5, 1952.
closing
undersigned,
V
clared
follows:
as
ALVA W.PHELPS
Association
quarterly dividends
share on the 4%
Series and $0,975 per share on
the 3.90% Series have been de¬
of $1.00 per
this
payable
CUMULATIVE PREFERRED STOCK
The regular
lar quarterly dividends on
Chairman of the
etta
Our Institutional SHARE OWNERS
regu¬
$1.25 Sinking
NOTICE
Philip Morris & Co. Ltd., Inc.
the Board
stockholders
declared payable January 31, 1953, to
shareholders of record January 15, 1953.
LIQUIDATION
:
a
tive Convertible Preferred Stock has been
New York.
1952.
the Common Stock, payable January
Box
Financial
per
NOTICE
of Directors declared
corporation,
Common Stock Dividend:
The Board
counter securities
FINANCE CORPORATION
Preferred
SITUATION
M
Secretary
too
Direct Placements
COMMON
the close of business December
feel could be corrected, conditions
and
105th
per
record
the
at
per
'1952. Checks will be mailed.
,
that in spite of
which the bankers
appears
things
some'
per
1952, to stockholders of record
firm
large
vear-end dividend for the year 1952
Ctjmmon Stock, payable December 22,
record-
a
another
re¬
nnup MORRIS
a
share and an extra dividend of
share were declared on the
common stock of the Company, payable
December 29, 1952, to stockholders of
25$
25$
,The Directors have declared from the
Accumulated Surplus of the Company
-
306
meeting of the Board of Directors,
held this day, a quarterly dividend of
Quarterly Dividend
al¬
which
tremendous years in the
some
At
FOR
10, 1952.
COMMON DIVIDEND No.
209th Consecutive
CA1L
Company
Packing
Battery
Hospital, Beverly, Massachusetts, like
other institutions, supplements its operating
by investment in free enterprise.
It has shared in Philip Morris
ownership for years...
Corporate dividends provide a source of income en¬
abling the hospital to maintain a recognized and
approved laboratory for the training of Residents and'
Student Laboratory Technicians.
Here,a laboratory technician prepares a specimen
many
revenue
test for sugar.
clared
1953
to
share has been de¬
payable January 15,
holders of record
close of business
30,-1952.
-
on
at
the
December
— -
L. G. HANSON, Treasurer
December 17, 1952
New Yoik, N. Y.
t
out
corporation ha-
January
at
record
this
1952.
SIMON
DIVIDEND
Treasurer.
share
of
payable
of
31,
October
per
stock
Common Stock Dividend No. 148
the
The
at
Treasurer
payable December 30,
pany,
ord
of Directors has
dividend of
a
The New York Central Railroad Co.
December
private
Board
declared
December
NOTICES
Mr. Glazier is
the
L. G.
DIVIDEND
oi
the
at
director of American Potash
a
United Shoe
TECHNICOLOR, Inc.
1952,
reported
was
Corporation
meeting of the Board of Director,
NOTICES
was
matter
a
Vice-President
Lehman
& Chemical
DIVIDEND
cents
JOSEPH
would like to be assured that 1953
are
on
Again, offering of 95,225 shares
15.
rather
firms find little to complain
about as the. turn into the new
its
Coyne
Coyne Maloney,
York
leases
opened
minutes.
of,
ing
7,
in
County, Tex.
to
market
Tuesday and oversubscription
rank and file of investment bank¬
.
E.
E.
con¬
day
Consumers Power Co. has regis¬
with
Live Oak
direct placement.
and
by
a
substantial
toward
tered
the
a
share
a
Books
of
E,
through
of
close
couple of public utility com¬
panies have initiated steps looking
could
more
gone
channels
the
has
under¬
it
True
had
was
with
cents
members.
field
corporate
eight companies
either
or
for
90
A
now
close,
a
lot better
a
it
months
to
one
business
than
12
business.
been
the
the
drawing
writing
season:
speaking,
that
agreed
companies
lenders
the
some
direct
who
such
public
offerings were coasting to a halt
and turning their attention largely
to balancing out the books for the
year
in
that
Here
interests
owns
years,
the total.
up
by-and-large
handle
operations
of
NASD
run-down,of this week's financing
the
stock.
common
especially
a quick
was
recent
point is Atlantic Re¬
the market at $32
cession
issues, which
firms
insurance
Just
The
of
and
ago, were
that
corporate
90%
railroad
life
Oil
block of 320,000 shares was placed
Convention in Florida.
60%
an
common
Texo
La
in
case
fining Co.
on
of
offering
of
also
Closing With A Rush
Scrvel, Inc.—Analysis—Eastman, Dillon & Co., 15 Broad Street,
New York 5, N. Y.
Spokane
Common
City are
Hunter Securities Corp. of New
issue of 934,400 shares
York recently offered publicly an
County, Tex.;
Analysis and review of the Cement
Co., 10 Post Office Square, Boston 0,
—
Industry—Lerner &
Drilling
Stock Sold.
stock (par 1 cent) of
issue of 299,500 shares of common
Corp. at 31 % cents per
stock
(par 10 cents) of Denman
holders, and has filed the neces¬ share "as a speculation."
Oil & Drilling Corp. at $1 per
sary registration.
Meanwhile its
The net proceeds are to be used
share.
All -of these shares have
subsidiary, Monongahela ] Power, to
complete test wells and for been sold.
will sell 709,000 additional com¬
working capital.
The net proceeds are to be used
mon snares to the parent firm for
Incorporated in Oklahoma on to pay for
$5,000,000. It is expected the West
drilling expenses in¬
Penn
12,
1952, the
offering
will
be
under¬ Aug.
corporation curred in the drilling of oil and
written.
gas wells.
owns leases in Duval
Avenue, New York 17, N. Y.
Products, Inc.—Analysis—Boettcher and Company,
Colorado Springs. Colo.
Penman Oil &
Petroleum Finance Corp. of Ok¬
lahoma
City, Okla., and Wistar
Ambler Co. of New York
Electric Co.,
Penn
is pro¬
jecting the sale of 264,000 addi¬
tional common shares to present
Recommendations & Liter
Olin Industries, Inc.
to
proposes
Texo Oil Stk.
com¬
have
under¬
writers bid for the "standby" job
pany
107
IN
The Commercial and Financial
(2432)
Chronicle.Thursday,Decmber 18,195&
much
BUSINESS BUZZ
Washington...
A
Behind-the-Scene Interpretations
from the Nation's
than
more
the
avoidance
challenge to the FR tight
money
policy. Mr. Burgess,
among
other things, oversees
the editing of the National City
Bank
"Monthly Letter." This
"Letter," in December, pointed
-
V/\||
ilKU
Capital
of
a
out
JL U
that
debt,
be in
of the out¬
60%
some
standing
will
31,
Dec.
of
as
the form of demand
obligations
securities matur-
or
in 1953.
WASHINGTON, D. C.—House
Interstate Commerce Committee
is
a
to undertake in 1953
re-do of its "walking tour of
going
inspection" of the SEC, Federal
Trade
Commission, Food and
candidate
for that post, Senator Lyndon
B. Johnson (D., Tex.), Chairman
successful
probable
a
the
war
under its legislative
jurisdiction — but with a dif¬
ference.
paign
in
he
Congressional
his
back
(D., O.) Chairman, the Commit¬
undertook to inquire into
by the remarkable showing Gen¬
eral Eisenhower made, particu¬
may
the activities
larly in the South, and by the
"Chronicle's"
tee
which
for
view
to
they
of
it
these
agencies
legislates with
a
ascertaining
(a) how
operating under their
were
basic statutes and (b) what new
legislation
they
claimed
they
showing
poor
made by
Under
Republican control,
Charles
Rep.
Wolver-
A.
Furthermore,
the
the
of
some
peat the
next
re¬
of hearings and
process
studies for the
year
two osten¬
same
objectives.
There
will
be
major difference in emphasis,
a
it is reported.
however,
Wolverton
Mr.
will spend
the
deal
great
a
Under
Committee
of at¬
When
the
Ways
commissions
bu¬
and
constantly extend,
by
their interpretations of law, the
in February, along
with the rest
probably will
it
Congress,
of
extension
In
Committee
will search into efforts to make
work
commissions
the
for
not
only by attempts to broaden the
terms of
their basic statutes,
but by any
the
legislation, it
tentatively.
frontiers of legal regulation.
It is said that the
is
Rep. Heller's proposal that the
.special inquiry into SEC be car¬
dollar
year's inquiry, by
committee
a
special sub¬
which
of
he
was
Chairman, concluded its several
months of studies
with
several
and
hearings
criticism,
severe
a
to
as
of SEC "laxity."
cases,
Mr. Heller recommended that
Ihe inquiry be continued. Inas¬
much
the
as
Republicans
will
organize the House, Mr. Heller
could not continue
of
the
SEC
as
States
cost
It
Internal
and
Revenue
pointment
ment
disposed of
as soon as pos¬
sible.
Mr. Taft has
for
taking up
Reciprocal Trade first, however,
will probably be that members
the
reason
Ways and Means
mittee want to wait
dolph Burgess, Chairman of the
tame
affair, as the control of
investigating committee
Executive Committee of the Na¬
the
to Republicans.
passes
There will be
investigation,
Republicans promise.
however,
For
be
thing,
one
Means
made
an
the
Ways
subcommittee
very
little
and
actually
tional
Secretary
in
party
the
others acted
as
fore
his
was
Senator
death
Senate,
whilst
floor leader. Be¬
the
floor
leader
Kenneth
Wherry.
death, it was
Senator Styles Bridges of New
Hampshire.
After
Wherry's
Senator Joseph C.
O'Mahoney
of Wyoming, the Senate Demo¬
crat's Policy
Committee Chair¬
man, was defeated
tion.
they
Southern
are
for re-elec¬
Democrats
say
backing Dick Russell,
unsuccessful
Democratic
a s
p
i
r a n t for the
Presidential
nomi¬
nation, for O'Mahoney's place as
Chairman of the Policy Com¬
mittee.
This would leave the
spot of
minority
floor
leader
to
the
francs).
in
If
and
York
New
Bank,
the
of
is
there
j
Treasury,
How American Business Is Don *
in the London
fore
Com¬
committing themselves to
In
GOP
general,
Congress
haven't
when
leaders
in
thought
a
of
Excess
expires
unless there is
ous
Profits
June
30,
more
some
emergency
than
seri¬
now
fore¬
However, members think
seen.
that it is not feasible politically
to allow EPT to expire without
individuals
The
checking
up
another
want
to
the
on
thing, Republicans
Buyers Association—Agency Man¬
agers Limited, 102 Maiden Lane,
New York 5, N. Y.—paper.
give the closest study
form
at
of
the
its op¬
time.
same
this
relief, which
most hope
see
enacted, is to
31,
to
1953, the expiration of the
"second
or
11%
anything peculiar
in
two
forms of tax
however, would cost
lions
in
revenues
a
relief,
few bil¬
over
a
full
Prevailing opinion
lights—Quarterly
for
tuted
eminent skill in this field.
for
reorganization of the
Bureau of Internal Revenue
Despite the desire of the sub¬
headlines
scandal
in
its
and
continued
was
indicated. There
tw
malodorous
o
tax
some
dramatics, it
some
are
at least
which the
cases
be
one
allowed
not to make
accelerated)
to
an
die,
Humphrey to have Burgess
ington
It
think,
indicates,
that
review featur¬
industrialization of Latin
policy which the
of
the
Federal
new
credit
Chairman
Reserve
Board,
subcommittee has not yet been
William McChesney Martin, has
able
carried forward with such vigor,
to
dig
into,
and
which
must be investigated.
After these
out
will
couple of
cases are
of the
way, however, then
the subcommittee hopes to settle
down to a quiet inquiry into
the
Alcohol
theory and
probably
turbed.
rated
Tax
Unit
operation
and
of
not
closely
the
men
on
as
good
who
think
monetary
Furthermore, it is a prelimi¬
indication of the possibility
nary
Tax
Subcommittee
is
General
tinue
to
will
deal
Eisenhower
probably
with
Mr.
as
con¬
Martin
success
ations committees
having in
recapturing outstanding military
are
other
authorizations, so as,
to guarantee that the projected'
for
fiscal
1954 shall fall
substantially be¬
low $80 billion—the figure they
could easily reach without the
most determined economy
Chase
National
York, Pine
Street
of
15,
New Housing
in Metropolitan!!
Areas, 1949-51—Bulletin No. 1115,
United
States
Department
of
Labor, Bureau of Labor Statistics
—Superintendent of Documents,
U. S. Government Printing
Office,
Washington 25, D. C.—paper—35c*
Productivity
Progress
and
Economic
Frederick C. Mills
—
—•
National Bureau of Economic Re¬
search, 1819 Broadway, New York
23, N. Y.—paper—75c. * *
\ V
Some
tive
Observations
—-Harvard
Business
diers Field,
cloth—$3.75.
Execu¬
on
Retirement—Harold
R.
Hall
School; Sol¬
Boston
63,*
Mass.—•
s
The
Burgess
however,
is
said
appointment,
to
signifiy
the
Woodrow Wilson
Foundation
—Public Affairs
22
Committee, Inc.,
East 38th Street, New York
16,
N.
Y.—paper—25c.
TRADING MARKETS
Gear
tfisi
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SECURITIES
George E. Keith Pfd«.
Middlesex County Nat. 3k*
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H.ARL MARKS & HO. INC.
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Deerfield Glassine
Plymouth Rubber
FOREIGN SECURITIES SPECIALISTS
LERNER & CO.
50 BROAD STREET...NEW YORK 4, N. Y.
Investment
TH. HANOVER 2-0050... THETYPE: NY 1-971
10 Post Office
Wt
a
i
Strengthening Our Foreign Pol¬
icy—Report by a study group of
Reserve Board Chairman.
the appropri¬
expenditures
The
Nassau, New York
N. Y.—paper.
are
the
reor¬
as
Investigating
undis¬
matters.
President
of
as
alike
that
Chairman
left
merely
fritnds, but
ganization in the Bureau of In¬
New
be
Burgess and Martin
of
corner
observers
flexible
the
it is better
By April the taxing commit¬
actual
outstanding event.
as an
rather
irrevocable de¬
tees of Congress will have some
and
as¬
sist him is viewed by all Wash¬
should
cision until April or later.
idea what
market
Negatively the decision of Mr.
committee to avoid scandal and
investigation, there will be
the New York Fed's
man, brings a pre¬
years
open
ing
of tax
leaders in Congress is that while
these two taxes (with expira¬
tion of
a
the government
bond market. "Randy" Burgess,
eration, which retiring Treasury
Secretary John Snyder insti¬
Rep. Robert W. Kean (R., N. J.).
fiscal year.
necessity of having
about
savvy
ternal Revenue.
bite"
personal income tax boosts.
The
the
-
Latin-American Business High¬
specialized about the job of
is
Market—Reprint of
address by Ben D. Cooke before
the Southern California Insurance
George M. Humphrey.
Treasury
progress
City
City, to become special Deputy
Secretary of the Treasury on
debt management for the new
while be¬
a
tax reduction.
been Chairman of the Republi¬
Policy Committee, and ac¬
knowledged No. 1 man in his
such
aroused
that of W. Ran¬
as
a
will
both to the scheme and
The basic
1951
years,
seldom
has
keen interest
administration
New
Robert A. Taft.
can
"secondary" ap¬
major depart¬
tax
push up to June 30, from Dec.
some
a
—
tively that Senator Richard B.
Russell of Georgia shall, as it
were, go to bat opposite Senator
For
to
America
up
affording income tax refief for
'
the future
investigation of the Bu¬
of
reau
An ostensibly
most part
Bank
it
Democrats have decided tenta¬
of the
it
Tax
Russell to Bat Opposite Taft
European
by
well be taken
as
its mind
scrutiny than
it proposes to give the several
other regulatory agencies under
Its jurisdiction.
Will Be Tame
—
complete
See FR Credit Policy Secure
being Secretary of the Treasury,
might
tee will later make up
single out the SEC
Study Future
15.00 Swiss francs
(tha
compilation of Foreign
Exchange Regulations in Great
Britain—original publication with
six supplements — is 70.00 Swisj
paper
Tax
Regulations
Settlements, Basle, Switzerland—*
For
of
•
National
—
Exchange
Department's Alcohol Tax Unit.
and
-
Great Britain, 6th
and it
the
intensive
Colm
quality. This bill can
easily provoke a spirited debate
continuing
more
United
and
commit¬
whether to
MacGinnis — just the children
just the children I"
no,
—
a
up
deficits
Is said that the whole
for
is
the
of
make
to
it
that
importing
merchandise regardless of
more
Chairman
subcommittee.
Administration
view
the
responsibility
Mr. Heller, in the report on the
the Trade
place
Eisenhower
adopts
"No,
For the
first
the
planned
now
unless con¬
tinued by Congress. There will
be controversy about the form
of the extension, particularly if
the
views.)
own
Supplement
—Monetary and Economic Depart¬
ment,
Bank
for
International
the
bill expires June 12,
other form of "make
work" boondoggling.
ried further, has not yet been
given tentative consideration.
Foreign
in
gets
Reciprocal Trade Agreements
Act as its first major piece of
to
reflect
to
scene"
interpreta¬
from the nation's Capital and
or may not coincide with th<§
Gerhard
—
and Means
organized and
ready for serious business early
Committee
the
istrative
the
Planning Association, Washington,
D. C.—paper.
consider
reaus
as
Bookshelf
Congressional conservatives
tention looking into attempts of
quasi-judicial, quasi-admin¬
get
American Economy in 1960, Th<»
To Put Trade Bill First
of
will
good
Business Man's
conservatives
of both parties.
sible
"behind
tion
is, just incidentally, an op¬
portunity for the White House
if it sees the need for courting
ton (R., N. J.) as Chairman, the
V>;
the
backing Russell for the job.
Committee
will
he
as
Gov. Adlai Stevenson.
stoutest-hearted
are
that
election
the
in
the investor
assure
(This column is intended
been impressed
have
to
This
needed.
with
is said
economic
gave."
voting record would indicate. He
Robert
Hep.
at
and
way
aid
money
control,
Crosser
Democratic
Under
with
a
will
issues
new
paid
since the late Presidential cam¬
than
in
that
stability and
conservative
considerably more
this
"reconstructing the
debt
pace
program.
Russell is said to have become
Drug Administration, and other
agencies
public
continuing investigation of
the
outlined
newsletter
the need for
handling
Subcommittee
the
of
This
situation in detail and suggested
Securities
Square, Boston 9, Mass.
Telephone
HUbbard 2-1990
Teletype
BS 69
@FedFRASER