Full text of Commercial and Financial Chronicle : December 30, 1954, Vol. 180, No. 5390

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-3-0

Reg. U. S

Volume 180

Number 5390

.

New York 7, N.

Pat. Office

Price

Y., Thursday, December 30, 1954

Cents

40

a

Copy

EDITORIAL

$eef ; it

Business Recovery in 1955

i

Qctmn nf
intpr.
L Apparently, the whole question of frppr inter¬
freer

national trade
for

further

a

versus

protectionism is to

airing early next

'v-1

come up

>

The Presi- this area ^
extended *

year.

dent's efforts to get decisive action in
last year failed but it
gave rise to an
discussion of the subject,
including the

subject of a V
good deal of argument but which seems to date
to have had little other effect.
Generally speak¬
ing, it was, of course, the so-called "Old Guard''
Republican elements in the President's party v
and

always have been protectionists)
which are primarily responsible for the stalemate
although it is well known that the Democratic
party is no longer a real advocate of free trade.
are

'

*>"-

increase

so-called'

Randall report which has been the

<which

•

in

trend of defense

cited

/

as

A moderate

is

1955

out

held

'

^

^

«

continued

on page

of

consensus

whose views

Mr. Kemper, in commenting on

'

is that

election year

are

make every

The

■

of 1956; it is likely the government will ,
effort to bolster the economy and relieve j

the

Economic

were

Forum,

released Dec. 21,

in

1955

year.

-

businessmen

■

Economic

Forum

horizons

What

in

Sinclair, in commenting

business

outlook,

on

was

and

that

.

in

the

couraging signs appearing everyday
to

one

C. Kemper

R.
..

■

Corporation;

John

last

•

28

Continued

v

.

on

page

fa¬

siness stabil¬

C.

"

1

1

1

1

person

12

every

inventions;

the

seconds);
of

emergence

increasing research in
(industry has spent $10 billion the

for this important business stimulus); and
i

■

Dunlop, Professor of Economics, Harvard University;

stable
are

new oroducts;

10 years

T.

new

new

[

-

,'all lines of business

Alexander, Professor of Markets

Management

Radio

a

ity are improved standards of living;
rapidly increasing population (J. S.
population is growing at the rate of

ing, Columbia University; Richard P. Doherty, President,
-

in

a

participating in the Forum's Business Outlook

session included: R. S.

confidence

The forces which

vorable to long-te.m b

arising from unforeseen national or international devel¬
-

maintain

economy.

today to the economist in making his forecasts. How¬
ever, he joined with the members of the Forum group
in stressing the unavoidable limitations of forecasting

.

coming in from

in personal income or inaustrial out¬

improvement in the tools which are available

opments.

are

put in 1955, but there are many en¬

He pointed out the

ingly accurate.

more

television, electrical appliances; and
the textile industry, which has been
lagging, is starting to improve. Prob¬
ably not many expect any great rise

results have been gratify-

main the
John b. Sinclair

are

steels, motors, petro-chemicals, glass,

the sesthe ninth
year that The Conference Board has
sponsored Forum discussions on the

"sion,(-'stated that this

T

number of
optimistic
output' and

growing
excellent

of

increasing sales

prospects was under the chair¬
manship of John S. Sinclair, Presi¬
dent, The Conference Board.
Mr.

'

A

ahead?

Forecasts

viewing

••

stable economy.

industrial leaders

and

outlook.

their

a

lie

1955

Television

i

means relatively easy credit and
governmental spending. Looks for a huge program
of public works, accompanied by high taxes. Warns all
business, including banking, is plagued by the specter of
rising costs and increasing competition. Concludes there
will be no boom in 1955, but there will be confidence

of

best

ond

Guests

pre-

freer

may not be the highest
economic activity but it
could well replace 1954 as our sec-

notable

favorable business

dictions, points out between now and the Presidential 1;

1

subject is up for further debate,
hope that those who must decide the issue
(or more accurately the issues) involved will
bring to their deliberations a full realization that
this problem is by no means the simple one that
it is sometimes said to be. It is one thing to ad-v
vocate, indeed • to insist upon, relatively free
trade internationally along with a free economy;
at home; it is quite another to suppose that any¬
thing approaching free trade Internationally is
compatible with a closely i managed economy
within each of the major countries of the world.
It was Lord Keynes (then Mr^ Keynes) who was
probably the most influential advocate of what
is now known as governmentally managed econo¬
mies. He could in a very real sense be termed
the father
of our so-called full employment

)

!

Kansas City, Missouri

v

,

unemployment, and this

us

I

;

>

a

year

•legislation, v/r7;
"v ■" v
>,'■]/', ;■
But Mr. Keynes and most of his followers well
understood that such an economy "in one

■*

majority of distinguished econ¬
in the latest "Evening with the
under the auspices of the National
Industrial Conference Board.
The

/

j

By R. CROSBY KEMPER*

but sustained business recovery through¬

"

.

Looks Ahead

•

President, City National Bank & Trust Company,

Longer-term

expected.

spending and agricultural income

seen

Economists"

<

/

weak sectors of the economy.'

by
participating

omists

V.

construction

new/

Now that this

-let

w

Holding that cycle's turning point has been reached,
Conference: Board■; panel forecasts sustained rises in
industrial production and Gross National Product, accorapanied by continued price stability. $2 to $3 billion

-

-

Continued

-

^

'

on

page

39

„'

sf

*An address

by Mr. Kemper before the Seventh National Credit
Conference sponsored by the American Bankers Association. Chicago,
HI., Dec. 17, 1954.
....

24

—'Underwriters, dealers and investors in cor¬
complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 33.

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The Commercial and Financial Chronicle

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We Maintain

a

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s

The

Market in

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A continuous forum in which, each

American Marietta
Central Indiana Gas

participate and give their
they to be regarded,

are

Walt Disney

Holly Corporation

Colorado

Long-Bell Lumber of Mo.

There
what

Portsmouth Steel
Texas Natural Gasoline

three

are

companies in
truly
called
the

be

can

stocks

public.

They

En¬

Wires

petus of

what

amounts
to

to

stocks

Hartford, Houston, Philadelphia,
Portland, Me., Providence, SanFranciscc

companies
appreGeorge C. Astarita

would

stock,

within

the

as

nological

result

of

advancement

the

tech¬

its

to
Members

contained

York

American

Stock

Exchange

Stock

Exchange

TEL.

REctor

2-7815

that

future

Bassett Furniture Industries

Camp Manufacturing
Commonwealth Natural Gas
Dan River Mills

there

for

excuse

statement that

the

STRADER JAYLOR & CO., Inc!
Lynchburg, Va.
TWX LY 77

VIRGINIA—WEST VIRGINIA

today
the

toward

is

and

more

of

use

future. Its metal working
machinery, producing virtual automaticity, is used by such industrial
giants as General Motors, Ford,
Chrysler, International Harvester,
U. S. Steel and Bethlehem Steel.

NORTH and SOUTH

In

CAROLINA
IDS

■F. W.-

CRAIGIE&COJ
RICHMOND, VIRGINIA
84

Trading Markets in

addition

to

automatic

all

such

of this

nence

for

reason
common

There
One

is

amples

little

more.

gradually

the

stock

seems

The trouble

to have

been

blocks

holding.
& O.

with B.

that

not

is

mon

com¬

earnings

have

but that they have
widely because of huge

charges.

ings

have

Also,
and

not,

available

these earn¬
still are not

dividends.

for

justment plan, still in effect,
vides for the allocation of

of

each

pro¬

large

a

earnings

year's

to

capital and sinking funds, placing
definite
of

ment

1953

restriction

$3.31

per

to

paid

must

of

share,

share

funds

equal

pay¬

out

per

was

before

and

dividends.

common

amount

of :$10

common

after

earned

Thus

dividends.

earnings

the

on

Since

an

1950

for rails

big

as

operations
itable

each

held to

was

$11 million.

Bayer

representatives
cities and in
40
foreign countries.
Sales

than

Badische Anilin

$9

have

$1,400,000

million

strating
.

Farben

Liquid.

increased

factor.

in

an

in

in

1953

versely affected by
record 1954 sales

strike

OppenkeinWi &,
Members

New

York

Stock

Exchange

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

Phone! HA 2-9766

Tele. NY 1-3222




all

a

1940

to

1954, thus
exceptional

Sales

desnite

from

over

demon-'

growth
ad¬

were

strike. Near

a

were

established

continuance of the

which

less

same

virtually suspended

operations

for

a

five-week

period. Earnings of $1.50

per

for

were

the

1954 fiscal

share
ad¬

per

The 1953 dividend

share

and

this

of

some

$6

or

Fixed

nearing the point where
be

reduced.

of

some

Management's

stockholders

run

obvi¬

the railroad
may

Broadway,N.Y.6 COrtlandt 7-5680

Wishing You and Yours

&

traffic

associate

percent

1953

is

takes

received.

down

in

ASSOCIATES
15

Exchange PI., Jersey City 2, N. J.

the

large

form

of

roads

out a large
earnings in

pays

of -average

dividends, B. & O. has
for

source^

addi¬

O.'s

or

per

share

hidden

of

earnings of $3

Baltimore

stock.

This is

strength

in

Ohio

&

the

Government

West

End

London,

E.

C.

Burma,

Aden,

Uganda,

Kenya,

Zanzibar,

land

Last, but riot least, the territory
by Baltimore & Ohio is
entering into a new growth era.

The Ohio River

Valley has nat .ral
advantages for utility power in¬

2.

(London)

Branch:

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

earnings.

served

in

Colony and Uganda
26, Bishopsgate,

Office:

13,

factor of

a

to

Kenya

Head

$7.7 mil¬

some

additional

common

Bankers

equity

roads amounted to

lion

WOrth 2-4578-9

of INDIA. LIMITED

For example, in
in undis¬
earnings
of these two

&

tributed

Teletype J Cy 698

•

NATIONAL BANK

earnings.
B.

5-6005

Direct N. Y. Phones:

Since neither of these

considerable

a

WELLINGTON HUNTER

HEnderson

also

income"

dividends.

•Duhit Hrar

controls Read-®

too. From these affiliates,

O,

a

the

earnings.

purposes

substantial
B.

\\

Bankers

1951,

the Western Maryland and, fcr all

mg Co.,

Investment

<fe

under

Tanganyika,

and

Paid-Up
Reserve
The

Somali-

Protectorate.

Capital
Capital

£4,562,500
__£2,«51,562

Fund

£3,104,687

Bank conducts every description

banking

and

Trusteeships
also

exchange
and

of

business.

Executorships

>

undertaken

stallations and large manufactur¬
ing plants. The impor ant traffic
from

cated
one

O.

the

diffusion

gaseous

the

on

billion ' dollar

p'ant

Scioto

to

of

the

be

River

example of the effect

is

lo¬

just
B. &

on

accelerating industrial¬

ization of this

In

area.

1953 alone

some

4,000 acres of land along the
company's right of way were de¬
veloped for industry. New indus¬
and

tries

stalled

expansions

sufficient

carloads,
million

or

new

to

more,

indi

and

per

ries

s

annum.

was

$50

a

plant.
deposits

gypsum

devel¬

resource

but

progress ng

exact estimates

Saving*

160,030

petro-chemical

Limestone

in¬

were

add

of tonnage are

available.
Another indication of
that

Baltimore

creased
a

Ohio

has

its coal haulage in

general

coal

&

vitality is

shrinkage

production.

Virginia

in

New

and

in¬

fage. of
overall

fields

Over-the-Counter

1941

to

from

43,400,000

49,300,000

represents

an

in

tons

1953.

a

National Quotation Bureao

in

Incorporated
Established 1913

This

increase from 8%%

for

result in

for 41 Years

developments

in older fields have increased coal

tonnage

Quotation Services

in

are

sinking fund restrictions will
desire to

of

111

1897

Office Tokyo—70 Branches

Brokers

expected to ad¬

are

stock

practical

West

tically reduced since 1944 and

the

months

estimated

charges have been dras¬

ous

six

of

with

Furthermore, Baltimore & Ohio
has a large beneficial interest in

was

earnings before funds.

those

the first

$7

Established
Home

In

$1

was

amount

repeated this year although actual
earnings. available therefor were
probably 60c to 75c per share, out

versely affected by the strike but
for

paid-

out, although $10 had been

earned.

Securities Co., Ltd.

ability to turn such advances into

no

to pay

the
year

also be

Yamaichi

full-

and B. & O. has shown

into the surplus income sinking
and other natural
fund, this meant in effect that!
opments are also
only $1.50 per share was available

maintains

prof¬

a

and

in the early months of

common

write

or

approximately

compared

as

Call

„

Colton

all, major

on

month

in
of $80 million, decline in net

income

vision—

with

knowledge
Japanese potential. .V

ov^r

year net income was up 4,!%.
1954 with an
estimated d op
gross

of

with

investors

investors

Also despite

kept

were

basis

to

in¬

loss of traffic d iring Lie
industry disruption in 1952,

steel

offices

good year

a

whole.

a

32%

rose

been

branch

our

have unusual appeal

may

in¬

O.

had

dividend

in

For

unfavorable

B. <&

and processed on Colton machines.

Hoechster Farben

op¬

of

which

to

SECURITIES

the

to

generally—net

come

a

and

given

an

wires

JAPANESE

of
Ex¬

'

rails

Among

common)

any

job

numerous.
—

Direct

(J.

reasons.

program

1951

NY 1-1^57

Birmingham, Ala.
Mobile, Ala. ;
-

market.

lor

year

benefits

Baltimore & Ohio's 1944 debt ad¬

part

are

in

stance,

Exchange

Exchange

common

other

thereby

HAnover 2-0700

New Orleans, La.

Authorized

poor,

fluctuated

this

tional

along and pay

for longer-term

of

flexibility

buy¬

w

been accumulated in larger

the

&

management in cost control.-

come

\-niids

primary

B."

the'outstanding

next

But

in

Stock

Stock

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

ie

,

my

other

two

are

.

t

York

American

remove

The " immi¬

is

all

stocks available

would

a

move

over

in

would

preferring

the form of

the
er

refunding

whicn

restrictions.

i th
that

bought

the hope

and

debt

future

'other

it
was
a
price
speculation

prior

ma¬

chinery, Snyder owns the Arthur
Colton
Company, a 70-year-old
leader in designing and manufac¬
turing machines for pharmaceu¬
tical and packaging use through¬
out
the
world,
Here, too,
automation is to be found through
the creation of labor-saving de¬
vices. Since acquiring this division
in
1949, Snyder has completely
redesigned
and
modernized
all
products,
with
the
result
that
approximately 90% of all col¬
lapsible tubes used today are filled

the

For years

more

the

this

is

best..

fully automatic
result, Snyder,

machinery. As a
along with its competitors, is en¬
joying expanding sales, with the
prospect of still greater prosperity
for

Since 1932 Specialists in

the

of

security I like

button factories. Be¬

trend

common

road

prevailing high wage
United
States, the

in

almost

seems

well-estab¬

a

of the

cause

Ohio

&

amplifying the bald

signs and builds machines which
perform
complex - and
difficult
operations automatically and with
minute accuracy. In effect, Snyder
is a large contributor to the crea¬

scale

Active

is

complete

70%

written

been

prove

tion oi push

Life Insurance Co. of Va.

Teletype: RH 83 &
Telephone 3-9137

that

Railroad
no

has

Baltimore

about

lished company and has pioneered
in the field of automation. It de¬

American Furniture

Bell System

much

So

New

Members

vance

lately

Steiner, Rouse & Co.
Members

traffic levels

Common

stock

Tool

Snyder

MUNICIPAL E

well

may

Ohio

&

Childs, Vice-President,
A. W. Benkert & Co., Inc., New
York City. (Page 2)

near

Sold—Quoted

Common—An¬

L.

drew

more,

Inc., New York City

Co.,

Baltimore

dynamic.

Trading Interest In

39

be¬

big advance and he now
Snyder should be pur¬
chased by those willing to pur¬
chase
a
company
whose
past
record
is
not
impressive
but
feels

whose

LD

&

Benkert

W.

A.

writer

Cross

its

fore

BROADWAY, NEW YORK 8

The

recommended

Vice-President,

Ohio

&

Next year, with steel operations
indicated at 80% of capacity, or

ANDREW L. CHILDS

automation

competitors.

strongly

tremendous

the

registered in automation
during the past two years and for
that reason may prove to be an
exceptional speculative value.

field, it
seem that
Snyder Tool, at
time, is underpriced relative

this

Over-themost certainly

reflected

not

The

growth.

the

interest

would

McDonnell & Co.

future

for

traded
in
market,

Counter
has

it

that Snyder holds at¬

seem

traction

during the past 18 months.
During the same period, Snyder
Tool has
advanced
only a few
points to its present price of $14.
Because all three companies are
enjoying a large expansion
of
business

Since 1917

m

f.'pld.

pharmaceutical

growing

ap¬

Baltimore

erations

apparently

the Arthur Colton
division possessing the probability
of profitable and stable earnings
as
the result of serving an ever

600%

Rights & Scrip

share.

per

automation

proximately

Specialists in

sole

a

on

its infancy and

two

ciated

Snyder's balance sheet would
to be in good condition
and as of June 30, indicated a net
appear

With

the

of

first

have

New

(Page 2)

should ap¬
proach $1,25 per share. Dividends
totaling 60 cents per share per
year
should be maintained but
expanding
sales
will . probably
defer any immediate increase.
year

amounted to $11.00

small

a

revolution, the

Boston, Chicago, Cleveland, Dallas,

120

Louisiana Securities

—George C. Astarita, Boettcher
& Co., Colorado Springs, Colo.

mately $841,000 after accumulated
depreciation
of
$763,000.
Book
value of approximately $2,400,000

im¬

industrial

Building

Liberty

Direct Private

Street

OFFICE:

PHILADELPHIA

Alabama &

Selections

Snyder Tool and Engineering Co.

nor

capitalization of
217,620 shares of capital
stock.
Property,
plant
and
equipment
account was carried at approxi¬

Snyder

the

fiscal

new

stock

gineering. Un¬

State

84

be,

to

working
capital
of
$1,552,201,
amounting to $7.13 per share of

rt

u

and

der

Exchange

Teletype NY 1-40

Lincoln

Foote-B

Tool

Member

Stock

OFFICE:

whose

1920

120 Broadway, New York 5
BOSTON

field

Company,
and

Corporation

WOrth 4-2300

Co.,

The Cross

are:

s

&

available to the

are

New York Hanseatic

Associate

the

Springs, Colo.

"automation"

American

intended

not

are

particular security.

a

Their

offer to sell the securities discussed.)

Snyder Tool and Engineering Company

North American Royalties

Established.

as an

ASTARITA

Boettcher

^

for favoring

Week's

Participants and

Bought
C.

GEORGE

Haile Mines
.

reasons

(The articles contained in this forum

Collins Radio

v

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

in the investment and

-

Central Public Utilities

•

This
Forum

.Thursday, December 30, 1954

,.

46 Front Street
CHICAGO

Continued

on

page

8

New York 4,
SAN

N.Y.

FRANCISOO

Number 5390

Volume 180

The Commercial and Financial Chronicle

...

3

(2751)

Will Argentina's New Investment
Law Attract Foreign Capital?

INDEX

licrasuiif

-

Articles and News

tmmmmmmmmmmtmmmm

page

AXD COMPANY

———■

,

£

By LOUIS ANDRE FERNANDEZ
Fernandez and Shea, Esq., Washington, D.

Mr. Fernandez

;

C.

•*

and is not free from restrictions

.

profit-remittances. Concludes,

of the

foreign investment

short-term basis, at least,

on a

trade

journals in

pondered

the U.

whether

S.

the

In

depend

have

with

Argentine Foreign Investment
Law
T.

'?

will

tually

ac-

the

of

the

tal.

jour-v

until

cently
that

eign
in

ficiently

investors

home

permitted
to
'.*; profits...

4

of

The Voluntary

6

Canby Balderston

Louis

v

A. Fernandez

in

it

**/v

k

foreign

area

light

'

*

•

•

''

.v

if '

•'

is ,ob\.i'

'

' «J

*—E.

•

'*

,

;

*5

ment Laws.

ventures.

new

,

,

•*

.

thht

it

but

businessmen

of
are

some

*

^

giv¬

ing consideration to Argentina
a

rfielcL for

foreign

According to recent
and. to
tine

statements

Secretary

observaions

as

Gordon

Keith

Competition and the Canadian Scene—James Stewart
•»

'

.

investment

*

t*

•

plained

one

plant.
Italian

firm

facture

in

and

in" plow

parts

by

manu¬

German

a

and

a

other German firms

cement,

tractors,

and

which

passage of the

Law

in

Foreign Investment

August. 1953,

in¬

seven

vestment proposals from the U. S.
and

Europe -had

•

and

15

essed,

more

approved

being

were

proc¬

of Oct. 27, 1954.

as

The

been

factors

v/hich

have

moti¬

these investors probably do
fit a neat pattern.
Some of

not

,

these
work

nized

0.

firms, having
abroad, may

facilities

of

have

recog¬

and

potential in Argentina

not

be

ignored,

jump in

now

competitors
.

Whether

tinue is

a

and

when

are

this

could

decided

some

to

of their

standing off.
trend

moot point.

would

con¬

18

*

V

22

"

*

*

-

J. F. REILLY & CO.

Exchange Plans Seat Exchange.^

Business Outlook

on

.'

17

Direct

Teletype: NY 1-4643

wires

Salt

to

Philadelphia

Lake

&

City

mil

Regular Features

y

mi

As

See

We

It

(Editorial)

Cover

;

1.6,* 1953,
Bank

was***

it

Insurance

and

Stocks

21

.

ex¬

de¬

were

.

Business

Man's

Bookshelf

1

A

40

industries

-

in''

Coming

Events in the Investment Field—

the

which

would

five

'

•

'

•

'*

:

'

'■■■■

'

Recommendations...*

HAPPY

Gold"

■

♦

8

15

1

4

i

NEW

From

Washington Ahead of the News^-Carlisle Bargeron

6

;

31

YEAR

.>

26

•

20

.

TO

and
Indications of Current Business Activity.

indirectly would
foreign exchange.

made that

Investment

Einzig—"Soviet

or

save

was

Dealer-Broker

qualify

plah,

ydar

8

'

-

flow

the

Mutual Funds

■

—

ALL

incoming

had to
so

Broadway, New York 4

15

re¬

;

laws

Stock

pur¬

Argentine

Oct.

on

Francisco

Purchasing Agents Definitely Optimistic

few

foreign investment
be regulated in this manner

News About Banks and Bankers............

that the country would not "find
at
a
later* date unable to

Observations—A. Wilfred May.:.

itself

make good on

repatriation
of

the

of

law.*

capital

It

Our Reporter on Governments-.:.

provisions

of the

law

Our

new

already

if

the

meet

in

certain

the

country

as

tests

of

foreign

tion

in

the

Argentine

as

in

by

which

to

participa¬
by the
of

petroleum, and fields*
law the Argentine

Continued

on

Securities

32

.___

Chesapeake Industries
Securities

Now

in

Registration

33

.

Security

Prospective

-

Offerings

page

32

Common

Houdry Process Corp„

38

Common

Securities Salesman's

Corner.

29

Maule Industries, Inc.
The Market

.

.

.

and

i.

You—By Wallace Streete

Common

17

the

Government is conducting certain
business activities, it was made

Much would

MACKIE, Inc.

1

19

laws.'

reserved

Constitution

State, such

Securities..

Utility

Railroad

un-'

were

new

investment

fields

&

to

When queried about the subject
of

Singer, Bean

8

capital^

new

investments

new

the

of

amounts

profits

Report

Reporter's

Public

*

remitted

^

L— 25

J

authority to

gave

permit firms with foreign invest-,
ments

—

pointed- out

was

investments, but that by a liberal
interpreation, the regulatory de-.
cree

5

...

the remittance and

that the law had reference to

for

that the market possibilities

basic

or

point

reinvest

vated

,

DIgby 4-4970

confeience held

the

directly

create

A

tele-com¬
Since the

.

attract

country's

in projects for the manufacture of

munications equipment.

San

would be those consonant with the

interested

are

press

that

vestments

firm

manufacture;

parts

General Beverages
"

•

.

;

*

-

in speculation or simply for track
ing-commercial activities. The in¬

of the Standard

gear

Sonne__

...

for the enlarge¬
of
a
petroleum products
Still others are an invest¬
of $1 million each by an

ments

the

occasion,

to

of

ment

Companies

ment

.

1

country and not ^capital interested

by the Kaiser, interest;
an $800,000 investment
plastic factory by Monsanto
Chemical; and a (third'is an in¬
by

Christian

•

A Critique of "Big Business"—Solomon Barkin

foreign capital
which would aid in the develop-^

a

Oil

16

.
:

•

—H.

ex¬

and

helpful.

this

signed

facturing

vestment

a

Buenos Aires
On

another is

in

by

may prove

$10 .million

a

*

for¬

clairifact'ons

given

as

Finance at

automobile "manu¬

in

Chesapeake Industries

;
'

42

content

in

fairs,^ sizable foreign capital in¬
vestment projects, including sev-r
eral .-from the U. S., have
been
proposed and approved or are
being given, favorable considera¬
tion.' One of these is

14

..

-Technological Advance and National Policy

Ministers of Economic Affairs and

Argen¬
Economic Af¬

of

and

their

pose,

reports

the

of

California Eastern Air

...

13

__

•

specting

investment.
press

•

*

,.

New Farm Policy and Farm Financing—Don Paarlberg

in¬

Before
entering into
an
planation of the Argentine
eign
investment
laws, a

the

-

•"

Background

is apparent

U. S. and other countries

X

.

Experts Predict Moderate Business Recovery in 1955__i___Covcr

The Argentine Governent as yet

investor,

I-

.

of the revived

•

12

..

J

of

interest for¬

can

has not solved the question of the
old

Brown Allen

1955—Roger W. Babson__ 11

Municipal Capital Outlays: A Force in Economic Stability

*<

background, and the main point?:
the Argentine Foreign Invest¬

situation, the Argen¬

tine Government

,

American Furniture
10

Government and Banking—J. P. Dreibelbis...

■?

terest in the subject of Argent V
as a source of
foreign investm 1 ;
there are given hereunder some

*

eign capital in

7

Morgan

Business and Financial Forecast for

,

into the more f:; A

move

the

In

wonder

STREET, NEW YORK

Telephone: WHitehall 4-6551

Home Mortgage Credit Program

—Robert M.

Condition-investment--,

favorable,

or

orable

past

of this

Obsolete Securities Dept.

5

___

.

view

blues, leave with cash

shouting Happy New Year!

Financial Community and Stockholder Relations

—Peter F. Hurst

in

are

investing
now.
application of the

exportable, profit-seek?
private capital will either

remit

whether

Progress

of-

•

that

lev/ years and

of

Inflation—Robert T. Patterson

vs.

The Economic Landscape—C.

source

a

the investment climate*.is nn+

for¬

Argentina

the

The

climate, when and r as the n
arises, are most: important;. iFo

-

have not been

in

as

which

companies

process

Argentina to

note-

old

Generation

present law and positive steps bv«

re¬

have

made

New

a

Electronics—Ira U. Cobleigh

competitively

countries

Flexibility

nals

and

99 WALL

foreign capital investment, as
apparently it has done in the case

capi¬

1 These

Come in with junk
singing

for

,

attract

foreign

other

Edison, Inc.—And

Phonics

Debt Management

whether Argentina will

on

continue to stand up

HAPPY NEW YEAR!
3

a

-

recent

■

the

Thomas A.

given under the law

A number of respectable for«i°n

*•*

Foreign Capital?—Louis Andre Fernandez

,

enterprise is likely to benefit from the system of protection
to basic industries in Argentina.

new

'-4

'

• •

.

repatriation of capital and

on

>•

'

Cover

Will Argentina's New Investment Law Attract

by Argentina in August,

Points out law limits the nature of

Crosby Kempen..

'

the background and substance

traces

basic foreign investment law enactrd
1953.

A Midwest Banker Looks
Ahead—R.

Tbe Security I Like Best
The State of Trade and Industry

Official Films

2

4

Common

Reeves-Ely Lab. Inc.
Washington and You

Preferred & Common

40

Ultrasonic Corp.
Published

have specialized in

25

BROAD

Albany

•

Manchester, N. H.




Boston
•

•

Nashville

Chicago
•

Glens Falla

•

Schenectady

•

Worcester

Place,

COMPANY, Publishers
New

2-9570

D. SEIBERT,

Gardens,
Edwards

York

N.

7,

DANA

by Williarh
Company

1954

as

SEIBERT,

Subscriptions

President

Thursday, December 30,

1-SC

state

corporation

and

Other

Chicago

city

news,

Offices:

3,

111.

135

news,

bank

etc).

(Telephone

clearings,
»

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La

Possessions,

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Territories

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Dominion

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oi

and

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U.

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of

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per

in

year.

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exchange,

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fluctuations

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WHitehall

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& 4041

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rate

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1954

Every Thursday (general news and advertising issue) and every Monday (completfe statistical issue — market quotation
records,

C.

second-class matter

Subscription

Editor & Publisher

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Smith.

ary
25,
1942, at the post office at New
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Y,

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eign subscriptions and advertisements must
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PHILADELPHIA

4

(2752)

The Commercial and Financial Chronicle...

fire

Thomas A. Edison, Inc.—And
New Generation of Progress

the

in

in science

names

This

75th

vention

of

Thomas

the

A.

timely occasion lor

and
a

corporate
and

which

of

t h

e

founder might
well be proud.
In

18

9

Thomas

6
A.

Edison, Inc o r
porated,
formed

was

primarily

tivities

manufac¬

stemming from in¬

some

years these ac¬

seemed

perhaps
scattered than diversified
included

even

(sold

for

some
a

among

electric

out

of

they

—

plant

ago)

years

little

seemed

which

character

generators

and

recording machines. In 1949, how¬
ever, a new management took the

helm

here,

has

and

done

an

ex¬

job of streamlining and
coordinating research and produc¬
tion; sloughing off unprofitable or
unpromising lines,
and
moving
son

fields in which the Edi¬

in

has

name

been

traditionally

renowned.

Today, under the pres¬
idency of Mr. Henry C. Riter, Jr.,

distinguished

investment

and industrialist

President

of

(and just elected

of National

Manufacturers),

is

advancing
take a quick
Little
he

platters

Edison

and

know- when

today millions of

"White

myriad

Christmas"

homes,

bar-grills; and that

stable

of

disc

projecting

when

As

diners
whole

a

jockies. would

onto

diverse artists
Toscanini.

Let's

phonograph that

be

of

in

company

fronts.

panorama.

did

would

played

Association

the

all

on

invented the

there

banker

the

as

ether

matter

a

Edison turned

of

out

fact,

the first

phonograph, what he really
looking for was a dictation
chine, and although records
the

be

such

Spike Jones and

ma¬

and

recording

12

second

pounds

has

their

to all who talk

as

secretarial
creased

have

big

modern

our

paper

life,

plus

shortages and the in¬

wages

made

of

stenographers,

dictating equipment

business.

voice does it

The

Edison

wholesale,

as

awards

golden

a

a

for

boon

a

surprise

the land

across

in

75

these dic¬

sell

to

offices

tating machines, supported by ag¬
gressive
advertising
and
sales
promotion. You might say Edi¬
phone is carrying on the sound
of the founder.

program

The second
of

Thomas

are

about

talk

to

Edison

is

the

again

Here

Edison

Inc.

started

(there

we'd

aitogeiner)

seven

tery.

manufacturing unit

A.

line

storage bat¬

the

genius

of

it

off; and you
probably remember back around
1910, elderly and opulent ladies
zooming around town at eight
miles

like

hour

an

in

electric

driven

were

black

caboose¬

Well,

cars.

by^Jldison

these
storage

batteries; and the Mlison com¬
pany is still turnimp'em out, but
of

different

a

sortfThe

has. discontinued

company

lead-acid; auto-'

concentrates

widely

on

the

Storage

useful

for industrial

ma¬

nets,
high
the

and

and

wonderfully

de¬

miners' caps) and, unlike other
batteries, they can discharge their

completely without being

energy

There's

another

battery turned
"Carbonaire," a wet
primary battery, within
a

called

a

This has special

case.

them

among

switch
traditional

for

powering

lamps, replacing
oil-burning ones

(less maintenance).
There
can

be

are

divisions

two

colors,

3,000

retail

Medical

a

sells

Gas

anaesthetic gas called

an

and

Baralyme,

a

carbon

Reports

<

in

unemployment indicated

on

Continued

the

and

13%

claims in

the

but

for

Dec.

were

higher

week

7%

a mildly v/orsening sit¬
unemployment insurance benefits

claims

week ended

week

4

than

ended

below

the

R.

Barre-Hazleton, Pa. .7
Iron

their

part
of

soiu-ces

earning

company

power.

Altogether, Thomas A. Edison,
Incorporated, is quite a company,
with

sales

ail time

is

for

1.953

of

1949, when the
came

to

an

high—$41 y2 million. This

increase

an

rising

in; and is

50%

over

Dec.

1953

a

consider¬

very

able tribute to the top level policy
which
emphasizes research
and

development. Last year,
earnings
were
$3.05,
which

will

probably

equalled this
down

railroads

and

short strike

batteries

of

industries,
the main

in

be

not

due to slowed-

year

purchase

figure

a

April.

by

plus

a

plant in

.,7 .7.7

The

financial

company

is,

excellent.

Net

1953

position

of

the

has

and

remained,
working capital at
book

and

value

ar¬

comparative.

with

the 454,886 shares of combined

on

"A"

"B"
common.
(Both
equal, except that the

and

stocks

class

are

"A,"

closely

Ahead

held, has the
issues lie

these

of

$4,236,000 of long-term debt and
14,343 shares of $6.50 preferred.

Major

prior

with

areas

a

Lawrence, Mass.; Providence,
Altoona, Johnstown, and Wilkes-

7

7

_

1954

again

registered

;

„

impressive

258,706,000 tons in 1953.

duced 7.7%

by

Russia,

steel in

more

countries
than

1954

the

in

Soviet

bloc

they did in 1953.

pro¬

Production

in countries of the Free World fell 9.0% short of the record estab¬
lished in 1953.
Combined production of Russia and her satellites

was 62,825,1954, compared with 58,337,000 tons in 1953. Out¬
the Free World countries was 182,365,000 tons in 1954,
compared with 200,369,000 tons the previous year.
*

000 net tons in

in

put

All but two of the 27 countries listed in "The Iron
Age"
steel production showed gains in 1954 over the

of

study

world

vious

In

year.

showing

Russia
far

addition

decline

a

the

the

to

United

States,

the

only

pre¬

country

Canada, which slipped 24.1%.

was

dominated
than

more

steel

United

production
States

did

behind
Free

the

Curtain

Iron

World

output.

The
poured 71.5% of steel made by the Communist
bloc,
while the United States produced only 48.4% of Free World steel.
Russians

The
with

Free

the

World

Iron

been for the

would

Curtain

strong

have

countries

recovery

compared
in

1954

much

steel

less

favorably

had it not
of western European countries.
output

Steel

production in Spain increased 23.4%, Yugoslavia 21.5%,
Italy 16.0%, Western Germany 12.4%, Belgium 7.8%, Netherlands
6.5%, Sweaen 5.9%, United Kingdom 5.1%, Luxembourg 4.7%#
Saar

3.9%

and

France 2.8%.

,

Despite another contract holiday in the United States this
week, steel production is scheduled to move up 3.5 points to 77.5%
of

rated

capacity.

Mills

are

paying doubletime to get out

more

metal.

.

After

the

holiday the ingot rate is expected to

80% of capacity again.

expected

share

a

Initial

were

countries, in

Spearheaded

is

$40

1953.

above the

world steel production in 1954 declined 5.2% from the
record, largely because of a 29.8% decline in United States
output. World output in 1954 was 245,190,000 net tons, compared

counting

above

of

Total

rived at by quite conservative ac¬
was

week

also 4%

1953

year-end stood at above

million,

higher than in the previous
same

were

These are significant highlights from a special world steel
production study just completed by "The Iron Age," national metalworking weekly.
7

share

per

\

11

gains in steel production—while production of the Free World de¬
clined. As a result, the Free World's four to one
advantage in
steel output has been narrowed to three to one.
v
: 7,7.< 7:7.:

since

management

new

Curtain

4%

the

in

substantial labor surplus
I.; Muskegon, Mich.; and

new

dioxide. These,
products, are doing
in
diversifying 0tne

in

slight

some

above that of the corresponding
Electric kilowatt output again soared to a new

year ago.

uation.

compressed

to

already

exceed

in

the

greater pressure
sible strike.

move

above

Steel output in the first quarter of 1955 is

quarter of 1954. Much of the business
And auto producers will put on even
they speed production to hedge against a pos¬
any

bag.

as

The

truck industry, although
running 15% behind its 1953
produced its 1,000,000th unit of the year the past week, ac¬
cording to "Ward's Automotive Reports."

pace,

Thus continued unbroken is

a string of eight annual volumes
1,000,000 units, a mark reached only once prior to World
War II, with a 1,083,086 total in 1941.
The year 1953 netted
1,203,835 trucks.

above

The

shareholder

common

Edison

has

had

pretty

of

steady

treatment at the dividend counter,
with
some
cash
distribution
in
each year from 1924 on. The pres¬

that

rate, amply supported by

rent

earnings,

was

discussed

together

—

the

a

2%

ments

Corporation. The first has

majored in indicating and

trols. The Type "A"

alarm
con¬

thermocouple

"\

•

A

an

tion

not

does

be

out

of business

Edison,

born

and

Wirea to Canada

of

and

10.

the

deserves
the

Well, if

requisites

to

be

con¬

was

looking lines,
long

sales

top

an

standing

plus

management,

on

hard

suggest

tors. It
the

its history to merit
by informed

inves-.

continues to add luster to

Edison

name.

only 4%

work

days in

a

week earlier.

many

thousands of assembly and

workers.

encompassed 35%

Second-shift car output alone a week
of the industry's 56 final assembly plants.

Meantime, "Ward's" said, Chrysler Corp. last week held
21%

of

with

Ford

United

pace

pay¬

States

car

output for

the

fourth

down

straight

week,
steady at 27%. General Motors Corp. was
up to 50% from 48% several weeks ago but only because of the
fade-out for changeover by the Independents.
return

to

Motor

the
the

Co.

swing to volume operations is being marked by a
1953 production pattern that should
become more

pronounced in January when the Independents begin
duction drive with

their pro¬

1955 models.

emi¬

that this company doesn't need to

consideration

heavy overtime for

manufacturing
ago

Steel

reputa¬

manufacturing

techniques,

reported

However, it added that December's blistering production
continue throughout
January, and will mean fattened

Thus
company

laboratory attached!

a

progressive

hitting

in

also

1953 week netted 85,259 completions.

new

diversity of manufacture

rely solely

_________

a

equity, Thomas A.

since

forward

tion,

one

Inc.

with

Present
in

is

desirable

a

MUrray Hill 2-4545

West 44th Street, New York
36, N. Y.

research

product every three years, it will

nent

Members of the Toronto Stock Exchange

once

industrial corpora¬

agency

two-year peak of 173,833 in six days

a near

same

will

distinguished accountant

said that if

FREE COPY UPON REQUEST

NEWLING & CO.

against
The

checks and

of
•

statistical

the industry last week and total
output of 141,563 cars and trucks,

1951,

in 1953.

one

:

The

there

5% stock dividend in

a

and

is $1.20 and

cur¬

Instrument Division and Measure¬

review of the Canadian Securities Market*




there's
which

patented

ent

systems, and in temperature

Direct Private

a

whole

a

about 3%

was

.

uses,

The NEWLING CANADIAN LETTER

—-

dif¬

125

several

over

and other

vote.)

harmed.

for

bassinets,

to

up

in

in

cyclopropane

sidered,

21

add

sold

are

$14

NOW AVAILABLE.

fortnightly

all

Finally,

in

pendable (so much so they're used

a

outlets.

air

are

on

furniture

of

cribs and

designs,

research

A

line

—

These

ers.

and

car lighting,
conditioning. These

production for the country as
Wednesday of last "Week showed

high record level, while steel, automobiles, lumber and
paperboard registered seasonal declines.

over

specializes

now

grade

ferent

motives,

railway

week

week

>

high chairs, bunk beds and dress¬

terial handling trucks, mine loco¬

batteries

i »■

;!];

,

all-time

re¬

division, which - may
bit, is Edison Wood

young

the

in

radar

from the days when the company
manufactured
phonograph .cabi7.

Edison

battery,

of

you a

mobile, and dry cell batteries, andNickel-Iron

contraction, but it

ac¬

ability

Products, Inc., which' is left

oxygen,

salesmen

were.

tele¬

Another

v

they travel. It's

Tele-

it

Televoice is somewhat like

book,

Ediphone Division employs
300

over

the

Voicewriter.

in

com¬

vacuum

industrial

the period ended on

very

The

railway

VP Edi¬

of

carried
a

as

curacy,

Division

Televoice and the

work

was

lot of

a

the

to

romance

with such things

uniquely successful instrument.

a

hard rubber

amount

spoken

be

like

national
is

own; and the
Edison company is
today up front
with
two
products, the Edison

immense

the

can

looks

two

won

cell

The

of

and

coming

son

major product in

and

It

excellence

out

newer

execu¬

on

was

grown

into

its

transmission

anywhere.

machine industry
fabulously in the in¬
terim, dictation machines are now

has

(Business

word, Edison has its VP Voicewriter, an amazing portable dic¬
tating machine which weighs but

cellent

ahead

electronic

not government monopo¬
This Edison Televoice is

As

more

cement

a

-

7

"

..

-

use.

Corporation

acquired in 1953 and adds

definitely a most successful dic¬
tating system in a highly com¬
petitive field.
the

fl
'

-.

7.

Total

Measurement

can serve a num¬

ber of dictators.

tives,
lists!)

Index

plication in power plants in util¬

ity, industrial and railway

one

the . pick-up
radio, television and
ceivers.
77 77".
-"7

his

Production

Business Failures

ap¬

dictating phones

car¬

stature

items

wide

cording instrument. A network of

is
on

prestige

of

with

pB*»d to measure, with minute

developing

vention. For

monitor,

Industry

Price

Auto

and

continuous tem¬

a

Commodity Price Index
Food

is

voltmeters, crystal diode modula¬
tors, bridges, megacycle meters.
Of major importance are standard
signal generators, which are ap-

name,

ture

product

Output
Trade

Retail

State of Trade

use.

require attention to details such
as
the handling of discs, and it
instantaneously delivers the dic¬
tation to a centrally located re¬

which

the

Instrument

sys¬

by

rying

Ira U. Cobleigh

Another

Production

Electric

Carloadings

new

pany

company

new

new

a

Steel

The

recently

phone and easily used. It doesn't

surely a
salute to the

a

quite

in¬

is

e

com¬

light

electric

Edison

for

the

since

year

has

equipment

cable-type
tem
for application
in the
jet planes coming into wider

perature

of the most famous
and invention, and still translating new ideas
into progress and profit.
bearing

has

"Omni-Guard,"

Enterprise Economist
a company

system

standard

company

developed

By IRA U. COBLEIGH

timely look at

been

most internal combustion

mercial and military aircraft; and

Phonics and Electronics
A

detection

years
on

Thursday, December 30, 1954

If

Output Rises Moderately the Current Week

1954 offers

a good sample of how
we can handle our eco¬
bumps, there's little to worry about in the future, says
"Steel," the weekly magazine of metalworking.
Many people say

nomic

we

know

enough

now

to. control bur economic

This year demonstrated that

steel

demand

destinies.

drop substan¬
tially without demoralizing the steel industry or triggering a
collapse of industry as a whole, states this trade weekly. The out¬
can

put of steel for ingots and castings fell 21% from that of last
year,

Continued

on

page

30

<,

Volume 180

Number 5390... The Commercial and Financial Chronicle

inflation of the

Debt Management vs. Inflation
By ROBERT T. PATTERSON

•

•

,

.......

By a. WILFRED may

*

.•

and

-

pattern^consciousness, always present, is

now

at

1

all-time high-—evidenced in the market commentators' copious
citation of the past record of year-end market
action, as well as in
the continuing 25th-anniversary "celebration" of the 1929
an

C

A most welcome addition

tary
in

to the

the latter epochal event

on

the form of

'v.

com men-

comes

"The

t<

'The

of

•

'

'

The

limelight

any

whole

most

lieu of confine¬

customary

easy literary exploitation of the sensa¬
prices that attended the crash. Data are
Exchange seats going back to 1875 (when
they sold at $4,250), on yearly volume to 1900, along with a
chart of the D-J Industrial Average 1922-'33.

tional

annihilation

And

this

in

the

booklet

via

the

there

of

area

likewise

comment

avoids

liberal

are

by the observers of the time,

concentration

facto citation of
quotations of

post

ex

of

Stock

on

on

debunking

easy

Instead,

forecasts-gone-wrong.
serious

economic

observations

ranging from industrialist Henry Ford, a pioneer of t e purchas¬
ing. power theory who supplemented his academic observations
with

rise

post-crash

a

reduction
turned

in

his

cars'

ourselves.

Largely because of

about finding fault

Yet,

decline in trade

we

It will, help somewhat to increase public and pri¬
But the principal consuming power is in the

construction.

people.".

« -

_

The

to

the

serious

more

literature

the

about

statement by George E. Roberts, Vice-President of
the National City Bank of New York, summarizing the effect of

epoch

are

exports

on

brokers' loans and the crucial loans "for

others," and by Carl Snyder, statistician of the Federal Reserve
Bank of New York, on the long-term implications of the postWorld War One rise in commodity prices on the decade's stock
market

action, with the thesis that the Big Rise followed 1919-'24

serious undervaluation.

.""••*

,

Financial

;

second

—

Market events from the end of the First World War are inter¬

119,

to

by

August,

1921

it

fell

further to, 63,

but

by

March, 1923 it was up to 105. Thereafter the market was motion¬
until June, 1924, when it advanced, with heavy volume,

less

through the summer of 1925, with seat prices increasing to $150,000 in October, 1926. The market's advance started again, with the
Average

rising from

159 to 191 in October, 1927; and adding 40

points more by June, 1928.
An
ner

to and

by, the leading and glorified market winners, held in
in 1928; with Durant, me Fisneis, ine Cuturaa, ace

gins as the heroes—Durant a
In

aa^j-

$100 million one.

from 252 to 295, or 16%, in the single month fol¬

lowing. But in the fortnight following November,
of several severe reactions set in, with a decline

1928 the first
of 38

points

back to 257.
These

reactions

anticipatory

are

important

in

showing

the

agonizing emotional difficulties suffered by those prudent investwho were logically correct in liquidating midst the market

ois

inflation of 1928: only to be
wrong,

and, as reconstructed iconoclasts, got back in at 1929's still

higher levels.
The lurid

-

been

subsequently convinced that th°v w^re

and dramatic account of the actual 1929 break has

adequately recounted elsewhere.

This volume also makes

during that great bull market year. .The authors point
while the stock averages were rushing to their pinnacle of
that 1929 year, half the stocks were going to new highs, while the
ing even

•"




three alternatives:

whatever terms

on

••

Continued

on page

6

in

it

which

forced

be

can

to

mea¬
over¬

experi¬

previously"

(2)

The

obtain

create

or

attempt to
history —
the "near-money" nature

ing its maturity.

In the exchange
old, holders

new

maturing debt elected

ing in 8

to take

billion of 8- and 12-month
A very small part—
than 2%—had to be paid in

$10.2

certificates.
less

un¬

least

at

are

con¬

future ahead

curity holders
are

today

to

tions for old

The

willing

so

accept

they

as

obliga¬

new

reasonable terms.

on

catastrophe

of

mis¬

or

war,

trust of the long-run

value of the

dollar

dollar-value

and

fixed

of

securities, could change investors'
drastically.

outlook

cash.
Thus the conversion is regarded
in

an

—the Treasury would not find se¬

and 8 months and

years

be

could

ditions—which

securities for

of

both

governmental and finan¬
cial circles as completely success¬
ful.

The

step

along

Treasury has

the

moved

a

toward

road

If they rejected an exchange of¬
fer the

the

government could still find
to

means

management

can
lead it away from that danger by

lengthening
falls

maturities

due,

that

is_ payable

debt

as

the -amount

reducing

demand,.land

on

inducing fh6 movement of bankheld -securities into the "hands of
long-term

investors.

7

*

*

•

•

5

debt man-:
agement is a difficult and complex
task, but there is no sound al¬

Contra-inflationary

ternative.

skill

as

It

well

whom

on

requires

as

the

and

time

for those

courage

responsibility rests.

H. Hentz & Go. to
Admit Gerson Lublin
H. Hentz &

Under adverse con¬

one.

ceivable in the long

part of the debt by lengthen¬

a

payable.

or

choice

pleasant

an

due

are

debt

buyers are willing

new

them, perhaps

pay

by increasing taxes, but far more

New

York

Beaver

Street,

New

that,

announce

1955,

Co., members of the
Excnange, 60,

Stock

Gerson

D.

Jan.

1,

is to be
a general

Lublin

admitted to the firm

City;

York

effective
as

Mr. Lublin

has for the

past five years been

Manager of

partner.
the

Hentz

his

throughout

and

Department;
entire

Research

Investment

in the financial com¬

career

munity, has been engaged in vari¬
ous
phases of corporate and fi¬
nancial analysis.
During the war
he

attached

was

to

the

De¬

War

partment Price Adjustment Board,
engaged in the renegotiation of
war contracts and was discharged
from the service with the rank of ;
Major.
He is a graduate of Yale

likely by printing currency or by
forcing obligations upon the banks
in
exchange
for
bank-deposit University, class of 1928, and lives
to go.
money.
Both measures would be at 23 Wyndham Road, Scarsdale, *
New York.
In fact, to manager the Federal highly inflationary.
debt it seems the Treasury must
Already the banking system is
run very fast just to keep up with
loaded
with government
debt —
a

sound, noninflationary debt struc¬
ture.
But it has a long way yet

the maturing part

of it. Although
Administration had
declared its intention to lengthen

lion

the

much

the

the
of

present

debt, it has so far increased
average time until maturity
the marketable part by only
months

from

—

3.8

in

years

January, 1953, to 4.3 years at the

present time.
The

lem is attributable not
tne

that

so

short-term
mand.

lar^e a nart. is
payable, on
de¬
billion of

$63

will

securities

ketable

mar¬

fall

due

In addition, there

year.

a

the

very
or

Some

billion of Savings Bonds

$58

outstanding, nearly two-thirds of
which are payable on demand and
the

of

most

rest

on

month's

a

This

billion—43%

$121

entire

debt—is

actual

money,

cash

the

to

new

But

A desire

cashability

spite

low

of

explains,

too,

—

interest
whv the

of Series E Savings
high'y attractive , to.

are

After being
held for two months thev can bi
millions of investors.

turned

cash

into

at

the

merely by endorsing them.
Even

the

longest-term

bonds are,

of

draw

nzea

held

debt

banks

bank
;

highly

Taplin, and Arthur H. Tully, Jr.,

banks

funds.

Marshall Co.

increase

their

reserve

could

then

loans (in the usual form

of check¬
ing-account money) by about five
times

the

of

amount

increase.

That

(Special

The

for

the

would

indeed

—

reserve

debt

be

multiple

a

to The Financial

Adds
Chronicle)

Florence"

CHICAGO, 111. —Mrs.
M.

Colby has joined the staff; of
The Marshall Company; 30 North
La

Street.

Salle

previously
man

&

with

Mrs.

Colby was ;

Tall-

Eldredge,

Co.

YORK

NEW

430 out of 453
Want

a

at

investment opportunities—then

variety of
York.

New

the

r

Bureau

Census

manufacture—the Empire

Examples?
find

or

Here

markets

are

a

of

make markets

in,

Equitable Assurance Co.
(NY)
National Bank (NY)

Chemical Corn Exchange

Bank

stocks

we

Liberty Bank of Buffalo
& Traders Trust

Manufacturers

(Buffalo)
National City Bank

of N. Y.

National Commercial Bank &

Dictaphone Corp.
&

take

...

listing 453 different kinds
State's got 430 ot them.

some

Bankers Trust Co.

Trust Co.

Bradstreet

Durez Plastics

y

i

for:

American

Chase

New

& Chemicals

Federal Insurance Co.
Great American Insurance
Haloid

the future,
the Treasury can't be called uoon
to redeem them. If many holders

Home Insurance

Co.

(Albany)

York Trust Co.

Oswego Falls C^rn.
State Bank of Albany

Tampax, Inc.

Company
Co. (NY)

Time Inc.

Interested? Just call-

Trading Depart merit

government securities the burden
would

fall, upon

bond mar¬
the United
Treasury,
An appropriate
change in prices wou'd then bring
buyers and sellers together. Their
ket,

and

States

not

the

;

be •'tnone-

can

liquid assets in the market place.
they become payable, at
dates spread well into

by

.
.

partnership Abijah Upson Fox, ;
James T. Loree, Walter L. Bogert,
Chester Mack
Mayer, Frank E.

again it they seil the secur¬

change

Dun

govern¬

course,

To Admit Partners
Hayden, Stone & Co., 25 Broad
Street, New York City, members
of the New York Stock Exchange,
on
Jan.
1 will admit to limited

ities to the Federal Reserve in ex¬

With

in

of

occurred

to

credits

government

commercial

look

It

Bonds

conversion

that form of pay¬

securities.

mone¬

against.

for it must be paid
the government's

—

billion

ment

the

deposit

of the
thing to

content to hold short-term se¬

rates.

been

money

Hayden, Stone & Co.

—

bought securities
Treasury and gave it

why individuals and banks

reason

$36

next

the
bil¬

banks

is he

liquidity

are

the

into

by
$64

banks

should

creditors prefer

for

when

has

The

once.

debt

monetization

notice.

in

which

such

from

held

Banks,

much to

so

huge total outstanding as to

fact

of

tized

is

Reserve

the commercial

by

new

magnitude of the debt prob¬

billion

$24

over

Federal

sought to realize upon longer-term

note of the great divergence obtain¬

cut that

;

money.

But until

.

Divergence Then
!

or

accept;

that

Treas¬

curities

1928, the election of Hoover started things up again, the

D-J advancing

-

Patterson

change

ment

interesting account is given of the significant private din¬

New York

T.

Robert

big¬

is

are

estingly traced by Messrs. Kellogg and Downey. They recount
that in November, 1919 the Dow Jones Industrial Average had
declined

gest in

within

History

time

Prudent

change the terms of the securities

completed

now

a

1927-'28 gold

to

money, or (3) in extremis,
invoke
its
sovereign
power
to

operation

six

\

-

,.r

contributing

.Also

-c

some

with nearly everybody and nearly everything.

government, our physical properties, and our industries
changed very little from a year of two ago, when people were

fairly content.

-

a

faith in
have set

more

our

have

vate

in his laborers' wages concurrent with

prices; to former President Cpolidge who,

syndicated columnist, wrote: "We must have

pay

it

more

$6.7 billion of 2J/2% bonds matur¬

History

But this volume is exceptional, if not actually unique, in giv¬

included

to

are

this.

of

aware

of

active stocks.

to

require

created

newly

refinance

(1)

holders

Treasury

of

1929's

into

to choose from

flationary.
officials

obligation

well

part of the government's

a

the Treasury's cash balance, it has

expiosivelyin-

to revelant pre-1929 events, in

might

* The

however, debt matures
or Savings Bonds are pressed for
redemption beyond the amount of

become

can

ury

space

near-term

others.

Wheny

unwisely

ing both news and market quotations of Grey Thursday and Black
Tuesday of October '29 and of the mid-'32 nadir period;4 of the

the

the

debt..

managed, the
present debt

ticker tape at the market's Oct. 29 opening and closing; and
dramatic monthly high and low price changes of the 100

by

which

debt

In addition to 38 pages of text, tables and a chart, the book
contains photostatic reproductions of the financial pages embody¬

to

offered

bonds

held

convert

If

cushioning such shocks by providing funds
care with such crippling dis¬
A. Wilfred May
as
infantile paralysis, cancer, and heart
disease particularly in mind. It is to this purpose that this book
is dedicated. We hope you will find it interesting."

ing major

merely
ex¬
by some for

Treasury could stand aloof, free of

money

managing

eases

ment

would.

maturing Dec. .15, brings into

Federal

for research and

Prc-1929

transactions

problem of

of

«

Treasury's latest refinanc¬

the

Market

position

of inflation that would

shadow* any

y

the

Crash of 1929' differs only in degree from the
catastrophic illnesses that sometimes, without
warning, strike individual homes. The J. C.
Kellogg Foundation was set up for the purpose

.

portion held by banks.-

of

some

sures

change

'

Stock

a

at

\

notes

a

cataclysm

large

•

too

nerable

ing, in which it has "rolled over'
some
$17 billion, of bonds and

booklet, THE STOCK MAR¬
by James Crane Kellog,
III, .a: Governor of the New York Stock Ex-;
charige.^nd William E. Downey. It is .published
and distributed by the J. C. Kellogg- Founda¬
tion of Elizabeth, N.
J., of; which co-author
Kellogg is President, with the following expla¬
*

term issues and too

;

•'

to hand

KET CRASH OF 1929,

nation of its raison d'etre: 7

:

•

enced.

collapse.

.

obligations exchanged. Says problem of
the present National Debt is due to too great amount in short-

*

nature of much of the debt places
the government in a highly vul¬

"

and the nature of the

V
tWall Street's

Treasury's recent refunding operations
problems involved in deciding on character

the

traces

'

.

it is short-term, and
large a portion is held
by the banks.
The "near-money"
amount

much

V

Dr. Patterson reviews

•'

ANOTHER LOOK AT THE 'TWENTIES

,

This is the problem of our presr
erit day "debt: Far too great an

^

-New York University

.*

nation's purchas¬

ing media!

> ?

Assistant Professor of Economics,

<•

t!

5

(2753)

Merrill Lynch,

Pierce, Fenner & Beane

upon

NEW YORK 5, N.

70 PINE STREET

Offices in 106 Cities

Y.

3

(2754)

The Commercial and Financial Chronicle

;;

by

fie Financial

Community

a

narrower

the "bid
It

And Stockholder Relations

curities in
can

and

JF

Founder, President and Director, Aeroquip Corporation

a

aids

Before
'•ial

I

talk

community

relations

finan-

which

several

ask"

our

go

little

a

into the back-

ground

this

Aeroquip
that

our

ticular

so

to

standing
be

example

the

During
that

free

the

could

of

in

enterprise

past

cumulation

14

small

of

to

been

endless

offered

The

•

years

for

reluctant

a

they
in

prospects

for

the

Rather

financing

on

a

to .subsequent
financing

to

scale in 1940 when
of

American

I

} the

v

met

a

group

businessmen

Jackson, Mich.,

the

type

of

on

Mid-Western

area

—

by

i1?'

to

a

local

out

a

would

like

that

to

ing
is

considerable

realized that
offering could be

on

more

of

n

also

pledged

to

put

into the business if

Within

dollars
more

we

money

succeeded,

years, the
expanded to the point

xiess

approximately $100,000 in

The

net

more

price at which

are

'

financ-

was

paid

World

in.

War

At

II,

the

sales

$6,000,000 mark.

capit/l aPPIied in

offered

to

With the

nip

to

er^ of

ket

exclusively, and with aircraft
production dropping from a high
10,000

airplanes

month

per

approximately
seemed

But

that

a

100 a month,
logical expectation.

then, who

the

straight

would

the

over

have

would

Giants

win

Cleveland

to

this

bet

four
In-

dians?
..

Sd

Our

the

tinue to

and

instead

Sales

of

The
—-

to

Expansion

be

as

number

were

:

one

achieve

a

and

accurate

Sales

ume.

of

products
which consist of flexible
hose lines
with detachable, reusable
und

—

fittings

self-sealing couplings

nearly every caoital

used by
goods indus-

try—averaged $20 million during
me last two
years. Earnings after
taxes

exceeded

The

total

amounts to

$1,000,000.
paid-in

capital

approximately $1,100

2

meeting

by
ay

cf

:vir.
Mr.

nurst
Hurst

the

before

American ManageAssociation, New York City.




be

to

seems

carry¬

another

is

in

Secret

continuous

Service

with

man

conversation

with

a

the

from Augusta tell how

the

President

re-

Secretary of State Dulles. He
privacy because he could have just

I

for
have

in

On

mind,

the

him

13th

my

foursome moved off 30

hole

through.

go

he

was

His

on

three

backs

our

companions

little conversation if

very

hanging out.
What t.iere is,

any.

golf.
no

whom he

one

'

"

the

upon

the

and

calibre

will

be

the
is

price of the

market—an

office

in

the

White

House

commentary

the

on

gossip

,

that

ingratitude in not denouncing McCarthy
Marshal^ Very likely the President was guided
'
'•
.
'

.

.

,

them

...

,

red.

see

Inside

the official family, Secretary of the Treasury
George
Humphrey is undoubtedly the most influential and the most com-

i

r^nionable to tho President

■f

I

be

goes

don't

of

;

have not prevailed.

j

economic

)'
;

:

current

\

A

aid

instance

an

when

to his house for

goes

his

A very recent instance

ideas
was

in

on

the

Cabinet

the subject of

for Asia.

Marshall Plan

Humphrey

The President

hunting with him.
know

the

which

an

week.

a

Probably most active in this group of unofficial advisers is
Clay who is truly a remarkable man. An -outstanding military
l and business man, he knows government and politics.
From an
illustrious Georgia family he is a conservative to whom the Re: puclican Senators could scarcely object. Hoffman makes most of

offering

the

on

objective

has

a

shown

on

by. Marshall.;

is

-

■

based

had

ease

of

degree of

Clay
once

closeness

)

dinner,
will

confidence.

Eisenhower

for

Asia

made

considerable

while

progress

attending a conference in Rio. It seems now to
have been definitely squelched. Humphrey came to Washington
with the definite goal of balancing the
budget. He hasn't been
able to do that, and nobody else could have.
was

we

HAPPY

Continued

is known and the
completeness of

earn-

princioal

levels.

determining
But

there

cies—these

stock

are

im-

should

be

re-

by

is

materially

how

well

the

influ¬

NEW

YEAR!

qualifies

But it

as

certainly

"blue

a

siik,

its stock
If

your

meaning
*

•

Slvmg
more

price

securities

two:

is

for

the

objective

marketability,

broader trading
"thereby
uicicuy
the
Company's ** Stock
a
"

active

the

In the First New Era

a

is

good reception

ucts

receive

ception

than

a

more

stock

activities,

which

Aeroquip

had

a

Continued

in

.

27

1929

"The

common

The

common

stock will go up to

preferred cannot

go up," was a main

$

V

around

parallels there surely are,

V

the corner; or on the horizon?

Some

the bull argument of the tax penalty
scarcity value of "good stocks" in lieu of

on

as

profit-taking; the
allegation of their over supply at other times; and the like.
such

sion,

195(1. Jn.

page

another

-I*

*

•

Is

products*..
financing

on

dollars, cannot absorb.

aavance.

bonds, because of their fixed

gospel of the time.

prod¬
favorable re¬

unknown

value, stocks will

tbe extent that the bonds and

known

Earlier I mentioned

or

absorbs the advantage which

return in

.

market, accompanied

New Era philosophy rampant at the time
worthwhile, in the seeking for parallels now—as the popularly-

irrespective of price

corporation's

that

the

to

embraced Edgar Lawrence Smith credo that for the
long pull, and

offering.

realization

textiles, tobacco, theatres, and trucks, actually declined.

Reference

the financial community and the terest cannot be
expected. Finan¬
stockholders in order that they cial public relations is specifically
be taken into consideration when directed at
overcoming "this
judging a company's securities.
vacuum.
It is a
direqt approach
Closely related to a fair and to the financial community with
market

sugar,

r

chip."

can

public will give

.

ents, apparel, automobiles, chain stores,
fertilizers, leather, meat packing, motion pictures, rayon, ruober,

do something
about becoming a
better known
investment so that the investing

to

5

page

ctner 1 alf, including amuse

Needless to say, not every com¬
pany

from

Observations..

company

up-to-date, available information.

price

other

that

enced

flected in the price levels of its background, its management
securities and these facts must and its prospects are not wellbe brought to the attention of known, maximum investment in¬

accurate

a

caddy

a

red faced, out of breath and their tongues were

for his attack

issue.

Of course, we realize that
logs and dividends are

number
address

ouuress

the

commission

factor

company's

"An
mi
^anel

like

looks

the walkie talkie.

occasion

an

>

group
will
commission incen¬

Perscjnnel, policies, and plans and'
developments for the future,

-

(00.

that

.

our

our

him

keeps

undoubtedly,

over

;

have already discussed.
market appraisal of the
company's
In
securities- based on the
the
case
of
a
availdebenture
ability in the financial
the
interest
rate
de¬
community offering,
of full facts about the company's termines the cost of the borrowing
business, products, management, to the company. Here again is a

P°rtant influences as well. For
operations, we chose to expand examPle,
plans for expansion,
our
engineering and sales activi- furt;er product developments,
ties and within a few
years, we Possibilities of diversification, inregained the $6,000,000 sales 'vol- Induction of
operating efficienconstricting

fellow

a

reports

'Marshall's

involved,

sold.

What
was
wets

with

who

which he visits at least

■-

by

-

objective

fair

be

can

con¬

uwjctuvc

this,

Pres:dent's

com-*

with which the
brokerage firms
participating believe the securities

follows:

•■«...vuc

the

depends

be

a

arket

n

company

and

is

Bargeron

the

on

Aside from Senators and leaders of the House with

securities

expenses

of

more

What

many instances.

objectives

factors

,

Engineering

we

dol-

a
can

an

•

underwriting

need

Objectives

collaose

quietly. As we
served the military aircraft mar-

of

yardstick

and

talkie

is about

the public and the

underwriting

of

peak

reached (the

the war, everyone exoected
Aero4

values to which

off

There

worked

determined

are

the

tive to

cents

It is quite

Carlisle

On

were

.

public

proceeds which the

receives

pany

stockholder relations program,

and

him play.

seen

playing with

'

—the

wher</Aar

of

J

I would 1 ike to stress that
point,
hi our financial community and

busi->^^ with

few

a

and

honor

canvas

taken
...

'lng) .we exJ?anded our financial including of course the commis¬
'public relations program;,
sion paid." %
had
some
unusual
bnouid
the. company
concepts
in '. We had very specific objectives
be com¬
mind
relating to flexible hose*1" ™ind- Whether considered in- paratively unknown in the invest¬
lines and couplings.
The possi- 'dwidually or collectively, it was ment community r— as evidenced
bilities were
interesting enough aPP.arent. that a great deal was by an inactive market, trading in
for 10 people to get
together and~;°
£ained from these aims—in only, small amounts and a wide
back these ideas.
Each of the 10 tangir-le, measurable benefits,
spread between the "bid and ask"
thousand

the

to the first tee to talk with

advantageous terms.

as
you find in almost every
medium-sized American town,
i

a

a
•
.

fall

did

Stockholder Relations

such

invested

he

stop at
-

had

Recent

public

a

until

even

turned

<

'

we

off

tees

•

walkie

public

for

he

He doesn't

18.

office.

attention

climate

you

bag with a No. 3 iron showing. What isn't showing
tommy gun. Bringing up the rear is another Secret Service
with so many guns in his pockets that his pants seem about

a

to

an

financial

golf

of his golfing companions, insofar as I
can ascertain, is in a position of adviser or has
any influence with
An
him in matters of state. Closest to him, outside the
examination
of
the
eco¬
government,
nomics of public
apparently are General Lucius Clay, Paul Hoffman, Milton Eisen¬
financing clearly
shows the monetary value of fi¬
hower and General George Marshall. The latter came as a
surprise
nancial
community, ■and
stock-, '/to me. I had thought Marshall had retired completely to his place
holder relations in this
in Virginia but my information is that he is very much in the
respect.

investment

.

the

a

which

shop midway of the^ course for

haven't

a

man

un¬

is

time

the

No.

on

edge of the fairway

.

price

this

that

Flanking him to the right and left

un¬

the

game

a

One Senator,
bed ior two days after his

occasionally plays,

was

.

from

snack

a

o

wit. out

rne

for

ordeal

an

event.

effect

days.

stock

Jackson

Snortly after this first

„

I

here

very

actiyg,

larger

a

j*1 particular. The financing

in

men

all

depressing

favorable

Value

bandled

and
able

be

to

means

accom¬

to consid¬

go

never

,him but I have

several

securities more familiar and

scale.

modest

very

him

to

it

is

financing was another objective." minutes ahead of him.
'and we stopped to let
By making the company and its

by

started

shares,

of

men

a duffer had nothing to do
just that the President plays too
pauses once to rest, he doesn t

It is

down

I

picture which is receiv¬

A

aim

was

He

sit

large

a

sell

transaction

a

these

com-

be

Aeroquip Corporation.

to

of

the

the

it.

'holes out

in

relations

„

We

of

derscore

this country —if you;;
The 1950
financing was priced
right ideas and the de- at $4.00
per share
The distribucermination and aptitude to work
;tion put company shares in
the
ceaselessly.
hands of some 900 stockholders,
Let us trace, brieflv, the
history most of whom were residents of

of

has

of the stock.

a

most

of

with

large

active

more

men,

physically prepared.

game.

do

'

the

have

and

consideration,

necessarily

the
ownership base and
posi- ,thus lay the groundwork
for what
Aeroquip's we realized would have to

still

who

him

be

duffer, went to
His being

a

holding

majority

exceptionally

more

deal

such

a

opportunities

large

a

the

take it fiom

can

you

with

want, to

drink.

great

un¬

were

But

game

the

stock-' ing

view

/

fast.

stockholders

realize

founder

sell,

company ^broaden

testimony

a

fact

to

not to

was

the

ac*-pany's future.
capital ;of this initial

to

to

fortuneJto play go'f with

important

trouble and exercise all sorts of ingenuity to get
him, and his two or three cronies who
arrange most of his foursomes are much in demand at social functions, etc.

ab¬

stock

element

purpose

profit

a

plus

of

least

with

in

institutional investors be¬

thousands

capital,

previously

blocks

At

erable

sell.

rapid

more

with

an

stockholder

stock

the

corporate

leadership,
has

success

can
un-

of

amount

to

follows

responsible

the

to

estate

and

expansion

more

has

securities market, this fac¬
gains in importance.
If, for personal reasons or an

in

volume

stockholders,

system, .holders—in

years,

and
the
growth of
literally from scratch

the

what

America

conducive

of

of

scarcely be considered .excellent

especially

fcion

Hurst

issued

accomplished

der

F.

Petcr

out-

an

apparent

plant

necessitate

;grouo

Aeroquip

as

for

who

Eisenhower.

plishment in industry and other fields of endeavor,

to

the

by the original

point

we

became
increased

need

importance

5

It is supposed to be worth fame and

tor

adverse

factors.

it

of the News

By CARLISLE BARGERON

President

' bid and

investment.

decided
that
the
first
step
^should be the sale of a
percentage
•;of the shares held

immod esty
that

and

"we

o na b le

is

With

handicaps

il

quar¬

weakening of
After all, manage¬

as

have

coming

that

the

with

that

agree

it

not

example of what

would
is

proud

of

1950

under¬

will

you

a

the

undue

shareowner
as

of

objective

any

is

accomplished in America
today—and accomplished in

When

stood.

It

a

restrictive

history will be

pard

is

spite

par¬

sure

is

market.

ment

be

even

case

better

am

can

of

Corporation

the

inception aggregate $1,236,877.
I

:

Washington

Ahead

neces¬

between

narrower

of large

without

company since

its

promptly

becomes

sequence:

sorption

is

a

next

logical

consumers.

about $7 million. Total cash divi¬
dends paid by the

think

it

stockholder

Our

stock

years

when

spread

•the

The book value of the
company
today is in excess of $5 7 million
The market value of
our

it is necessary
;o

with

From

interested

sold

or

is

compromise

The factor of

v

stockholder

and

started

I

ago,

the

program

company

and cements good-will

about

he

of a point of three-eighths of
point, and not a dollar or more.

a

company

holder cooperation,

value to .every,
that the se¬

ter

a

in its financing, betters its position in
attracting offers of acquisitions and mergers, increases stock¬
program

bought

to

*

know

which

Thursday, December 30, 1954

.

* h-•

...

"bid and ask," it involves

company, states that
worthwhile investment
which management cannot afford to overlook.
Maintains such

public relations has been

that

sary

Corporation head, tracing history of his
its effort in

be

to

between

••

is of concrete

stockholder

By PETER F. IIURST*

spread

and ask.'-

..

similes
as

are

not

confirmed

controlling.
b"

the

The warranted

overall

impression

But

realistic, conclu¬

gained

from

this

voiu rie, is that a great break is a surprise as to both, its timing and
"csuse"—uf. indeed* there is'a genuine* cause.
In. the afore-cited*
words of - t e Kellog Foundation: a catastrophic illness striking
without warning.

Volume 180

Number 5390

Financial Chronicle

The Commercial and

.

The Economic

to them to have proven helpful duction of inventories and of gov-^
in prognosis. In order that busi- ernmental buying, the decline in
nessmen and scholars may apply business activity did not become
sumers
to enjoy.
But this social the exception
principle to this cumulative and business is appargain is not without cost. As Emer- problem, the National Bureau of ently showing signs of some reson
pointed out in his eassay on Economic Research has analyzed covery. A powerful force aiding
"Compensation," "Every sweet the several hundred indices which recovery has been the sharp inrhath its sour; every evil is good. ;it has studied over the last quar- crease since spring in residential
For every benefit which you
ter century.
construction activity.
Consumer

Landscape

pile of goods and services for

Member, Board of Governors,
Federal Reserve System

Federal Reserve

Governor, in taking a long range view of
landscape, lists as trends worlhy of notice:
(1) recent high rate o? population increase; (2) the cen¬
trifugal movement of pcpulation in metropolitan areas; (3)
the gain in productive
capaci'y since World War II, and (4)

.

economic

the

intensified technological

diite
of

outlook,

is to

economy

As

•;

Our

life

economic

ticular

to

an

river

enormous

alows without

lik-

ceasing.

that

,lts progress is straight and placid, * mediate
crooked

and

may

postwar

years,

million and

a

ported by This

not.i

k

thousand.

is

of

p

e e

peering

likely

seems

,

flow

who

\ concurrently
that

are

prices. On the

upon

has

business

hand,

one

and
Canby baiderston

competition.

Excess capacity puts
prices and in turn on

more

about

run

800

been an integral part of the procby which

will-probably give us-been

increase

t

ho

Even this reduced rate .ess

52

an

households <"3nd

million

products have

new

into

by

1960

effort, world

encountered

is

: departure from

It is

of curiosity but of

the imperative need to make those

.

plans

and

needed
But

take

for

the

those

forecasting

of

the

are

of

aware

.1 They
;

long-run

(

short.
both

of

the

makes

one

perils

of

but

war

predictions

continuance

introduced and distributed
by. which gains in produc-

Technological Development

;

of

a

fifty-fold, and

Dr. Mees of the

as

for,

during

1.2 million.

to

place

/

cPrnnri

.

self in double jeopardy.

";

•

nvpn

1

th^

ppntrif

ih

population
•

metropolitan
t

r»mrkhpf

nnnr

a

is

of

movement

that

:

trpnri

aair

xxriii

.-1*

.

ever being a nomad—even longer
to get his first pair of pants; A

few months ago a few men learned
write: two weeks

to

some

'hwin.

,
j

For-

areas.-

Regaruless of the risk of being.
.;

"Let us compress the supposed

one-third

period, 500,000 years of man's developthe postwar babies will be seeking .ment into 50 years.
On tnis time
jobs at the annual rate of nearly scale-it took man 49 years to get

do '
a
one's, ugal

venture

than

more

greater

with
with

than

to

become

prophecy,

greater

course

And ,so;/a
would seem

survival,

even

immediate future

,

f

actions

and

success

d

.•

____

printing

of notice

to

seem

worthy

me

- ■

'

ofpopulatiop^nncrease — about
1.7% a year as compared with less
than

The

1930's.

in the

1%

real

t/ena

has enhanced

estate

most

and

fed

for

autos

them

to

a

tremenacus1 demand

andfor

roads

to

for schools, water

on

disposal p'ants. and other

the first

OnS

____

,

built

was
.

„

.

..

run

For

stiil

works,

only
r-

that

the future—noting

history

our

characterized

by

ward

albeit

term

trend,

been

with

up-,

population growth

each

prognostications

'

'

but

measured

be

its

:

.

hove come fu-h amazing things as

radio, television, diesel locomolives,- rayon, nylon, sulfa arugs,

electric

witti

*
*

general

are

expected to decline during the

from earlier high-

and
gain

accurately

household

in

crease

the number of

For many decades

has

households

formation,

tended

to

billion

billion annually.

grow

most

1939.

In

causing the average size of household to decline.
Or, perhaps the

relationship

cause-effect

The

reverse.

growt

i

greater

more

is

just
rapid

households reflects a
tendency for parents to

in

the average size

had dropped from
4.93 persons
in 1890, to 3.35 by
1950, and to 3.28 by 1953.
The

rate

of

household

forma¬

tion, wMch is itself influenced by
the

state

of

business,

makes

an

impact upon the volume of sales
of many industries.
During the
—rr~
the

..

d

_.

_

_

Net o"d,,/ odr.ne

ciation, New Orleans,

House
La., Dec. io,




,

,

a|£!
1954.

figure

for

yeais

Iua—

expand

and

prove

replace, imits productive

become

ideas

lost

that

point

Dr.

of

substantial

price

increases

worn-

facilities, t-.e net expansion in

the p.

ysical

of fixed
ital has been tremendous.
For

vo ume

cap-

achieve

true,

of

satisfying material exis-

a

Even

tence.

"that

feej

though

critics

have

people

may

become

overly interested in gadgets, it is
belief that the physical facili-

ties for living a
made

possible

rrpa£;P

thP

good life that

been increased

are

chances

cf

millions

to

kings,

P™V1'de perspectlv.®

by

over

state

of

ture,

one

he

business

50%; elecby
about

the

in

near

cant.

we

iv

are

unable

the

to

of many

the same time.

the relative
forces that do

To quote

a

great

a

I mention this factor both find

the

problem

so

perplexing

because of the importance of these / that they tend to center their atresources

in the event of

war

and

consumers
can

be

tention on

a

few factors that seem

in¬

or

calls likewise for the understand

consider-

j

»

_

a.

»

,

11

/»

_

1

_

fl

_

i.

1

if Jl

-

...

.

,,

vrl 1

{f

act"

„
r\£

.
,
,.
lomnfoflAn

it regardless of temptation.

This is not

,

To

the

Holders

Offer

an

of

Republic of El Salvador
Customs First Lien

8°/o Sinking Fund Gold Bonds,
Series

Dated Jr.ly 1, 1923,

-

A,-

Due July 1, 1948;

7% Sinking Fund Gold Bonds, Series C,
Dated

July 1, 1923, Due July 1, 1957; and

(Scrip Certificates)
Bonds of Series C,

Certificates of Deferred Interest
issued with respect to
and

3°/o External Sinking
January 1, 1976.

Fund Dollar Bonds, Due

NOTICE OF EXTENSION
The time within which the Offer, dated

April 26, 1946, to

ex¬

Bonds and the appurtenant coupons for
Republic of El Salvador 4%, 3^% and 3% External Sinking
Fund Dollar Bonds, due January 1, 1976, and to pay Certificates
of Deferred Interest (Scrip Certificates) in cash at 15% of their
face amount, may be accepted, is hereby extended from January
1, 1955 to January 1, 1956.
The period for exchange of Convertible Certificates for 3%
External Sinking Fund Dollar Bonds of the Republic, due Jan¬
change

the

above

1, 1976, in multiples of $100 principal amount,
1956 to July 1, 1957.

uary

has also

been extended from July 1,

Copies of the Offer may be obtained upon application to The
City Bank of New York, Corporate Trust Depart¬

National

New ^ork, the New
Central de Reserva deSalvador, San Salvador, El Salvador, C. A.
20 Exchange Place, New York 15,

ment,

Agent of the Fiscal Agent, Banco

REPUBLIC OF EL SALVADOR

/'

By Enrique A. Porras
Minister of Finance and Public Cred't'

December 30, 1954

additional 4% External Sinking Fund
Dollar Bonds, due. January 1, 1976, will be issued pursuant to the Offer
dated April 26, 1946 as extended. However, holders of Republic eT El
Salvador Customs First Lien 8% Sinking lund Gold Bond Series
A
N.

B.—After June

which

matured

of said

Sinking
amount
to

on

30, 1954,

July 1,

no

1918 who surrender such Bonds
will-receive in lieu of said

Offer after June 30, 1954

Fund

Dollar Bonds,

a

-11_

Pled wlth the courage to follow

must assess

not move in the same direction at

be

of

by
speculative" enthusiasm.

excessive

fu-

hopelessly complex tangle of
hundreds of curves." Businessmen

m-nrn

capacity

interests

breadwinners

jured either by lack of faith

®

reduced

been

forecast the

seeks to

resultant

While

of

_

has also

El

Ou'look

Immediate

The
when

gr0wth in total industrial capacity,
t
lP
growth exists and is signify-

power

150%.

of balance ami

This recession' seems to have
a„d psneciallv bv the hankbeen of about the same intensity
y y
as that of 1948-49. It began about
&
the middle of 1953 and by the
If we may revert to the analogy
spring of 1954 showed signs that with which we began, that our
it might be coming ..to an end.
•
lif
*
lik
ff
t
:
c
Throughout this period, mven- economic iiie is iiKe a great river
tories, which were so high a year flowing at varying^rates of speed
ago as to give businessmen real through dangerous rapids as well
concern, have been reduced at an as fertile prosperous valleys, ifc
annual rate of $4 to $5 billion. seems superfluous to suggest thai
This has been a healthy correc- safe navigation calls not only fee
tion, but at the same time a business
depressant, Government peering ahead, but for the inteU
spending, particularly for defense, ligent charting 0f a course cofe-

York

authority on business cycles, the
late Wesley C. Mitchell, "A real
chart of one business cycle would

trie

sense

^fh1^p^1the immediate Pasl ™Interpreted
may be useful.
inginterpretation of me^aonuc

technology in-

by

enjov the comforts once reserved

influence

example, steel capacity has

best

and

in

COurse,

since

replacement of

the

Ko

^

a

a

Wilson is
technology
is

It

time.

our

on/i

The stable
healthy
growth in productive facilities and
in nmHnrtinn that is needed fo:;
in production
ic nooriort fr*-

Convertible Certificates for

driving^Tome "is" that'

to

have
living

us

of

°SIp! To maintain such balance with
enablle ius to r«sad t le future, they
must be used'with caution. To nicety requires delicate handling.

jc the most significant characteris-

my

scale

proportion.

suggesting the likelihood of a conturned rise in activity However,

language.

facilities. Even after allowance .'or

out

offspring have set uo
own.
As a rosult,

the

billion to

$200

over

after

cf their

new

lowing the end of World War II,
American
business has invested

1939 ana for

tieir

on

The latter is al-

short, in tne

maintain separate households long
homes

year

a

times

five

rapidly k.an the population,

more

the

$20

emphasize

i-uT#

often

ity to destroy himself but" it has
also ""enhanced
his ability to

plant and equipment and, in the
four succeeding years, nearly $27

in-

great

eou'p^ent.
In the four years of
1947-50 American business sp?nt

the

an

the

Too

simplicity.

that it has increased to
awesome
proportions man's abil-

over

bring about

academic
The

has

advance

of

r

plant and

new

levels, population growth will, in

long run,

technical

tic

our

But prudent management would

business,

hw™,

L5L

*•

mo-

•;Dr. Wilson's portrayal of man's

in
'

gain
-gain

gifts that

upon

abundance because he appealed tr>
the loyalties of men is required
be- likewise by the Goddess of Peace.

ment, freight carloadings, and industrial production

100-octane

computers,

worthwhile

.

rejected in

magnitude is

though household formation., the investment in
years

higher

prcductive capacity curing
affects- since World War II;- This

which

year,

hoipes, and household furnishings.-

next few

1

•

tne
the

is
is

factor

third

a

cannot

is

much

a

The

heaps

of Ben Franklin's time. Our abi>ity to produce has been teste I
more than once by the
God c<!
War. What he called forth in such

n0n-agricultural employ-

as

-uie electricity,
"And within the very last day

virtue

the construction of schools, roads,
Even

at

ratio.

households

of

number

formed

but

from ^ city

settle

prudent

private and gov-

affairs.

technology

faces

now

use

,

utilities! gasoiine, color and sound in

The Gain in Productive Capacity

-

the

people

centers,-

short-

irregularities.

One aspect of

is

has

persistent

a

which

to

upward ' Their

pointing

-

this" question to

ernmental

that

is

we really understood how to

utilities the requirement

some

challenge

economy

management in

re-

as

ably. It is, therefore, reassuring
days that, in, the face of substantial re*

-

tion pictures. On our condensed
fundamental
question
stemming for piant and equipment and the time scale, jet planes, a dozen new
from it is whether We can provide: requisite capital is magnified by antibiotics and hormones, and the
our
growing ^population with a the fact that the cost of such ex- release of atomic energy all came
constantly rising standard of liv- pansion seems to increase, not in ^nt° the picture in the last hour
or two.
ing. I will;'leave the answer to direct
ratio to the
distance at ™
"

-

lead,

to

failures,

ds- :!

values,

pressed some city property values,

*

The first id the/recent high rate.

r

this

EUourban

::U'

■'

portatfon>

-

■■

■

Population Increase

^

.

ib^

four.

are

.

press

aso

within the last tvree orfour

proven a poor prophet, I will ask. from mid.city to suburban"areas..
what a long view reveals. Among
Made
b
improved trans- tave
the trends that

our

week in manufactur-

per

compared

as

Eastman Kodak Co, has pointed
out, technical advance has been
it is estimated that enough .accelerating at a rate that has itjobs will be required each'year-self been accelerating.
Yet this
during the last half of the current has been a period very short in
decade
to' absorb
about
900,000 the history of mankind.
In the
persons, as compared with 700,000
dramatic language of Dr. Robert
in the first half. During the 1960's, E. Wilson, Chairman of Stanuard
tr.e problem of job creation will of Indiana:

Adam's

as

the Garden.

born not alone

.

old

as

i.e.,

The

to

orders for durable

new

coinci(je

to be ~sus,

are

tended

beyond the wildest dreams of

suc^

observe; high level of defense activity. Ac-

pleasant fruitful valleys

advance;

business

favorable

what mountains, rapids, rocks and. cording to tne Bureau of the Cen-

.

:

have

expanded

are

,

The

to

•

'

that

worked

enhanced

A fourth factor is technological
distance;
As to Ue impact of population .development. Since World War I,
in t h e; growth upon the labor force, i the number mf men engaged in
will assume freedom from another industrial research has increased

short.
C.

and some
mention

I will

its ability to create goods and ing; residential buikung; nonresiservices, which provides material dential building; commodity
benefits for all and a useful and prices; new incorporations; and
potent brake upon inf iaticn; on industrial stock prices.
the other hand, it has stepped up
The majority of these indices

ahead,Mng upon Current Population Re- \
in
ther ports of the Bureau of the Census.

long

it,

move

fleeted in liabilities: average hours

,

liesj

those

lag.

services have also risen, as has
spending by state and local governments.

that

some

with

to

goods;

with 43.8 tivity
have
been
disseminated
t e ; future
tor million in 1950 and 46.8 million in -throughout our economy.
:
discover what; 1953. For t is 'estimate I am rely- '
V -C
both

tend

greater profit >only

mean

outlays for nondurable goods and

during the^rest of this,decade :ppsts., .Competition, of course, has ing confirmed by the indices that

SS"

economic

par -

business,

These

tumultuous." approximately one million a year,-pressure on
T
k

eral
a

that

of gen-

some

in advance

move

in

American

1950, nearly

The Bureau has found

tend to

an

move

sure

1947 to
a half,
Since then, the rate has fallen to

sometimes

Every-

.

accompanied by downward presc

1930's, the number of households
added
each year averaged
only
about half a million; in the im-

Sometimes

.

potential for himself but increased
competition within his industry

activity, but warns the challenge facing
prudent management in private and

be

.

good and

a

industry, growth in plant

.capacity

use

may

tax is levied.

a

the manufacturer in

For

likelihood

a

con-

.

thing has two sides,
evil."

governmental affairs.

ened

.

receive,

F"*

to

business indicators suggests

says

continued rise in

a

our

dpvlonment.

because of the obvious social gains
from our ability to create a larger

;

By C. CANBY BALDERSTON*

the

7

(2755)

in acceptance
4% External

cash distribution equal to the principal
such amount from January 1, 1946

thereof plus accrued interest on

July 1, 1954 at the rate of 4% per annum.

8

The Commercial and Financial Chronicle.. .Thursday,

(2756)

for dividends.

South La Salle Street,

understood

i*

will be pleased

firms mentioned

the

that

send interested

to

in

Steel—16

film

color

mm

^

Broadway, New York 6, N. Y."

Ill

Achievement

telling the story of

to organized groups — to obtain this film
"Achievement," National Steel Corporation, Grant
Building, Pittsburgh 19, Pa. ;

write

'

being

to

sold

ciation

Area

Resources—Booklet

Salt Lake City
Atomic

&

Power

natural

on

Map

Light

Co.,

of

resources

O.

P.

Box

the

899,

Utah

that

Glossary—Literature—Atomic

and

Securities Company,
ton

1033 Thirtieth Street, N. W., Washing¬

Letter—Fortnightly review of the Canadian Securi¬
Market—Newling & Co., 21 West 44th Street, New York
36, N. Y.
ties

1-chome,

Ltd.,

Nihonbashi,

maintained trading depart¬
ments which might have put in a
U1V
lick or two endeavoring to turn
a Switch or two m the secondary
:

market.

Tori, Chuo-ku, Tokyo, Japan.

As

Domestic Airline Industry—Financial study, with special refer¬
ence
to American Airlines, Inc. and Capital Airlines, Inc.

to

—$20 per copy—Henry Beecken & Associates, 1333 G Street,

Ill Broadway, New York 7, N. Y.

Stocks—Discussion in

Stock
Bulletin"—Nikko Securities Co.,
Marunouchi, Chiyoda-ku, Tokyo, Japan.

Ltd.,

do

in

in

a

be

back

Data

—

—

for

Blue Chips—The New York City Bank Stocks—
Bulletin, Laird, Bissell & Meeds, 120 Broadway, New York
5, N. Y. Also available is an analysis of National Steel Cor¬

used in the National Quotation Bureau

National

performance

Quotation

Bureau,

Averages, both as to
13-year period v—
46 Front Street, New

over

Inc.,

a

York 4, N. Y.
*

on

Mills—Analysis—Parrish & Co., 40 Wall Street, New
York 5, N. Y.
Also available is a bulletin with a list of
Rails

for

Appreciation

and

Chips.

selected
'<

'

\

Blue

curities Co., 208 South La Salle Street,

Chips

Fale

and

Chicago 4, 111.

Capitol Uranium Company—Analysis—Filor, Bullard & Smyth,
39 Broadway, New York 6, N. Y.
Central

Bank

&

Trust

About

de

Pasco

Corp.

Co.—Memorandum—Bonds, Jnc.,^ 917
Memorandum

—

—

&

Records-Universal

'

Pictures—Analysis—H. E. Herrman

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

General
&

American

Oil

&

Pipe

Line

O'Connor

Co—Memorandum—W.

C.

Pitfield

Co., 453 South

Spring Street, Los Angeles 13, Calif.

R.

Mallory

—

Brereton, Rice &

Co.

&

Inc.—Analysis—Brush, Slocumb

&

Co.,

506 Olive

&
a

Products—Analysis—White & Company
Street, St. Louis 1, Mo.

Corporation—Analysis—Glore, Forgan

Co., 40 Wall Street, New York 5, N. Y.
bulletin

on

only undertaking
that

for

wnuu

0f

within

are

as

in the

dealers-were

corporate

last

the

institutional

closing

It

fortnight.

was

time, that big

at the

recognized,

would

investors

be

the

year-end
and that sizable blocks very like¬

Jos. E. Masek

ly would have to be carried over

MINNEAPOLIS, Minn.—Joseph
E. Masek, manager of the trading
department for M. H. Bishop &
Co., is happily recuperating after
a siege of illness.
Drop him a line

the

for

down

year-end.

Continued

con-

with the
proceeds to be added to corporate
v

funds

to

,,

jrom

2

page

V'

'
..

.

.f*

.

zrrrdi

one-for-ten

a

basis.

But in the interval bankers will
have

the

opportunity of working

off left-overs from several, recent

which were bought at the
time, presumably with the knowl¬
edge that it might be necessary to

issues

them

carry

the turn of the

over

year.

following week, however,
promises to be a bit more active
several

-large

kids.

will

,

that

public

.

T

'

\

period Duke Power Co.

open

bids for $40,000,000

Commonwealth

Edison

issue

of

Also available
General Outdoor Advertising Co., Inc.

is

of

Corp.

is

$50,000,-

Bond

placing

on

&

the

market.

For

a

a

(Nickel

&

St.

Plate)

Loms

will

In

»

Investment

Field

'

irTV"

Jan.

1955 .(Philadelphia,

14,

Railroad

be

scanning

Pa;)

Philadelphia Securities AssociaHon annual meeting and elec¬

„
'

phase, then just starting, in
steel-making industry in this

new

the

tion of officers.

.

was indicative of the Jan. 24, 1955 (Chicago, 111.)
V
forward lookinS progressive plan- ■ Bond Traders Club of Chicago
* ?■
annual winter dinner at

of

,

designed for rapid unloading .'
cargo
vessels carrying

'the

Furniture Club,

bulk

'

from
and

Jan. 28,1955 (Baltimore, Md.)

22,000 to 40,000 tons of ore

was

Baltimore Security Traders

the first completely new *

sociation

and modern installation of its k nd

to

be

on

the eastern seaboard.

of

built

by

Baltimore

such

it

ic

is

suited

well

Dinner

Hotel.

:

term

trend

heaoed

appears

up-

ward.
Merchandise freight has also increased

by

132%

percentage

tured

now

averages

compared with 43%
these

factors

add

and

freight rev¬
by manufac¬

renresented

items

1941

since

of

in 1941.

up,

Lord

-

As¬
Winter

Baltimore

r

•: •

vV
,

'

>

.

..

25, 1955 (Philadelphia, Pa.y
•

cen?ers

manufacturing
of
Pittsburgh,
Youngstown,. Cleve—
land, and Chicago than are other
eastern ports.
Import traffic has
increased steadily and the long-

the

q

be-

great

the

Mid

annual.

at

•

fore,

facihty
to

nparpr

j

carrier
The Port

common

a

ship-to-rail

a

Investment Traders Association

of Philadelphia annual dinner
Benjamin Franklin Hotel.

.

__

...

_.

__

1955 (New York, N.y Y-)

New York Security Dealers As¬
sociation 29th Annual Dinner at

the Biltmore Hotel.

April 24-27, 1955
Texas

(Houston, Tex.)

Group Investment Bank¬

Association

ers

spring

meeting

at the Shamrock Hotel.

50%
All

I think, to

May 8-10, 1955 (New York City)
National
cial

far-better-than-average growth

Federation

Analysts

Hotel

of

Societies

Commodore.

Finan¬

at

the

'

prospects for Baltimore & Ohio.
To

bit of variety, New York,

Chicago

EVENTS

total.-

,

of

competing for

Electric

COMING

*

-This pier marked the beginning of

170,000 shares of United Gas Corp.
which

'•

ported ore tonnage. Baltimore &
Ohio opened a $5 million ore tmP»er m
,%>*•)f„V
.,n

enues

Co.

000 of debentures due up for bids

stock

■"

j

production in-

"t'k'Jj®? ^ee" Part*y

the

an

1

-

steel

The

with

.

,

.

The cyclical nature of ore traf-^

paucc

what

,

this country to 11% of

was

on

I Like Best

rth^V. country and

„ti«„

Jhrn.f^h nlIrm^ rifiwr

subscribe

at his home, Route No. 1, Excel¬
sior, Minn.

Security

*<•.

.•

...

shareholders who may

common

Win™

The

«

vertible preferred stock,

Share

Maremont Automotive

Opelika Manufacturing

«pI

inventories.

of total bituminous

and bankers will be

Inc., 1 Montgomery Street, San Francisco 4, Calif.

^

the

slated

Chicago has

Bulletin

Co., Inc., First National Bank Building, Denver 2, Colo.
P.

ma¬

bonds.

Johnston Testers Inc.—Memorandum—Fewel &

—

In

nrpffv
pretty much antirinatcd when inanticipated when in¬

year,

any

offering of 407,000 shares of
-

-

In

Co., 30 Broad Street, New York 4, N'. Y.

Lucky D Uranium Mining Co.

new

utility and rail issues looming for

Co.—Memorandum—Doyle,

Co., 135 South La Salle Street, Chicago 3, 111.

Interprovincial

jian(js

issues.

Things Looking Up

Dreyfus & Co., 50

Broadway, New York 4, N. Y.
Decca

specialize

corporate secu¬

Such unsold bonds

proceeding

such

of
period is
Marine Midland Corp.'s scheduled

Minnesota Avenue, Kansas City, Kansas.
Cerro

who
new

could, perhaps, be consid¬
only comfortably bur¬

■

Calaveras Land & Timber Corp.—Memorandum—La Salle Se1

and

of

This stock must first be offered

Gas

Beaunit

Blue

those

to be

ered

bidding

opportunities.

interest

0

Company—Data—Abraham & Co., 120
In the same bulletin are data
Safeway Stores, Socony Vacuum Oil and U. S. Steel.
Natural

Broadway, New York 5, N. Y.
;

material

reoffering

.

♦

American

stand

old

initial week of the

jor

,

market

a

however, does not offer

Over-the-Counter Index—Folder showing an up-to-date comparison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks

and

in the rev¬

a

the

at

new

The

poration.

yield

Joseph E. Masek
Now Recuperating

v

field.

dened with

fortnight when bankers will

with

Neglected

;

than

more

in current issue of

Spinning Companies

.

But the lull is due to pass with¬

"Weekly Stock Bulletin"—The Nikko Securities Co., Ltd., 4
1-chome, Marunouchi, Chiyoda-ku, Tokyo, Japan.

Japanese

But

sheet of paper
year."

ably hadn't cut

1-chome,

4,

-

Off

vestment bankers took them down

"Weekly

issue of

current

\

Work

To

developed

bond

rities

put it "there was nothing
except beat yourself out

walking around the desk." His
major task for one day was to
attempt to tighten up a pair of
shears which he admitted "prob¬

Investment Opportunities in Japan—Circular—Yamaichi Secu¬

Gas

stock.

marketing of

indi¬

active

normally

one

vidual

N. W. Washington, D. C.

rities Co., Ltd.,

the

they

Chemical Fertilizer Industry—Analysis In "Monthly Stock Di¬

Japanese

motions this week,
accomplished
little
unless

but

Canadian

Co.,

dealers went

Underwriters and

through

Securities

have

enue

Development

7, D. C.

gest"—Nomura

^

vintage to keep it busy
despite the several postponements

10, Utah.

5

the New York

on

of recent

M,

Dept.

a

q

finance retirement

The tax-exempt segment of the
underwriting business has ample
supplies of available new issues

<

*

area—Utah

listed

is

stock

Backlog

possibilities—Sutro Bros. & Co., 120 Broadway, New

'

-

to

'of preferred

Appreciation Possibilities—List of issues for long term appre¬
York 5, N. Y.

'

selling at

bids: for $36,000,000 of debentures

available

steel

this the stock
reasonable ratio
to current reported earnings and
next
year
should be a banner
year.
Baltimore & Ohio common

Water Co.—Analysis—Ira Haupt & Co.,

Scranton Spring Brook

accelerated growth.

In addition to all

is still

Development, Inc.—Bulletin—Shea & Co., Inc., 31 State

Street, Boston 9, Mass.

parties the following literature:

showing evi¬

is

Territory

(3)

dence of

Street, New York 4, N. Y.

Broad
Pubco

and cost-conscious.-

minded

& Stern, 30

Phillips Petroleum Co.—Memorandum—Herzfeld

stockholder-

(2) Management is

Gloeilampenfabrieken)—Ana1-

ysis—New York Hanseatic Corporation, 120 Broadway, New
York 5, N. Y.

,

Recommendations & Literature
It

(N. V. Philips'

Philips' Lamps

Dealer-Broker investment

available

making larger earnings

Memorandum — Cruttenden & Co., 209
Chicago 4, 111.

Oswego Falls Corp.

December 30, 1954

summarize, this is

my

favor¬

ite security because I think:

(1)
will

Sinking fund requirements
soon

be

drastically

reduced,

May

18-21,

1955

(White

Sulphur

Springs)
Investment Bankers Association

Spring

meeting

of

Board

of

Governors.

^Bmzmzmszmmmszfflmzzziz,
Bomuva Jrmititics

GABRIEL

Co., rtrt.

Specialists in

SECURITIES

Member

Over-the-Counter

3420

N.A.S.D

BERGENLINE

UNION

Broker and Dealer

AVENUE

CITY, NEW JERSEY
UNion 4-7404

Securities

Material and Consultation
on

Troster. Singer & Co.
HA

2-

2400

Members:

74

N.

Y.

Security Dealers

Association

Trinity Place, New York 6, N. Y.




ORIGINATORS

Japanese Stocks and Bonds
without
ST

h

376

61

obligation

AND
;

Tel.:

BOwling
Head

Green

Office

9-0187

Tokyo

UNDERWRITERS

.

CORPORATE

Broadway, New York 6, N. Y.

DEMPSEY-TEGELER & GO,

PUBLIC

AND

'

FINANCING

?j2izmmmmzzHzmzmm2ZBzz&

r

Volume 180

Number 5390... The Commercial and Financial Chronicle

(2757)

V.

9 ♦.

■««!

&

G«« u«s

Deffo/t,M;ch

of

standard

sr£^

Am'•

and

WfiRroN srtti

•,or,suPP'w

««lprodJcr, f„ PeC,a Carbo« :

0f^ca^a^;;;

■VWton,

caW4„v

W. Va. Worll

,

"'•n.-.SS'i"-;
p&fe

w

Teeming molten steel into giant ingots—working
the bargain metal

that's always working for

In this illustration, which shows liquid steel being
'?? teemed into ingot molds, the artist has pictured

both

|v-

.

;

<n.

r,

,

*

.

W

'

•

a -

end and

beginning. The end of steel■making. XHe beginning of steel-awvh'wg;

~

U- <?.,r

.>

'v

an

a

Fpr 'Wfreo* jpolteumetal has been poured into

ingots ("teeming" is the metal-workers' term for
the pouring operation), the basic business of steelmaking is ended. The ingot—first solid form of
steel—must then be worked into the steel products

*

used

by industry... the tinplate, sheet steel, bars,
strips and coils produced by National Steel

:
*

At Great Lakes Steel

near

use

wide-sheet steel, we're now

made

previously. And with coils like that,
and scrap loss goes down.




,

CI^>M

Ohio

!ron ore from ext™™
," o(
>"g*in the
at
Great lT hold"
Lakes
area.

pro¬

For National Steel, the production of bigger
ingots and wider and longer coils is but another
step in a continuing program to provide all of
industry with more and better steel. Completely
integrated, entirely independent, this is National
Steel—one of America's great steel producers.

ar,d

distribution f^Vrr^°Use

st<*l productf-

L
products in the

C,htles

for

Southwest

"yiOMAl
S'mTc

minis

coup

ZlforT'k

n«^ofNatio

hZTfZ

New Color Film Now Available
"Achievement in Steef'...
the dramatic story
groups.

ment"

GRANT BUILDING

Br

nor

duction goes up

a new

of steel is

16-mm color film telling

now

available to organized

SWA*-SlBl DIVISION

To obtain thisfilmfor your group, write to "Achieve¬
National

Steel

Corporation,

Pittsburgh,

Pa.

CORPORATION

Hi,, y-

AMERICA

'yp^ofZt0:

MANNA IRqn

up td 77 inches wide—with unwelded sections several times longer than in coils

NATIONAL STEEL

SERVING

w

CORP

"fx'divhZ fckpBdSt fur-

of—

**mous

Quonset build

Stra"Sr«<

i

FURNACE

producing coils

division, National's big steel

Detroit, we're now teeming bigger
ingots—twenty-ton giants. From bigger ingots
we
get bigger slabs, which can be rolled into wider
sheets and longer coils. So for the auto makers,

"plant

and others who

you

HAHNA

S E R V I N G

PITTSBURGH, PA.

A M E R I C A N

-i,dsa;d
national
steel

INDUSTRY

P

9

10

(2758)

The Commercial and Financial Chronicle...

The

Voluntary Home
Mortgage Credit Program
'
f

'

%

'

'

Mr.

Morgan explains background and purpose of the Volun¬
tary Home Mortgage Credit Program as provided for in Title VI
of the Housing Act of 1954.
Reveals how the plan works

The

Mortgage

to try to

the

of

purpose

Home

eliminate the need for

Government

support

markets
evidenced

as

loans

no

FNMA,

to

forestall

or

The

t

r e c

ment

and

-

lending,
to

the

d i

availabil-

i t y

of

in

mort¬

cally

and to minority

s-.reas,

by

measure

rucceeds

detent
backs

which

small

in

which

to
off

and

And

that

remote

direct

nveen

the

proposed

in

mind

legis-

in
the
farm
lending
hi eld migh t well take place in the
Residential lending field if the int rusion
of direct lending by the
Ravernment is not brought to a
halt at

point.

some

The importance of
y roblem

is

now

attacking the

that

it

is

still

loans

residential
law

national
have

Regional
of

process

offices

become too far advanced and

may

too large.
The Voluntary Home Mort^a^e
Credit Program derived its legis¬
lative authority from Title VI of

the Housing Act of 1954 which
provided for the establishment of
a

National Committee and various

regional

subcommittees with

members

of

section

each

two

of

builders,

and

nominated

trade

real

by

estate

boards,
respective

their

organizations.

has

personnel
The

It is

a

trade organization

super

been

local

The

committee

Home

operates

The program is designed to fa¬
cilitate the flow of mortgage funds
for government-insured and
guar¬
anteed loans made

by private fi¬

the

To

groups.

existing

to

to

nancing institutions

small

minority

of

is

based

the

the

on

philosophy

financing institutions
if organized, handle the prob¬

Finance

the

assistance.

"small

community"

area"

to

is

program

addressed

is

a

a

part
is

in

25,000

metropolitan

and not in states

quate

in

of less than

area

an

the

or

which

population, not in
area

Loan
of

or

sup¬

The final criterion

sufficiency

insufficiency of

or

is

Fed¬

The

largely

gratis.

represented

the

The

regional

sub¬

'

The law provides that it
shall be
function of the committee to
facilitate the flow of funds for

for,

or

access

mortgage

loans

shortage of local capital
inadequate facilities for,
such

loans,

*An address

wherever

by Mr. Morgan before the
Meeting of the
National Associiti'-n of Mutual
Savings
Banks, New York City.
Annual

Mid-Year




member

of

creed

the

or

generally available
same

extent
as

and

are

others

or

area.

"minority

color,

him

under

the

respect

community

to

generally

in

ual, there is

who,

to

such

an

the

the

same

available

locality.

formation

for

who

do

not

lend

of

out

clearly be of assistance
small way in niusio.
can

lender

a

to

a

remote

I
to

think

that

brings

area.

us

squarely

the question:

supposed

to

How is this thing
work?
In order to

expedite

the explanation of
that,
I think I shall read
you from the

"Voluntary Home Mortgage Credit
Program
a

Background

Statement"

couple of paragraphs:

a

year

by the pri¬

which

I

have

participation
that

cate

with

of the

some

the

of

seen

clearly

indi¬

assistance

of

savings banks, all 48

states will be coverted.

Obviously,

the states of the northeast section
of the

country need little by way

of coverage.

We,

the

savings

banks,

have

much to gain, as I see it, by join¬

ing with them in this private in¬
dustry attempt to cut down to size
the direct

lending

of the

program

government and to make this volprogram a

4»..«.cuy

success.

Y

judge

whether he would be interested in

Pennsylvania School Financing Completed

negotiating toward making the
loan, then would be circulated by
the

regional

to

other

subcommittee,

local

indicated
loam

lenders

and

to

other lenders

legion

and

ho nad

indicated

v

lii^ii' ss

to

outside

sutn

niai-.e

had

make

to

VA-guaranteed

arid second

:

the

first,

who

willingness

a

the
will-

a

in

loans

uie

locality.
"Thus, the first opportunity to
make the loans resulting from ap¬
plications under this program will
to local lenders.
In the event

go

that local funds for making FHAinsured or. VA-guaranteed
loans
are
found to be inadequate, loan

applications .will
nonlocal

be

lenders

referred

the

by

subcommittees.
"In

.

where

areas

to

regional.

inflow-of

an

nonlocal -mortgage
capital
is;
needeu to make FHA-insured and

VA-guaranteed loans, the success¬
inducement of private enter¬
prise to fulfill this need will fore¬
ful

stall the expansion of government

morlgage

lending

meet the

activities "to

problem."
CHECK

Interpretation of Sound Lending
Principles
should

first

be

clearly understood
lending insti¬
participating in the pro¬

tutions

Inc.

National

Committee>

would

by

ples.

It

is

to

what

fer

the

of

the

to

a

William

are

R.

PHILADELPHIA.—A

that

program

the

of

the. national campaign

law

cases.

tions

will

participating

be

given

the

institu¬
first

op¬

portunity, as I have said, Fo re¬
view the applications. In %>nnection with applications for commit¬

Trust

apply

credit

own.

standards of
to

own

construction; its

own

and

and

will,

time

between

its

•

value

standards,
from

blank,

to

amortization

forth.

so

These

of course, change
time, will vary as

different

lenders

in

and

different

geographical areas.
It
up to the regional commit¬

will be
tees

to

home

do

for

<•

their

loans

willingness

best

with

have

to

to

the

find

a

various

indicated'their

comply

with

the

program.

It is

viate^ crowded
ward

that

when

a

to

the

start

have

the

that

the

assistance

will

program

and

the

co¬

operation of the Veterans Admin¬
istration.
In the first go around
the

applications

which

are

now

a

goal

check

further step

here

for

$23,610,000

turned

over

School

Building. Authority.

check

the

to

represents

State

the

cost

in

These

funds

the

are

.

the

Public

tion

625

$23,610,000

.State

sale

Public

marketed

them

successfully.

gram.

Now, what is going to be

coun-«

of

R.

the

in

the

presenta¬

•

K.

Mitchell,. Chair¬

Board

phia;

Trust Company of Philadel¬

T.

By Barrett, and

Louis

Hauptfleisch, of Halsey, Stuart &
Co., Inc.
* Members
attendance
*

of

the

Authority

burn,

Francis

B.

Haas,

Superintendent*

of Public Instruction.
-

in

Weldon B. Hey¬
State vTreasurer and
Dr.
were:

Also:

Russell

C.

y

Bartman, Ex¬

ecutive

The check, in turn, was presented
by the Authbrity to the Provident
TriX Company of Philadelphia,

Director, and Allan Shaf¬
Deputy Counsel of the Au¬
thority; - George S. Munson and
George F. B. Appel, partners in

trustee

the

and
-

paying agent for the
'

...

The presentation was made be¬
fore a large grouo of officials of
the State Authority, members of
-the

banking

group,

officials

of

Provident

Trust
Company, and
legal counsel for the Authority at

This
your

in 30

and Benjamin
Sawin, President of the Provi¬

dent

Building

and

re¬

elementary schools

'

William

F.

School

and

Pennsylvania.

were:

man

of

Authority of the Com¬
monwealth .of Pennsylvania 1954
refunding bonds turned over to
the Authority by Halsey, Stuart
& Co., Inc.,- managers of the in¬
vestment banking group that re¬
cently purchased the securities

of

The

secured

are

Authority from 63
consisting of 26
high

Participating

This

proceeds

recent. public

publicly.

103 school districts

ties

was

fer,

Philadelphia

was

Trust.

/

.

the first issue of State

Public School

Building Authority

law

firm

of

Townsend,. Elliott & Munson, and
James Reynolds, partner in the
Harrisburg law firm of Shelley &
Reynolds, bond counsel for the
Authority; C. Barton Brewster,
Vice-President, and R. M. Decker,
Assistant Vice-President of Prov¬
ident

pro¬

Board

the

projects,

Director

this

the

rentals

revenues,

of

Provident

to

of

schools and 37

28

of

all

ceipts

to¬

Dec.

on

by

pub¬

ceremonies in the Board Room of

in

Philadelphia,

offered

ever

will

referred

of

Witnessing the trans¬

1954 refunding bonds

coming to the VA for direct loans
be

Pennsylvania

Chairman

bonds

alle¬

in

conditions

lic schools took

bonds.

perfectly apparent right at

(left),

Company

Mitchell,

building

under

local

Heyburn

kept the State
in tne forefront

maximum terms permitted
by
for FHA and VA loans in all

The

B.

has

Pennsylvania

credit

Authority

member of the Authority* in the Board

K.

of

mortgage

Building

and Benjamin Sawin, President of Provi¬

pro¬

vide

School

dent Trust.

is

that

Public

Provident

(second from left)

princi¬

designed

representing the proceeds from the

State

Weldon

pro¬

lending

understood
not

of

trustee and paying agent for the bonds.

reg-

the

prescribe

sound

is

program

the

or
of

(right),

Room

interpret what is meant by sound
lending principles. It is not con¬
templated in any way that the
gional subcommittees

$23,610,000

State Treasurer, and

must be left entirely free to

gram

for

public sale

bonds is presented by T. B. Bassett, of Ilalsey, Stuart &
Co.,

the individual

individ¬ Tenders who

limitation of small

no

or

eame

to

How the Program Works

into

a

community

though qualifying for FHA and/or
a
VA loan, does not find credit

communities where there

to

in

containing sufficient relevant in¬

standards

With

the

exact

race,

terms

be

Those
state

"Each application for assistance,

of

to

may

who
might purchase FHAinsured and VA-guaranteed loans
held by me local institutions,

loan

eight of the

or

acquisition under the pro¬
that is. through their regu¬

lar
servicing
contractors,
and
nothing more than that is contem¬
plated.

locating other lend¬

ers

group" to which the program ap¬
plies is the borrower, regardless

on

residential

mort¬

from

has

the National Commmittee and

areas

to

its

are

are

16

gram,

purchase funds

in

and

■

on

committees.

immediate

of

classrooms to accommodate 20,000
students.
•

contributed

savings banks

gage

for

ask

their

by the single device of

of

care

lenders, and the preliminary

schedules

a small portion, say 2
3%, of their total out-of-state

current

Further¬

may

vate

taken

are

lending

the: tune of

government to

en¬

ments to builders for such loans
and to complete loans, each insti¬
tution must be permitted to

Board.

operation

time

lenders

m

be

under¬

now

FHA, guaranteed by VA, and the
availability of such insured credit

V>orne by the Federal
government,
but the various committee mem¬
bers'

local

to

are

They have funds to

job.

be

can

assigning
or

homes

insufficient.

position

a

better

who

that

say

$100 million to $125 million

the

ing residential loans, Tnsured by

Agency

Bank

is

Those

assistance

of

sources

and

for

assistance

having ade¬

mortgage facilities

apply

may

locating

VA-guaranteed
to be built
where the supply of such

in areas

more,

also

in

value

becomes

program

local

the

as

the

of the

a

under

Administration, the FHA, and the
costs

in

financing

meant

general

builders

aid

gram

eral Reserve System, the Veterans

Home

for

lem without need lor more direct

The

This

for

oniy

gaged in out-of-state

government

"remote

good

stood.

fi¬

mort¬

that private
can,

start,

of'

It

designed to meet the problem.
It

have

good

a

participate

that

gage market does not facilitate a
flow of such
funds, the program
is

will

is

have

clearly

the

that

private

in

objective

One

Aseventy-nine

and

:

me

They are privately
ear-marking funds to be sure that
it will work.
They visualize a
direct lending program on the part

re¬

return.

let

minority

'

people

and

extent

network

hundred

The applica¬

eighty have

start—some 30%. More will

committees

pected that actual operations will
some time in January.

and

the

and

pretty good

a

Housing and

advisory members from the

6l:h

largely

facilities actively engaged in mak¬

the Administrator of

The

in

begin

ply of credit.

deal.

are

defining exact areas in which
they will function, and It is ex¬

the

industry; life insurance compan¬
ies, savings
banks,
commercial
banks, saving and loan associa¬
tions, mortgage companies, home

ap¬

being established

nancing
institutions
living in remote areas

ing, and later it may be more dif¬
ficult because the direct lending

regional

been

communities

by private lend¬

the

loans.

and

all

U

be handled

are

of

covering
this
early in Au¬

v/ithin limits and of such size that
can

clear

are

happened

with

for such assistance

region

be made

framework

became

recruited.

that%what has

answered in the af'-irmative.

applicant

making the loan.

in

The plan includes only
FHA

pointed.
the
and

who

had

the

The

gust.

$100 million and $150 mil-

Those

shortage

a

conventional

committees

year.

?;tion

gen-

Residential Loans

legislation

matter

lending business curantly operating at somewhere be-

YTn

and

The

mortgage

a

supply

temporary market

ought to

the

VA

government
the

it

program.

program

do

FHA-insured

within

not

groups. The

of

out

a

make

available

Only Included

determine the

the

to

VA and FHA

country,

e

the

well

may

the

to

situation.

throughout
in

na¬

is

where

communities

Robert M. Morgan

either the

by

sound

basis

t h

provided
There will be
are

mortgages, or
mortgage money

exists due

economi¬

n

made

areas

a

thing work.

"Local
/

underwrit¬

eraly is adequate but

gage credit on
a

sound

all

more

banks
with

Two hundred

funds

program

for

assure

savings
bulletin

a

conclusion,

plied,

by two specified
lending institutions.

not designed to
increase
the
over-all
supply of
mortgage credit, nor is it expected
to provide an avenue of liquidity

govern¬

received

the
•'/

the larger life insurance compan¬
ies are determined to make this

questionnaire covering the matter.

requested

the regional committees.

or

have

a

has been refused the type of loan

I want you to note that no funds

tional

minimize

with

under the program.

b y

of

In

want it

you

in

housing field.

home, may request assistance from
a regional subcommittee in
locat¬

FHA-insured

for loans themselves

of mortgage

construction

or

527

communities

own

is

be accompanied by a certifica¬
tion from
the applicant that he

ing principles.

Program

purchase

Cur

obvi¬

affair

tp

a success.

consistent

Voluntary

Credit

Well,

entire

to.,be.

tion

the role of the participating lending institutions.
Says
larger life insurance companies are determined to make the
plan work and urges savings banks join in the^program as a
means of
cutting down direct lending of the government and

make this voluntary program

the

voluntary, only what

of

and

to

thing?

since

teed

Administration-guaran¬
mortgage loan to finance the

the

The Boston Five Cents Savings Bank, Boston, Mass.
•

this

in

part

ously,

Veterans'

ing a lender who is interested in
entering into
negotiations
with

By ROBERT M. MORGAN*
Vice-President and Treasurer
•

"A
person
seeking a Federal
Housing Administration-insured or

Thursday, December 30, 1954

rities

Trust;
of

and

monwealth.

Arthur K.
the Bureau

Deposits
•

of

Fickling,
of

Secu-

the

Com-

|
\

Number 5390

Volume 180

...

The Commercial and Financial Chronicle

(2759)

levels
and
unemployment at a
minimum, I forecast Lttle likeli¬
hood of higher interest rates.

Business and Financial

Bond Prices:

Forecast for 1955

exception
see

prices in

By ROGER W. BABSON

lax-free
for

1955.

bonds,

increased

I forecast

of the oullook for various industries

forecasts

and

a

individual company acti /ilies.

After so

in

crash

In

1929.

on

1955 such

changed

Looks for slight stock market

the

1954.

reaction in 1955.

from

ihe

some quarters,
1954 saw a
drop in the average Physical Vol-

of ohly 5% from

of Business

ume

gpne

Selectivity:

record

uie

inefficient. Those
for awhile.

the

a

labor

and
com-

1 9 5 3. petition, willMntintie.dutlrigli^S.
1955 could see I forecast n ^high degree of seleclrise of-about

a

the

a m

s

e

panies.

tainiy, the dir e

t i

c

11,

Dividends:

until

business

and

be

com-

for

the

high
plant and

new

chinery have left

k)2rupW3rd»^.

with

-Businessmen
UWak

will

ex-

guaranteed

charges.

As

dcDrccistion
capital commit-

cut and

new

depreciation reU*Ph
During mains high, cash inxlow could ex1 9 5 4 m any
pand. Such companies should be
businessmen able to
pay out in dividends a
rediscovered higher percentage of earnings in
Roger W. Babson
t h e
meaning 1955 than in recent years, notof the word "competition." Sales, withstanding a moderate profits
will continue to be made only
shrinkage.
;
,
'
are

Consumption

sumption in

Outlook:> Con-

better record in early 19j55

a

for both steel and automobiles."

Textile Industry: Textile Indus-

try

operated

at

labor-saving type.

a

of

permitted to

down dur-

run

demand, I
in

.

Over-all

Private Construction: I forecast
that

home

building, and

construction
lower

this

in

general

will

be somewhat
than in 1954, but

1955

important industry ' should
operate at high levels next
"
'
i

still
year.

,

Public

that

Construction:

during

crease

I

construction

public

19551

This

supplies

later

advertising

ce¬

^

w

"planting

icurtailment ^and
crop loans have reduced free supplies, and may make for higher
agricultural prices later in 1955.
Armament Industry: The arma¬

in

burdensome.

should

demand* Iput should
improve. Governrnpfrt-spon-

sored

that

mer-

will

be

The

1955.

on lar&e
tions.

strong

and consolida-

mergers

and

other

help

and

forecast

I

that

by

programs

newreal

farmers, 'stock

fruit growers.

Consumer

been

canners

great food d.istribu

raisers,

have
I

prices

falling.

World

ors

*

Income:

estate

War

Only

III

and

prevented

forecast

this.

that

a

have

should

-

a

fear

easy

of

credit

Therefore,

dov/nturn

in

prices cannot long be postponed.

Consumer

income will holdi at satisfactory
Uranium Craze: The greatest
^eve^s- Mos^ goods should move speculation will take place in the
readily into consuming channels,
seeking and trading of land with
Living Costs: I forecast that uranium prospects. This is. now
during 1955 living costs will show centered in Colorado, Utah, and
little over-all change from pres- vicinity;
but I forecast it will

spread in a limited way to many
states and even to "offthe main floors beneath toe econ¬ firming during the first half, but * other
the late months may again wit- shore" property.
It could exceed
omy. The electrical and chemical
the gold rush of 1849. Another de¬
industries will move at a rate ness a minor softening.
\
ment

industry will still be

of

•

Industries:

I

am

some-

optimistic on clothing, airf t
manufacturing, > air - line

transportation, office equipment,
electricity, output; petroleum pro¬
duction, natural gas, and shoes, f I
am also fairly bullish on
rubber,

Pa.l?£r'
taim

-

electrical •??• J?

types ot

terrous

.

rajns,
any

"J* cer~
and non-.

building,

-

metais.

me

It is fool-

to attempt to forecast

droughts, frosts,
special
section.

t aKing

uie

nation

as

a

etc.,

for

\ynoie, 1
J955.

I Retail Sales: I forecast that the
outlook for retail sales is encour-

aging, at least through
*>

fu

.

Brunts.

the first

penses

There

is

expenses

e^

small

money

II

were

years

the

competition-

downtrend.

after World

golden




Organization
goes
into
I forecast further improve¬
Europe. Competition from
European
manufacturers
w i 11.,

The

gear,

intensify.

Reciprocal
pushed.
I
would not be surprised to see' a
decline in our exports in 1955 and
trade

deals

will

be

con¬

Church members.

important sign.

homes

the

be

to

will

choice

of

aid;

taxes

business

cast that the

Income Taxes:

forecast there

I

of the double-taxation feature

dividends

or

of

the

25%

on

capital

v

next

spring.

I forecast that, un¬
less business slumps, more than I
anticipate .during late 1955, there
will

be

reduction

in

personal
income taxes next year, except to
correct, some
technical
errors,
Any relief for the individual
no

"small"
until

election

Politics:

cal

will

taxpayer

the

news

The

year,

Travel

T.

more

and

be

saved

1956.

really big

is

a

Sports:

I

be

very

forecast

spent

travel and sports in 1955.

on

This is

becoming an important new in¬
dustry and should especially ben¬
efit

Florida,

California, Arizona,

New Mexico, the Great Lakes Re¬

gion,

New

England,

Metals

New

.

,to air

and. the

and

growth in the

use

and

forecast

alloys.

I

metals

stocks

1955

were

as

Presidential

of

will

Nex**

metahr

new

the

be

rare-*

sought: in

the oils in 1954,

Advertising: I forecast busings??
spending in this field; will increase!

;

further in 1955/ It not only

is the
salvation of individual businesses,
but is the best stimulant for na-v
tional

prosperity.

Population: I forecast the popu¬

;

lation

will

continue

during 1955, with

politi¬

Alloys:

conditioning, I expect great

a

to

increase

growing

per

¬

centage of young people between
18

and

22.

cation

1956

This

will

money

tions

e

con¬

provided
10%
goes
to
churches, schools, or hospitals.

demand for

t h

will

increase in

an

30%,

in 1955 will not be made

.

1954

Gifts to charities
.will also increase, due to the more
liberal allowance on taxes, up to

by. the laws that will be enacted,
but by the tremendous, prepara¬
for

in

Northwest.

further relief, in 1955,

no

spiritual awakening

started

tinue into 1955 with

more

,

will be

Churches and Charities: I fore¬

which

and

thereby help employees to
and better jobs.

increase in imports.

an

has

chance

years

—

should

remember

the^ lessons

somewhat

This

a

means

greater

clothing, college edu¬

and

especially

for

World, War III: In my opinion,
initiative in international af¬

the

fairs still rests with Russia.
Kremlin

is

not

all-out attack
enkov

is

that

be

bought for

n »v/

I

the year 1955—over
I
still feel that a

the long term,

major holo¬
caust is inevitable, but I forecast

no

forts

Aid:

during

foreign ef¬
year will con¬

Our

the

result
tural

a

of

decline

the

prices

Unless

should

be

With

4

all

more

a

is

probable,

managers

.

even

goods.

in

price

as

slump in agricul¬
farm incomes.

and

credit.
.

Joseph

S.

Z.

general
Eaton

a

Broadway,

members of the

New

York

Exchange.

Loma Uranium

Corporation

Common Slock

•

the

(par value K)c per share)

1955.
Subsistence
fringes of larger

I

marked

Price $1.25 Per

Share

Copies of the Prospectus may be obtained
from the undersigned.
*

change

in, suburban va-

Peter Morgan

cant land, except for parking^
I
am very bullish on land anywhere

money

-

suitable for .parking,
•

•

31

Nassau Street

limit e l

Dlgby 9-3430

Civ,

New York Sto/>.

1,000,060 Shares

..

Gelsey
partner

partner in Batchker, Eaton & CuV;

lots,,city vacant land should experience a continued slow reductioii in price during-1955; but no

increase the supply of
ease

on

Interest Rates: Until the Treas- <
Business Property: I foresee litury finds a way to balance the tie
hope for improvement for
budget, hold business at high such property in the larger cities
.

.

Samuel
a

a

Vacant Land
in City Areas:
With the exception of parking

inflation

if the

and

7

continues-

or
perhaps
inflationary boom
buried.
Barring out-

for

Jan.

become

few dollars

cities Should hold up well in price
as migration toward the suburbs

Fears,

no runaway

On

will

will be done politi-

during

farms

an

demands

Batchker, Eaton to Admit:
;

commercial farm prices may continue

break of war, our productive capacity is sufficiently large to

meet

day will col jL\

New Issue

cally for the, farmers next year, I

likely than credit curtailment in
1955*
hopes.of

some

your

for real

GO TO CHURCH!

120

World War III in 1955.

Foreign

trouble which

to

reserves

Mal-

pushing a "Peace
am referring here to

now

Offensive."

attention

more

The

yet ready for an
no one in the

Commercial Farms: These have
suffered

food-

supplies will be ample for

1955

1

and

West wants World War 1IL

with

family—to create

per acre.

little "likelihood
getting out of hand 011
the upside, credit easing is more
ing

of

<

,

all legitimate business needs dur- forecast that the recent decline in

•

first few

can

be greatly reduced.

can

js.chipping^away.at .tfcejpro&i-^ojle®; or
Return on invested capiJ

tal is in,a--long-term

War

ex-

Money Supplies: I forecast that

margin.

The

edge

may

forecast that

:

Stiffening

Ger¬

Brussels

some

higher; clothing costs should be
steady to moderately higher.

HoweverInflati<m.

look, for better weather* lp

half of 1955.

be

may

of business

Weather* Conditions:

Ish for

There

Rents, Etc.: I forecast rental

what
e r a

levels.

ent

mand will be for woodlands which

close to that of 1954.
Other

one

As

Treaty

pur¬

New

year.

politics.

this year has made free supplies
General Real Estate Sales: The
°t mostr agricultural items less time is already past due when

decline in

now

forecast

conditions

generally encouraged by Federal offic als, if,

into government crop loans

move

Agricultural'Equipment: This
industry has been suffering from
a

I

and

Competition:
and the

rearms

,

firm
...

/

,

are

Mergers:
gers

tc

fmple< Hence, I forecast that in- by merging, a weak company can campaign. Those who. claim that school buildings.
Austria! prices in 1955 will show be saved. But while every effort President Eisenhower is at. heart
Conclusion: Develop Faith, Med ¬
little change from, recent levels, will be made to prevent bank- a liberal and will get along wen
a
Food Prices: Food prices may ruptcies, Washington will frown with
Democratic ' Congress itation, Health, and Good Woi fc>3

will

ment.

no sharp markup
prices next year,

hard

-

-

forecast
will in-

ri§e in the output of

mean a

see

industrial

Foreign
many

Taxes: The Eisenhower Admin¬

,

work

spectacular gains in the Far East,
particularly in India.

i

istration

I

1954.

phase after their long stay in the
doldrums.
'

Construction:'

Employment; Unemployment
gains tax. Furthermore, corpora¬
outlook is. brighter,,, since busi- tion
income. taxes, wflfc not be per-*
ness will be on the upgrade-duiv
"mitted to decline as scheduled

a v e

will

we

however,

will

than total business inventories^JL-terxcompetition. Many companies

low

extremely

throughout; most

con¬

forecast

ment in

have

These

forecast that total, wholesale ar\d -already weakened by competitive
Coal and railroad equipment also total retail inventories will show -conditions will no longer be able
exertedf a
strong
downpull.
I little change from 1954 levels.
\to keep afloat. I forecast a rise
forecast that the textile and coal
Prices of Manufactured Goeds: -in both the number and the total
industries -will be in: a' recovery Even with the expected pickup in value of failures" during 1955.
levels

the

I

build up Europe, with Germany as
the core; but Russia will make

chasers, even though older homes
give better values.

shorter

1954. Ag total, business expands, .there v/jll be, a pendency to ing the first half., I forecast- thqt
replace reduced,stocks, especially, local, and seasonal unemployment
during the first half of 1955. Total .will still prove a knqtty problem,
manufacturers' inventories, howFailures:* The; salient business
ever, may build, up more rapidly* characteristic of 1955 will be,bit-

proceeding at a more rapjd
rate than has production.
I fore-

on

at plugging the leaks
building new dykes against
flooding tides from the East.

and

the

pensions,

more

forecast a marked increase in
automation and cybernetics, and
other marvelous changes in production methods,

ing

been

cast

h

spot

.

been

number of lines has

a

Inventories

and

Inventions:

mostly be

,

Inventories;

.

week,

New

.

with real effort in most lines.

brightest

tinue

wage,

con¬

tinue to aim

the

_

h i § h

very

ments

e

ma-

concerns

some

annual

The

industrial plants

clearly recognized
that expanding business and in¬
With a better Congressional con- creased
expenditures for plant
Jf0*
appointments- to the Na- and equipment are the true
tionsl Lsfoor Relations Bo3rdj the "sources for
rising employment
decisions of that body will swing and more
jobs. I forecast a con¬
more
toward labor than totyard
tinued aim during 1955 will be to
management.
work

Recent

penditures for

mid-: 1955 .will

,

Victory

in¬

building of new homes has held
at very high levels during 1954.
Although I expect the trend o'f
new home prices to be downward
during the year 1955, they will
still persist at very high figures,
at least during the first half of

industry will

strike weapon,

-•

Building:
new

Residential

Other Labor Gains: I forecast
that the heavy guns of the labor
bigwigs will be trained on the

nimble and for the strong

of

n

o

individual activities

on

Cer-

amount.

f

tivity in the effect of this trend

A AA

T

nicipal construction—schools, hos¬
pitals, etc.

in

fill be improving, the labor ehiefj3''!® W1''.a's0
I010'' t° resort

y e a'r

V

so

struction horizon for next year is
the .prospect for increased mu¬

no

continue to move higher at least
in the first half of 1955. During
tlie first
year> when business

are

costs, plus intens.fied

other

Higher

days

h/ W

been

not

during 1955. I forecast that

course

situation

Oct.

A

v.* »_/ JL A. J.

gives every indication of continu¬
ing to mark out a downward

a

had

r

,

Industrial

;

trend in organized

for the novice in business nnd for

J

has

taxes.

Wages: I forecast that the wage
General Business: Despite wails

•

struction of

sharp

better

U xj

in¬

an

we

the

fact,

for

as

V

bond

rise, the market' could have
reaction; but I am forecasting

high

degree of selecti/ity in trends of labor and other cost*

Prices:

Stock

sees

X

vulnerable to declines and high

so

I

an

Mr. Babron

fmy

suburbs

flated, and therefore will not be

possible

bonds.

revenue

upward direction of business until mid-1955,
likelihood of a 5% increase in the physical
volume of business in the coming year. Gives brief statements

the

the

in the issuance of tax-free-

crease

Predicting

of

reason

no

With

V1 til All

11

& Co.
New York 5, N. Y,

12

(2760)

this

Gdvernment and Banking
Vice-President,

Bankers

•

-

Trust

Company,

New

that

.

'

i

New York bank executive, in reviewing

York

to

'

"Government and
as

preface

a

would

like

has been

as

is

my

make

couple

a

of

general

very

observations.

First, the
of

pose

1

to

part,

take

k ;

o o

and,

a

ahead;
t h i

on

s

score, my sub-

ject is

.

an easy

Whatever

one.

changes

1955

bring

may

Ken

do

in

manifestation
when

came

job,

and

he

later

was

with

today.

us

Let

add

me

that

this whole

to

topic is

address

dous

assets

and

of

liquidating

a

an

mgton

subject and not be too far off the
In

beam.
the

industry,

our

government

and

as

have
supervisor

a

we

regulator, as a
a
partner—to

small

Everyone
much

business

that

knows

or

it

takes

expense to administer small

it does for

as

felt that if
to

as

time, trouble, and

more

big

loans

So it was
found

ones.

way* could be

a

the

would

of the many

government

touches

our

of the RFC.

others.

My remarks
episode in¬

as

well

as

as

will be limited to

volving
One

favorite

our

addressed

the

to

competitor.

a

one

phase of the subject.

one

of

industry

"gripes" is

government

One

of

the

as

favor¬

ite "gripes" of our critics is our
alleged failure to take care of the

banking

requirements

business.

I

knowledge
tion

to

disclaim

small

of

or

any

these

of

but it does

fortuitous

circumstances,

small

a

part in

which

gram

launched

but

has
not

had

have

of

that

considerable

its

public

definite

impact in

relations

and

signifi¬

equally

the

area

be

it

in office.

tion

and

the spring

Among other things,

dedicated

was

in

Administration

new

the

to

promotion

to

mean

however

certain

grounds

basic

which

on

ourselves

the

most

that

we

in

instinct

important

and

Let

different

I be¬

reason

than

postal

Suffice it

In

•

One

these

we

of
is

regard

undertake
if for

areas,

that

they

so

has

no

to

other

from

range

the

on

say that the

to

been

toward

other.

philoso¬

and

liking, and
In

there has been

general

getting

a

movement

government

them
for

the

the

Seventh

sponsored

sociation,

by

Mr.

National

tion,

Dreibelbis
Credit

lib

Dec.

before

Conference




16,

debt

Treasury

As¬

1954.

assets

good
was

a

private

with

their

be

good for
the banks.

for

opportunity
banking system,
the Administra¬

to

implement, not by talk
action, the Administration
policy which it itself had strongly

urged-i
took

of

his

this

problem

to

association

Ev

and

to

George Eccles of the Association
Reserve

appointed

me

City

Bankers.

Each

committee of three—

a

Florence, George Moore, and
Norris

from

Aishton,

from

the

the

ABA;

Frank

his

mittees

service.

bv

or

mean

continued

the

plan

and

one

re¬

com¬

We

either nice

later

called

elected

and

became

Advisory Committee.
misunderstood, let me

it

abundantly clear, right
that this is not a campaign
to keep the position.
the job of

was

committee

our

determine whether

a

deal

was-

feasible and, if so, to negotiate it.
Various
plans were considered;

but, in the
turned

to

process,

the

the

creation

concensus

of

jpool
loans, the sale of participating
to

and

which
for

because

the

service

This

meetings spread
in

the

available to him

contributions

of the

the

to

undertaking.

the books were

too

When

closed, the£e

were

subscribers, including 21 nonbank investors, for a little over
$135 million.
They represented
every state in the Union, except
Personally, I wish there had
that

this

figure

total-unpaid even better.•-'*
of.

of

Federal

Chicago
agent

agreed

for

the
of

agreed
banks

the

to

were

as

large.

to

well

We

'

certificates
amount

advance.

interest

at

issue

up

additions, constituted the Regional
Advisory Committees"' Let me say
tb£-~at this point that here is a large

fiscal

as

handle

of fellows who have really
done a lot of heavy and onerous
group

of

Certificates

be

offered

work:' mthcreiK'any

to

very few
the joB,

to the oublic

as

honed

that

the

list

subscribing banks would be
large. Servicing of the loans was
to

be

by

local

spective

banks
of

areas

in

the

the

which

borrowers

bank of

The

pointed
eral

following

further provided
Committees to be

in

each

Reserve

of

the

12

Districts

to

is

was

one

the

of

the

adopted,
are

of

collect

essence

minute

both sides

a

enlistment

and

the

amount

RFC's
the

interest

FRC

tune

to

the

approximating

having

share

was

This

until

to

$15

effective

and

the

as

collected
reduced

but

think

of

ratio

do

that

sitting

on

certificates
total

-

the

of

pool.

of

sharing

any

ment

in

full

interest

of

That

is

the

so

amount

interest

there
all
all

only

out-

50%

before

another

We

arrived

sued

in

at

of

the

the

indica-

over

of

be

is-

aooraised.

All

were

proportion

soned:

loan

no

secured;

was

was

well

in

a

sea-

of

excess

$500,000; approximately 93%

were

under

$100,000; and 66% were
under $25,000. They were
widely
diversified both as to geography
and

types of businesses.

eluded

that,

stances,
the

an

in

aggregate

value
both

of
fair

sulting

all

80%

the

loan

and

figure,

We

the

pool

prudent.

end

been

little

A

translated

into

a

when

the

Here I

am

the

highlights,
of October, or after

of

on

principal,

750

loans

had

certificates of interest

applying the proceeds of Ocprincipal collections showed

a
reduction from
$47,165,000
approximately $22,700,000. The

tio

of

the

of

amount

outstanding

loans

and

time,

assume

present regime, the number
employees in the RFC on next

January

will
little

or

what
of

a

they

1953.

be

not

1/10 of

at the beginning

were

The

than

more

than

more

administrative

will be at

ex¬

annual rate of

an

Cravens
and
Larry Robbins in
carrying out Administration poli¬

to

We

to
ra-

certificates

share

could

in

the

proceeds of collections of princi-

be

Congress,

time

before

it

it
is.

Nevertheless, in the
progress to

to

light, of the
date, I think it is fair

take

were

of it

a
look today at what we
trying to do and how much

have done.

we

The plan was

to. provide immediate cash

gpiernment from the
course,

ers

and

and

It

through

in

would

their

much

was,
was

the

arrangements,

banks

the

to

sale of the

this

accomplished.

together

ties,

and

that

substan¬

a

made

follows:

as

"Special

mention

the

of

sistance

should

cooperation

be

and

generously given

banks of the country in
the pool,
in

as¬

by the

setting

subscribing

to

up

the

certificates of interest, and in tak¬
ings over the servicing of the pool
loans. Without this
assistance, the

Corporation's organization and ad¬
ministrative costs would not have
been

substantially

could

the

have

reduced,

nor

liquidation^ program

made

nearly

much prog¬

as

ress."
The
To

Taxpayers Protected

date, I think

be

own

could

of

also

bank

borrow-

brought

communi-

be

done

claim

can

we

with
equal force that we have
protected the taxpayer by recov¬
ering every possible dollar on
these

loans.

have this

On

that

point, I do

one very

pertinent com¬
ment, "We ain't home yet!"—and
do

is

not

misunderstand

not

based

on

that

are

That

me.

"gloom and

any

doom" forecasts.

The simple facts

under

almost

any

con¬

ceivable

circumstances, we will be
collecting loans for the account
of

the government for some

after

our

have

been

when

we

interest

certificates

of

paid,: and

at

will

in

have

the

no

loans

time

interest

time

a

pecuniary

beyond

negligible service fees

the
than

more

earned

by servicing banks. Here
I would like to be
permitted a
purely personal observation. Many
of us spend
a
lot of time and
how to build good pub¬

money on

opinion,
public

crammed

relations of

and

can

This program, in my

just

is

will

tive

banking
and

rowers

job

for

type

a

full

do

we

job

of

people

understand.

confident that if

I

am

construc¬

a

with

the

bor¬

successful collecting

a

the

taxpayers,

will

we

have put overone of the best
pub¬
lic relations jobs imaginable.
I

shudder to
which

ing.

think of the

would

follow

bad

will

show¬

bad

a

The test of

private banking
over„the entire period

will extend

of the program, and the marks on
our

report

end.

card

This is

had

will

test

one

best make
The

Problem

In

addition

tions

other

drawn

of

we

Loans to

I

the public rela¬
think there are

implications

from

the

at

which

Business

to

aspects,

come
on

"A"!

an

Small

some

is not complete, and

some

was

contribution; and I quote from
Larry's June 30 Report to the

to

Pa^ had arrived,
Our job

pride, however,

that it

tial

49.68%, and the time when the

may

take

can

in the fact

current loans in
the Pool had declined from 64.4%

thought

re-

this

happened

1954,

collected

on

servicing

The

de-

or refinanced
outside the Pool. The amount out¬

0/11 a

r
would be

be

can

been collected in full

agamst

d

has

only

short

con-^i^ificates;

circumr^

advance

appraised

had

manner:

Every loan in the pool has been

large

the

hit

government

to

following

.

the expense of the

these

a

they

eight months, about $24.5 million

tober

amount

interest

At

to

after

backwards in this respect.
certificates

going

in

pay-

desire to lean

a

30,

be

tion of the committee's awareness
of the public interest involved in
the plan and

what

standing

certificates of

of.

of

success

Pool became effective.
.

in

lic relations.

to

of

should

and

things,

same

March

since

its

only

exceed

at
of

Now

mil-

right would be predi-

on

long

the

proceeds

au-

program.

pool, with
right at that

the

They

loans,

servicing banks, for who

the
a

in

principal

cated

in

delinquent

said almost the
pends the final

aoplied to reduce the outstanding amount of certificates to
an

loans.

discretionary

have earned the gratitude of every
one
involved. On them and the

Fed-

follow

the servicing of t^e
Principal pavments would

loans.

of

1,189, to

perform other services—all
thankless nature for which

for
ap-

assist in

and

2,800

certain

of

thority in the day-to-day servicing of the Pool'loans, assist in

deposit.

plan

Regional

about

were

and

also

was

the RFC,
agents,

servicing

about

exercise

reward

Theirs

along" with

there

service

re-

and, hopefully, bv the borrower's
own

thanks.

procuring

of

or

pur¬

-

Bank-'" of

act

RFC;

and

interest,

all

to

the

accounting,
of

Reserve-

a

the
of

plan

The

was

the recovery of every possible dol¬
lar."
It is significant that under

the effective elate

The .^p^raisal
groups,
at our
of -shgh^ly^more -than
;^q\3^st,'*^acted as "."temporary re$73 million were
ppt: i&the ■ pool. *gioharcommitteesVahd later*, with
this

loans

full

protect the taxpayers' invest¬

ment

made

meeting
of
this
groupr-if* follows that-^vtth more banks
Some 2.841 current business
loans^participafingV it would have been
under $500,000, with
balances

in

government and, at the same

cies.

in

indicates any lack of success, but
last' only that if it is a gbo'd
program,

at

"current"' loans

consent

into

Central
be

•

culminated

the

com¬

Temporary Central
Committee, and
still

were

I

of

negotia-1 been -more—not

announced

this

meas¬

750

paid

Finally, it

pose to reduce

pense

say

direction.

our

929

figures be--one.

and

not

speech

plan

studies

standing did

the

Advisory

not

aporaisal

our

safely

can

country, and

invaluable

basis

of

These

common

Chairman.

ourselves

It

tions
in

the

us,

series

success

you

the

on

a

the

short time

fullest

inter¬

enough to make

now,

was

if

the

emer¬

an

were

Lest

With

fore

lion.

mittee, and they

make

It

hold
over

Wash-

job,

a

with

we

not in

was

offering made by the RFC.
Barney Ghiglieri was drafted to

field—working

of

o'

So the program was initiated

of this appraisal that the Central
Committee acted.

and

Chet

enough

the

out

co-ooeration.

interest

replaced

which

themselves

solved

later

the

responded

and

King,

Reserve City.

operation

rupted

me,

in

certificates

an

these

be

Ken

of

that

the

im-

are

than

been

in

be

as well; and, if there tribution to this remarkable show¬
"give away" In the in-' ing, and real credit goes to Ken

rate,

that it

I wish

employees—in

and

themselves

real

but by

banks

by the American Bankers

Chicago,

would

at the request of

loans.
address

the

translate

contract

and
then

interests,

of private business.

*An

that

to

banks

This

of

the

such

was

local

this

on

commendable.

other words,

one

the

Also, many thought
that bringing the RFC borrowers

to
our

For

of

pressure

subsequently

to "private enter¬
hasten to say that

system

progress

conscious

out

the

King because of

phy of the Administration
its

thing,

gency

of

for

also other im¬

were

considerations.

Frank

us

such things as
coffee-roasting and
car-washing on one extreme, to

score

There

portant

here

of

see

cannot

paner

available

further excursions bv the govern¬
into the field of business

Dick

me

define those

the

temptingly

philosoohic

tradition

belonging

prise."
this

been

Dick

the govern¬
ment out of those areas which
by
as

cidentally) would otherwise have

en¬

accord.

all like to

eliminate

or

Rude

all

on

and
na¬

may

groups of peoples, there ,are,

lieve,

drain

expense

(in¬

"free

manv

the

the

Fred

terprise." Whatever that term

find

reduce

preserva¬

of

therefore,

tionwide organization, which

closer

important.

A

reduce

into

will .also

story begins

1953.

to

administrative

Reese

The

problem,

cash.

gram.

was

to

in carrying out the pro¬

success

order

into

Finally,
verdict, for good
or for
evil, will depend in large
measure upon the success or lack

of

in

RFC

well

I believe that the

of

primary

anxious

completed

the final story is told. I am
sure

any¬

the disposition of these loans

limit

both of these areas«when

in

cance

A
was

was

and which I believe will be found
to

most

it

emphasis

and be-

funds

effect

doubt

more

have

250,

spread

year's

pro¬

been

yet

than

more

have

I

large

a

loans,

thing else to expedite liquidation

special
experience in rela-i- loans.

either

smaller

ment

subjects,
happen that, by purely

had

do

with
RFC

will,

the administrative costs of

save

handling

competitor,
say nothing
other points at which

and

add

the

until

any

terest

an

business

appraisal of each loan.

loans.

called

-

making

small

was

and credit men; and,
working
with the local RFC officials, made

so

were

formulation

ers

same

these assets

that,

the

the

no

government

themselves with other good bank-

for

these

this

of

are
paid.
However, it about $2 million as opposed to
always the thought that there $15 million at the beginning of
would be a cash benefit to'the, 1953. We can claim only a con¬

loans; went home and surrounded

job of disposing of these tremen¬

True, within

private lending agen¬

can

in

which

"to

with

their life under the original
4.7%; and the' governthe benficiary of this

direction

refunded.

rate

a

comparison

and

Some

was

came

was

the twofold

was

such

now

in

is provision for expense;

-a

billions, not millions,

Theirs

even

low

yond

to

was

They

the

rules

ground

many

any

This

group.

in

appraisal of

cluded in

remarks to most

my

upon

of

to

broad that I could

so

prevailed

Districts.

officials

be

my

was

Washington, met with Chet and

RFC

large, nationwide organization. In¬

imperceptible. Second,

fortunate indeed,

were

ment's total stake in the RFC
measured in

than has existed since;
many of
the banks in

pool,

seems

over

creditwise.

country was fortunate
in having such men to do-the job.
When they took qver, the govern¬

of dollars.

far

a

cies.

ured

which

their current rates to regular borrowers.
Moreover, the average
rate for the loans in' the pool

Secondly, it had to

ribbon"

1954, they will
Dreibelbia

we

Chet Rude

"blue

having

in

was

toward restoring normal relation¬
ships between this group of bor¬
rowers

an

one

head up a group composed of one pounded
banker for each of the eight RFC' interest,

comparison to

J. Paschal

sound

Regional

fortunate in

the part of the

on

the

market

fixed

was

for

spread.

be

Here

.

whom

are

tighter
and,

and agreed to

the

rate

amount

64.4%.

of 3%% on the
interest.
Bear in

of

that

that

such plan,

face

was

terms is
ment is

joined by Larry Robbins—both of
we

mind

arrived

we

any

to

of

Con¬

drafted

was

certificates

was

government, to lend

its assistance.

Cravens

the

that

the

figure

have the active support of a large
number of banks. Finally, it had

ordered the liquidation of the

gress

pur¬

these

the most
is

important

movement

RFC.
to

meetings, for

.

An

'

which

interest

Another

private banking system, at the request of the

Liquidation of the RFC

this

at

structive effort

already adopted in Maine.

me

Banking"; and,
remarks, I

to

to

to

job

my

of

We suggested

know

face, should demonstrate
not only that it was not a "give
away" but that it was a con-

outstanding RFC loans. Discusses the problem of loans to
small business, and urges banks set
up programs in this field

assigned

part of

of the loan pool,

the

at

to

percentage

All

its

on

of

such

look

moderator.

was

not

was

length.

is

involved

as

early

very

banking, surveys changes resulting from the Administra¬
tion's policy to get government out of
private business. Refers
to the liquidation of the RFC and the
story of the distribution

subject

act

conclusion

relations of government

to

The

do

good

a

it

arm's

to

personalities

•
,

today

at

have

you

By J. P. DREIBELBIS*
lr> '

platform

negotiated

our

to

be

experience with

the

program, even to date.
They
relate to the perennial
subject of
"loans to small business' and the
Small

Business

Administration,

whose creation and activities have
been viewed, by most of

with

us,

considerable misgiving.

They

late

the

well

as

to

cisms leveled

of

some

at

us.

It

was

re¬

criti¬
a

sad

day when the question of loans
small

business

got

I guess the facts

has

too

much

are

into

to

politics.

that it simply

appeal

to

out, but the result has

keep it

been

the

Volume 180

Number 5f390

The Commercial and Financial Chronicle

...

(2761)
generation of
credit

does

equity.
under

ing

We

overextension of

an

not

solve

know

need

a

the

for

difficulty

tax structure of increas¬

our

equity

We

heat than light.

more

We know that

also

by retained

of' resistance,

know

times, to

the

earnings.

dilution

at

Municipal Capital Outlays—
A Force in Economic Stability
By E. GORDON KEITH*

of

existing
equity by additional equity, even
if it is available.
Moreover, we
have

often

well

as

heard

others, comment

contribution
this

of

our

to

the

country

banks;

and

people

I

want

the

think

not

elsewhere

of

soon

oovii

in
in

anrl
and

able

ciinh

our

to

promote economic

forums

as

ottoII_

avail-

are

let's preach the gospel
"-A
try our b-st to put it in its
,

r

i.—i

*

•

^
•proper perspective.
On the other hand, there

WOrks

works

n.ess cycle is an old one; we can
finH rpfpr^nppc to if in ppnhnmip
flnd references to it in economic
'.j'

•

.

i

-u

•

writings
back

may

til
t

which he expects to

money

availability of which
There

which govern
the long or

are

ly
1

ways
Whv
wny

left

puzzled
private

should
snouia

steps

has

I, for

one,

that

the

this

think

the

is

system

problem.
On the
us have seen a

hand, all of

good many term loans on a 90-day
basis.
This leads to my final observation.

Of

2,848

loans

orig-

inally in the Pool, nearly 750

were

paid

eight

in

full

months

only

of

lished,
by

the

in

first

operation.

ard

mean,

it

be

estabbeen

of

refunding bv banks,
Every one is a loan which some
bank originally refused to make,
I

not

am

lhe._Fede!al
Government

Keith

u

•

heavy

.PaklI?g

i

financial contributions in
support of State and local public
works programs, most of this aid
served only to replace State and
local

financing.

Despite substan-

tial amounts of Federal aid, total
public- works
expenditures
remained below 1931 levels, in constant

dollars,

until 1936; and in
that year, the total outlay was
only one-sixth higher than it had
been in 1931.
'me

mists

public works to
of

out of the depression

us

thirties

the

of

lanure

bring

has

led

some

econo-

to conclude that this

be

a

in

the

weak

reed

which

on

of

event

that

nor

out

and

marginal

make

loans

should

I

all

bunch

we

would
to

another

of

a

suggesting

am

ditures

and

taxes

curred

since

1939,

in

one-third

of

the

1953,

or

monthly

average for total new construction
of $2,938 million.
Of this

$948

million

of

public

about one-half

was

should

we

gent

make

annroach

to

intelli-

an

the

nroblem

of local governments cannot make

slSni^c^nt contribution to

a

lean

serious

that

has

with

and

oc-

the

increased

responsibilities
which
the Federal Government has been

in

eco-

,.we,,wai^ C use

countering cyclical

msta-

bility through public works

out-

jayS requires careful planning as
regards both the projects themseiVes

and

should

like

each

their
to

these

Qf

financing

deal

with

this

eve-

matters

ning. but bef0re doing
of

so

I should

given for the maintenance of

suggesting
efforts

to

times
and

that

will

meet

to

instability itself
sharper focus.

into

fact

de¬

works

down,

I

story which

a

on

last

my

point. It occurred in the '30s when
the

Production

tions

boys of
leagues.
tion

good

a

Credit

Corpora-

favorite

the

were

whipping

of

many

col-

our

I recall one big indigna-

meeting in Dallas.

Included

,,

the

in

„

attendance

ran

was

well

a

remember his name)

little

a

E'ast

country bank

Texas.

There

who

over

were

a

willing to take

vxovt

oi

ex

vocal

part,

was

positive and

a

Lor
every

+ex

but

in

very

few controversies in which he
not

r

to

that

one s

should not overlook the
the objective of public

expenditures is likely to be
limited in future reces-

more

tha

slons

g

ports, and mortgage insurance, all

tend

isCTlous0depre™
^

d?

f

PrLt,eix.

an

th

0

.

Federal

present

P

s

budget

rexI.eia

is

uuugei

anti-^hcrf factor of no small

in

the

early thirties to make ef-

fective

lays

of

use

public

works

By

total effective demand,
the total money spent

mean

the

current

physical

output

we

on

of

goods and services, including those
which are provided by the gov-

While it is true that State and
government

represent

expenditures

much smaller

a

propor-

ditures today fhan they-

such

reputation

a

natural

him for
He

that
an

rose

observed
a

the

had

was

only

call

upon

expression of his views,

and

in

that

Production

seat

it

chair

his
in

his

Credit

never

drawl

Texas

been

experience

man

on

much

of

total

^

gt

and

a

banker

My point is—"Let's
shoe leather and

on

wear

expenditures

on

do'no

e

csen

pcrcentage/ofthe

9™sf fationaI Pr°d"c' todav
(7%) than they did before the
(9%).

war

*An

Furthermore,

address

while

more

Pa.,
in

Dec.

this

and

do

visers.

of

by

Dr.

Keith

before

the

Financing
Capital
Im¬
Lafayette "College, Easton,

on

provements,

views




in

his

less seat-of-our-

pants."

j

expen-

did

serv ces

amuchsmaller

com¬

his toes.

out

government

j

,

good"

Conference

petition for

on

wide vari-

a

services

rang-

ing from suits of clothes to electrie

generators,

cuts

to

and

engineers.

the

!,

1954.

paper
not

the

are

The

those

necessarily
Council

of

views

of

presented

the

Author

represent

Economic

the
Ad¬

i+fii?
liseil,

JUSlliy

sldes" t0

product

coin.

turning

out

In

paid

^

and

billiok
u™,

business

a'rift corporate

unincorporated businesses kept

$30

billion

as
depreciation
paid another $30
ijon to the government in
form of indirect taxes.
If

serVes

that

re-

and

thpv

up, you

bilthe
you

will find

nut

rnmp

$865

tn

then,

the income

generated

the production process was

spent

$6 billion.

the accounts in
to

see

for

the

know

fluctuations
inflations

as

role

which

which
and

sions; it also helps

we

depres¬
see the

to

us

government

has

to

play in countering inflationary

or

deflationary

pressure's.

ond q(Jarter
quell ICi

^tVe'e^tlTs'ecofd!gls and the third
Ul

13JO

Quarter of 1954.
rinri

flrrvcc

1
we

dliu

LIlc

LI11IU

During this

pe-

lVTofinnol

would

theT accounts,
this
decline

at

.

that

see

about

came
a

look

to

were

largely

as

vate

domestic

$14

billion

result of

a

$10 billion decline in

investment,

reduction

pri¬

gross

in

and

a

Federal

expenditures, which were offset
by a $4 billion increase in
consumption
expendjtures, a $3 billion in net foreign
disinvestment, and a $3 billion
in part

personal

increase

in

ernment

these

State

local

and

expenditures.

offsets

confidence
the

If,

by
ex-

receipts

by
Setting up
this way helps us
the key factors responsible

than

more

receipts

government

exceeded

the

and

of

gov¬

for

But

continued

businessmen

in

the

future, the decline in income and

billion

in

and

penditures

we

$57
$39 billion,

exceeded

billion,

of

course

tenders
billion,Corporations

received

$16

fell from an annual .rate of $370
billion to one of $356 billion. If

jncome-

that

$209

penditures

international

roughly $2 billion,
hand, business ex-

other

riod' the Gross National Product

$365 billion of
goods and services Which were
purchased in 1958, employees
were

the

the

;nlnJf_e

the

the

of

excess

was

billion,
receipts over

change?

ever

Huf

lwo

On

ex-

$20

some

expenditures in
account

their

exceeded

by

"IIU

nnt

? ™°ad; if.>w tbSL

Tf

in
1X1

the
tIie

next
ueAL

period,
periuu,

all

and
<mu

if
n

expenditures in the next period could not exceed the amount
m the previ-

ous one' there would never be
any reason to change the level of

rise

have

in

have
tive

unemployment would
greater; and a

been

sharper

much

decline

set

in

forces

cession.

in

of

a

serious

re¬

happened,

would

government

cumula¬

the

more

this

Had

could

income

motion

have

the

had

take stronger steps to correct

to

this

fall

and

services

from
of

hair-

architects

Economists

have,

have seen, they both add
tp the Gross National Product
for that period. But the receipts
and expenditures of the various
as

we

up

What ought the role of govern¬
to
be
in
stabilizing total

ment

effective
years

demand?

ago,

it

tion

which

make

Twenty-five
generally ac¬

was

cepted that the

greatest) contribu¬

the

government

receipts

and
international

investments
account

is

in the
usually

quite small; but the difference between
government
receipts and

^enditures.
mav

may

show

an

net of transfer

ply-

large,

and

quite

be

unbalance in e.ther

direction.
For

the

,

:But,

Council

as

tried

Democrats

put into effect in the

,.T

3|°>

the Chairman of the
Advisers

Economic

of

.

..

.

■

investment,

or

the excess of goods

All

of

these

?nd. servicos sojd abroad over
foreign goods and services sold to
s;

agndggovernment

seeurities

.

_

so

a

Continned

on

page

matter

sold, this advertisement

of record only.

pUrchaSes of

Ip 1953, per-

801,31 consumption
amounted to

NEW

ISSUE

expenditures

$230 billion, govern-

and
foreign investment
outlays to $50 billion. Together,
these add up to a sum of $365
billion, which was, of course, the

3,000,000 Shares

and

^

vaiue 0f

ucf

for

The

our

that

Gross National

URANIUM INDUSTRIE?, INC.

Pi;od-

Common Stock

year

Ieyel Qf total

effective

de_

mand is a major factor in determ"
jning the level of economic activ-

Lwectit^/emand'Ys

rSng/

Copies of the Offering Circular may be obt lined from the

undersigned only in such States where they
pro

duction and employment will also

may

legally offer these Securities.

be

rising
because
businessmen
will
be finding it
profitable to
increase output; and when total
effective demand is falling, pro¬
duction
and
employment
will
also be falling because business¬
men

they
what

will

find

contract

output

when

difficulty
in
selling
they
have
produced,
or

Petroleum Finance Corp.
•

B"n''

Oklahoma

B'J'r.

City, Okla.

long

#

.

controversywhether

^^elf = £y l

having been

appears as

to

early thir¬

pointed out in Detroit not
-

1953,/ cbnsum-

example, in

and

cans

ties.

Jerm ^or1 whkh^is gross^prWafe
domestic investment; net foreign

can

to recovery

during a reces¬
sion was to maintain public con¬
fidence in its own solvency. Since
sectors of the economy do not
government receipts tend to de¬
have to equal each other. The excline
along with other receipts
penditures of individual consumwhen
total
spending falls,
this
ers tvpically fall short of them
meant raising taxes and cutting
receipts, with the difference renexpenditures during a recession;
resenting personal saving. On the
and many of you will recall that
other hand, the expenditures of it was exactly this type of a fiscal
businesses typically exceed their
program that
both the Republi¬
receipts. The difference between

however. found Tcon^enlent to
lump these different expenditures ments,

30^5^

tion

With

expenditures

ety of articles and

out-

depression.
.

-UmiM

LxLLLLTL W^LLnLLL ment purchases to $85 billion;
comba
g
a
p o o ged

in

local

thon

V1 piOQULllon
whv should it

times

goods and services.

ing he

strangely quiet.

itself

",Ph„ „'"n

astonishment, all during this meetwas

th

generated by produe

Whu

the

And

short of income.
It is
total effective demand at a
level just high enough to keep this that creates our problem.
the labor force employed for the
During any given period, total
number of hours and days which expenditures and
total
receipts
make up the standard work week, have to equal each other because,

thirties. Since that time, we have intQ four principal gr0Ups: expenbullt lrJta tb® J-c9"'0a,. gr^ ditures on consumers' goods; ex™any.
*aiS Jo?3 UnemDlov Penditures on capital goods, inment insurance
farm price sup- ?ludil?g husiness inventories and

known salty old character (I wish
I could

one

much

sitting

tell

But

all

de-

receipts

and

T

eco-

ments*can play in the pursuit of
xbls goal

d

Doesn't

ers'

penditures

situation. As it was, the effects
production, and there would be of the
stabilizers, the strength of
no problem of instability. But, as both
private and local public con¬
we ali
know, this is not the case.
struction, and European recovery
The problem of maintaining sta¬ Expenditures do depend upon in¬
made this unnecessary.
bility in our economy may be come, but not exclusively so; at
viewed as a problem of stabiliz- times
they can exceed, and at
II

a

which the State and local govern- time is, therefore, a summation ot
the

can

legitimate

application

an

at

say

credit.

before

like

our

banking

alll

bank

Finallv.

has

to

private

mands for

would

able

be

that

continue

we

J*
'-Vy1

effective

income?

Sh0l'W
;
problem of income generated

cyclical
little

I

brieflv

" g' to try to 6 d°mg S°
°Ut 0610 bring the
like

total

fall?

or

sac_ add these figures

Lt

who have taken the lead in setting
up
their own,plans.
I am also

t income

earned

There is, then, no reason to bejieve that the capital expenditures

ernment, and for which payments
are made in the form of taxes
and mv hat is off to the programs n°mic
stability , under the. Em- rather than in the from of market
exemplified bv
adopted in the Payment Act of 1946, less atten- prices
The total effective destate of Maine and to tiie banks ''"n has been
paid to the part mand for any given period of
that

why should

construction,
local construe-

tion.

cess

was

right

dash

Dr. E. Gordon

did

^when tbem.counter~cycBcally\
wnen

suggesting that the first recession.
Moreover,
with
the
wrong and the sec- sharp increase in Federal expen-

decision
ond

Fven

a

and

e

thirties
iniriies,

This could

can

that much of it has

way

d

a

different

oaby

banks

do not
banking

to

answer

other

in

hahv

but it has.

me,

certamly

and
this
tms

the

on

t

iso-

$948 million in

was

^omic stab.lllty

semi-long term field,
and
there are many
limitations
which affect particular. banks in
different

general-

both

bank's entry into

a

degrees
aegrees.

idea

hripf

factors

many

the

were

extent depend on the size of

the loan.

e e n

into practice

to

may

un-

nine-

it

purchase is

Similarly, at times when
demand is falling,

demand rise

represents

than

for

mand depend upon

1939, the monthly,, average for "
Federal, State and local construe- are
about

the competition

effective

But

isn

construction

new

tion

But

the

put

repay out of earnings.
I refer to
a
market for long term money,

be

Advocates advance

construction

pro-

as well as production and
employment will tend to fall.

rnrisirlprnhlv smallpr nart nf tntnl
considerably smaller part of total

the

thirties,
attempts to

long

public

their

prices

delay their application

not to

cen-

18th

tury.

fellow may be at a
disadvantage;
and that is a place to borrow

far

as

at

late

be, and, personally, I believe there
is, one area in which the little

the

total

tinn?

using local public
to helD Counter the husito help counter the busi

*

some

government in the

.

Tbs idea of

.hrnnu,

term

so as

stability.

of

to

have

drive prices
between what the

available

closed.

in the economic stabilization
program

daily contacts

fnmmc

such

limits

capacity,

services

MUO

to us,

and

business, and explains role of

planning of public works,

or large business.
My
opinion is that we will
get this question UUI U1
out of

politics; but in

the

firms

goods and

hand and those proposed

at

means

continues

business

and businessmen and
the government want to
spend and
the market value of the

Points out local governments should manage their
expenditures and receipts so as not to counteract efforts made

either small
personal

Reviews

influences

demand

after

reached

also

consumers

process.

in

pay

stabilize

to

or

again

to

for the expansion

manner

business recession.

the

stockholders

our

If

prices.
rise

ductive

Dr. Keith stresses importance of States and
municipalities set¬
ting aside reserves to be used for public works in periods of

busted

by

not

demand

up until the gap

as

on

tive

for scarce goods will

Staff Economist, Council of Economic Advisers

development

made

do

depositors

that

economists,

when they see their orders declining. The level of total effec-

13

Farrell Securities Co.
115

Broadway

New York,

N. Y.

28

U

(2762)

from

the shift in investment

•-

struction,' also
influence

eco¬

being, in the rate of the over-all economic growth. Notes

some

but holds
high rate of capital formation in Canada continues to be a
strong force in maintaining peak level employment. Foresees
intensified compelilion in Canada, both from abroad and
among Canadian producers.
close,

draws

to

a

mounting

to

indicate

year

slowing down, for the time being,
in

the

of

rate

over-all

our

eco¬

nomic growth.
The commer;

that

aggregate such as

an

National

Production

without

cialandindusg

firms within

situation

ditions

this

past year

—

or

industry and

an

con¬

between industries. But

as

what possibly has not commanded

is by no means

depressed

Gross

gional development and certainly
clouds
the
relative
position of

trial

attention

the

it

that

is

deserves

with

in

an expanding population and
growing labor force, it is neces¬
sary—assuming economic stability

fact, if it were
possible
to

a

draw

—that

of

a

up

balance

b

ity

a

surplus

move forward
growth, if cuv
living are to improve,

James Stewart

favorable side.
^

record
somewhat spotty pattern

called

reveals

government

activity with both gains and
Josses showing up in a number
of areas and in a number of in¬

declines then

or

warning that changes

a

.

for

in

both

business

are

and

policies.

of

The Agricultural

of

Situation

well

the

to

as

sued in the

conducted

be

must

pur¬

period ahead.

It is

•

generally, agreed that gov¬
ernment policies of the past few
-years designed to maintain some
/measure of stability in a grow¬
ing

economy

ful.

We

when

are

have been success¬
entering a period

now

business

on its own
strengths and
weaknesses in the market place.
During the past few years there
has developed a feeling in some

1

initiative,

circles

lcan

smoothed

'rected,

out,

the

On

measures.

hand,

even

cor-

various monetary

by

fiscal

fluctuations

business

that

be

felt

must,

the

test

and

other

skepticism continues to be
government in¬

a

to whether

as

tervention

can

with all

cope

un¬

favorable developments. In a

large

measure

solutions

will

de¬

pend on the kind and degree of
"problem to be solved. On us.as
tcitizens—corporate and individual
will

much

tion

we

Uernational
fare

we

depend

take

on

on

the posi¬

domestic

issues.

For

prepared to

pay

follows

year

in-

and

example,
the price

three

composition

of

timate that

of

age

the

revealing,

more

rated

consecu¬

The

story.
is

crop

even

witness the

as

es¬

substantial percent¬

a

this

year's

feed.

as

full

v.'id

crop

be

Manifestly, the dif¬

viated^ as
effect

ing

on

a result of this year's
However, any aaverse
the income and

becomes evident and in turn

affects, to
all

degree, the

some

consumption

months ahead.
of

purchas¬

of the prairie farmers

power

soon

pattern

to maintain
floors under prices that otherwise

would

be brought into line with
demand; do we approve of special

protection for special industries in
the light of our position as a trad-

bog nation?
atious

(the people
interested,

jective

These and other

issues,

concerning

the

with
the exception of flax, is down this
year.' Another unfortunate loss
in

occurred

Nova

crops,

Scotia

where

a

large percentage of the apple crop
was
lost through hurricanes.
On
the brighter side, the production
of most canning crops v/as equal
to

better

or

and

than

last

cattle

year;

hog marketing prospects are
and
the output^ of dairy

good;

In

dollars

a

of

decade to

dollars
more

purchasing

output—an
record

our

within

than double

leled accomplishment.
is

our

unparal¬
In inflated
of

course

dramatic—though somewhat

unrealistic.

Of

more

are

However,
food

up.

Although

consumption

and

should

remains

*An address

Tf8th

Annual

Lank

of

by

Mr.

Meeting

concern

is

Stewart
of

the

at the
Canadian

Commerce, Toronto, Canada, De¬

cember, 1954.




high
relatively

remain

stable.

in

the

that

during the

have

of

place

industrial pro¬

year in

duction have been
sult

taken

largely the

re¬

changes in the pattern of
consumption,

demand

and

foreign

investment.

Gen¬

erally speaking, consumer expen¬
ditures are tending to reflect a
shift
in
emphasis
from
heavy
goods

—

radios
rables

and

and

refrigerators,
the

like

services.

goods

has

tended

would

I

of

attention

draw

14%

about

Production.

of

until

years

has

continued

year

of

to

24%.

over

1939

a

level

at

was

during the

de¬
war

since

and

then

increase

each

high thi^

year

to

postwar

a

in

war

percentage

1946

At this stage an im¬
arises as to the

portant question
rate

of

capital

and

investment

to

necessary

growth

whether

we

that

and

s.eady

a

in

second

a

our

economy;

question

to

as

should

though exports of

raw

and

processed goods have been
well

the

sustained.

The

machine.

size

third

of

Bearing

in

domestic

our

mind

market

the competitive uncertainties
the foreign field, particularly

in
for

manufactured products, it
may be that for the time being.the
limits of capital expansion have
our

al¬

semi-

fairly

factor,

size

amination

of

hear

This

some

has

year

in

reduce

the

a

rearmament

a

conceivable

nor

soon

may

provements are necessary to re¬
industry to a better reten¬

s' ore thd

fields.

seen

some

shift

cost

minds

have

ports

smaller in

/

in

lower

in

value

from

the

United

United

been

8%

est

supoliers,

11%.
in

two

our

decline

textiles.

were

materials

and

in

al¬

crease

in

During the

be

the

United

Europe

ing

The

effected

be

trade that cannot

with

the

long

growth
If

character

to

flict with

commodi¬

Nor

demand were wheat
grains/which dropoec

for

view

centrate

lem.

much

that

attention

our

"Nations

shift

in

the

industrial

22%

of

v/ent

direction:

investment.

capital

into

of
-

a

capital

in

who

Whereas

expenditures

manufacturing

in

indus¬
of such

1954.

This

gains

made

in

other

categories
utilities (15% to

particularly in
21%) and the services.

well

expenditures
have
had their impact on

reallocation

of

resources

and

40%

of

the

Federal

budget,

period

smaller
the

a

tion

the United States.

.

bal¬

of

inout

as

Or to frustrate

organization

special circum¬

and, for us, this form of ac¬
would.vbe
for

^

I

inimica'

to. our

improved standards of

living../

Kingdom

•

r

form

Except in

desire

year

surplus

United

the

stances, protection, invites retalia¬

smaller deficit balance with

a

-

■

■"

-

■

r"' *

Canadians generally h**ve

given',

believe, serious attention to the

position taken bv the government

,

"

in 1945 to the effect that it would
More

It

is

Intensified
evident

period

intensified,
that

the

Competition

that

we

competition,

of

of time

course

yet

it

in

which

would

influences

to

are

become

may

during

continue

manpower.
Although these ex¬
penditures continue to account for
over

ard

a

with

ance

market

Defense Outlays

Military

with

ago,

is the result, not .of a

slackening pace in the manufac¬
turing industry, but of the rapid

as

more

million, $39 mil1 ion less than the clivity
like

exports

on

import prob¬
buy, or who

homely fashion,, any in¬
has a pur¬
chasing as well as a sales depart¬
a

dustrial

Thus, the-merchandise ba^nce
this year, in the first nine months,
was
a
deficit amounting to $187
the

con¬

in,.the final analysis expect to pay
in their goods,
Trade has* to be

v

deficit in

said

be

can

might "be prepared to buy from us,

ment.

this

ob¬

to

we

ignoring the

Utilities also show strength. These

witnessing

our

particularly in
goods.

there

is

the

while

.

also

of

imports,

manufactured

outflow.

are

rather

the

pursue

we

in

We

to

regard
run

position is to
because of the dy¬

preferred

viewed

ing share of total investment

I

run

well

year.

ijas a

economy.

try. both primary and manufac¬
turing. there is bound to be con¬

equip¬

increas¬

extent

other occasions

that

short

economy.

the

on

the

on

biles. to mention a few. .-Lumber,
ment
expenditures.
Strength is
expected particularly in tne serv4. wood pulp, aluminum and nickel
were slighUy above last
ices sector, which includes
year's ex¬
trade,financial and commercial services; port val ues.
v "•
"

an

ac¬

specific

jective of diversification of indus¬

the components of
aggregate
investment. Estimated capital ex< in the nine month period bv 40^
penditures in 1954 are expected to from a total of >582 miUion in
be
about
3%
greater than last 1953; and iron and s'eH nmdnrts
which were more than 17% below
year—a 6% increase in construc¬
tion expenditure and a ,3% de¬ last year — in particular, ingots,
crease
in machinery and
rolling mill products and automo¬

sectors have absorbed

foreign

our

support

the

namic

the declin¬

by

to

"protection"

in¬

and

and

consider tariffs

we

belief

my

foreign
other

by 5%,

17%.

forms,

certain

centers

recorded

than

same

States

by

most

which

have

oeriod over-all
exports also declined 8%, those to
the United Kingdom bv 9%; to
.

my

usefully separate

of foreign

device

only

an

several

except in

ignored

to

farm

the

were

showing
imports.
" ^ h

in

cannot

we

field

vehicles.

category ;

that

instances, the question of protec¬
tion
looms
increasingly import¬
ant/ One of the questions in the

and

fibres

products,

that

at

us

I have noted, compe-

as

arises

tivities

.

motor

in meeting the

upon

to* believe

me

domestic from

our

values

synthetic

sufficient

is

war

made

/ Since,

inc'uHng both raw
finished products

of cothon, wool or
and iron and its

broad

import

la¬

lead

since

Figuring most significantly

the

my

there

during the

fton

larg¬
about

down

were

are

market.

optimism is justified.

cor¬

Kingdom

States,

the

be unduly optimistic in

t'mands

Tme

though prices of imported floods
were
fractionally higher.
Those
the

changes that

place in

that

nay

cess

ex¬

the

by

revise

ingenuity in our business
;/ nmunity to meet the develop¬
ing competitiveness, yet our suc¬

responding months of last year.
In the first nine months imports
were

may

re-exam¬

tent

month

value than

it

cases,

necessary

the

taking

:..iOw

for

imports and

each

where

and

line with

in

economy

international scene, our
this year has fol¬
much the same pattern as

Both

other

yet

production and marketing policies

position

year.

relationship to competi¬

In

require management to

the

lowed
last

as

cases,

many

unit cost of the product
thereby improve its competi¬
position.
In other cases, it
be that technological im¬

tive

Canada's Trade Position
On

In

per

and

belief

trade

imperative that

possible.

as

the

enduring social order.

an

is

increase in output could reduce

an

em¬

basis

it

costs

plans be made to achieve this

war econ¬

a

1

.

productivity or other
conditions
can
be
improved to

ine

is

If

Where

think

this

sides of relatively
being detrimental to
present competitive
this be the case, then

be made.

tors.

that

re¬

We

effort to leluce costs must

every

conditions

all, for neither

neces¬

the

market.

Perhaps as
improve
reappraisal of policy will follow,
us

is

many

in

international

I

it

elsewhere.

prices

costs

ployment allocations.

ties

in

to

sales

tive

a

geo¬

commodities in realistic
on

high

re-ex¬

and

resource

their

as

competition to con¬
a* d hence prices, of

to
costs,

many
lation

the over-all economy

on

well

invidious,

due

sary
sider

should,

perhaps invites careful

and

been reached in

It

and

depend on
formation to the extent
machinery and
presently apparent to maintain a
I ood
products
steady rate of growth of the eco-'

capital

pretty

Fore'gn de¬

for disagreement.

increasingly-

looms

as

economies

expensive

and

the

to

of Gross National

This

clined Tomewhat

the

decline

most

price

In our country, where size

graphic locations makes price and
wage
comparisons
with
other

however, invite examination of
the impact of its present direction

this,

with

dealing

outbreak

the

non-du¬

manufactured
to

the

of

markets

of

investment

generally high rate of capital for¬
mation, which continues to be a
strong lorce in mainta.ning peak
levels of activity and employment.

freezers,

to

of

some

omy

1945, only 15%
expenditures are expected to have
taken place in
manufacturing in

Industrial Production

Shifts

would, how¬

aspects of electronic and aeronau¬

provides

been some

capital

Before

scene.

tries

mand for Canadian
{

trends

agricultural prod¬
generally
downward.
the level of domestic

domestic

managed

more

productive

buyers' market.

stable

have

is

which

thinking in the light of the

power7 we

ucts

vex¬

as a whole are vitally
call for early and ob¬

re-emergence of a

This year there has
shift

over¬

for

Production of most

principal grain

our

on

of

and

vary, exports of

be estimated; do we

can

below last year's

25%

Shift in Capital Investment

grain surplus in competitive for¬
eign markets is somewhat alle¬

jthe

price-supports

Petroleum out¬

levels,

nomic

products

price

almost

cut

ficulties of marketing a mounting

outturn.

I

bility that expenditures reaching

room

continued to reach new
peaks. On tne other hand, that of
primary iron and steel has been

sound

the

^for, "full employment"—assuming
favor

slightly reduced.

has

put

is

tell

been

in the manufacture

tain base metals.

tive years of crops over twice that
size.
Even
the diminished yield
not

has

inventories

production
has
been
very
will maintained tnis year.
Higher prices have stimulated an
increase in the production of cer¬

does

be

to

course

as

in

capital investment

Having

business

of

production

Mining

At

The agricultural situation th's
regard for the
year has changed relative to iasc
adjustments that are taking place
year.
The picture has been af¬
both domestically and abroad
fected in no small way by the
(and
their impact on
business
capriciousness of tne weather. An
generally and specifically) man¬ unofficial
estimate of a 250 million
agement well might direct atten¬ bushel
wheat crop for the prairies
tion to the policies within which
this

dustries.

tion

large.

about one-half of the total buaget
have tended to be concentrated

made.

between

as

firms and industries.

own

Bearing in mind the revival of
buyers market, the considera¬

a

military expenditures that

loreign imports, the vol¬

has been

neater

popuLtion

When, in fact, production

careful examination of the
a

of

rate

remains constant
this is

.However,

somewhat

be

the

growth.

the

on

should

than

tantial

s

we

the

draw attention to the possi¬

this

to

our

appli¬ tic engineering, so that in a sense
ances, and many iron and steel such '
expenditures
cannot
be
products. Production of nun-du¬ viewed as an accelerating force
rables, such as tobacco, Ciiermcais, in the over-all economic picture.
petroleum products and food, has This may well be our agreed-upon
generally been higher than that position in the NATO and North
of 1953, while output of textiles,
American defense schemes and on
rubber products and leather goods this level there
perhaps is little

the rate of increase in productiv¬

i t

show

would

productivity

relation

standards of

Canadian

conditions

au

in

sheet

kind of

countries, and second

of motor vehicles, electrical

b i a s—
unevenness
in re¬

record

cannot

productivity that
experiencing and

been

been

most marked

inflationary

an

increasing
have

Thursday, December 30, 1954

...

large measure to the

a

ever,

increase

with

—

in

due

initiated

was

This, I suggest,

ago.

durable
goods has declined in r e ee n t regionally, which in turn must be
months by more than 10% -from benefiting some areas to a greater
.1953# while that of non-durables extent than others.
has been only fractionally lower.
Moreover,
our
preparedness
The decline in production and the
program has tended to concentrate

shift in.the capital investment scene during last year,

is

is

program

years

have

of

ume

outlook, recalls that in last decade Canada has man¬
aged to more than double its productive output Says, how¬
ever, there is evidence to indicate slowing down, for the time

this

in¬

of

patterns

production.

a

tion

review of the

nomic

As

the

on

of the above
factors and tne growing competi¬
As

a

con¬

some

paredness
three

consequence

dustrial

STEWART*

President, The Canadian Bank of Commerce

Prominent Canadian bank executive in

residential

has exerted

and

stitutional

>Canadian Scene

JAMES

By

ex¬

penditures on plant, machinery
and equipment to commercial, in¬

Competition and the

evidence

The Commercial and Financial Chronicle

,

a

in

more

appeal

a

sellers'

past

decade

of

the

prevail

and

conse¬

quently have made adjustments to
competitive conditions - somewhat

three kinds of compe¬

foreign
some

markets, where
of

our

exports;

and-

appears

tt-at

the

invites

ex¬

of

climate

ex¬

amination and clarification. There
seems

to be

—small

or

a

belief that business

big—can,

does operate in

perfect

an

conditions

and

shouM,

atmosphere of

competition.

fact, witnessing the emergence

involves

develop

now

definition

existing

tition:, in

could

It

duction,

of at least

it

business

pand.

difficult to achieve. We are,

more

in

be the duty of the gover-ment to
maintain a climate within which

Because

of

of

pro¬

rra"s

geographic
characteristics, and growing elas¬
indigenous

ticity of substitution and the like,
are in
,
process of change.

we
*

outlays of this' present magnitude
have not had the distorting effect

and

that

fects

was

expected when the pre¬

first

in

the

of all,
of

domestic field,

there

.imports

are

where,

felt the

from

ef¬

foreign

For
now

example,; substitutes
avaiable

product

which

for

nearlv

once

are

every

o.fered

an

ahd

Number 5390 .The Commercial

Volume 180

Financial Chronicle

(2763)

we may be approaching a course have an important bearing
deficit position in our government oh the relative success of our
Bearing in mind the operations next year. However,
linen, jute and silk; other fuels finances.
for coal; and a whole range of burden of military spending, as disposable income continues to be
new ferro-alloys or alternate base
well as other "built-in" rigidities; high and there is every expecta-,
metals for the relatively few origi- should we be prepared to add to tion
that consumer purchasing

lor

.opportunity

monopoly:

that

new

Soviet Gold

synthetic fibres for cotton, wool,

nal

grades of iron and steel

Canadian

consumer

a

diverse variety of choice for goods
-and

services

netition

whirh

eivp«?

universalis

a

tn

com-

i t

that

;

before possessed.

never

turn

attention

our

the

realities

ductfon

uresent-dav

of

distrihf,tfnn

and

,Very ""J6 th°"Sht *las ^en f°"

We must

therefore

it

construction

the appearance of being so occu-

appear
that capital
should remain strong.
the longer view,

? c°me within the purview
§ f^'ir III6/1 supervision the
yarasticKs tnat are used

for

foreseeable

the
and

are

future,

jn

concerned

be

must

com-

public

and

^undue lessen-

difficult

only conclude that we
can, with care and conservation,
market many of our products
with considerable advantage to
ourselves. A growing population,

reasonable inter-

temporary expedients, and while
expediency has its place it should
Bearirg in mind our gebgraphic be a secondary rather than a
position, the pattern of present major
consideration in
dealing
population concentrations, and the with the inherent tasks ahead.
increasing
comnetition
from

pretation.

•

.

.

i

which

1955 Outlook

abroad, it is possible that certain
of

integration for greater
productive efficiency, lower costs,
and

sion

ran

est.

In

light of
-o--

mechanization
tion

advances

—

and

—

in

-

—

form of industrial plan-

some

ning

must

wise

rrremunerative

be

acceptable;

prices

tive

nrofit.s

San Francisco

;

Ronald

investment.
make

In

elective

If this yardstick were

action.

proving collusion.,

what
in

E.

The

issued

21 to the public, Ronald E. Kaeh-

ler, President of the San Francisco
be-, Stock Exchange, listed reasons for
the

the

useful

tests

and

"detriment

of

approval

of

gence
*;

Surely with the
a

buyers'

cunties

of

change

.an

amendment to

the *.

the

•'"jthe
f

but

; replaced with a realistic annrm^h
to competitive business
as
it is

idend to

conducted.

actually

bers.

Maintaining High Employment
We

hive

witnessed

th^^e

revival of the

a

^

past;

si^s

anv

idea th^

I..

of unemnlovment

buv

of

out

W3V

"fine^ exemf foT

result*®
not be

a

isolatrd
is

o'tenVt

world

sounds

factor

one

„ot an

and he^ce price

kto, not incidental tn.

a

our

I.'pt

keep

us

our

clearly

-^in^s that, in the main, the

] product

pavs the wages—the manufacturer acting as a middle man

the

in

.

♦r»nsee^on

^

paid out in costs of production is
determined bv what the
will

consumer

for the finished product.

prv

Manifestly, it is uneconomic in the
face rf a falling demand to
do
anything to increase nrices in the.
hope

that

reviving

cf

demand,

Surelv this is the time for realism
in

market appraisals.

our

the

Ex-

T'.T

at

0f

This leads
to

one

questions

to

me

of

of the

more

T
day,

serious

nameiv
to
namely to

make

approximately

we

of any indebtedness.In line with the increased num-

The approval by the Governing
of

Board

Gonstiturion

seat

amendment

an

to

auchoiizing

dividend

is

tne

25%

a

line with

in

t ^e

aggressive program of the Exchange to capture the business of
new

residents in

Revamping
facilities

s|ep

jn

AT

a

$100,000,'was
.,

,

Trc-f^}s,W^

what,

far

more

.

available in

Floor, w.iieh has attracted
of

visitors

to

,

tie

Ex-

way

installed

we

speaker

in

me

in

a

netw ark,

......

William

and

some

effort

achieve

some

be

made

to

predetermined level,

rmvmmmmmm

THirAro

w.dch

7

cf

.

tion of

methods.

Jt

www.

ill

CHICAOO,

now




appears

only

on

one,

of

...www.,

KiHHpr

f
wiwuw'

1]'

anrf

nth^r

nprtinpnt

p

v

h

new

Peat

^Hibben L

Now
-

Tbe

infnrma.

firm

a

become

diverted

are

to

the
men

gold

pro-

<

■

Mr. Erroll's

explanation ii
that by producing and exporting
own

Soviet

Government

caxi

get more value for the effort

ex-

pended than it could obtain if tho
effort

extra

same

g00(js.

and

Possibly he
It

Dianations

other

be rigid

may

must

fee

used

were

exporting

L

borne

LJSi

^

in

whether

m^n<^ ^ba^

the

the

importance in the Soviei

same

Union

as

rn

US.S.R.

the

bv t

owned

countS

capitalist
all

industries

aw

government' and

ie

>

is quite conceivable that, for con i
giderations of policy, the-govern.;
ment is prepared to work somo
indtistries at
iu.i

difficult to ob-

in

a

loss.

It is

possible

£

a

purely financial point;

of view, it would be more advan
tageous for the Russians to
centrate

on

con

other'industries

•

tbn

^ain- It was assumed that the ex- extra driving force that is noi/
ploitation of gold resources has concentrated on gold mining,
been resumed but nobody was in ' The effort to increase the gokl
a position to form any idea about output may have far-reaching
the Russian postwar output. In- economic or high political mo deed no information was available tives. Possibly Moscow wants t<)
until quite recently even about build up a large gold reserve, rethe broad outlines of the policy gardless of cost, because the pes;
pursued by the Soviet Govern- session of such a reserve confer!

mu"t m this sphere. We did not on its owner political and ecoknow wh^heyold production in nomic
priority, that is,
^

is

it

official

the

stimulate

it

policy

relatively

or;

an

article in the current issue

monthly magazine "The Di¬
rector" which has just appeared,
Mr. F. J. Erroll, a Conservative
Memb°r of Parliament who visHcd

Russia in the Autumn
of

as

member

delegation,

Parliamentary

a

some

attitude

towards

duction.

Mr.

by

:ctor of
direbtor of

gold prowho is an

proiession
a
a

Pa"y. Paid a
near

Erroll,

and

is

a

gold mining com
gold mining com-*

the United States f-j
.
.
•
slight degree to the pes i
session of the world's largest gold
reserve.
Conceivably*the--Kremlin
may entertain ambitions to pursuu
a
"ruble diplomacy" to rival th j
"dollar diplomacy."
prestige
^
: 6

due in

Such

Sverdlovsk.

He

came

back

P

ambitions would

be

pe>-

fectly legitimate, provided rhry
remain confined to constructive

It am
unfortunately necessary to bea:
in mind the possibility of more
sinister motives. The possession
of a really substantial gold re*
serve would enable the Soviet

tasks of financial assistance.

Government

visit to a gold mine political

strongly impressed with the high
degree of priority given to gold

o,

no

not

allies

only

i

abroad

to

secure)

througu

bns

granting financial assistance,

also to embark on mischievous fi»
nancial and commercial operr*

production He found the equip- tions that are liable to disturb tl,)
™,ent UP to date in every way. international markets and may
Tneaer'ehieZ
tS*nMwZeven threaten economic statiliry
was'evidence"of an'intenlor
3350^ sive drive to produce more gold, and prosperity in the free world,
This contrasted sharply with what
To be forewarned is to be fo^; r
un-

Corporation
•
of

Degaetano

York City, has been changed
to

of

more

even

found

which had

name

which

that from

in-

man-

business and

" Securities Company, 37 Wall St.,
,

tasks.

h^s

he

it

'be moment they reach the
Floor.

th£

Pea

111.—Kidder,

the Floor,

making

possible to broadcast bids and offp.rc

the

question of costs enters into
consideration as well as the ques-

of

end

engineer

one¬

other

War,

sian

partments of member firms. We

instead

to

Kidder, Peabody & Go.

broadcasts cirect to the order de-

ing 10 microphones

to

remarkable facts
throwing light or the official Rus-

ciark Street

is

the

published

Tel. & Tel.'s engineers were able
to improve the system by install-

terms,

Assuming that

should

Titus

A.

partnership

Ler

numerical

this review.

-

To Admit Jos. Kibben

.

.

Since

In

Broadway,

.

baum

.

diverted

of the

Jan. 6 will admit Alfred W. Klein-

..

The^ manpower
an^ Reductive capacity the War
used_on
before

speaking to neglect it.

Admit Partners
Wertheim & Co., 120

equipment and the best

en-

durTns

other

many

without

®

to

Weitheim & Go. Will

'Ms innovation. Midwest having

time than is available to

widelv

was

understood

was

Government was receiving from
hie United States and Britain, free
0f charge, everything it needed
for
pursuit of War it did not

whether

«...■■

_

i-i

Gahery a tape-recorded
telk on tne operation of the Traclthousands

_

New York City, members of the
the first New York Stock Exchange, on
cost

this program.

.

_

area.

at

year

.

...

are not tne first Exchange to make

high employment would command

It

memtersh^p mont y dues

would oe reaucea Dy zu /0.

Floor Trading

t e

last

of

excess

the

her °f

pTepared

'be

the

to

oj Mr. Kaehler

follows:

SMKS ada-ptTdinnYfei-go™;^
of

$18,500

The Exchange remains in a strong
iinanciaI position, seats having a
Cash value in excess of their selling price. The Exchange, in addition, owns its fine building free

-essed policy

what extent must

distribution

total

a

ltS cur7?nt t0tal °.f 6f4 ° ?° n\lm~
bers. The consent of not less than
tw?-'htrdS of all,members is req7're.d to make the amendment

Recently

brief refer¬

a

the

in*-1053

dividend

cash

WOuld

the

plus

dividend,

seat

*

$17500

iV

ence

the world's largest

as

Droducer

visaged

do

"place oFthe "UniorT'of burthenTare^otW

the

south Africa
gold

eventually

formation from Soviet Russia

membSSSpTn'the'"two years"

cnange.

Policy

Employment

High

take"

was

approximately $4,000.
The

best

that

mean

must

producing

might

memberships should sell

new

industries

abe?d a"d the possibility that the
Soviet
Union

seat,

a

r°m

—thl ef£ectlve'
'
can!
The statement

It
we func-

economy,

rconomv.

prosneri+v.
in

activitv

ef'ert.on prices

said too

in

tion

downward

anv

in economic

trend

Kaehler

E.

-•»

The

collective^T^can

of

we

additional

seats will be available.
Based on the last sale of

necessarily

gold the

Exchange., members 16 additional €0ld production

ac¬

membership
Ronald

"

^ar ^ie amount

a

16

tions, for the high priority given
to the gold mining industry must

duction.

iTL^u^ri^membershin If think large scale. toproduce gold
* necessary

the

This

crease-the

pur-

nerva'fve^Doroach'Vo 6r«ned"^nff

mem¬

tion would in-

•

,

few months

spat rlivseat div¬

25%

J

seats

tion

t i ng a

gx a n

of

lack

of

because

constitu-

gam z a

f

sellers' market philosrohy will be

formed

been

have

to serve the increased population,

tion of the or-

re-emer-

market,

tup
the

number of memberships. In 1933
had 75 memberships. Today
the number is only 61, although
the population in Northern Cali-

firms

ment's attitude towards gold pro-

output, was
closely-guarded secret. It was
known, however, that tne production of gold in Siberia was going

curing t is period. Many new se-

E,x-

tne

large

a

we

"

public."

really

gold reserve^of the U.S.S.R.

erning; Board

.

more*

to

world

and that of the annual

;nprpaQp
increase

fn
to

wanf
want

we

free

before

of

V ir

unnecessary

light, of other

the

Wby the G o v- fornte- has -ore than doubled

]

seems some¬

a^d

to unload

quantitles of gold.

for the 25% seat

reasons

Mnw
Now

Dec.

on

J'

elnm™*lsl? fael in a pos^lon»
should it wish to do

Exchange Plans Seal Dividend

uld

w

present approach,

un^Rlistic

iuau

Kaehler, President of the San Francisco Stock

statement

a

happier relations
industry and government.»
withou* inte^feri^pf with fhp,r?cfht '
of

me

ahead,

Exchange, issues statement giving

-

of

roi

the r^la-^

on

on

for

tween

wen

a

Jfhat is whether the Soviet Goveverybody would like to
know

road

dividend, which has been approved by the Governing Board
of the Exchange.

of mohonolistic

f^quently anplied, it

more

v.

,

nbtamed

augurs

in

gold,

fore-

the

for

on

reduced employment—
of, which
are
desirable»

practice ^urely ennters

well

so,

wages and

.

S1§ni

both

competition

with

thp

in

augurs

may

iness operations result ih lowered
neither

sight

at home and from abroad will of

Unprofitable bus¬

ends of policy.
The question

nrnhlpm(.

react

we

g0jd production is less obvious;

duction, so that we now know for
evena facf {hat
Moscow's policy
more
about to make an effort to increase the
their
future
g0id output. This is bound to enintent ions. tail
some sacrifices in other direc-

Dr. Paul Einzig

other¬

follow which would not be in the-

public ;nferest.

how poorly

What

priority given

and

met

successfully

understandable.

Mr. Erroll has now cleared up the
mystery about the Soviet Govern*

Gov-

selling

problems in ine past wim 10re

or

have

we

easily

iies behind the high

m-

ernment

methods of distribution,
The challenges indeed are great;
that

reason

1.r e d_t h e

markets and requires new or ad-

.

mo-

that

Soviet

vanced

to the growing

produc-

mass

tives

v

for

giving the milltary aircraft industry high priority

s£ exSiatl0n is

about the

This,

objectives.

our

The

is st 111 much

?
•;

amongst other things, means new

How well

competitive posi^xist in the public inter-

the

of

ficient production."

labor,

Over-all I would suggest that
the next 12 months will record a
continuation of the spotty pattern
that has been evident this year.

imoroved

tion,

growing

a

some

end

an

time ago, there

force, demands a continual revi-

,

forms

means

came

On the other hand, he found tb»
jet bomber works he inspected to
be "a model of up to date* and ef-

to

can

one*

Even

though it
-

frpm these situations must be
met with something more than

J:on}pe^orl" are tenuous
of

m?i

and

„

world-wide

Blessed as we are with an abun-

arising out of renewed

longer considered

no

interest.

..

dance and a variety of resources,

ment

diplomacy."

Russia, it is

London and other bullion markets m their production the best men
during 1953 aroused considerable and the best equipment available,

developcountry.

f.
re-examinat-on. Consid- petition from abroad as well as
e*a+i0I^S
>,as t° th® detriment at home. The problems arising
or the

The sale of

—

large quantities of Russian gold in important in Moscow to employ

,

and
the

continued growth
ment throughout

w|tj1 seasonai unemployment; we
are
concerned with unemploy-

require

LONDON, Eng.

I look for

We

^

,

rival the "dollar

investment

ied

con-

f,nT,0 in

industry

political motives, and holds it is conceivable the Kremlin
entertain ambilions to pursue a "ruble diplomacy" to

may

would

already fully occupied and gives

practices should

and

to cal1 for Public works at a time portunities should continue to be
when the construction industry is favorable and particularly m the

t>ro

nc

Th\1^ suggests ^arcadian economy,
that while restnctrade

Einzig discusses questions regarding Russia's gold pro¬
duction and the impact that a large reserve of Soviet gold
might have on the international situation.
Says Russia's
effort to increase gold output may have far-reaching economic

Investment op-

industries.

than lary

£lven to this problem other

to

This
tive

By PAUL EINZIG

Dr.

this burden massive public spend- will remain at a reasonably high
inS to provide employment, un- level.
Meanwhile,
technology
less' as a mbiimum, it can be jus- combined with the continuing de-tiffed on the grounds of adding velopment of resources suggests a
to our productive potential?
steadiness in ^the rate-of expan-

The

has

now

15

Degaetano Securities

Corp.

stance,

he

—

in

a

low priority. For in-

armed. Now that we know what
the Soviet Union is doing in tha

sign of any

sphere of golda-K
production, the De)
--~
n.ci,{

some

found

——

other factories

no

—

n

special effort to raise output in a world is in a better position
j
plant producing diesel engines, be prepared if Moscow shcud,
and concluded that, as it is now misuse the power represented wj
possible to export such engines to her growing gold hoard.

16

(2764)

The Commercial and Financial Chronicle.. .Thursday,

into

New Faim

Policy
DON

Financing

Farm

U.

S.

Agriculture

spokesman outlines
Says the new flexible price

shall

endeavor first

inter¬

to

situation and enumerate the safe¬
guards which may be used in an
tain

an

all

over¬

level

economic

tivity

If

and

rea¬

on

Don

some

from

without major deflation.
With World War II now

past and

with Korea

more

high plateau.

Investment

is

still

construction

activity is at
record levels, and the percentage
of the population which is em¬
ployed is still above its peacetime
norm.

Sharp deflation followed the
Revolution, the War of 1812, the
War
Between
the
States,
and
World War I.
In each
case,
it
Orried prices below their prewar

Ryel.
This pattern, laden with
disaster, has thus far not been in
evidence following World War II.
Those who
prophesy prices and

•

activity

charts

of

poorly

during

the

Economists

by
past

the
the

of

reading
have
past

the
done

decade.

newer

school,

who watch aggregate income, sav¬

ings,

and

investment, have done

somewhat better. Perhaps the best
record

during

far

so

the past

years,

predictions are con¬
cerned, has been compiled by po¬
liticians

in

of

whichever

party

fairs

economy!

Does the experience of the past
decade mean that we are in a
new

for

era, that
fiscal and

deflation
tion

are

would

with the new tools
monetary control,

and

longer

no

be

economic
a

rash

a

contrac¬

threat?

This

conclusion

in¬

deed; it was made before, during
1920, and was proved to have been
in error.
But
say,

it
as

would
some

be

equally rash to

do, that nothing has

been learned about

stabilizing the

economy during the past 30 years,
.that the historic pattern of postwar
deflat:cn is merely delayed, and

that it is

June of 1953, signs

economic contraction

began to

appear.
Prices of raw materials,
including farm orodu' ts, had been

soft for

some

time.

This softness

the

its

af¬

of

state and

in tax

managed

local
a

bor¬

firms

business

the

and

governments.

reduction

made

was

effec¬

The contraction

halt.

leveled

Industrial

off

at

the

Nineteen
second

the

past

will

be

the

exceeded

only

by

will

one

the

be

ever

able

effectiveness

to

of

our

*An

address

Sevenih

sponsored

sociation,

by

Mr.

National

Paarlberg
Credit

by the American

Chicago,

111.,

Dec.




Bankers

16,

As¬

1954.

LI

.l.ULililV^'

with

'b

number
tools for

any

increasing economic
been greatly in¬
that the compulsion

and

ingly increased.

It would follow,

opinion,

that

fear

flation

such

was

experienced

during

the

my

as

30's

one's

need

of

longer

no

business

de¬

judgment.

Economic fluctuations

and

defla¬

tion

undoubtedly will continue to
plague us in the years ahead, but
they
with

those of

and

be

likely to be comparable

are

of

1937-38, of 1948-49,

1951-53.

There appears to

justification for the hope that
shift

can

without

ing

from

major

of

price

to

war

deflation.

levels,

peace

Speak¬

we

can

say

that what goes up need not neces¬
come

The

for

considering the

prosperity

depends

to

in

agriculture

marked

degree on
prosperity in the general economy.
banking practices
Inflationary periods are generally
were
widely blamed by farmers marked
by agr'cultural prosperity;
for the deflation

averted.

Bankers

and

of 1920 and 1929.

In

judgment,

my

banking

bankers

pratices

have

and

been

in¬

sufficiently praised for helping to
avert deflation during 1953-54.
experience

months

suggests

of

the

that

past

there

12
are

tools in the kit of economic

many

stabilization

and

willingness
look at

to

some

that

use

there

them.

is

Let

a

deflation

of

consumer

been

most

income available for

This

tool

has

available, but it

involved

relatively

and there

was

it.

use

In

unbalance

cause

of

the

general

always
previously

small

sums

level

of

twenties,

for

distortion

a

When the

prices is

reason¬

ease.

and

have

stability

is

major

a

this

overall

but

is

related

goal.
about

which

farm

past

20% of the gross national income,

"What is to be the role of market
prices in guiding the production,

tax

revenue,

or

relative
can

to

Federal

greatly increase

decrease the amount of
money
the hands of consumers and

hence influence
nomic

the leygl

activity.

Direct

intervention

of

eco¬

'C
in

various

I

of

introduces

11 immi>

'IT"'*17".

believe

it

in

is

the

commodity exchanges
a
degree of stability

The

of

will

be

excesses of the
market price system would be re¬
duced through overall programs

for economic

derstand

lieve

stability.

•

>

it, and repair it.

that

system

if

and

how

I

be¬

understood

we

the

it

operated,

we

would be less inclined to criticize

it

and

less

likely to

it burdens which it

tended

place

was

upon

in¬

never

to bear.

-m

un¬

supply

can

we

v

about agricul¬

say

tural prospects in the kind of sell¬
ing I have described?

The

the

system

excessive

excessive
There

rigidity
through

fluctuations.

is

most

on

to

reason

matters

judgment

Our

economic

analysts in the
Agriculture have
forecasting farm prices and

Department
been

of

incomes for

than

more

30

years.

of

a

pert.

If

the

is

error

public,

operating in
ket, will correct that
first
to

that

aggregate

163-million

an

Ameri¬

made,
free

a

previous

decisions:

slower

still

to

ouUof four, and when you
figure the hazards of forecasting,
that is a pretty good record.
Our
analysts tell us that consumer in¬

available

mar¬

1955

are

rise

slightly

admin¬
an

error

will

Regulations tend to reward peo¬
ple equally.
It does not neces¬
sarily follow that this is equity.

Cutting. wheat production back
30% may give equal treatment to
farmers in the dust bowl and to

in

at

or

levels.

be

Business invest¬

down

moderately;
1955, economic activity is

but for

expected to
rates.

hold
1954

activity is expected

remain high.

ment

spending

to

above

"

at least at current

run

*.;; -V?

■

Price supports for wheat will be

reduced from 90 to 821/2% of par¬
For the other five basic com¬

ity.

modities, price support will

it.

correct

for

expected

Construction
to

regard

an

istrator is slow to admit

the

at the

error

opportunity, without

and

times

comes

believe

is superior to the judgment
handful of men, however ex¬

cans

of

often

problems
price

the market system does

tinue at

or

parity.

Farm

expected

con¬

slightly below 90% of

to

income

in

1955

is

to

close

be

that

of

1954.

In the long run, the prospects
for economic growth and
stability

to

<

be

good.
By 1970 we
may add close to 40-million food

farmers in adapted wheat regions.
It does not follow that such treat¬

appear

ment is

consumers

equitable, b

Besides
doubt

all

that

to

\

,

this, there is

the

fair

to

main

say

that

under

a

history

or

charged

shortcomings.
to inflation and

has been shown.

Sometimes it works very
slowly,

grave

regulations

provide

high

neces¬

of
price support could be really ef¬
fective with the degree of regi¬
sary

mentation

will

that

levels

American

people

tolerate.

to our population.
*
The scientific and technological
frontier for agriculture is being

which

gram,
83rd

farm

passed

was

pro¬

by

is essentially
"middle-of-the-road" program.
is

based

free

the

on

and

institutions

responsible

of

It
a

agriculture.

time, it will

same

a

pro¬

tect farm people from the excesses
of the market price
system.

our

to

is that it marks

me,

in

significant thing about
legislation, it seems

farm

new

direction.

toward

tion -has

The

been

A

set,

freedom

in

ually

this

rather

For the

far

as

and

of

responsibil¬

We will pro¬
direction

than

with

several

level

new

limitations

price
on

and

limited,
sup¬

acreage

concerned.

Nevertheless, the
are
important.
Billy
Sunday, the evangelist, once said
differences

he

would

Hell

than

and
a

will

rather

headed

be

a

foot

away

from

from

it

mile off and headed toward

it.

least

fast

as

as

permit
of

use

to

us

make

scientific

our

knowledge.
There

harassing diffi¬
agriculture
and
major adjustments that have
yet been completed.
are

culties

some

facing

some

not

But

if

this

analysis is right,
be many opportunities
agriculture in the years ahead.
"Depression
psychology," which
developed during the decade of
there will

in

the '30s and
ever
a

farm

those
On

is reawakened when¬

soften, will

prices

guide

poor

who

farmers

for

lend

to

money

be
for

or

them.

the other

and

hand, overfinancing
on
unadapted enter¬

loans

prises

will

borrower
ways

be

lender,

advance

agriculture

burden

a

arid

been true.

The

the

years,

the

of

grad¬

at

ing toward the economic freedom

haste.

law will be

the

direc¬

direction

a

between

the old farm

new

and

new

next

differences

so

change

a

rapid drift
regimented agriculture

a

back

which

the

Congress,

But at the

pushed

the geographic frontier was pushed
back 100 years ago.
We are mov¬

broader

The Administration's

port

But this sytem has been
with

as

for

difficult

as

through

of

spot-in geography.

deflation,

regulation

interacting

regulated

causes

thus:

consumption

excelled at any time in

il vulnerable

We

They have been right about three

are

|mportant

the

stated

ductive plant has turned out an
abundance of goods which is un¬

It

and

during these

system of prices established
freely
in the market, the American
pro¬

Regulation of the stock market

otherwise

and

be

products?"

operating

any

helps

may

distribution
farm

to check what might
become
a
downward

fields

has centered

years

abroad.

a

demand.

ity for agriculture.

policy

expenditures,

and

ceed

issue

realistic

more for the market,
for
government ware¬

and

—

over

—

that

substituted

greater

separately

less than 5%

$71-billion, a truly massive
Changes in the amount of

is

viewed

ample, Federal taxes represented

or

clear

has been checked.

to

producing

More

markets at home

open

as

What

economic aim of this Administra¬
tion.
Farm
policy is not to be

The

sum.

not

certainty

—

growth

disturbance

The most

obvious from what I

said—and from what you have ob¬
served
that overall economic

ex¬

of the gross national
income. In 1953 they totaled about

cision

II

is

slowly

more

uncertainty of administrative de¬

Inflation

ably stable, necessary adjustments
in agriculture occur with relative

little inclination to

the

and

price structure.

of these tools.

the

spending.

disastrous.

us

important is
borrowing and taxing policy as
a means of
increasing the amount
of

is

brings windfall profits; deflation
brings underserved losses. Both

It

One

a

overproduction

-

prospect for the economy

was

is

down.

reason

that

less

It

of

them has been correspond¬

use

is

major deflation

case,

effectiveness

have

creased,
to

and

make

really decreases uncertainty.

as

.'

I conclude from this review that
the

well

as

for

lessened.

be

prices will

period of years.

In

prices falling, there
only
two
occasions
failed to turn them

-

overall

before

Conference

level;

down

In

with

will

only
two
occasions
when people failed to maintain a
party in power on a rising price

sarily

the road.

voters

deflation.

been

fiscal and monetary policy
during
1953-54. No one knows what lies
the other fork of

that

price support

a

passed to stimulate

was

attempt, at one leap,
changes which a free price system

public

presidential elections since

have

we

1953.

year

No

below

for the Ameri¬

year

economy,

measure

10%

it has stayed for
nine
months.

fifty-four

best

production

about

the peak, where
about

brought to

was

elected

severe

Incentives

will

prices.

sometimes

would

price data became available, there

becloud

tive.

a

to

>

in

half billion dollars!

of

fact

tolerate

not

the 31

re¬

spiral.
the

the

the

were

facilitate

to

as

rowings

in

inevitable.

In May and
of

so

was

who, untrained in eco¬
nomics, simply predicted greater
and better t
ings for the Amer¬
power,

ican

requirements

Treasury

The

10

as

officials

stability

The

can

business

thereby increasing

of member banks.

duced.

than

a
year behind us, the gen¬
eral price level is still on a fairly

mind

that' regulation

for market

production for that emergency.
Sometimes regulation works too
rapidly.
Administrative
rulings

important, there is written

the

OUt.;:"

Seven and

nine

More
into

proposals

substituted

law which

general welfare."

they

reserves

vv^

peace

the

calculated

manner

a

paths of in¬

Meanwhile, the

these difficul¬
impressive. ■ They have

World War II with

Act of
1946,
mandate "to

the

competitive enterprise and

been

Reserve

to

war

in

.

.

have

capital in agriculture.
■

.

some

the

By thus repairing the function¬
But
such
regulations lead• to ing of the market price system,
other difficulties.
we may preserve it. ;
Regulation too works slowly. C' I am sure that we will not pre¬
We operated for nine
years after serve this system unless we un¬

employment,
production, and purchasing power
foster

to

be

maximum

promote

re¬

■'A;*■'

are

led

includes^

written into law

now

provides

when

securities,

regarding the use

i

which

lion of United States Government

Paarlberg

The nation has hopes of making,
for the first time in history, the

is

Employment

months, the Federal Re¬
System purchased $1.2 bil¬

serve

interpretations

high,

degree of prompt¬

a

and

In two

from

back¬

years

re¬

vigor for which there is
no
close parallel in our central
bank history.

Finally, I shall
attempt to

transition

this

Reserve authorities

sponded with
ness

ministration.

of

have

and

Federal

farm pol¬
icy of this Ad¬

ground

could

or

might easily have
developed into a
major deflation. But it did not.

the

this

in

that

at

It

snowbaled

setting, I shall

draw

in¬

counteract

to

downturn.

this

comment

would

done

ties

credit controls of the Fed¬

There
the

to

forces, and

In the aggregate,

the

to

eral Reserve System.

1923

was

addition

In

works,

tional

intervene
it

as

groups.

accelerated depre¬
ciation lor defense plants, control
of exchange rates, and the tradi¬
public

up.

been

to

affairs

time, little
been

factory levels.

had

year

at the

weapons

items mentioned above, it

1953, with the knowledge

inclination

.

economic

satis¬

Within

the

stead of

of

a c-

at

sonably

began to creep

indeed.

able

slowly spread to finished goods.
tightened, industrial ac¬
tivity diminished, and unemploy¬
ment

of

disposal of government is formid--

Credit

effort to main¬

arsenal

opportunities

remove

from

price
of the

.

,

The

by banks in making farm loans, and concludes prospects for
economic growth and
stability "appear to be good."
I

these opportunities are not equally < and
less
available to all individuals or all houses.

are

of

to

year

levels

ternational trade.

strain the free market

'

levels of price support will remove some of the road
blocks
of international trade. Lists
techniques that should be applied

pret the present general economic

support will
roadblocks

which may at times
be a poor measure of one's eco¬
nomic contribution.
There

from

moderate

second line of defense.

_

moderate

more

changes

More

and penalties

brake

a poor substitute for a job.
nevertheless
provides a helpful

-supports v.ill. facilitate shifts in production and utilization in
line with supply and demand

changes, while

year.

though

'

Department

farm policy of the Administration.

demand

price supports help apply
to a price decline in
agriculture.
■
'
1 Unemployment
insurance,
the

After giving an interpretation of the
general economic sitnaiio*
and the safeguards that
may be used to maintain economic j'

activity,

utilization in line with supply and

our overex-

pessimish hits our commodity ex¬
changes.
The system establishes rewards

perienced in 1932-33.

U. S. Department of Agriculture

shrinking back

Sometimes it works too rapidly,
as
when a wave of optimism or

makes
practically impossible a
banking debacle such as was ex¬

PAARLBERG*

in

as

panded wheat production.

.

Assistant to the Secretary

'

notoriously suscepti¬

area

psychological waves of op¬
timism and pessimism.
Federal Deposit Insurance

And Farm
By

an

ble to

December 30, 1954

both

to

as

has

al-

■

of

technology

in

increased capi¬

means

tal needs for farmers in the years
ahead.
You bankers will suoplv
much

of

that

capital.

opportunity to do
to

yourselves and

so
as

There
with

service

a

is

profit
to

farmers.
I

should like to leave you with
thoughts about frontiers of

some

farm

which

credit,
are

some

not

credit

now

needs

adequately

serviced.

Modernized parity will acknowl¬
edge what the market is trying to
tell us about long time shifts in
the supply
of and demand for

basic crops.
Flexible price supports will fa¬
shifts in production and

cilitate

One

frontier

is

intermediate

\

for the financing of pro¬
ductive livestock, machinery, re¬
modeling, of buildings, terracing,
credit,

draining, and other farm improvements.

In

many

cases,

these

|

are

profitable projects; but they yield

\

Number 5390

Volume 180

their return

slowly,

'

over

...

The Commercial and Financial Chronicle

num-

a

ber of years.

They will not yield
which will repay a loan

returns

which will match the supply of
labor and the management skills
available on these farms.-/There
are

.lender will choose not to

with

loan

one-year

from

ers

would

Here is

vantage.

their ad¬

to

place for lend-

ability

Another
of

frontier

agricultural

'i banks. 7 These

men

to

This

borrowers.'

guidis

being done with profit by
and

to

As

now

many

the size of farms-in-

as

decreases/shifts
;

imagina-

met with

are

It will not be dertone and

techniques will have to th

be worked out, and some experimentation - undertaken.'r But the

should

,have

It

pat-

means,

farms

.income

^

capital..ture.

to

access

V..-j

v

in

age did cross the line by a
couple of pennies on an intraday basis, which is hardly
valid. But the repulse was

mar-

share

the final

year

as

once

it appeared

th_ vear_enH

t

% ■...

solw had

^

;•

.

•

,

,

•

f

jn

clearing

e

*

been

L

""

~

The

-

:•

opinion

/chasing agents to

of

pur-

the

comprise

Business Survey Committee of the
National

air

and

a

ou^

almost

the market

confidence which reflects the c-z-

of

out

were

inoopo

pectation of a very happy Nn.7 short

OA

the

chart form takes
blance

of

on

the

On

for
in

and

the

sem-

of those

able

im¬

to

by two points

or more

few hours' time.

a

The ap~

of Lowenstein,
Hart, Schaffner & Marx,
American
anese

Viscose

the

on

together

concrete

was

of

dence

and

this

Cel-

highs list

new

evi¬

attention

new

being paid to what is prob¬
ably as depressed a group as
any of the major ones around.
Eastern
to

railroads

a

under

York

Baltimore

Central.

Ohio

continue

good play, largely
the leadership of New

get

&

and

Pennsylvania were
able to ride along enthusias-1
tically. For Central, however,
the 1946 high is posing some¬
thing of a resistance level
and
the
chore
of workingthrough it has been a some¬
what lengthy one.0

Among the special issues in
independent demand," W. R.
sustained Grace, which is not an old
name in organized stock mar¬

the serious

the

students

one

able

'

jet-propelled

a

To

cension.

had ket

way

interruption
months

16

py^pnt^thnop nf^thp strength is iar

sellers.

Year.

the elections

once

serious

on

were

pearance

all

of

eaebL11Pylon

1,

,

feeling that*-the re was
to be absorbed
from hpdders r e g i s t e r i
lpsses.. The. spirited ascent of

an opinion anticipate continued improvement in general
"Vbusiness.
;/;-v %.I'1'." ■'

composite

the

•«. '
fabulous. The industrial averyear-end picture had age has added better than
clouded one this year. 40% this year. More impor-

littld ^selling

Survey Committee of the National Association of
Purchasing Agents reveals 90% of purchasing agents ventur*
:

mark

the

On th^-one hand, was a gen- tant, the rise has been with-

i

Business

ing

seers

fu ^
?
doubts, the market pre-

eral

/

the

i

„

.

Purchasing Agents Definitely Optimistic
v

help

to

diried up, buying broke out in pared for a-routine windup to
is there.
Through en-, sufficient force to post a new $ year that comes close to
scU-intorest, ^private historic, peak for the indus- earnine
the
descrtotion
of
<

enterprise.
/low

/some

its

Qi irregularity. but none ot ability to reach
this impaired the robust un- subsequently.

needs, with profit, if the

of

problems

+

that

than

list

prove

techniques have been dressing appeared in many is- prove their :p o i n t, statisti-

,

livestock

a

■

the

*

SeVeiaSl^ca'Zeefmany sfs and contributed periods cally regardless of the list's
these

with profit, and at the same time
perform a real service to agricul-

the

STREETE

tax adjustments and portfolio enough

real; and

are

challenge
tern Of agriculture. (This means Tightened
Xhat-some crop farms ^aould add, .capital can accept that challenge
in

occur

more

trading week of the

credit.

These credit needs

easy; new

farming*becomes>more tech-

nical and

had

of cross-currents

ib? "^ankMion and resolution.

borrowers/ ;*• / ?

the

Inevitably, the stock

col-

with

week

to contribute several issues to

in

repayment plans.

Intermediate

specialists by
handle

AND YOU

.

repayment

ket

basicUfarm^Dlan^information0Tmd
ance

-

contrasted

as

Flexible

.

',

to

Budgeted loans

would

;give .needed:management

credit/

lateral.

increased

is

.

By WALLACE

attention

More

do some real pioneering.

^ers to

•use

be

a

THE MARKET

profit:

Supervised

improve-

this

enthusiastic session

help banks to meet these needs—

keeps many farm¬

undertaking

that

-ments

a

favor

lending techniques which can:

I within the customary period of 12
„months.
The possibility that the
renew

(2755)

as¬

mar¬

more significant than the penetration of
other/the fabled high of a quarter

J

ket

trading,

one

was

and

standouts

of the

erupted

to

a

high with zest. Minne¬
ago.
With
the
Commodity Prices
es^-t
nommoaiiy rnces
.
skepticism around over the chVngps in indiistrv 'and rnr- sota Mining was a returnee
whose
ChairIndustrial
commodity
p r 1 c e
k
f,
hh
11
h H cnanges m maustry ana cur
in stepping into the limelight
market's
man is Robert
structure at the year-end is stable 111 d 1
* high . levelsndu,.renCy; even apart from the
nign leveldhad
Warren Foundry,
C.
Swan ton,; sod reflects a little more strength'Prompted XGars that it *WOUld changes in the average itself again.
which
occasionally has a
Director
of than last monthh, witn prices still have'to absorb .considerable--]ni^w ^me SDan
comoari

Association

of

hand,

Purchas¬

the

great

amount

new

of century

.

.

_

fling, was able on one day of
sons are meanin»less
«sons-are meaningless.
good feeling to join the new
^Repeating here and there. No strong price 195^whenThat deadline cameA continuing surprise is highs, also with determina¬
vArms Plant, movement either way is antici- tip. The answer proved-to be
t tup nnoiifv iccupc
lpaH-

j,iPuTch 8aes,.highly competitive in most mar- selling to establish profits for,
Winchester

r.

Mathie-

01 in
;

kets and deliveries stretching out

<, Qt-t-

pated, though buyers are'becom- somewhere

sorit Chemical, ing concerned about the effect,op tween

(/.-Corp., New future'prices of forthcoming labor
( : Haven, Conn./ demands.
■■
•-'
,

is

'ing
■

look-

that,
a

fead to

1955,.;they are
detimtely

Robert c. Swanton

.

op-

.about

continued
improvement in general business*6% see it holding4 at the present
(level, and only 4% * expect de-dining activity. Of those taking
the brighter view of 1955, 36% see
ithrough the* first quarter, 15%.through the first half, while 39%',
-an
outstanding number for the
survey's longer-term forecasts,
carry through the whole year. Impressive as these statistics are,
ihey must be considered in the
anticipate

opinion

; change

will

T

•

•

•

.

Inventories

t

•

thp

not

great

be

in the middle" be-'
extremes

two

^ hit

fhhrp celling

.W*
^
ers on
advance .long ago,
are sti11 not content to take a
,

^^^^ilSf^Vell-earned

f°r losses 4han anticipated,,

,.and less selling to post

.

®

chore

about in line with
the November reports; Some conreported

are

The

■

The rebound

once

these

un-

rest

and

leave

secondary

the

to

f

f

f

J

.

craft

to

half

add

a

tion.

'

Automotive
still

issues,

while

showing the signs of in¬
caution, were able to

vestor

good action when the
going was right. They weren't
dozen any regulars to the new high?;
lists but, on the other hand,
have been hovering far closer

t° any. «Feat. ext?9t
ability of Douglas Air-

Purchased materials inventories profits than had been feared. ^ues

'!*^to^sMom^re'l^S certai"ties

;|ng" SS%
an

;

T

-

it,„f Arxn

Ipost

wer® ^ared up points and reach a new record

clination to-build inventories Wias the second best since peak, even though the stock
to the year's best prices than
beyond known requirements and early November, as far as the was split as recently as a
necessary procurement lead time, industrial
average
is con- scant eight months ago, stood to the poorest. Virtually the
General opinion is that rigid in- cerned This more than wiped nut nnrtirnlarlv' Among thp same could be said of the
ventory control will continue .SSffe°;^ more man wipea out particularly Among
rubber
issues
where
Good¬
through 1955.
.
; ,
out the loss on the weeks steel shares, where greater
year did somewhat b e 11 e r
-V"
initial session,, This had been caution has been the keynote,

the

T

,

^mp oyi"ent

,

dour one in that the 731 Bethlehem's ability to follow

a

the

than

generally in

group

Industrial pay rolls held up well mjnus s\ans against onlv 318 along thp nath nf Dnnglac for working into position to chal ¬
m December.
Increases outbal- W1 •
8 ^ 6
g?
,
Douglas tor lenge the old high.
anced decreases by a small mar-- gsins .had provided the most a swing almost as wide was
gin. Most of the layoffs were of the one-way market in two equally surprising,
Liquor shares have had a
usual seasonal character. More months, and hence the most
comparatively restful marke ;
Insurance Stocks
interruption to the
life despite the fact that trrr.}
Re-stimulated
is the season when tradition¬
but, November, with little overtime.
bull swing so tar.
The week also marked a
ally they are favored by in¬
Buying Policy
Favorable Technical Factors pickup in interest in insur- vestors. Park & Tilford v-aa
•

SSflwEmontCh?ePin2 type-0f the
Over-all, the Committee states,

er^sing^production61 and^more

indicate that major
adjustments and corrections have

price strength, Purchasing Agents
are taking only a slightly longer

the

reports

^vtfh3 new^^

'pared
stepped-up sales plans to compete
in the higily competitive markets

>•

of the

new

year.v

.

,

The December N.A.P.A. Survey

ImpTovement111^of^th? past^rive
months.

■

New orders are reported

and again have a slight

margin

"Jover production increases.

This is

up

a

reversal of the normal December

-

goods is over and inventory
time approaches. Industrial commodify, .prices are stabilizing and
strong.
Inventories are leveling
out

; is

on

the low side/

tice.

Hand-to-mouth

to

60

days

the markets.

;
*.•%;'/•

/;

'

-

;
-

.

-„
«
^ »
r
p
IO De oomers, ocriarer v.0,

y

Qn

V the

Jan.

Q_mpr_

firm

k-iri

v

b«

of

name

.LnOAj

> ™
& Sc^ ^
^be e a
P
ome s,
c a.er o.
e
firm, which holds membership ill
Iocated

50

t

is

Broadway,. New

creasing.
Buying, policy remains
/
■ .*"
conservative, 90 days and. under, *®rk City.
with a slight movement into the
On the same date John E. Coltop side of the bracket.
lins, member of the New York
.

:

.Conditions reported in the December, 1954, survey bear no com-

'.parison to those of December, 1953.
This year

stock Exchange, will be admitted
to

partnership.

been active

ends en a high note of broker.




above that level. When buy-

C^ntinues to be .the major call on ing

Employment, the New Yrork Stock Exchange

high;.82% report holding or in-

.

exception, largely due

an

nebulous

some

various

rumors

mergers

of

within too
tips, eve i

011 Procurement- steel re_ ume dried up rather abruptly, posed investment company industry. These
Quires a somewhat extended lead dropping below the three mil- specializing in insurance is- without confirmation, we J a
time, but most industrial materials lion mark to snap a string of sues, plus a 20-for-l proposed able to add the shares to n. e
are
still procurable on short no- half
a
dozen sessions well split for non-listed Travelers,
narrow
group of dan/

•statistics, when the push for hob'*day

Ail the .tec!lr|icai.
ance issues, very few of
tions were 1 a vo r a DIG. Lin which arc available in listed
widespread selling the vol- trading. Registration of a pro-

as an

Mr.

Collins

has

individual floor
f.

'

;

y; '

helped foster this

new

atten-

returned, the business tion. One consequence was

expanded by more than 20% some very spirited, multito hearten the bullish ele- point gains in a session by
ments. -The year-end rally, Continental Insurance and
-

rom,ior

-

v,

nv.

•

p-

t

°f ,the ®°4 T
Fldellty"Phemx F 1 r e InSur"
seasonal, market actions, is ance.
already an established fact.
Oils haven't been able to
^

sprinters.
American
tinues
ket

on

an

course,

Telephone con¬
uncertain mar¬

the

stock being;

given to sudden dips followed
rather quickly by good re¬

But in its meander
and with a dividend
but have been able to eon- payment trimmed from it, the
is small. There had been a
tribute a candidate or two to pet investment of more than
school that saw the 400 level, the
twice as many people as any
sprinting circle. One such
npvpr rpach^d
in hktnrv
a
never reaeiied in History, as a was Houston Oil, no new- other single issue has backed
comfort

for the bears

barrier to further progress,
largely because of psycholog- comer to tne group, wmcn,

ical factors. By coincidence,
mostly, the tax selling turned
the list back when it was
right on that brink. The aver-

covery.

stand out too much as a group ings,

up

well below its Fall high.

[The

views

however, tound the task ot
bettering its 19o4 high a bit

article

bothers°me.

Chronicle.

Textiles

came

into

some

time

those

do not
coincide

of

expressed in thij
necessarily at any
with those of the

They are presented ai

the author only. 1

18

(2766)

The Commercial and Financial Chronicle...

other weapons, both of a conven¬
tional
and
nonconventional
na¬

Technological Advance

ture, which
defense

And National
By

CHRISTIAN

II.

Sonne, after commenting

the

great scientific

and technical advances of

of the world order which

techniques.- Concludes, in next

new

economic forces

the

year some

is

paradoxical that the great " serves as

scientific

and

technical

out"'time

of

genius

of

of

also

culture

On

V

the

been

than

contributed
human

be

in

ready
in

our
allies;
other free

on

own

reducing

defense

ef¬

"power

the

world

the

of

the

on

which

would give Soviet imperialism an

H. Christian bonne

opportunity
for
relatively
safe
penetration and domination;

has
interlocked that

,hav®

or

their

thus

forts,

attack

support

to

vacuums"

mis-

a

thirdly, to enable us, with a highly
military set-up, to par-

consequences flexible

threaten the existence of

!?.

States

"nations

and

so

******
™

to

retaliation

Russian

a

United

prog¬

cultures

of

secondly,

lo

Today,
the destiny of
nations

first

atomic

instant

for

ress.

become

designed

case

has

ments,

Russia.
the

of

them

is

ticipate in action anywhere in the

civilization as we have known it.
world where it may be necessary
Limited conflict may lead to ulti-;
to come to the defense of friendly
mate
conflict.
Concession may
nati0ns.
lead to surrender.
This three-fold approach to our
Nuclear warfare may lead to national
>

tinuation

quite

of

entirely
spiritual,

the

the

and

different.

The

this

the

on

"bloc"

depends

mutual

political,

tages

and
economic
advan¬
which its members find in

their

loose

cooperation.

That

why stronger trade and other

is

eco¬

nomic ties

are important for
im¬
plementing the political alliance.

The

colonial

system
shattered.

completely
which

has

been

Countries

formerly dependent
strong aspirations for
independence and eco¬

were

have

now

to

political

nomic betterment.

Increased pro¬

ductivity has become

necessity. Unless
called
underdeveloped
succeed

elemen¬

an

tary

the

economic

these

Domestic

the

social

to

problems

security

irreparable

destruction

decay
Entirely aside

race.

or

from

their direct damage, atomic
hydrogen bombs, if exploded in
large number, may contaminate

to

the

measures

the

atmosphere, harm the human
and affect generations yet

unborn.

k

and

robots.

these

European continent

^

difficult to judge whether

*n pursuing these

aims

have

we

that

istics

measures had to be c"rtajled_ because we cannot afford
them,
An NPA study showed that the
tremendous rise in productivity of

between

a

Occidental

civilizations.

ground

common

and

But

Oriental

Communism

from without and intolerance from
within threaten to

j

recognition

character of

people
>

our

with
.

„

of this

era

their

leaves many

feeling

a

of

,

.

■

famous
the

apprentice

magic

broom

him.

the

While

the

Goethe's

absence

which

house
the

of

of

made

the

cleaning for

broom
water

brought

after

the

other, the apprentice realized that
he

did not remember the word
which would make it stop. In his
fury and fear of drowing, the ap-

prentice split the broom in two.
Both
and

parts

the

last

now

flood

minute

spoke

the

broom

was

the

water

At

master

mavic

and

the
cor¬

m,

annrpnfifP

pfi
f

0

fnrpps

1 ol.
cont J?
♦

,

JE?
£

\mioa

vrhfet!

*

s<?rce.rer.s

5 are n0?
Perhaps we have.
d

a

i

And

we
cannot
expect any
m a g 1 c
words that will tame tiese forces.

have learned that

...

will

not

lury

arisen

—77—

to

nor

despair;
facing

help

j,

fall

assure

Association

d.

C.,

in

into
to

problems

impotent

be

calm

which

that

it

blind

in

have

technology

",.b"rNsro"e.r
National
Dec.

i t y expenditures

r

$70

billion

further

14,

C~?»ncil,
1954.




'

Washing-

without

advances

,T

A

We
a

in

^

,

ar? Particularly disturbed
.?erl0Uf gap in our national

security system.

This

the lack

is

?* adequate preparation for meet!n& an atomic attack or for reduc^
vulnerability of the
American
attack*

economy

to

such

an

and

domination.

of another.

namic, growing

less developed countries
making rapid strides in adopt¬

ing medical advances. Their

mor¬

tality rates are drastically declin¬
ing; a corresponding decline in
birth rates is not yet in sight.

result,

some

countries

are

As
al¬

ready experiencing what has been
called

population
increase in

a

Thus,

an

explosion.
food

and

which

the

Honorable

Richard

(ReresefatfVe fror» Mis-

souri) dealt with so admirably in
his speech earlier.
There

not

go

may

be

grounds for the

that the cold

on

in

its

war

present

can-

form,

which compels both sides to develop atomic weapons of increasinS power.
None of the parties
cares

our

to

run

the

risk

of

g]obe uninhabitable

sujt

of

atomic

warfare

making
as

a

or,

re¬

per-

haps,

even
as
a
result of continued experiments. Yet they can
jn afford to be less prepared than

their

potential

orudence
pare

Hence,

enemy.

demands

ourselves

for

that
the

we

pre-

possibil-

power

groups

refrain fr°™. usivg the
WeaOOn.
ThlS places additional
emphasis

Only in

is it

economy

foreseeable

now

ex¬

pansion in food production is like¬
ly to yield only a maximum in¬
sufficient to support

crease

ditional

90

million

people

ad¬

an

over

a

for

instance, atomic energy could
be produced
.cheaply enough to
provide power for irrigation, mil¬
lions

land
is

of

one

we

on

the need

to develop

of

acres

could

of

are

be

unproductive

made

the

fertile.

possibilities

exploring

project

on

in

This

which

the

NPA

energy.

the nonmilitary use of

commensurate -with

urgent need of the under¬
developed countries for technical
assistance

and

foreign capital in
their own resources

developing
sometime
of

a

We
to

clashes

return
must

of

learn

with

foreign
more

their

fear

influence.

about

ways

participate in the develoomental

programs of other countries with¬
out

creating fears of colonial

ploitation
tration

imperialistic

or

ex¬

pene¬

or

compromising
their
newly
attained
and
jealously
guarded
sovereignty.
We
must
demonstrate clearly, too, that in
offering know-how and investing
caoital, we are motivated by con¬
siderations
not

win

by

a

mutual

interest—

condescending desire to

friends

charitable
cial

of

and

power

handouts.

through

In two

spe¬

NPA

projects—one on Tech¬
nical Assistance in Latin America
the other on United States

and

Business
we

are

Performance

Abroad—

already finding out

how

the

In

pro¬

power

rise
our

in

eco¬

nomic

system, '}■ an
increase
in
purchasing power is created main¬
ly through the earnings derived

pos¬

from

to

Rapid

advances

economic

an

and

so-called

expect

social

of

ization,
lions

If

of

struggling—urban¬

people

from

the

we

to

nomic fluctuations.

than

successfully learning
situations, further
growth will
give rise to
new
problems and it is important to
recognize
their
appearance
in
\

We

v

industrial

of

revolution

by $3

of

tion

billion.

a

The

billion

growth brought
techniques of mech¬
automation.

have factories which

We

effects

the

of

devices,
ment

compensates

labor

new

technological

must

alsb

will

result.

for

and

ing

in

situation
up¬

NPA is

initiat¬
eco¬

nomic and social consequences of
automation.
7.... r
:7
In the

in

only

$2

the

know

peri¬

a

house, cleaning. • Now we
by bitter experience that

economic and social structure

probably would not survive

many

of

about

Thus,

about

downward

other sectors.

kept

Tax reductions

rising

in

decline

spite of the general
business activities.
•

one

movement

in

undoubtedly

contributed to this maintenance of

disposable income at

high

a

relatively

level—in

traction

spite of
production.

in

the

con¬

We can
also attribute increased
consump¬
tion to the rise in social
security
benefits

and

in

offset

work,

and

cessions.

to

to

rise

was

forces

in

favor¬

price

soine

con¬

residential

caused

the easier terms of

market

wages,
hours
of

consumers'

The

construction

hourly

shorter

partly by

financing. Both

and

government

such
house cleanings.
We have
learned methods of
counteracting

compensatory forces, although

depressions.

cannot determine the

question

a

ment

should

high
and

Today it is
whether

level

help

of

longer

no

the

Govern¬

maintain

to

economic

employment but in what form

^rid to what extent it should do

This

attitude

that

that

the

that

a

depression.

severe

We

Government has

business, in
not

which
more

was

of
and

krow

to

step

Recent experience has shown

siderable
did

part

so.

us an assurance

need not fear

we

prolonged
in.

the

on

Government gives

a

Those

spite

contraction
curtail

were

of

a

con¬

in

oufpiit,
investment plans

decided

upon

favorable conditions.

under
There

gratifying absence of panic.
of

us

who

favored

policies have contributed to these

and

Looking ahead to next year, it
isn't

hard to

tional

that

some

spending

curtailed

smaller

amount

The

same

—

forces

appears

be

may

though by

than
to

business investment.

last
be

a

year.

true

The

inventory liquidation

for

general
may

be

nearing its end.

Thus/the defla¬
likely to ptay
role'than they did last

tionary factors
a

smaller

are

On the other hand some of
the expansive factors
may be less

year.

effective.

There

are

ductions scheduled

the lines of the

which

along
Employment Act of
right, it seems, in think¬

security

further

than

were

see

likely to continue their down¬
swing.
Under present plans na¬
are

worked hard for legislation
lb46

we

exact effect

of each.

a

activity

$3

It is remarkable

consumption

able response

as

$10

compensated for by increases

were

unavoidable

about

offsetting fac¬

billion in state and

spending.
of

which

as

by

main

past, some people thought
depressions were undesirable but
odic

a

private

about

that

saving

study of the potential

a

was

the

drastic

a

in¬

from

$5 billion de¬

a

increases

were

local

half

unemploy¬

This

require

shifted

.

by engineers without workers.

expansion

rate

nonfarm

construction,
particularly residential housing;
about $5 million in
consumption;

virtually

are

was

the

and

of

Nevertheless, total produc¬

tors

run

Defense

equipment

billion

declined

about by new

and

durable

accumulation

rise in the rate of

anization

in

amounted

billion.

ventory holdings
$2 billion rise to

an¬

and

we

reduction

activities

$20

in

cline.

threshold

1953,

year

was curtailed by more
$10 billion; business invest¬

ment

;

the

at

are

other

about

down

to handle these

time.

of

spending

are

less

or

a

the third quarter

the

continued

number

a

soil,

with

that

of family bonds, juve¬
nile delinquency, and serious eco¬
we

activity—provides

compare

1954

find

loosening

While

pre¬

sidering the outlook for 1955*

revolu¬

slums, uprooting of mil¬

of

economic

was

movement

useful point of departure for con¬

nature.

industrial

still

are

markets.

experience in 1954

our

—during which there
dominantly a sidewise

created problems with which

we

expanding

A look at

in

technology
and
productivity
are,
however,
nota, only
a
blessing but also a
challenge. They pose problems of

our

The

major effect in

a

rise in purchasing

a

potential production.

simul¬

ucational system.

If,

planning.

Marxism.

gain

groups

grading of our labor force and a
thorough overhauling of our ed¬

starvation.

today

frame of

a

increasing production. Pro¬
duction, however, will expand
only if businessmen have reason

all

30-year period. Modern tech¬
nology may come just in time to
wholesale

organ¬

groups

The government's fiscal and credit

dy¬

a

labor

farm

such projections as
reference I for
future

give just one example, the popu¬
Modern technology and the
lation of India, estimated in 1951 V
ris;ng
cost of labor tend to
replace rou¬
at 360 million, is expected to rise
tine operations of the hand
to 520 million by 1981. That would
and
brain with machines. Unless
be
an
increase
of
rapid
160
million.

However, the

and

taneously. A free dynamic econ¬
omy
is the living refutation of

that

sible

more

These
are

atomic

The National Planning Association has appointed a Joint Committee to study these problems,

ity that both world

,

,-ii.i

ion,

strike

We have

the
to

to

prey

penetration

corporations,

use

In

prevent

conclusion

belonged.

in

1iv*

nf

H

the

returned,

word,

sent back into the

where it

ner

carried

doubled

increase

business expansion and the stand-

used "

apprentice

word
the

do

bucket

one

In

poem.

master

the

in

would

peak of $54 billion to

as

preventing

.

c1,1' ,and CI-TT-:
Some
people
feel
as
did
the
sorcerer's

much

as

blind

security

economy

substantial

a

national s e c u
from

fateful

national

American

permit

sparks

The

desirable

the

extinguish

these

likely to fall

of

Some of us in the NPA have been other production in large parts of
disturbed at times by statepi^nts- ,the world, is of!great urgency. To

Re-

spect for these human character-

provides

are

Communist

a

done all that needs to be done,

self-respon-

sibility—will make the difference
humans

Without

threats.
the

nations

nist domination.

As long as they are kept glowing, the sparks of our human

between

several

of

probably today be largely,
if not completely, under Commu-

Physical harm, however,

and

resistance
Soviet

living they
to

helped to strengthen

would

is not the only threat of our time,

spirit—freedom

It has

war.

or

genes,

has

undoubtedly been a contributing
factor in avoiding a suicidal v/orld

standard

Many

izations,

be attained only at the

group can
expense

their

growth of the American economy.

and-

their lots.

raise

must

pioneered
in appraising the potentials apd
exploring the possible patterns of

static economy the gains of one

tion

in

improve

today. Business, farm-;

eral NPA studies have

policy has

groups

the

were

of these groups have
doing just that in NPA. Sev¬

moting

a

activity

sentatives

system

individuals

unem¬

a

opportunity

for

have

may

from now,

year

labor

social and economic system is the

countries

provement

a

we

percent

economic

same as

been

for long without a continuing rise
in the standard of living.
One of the characteristics of our

,

of the human

own

Development

economic

growth.

continuously growing
economic potential — and repre¬

probably could not have survived

The

establishing
stable
democratic regimes and in giving
hope to the millions for some im¬

and

of

and
sights to

industrialized nations—Indeed

our

continued

eight

ers,

development.

Economic

to

level

.There is nothing new
growth
itself;. whieh has been typical in

so-

in

their

our

of

ployed if,

foreign

countries.

This applies likewise to

is
not
enough ' to
depressions. We must

been estimated that
seven

the

industrial

it

assured

Today, four to five percent of our
labor force is unemployed. It has

the

cover

American

of

older

domestic

under

blocs

field

will

—

in an age of rapid
technology and pro¬

in

ductivity

Foundation, whose
published

form

reduce,
increase, the need for

counteract
be

would "

and

However,
progress

Ad¬

Advancing technology and ris¬
ing productivity are essential also

'However, the

two

book

whole

the emergence

blocs

proj¬

has

the, United ! States

of

Soviet

nature

in

ac-

li lsh

p

leadership
and

by

power

two

economic policy.

*

of power

relationship of the partners with¬

subject of defense, our
security
build-up
has

national

another.

Failure, not
co m

replaced

two

'

>'

-

balance

United States has no intent and
(2)-Foreign economic policy.
;
(3)"Domestic economic develop¬ no means to force its leadership
upon the Free Nations, The con¬
ment.

paved tne w^y

less

technol-

of

in

to

f

for the success

of

',.r;h

briefly 'some

consequences

fe (I) National defense,

nation

one
one

consider

'.iy.

in such fields as:

ogy

.

failure

a

of mankind.

Let"'us

his' crucial

threaten

the

In

ence.

or

which" revealI"the

man

exist¬

very

past

advances ' destroyer

of.

the

these

final report—soon to be

colo¬

by

that

Wilson

row

other dependent economic

or

Now
a

tied

was

believe

effect

rather than

countries.

light will be thrown on
subject by the recommenda¬
tions of a Study Group jointly
sponsored by NPA and the Wood-

emerged

countries

relationships.

tool rather than as

a

the world

leading

been
It

developed

this

nations; and most of

rest of

these

likely to continue their down swing.

are

less

ditional

during the 19th Century. In that
old world order, we had a balance
of power among a number of in¬

industrial

in

We

an

dustrialized

stabiliz¬

a

Government intervention.

to

ing and host countries alike.

nial

growth due to

-

rise

a

ing that it would have
ing

ects will become useful to invest¬

derstand the complete breakdown

time not

our

only reveals man's genius, but also threatens his very exist¬
ence, reviews the effect of the technological developments on:
(1) National Defense; (2) Foreign Economic Policy, and (3)
Domestic Economic Development. Says we are on the thresh¬
old of another industrial revolution and

programs.

adequate national se¬
curity system is only one part of
a successful
policy of survival. To
cope with our grave international
situation, we must admit and un¬

the paradoxical situation that

on

Government

ber that

SONNE*

Planning: Association

Mr.

States

sets

require increased

may

United

and private enterprise can become
welcome economic and social as¬

In considering our foreign eco¬
nomic policy it is well to remem¬

Policy

Chairman, Board of Trustees,
National

the

Thursday, December 30, 1954

for

last

would

consumer

less

for

year

of

directly

purchases.

tax

re¬

next

year

the

kind

strengthen
While

con-

Number 5390... The

Volume 180

19

(2767)

Commercial and Financial Chronicle

latter'approach would ap- hope that in the course of time
to interfere less with the. your deliberations and advice will
give added strength. to the NPA
the rise which we have experi-. freo choice of the individual.
For the even more distant fu¬ in its efforts to serve the national
enced over the last 12 months.
interest. " ;
.,*■
'
The
key
lies largely with the ture, we face more provocative
questions, Advances in technol¬
By OWEN ELY
consumer and with the prices and
qualities of goods which the busi¬ ogy and productivity can be and
;
are
being used in two ways—
'Wisconsin Public Service Corp.
ness community has to offer.
On
either by rising incomes and con¬
balance; the present outlook is
Wisconsin Public Service Corp., and~a drought.in-1949-50...In 1951,
for private or public
for a slightly higher level of ac¬ sumption
which emerged from the Stand- 20c share earnings was lost, since
purposes or by reducing the pe¬
John J. Mann, a former page
tivity, in 1955 than in 1954, but
ard Gas & 'Electric System about the income tax
report could no
riod of productive work during a
boy on the Exchange, became the two
-still a level
substantially below
years ago, sells electricity in longer be consolidated with that
lifetime. For the near future, our first
person in history to be so
that which we could and should
278 communities at retail, and to of the former parent Standard Gas
people probably will continue to honored when he was nominated
attain with our increasing labor
nine at wholesale.
The territory & Electric. However, this loss has
seek a larger portion of the fruits
to his
fifth
.force 'and
the constantly rising
served covers a substantial area since been made up through imof technological progress through
consecutive.,
productivity" of our plants and
in north central and northeastern proved operations.
rising incomes. There may come
term as Chair-:;
offices.
Wisconsin,- plus a small part of
A new $11 million steam genera
time, however, when the em¬
man
of
the
A full employment level of pro¬
upper * Michigan.
Natural - gas is a ting plant was installed this year,
phasis will be shifted to a much
Bodrd of Gov¬
duction called for a Gross Na¬
served i iri - 15 " communities
and but no: new'units are scheduled
more
drastic
shortening of the
ernors
of the
tional Product of $365 billion in
manufactured gas
in four! ' The in the next two years.
Accordperiod of work during a lifetime.
American
1953, and of $385 billion in 1955
company also operates, buses in
ingly, construction expenditures
In the past, the period of work
S t o c k E x-,
at 1953 prices.
Since our Gross has been shortened
Green
by spending BayflapdMDeR^reM,^y^;f.a wi,ll average less than $6 million
e h a h g e. t'I h
iNatioriaPPfodiidt for' *1954 (is''ap¬
substantial pair;t' q(,th& transit,bus- 9 y<^r„.which, can betaken, care
ihore years in School, by1 a shorter '
m a k i n g1 the
proximately $356 billion, we will work
iness was sold in 1951.
Revenues of by bank loans.
Permanent fl¬
week, by additional allow¬
announce¬
have to find markets for an addi¬
are now about 81%
electric, 17% nancing can probably be deferred
ances
for
vacations, and by an
tional $29 billion worth of goods
ment, E x- gas and 2% transit.
until 1957.
earlier retirement age. It is like¬
and services next year in order
change Presi¬
The equity ratio has improved
Residential
customers
furnish
ly that these trends will continue.
to achieve full employment. The
dent, Edward 45% of revenues (including 20% from 25.7% in 1945 to 30.5% in
And it is desirable that they do—
a

pear

hot repeat

levelr it may

high

he

promises to continue a

structiob

Public

-

Utility Securities

-

Mann Re-Nominated

For A.S.E. Chairman

f

.

equivalent for 1960 would be $88

up

billion and, for 1965,

young

$179 billion.
We can see from this that the prob¬
lems that face us during the first

their

babies begin to reacli

because their desire to
earn
a living and to
be indepen¬
dent may exceed their desire to
learn.
Also, the enforcement of
an early retirement age runs more
and more counter to the medical

the end

achievements

few

years

This

relatively small.

seem

600,000

in

increase

the

because

is

the labor force is now

only about

but when the war
maturity at
of this decade, the yearly
year,

a

T.

a
certain point. But our
people do not want to have
schooling
endlessly
pro¬

to

permit

increase will be about one million.

ductive work at older ages.

This

Added

brings

of in¬
creased
productivity figured at
2Vz% per annum is likely to in¬
crease.
These figures suggest that
tackle

must

we

rate

current

our

firmly.

delay the problem will get bigger
and more difficult to solve.
this

In

situation, some further
economic

of

measures

and

fiscal

policy for promoting expansion
growth may be required. In
addition to the road construction

and

which is under active
consideration, there may be need
program

for further tax reduction and fur¬

credit

ther

giving con¬

measures

residential con¬

tinued support to

important
question of how people may wish
to arrange their lives in an age

struction.

the

up

of rising

very

abundance.
may
want

enter

to

Students

un¬

problem
promptly
With each year of

employment
and

the

this,

work while they are
still young, but then obtain ad¬
vanced training after some years
productive

also

could

There

work.

of

be

a

regular interruption of the work
period by a kind of "sabbatical
year" which the individual may
use
for
refresher
and
training
Some, again,

traveling.

courses or

wish to reduce their work¬

may

ing hours considerably at a cer¬
tain stage—after attaining the age

It may be wise in such
permit earlier semi-re¬
tirement
with
correspondingly

of say 50.
to

cases

pensions in order to avoid,
at the age of 65, the often harmful
abrupt
change
from
full-time
work to complete retirement.
»
These
thoughts are presented

lower

The

problem can and must be
solved, but vigilance" on the part
of both private enterprise and the
Government is urgently required
to
attain
the growth which
is
merely in order to illustrate the
needed for a reasonable, full, and
kind of questions we will have to
sustained ' level
of
employment

.

.

.

.

-

We need studies not only

answer.

production.
Until that
there -should be no

and

achieved

,

is
re-

taxation.

.

on
top of our present
relatively high level, is likely to
result in substantial changes in

J living,
'

the

patterns of consumption.

the basic necessities and comforts

life

of

-

-

more

people

met,

are

will

be

anxious to build up more re¬

individual saving

through

serves

pension funds and similar de¬

; or

vices.
The
to

consumer

today is exposed

kinds of

advertising cam¬

two

paigns: one to make him borrow
money
for the purchase of all
kinds
of
consumer
goods;
the
variety of savings institutions.

with
rising incomes, the
present ratio of net savings should
continue or even
increase, then
If,

question of so-called "over¬
saving" will soon arise again. This
means
that individuals may wish
the

to

•

more

save

than

new

construction
houses and plants and the

purchase of new equipment.
In such
of

action

situation, two courses
could be taken.
One

a

would, by tax and other measures,
discourage individual saving and
business
accumulation of funds.

individuals
and business conduct their affairs

The

would

other

in the manner

let

they regard

as pru¬

let the government fiof its undertakings by

dent, but
.

nance

some

bond

issues

between

technology

so

that

the

balance

potential production and

purchases

would

be

maintained.




with it.

nected

turn, raises the ques¬
tion of the objectives to which in
the last analysis we wish to de¬
vote our energies.
Since we are

This, in

in

lenged,

world

a

of

basis

our

chal¬

is

existence

our

the

which

in

main efforts must be
preserving peace

directed towards

main¬
taining our own and our allies'
strength; and towards participat¬
ing in the building of a world
economy in which our know-how
and capital are used where they

through * building

that

heaval

and

up

prevent

to

needed

be

may

with
ket

We have considered some of the
many
we

as

crucial issues that face us
look

national
nomic

nomic
the

over

fields

such

as

election

of the

of view

Mr.
New

a

as

Feb.

on

at

members
annual

the

14, 1955.

Exchange predecessor)

Exchange

member

specialist in 1933.

stock

and

He has been

a
as

Included in the nominations for

Governors

ber

regular-mem¬
Charles

were:

George

Booklet;

C.

D

o n e

1

J.

o n;

Harry P. Henriques, Jr., Walston
&

Philip Megna, Francis
& Co.; and Charles H.

Co.; A.

I.

duPont

a

imme¬

diate and more distant future.

the

important functions

of NPA is to

Samuel

the

Weiner, J. A. Ludlow

Co.

many

urgent problems which

DeJong, Hirsch & Co.;
Joseph
Gimma,
Hornblovver
&
Weeks; Richard C. Noel, Van Al-

sented

in

This
anced
based

of
We

sound

are

the

considered

with

us

able

of

groups

fortunate

to

bal¬

and

must

that

judgment
on

are repre¬

be

opinion

citizens.

have

asso¬

a group—the
which you rep¬

such

National Council,

resent, and which consists of out¬
standing leaders from all sections
of

the country.

It is our earnest

is

very

national

aver-

of 4,100 kwh. annually,

erage use

dairy farms and food proc-

With

of

out

one

omy,

customers is

maintains

domestic

four

farmer.

a

The State

which

research farm

a

which

60,000

uses

kwh.

a

Shlu^fenr^^ofp'a„°,f
30,000 kwh. for

a

fully

ber Governors.
Adriance
to

15.7

34.0

$103.6 100.0
are

expected to

approximate $1.50 or more for the

calendar year 1954, and about
$1.55 is estimated for next year,
The interest on construction
credit, which in the 12 months
ended Oct. 31 approximated $294,000, or nearly 12c a share, will decline sharply next year with the
new generating unit in operation,
so that this loss must be recouped,

is hopeful

President Kohlhepp

electric equipment

specialized in
and

equity

Share earnings

usage

future air-condiexpected). Farm
high, with an av-

some

load

are

served,

that

the

dividend

$1<10

rate

can

^ "upped" moderately about a

electrified commercial farm might

year

from now. The stock is cur-

be

sales

long-term

a

rently

operate exclusively in the

which

Baker, Weeks & Go.

served.

area

The paper

industry is outstand¬

Expands Facilities

&

Finn,

two year

a

John J.

lar-member

Miles, Jr.,
nominated

was

term as a non-reguGovernor.

John

Ludlow, J. A. Ludlow & Co.,
nominated

to

a

one

A.
was

term

year

as

trustee of the gratuity fund.

national business conditions. Other

industries

malt

household
The

ucts.

company

committee,

construction

includes

prod-

is

active

industrial

the

of

St.

Lawrence

Bowler;

Charles

and

E.

Stoltz,

Charles E. Stoltz & Co.

prisingly rapid growth, with electrie revenues increasing from less
than $11

Wm. Sexton Retiring;
Groves Forms Own Co.

million in 1945 to nearly

$26 million currently, for a gain
of 140%.
Gas revenues have increased even faster — 212% since

resentative's

Switzerland.

the

firm

Liberty
will

Sexton

of

National

dissolved.

be

and

Bank

Groves,
Building,

William

H.

natural

and

Arthur

the firm will open

Montreal and

McLaughlin

.

fjrm

an(j
.

,

rep¬

jts

will

of the

partners

office,

firm in its Montreal
«phe

a

Geneva,

Herbert K. Crabtree
A.

resident

become

in

office

predecessors

,

^ave been m business s nee Ja
ployees

and

part

gas.

continuously

have been

partners

associated

to

heating in 1945 contributed only
about 2% of gas revenues wherea.1
for 39%. House-

it accounts

now

Sexton, who has been in

the in¬
business for the past 36

retiring

is

years

Charles

W.

continue

will

curities

to

business

Groves

of

heating rates for gas are promo¬
tional and may be lowered again
business. The company hopes to get morE

from
his

Groves,

&

partner,

operate
under

the

the

se^

name

Company.

natural gas

remaining
served
The

New York Stock

Exchange
Weekly Firm Changes

The New York Stock Exchange

company's

Transfer of the Exchange mem¬

Maier to

bership

of John

Francis

Smithers will be

ered

by

On

Jr.

31

&

Co.

William

from

G.

C.

consid¬

the Exchange on Jan.

Dec.

retires

Laird

A.

6.

Jones,

partnership

in

has

been

„

gas.

overall rate
improved, so

that increased usage by consumers
pays

its

ways

the

Relations
the

for

way—which is not al¬
with other utilities

case
are

said to be good with

§

Thf

§

Wisconsin

company

changes:

/«=<•

and to convert the twe
which are now

areas

with manufactured

structure

Commission.

not expect to as! §

does

higher rates in 1955, it is re-

J-

ported.

of

§

Because

|

tremendous

area

and dividend rec-

§

somewhat irregular.

served

AREA
P

O

into the hands of the
a

power

notural

resources,

this

by Utah Power & light Co., offers

opportunity to industry.

RESOURCES BOOKIET

on

Box 899, Dept M, Soil lake

request

public. There

1

shortage in 1947-48 »

City 10, Utoh

UTAH

particularly before the stock went |

was

abundant

|

The earnings
ord has been

.

A number of the em-

1» 1925.

with the
receipt of firm
during this entire period.
Residential space

in

1945—due

SAVANNAH, Ga.—As of Jan. 1

1,

office in

an

James T.

Tobin; Edward J. Cohan, Seaway; in some cities there has
Pershing & Co.; William H. Riess, been renewed interest in dock
Jr.; Rudolph W. Deetjen, Eman¬ space.
uel
The
Deetjen & Co.; Edward J.
company has shown
sur-

Jan.

of

as

by

other

and

Exchange

leading exchanges, announces that

m

be; stimulated

will

r

;

unit

It anticipates that

the area.

business

goods,

an-

Weefcs & Co., 1 Wall street, New
York City, member of the New

supplies, York Stock

and metal

small

Heffernan, Hardy &
Co., is chairman of the nominating
also

building

wares

into

which

aluminum

are

liquor,

30th

the

niversary of its founding, Baker,

with gains over 1953 despite

year,

bringing

Thomas J.

..

,

with

Coincident

-

has announced the following firm

requires

wide

ciated

which

NPA.

and

is

the

above

tioning
sales

16.2

35.3

stock

stock

Common

(where

areas

some

styne, Noel & Co.; and Albert G. ing in the industrial setup. There
Redpath, Auchincloss, Parker & are 14 paper mills and two pulp
Redpath, were nominated to three mills in the areas served.
The
year terms as non^-regular-memmills remained
very
active this

ahead,

of all the groups

in

well

Preferred

50.3

$52.1

sult that there are no REA co-ops

Albert

and to help in their
solution through the joint efforts

lie

a

%

Millions

debt

Long-term

was

alert the country to

One of

is

of Oct. 31, 1954.

is promoted for water

gas

electricity

only

as

selling on the Big Board
objective. around 21 % to yield 5.1%.
The company has intensively de¬
&
HAPPY
NEW
YEAR!
veloped its rural areas with the re¬

two year term

regular-member Governor

as

of

use

thinks that

Phelps.
Nominated for

average,

essing the basis of the local econ-

1950.

three year terms as

national

the

to

lairly

good showing considering the na¬
ture of the area and the fact that

age,

an

Governor since 1948 and served

Vice-Chairman in

close

1950, and 34%

The capital structure is as follows:

Annual

is

consumption

residential

heaters

boy in 1925, became

page

11%.

miscellaneous

and

together

Mann, employed by the old
York Curb Market (Ameri¬

Stock

can

to

presented

consideration

for

eco¬

policy, and domestic eco¬
developments, both from

point

be

vestment

foreign

defense,

Mann's

slate proposed by the mar¬
nominating committee,

would

from

result

may

a

s

rural), while commercial business
accounts for 14%, industrial 30%,

that

up¬

wholesale starvation and despair.

business may

be able to absorb for
of

in

advance

productivity but also of the
cultural and social problems con¬

other to make him save in a great

.

the

from

living

the needs for

Moreover,; when
-

economic problems arising

of the

and

somewhat farther
ahead,, we can expect new prob; lems. A rise in the standard of
Looking

Mr.

Mann

name,

pro¬

to

J.

John

longed,

which

McCormick,

stated

PQWKK « II.NT CO.
V

X---'

*

%Vv&*

-

\

v

•.

20

(2763)

V

The Commercial and Financial Chronicle..

Prior to that, he was President of
Lloyds Factors, Inc., and Actuary
the

for

American

Association.

Rabbit

divided

the

profits

bank's

be

Dealers

authorized by in writing a History of the Sav¬
directors to; ings Bank Women of New .York

was

board

effective

of

Dec.

26.

This step
increases the bank's surplus to
;> $239 million and
brings the com¬

•>.v'
if

if

Guaranty

"-iv"

if

Trust

bined

Company
of
appoint¬

capital and surplus to $350

New York announces the

million.

ment of Oliver

crease

R.

Brooks, Herbert

The
in

last

previous

surplus

made

was

transfered

from

if

.

Robert

W.

Parsons

has

been

Trust

Company

of

announced

was

Sloan

New
Dec.

on

President.

Colt,

York
2/

Department,
sistant

the Bond

the

in

uptown

when

he

Lines,

Vice-Presi¬

Director

the

Pattinos,

Chair¬

and
of

Board

Chas.

E.

Jay and
tion; etc.

Eliza

Watson
if

Founda¬

Bank
four

of

New

have

York

Vice-Presidents,

it

46th

and

Mr.

Street

United

Nations

undivided

stockholders

of

Corporation

posal

issue

to

preferred
of

Marine

a

Fifth

stock

in

the

$20,000,000, and also

in

the

authorized

from 8,000,000 to

retirement

of

Charles

is

H.

Diefendorf,

be

additional

in

of

that

the

issuance
shares

will

the

t]t

additional
reserved

be

#

preferred

new

series.

appointment

Lockwood

President

of

Company,
nounced

as

Flanigan,

Raymond
Vice-

Manufacturers

New

York

Dec.

on

of

Senior

a

30

Trust

was

an¬

by Horace C.
of the Trust

President

Jr.

bank

the

Vice-

a

since

1937,
and in recent years has been in
charge of its Mid-Western Divi¬
sion.
of

He

the

was

appointed

bank's

member

a

General

Adminis¬

trative Board in

September, 1954.
Mr. Lockwood is a graduate of
the University of Minnesota and
the

Harvard

Graduate

School

Business Administration.
Director of E. W.

Canton,

Company,
if

Lawrence

I;'
Lioyd

M.

McMillen

Wm.

J.

Wittman

dent

of

hattan
announced
Dec.
24
bv: N.
Baxter Jackson, Chairman. They
are: Samuel H. Cropper,
Reginald
was

K. Johnson, Jr., Lloyd
len and William J.
whom

ot

post

has

advanced

Assistant

of

These officers
the

bank's

Nine

elected

if

!|s

1946
B.

E.

New

Corn

York,

Dec.

on

been
Ex¬

it

was

29

by
N.
Chairman. They

Mr.

57th

Street,

Mr.

that

ton

Marshall

elected Assistant

Vice-Presidents;

George H. Devey, Kenneth Porter
and

Kenneth

Assistant

Robert

C.

have

and

John

C.

Foley become Assistant Managers.
All

members of

are

the

bank's

Metropolitan Division. Mr. Davi¬
former

son,

is

located

Fifth

the

Secretary,

34th

Street

at

Avenue

Ginness,
continue

Lyon

Office; Mr. Mcformerly Manager, will
to supervise the Broad¬

44th

at

way

Assistant

at

was

Street

Office;

former

a

Secretary at the bank's 30 Broad
Street

main;

Office

nue;

he

will

re¬

Mr.

Van
Gelder, former
Treasurer, will be at

Assistant
the

where

38th

Street

Messrs.

at

Seventh

Ave¬

Devey

former

Assistant

remain

at

the

and Porter,
Managers, will

bank's




100

Park

assigned

office

at

40

division; Charles Wege, Op¬

erations Supervisor of the Brook¬

Division; John C. Conklin,

member

of

the

Department

Bank's

and

the

a

Foreign

Frederick

P.

Jamaica, Queens of¬

fice, have been
Treasurers.

named
©

Vice-President; Dana R.
and Karl Henrich, Trust

Crocker

Officers;

Louis

Assistant
liam

E.

Assistant

New

Fales,

Board

John

York

of

W.

C. Luna

announces

Trustees

has

that

the

appointed

Mullarkey and Armand
as

Assistant Comptrollers

of the

bank, effective Jan. 1, 1955.
Mr.
Mullarkey has been in the
bank's employ since 1922 and Mr.
Luna since 1928.
*

Thomas J.

if

D.

pointed

*

*

New

nounced that
year,

the

as

Bernard

official

in

tional

an

Bank

York

has

an¬

of the first of the

staff

of

the

bank

as

Mr. Adnepos was

officer of Public Na¬
&

if

Hu-

if

Wilson

has

been

Vice-President

a

charge

4

ap¬

of

the

of

economic

research

publications,
it
was
an¬
Dec. 27 by John J. McClov, Chairman. Mr. Wilson, who
nounced

has

been

associated

Chase staff
ant.

was

with

organization
with

the

graduate

versity,

in

of

•

New

the

and

York

Trust

Company.

Na¬

New

York

John

28,

C.

a

of

Flanigan,
Company
27.

and

Mr.

member

a

if

President

of

that

announces

Blanue

John

C.

Bertels

Norris Oliver Johnson

the

also

is

official

is

a

' of

Uni¬

served

as

economics.

«.■

Genachte, formerly

of

the

Bank

in

served

Real

as

Officer

Estate

and ' Assistant

Mr.
of

Heerwagen

the

New

York

Society of Real Estate Ap¬

praisers and the Alumni Associa¬
tion

an

Mexican

Light &
joined the

Howard

W.

Miller

Riley

P.

a

v

Stevenson

of

Syracuse University.
Mr. Barbey entered the employ
of the Emigrant Bank in 1940 as
Real

a

1947

Estate

Inspector

appointed

was

and

in

Appraiser.
He atended New York
University.
Mr. Blaikie entered the
employ of
Emigrant in 1940 as a Real Estate
an

Inspector, in 1944 he was made a
Senior Inspector and in 1953 was
assigned as an Assistant in the
Bank's

Public

Relations

and

Ad¬

vertising Department. Mr. Blaikie
attended

the

American

Institute

of

Banking and Columbia Uni¬
He is a member of the
versity.
Financial

Public

Relations

ciation

and

nancial

Asso¬

Advertisers.

the

New

York

Fi¬

Waiter

Madden

Industrial

the

of

Emi¬

Savings

Bank

has also announced that the Board

Directors at

of

a

addition
2

oi

the

to

a/2 %

per

regular

divi-

for the

annum

quarter ending Dec. 31, 1954. With
the

payment

the

of

extra

Wriston

Bertels,

Norris

Miller,

Riley

Walter

B.

and

appointed
were

O.

Johnson,
P.

formerly

Mr.

Wriston

Bank's

is

Domestic

Bank's

is

42nd

to

the

Admin¬

group of

a

branches;
assigned

Street

divi¬

*

\

Branch

midtown

Stevenson

All

Vice-

assigned

istration, in charge of
11

were

Assistant
•

Bertels

W.

Steven¬

Vice-Presidents.

Presidents.

meeting Dec. 21.

announced the payment of an ex¬
tra dividend of *A%
per annum

B.

Howard
son

President
grant

aenu

F.

the

Appraiser and subse¬

an

member

a

in

Paul

University, be¬

with

Vice-President.

State

bec-

grad¬

a

and

He

Harvard

he

in

Syracuse

as

Assistant

an

Heerwagen,

associated

Appraisal

Com¬

of

University

of

where

and

McGraw-Hill

Washington.

instructor

an

Editor

an

the

the

Consult¬

Department

at

merce

with

Economic

as

formerly

Economist

Mr.

to

the

Madison

and

Avenue Branch; Mr. Johnson is
more than 320,assigned to \ the Economics De¬
depositors will have received*
partment of the Chase National in excess of $18 million in divi¬ partment; Mr. Miller is associated
with the Public Utility Depart-,
Bank of New York as Technical dend
payments this year.
rrient and Mr. Wriston, in addi¬
Advisor.
A
if
❖
native of
if
./v vy
Belgium, '•;
tion to being associated with the
Mr. Genachte is a graduate of the
Myrtle M. Hunt was elected on group
handling
the
Bank's
University of Brussels, holds an
Dec. 20 an Assistant Vice-Presi¬
Canadian affairs, is a member of
M.S.
degree from Massachusetts
dent of the Bowery Savings Bank
the Transportation Department of
Institute
of
Technology and
a
of New York.
Miss Hunt, it is the Special Industries
Ph.D. from California Institute of
group.
*
noted, is the first woman in the
!;!
sis
if
Technology.
Mr. Genachte began
his business career in 1935 with history of the bank ever to obtain
The National City Bank of New
this rank.
Miss Hunt came to the York
announced on Dec 29 that
Sofina, a utilities holding com¬
bank from Helena,
Ark., in July, permission
pany with headquarters in Brus¬
has
been
obtained

Power
staff

Company,

of

the

has

public

utilities

de¬

dend, Emigrant's
000

•

sels.

He

Mexican
to

associated

was

with

Light & Power from 1939

1945

and

again

from

1948

to

serving at vaiorus times

as

the

to

Chairman

of

the

Board,

Special Assistant to the
President and Assistant Treasurer.
From

1945

with

was

tinental

to

1948

Mr.

Genachte

American

the

1927 and worked as
Secretary to
Henry^ Bruere, First Vice-Presi¬
dent and Treasurer, later Presi¬

dent and

until he retired.

she

Avenue

and

Service

Com¬

Office

of

She
the

was

founder

a

Savings Bank

its

and

York

as

the

York.

as

Manager

Vice-President

Electric

Early
was

World Bank
a

as

Balteau

Genachte

on

Technical

also served

this

Corp.

in
Mr.

year

by
the
Power Consultant

two-month

mission

to

President

has
of

served

the

Bank

retained

Cey¬

lon.

has

been

years.

member

the

increase

served

$20

million

committees

which

surplus account of the Chase

transfer of that amount, from

a

the

Na¬

for

four

in

1954

Houston. in

at

where

she

the A.I.B.

un¬

meeting and served
of

the

of

she

of

in

National Bank of New York by

as

She

She attended the National

invocation
of

of
the

Committee

a

Office

Convention
tember

of

as

a

Sep¬

gave

the

member

Board

in

Cairo,
The Bank's Board of Di¬

has

plan

a

given its approval to
it is expected that

and

branch

Spring of
an

in

the

the

Middle

to

in

open

The only
bank

East,

it

of National

units

seas

will

1955.

American

total

58

in

the

branch

operating
will bring

City's
20

over¬

foreign

countries.
In
making the announcement
the Bank stated that the new
step
is being taken in
recognition of
the economic potentialities of the
and the

area

great forward strides

that

Egypt has made, agricul¬
turally and industrially. It is the

policy

luncheon" ment

Program Committee.

branch

Egypt.

of

1930

Reserve

Federal

rectors

the

to

the

establish

the

Association

among

to

1952,

1933-35.

many

National

Women,

tional

and

from

on

in

Women

■

from

Fifth

bank

if

An

Board,

the

to

the

Metropolitan Area

New

the

On Jan. 14,

transferred

was

he

Inc., in New York.
In 1952
joined lndussa Corporation in

of

work in Customer Relations.

Intercon¬

Trade

Chairman

pany,

Adnepos will join

Vice-President.

formerly

and Trust

December

on

The

of

of

of

Trust

*f

Mr.

and

New

Shanahan, President

of

Albert

Chase National Bank of New York

of

of the Federation Bank

Company

and

ber, Assistant Treasurers.

1952,

$

President of
The Bank for Savings in the
City
of

F. Geissler, Jr.,
Officer, and Wil¬

Trust

Herrlich

Assistant

DeCoursey

Mr.

Assistant

in

announced

III,

main

been

Secretaries, and

Mervine

also

Coe,

#

Foster

named

Bank

Street; John Horgan, Jr.,
Operations Supervisor of the up¬

Goelz of

been

E.

Bank's

W.

have

the

Wall

town

Vice-Presidents in its Trust

as

has

Broadway at

on

Bank

Trustees

quently

Stanley V. Malek

joined

Henry

the

A.

Gelder

Man¬

York

1929.

Jackson,
Stanley T. Davison, Arthur
McGinnes, A. B. Lyon and
Van

the

Malek, who is in charge of

B.

are:

that

of

New

Bank's office

lyn

Baxter

Bank

Patton

Twyeffort, and "B. Frank Pat-

Colorado

Presi¬

Frank

Department. Other year-end trust
promotions by Guaranty are the
following:
William
W.
Merker,

been

the

to

have

Chemical

by

Division.

\

.

officers

Bank,

announced

the

•

promoted to Assistant
Vice-President of the Bank.

all members of

Metropolitan

new

change

from

Vice-President.

are

if

has

if

Marshall,

Company,

announced

M. McMil¬

Wittman, each

the

a

Kelsey-Hayes
Detroit, Mich.

if

C.

is

Bliss Company,

Ohio,, and

Wheel

He

of

Directors

R.

of

uate

John

Mr. Lockwood has been

President of

of

J.

came

Company.
Johnson,

City

(510

Street)

C.

Madden,

York

retary.

Second

The
A.

i':

T,

New

liam

is

the conversion

upon

of

It

tional

has appointed
Heerwagen
a
VicePresident, Samuel L. Barbey, As¬
sistant Mortgage Officer ana Wil¬

substantial

a

2,000,000

shares

.

regular meeting of the

of

of

Company

Dec.

Director

a

Arthur

capital

banks.

the

Executive Committee.

Board

Presi¬

"it

corporation's

At

Board

Emigrant Industrial Savings Bank
of

series of preferred stock will

the

Office

43rd

the

if

that

invested

of

also

John

Midland Corpora¬

announced

at

on

stock

Marine

the

v -

joined General Cable
Corporation in February, 1929. He
of the

is currently
approximately
$14,000,000 of the proceeds of the

for

H.

Herbert E. Twyefiort

also approved.

was

dent of Marine

of

R.

Brooks

10,000,000 Shares.

system

Midland Banks

part

Cropper

R.

amount

common

by the

•

.

,

Schneider

Oliver

of

increase

an

of

,

Cor¬

appointed

Horace

announced

The proposed liberalization of the

common

H.

Avenue

President

achievement

of

years

organization.

com¬

commemorate

Advisory Board of

Avenue

York,

charge

Cable

been

.and .will

Secretary

in

Manufacturers Trust

pro-"

series

new

has

Fifth

25

will be published the

year

held

if

General

member of the

Midland

the

of

poration,
the

Office.

approved

if

Schneider,

Vice-President

Finance

at

special meeting held today

a

contemplated

Samuel

Karl

New

At

new

change

be

Broadway;

the

at

anticipated

if

Directors of Chemical Ccrn Ex¬

elected

will

J.

*

tion,

if

is

'

Inc., President, Treas¬
a director of the John

and

urer,

the

to

Street and

director of Seatrain

a

Inc.,
of

man

1944

charge of Municipal Bond

He is

sales.

16 Wall

Assistant

named

dent in

until

center

Bank's

of

He served

transferred

was

main office at
Was

manager

1929.

for¬

Avenue Office, and Mr.
Foley
becomes
Assistant
Man¬
ager of Chemical Corn Exchange

1922

Department at the Fifth

Avenue Office
at

sales

Foster,

Madison

Vice-President.

named

Mr.

165

at

Par¬

Mr.

the staff of Bankers Trust in
was

located

Mervine

previously As¬
He joined

was

Office;

Assistant Treasurer,

mer

S.

oy

who is with the bank's Bond

sons,

and

it

Avenue

ing

in

profits.
elected Vice-President of Bankers

which

in¬

December, 1952 when $30 million
was

.Thursday, December 30, 1954

prises
the

of
to

the

Egyptian

encourage

to

new

Miss Hunt is presently
engaged:; hance the

operate
branch

Govern¬

foreign enter¬
in

will

Egypt

and

further

en¬

ability of National City

Volume ISO

to

Number 5390

the

serve

Ameri¬

of

interests

clients doing

can

The Commercial and Financial Chronicle

.u

.

business in the

j

National

foreign
Bank

City

established

visions

the

of

Act, at

under

and

the

Cairo
in

the

Earl

The

the

of

new

announced

be

Harkness,

Yoik

President

Savings

City,

of

Bank

of

that

announced

Vice-President

bank, effective Jan.
Aiken is now First

intendent
New

of

of

the

1955.

1,

of

Mr.

Deputy Super¬

Banks

York.,

of

the

State

sjs

if

/•'_

;

•.

..i

■'

Square,

the

N.

recently an¬
chapter of

Y.,

that the final

nounced

consolidation

Franklin
•Nassau

the

between

National

the

and

Bank

National Bank

County

of

Rockville Centre, N. Y., would be
written
of

17

Dec.

on

close

the

at

when the two insti¬
merge under
the

business,

would

tutions

and charter of the Franklin

name

•National

of

sources

•time it

The -total

Bank.

Franklin

the

at

that

would

be

over

stated

was

re¬

12 banking ofthroughout
the

•$300 million with
•fices

located

It was indicated that the
•tentative plans announced several
•County.
weeks

have

ago

-pleted.
tions

continue

will

ducted

Rockville

Schneider

-A.

Vice-President

of-

Franklin

the

tion

charge of the Sta¬
Office.
All members

Plaza
the

"staff

retained

are

National
their posi¬

County

Nasau

in

Alterations are now under¬

tions.

to
completely modernize the bank¬
ing quarters.
The Roosevelt Ofat the Station Plaza Office

way

continue

will

.fice
.•

the

under

pervision of Kenneth

su-

Soberg and

the Uniondale Office will be man-

Wiliam

by

„aged
.Frank

Horchler,

Breitbach,

W.

he

appointed
a
Fiduciary

was

the

of

Bank

Committee of the Trust Di¬

Fund

vision

the

of

York

New

Association. +

Bankers

Jr.

Vice-Presi¬
will

dent and Director of the bank

be in charge of the Sunrise High¬
Office.
A previous item re¬
garding the merger of the Nassau
County National Bank of Rock_ville
Centre with the Franklin

i

way

State

in

appeared

Bank

National

our

issue of Nov. 25, page 2160.

.

if
-

J.

-of

Mineola,

County, N. Y.,
Roth, President of

Franklin Square, N. Y.
on
•

have

Directors

proved

that

22

Dec.

announced

their Boards of
unanimously ap¬

consolidation

the

of

Bank,

National

Franklin

"the

of

Nassau

Arthur T.

and

Bank

of

and
charter of the Franklin National
Bank.
Letters are being mailed,
their

under

banks

by

signed

Mr.

the name

Valentine,

shareholders of the First
Bank

of

Mineola

to the

National

announcing the

proposed consolidation which is
subject to the approval of the
shareholders of both institutions

Comptroller
of the Currency.
Application for
consolidation will be made to the
and the Office of the

Comptroller of the Currency after
1, 1955 and it is expected that
the consolidation will become ef¬
Feb.

March of 1955. Mr.
koth stated that Charles H. Kelleher will become Vice-President in
fective during

charge of the Mineola
%

%

office.

School

ministration

of

Business

Ad¬

and his Ph.D.- degree

Business

James

elected

Company

of

Syracuse, N. Y.




By H. E. JOHNSON

■

Dominion

Toronto)

meeting

the

gamation with

The

on

Bank

Administration

from

Prior
joining the staff of The Mer¬
Bank, he was a Professor
of Finance in the College of Busi¬
ness
Administration at Syracuse
University and continues to teach
a finance course at the University

approved

Governor-in-Council

addition

Merchant

his

to

He

Bank.

vestment

duties

notice

application

intention

of

is

permission

for

is

member

a

of

plan

Nov.
In

of

articles

many

author of

also the

-investments

on

presenting

Toronto
banks"

the

lion

and

total

Rae,

who

#

Ogdensburg Trust Company, of
York

the. death

nounces

of

President,

McEwen,
1954.

;

.

an¬

Robert

H.

23,

June

on
.

assets

It will

mated

453

of

$1,132,busi¬

branches, said Mr.
that

least

at

it

is

10

esti¬

ofithe

95%

stock

of

the

Genesee Valley

I'rust Company of

Rochester,

Y;

quired

N.

has

been

ac¬

Marine Midland Cor¬
poration of Buffalo, N.
accord¬

ing

by

branch development will be saved.
He

that through the
The
Dominion

suggested

amalgamation,
is

acquiring

corporation.

The

acquisition was^a.ccomplished by
an exchange of si|)ck on the,basis
4%

each share

stock

cojpmon

of

capital stock of the

Valley ..Trust

Genesee

for

Company.

previously announced, Genesee

Valley Trust Confpany will merge
with
Union
Triist Company of
Rochester,

bank,

257

branches,

name

of the Genesee Valley Union

Trust

Trust

Company.Genesee

Valley

Company hpw operates four
in the City of Rochester
Spencer-

offices

offices in Lima and

tal

will form

bank with to¬

a

approximately

of.

resources

operating 22 offices
in Rochester and the surrounding
million

$194

After this merger has

area.

out

in

Ashforth

noted

deteriorated.

essential

the

big

and

if

if

been

Marine

10

...

30

the

of Yukon,

by

a

"

^

give

Ashforth.

Mr.

standing
all

than

up

fect

on

5kla.

of

a.

and

the

mercial National Bank in

consolidated

port have

The

office

main

branch

formerly

Com¬

uftder the
the

operated

in

Shreveport by Continental-Amer¬
Bank

be

Trust

and

operated

Commercial

Company

branches

as

National

Bank

by

the

Calif.

the
in

of

on

m

of

retirement

43

join

the

Board.

who

will

be

an

Court

of

him

invite

date

First

Dec.

28

of

&

David

Beath

at

by

II.

on

of

India,

have

and

The

Aus¬

C.

U.

377 >+

89 Vs

111.

+ 16

+25.6

78%

+ 54

+25.0 312

+/5%

+10.1

+24

+21.1 138%

+ 13%

+31.6

55%
307

+

+

-

3%

•

61% 1
207

r

47%

58

108
39%

60%

9.3 309

+ 10.8,

*

276
32%

39

60%

48%;

+ 10%

+21.7

305

+ 43

+16.4 326

100%

+ 14

+16.2 100%

85%

75%

47%

60%

49%
262
86%

Nat'l---

+ 26

38%

34%

Chicago

Continental

291/g

137V2

Nat'l, Boston

Nat'l,

+26.1

57%

281

First
First

6

42%

of America

83%;

22% >

+

113%

Trust

+18.4 107

+ 16%

270

52

Y-

61% :•

75

78%

62 %

Trust

+13.0

29

216

National

S.

105%

23

Bank

261

<

x

Security First Nat'l
(L.

A.)

+27%-- +57.3

75%

48

—_

of the shares listed in the

All

The

tabulation show sizable gains..

largest point change is that of Bank of New York, followed

The

closely by J. P. Morgan and First National Bank of Chicago.

high

relatively
this

for

less

than

issues.

other

the percentage gain of Public

the largest, exceeding 30%. Several

are

gain for all of the banks listed, however, is that of

The largest

Security First

of Los Angeles.

National
the

Undoubtedly

stock

the

of

some

close behind with gains of close to 25%.

are

57%.

for

Empire Trust

gains

shares makes the percentage

the

the New York banks

National and

others

price of

group

Among

action

of

the

Here the increase was

directors with

respect to

splits and dividends has had a lot to do with the very favor¬

able market action.
After

that

Bank

has

part

In
are

25%

a

Early in 1954 the stock
stock

announced

of

a

dividend
33%%

subject

1955

to

was

was

split two-for-one.

distributed.

Recently the

dividend will

stock

approval

be

paid the

stockholders

of

at

the

spite of the advances made over the past year, bank stocks

one

offer

a

the

of

few

among

groups

reasonable return.

continue to seek suitable places

agers

able

These

DtG. has approved

appointments take effect on Jan.

Gcscker First Na¬

1,

^invest funds at reason¬

yields.

HAPPY

YEAR!

NEW

Wayne Jewell in Denver
(Special

to

The Financial

BANK

Chronicle)

DENVER, Colo.—Wayne Jewell
has

and

1001 Logan
engage in a securities
Mr. Jewell was previ¬

opened offices at

Street

to

ously

with

Walston,

Hoffman
I.

Goodwin

and

Francis

in

San

INSURANCE
STOCKS

&

du Pont

Francisco.

Co.

Laird, Bissell & Meeds
Members New York

O. J. Martin
(Special to The Financial

Inspector.

investment equities, that still

For this reason, we would expect that

the market for bank stocks will continue firm as investment man¬

R.

Managers and Dundas Peacock to

1955.

+13.7 444

8%

+

73%

appointed

Stafford

that

Office

+ 52

City

York

Chronicle)

Stock Exchange

Members American

Opens

Stock Exchange

120

BROADWAY, NEW YORK 5, N.
Telephone:

Colo.—Otis J. Mar¬
engaging in a securities

DENVER,
tin

is

business

,

1

432

65%

Morgan, J. P.

Public

43%
119

Manufacturers Trust

New

52%

7.8

+

+30.6 160

Irving Trust

National

3%

+ 37

Bank

Hanover

Northcote to be Assistant General

Head

367

158

Guaranty Trust

F.

Na-

be

+15.0 450

380

National

First

to

short

a

f

121

Empire Trust

Cockburn

Directors

China

+ 57

Low

33%

49

43%

business.

of

High

+21.9

+

.

Mr.

Bank

436

Gain

8%

51%

will

visit to Malaya.
The

Change

+

48

Cockburn,

succeeded

early

379

Chemical-Corn

is

General Manager, will leave Lon¬
at

47%

Price Range

45%

Morford, at present Deputy Chief
don

1954

38%

National

Following his
the intention of

to

1954
Point > Percentage

Dec. 29

57

India,

Manager,

•

splits.

+24.7

and

years' service

is

it

Directors

the

R.

-

individual point and percentage changes for

+ 11%

15, 1955 after com¬

abroad.

tralia

Crocker

announced

merger

over

most

a

presented

56%

&

*

Chairman

Comptroller'of the Currency

Washingtaii,

the

a

Crocker,

Board

pleting

Chartered
*

W.

General
Jan.

home and

in

Shreveport.

W.

on

a

Shreve¬

and

Chief

the

1954,

table

annual meeting.

Bank

W.

that

the

In

45%

Canad¬

in

equities.

York and the

for

Chase

China

&

the

20%

to

62%

*

Chartered

these

for

New

+18.1

(head office
38, Bishopsgate, London, E. C. 2)

retire

charter and title of the latter. The

former

%

%

announces

Shreveport, La.,

System

reflected

^

months.

12

9%

is almost

it

close

averages

past

+

business.

Australia

show

early

sustained
be

cities

the

shares in

62

ef¬

an

thinking

comparison

a

52%

He said that if the
in U. S. economic

to

over

bank

showing

we

even "

Bankers Trust

improvement

in¬

State bank member of the FederaL
Reserve

business

is

gain

the larger

for

Bank of New York

rather

this has had

and

gain

Bank of Manhattan

Ashforth

downwards

gained

Bid Price

business ac¬
that the over¬

was

was

substantial

1953

about

fact

trend

have

a

•"Dec. 31

"Perhaps the out¬

tivity in 1954

,

units

large banks between the end of 1953 and the current prices
together with the 1954 price range. Figures have been adjusted

complete picture of the
climate,"
according
to

a

stable

as

and many individual stocks
than bank shares.
The Dow- "
a gain of over 40% for

individual

many

for stock dividends and stock

business

Mr.

of

in

21

"Statistics by themselves do

said.

thought

are

percentage basis is not an accurate comparjit is recognized that industrial stocks as a group

sizable

below

economic

for

levels

groups

percentage

that

on

so,
a

creditable

fcirst Na¬

The Continental-American Bank

Trust Co.

ahead

markets,"

foreign

certain

$50,000 to
dividend of

stock

if

&

other

is to improve
competitive position in

Canada's

creased its capital from

$100,000
$50,000.

market

export

continued

task

activity

Nov.

Bank

The

government

ian

Effective

had

traoe

export

highest

However, it must be remembered that such
averages

He emphasized that

to

indicating

Even

the

that

expanding

an

many

the

of

their

near

customarily
fluctuation

little

larger

a

son..

1954 was not an expansive
force, our export position having

State.

if

tional

be

are

the

of

that

true

with

iff

planning."

York

New

be

communities

64

will

Officer

Executive

operating 136 of¬
through¬

banks

Midland

fices

will

there

effected

who

stocks

showing

record

is

1954

institution, stated that the
amalgamatio'fr* does not involve
any change in policy.
In discuss¬

business

$62,750,000. This

were

It

more.

new

not

merger

ac¬

additional branches.
an amalgamation can

arid

the

have -risen

Manager of The Domin¬

total

assets

is

disturbing to customer and
relations, A. C. Ashforth,
Bank

bank

shares

instances close to all-time peaks.

Jones Average of Industrial Stocks shows

staff

General

bank

many

price from time to
past year shows that bank^ stocks can
be quite dynamic investments under certain conditions.
time,

Mahne Midland growth. "Not only do we need to
3lfl954. under the push sales in foreign markets, but

a

Dec.

on

Although

investments

of^Marine Midland ing business trends in Canada, Mr.

shares

Corporation

As

be

an
annpdncemS&t made
by Charles H. Diefendorf, TGhief

to

President of the

of

quiring 196
Noting that

ion

Dec. 27

in

years

while The Bank of Toronto
Over

»

result

a

and in

bank

commence

stated

that

Bank

*;

.

amalgamated

shows deposits in excess of $1 bil¬

periodicals.
*.&•

of

small

they "have ex¬
perienced the penalty of smallness."
The
pro
forma balance
of

As

of the year

to

that

and

with

New

proposal

"relatively

are

054,130.

Ogdensburg,

the

Dominion Bank and The Bank

ness

'\w'

month.

have

28, page 2048.

published in nationally circulated
h

of

issue

our

shareholders and in outlining the
reasons
directors
recommended

Analysists. In 1940 he earned the
sheet
degree of Chartered Life Under¬
He is

Details

given in

were

ident, pointed out that both The

the New York Society of Security

writers.

to

amalgamate must be given to the

In¬

an

Adviser-registered with
* and
Exchange
and

an

for its adoption, Robert Rae, Pres¬

Securities

Commission

of

Bank Stocks

—

stocks

throughout the country have been moving
higher in recent months reflecting favorable dividend action and
expectations of record earnings to be published in the coming

.

weeks

Four"

the

at

Banks

're¬

is

quired to make it effective.

Governor-in-Council.

the

To¬

proposal at their meeting the
previous day only the approval of

the

in

of

(head office Toronto), ap¬
proximately 90% of the outstand¬
ing shares having been voted in
favor of the plan.
Since Bank of
shareholders

This Week

at

Dec. 22,
proposal for amal¬

chants

ac¬

announcement made
by Crandall
Melvin, President.
Dr. Close joined the staff of The
Merchants Bank in 1952 and has
been promoted to his present po¬
sition from Trust Officer.
He has
cording to an

•

<

The

to

will

A. Close has been
Vice-President and
In¬
vestment
Officer
of The
Mer¬
chants
National
Bank & Trust
Dr.

annual

the

Masters

ican

&

Dec. 16,

on

sji

of

office

(head

their

port, N. Y. As of .Oct. 7 the bank's

President

National

First

the

Bank

Yale University; his
degree at the Harvard

at

Graduate

and

if

if

Valentine,

Alfred

if

*

Shareholders

Close received his Bachelor

Dr.

Bank and Insurance Stocks

special

at

merger

meetings

Dec.
banks

1954.

Toronto

..

-

;

both

the

degree

a

will be in

and

of

elected

been

effective
of

ronto

Warren

Centre.

has

Of¬

the

shareholders

approved

con¬

Shore

Plaza

Station

the

and

be

to

South

the

both

at

Office

fice,

been combanking func¬

now

Complete

Calif,

Shareholders

;

approved

also

has

the University of Michigan.

Arthur T. Roth, President of the
Franklin National Bank of Frank¬
lin

31.

21

National Bank-of

The

Mateo,

ing at Rutgers University, where
has spoken on "Investments."

in

-

v

he

he

Donald H. Aiken has been elected
Assistant

on

San

Commercial

a

addition

as
^ Guest Lecturer
Graduate^chool of Bank¬

the

at

of

School

chosen,

been

member

■

#

-t

Greenwich

New

1914.

In

a

tional and

Recently

will

■f

been

faculty of the Pa¬

Graduate

Bank."

future.

near

Coast

"Earning Assets of

and the date

site

exact

branch

has

Banking where he has lectured

pro¬

cific

Reserve

working out de¬

now

tails of the opening

he

summers

member of the

in

Aires

two

of

the

the

any

Federal

Buenos

A staff is

-

of

charge
Durfng

the first
National

opened

branch

in

Officer

Investments.-

Trust

last

.Middle East.

the

been

(2769)

from

Downing Street.

offices

at

2130

Bell

T.

BArclay 1-3500

Teletype—NY 1-1248-49

(L. A. Glbbs.

Manager Trading

Depi.)

Specialists in Bank Stocks

22

The Commercial and Financial

\

(2770)

By SOLOMON BARKIN*
Director of Research
Textile Workers Union of America

in this country are relax¬
giants/' cautions against tol¬
eration of big business. Says trade unions recognize big busi¬
ness as a threat against well-being of the mass of Americans,
but denies that "Big Unions," themselves are monopolies or
hindrance to public welfare. Holds executives of big busi¬
Trade union economist, claiming we

ing vigilance against "economic

a

only control

not

ness
-

dinary

economic life, but exercise extraor-

our

prevalence of a competitive so¬
ciety, we now hear broad claims
of
the
indispensability
of
big

government's success in pro¬
moting
high employment and
stimulating national and personal
The

a
jfiCation

.

..

corporations.

not/become

advancesvshouId
pfty'- ■

"

for

f

glorifying
business

b i g

relaxing

or

determi¬

our

dis¬

nation

to

solve

aggregations
economic

They

the

cor¬
nerstone of America's wealth and
;

are

The former evils, it is
have either disappeared

progress.

claimed,
been

submerged
structive results of

or

these

of

political institutions.

over our

powers

by the con¬
their opera¬

tions.

issue

technical

One

The

sists.

apologists

still

that

argue

concentration

industrial

per¬

is

not

great as it was at

the begin¬
It has grown

power.

Indi¬

as

vidual

well-

being

and

ning of the century.
absolutely, but has not kept pace

confidence, re¬
alized through

with

20-year bat¬
tle
against

better

a

m o

Barkin

Solomon

h

lit hie

o

business bu¬

in danger as a result
of their success in regaining pub¬

reaucrats,
lic

are

prestige, prominence and
power.
Apologetics

litical

temporarily

divert men
appraise the soundness of
fences.

But

in with the "Eisenhower 'Adminis-

tratkkri ilts objectives are to re^
chide governmental activities and

production schedules are
designed for specific business ob¬
jectives, including maximupv prof¬
innovations are introduced
government plants and equipment, its;
when older products or processes
and management contracts to op¬
become a business drawback or
erate government properties and
research.
These financial privi¬ when industrial prestige dictates.
leges permitted them to grow, to Whatever the decision, it is de¬
become enriched and
to master liberately reached on review of
the art of large-scale management
benefits,
rather than
forced
Of production.
through competitive pressures.
National efficiency is no necessary
The failure of small .business,
the special small business agen¬
byproduct. The major decision¬
cies within the government and making authorities are highly cen¬
tralized in corporations, and the
the Congressional committees to
get a reasonable share of govern¬ costs of ineptness and bad judg¬
ment are huge. Many of us would
ment
work
for
small
business
with considerable docu¬
speaks eloquently of the vast eco¬ argue,

supervision^ tree big business of

ti^ de¬

on

organizations for united

action such

justification
tions

of

labor unions

as

for

no

concentra¬

vast

economic

are

The

power.

countervailing forces are limited
in scope and not equal to the
challenge of balancing corporate
power,

We

.v;:

relaxing our vigilance
the economic giants at
time when other countries, such
are

against
a

Great Britain and

as

Canada, are
philosophy and

adopting the
techniques of our

anti-trust

attuned

Contributions

The

mtirin
thatf

was

big

This

profoundly convinced
business organizations

aided and abetted the totalitarian
In

aggressors.

other

they had established
the

upon

countries

tight grip

a

which

economy

in¬

hibited

expansion. This country
long history of public
suspicion of big business.
But
has

we

a

are

now

institution

urged to tolerate the

and

relax

inade¬

our

quate restrictions because

our na¬

tional

a

has,

economy

for

time,

operated at full
employment levels.
•The

.cannot

American
accept

high

or

trade

this

-short

unionist

position.

He

recognizes in big business a
formidable threat to the well-

being of the mass of Americans.
Despite the temptation for the
trade

„

union

from

this

movement

battle,

to

to

retire

collect

the

tion's power, even

in

the

area

of

relations.

erations

tion,

ac-,

knowledged.
I ment
our

\ its
J
•

i

We

that It

in

agree-

is

economy.

power>

are

a
major force in
Instead of denying

and

protesting

the

*An address by Mr. Barkin
on

Values

in

the

at
the
American

)Yel,e8|ey College, Wellesley,




ration?; and, theirsuccessful .liai¬
the

with

son

latter

these

Frequently,

authorities.

military
the

procurement,,and
recruited

were

large businesses

very

dollar-a-year basis.
Our
past experience
the

conclusion

industrial
ulated

from

that

on

giant

would

not

the

rate

of

change would be stim¬

been

able to operate our war economy.
This defense

trived,
Dr.

sounds quite con¬

coming

at

Lawrence

R.

director
of

the

time

a

when

Hafstad,

for¬

of reactor devel¬
Atomic Energy

Commission,

bluntly
informs
management that it has neglected
the

utilization

for

peaceful

dustrial

of

atomic

research

energy

Postwar

uses.

vvas

in¬

largely fi¬

nanced

by the government, al¬
much of the work itself
corporations on con¬
tract with the government.
The
development
of
consulting
re¬

though
was

done by

search

institutions

facilities

in

as

well

as

the

universities

ready to
accept contracts from private in¬
dustry
and
government should
help explode the myth of any
Special research competence on
the part of the big corporation.
The real
complaint is that in¬
dustry's concentration on practi¬
cal

problems

progress

Big

has retarded our
the pure sciences.

in

corporations

have,

in

the

past, been associated with restrict-

tive„.praCtices and cartels. The in¬
vestigations of the Temporary Na¬

Must

we

not,

other

World

War

mentary

The

small

of

numbers

existence

concerns

of

mar¬

new

that

support,

big

investments
tors

in

the critical fac¬

were

precipitating

far

their

beyond

reaches of
The

the

corporations
with

men

governed
interests and

are

wide

in

other

enterprises.

Cases have been paraded of inter¬

officers

locking

relations

ness

of busi¬
prices and
enterprises.

course

the

and

related

of

directors

and

helping decide the

Understandings and concurrence
policy and action are further
by the use of common

of

promoted
service

agencies, such
experts, lawyers,

tax

labor

relations

consultants.

as
banks,
engineers,

and other
these di¬

men,

But beyond

rect

influences, we must recog¬
nize the vast empires of suppliers,
dealers and purchasers dependent
upon
these business giants and
subservient to their interests.

whose
nates

voice

small

a

dictates

interest

their

of

Their fi¬

are

generous

controls. Mem¬

own

of

boards

directors

find

guiding business to their

even

broadly than at
public function.

more

ent to be

continue

to

a

pres¬

contend that big business
tends necessarily to be more effi¬

they

The

recession

current

has

abundant array of
large companies in fi¬
nancial and competitive difficul¬
ties because managerial ineptness
had left them unprepared for cur¬
provided

an

of

names

rent

problems. Many mergers and
purchases of corporations are in¬
spired for reasons of tax advan¬
tage, financial manipulation and
personal self-interest, rather than
the attainment of the optimum
size of enterprise.
Evidence is
that

abundant
of

production

smaller

desirable

the

units
those

than

of

is

size

much

the

very

large corporations. The economies
of centralized management can be
attained

in

units,

large

smaller
as

than

current

witnessed by the

drive for decentralization

of

cor¬

porate activities.
management is unable to
operations in big business
enterprises on the basis of inti¬
mate knowledge. No one can argue
that the wide diversity of prod¬
ucts of the giant corporations are
essential for their efficiency. They
serve primarily to perpetuate cur¬
rent property owners through use

Top

of monies which would otherwise

have to be paid as taxes. A study
of the history of these large firms

their

that

vited

by

the

position

was

gained through earlier mergers
rather than any special record of
efficiency.
of

If

support for big business can¬
not be convincingly developed on
the basis of its particular capacity
for innovation and

efficiency, the

with

sional extra

dividends.

arising at

the stockholder is
of

to

truly

democratic
alarming. Big

our

The vot¬

a time of crisis,
given the choice

surrendering his judgment to

one or

the other group, as

peals

are

platforms
ters?

ap¬

by

or programs.

of

era

whom

to

referred

are

released
The

advanced

stock¬

relations, he is treated

outsider

cisions

an

the

buttressed

The char¬
the stockholders few
to initiate or review. Even

this

holder
an

the

to

large

their' command

at

resources

to secure favors.

The results have

justified the effort.

Government

contracts, grants for research, cer¬
tificates of necessity,
financing fa¬

cilities* plant structures/wind-fall
profits and accelerated deprecia¬
tion

privileges

have

balanced the costs.

than

more

Direct appeals

to the

legislatures have brought
special tax gains for the large cor¬

porations, witty, resulting more lib¬
eral depi;eciati6p allowances and
other

tax benefits

Vexed

the

by

prevailing,

disapproval

his¬
bigness in

of

the United States these

embarked

have

men

campaign to re¬
store their prestige andrinfluence
in

on

a

cultural and communal life.

our

The law has

given them ample re¬
since tax exemptions en¬
the corporate officials to
spend public funds for ; educa¬

sources,

able

tional

civic

or

purposes

so

to

as

build. up recognition and power.
Their own payrolls carry many
skilled persons prepared to sell
the public on the big corporation.
The multiplicity of recent
books/"
including those providing no per¬
sonal advantage to the writers,

speak of the

of current ef¬

scope

forts

at

was

reached

promoting
public ap¬
proval. The crest of this campaign
when

President

Eisenhower pronounced in his an¬
nual message that "size alone does

preclude

tion/'

effective

Others

business

have

with

their

high

need

for

pansion,

competi¬

served

big

rationalization

for

prices

the

with

polemics for
valuing inven¬

stressing
self-financing of

or

"lifo" methods

of

ex¬

tory and price adjustments on as¬
sets.

Their efforts to win public ap¬

proval
cism

would

not

if business

criti¬

warrant

enterprises

were

public relations institutions. They
are,, however, chartered for pro¬
duction and sales
ness

ventures

or

and

specific busi¬

not

as

educa¬

tional,. political • or propaganda
agencies; organized to direct our
political and social thought. The
Corrupt Practices Act prohibits
contributions to
political cam¬
paigns.
of

Are not these- other

*

tax-exempt funds and

uses

corpo¬

rate-, income, most often without
s tockholderappro va
1,equally • un¬
justified or irrelevant to the func¬
tions of the business enterprise? ;

as

by

On

The

raised

above

truly

usually
privately
small clique, af¬

with others in the "man¬

Most of the lim¬
powers

are

use..

developments have

serious

wisdom

is

Counter¬

and

Big Business in the United States

are

a

the managers'

Competition

they

public.

agement class."

Are

vailing Forces Enough to Balance

de¬

corporation

interest,

controlled

its

dous

select

as

institution endowed with pub¬

lic

influence legislators and
administrators reflect the tremen¬

give

powers

in

never

doubts

made

as

to

the

derisions and the

of the
of

the

concentrated

economic power held by the man¬
agers of

big business.
life, we have

litical

with., which

to

In our po¬
the means

counter-balance

their influence &nd ambitions for

domination. True, the

vague and not truly restrictive.
They have little to answer for as

long

the enterprise is profitable
are regularly paid.

cial resources,

executives

tion.

struggle for

real

as

and dividends

The
trol

not

economic

our

these

only

life

con¬

through
exercise

corporations, but
extraordinary powers on political
institutions.

political democracy is not an
equal one because of their finan¬

In

influence

over

the

channels of communica¬

press and

know only too
well the devious techniques used
to infiltrate both parties, though
fact,

we

predominantly the Republican.
Individual

True, under the New

freedom

and

our

of
free
Deal, they lost out in significant traditions
speech
and
areas of our national
government, thought have served to protect us

and the reaction to the depression

them
in

out of dominant po¬

state and local
But persistent ef¬

many

governments.

fort and generous financial assist¬
ance and gratuities have re-estab¬
lished their influence at the local
and

state

endear

levels

the

in

our

fairs.

cultural and communal af¬
But

even in that area, the
extensive employment or endow¬
ment of professional groups by

big business has distorted the per¬
spective of many members of such
groups. The battle to preserve in¬
dividual independence is a con¬

sufficiently to
tinuous
principle of state's

to recapture the

axe

occa¬

ing machine is controlled by the

abuses and the problems big busi¬

presents

kept

are

"inside" management. Even in bat¬
tles between conflicting financial
groups,

forts To

.

rights. After

privilege of society

men

regular and

abundant evidence of dangers and
ness

supply
who hire

They

management.

sitions

Big Business

to

management

satisfied

swept

Abuses and Dangers

fi¬

ov/n

Stockholders

rather than

money

Public relations programs, lob¬
bying expenditures and special ef¬

rewards "in

greatest

affiliates.

often

to be more like people in¬

filiated

direct

shows

nancial
appear

The spokesmen for big business
are
not on strong ground when

cient.

their

domi¬

usually small,

rewards

through their
bers

is

group,

and

policy and action.

nancial
but

by

decisions

'

not

The large corporation is usually

administered

research

have

ex¬

corporate confines.

own

large

by

influence

transfer

one.

What have

upon in
Competi¬
istration, starting in 1936 with the tion.-among producers or sellers
Liberty League, big business rode has- been severely- restricted - as a
an

arduous campaign

Federal Admin¬

*

froni government to its provinces.

toric

economic

Their

restraints* arid

great

our

disaster of 1929.

being dependent upon a specific
large
corporation.
Fundamental
mpy

busi¬

policies pn prices, wages :ai}p

ness

volumes

Therefore, look to

II, the

choice;

pendent of its size.

The fact that

of

now

are

influences

than

large-scale
business for the peculiar stimu¬
lants to the progressiveness of our
economy? May it not be that the
very contributions by big corpo¬
rations were encouraged by spe¬
cial privileges and the, competi¬
tive advantages granted thenrv by
the government? They were pri¬
marily responsible for obtaining
for business at the beginning ot

types

the
existence
of
a
greater
multiplicity
of
enter¬
prises.
The new industrial era
makes research
indispensable to
the life of a business, quite inde¬

products attests to this
conclusion. But they are no com¬

corpora¬

Prices

tends

supports

by

keting

have

ditional

a

new

the

of

we

factors

The recent efforts to
popularize
W.g business have set at rest one
issue.
Its existence is now

/

Big Business

special fruits of negotiations with tional Economic Committee had
big concerns or to discourage the much to reveal of the repressive
diversionary, baseless political effect of large aggregates of power
counter-offensive against "Big on new innovations.
In other countries, where
Unionism," its national leader¬
the
s'dp, almost alone among the or¬ competitive tradition is less
ganized interest groups, has con¬ strongly established and the gov¬
tinued
steadfastly to support curbs ernment is less vigilant, we can
ou
big business.
No
real trade ascribe part of the prevailing eco¬
unionist
can
give credence
to nomic stagnancy to the lack of
professions that unions are
venturesomeness of the large, es¬
capaijle
of
matching the corpora¬ tablished corporations.
industrial

of the large corpo¬

power

defense of
petitive match for the corporate
big business is its alleged capa¬
giants.
city for developing, financing and
The increasing
availability of
installing industrial change. The
competent research men permits
big corporations are better able of their use
by a broader range
to
maintain
research
facilities, of concerns. The
multiplication of
finance
the
experimental
and research
agencies for special fields
pilot operations, and market the reaffirms our conviction that busi¬
new
products.
America's indus¬
ness,
the government, and the
trial
progressiveness is equated universities can develop new re¬
with big business.
Without the search organizations to serve an
experience coming from the op¬
industry or process users, without

opment

governments insistence.

eco¬

Questioned

principal

merly

our

of

Be

Must

and

Others, like Japan
Germany,
are
restraining
monopolists or cartels at

measure

nomic

job.

movement.

their

to

for

large corporations contrived, with
nomic domination in our age, can
government assistance, to get an
readily establish that its relative
early start, is no basis for believ¬
position has not dwindled and
ing that they alone are equipped
has possib'Iy grown.
for
this

may

analysis, these ar¬
guments melt away, as inadequate.
Citizens'

growth of our economy.
However, statistical measures,

po¬

Jhey

as

the

the

eliminated

has

tra¬

depreciation, as the
conversion to military
production. They obtained a dis¬
proportionate share of the pro¬
curement contracts, certificates of
necessity
for new construction,

'price

Critique of "Big Business"

business!

competition.
set by deliberate

accelerated

A

Chronicle;.'.Tfi^rsday, December 30, 1954

our

economic

we

to rely

society?

Volume 180

Number 5390...The Commercial and Financial Chronicle

(2771)
restraining and controlling influ¬
A vast number of

ence.

kets,

defined

own

our

tests,

are

producers

or

The

one's

some

were

need

for

terms

or

over
long and short pe¬
riods, and other factors of policy,

of

of

such

labor

trade.

prices.

most vocal on the
competition, have ob-

governmental

v

price fixing,

as

turns

the

the resale price maintenance laws.
With competition
widely recog¬
nized
by
the
consumer
as -no

1929

depression had al¬
ready "reduced its stature, feut, at
the

beginning of the forties, new
responses
b e c a m e
- available,
heralded by J. M. Clark's essay "on
"Workable
Competition."
Since

level of the

items. Com¬

successor

will

and

force

with

volume

the

and

increase

in

importance

the

of

dis¬

cretionary buying, driving down
prices and stimulating efficiency.
While advertising and other nonprice appeals are the principal
leverages, the long-run effects
price are favorable.
The results of economic

than

rather

the

form

of

on

activity,
business

organization, must be the test by
which to judge business perform¬
ance.

"Workable

must

substitute for

tition."
not

But

•

competition"

the

supplied

"pure compe¬
theorists

with

us

vent

tests of "workable competition" or
means of measuring the
degree of

decentralization

often

in

past,* formaligtic cri¬
as uniform prices ob¬

in

competitive

a

employed

are

listic

Too

power.

the

teria, stich
tained

of

market,

to justify monopo¬
without looking

behavior,

behind the economic effects of the

corporation's and
tire bfeh'5Vior.

industry's

en¬

John Kenneth Galbraith focuses

another

on

to assure

bigness.

in

the

economy

we

that

can

live with

Countervailing

counteract
ary

force

us

powers

concentration of power.

They

nurtured in the same evironment, among the actual or po¬

„are

tential

victims, to curb the abuses
the misuse of power em¬

_and

ployed

against them.
In a most
optimistic mood, he conceives it
as
being a self-generating force

which

keep

can

private

our

in balance and make

_omy

econ-

govern¬

ment intervention unnecessary.

Neither

/

approach

challenge

big

of

democratic

to

the

in

a

is

reassuring.
The first suggestion, that we test
economy not in terms of size
units or structure, but by re-

.our

of
.

suits,

continually

fails

The

us.

data for testing the conclusion are

public

tives

Jnto

their

camp

to

provide

with the sinews of defense.
matic
to

be

-sence

tests

satisfied

of

the

with

collusion

monopolistic
wise,

few.

are

They tend
ab-

complete

rests! upon

business

Other¬
assign¬

.the failures of the

Big corporations

'30s.
are

not pressed

to reduce prices to real cost levels.




test

as

competitors

■

'30s

to

most

the

ardently

high price policies.

and

combination'' of "wie'wg1'

;'

tribution

as¬

not

is

mo¬

sure

against

involv¬

sured

abuse

We

power.,

that where

of

,

be

cannot

private
even

as¬

they exist they

with

the

of

is

entrants

is

eye

industry.are

favorable

focused

the

are

same

on

counterpoise is

yin

the

his

field

from

clearest

there

are

trated

and

which

he

inspiration,

many

of

zones

textiles,

to

of

countervailing

insti¬

tutions require a "minimum of op¬

portunity and a capacity for or¬
ganization."
They are often lack¬
ing or weak, particularly when
is

government
upon

by

oligopolists

tent

controlled

themselves,
in¬
preventing new count¬
from arising and

groups

destroying those which exist. The
employer-oriented

■

Na¬
pro¬

vides little encouragement for the
appearance

of

independent labor-

organization.
If

to

the

of

is

necessary

to

Weeks

the

is

most

maintaining
favorable

an

opera¬

are

indus¬

Association

turers left it

pear

laws.

Sinclair

recent

of

Manufac¬

during the debates

and governed

interests.

Those

who
their power should be dissolved. The others should be sub-

Taft-Hartley Act.
The fundamental
fact

trade

unions

bargain

t'*at

is

with

man¬

agement on^terms pf employment
and not

the price of goods and
The law has long recog¬

on

services.
nized

that

human

labor

is

not

a

The

results

are

workers,

but

not

determined

agreements

are

really opposing -parties.

management's

decisions

If
in¬

are

fluenced

by its monopolistic or
dominant position in the market

and its confidence in its

ability,

are

itself

bargaining
ing

issue is

no

different than any other

management decision in

big business.
power

and

ganization,
force in

a

our era

We should

not

our

the

curb

workers'

of
its

or¬

major countervailing
society. If any correc¬

is to be

increase

made, it should be to

the

protection

business is
such

of

the

and

and

to constant public scrutiny,
:

as

other

F. D. Arrowsmifh to

-

have

prom

been

is-

•

in-•

area.

t

business

is

.■

-tuf,
:

challenge

a

the

American

and

dominance must

people.

Its

be

to

un- :•
new

prestige cultivated in the postwar
years has served it well in gathering new privileges and incentives

-

-

.*
•

extending its authority. Its

inFuence
and

»

power

kept

der constant surveillance. The

and in

in

.

our

political, social
life
has
deepened

cultural

greatly. Under the stimulus of
tional

.

F.

na¬
ex-

emergencies

panding

and

benefits

and

mean

and

1

with

restrictive

provided

able

now

to

will

in

sup¬

organization with the
Taft-Hartley Act and

D.

Arrowsmith

.

Donald Arrowsmith
be

Van

admitted

Alstyne

to

Feb.

on

partnership

Noel

&

Co.,

Exchange. Mr. Arrowsmith is a
partner in J. R. Williston & Cod

practices

But this does not

they have been eliminated.
It requires a
strong trade
union movement, a
high level of
tion

Federal

a

responsive

tarian

and

maintain

to

Election

equali-

many

diverse

Many

of

these

to
balance,

essentials

pany,

business.

adequate

possess

We

procedures

have

Luce,

Incorporated, New York in-

& Co., New York and St. Louis
investment bankers, as directors
of Western Development Company, has been announced.
J. G.
White & Company, Incorporated,

no

do

we

nor

G.

bankers, and Boris Greeconomist with G. H. Walker

sov,

Administration's alliance

systematic

Dudley

G. White •& Com-

vestment

for

countervailing
pressures
have
waned, particularly with the new

big

of

President of J.

interests,

economic

some

Luce, Gresov Directors

administra¬

countervailing

the managing underwriter of

was

forces to pressure big business to

a

act

which earlier this year marketed
300,000 shares of capital stock of

constantly

in

the

public

in-

terest, promote national efficiency,
assure adequate utilization of reprovide

sources,

sible

the

lowest

Western

employment
our

Company,

°f Taxco National
Company, Mexico City.
1949

machin-

lacking.

ery are

Development

houses

Mining

Ser

These

economy.

democratic

investment

Mr. Gresov formerly was VicePresident and Production Mana-

pos-

prices for services and goods,
help maintain and expand a

forces in

of

group

he

ment

has. been

.banking

Many 3oubts have been voiced
concerning the adequacy of our

Company

enforcement of the anti-trust laws.

P °r.a^lon»

The courts have not been too helo-

in

,

Since

the? invest-

business., in. New

eraJ10n

not

always

vigilant.

b^en

big

engaged in the
development and

is

sufficiently

Nevertheless, these laws

business

in

cartelizing

enforcement
above all

An

for

would be helpful. But

else,

we

need

more

spe-

cific legislative definitions of
desirable

Elick Lowitz Honored

its

A simpler procedure

powers.

un-;

practice, restrictions
more

on

for reg-

powers

impromptu

by the Federal
subject to an

and

Governidentical

system of limitations. The Federal

should

agency

regular

be

reports

formance

Chairman

and

per-

rnembers.

and

should

entitled,

public complaint, to survey in-

own

motions

or

define

should

the

be

developed to
types of big corpora-

the

of

his

son

All

of

members

are

E. Lowitz & Co., 29

They

hold

the

are

father-son-grandson
to

his

and

all Stock Exchange

are

^rm
Broadway.
ever

Board,

o^he' Zr'wfth
on me lloor> W«n

tray.

Lowitz,

policy,

on

dividual corporations for behavior
in conflict with the public interest,
Criteria

silver

Mr.

grandson

results

its

a

with

on

on

01 al1 memDers

furnished

be

on

89th birthday.
To commemorate that milestone Harold W.

Big corporations must be incorporated

celebration

tiding floor of the New York
Stock Exchange was held around
Elick Lowitz on the occasion of

Scott,

lalation

ment

exop-

&as and other ^in_
oral properties, chiefly in New
1Uexic0-

ful and the Department of Justice
has

Western^ Development

.

only

combination

Stock

Exchange

memberships at the same time.
Lowitz

Mr.

of the

became

a

"Big Board" in

member

1931.

His

9

The existence of

organization

does

a

national labo1*

not

in

itself

tions and businesses which should

son,

be

Labor Rela¬

tions Board.

52

Wall
Street,
New
York
City,
members of the New York Stock

subordi-

that

taxes

F.

incentives,

and

grew

and inclinations.

an

together

economy,

special

Alstyne, Noel

.

Conclusion

Big

Join Van

•

or- :

reducing its

Many

power.

developments

stituted in this
tr •"dlt'COv'

bigness and
as

price leader, to pass on the cost of
improvements to labor, then the

aid

unions

big,

and court decisions have inhibited

commodity.

big

of

on

the

dissolved, as were the public
utilitv holding corporations in the

member in

thirties.

change in October of last year.

bargaining.

leges and financial incentives

countervailing
unlikely to

autonomous local negotiations.

for

John

liam

J.

yLowitz,

December, 1927. Wiljoined

Lowitz

H.

became a
the

Ex-

The beneficiaries of public privi¬

Many national unions in localized
industries depend completely on

establish

there

such

small

as

ganization

and

tion

problem

therein, without atomizing the

full

tional

adminis¬

such

to

tions?

organizations

private

public in-

are

dominated

abuse

guard for the individual's freedom

pro¬

press

where

demand

a

Commerce

the present National

tries

organized

anti-trust

braith observes, might we not first
concern ourselves with the
prob¬

Furthermore,

by

membership institutions, is that of :
assuring a proper voice and safe-;

with

curb

bring into being and to nurture
the countervailing forces, as Gal¬

of

major

national

workers organizing in areas where

government

well

tagonist of this position', carryingit from the point where the Na¬

of two

area.

and

Secretary

equality of bargaining in this

present

Big corporations
stitutions

•

The

find

counteravailing

bring unions within the juris¬

bv

the

and

they do not arise?

counterbalanced by corresponding
labor
organization
to jssure

ervailing

the

destroy, effective union- ject
4

ism.

nec-

of tax

use

exempt funds and corporate payto influence our
social, cultural and communal institutions,

the

out or

for

labor,

white collar persons have not been

the

search

institutions

new

diction

concen¬

pervasive union organizations.
The
big corporations employing

new

constantly

labor, takes the form of

gets

no

The

big business

the economic area, where

business

a

including chemicals
in which there are

power,

anxiety

major diversionary move. d°signed to sidetrack attacks on big

countervailing
Unfortunately,

forces do not exist.

of

our

A

But the author

such

nur¬

Big Unionism

himself has many misgivings about
its
reliability.
There
are
vast

where

in

of

us

power

avar¬

*;*The theory that each oligopolist
reassuring thesis.

forces

forces where

public purposes of tax
exempt funds.
.

areas

nation to

many

cellophane

If suspicions of

own

relations

substitutes

to

his

of

area

complete coverage where

must

create

becoming too widespread,
they are quite prepared to miti¬
gate them with generous contri¬

begets

the

the

even

we

are

butions

in

will, at best, only

self-generating

about

corpora¬

gathering on the horizon, by
leasing their know-how to other
firms, as DuPont has done in the

ice

power

of its decision making.

position relieve

an

quite ready to encourage
opinion when criticism

of both nylon and

primary

tured by government do not pro¬
duce the adequate
counteravailing
force for some areas?
Can 1 his

is

case

the

in

to insure

broad.

strong when the

not

Yet the

production.

to

with

intruding into
A code is

limiting the

rolls

often

are

terms

those

essary for

The cry of
big unionism
is a
smokescreen to hide the determi-

workers, the farmer on his ;,b.ig business
purchases, etc. What is to be done nated

profits; discouragement of

public
tions

so

investment

on

balance

power

wide and

so

offset

every area

when the market is pro¬

common

new

is

discretion

Limitations

ducing

economic

latitude
of

Loan

.

employment of re¬
They will only operate
in the "right
direction," which is,
presumably, countervailing pres¬

The trade union

limits

companies

favorable

political life,

our

^

his

and

vation, volume of production and
competitive behavior.
Many are
abuses

corporations from

andl

leader.

iy
that

sources.".

suf¬

are

that

countervailing forces, where they
exist,, will not give "an ideal dis¬

against

motives

of

the

corporations

This

from

institution;

an

criticisms

pursued restrictive production, in¬

will

ap¬

because of the predominance

matter

national

As

op

should be

particularly responsible
meeting tests of constructive

business

Shaiman & Co. Formed
(Special

The

to

Financial

DENVER, Colo.

Chronicle)

Shaiman and

practice, progressive
management,
reasonable
nrice

Company

has

bargain*rig
predominates.The industry usually

levels, and constructive collective

offices

the

bargaining.

Where the mark°t it¬

engage

in

a

and selling;we would add tobacco,

waits for the

self

effectively operate to

Officers

are

Philip Shaiman, Pres¬

film

liouor, household

agreements with its leader

other

tern-setter

of

the giants.

To

the automobile

industries, thus sate from counter¬

for the vailing forces

-post-war prosperity and obligingly
forgetting the collapse of 1929 and

big

in

was

ing profit and industrial position,
are
other decisions, on inno¬

Prag¬

proof of
or

domination.

case

ing credit to big

them

It

vestment

so

lem

business

not

economic

resentment

combination

a

tration

big

are:

and

countervailing
allegedly most opera¬

are

.fx, tive.

'

equally important.
prices are determined by

are

ante-

bargaining

.

tanks, or; hardly tenable;
"v
Galbraith
prices to pre¬
declares

Results

to

Just

not

enrolled

best

high

small

monopoly.

inadequate and the apologists have
even

the

tional Labor Relations Board

vital

business

society

specific

the public's wrath and

suage

balance the prim¬

and

Our

tendencies, if
outright inflation, prevailed.
suspicions of
big business

contracts 'for

his

less

workers

inflationary

grew

going out of business, lest he in¬

have

adequate

and

decisions

to

maintain

the

competitive

not

react,

■

ernment

when

selling

goods

conducive

petition has been broadened from

alternative products or services.
The battle for the consumer's dol¬
lar has become a real economic

to

efficiency.
At times, the efficient
will forego business, SuCft hs
gov¬

bargaining among producers try¬
ing to sell the same item to pro¬
ducers

when

the

porary

i

freedom

overall

ficient

efficiency and the tem¬
high price created by ad¬
ministered price levels -are offset
by the subsequent lower price

for

forces

resulting from large business or¬
ganization, it is claimed, provides
ran adequate substitution for older
economic

*

particular

cur

in

chooses.

brands.

then we-have heard a number of
-defenses of bigness.
:'L•
The superior rate of innovation

types of competition. The loss

As

standards

originates in many industries with
the determination to resist
labor
organization.
Union
agreements
on

we

tolerance of big business
in the post-war years,

our

labor

on

collective

.

it

consumer's

The

when

developed

strongest.
harshest
when

*

since the

But

the

by the allegiances he
developed, as a result of ad¬
vertising and social pressures, to

dominant, the economist
along to document the con¬

onslaught on big business prestige
-brought few immediate defenses,

re¬

on

it is limited

clusion With fact and theory/This

:

selected level of

manage¬

depends completely

firm

countervailing forces
are
effective only in periods of
recession, deflation, or depression.

has

longer
came

The

is

less

even

told that

are

leader
dates

with satellite

The faith in this alternative be¬
comes

of,

decision

reconciliation

of

case

determinants

The

ment's.

protection

in the

not

prices except by intruding

in his field.

substitutes, public reac¬
prevailing
industrial
These are limiting factors

and

on,

in¬

turer's

and

codes.

Of

some

lop,

as

tion

large-scale retailing, who
marketing
costs

reduced

through greater efficiencies, have
not really reduced the manufac¬

—both

competitive
because they

businessmen,

some

cluding
vtained

•

destructive

, so
standards

course,,

of

areas,

have

many,
maximum

dominated by a few
sellers.
Moreover,

operation

forces in.

forms of

are

the government has had to restrict

-the

influences

affecting decisions
including the desire for
or reasonable profits—
whichever phrase is most pleasing

mar¬

to

according

23

in the manufacture

producers,

appliances

goods

and

manufacturers.

retailers,

engaged

in

durable

Fven

the

the
new

a

wide

fact, little industry¬
bargaining exists in the

United States.

Pattern

conclusion

for

guidance

of

labor

or

on

pat¬

its

cannot

pressure

efficiency levels,

settlements with other

tute

This

Corrupt

practice

of

companies.
following the

prices and production to

.public

we

review.

Practices

ident;

in

forced with
Building to
securities business.
been

Boston

Marian

must substi¬

President;

Isaac

The present
prohibits

tary,

Philip

surer.

Act

and

,

—

Shaiman,
ViceMellman, Secre¬

Shaiman,

Trea¬

24

jromMrst

Continued

MR. PARAD1SO

page

Experts Predict Moderate
Easiness Recovery in 1955
Consultant,
Railway Com¬

Fred Fraser, Economic

George P. Ilitchings, Man¬
ager, Economic Analysis Depart¬
ment,
Ford
Motor
Company;
Thomas S. Ilolden, Vice - Chair¬

steel

W.

F.

Farm

Chief,

Koffsky,

M.

Nathan

Corporation;

Dodge

Agricultural Mar¬
keting Service, U. S. Department
of Agriculture; Louis J. Paradiso,
Income Branch,

Statisti¬

Director-Chief

Assistant

cian,
Office of
Business
Eco¬
nomics, U. S. Department of Com¬
merce; George B. Roberts, Vice-'
President,
National
City Bah\;
Helen
Slade,
Managing Editor,
"The

Analysts Journal."
members

Forum

tin

of Economic
R.

ference

The

Chief

Brookings

to

Industrial

which

is

it

I

71%.

"up"

in

half

one

calculate

be

to

of

the

Sees

that

Conference

year's

construction

total

have

we

upward push.... I can't

estimated

here which

volUm e;

dollar

and

ing

.

.

a

Board;

next year

be

Steel Corporation.

u
.

is

Thomas

S.

Durables Sales

Holden

The year 1954, in terms/of fac¬
tory sales to the domestic market,

.

.

The

.

5.3

results

million

cars.

indicate surpris¬

in

the

auto-

motive

mar¬

ket

view

of

wmmwmmmmmmm

The; increase

tions

and

ably be)

prevailing this
year.
Since

struction

the

erately,

...

of

beginning
the

a

year,

shown

have

.

.

.

MK.

.

.

ever.

for

down

is
.

As

...

the

as

As

.

the first half and

P.

Hitching.#

buyers

car

is

I

concerned,

we

have

done

tnis

year.

I

...

expect consumer expenditures for
durable

goods in

1955

be

to

...

sec¬

slightly better than in 1954.
MR.

Higher

tion, Generally
Conditions

year

more,

have

had

the middle of
to

come
...

Produc¬

a

.

reduction

in

is going to be

but

think

the

uation.

this

of
B

u

.

.

ye r s

particularly

houses.

If

that

.

Consumers

.

the

f

decline in

more

tills of the retail

been

taking

government's

purchases would

down inven¬

expenditures

of

on

during

can

lated

lent

net

equiva¬

.

there

is

no

tons.
increase in

of

consumption
period ahead of
age

rate

of

of
us,

the

the

Fabricant

.

and

local

prospects

.

With

.

to

spect

-

we

say,
to

million

Thus

steel

S.

think

five

the

.

.

.

expenditures
look

good.

.

.

if

are

I

and

of

local

public works

by
a

state
very

the

short period of time.... There

are

percent¬

financial problems which will pre¬




of

vent

a

galloping increase

they won't prevent

a

rise.

.

.

.

but

I^on't^e^ that, 1955ais° going

But

and

.

.

.

and

come,

convertibility, whether
or
otheri&ise.
Imports
-

Belgian),. France,

T

>

to

*

*

lower.-.

go

other hand,

on

I don't

*

.

On

.

see \

.

big

v

up¬

turn, in

busi-"

to

ness

the

a

.

enough

....

cause

Foresees

do

Small

Federal

thorities

au¬
are

to

be

to

(prevent rates

De¬

from
any

George B. Roberts

sig¬

very

chang^dther in the level

that

Some of

J

•

•

We w°ujd

•

W.

."

business

ioan

rising)
they are
certain

the

u

p

-

is real.

the factors

in the

decline

(arej: iriventory liquidation, which is con,-tinuing and has been centered in

-culfural nml" the metals and

metal products
the taPering offrin.;the

:2t/?hr£i'cate80ry;
nf

toe k

rrn' ris€ in consumer credit; and

for

porate refunding.

?nd

of

' tembex

M.

y.

Koffsky

.

.

.

.

a s

; no.

therein-.
in-

.

And deprecia^

.have provided

Sep-.the need of borrowing.

I would

.

crease' in

vestment.

tion charges

,

,

cor,

•>,.

cash for doing business without':
of these factors

billion., their

L; :e x p e c t.
Nathan

- •

ment afrcf the

...

the factors of strength

s

invpJf'

'"^rr
'

...

and

Treasury

°lrC;"sl™er SWf1; °J in th,e pr0~ turn in business
p0rtl0n spent:fer- f00d next year-'

put,

growth; unabated redevelopment
; steady

Re¬

serve

very

Incomes

not;$#ticipate

largely out.-

the continued

The

working

s

be:

in

rates.

until

We

stif¬

fening

Hol-

I would

otherwise be

pro¬

going

in' durables

come

are

.

A; Further

cline in

a

of

.

.

any

nounced

koffskv*

population
source

.

Sees Stability in Interest Rate^

more

'

to

T;.'\JC
: ^;

^
ROBERTS

Barring a further recession in
business, interest rates seem un-

,

appear

.

likely

Looking to the 1955 outlook for
.

thb

of

year

positions

$.6.4

.

the

t

foreign nations get
and better balance-of-

of it in the/-

Improved Business Outlook

Canada

not

re-.i?®' M',,n

as

hardly

envisage

tinuing to

go

V'.

be nearing
.

-.

I

inventories

con-

S

,

•

-

can

down, much longer.

6
®
fteal estate loans

"
•

may

termination.

gains in productivity; the prospect 1955 it looks essentially like price
an improved trade
position; the stability and there might be some
prospect of a continued high level mild improvement since the peak
of construction activity ■ the pros- of harvest has
passed. -.
As we
pect of an improved export posi- get some easing off in the healvy
of

Finallv

' *

there

'vf'

p

ments.

p

.

.

.

is

.

Some

-

are mcreas-

..^"or the first half of. ing along with the building boom. *

.

production

the $500 billion GNP prospect of,.

ex-r?g«e..

the

to

rempve. more

"

not

-

to

minorthat"taU^

-

due

year,

Canada

rate

in

next

the

.

do

in

frame

stores.

increase

might

\7

ready, to

expansion; enough to make

ness

•

°- G1««» Saxon

Whe

MR. FRASER

state

going to have $100

governments

what

'

•

readv

IImPdm
very fluid condition, one that will
~ BH wB' -undoubtedly burst forth into busi-

into savings.

.

billion

the

••

consumers jare

re-

the

of,

eight

B. Smith

an

for

year

Dr.

trans¬

into

ingot

Bradford

this

which

be

defense

is coming to a
close.','

the greater

n v

There

nificant
III

sock, but to put

of

expect

year,

be

impact

...

iUIv*

case,

mind and may be expected — ♦«
not to
put quite so much money in the

evi¬

the Federal

oi

the

will

optimistic

more

have

part

is

little

some

others

Consumers-are

^anc^ and, Gera^my

there., ought to be some step-up in
the volume of durables.
.

Kaplan

in some areas wijtl
partially offset expected pick-ups

eager for it. Jgftgland could have
come to full ^convertibility this
year.
^ -

goods with the discount

...

steel

tories

depart-

dence that the

.

o

bit above the

a

thi^-year.

to.

year

1954.

stores,

in durable

.

.

.

half of

H.

of inventories
in

•

rencies.

There seems

more

than it will turn out to have been
in

.

.

sideperhaps

Alexander

S.

stores,
are
taking active
steps to become price competitive

has

im¬

^119

1

win ii ~ 1
a
shif?-^-

better

ment

I

the sit¬

prove

some¬

much

not

.

ular

.

in

which

helped
steel

of

.

Ralph

The leaders among the reg-

...

1953

halt

a

taxes

Stable Business

production

coming
what

Steel

some¬

D.

been drastic and
the need for further streamlining

...

move

mainly

A.

....

.

.

in_

peaks

will
tend
to 'increase,
but only
moderately.
;
•' (There, i$ a) steadily grow¬
ing possibility of jull convertibil¬
ity among therb'ajor national cur¬

should)
.

the

-has by no means

UPH

r-

fr°m EU™towards the Far

gold

the

out

cur-

'of lastautumn -

nearer

half

ways,

around

a

payments

pe¬

+

t o
in

" W^c^et,

.'.

into

last year.

second

to have

We

The

same

.,

|fines .;to the

dency to
of'them,

slightly,

and

Govern¬

Spending

seems

SMITH

Foresees

be

riod

ments, Little Change in Federal

where

East

of

the

of

the*.

i"

in

r

be

so

the

During

The decline which started

since

moval of many of the restrictions.
«>.?
that have exifei&d for the past 15 MR.
to 20 years.
There will be a ten-

(they

Local

»'"I

•

^v

been

5 %,

.

require—

ventorv

for

maybe

lit

Gains

Liquidation

practically

ports

level

and

be

degree of exparision of U. S.

may

any

thouch--M -th°ugh they would respond

vfDi/i-tn

.

half

see

rnents.

retail

up

Anticipates Rising Expenditures
State

j£

have

don't

s

norts

compared to

MR. FABRICANT

by

rent

volume^-

ot v.

expected to be

bit ahead in the first half.

don't think there is much problem
of at least holding even with what

total

so con¬

1955

tial number of
new

will

antici-

change in

spend

second

Geo.

poten¬

the

ntial

ThAro

first

half, I think it is possible that
residential building might run a

far

have had in

we

have *•'

•

not

/>'..'g'e
^

may

1955

.

.

order

-v.,

sales

be¬

the

will

sta

•

Spend#

I

year

necessary

Im-

balanced po->~

do

.

.'.

year.

^

.

vailable.

servative

already on
Industrial

.

Where

•

J;Je S1^10n-

My

.

in

.

.

Total

(will prob¬
commercial con¬
it

Both

in

exPec11 some pate-any sub- *

Consumer

people

to

nearly

ond

tween

a

their money dur¬
ing the early months (of 1954];, at
the
present time
they are not

Addi¬

.

.

>

Higher

loath

...

next

.

.

ALEXANDER^,,;;:

While

of

most

.

«

we

.

cur¬

is the only major
classification that we estimate

no

rising.

ing, Lower Saving

en¬

is

had

war.

pretty high level.

signs of weak¬
ening whatso¬

•

area,

rebuilt and

are

:

Sees

coming

activity, (up only) mod¬
because

JP6*

1

alterations

up;

construction

market

has

this

-

construction

we

this

5%

.

improvement.,

nonfllm,

.

Rise

^

rently and probably will be next
of larger and better quality
than

in

i? *aJ we S?^

1,250,000

is going to be practically
tirely in single-family houses.

the time since the

the

conditions

the

is

year

units

even

to

.

in rel&= over-all balancfe -Of payments a
though they' ^small negative position this
year,

continue

inventories

year

in

...

Our ^estimate

Residential

ing strength

'

'

,

Moderate

comin^down. There next year it
indicatioijjgathat liquida- eliminated and

will

ybai

for next year.
...

sales,

some

'•

.

high

been

3

in-

be. re*--

-

excess

goods inventories

relatively

to

farm dwelling

7
units.

are

Net

.

-

„

A

substantial

a

.

55'

MR.

which

forces

.

extent in the second pectmg prices
V,
bo go up at a
SAXON
~
V
make.
It

half

liquidation through the early part
(1954) will
of 1955
after which,
depending
probably run
oh
the trend of ;production and
to 1,200,000
demand, we may get little orto
starts of non-

The following are highlights of
the remarks made by participants:

Sees Improvement In Consumer

f"

see forete

Inventories of purchased material

will

this

.

.

tion

moderately
p.
Housing

.

Finished

.

have

Residential

construction

Economist, United States

there

are

perhaps

Ne*t

-

ports and Exports

.

.

tion

6% increase.
...

the
a

decline.

,have

we

put down at

nor

again.

(of farmers) would

come
duced

There.is no
immediate
Project will manifest it- basis for ex-

I

are

going to produce

are

construc¬

tion,

Clyde

side

building
engineer¬

harvest time

with 1954.

ment investment in defense establaments ~ will be maintained.
Govei*nment investment in the

is likelv

going to stimulate
the econom.y greatly on the yp-

including

we

.

the

—

1955

^'n

3 prices, stable
f3My -even
level
of
over-all
though crop prices'" may sag at

...

..

in-

tcTJ>e "

Paradiso

forces which will make for

building

5% increase in physical volume.
both

MR. HITCHING S

of

hinges hrgefy

J.

of

The carryoverT
moderate
l*ams
in
Business Activity, Little Change
the housing ; pro-r, in Inventory
''i/;
£ram*"delayed largely by weather- •
conditions, c witi;: stimulate '-conI don't expect
v .-any drastic
struction in housing in 1955.
changes in inventory..
Purschool construe- - chasers realize that capacity gen^on pr0Sranl will also stimulate erally is high and that ample supinstitutional investment. Govern- plies
are ':*■}<'->

ex-

what'

b!X

half

1954, of

The

can't

next

Total

in-

nondurables

as

last

pects for 1955 ln Canada are for
H
a* least as good an j possibly a -MR. KAPLAN
sightly improved, position as com- ^ Experts Moderate

ap-"Pared

trend : of

Louis

.,

...

and total

penditures

Con¬

.

1Qi= ito me jhat Pr?s~ significant

dis-'

tivity..

struction

a

in

hiisinpsc

bn

in

Increase

.

the

.

we

tread'of

Marked

For

to

posable
come

a

year

^

income

in

.

even

biiity

HOLDEN

Con¬

Institution;

about

supply picture for livestock prod-

encourage growth of such indus- from this year.
The farm
"ies>
*ne reduced purchasing , market for production equipment
P°wer occasioned by unemploy- is definitely down this year
ment and lower profits in ad- - somewhere between 10 and 15%.

have sta-

may

half-

Thursday, December 30, 1954

.

ucts

a
select]ve tariff policy designed to

been

though

think

a

expenditures

run

in

t^e increasjngiy competitive posi-

.

.

rise

compared with the other.
MR.

have
.

big
big "down" of signifi¬

a

or

cance

safe to

either going

is

there

nomics, Yale University; Bradford

will

I

sector

services

points higher
It is going
year of reasonably
business but not one in

good

Li

gradually.
In this
expect expenditures to

...

O. Glenn Saxon, Professor of Eco¬

B. Smith,

for
up

another

be

L. Rogers, Vice-President, Nation¬

al

ditures)
moving

percentage

this coming year.

II. Kaplan,

Board; A. D.

and

expen--*u.r*n5 industries and the lack of

consumption

will be

close

Econ¬

Industrial

National

omist,

sterling bloc

tjon faced by advanced manufac-

come

Research; Mar¬

Gainsbrugh,

(1954)

year

something like

dozen

Inventory

percentage of

it could be

to

Further

(Personal

..

little

a

somewhere

participating

New York Uni¬
versity; Solomon Fabricant, Di¬
rector of Research, National Bu¬
reau

the

tJ^eclMne iarm
?km
aecnning

fi
i.i-

continue

capacity this

of Economics,

sor

average

The average

...

Jules Backman, Profes¬

included:

should

.

.

.

Goods,

tnrv

quidation

higher.

pany;

man,

in

Higher

Expenditures
Consumer Services and Sof

on

Pacific

tion

Financial Chronicle..

Europe.
Expects

Canadian

"PEtf

The Commercial

*(2772)

the

further

J fa

corporate tax. pay-

These various factors,

working together, should

be

re-

i
£

Volume 180

fleeted
to

in

the

(and) the high level of profits is

somewhat firmer tone

a

market

money

prevailed

the

over

has

than

past

permissive factor

a

rection of

year.

modest

under

MR.

Little

Higher

,

Change

in

price

gard

BACHMAN

Sees

to)

next

Prices,

in

Unemployment

1955

will be characterized by
large amount of competi¬

a

tion

which

—.•

down

will

act

prices, and

At

hold

to

tivity
:

»e^»ctessions.

creased volume of

no

in

fs

whoigjsa l

.

tively
change.
ture

I

little
.

food

change

at

.

If

.

all

for

apparel

the downward

on

be litt'e

or

no

result of

,

On

or

the

labor

our

influence

wages

.

.

be

is

by

can't avoid

higher

next year

I

year.

of

than

total

that

somewhat

a

unemployment
have had

we

wouldn't

the

see

getting

volume

be

this

surprised

number

of

to

unem¬

lack

in

changes are made (in
the Taft-Hartley Act in 1955) they
are going to be insignificant.
v

.

-

.

.

.

The House Labor Committee will
be

more

con¬

servative than

the committee
of

last

Union

year.

leaders

well

are

aware

of the fact that

the

Washing¬

ton

climate

definitely

is

not

conducive

t

o

changing the
Act in any

....

.

that

has
P.

Doherty

not

mentally with
bargaining,
as
indicated by the economic results
achieved
during the time TaftHartley has been in existence. I
collective

sound

.

believe

not

do

legislation
is

there
.

.

.

ever

a

basic

any

takes place unless
roots movement
such public move¬

grass

there is

ment

that

no

today.
I

...

.

(year in)

stat^

.

.

labor legisla¬

.

There will be

tion.

fairly active

a

.

activity in

.

.

it
Helen

send

sufficient

of

the

.

.

force

.

to

to

entire list skyrocketing.

It would, however, establish a

resistance

point.

In

,.

addition

improved business, several

.

to

sources

of strength seem evident for 1955.

These

include

possible

mounting

increasing
tue

disposable
of

trend

funds;

dealing

in

interest

rates.

road

one-third

the

of

a

in

124

.

.

of secondary

substantial
will

be

boycotts.

...

of

A

very

attention

given to liberalization of
compensation
"

Yale

1955.

an^

is

M.

r

DUNLOP

Sees

the

.

.

Price stability and

large
which

will

result

million

the relatively

unemployment

of

volume

if

business

ac¬

tivity is little more than the cur¬
year
will tend to keep

rent

wages

.

.

.

going

from

other hand,

.

tinuing drive

.

.

up.

On

a

for fringe benefits,

.

be

.

the

was

clear

Forum

on

stability through¬
.

The probable

just

short

unemployed,

on

in the first half of

ex¬
.

.

tures
half

consumption

mignt
under

pansion

Freres

1918.

&

move

the

some

as

concerned,

somewhat

a

confused

investments during 1954

developments,

the

and

of

putting

is

from Government securities.

away

and still is

was

closing out the

this

of

rather well

year

a

potent

very

one,

the

with prices of many

year

;

•

'id-

Government bond

during the past

registered by this

shown the

one

New

of

"flexible

ease"

1955?

in

the

be

a

seven-and-

before.

year

that

to

"active

of

of

ease,

to

of

one

Federal

ease."

"flexible

the

Is

the longest Treasury bond

>

seven-point price range mainly on the down side

Many

market specialists do not believe this

money

of

barring

case,

of

closing

the

whereas

emphasis in monetary policy has changed
ease"

policy going to give

six to

another

A six-and-one-half

against .about

as

policy from about the middle of 1953 was going

restraint

Reserve Board that the

that

were

will not be too dissimilar

year

with it notification from the Chairman of the

1954 brings

from

that

those

Monetary Policy and Bond Prices

The monetary
one

of

excess

issue in 1953.

same

is quite likely for 1954,

range

from

in

Price gyrations of the most distant

reported at the close of 1953.

will

happenings, because

unexpected

course

they hold the opinion that the 3]/4S of 1978-83 are not

likely to

get down to the closing quotations of 105%, which was

shown at

They point out that "flexible ease" to their way

the end of 1953.
of

thinking

years.

means

much

a

narrower

range

for the longest Gov¬

in the last two

1955 than has been registered

bond in

ernment

If this should come to pass, then the longer maturities of
securities

should

turn

out

to

excellent buys on

be

Intermediate Issues Seen Attractive

the

born

York.

Beaumont

Safe

up

in

a

bit more time for the

there

will be

However,

is

residence

at

(Special

to

The

three

the

Ferry has become associated with

He

Avenue.

merly with

was

for¬

Selected Investments

Coombs

ARLINGTON,
expendi-

Co.

of

the first

opened

ek-

Wilson

of

in expenditures for dur-

obligations

the medium through

been

branch

Boulevard

D.

C.

office

at

under

the

rection of David A. Law.

purchase

that

has

2420

issues at
during the

these

is the Treasury

to
a

of

rates

and

the

cerned,

degree

of

the

startling changes are

be sure,^

fluctuate

as

ties

does

been in the past. The
is going

At this time, and with

far as the

"flexible ease"

rates.

*

securities will continue
in the past, but unless the unforeseen

prices of all Government

they

not appear

have

ease" policy of the monetary authori¬

to have most money market

much concerned about a
ment market

of

New York are

interpretation of,
policy is con¬
looked for by some money n^arket

guesswork as

operation

actual

no

of

be no-

could be the clue as to what

happen in the money markets in 1955.
certain

carried

1955 unless the ideas

Sproul of the Federal Reserve Bank of

short-term

bills,* have

and undoubtedly there will

in this method of operation in

develops, the new "flexible

&

not likely to be

of

which the powers that be have

market operations,

open

trend

to

Branch

Va.—Coombs

Washington,
a

and

Open Market Operations
short-term

The

To

New

defensive

operators in short-term interest

Company.

1955 with

the money market that the not

of Treasury securities are

the

on

"flexible ease," it is the

with the policy of

given greater consideration than they have

Chronicle)

Sheldon, Erwin & Co., 5855 North
Shoreiand

even

quotations should not prove unfavorable

Chairman

MILWAUKEE, Wise.—James O.

is expected to

coming year.

aver¬

influence

much

prevailing

out

Financial

Competition for the inter¬

during the coming year as it was in 1954.

maturities

long

the prices which

obligations from tax-free offerings

of certain elements in

opinion

Mills Co.

Stewart

term

about the

great amount of concern

a

issues moving very far atoay from

be about the same

very

not

be

will still take |

new-obligation to pass into strong hands,

registered at the close of 1954.

mediate

Co.,

Deposit

to

appears

middle-term

in

graduated from
He is a
director

been adjusting to the re¬

intermediate term issues have

cently offered refunding bond, and even though it

too

was

dips that might take place in the coming year.

The

Co.,

of

1949.

director
was

general

a

.

of

lion in the second half.
Personal

of

Joins Sheldon, Erwin

slight decrease to about 2.8 mil¬

the

tnere is the con¬




age

There

among

unemployment in 1955
to

seems

Higher Unemployment

end

the

change

$363 billion in the second half

tent of

re¬

Bronxville, N. Y.

Gainsbrugh

of

out the year.

Wage Increases,

Moderate

S.

4

continued price
MR.

R.

to

.

in

The

from

year.

Glass

member

a

since

and

New

of

in

unanimity

director

a

also of Penn-Dixie Cement Corp.,
Illinois Zinc Co.. Discount Corp.

the current rate, to
billion in the first half of
It anticipates a further rise

$360

Pres¬

pressure

also

Lazard

new

Dallas,

billion,

$356

of

is

been

board

The

GrossNational
Product

of

has

LOF

...

amount

-

and

1955.

rise

former

and

replacing
James
New York, who

Adams

partner

Forum's

a

by

though the longest Government bond, the 3V4 % of 1973-

J.

responsibilities."

Mr.

.

state unemployment
laws.

for

Charles

—

"because

other

in

consensus

Ohio

Co.,

of

signed

a

13 1

after

Lehman

Libbey-Owens-Ford

Adams,

.

I anticipate
legislation in the field

&

Company,

second

The

work" legislation. ■
increased

of

further rise to
about

with

job

has been elected

pany.

rise

It

for

school

his

ident of the New York Trust Com¬

...

1 9 5 5.

have

.

apparently

are

first half

now
.

we

currently

looks

money

83, is under its high for the year, it will still show quotations at
i

C. J. Stewart Director
TOLEDO,

to about 128 in

the

termed

outstanding

market

Government

around

from

half of

"right to work" law.
During
the next year
there will be
some
increase in state "right to

a

Even

any

of industrial

production

public, gram¬

Brothers.

index

the

few

a

issues above those shown at the end of 1953.

Stewart, general partner of Lazard

group

not

really important change

building, chemi¬

The Forum anticipates a

.

years.

continued

and

his

23

past

business

at

obtaining

agreed that the turning point in
the cycle has already been reached.
.

the

for

school

Freres

than

states

lived

studies

Summary

more

Slightly

Bertschy is a native of New
York City, but is now a resident
of South Orange, N. J., where he

MR. GAINSBRUGH

As

1951,
discon¬

Mr.

mar

.

.

.

Since

1915.

tinued, he has served in fiduciary
and advisory capacities.

cals, electronics and airplanes.

In

entered

He

He graduated from

and

Industries in which to find growth
shares probably will include those

islation.

.

Government

52

Dec. 31, 1954,

on

when the department was

has

foreign trade; the purchase of our
securities by foreigners; our own

in

why

any

;

of the attraction

some

five-eighths

managership of its commodity

department

explains

looking for

Despite this factor, which

point

employ of the firm as an of¬
fice boy on Feb. 23, 1902, and rose

Slade

about

be

the

.

it

but

than

more

announced.

was

eco¬

to

the

de-

is

the so-called "right to work" leg¬
.

taking

viewpoint is

activity

for.

will retire

years,

The

but revival could not in it¬

self

Brothers

the

of

Melville Bertschy, who has been
continuouhly associated with Leh¬
man

This

pattern.

what is

on

one

The

.

cline

of

anticipate

1955.

Melville Bertschy Retiring

be n-

business

.

in

not be the highest

economic

:

.

Forum

may

this

The competition from non-Federal

to those

stimulus

tax

inter¬
funda¬

fered

of

year

immi¬

of

...

form. The Act

of

1955

ending

was

a group

could well replace 1954 as our sec¬
ond best year.

subs tantial

Richard

.

contraction

consensus

over,

If

As

which might

any,

funds to work in other than Treasury obligations had the effect oc

major forces

major forces leading

no

drastic

im¬

nent war.

State

Labor Legislation, NoTmportant
Changes in Taft-Hartley
■:

,

.

saw)

efits.
Year

we

no

down

note.

than

more

changes, if

The year 1954, as far as the Government market is

we

no

As

feeling of optimism prevails with respect to the 1955

apprehen¬

sion

of

Active

anticipate

because

recession,

a

caused

the

Expects

that

mild

result this group is content to wait and
an
offset to this kind of thinking,

a

in interest rates next year.

whole, (The Forum's)

so

as

develop.

market specialists are not

expansion pushing the economy
sharply upward
but (it also

They will lack

MR. DOHERTY

slow

is

suggested

too

not

nomic outlook and, unless things get out of hand, it is not expected
that the money managers are eoing to do anything to retard or

of

The

.

.

.

ployed in the spring go above four

-

.

will

the

petus

by

,

.

million.

-

past.

de¬

Prices

we

the

is the

the economy with

(the Forum saw)

apt

clines.

me

On the

will

those who believe that the

are

A

cut-in prospect in agri¬

mild recovery, at best.

secu¬

punctu¬

ated

thanks to the probable increase in
to

in

of

of

with

1955 will not be of great -importance,
and the money markets will have only what are termed "the usual
fluctuations" next year.
*
•

1955.

as

1954

year

take place in money rates in

numer¬

cultural income.

trend

1955

to

in

and

.

sector

further

a

what

see

there

in.

affair,

.

upward
of

increase

seems

weak

have had

prices

saw

to forecast and

easy

declining level of
building and investment
Agriculture remains a

1955.

views

the

get

but total Fed¬

.

continued

in

Shares

on

than

rities

productivity, it

.

the

currents

a

.

weakness

of

industrial

During the coming year cross¬
are likely to have greater

some¬

on

force

4 mil¬

for shorter hours.

Growth

The

.

bulge in defense contract
placement. Mention was made of

for public policy
The larger the vol¬

.

.

one-shot

a

should

rising living costs.

Thanks to

.

.

size

.

.

ending the

are

an air of concern, even though a
change in the emphasis
monetary policy has been announced by the powers that be.
A modest firming in interest rates is looked for by some in the
coming year. The extent of any increase in money rates is not

in

current

consider¬

very

.

areas

areas

...

and

side. As

pressure

.

.

.

would

.

markets

money

much of

Correction of the inventory situa-i

unem¬

reach

can

.

.

.

they
plus

a

expansion at the statfe

The Forum also

.

tion is

MISS SLADE

result of these trends there should

as a

the

.

.

millions.

3.5

or

that

By JOHN T. CHIPPENDALE, JR.
The

spending would decline.

ous

rents

housefurnishings it will be
what

working

of unemployment the greater

the pressure

there is any

in

eral

pressures

ume

the

higher
has subsided.

without

changes.

change
in food prices.
pressure

3.0

able

suggests

of

of

believe

not

lions

pic¬

little

Most

do

ployment level

.

.

level

ment

r&haw rela¬

further

and local

unemployment.

reaction

balance;

government sector
some

expected to result in

will

s

Public

.

.

into

come

Governments

on

construction, in¬

factor in the second half.

in¬

an

new

might conceivably become

through political channels may be
some further
steps to mitigate an unemploy¬

e

Retail

'

should

improved

slightly

a

in

Reporter

better

or even

cluding public in 1955. Inventories

see.

can

[f^qpriees.

increase

'

Even

.

is virtually built
might have as much

$2 to $3 billion

as a

Our

sectors

into 1955. We

to

of 5

increase

an

business outlook will leave

V^.iv^I

Dr. Jules Backman

yields

6 cents.
.

The

to

of

service

present wage levels .
.
3% increase in produc¬

.

.

.

force price

-•?;.

was
some
mention,
strength
in
the
non¬
durable sector, and a rise in the

year,

2.5

a

many, cases

wage

There

too,

stability. (With re¬
wage
estimates
for

25

(2773)

ables.

in the di¬
increases

...

(I would come out)
the neighborhood of an average
5 to 8 cents including fringes.

of

...

\

Number 5390... The Commercial and Financial Chronicle

specialists too

rather defensive attitude in the Govern¬

in 1955.

di-

HAPPY

NEW

YEAR!

26

(2774)

The Commercial and Financial

7 MUTUAL INVESTMENT FUNDS

Mutual Funds

SECURITIES
SERIES

THE GROWTH in

Mutual Funds with

varying investment
over

350

secu¬

rities of American

For

porations.

December

cor¬

by

FREE

information folder and

SECURITIES

&

CORPORATION

RESEARCH

the

"Perspective,"

Investment

Department

prospectus, clip this ad
and mail with your name and address.

NATIONAL

Etlablithed 1930

120 Broadway, New York 5, New York

of

Management

Calvin

and cites the

type between

by the building
laminated form,

industry, rep¬
one-third of the industry's

resents

long-term

Company .seeking

CAPITAL GROWTH

and certain

TAX BENEFITS

tinder Canadian Laws

containers, despite com¬
petition from metal, paperboard,
and plastic containers, represent
40%

over

Please send

Company

me

Addrea

and

by

Mr.

has

example

one1

United

Nations

Building in

which

area

being

Secretariat

two

thirds

is glass

7'V

of

*

try in the face of increasing com¬
petition, the study finds, is due

west of

is

mainly to the industry's intensive
technological research.
BULLOCK
fund

FUND,
with

50,000

capital

a

major objective, reports net
at an all time high of
$21,120,920 'on Nov. 30,>1954, end of
a

assets

the

fiscal

with

•

bank fund

Foundation

Net

fund
*

Nov. 30,

year-end,

FtfSD r

Insurance fund
*-

•

«-•-

value

$14,876,997
" <«
7^
to

with

$2

than

more

assets

40%

of

corporations active in such

~

atomic

as

energy,

4

fiel

plastics,

in^stment

•
,

,

<|iesel engines and pharmaceiu>

purposes

cals.

"Evidence is currently accum

^Diitributed by
'15&L

HERE'S
19

ltd:

NEWtSllK

RECTORT^TREET,

lating," the report states, "that
are

6. N. Vi

Prospectuses may be obtsfhed from L.

the

at

which

recovery
of

ance

beginning of

a

or

local dealer.

business

and
over

"Under

fully

with

of

assur

•

of

net

coming

yean

circumstances

ATOMIC SCIENCE

Stock

Fund,

nual

net

through

a

MUTUAL FUND.

assets

of

Fund,

the

was

30,

Distributions
218

in

In
21

a

its

22nd

an¬

fiscal

year

total

of

$60,073,468 with 2,484,527
shares; .outstanding
and
18,000 stockholders, all new rec¬
ord
highs; compared with $42,117,695 in assets 2,448.987 shares
outstanding and 17.821 siockhold¬
last

ers

The

asset

value

share

per

Nov. 30, 1954 of $24.18

also

was

year-end high. This amount
together with the special distri¬

a

new

bution

of

26

December

$24.44
with

cents

1953

share

Meteoritical

equivalent

is

and

asset

value

30,

1,953.

Nov.

compares

of

$17.20

Discussing

years

at

The

since
24

ajso points oat that
estabjishement on Feb.
this
ye^r, The Capital

of

Investment Plan,

sent

more

in

the

into

energy

have

the

favorable

introduction

and

atomic

economy
will
unfavorable

our

to

results

of

may be experienced
by particular companies or indus¬

former

latter.

the

purchases

fund

for

the

and
tourth

sales

of

quarter

ended Nov. 30, 1954 were:

Bought

Broadcasting

Pfizer

Life

advancing," concludes the outlook
section of the
of

report, "...

general prosperity

ahead."

(Chas.)

1954,

eacft Group Securities

shareholder

will

PresH^t

ment, in duplicate, showing not
only the exacf dollar amount he
received in dividends and distri¬
butions

during^the

much

taxable

as

of

year, but also

7that

total

diymends

is

(b)

taxable

long-term^|^in, and (c)
-7.

(a)

non¬

^

amounfsT7for each of the
Group SecurTnes 21
funds
and
industry
clasps, are computed
All

separately.
In

viscose

with

1954 Annual

1954

at

as

dividendsTifs

parts,
easy

i. e.,

shown

in

two

the^amoants received

and

after

July
29„ for
computation of the new divi¬

dend

received"^credit.

The

Grdup

new

Securities

tax

makes

un¬

it

necessary for1 the shareholder
check
purchase -and sale

to

dates,

from the information sheet to his

or

held.- Afi

2.000

Report mailed

estimated

National

$23.9

Can¬

Product

only
slightly below the preceding
year's $24.3 billions, despite fail¬
ure
of the wheat crop
and the
mild

recession

States.

This

in

the

United

decline

nominal

.

Since the rise of Canadian

to

prices has continued
well behind that of U. S.

lag

and

increase
S.

of

stocks

Canadian

the

stocks

man¬

reduce

end

year

constituted

of 4iet. assets, compared with

10.2%

May 31 last and 17%

on

Nov. 30,

report estimated total for¬
investments in Canada by

which

1953

the

for

at

United

$8.6

$11 billions, of
States account¬

billions.

Canadians,

themselves,

have provided about
$85 out of every $100
ofprew cap¬

ital expenditures in their country.
Investment
in
Canadian
com¬

stocks, the report states, is
amply justified by the evidence

mon

of

well-sustained

the

continued

prospects

of

the

Canadian

econ¬

Canadian Fund is the first

omy.

and

strength
and
long-term growth

largest U. S. mutual fund for

the number of
the

shareholder

figures

SETH M.
ner

of

GLICKENHAUS,

Glickenhaus

Liberty

Street,

Donald

F.

&

part^

York,

New

Hine,

a

Lembo, 55

way,
New
York,
were
today
elected Directors of Guardian Mu¬

tual

Fund.

Hine

Mr.

is also Sec¬

retary of the Fund.
Ira N. Langsan, partner of Neu¬
berger & Berman, and Walter S.
Salant, Washington, D. C., wera
elected Vice-Presidents.

,

m.

Investors, Inc.

12,000

scott paper company^...

4,600

H-_Vtooo

co._,

Diversified Investment

Fund, Inc.

2,450

ATOMIC DEVELOPMENT
MUTUAL

is
a

FUND* IllC.

Manhattan Bond

designed to provide
managed investment

in

a

variety of

EATON & HOWARD

STOCK FUND

Fund, Inc.

EATON & HOWARD

BALANCED FUND

Diversified Growth Stock

Fund, Inc.

companies participating
in activities

Managed by

resulting

EATON

from Atomic Science.

&

HOWARD
PROSTFC- TUSES

INCORPORATED

AfBHIC DEVELOPMENT SECURITIES CO.
1033 THIRTIETH STREET. N. W.

ESTABLISHED

Montgomery Street

SAN FRANCISCO

1924

Cleveland

Chicago

%

Investment

Dealer

or

the

above.

San

YOUR

ON

LOCAL

THESE

MUTUAL

INVESTMENT

FUNDS

DEALER,

~

Hugh W. long and Company

~

Lot Angela

your

WASHINGTON 7, D. C




333

BOSTON

BOSTON

Prospectuses from

AVAILABLE

FROM

24 Federal Street
UT THE FACTS AND FREE PROSPECTUS

Incorporated

St

Franci&ygr-.

v

Westminster

and

partner -of
Neuberger & Berman, 160 Broad¬
a

2,500

.„

on

1953.

the end of

ed

At

common

7.2%

to

common

those

corporations.
U.

com¬

stock

mon

^96#"'

1,500

Corp,

is

convincing evidence of the viril¬
ity of Canada's economy, the re¬
port stated.
'
7

3,700

Corp

for

billions,

COy.kj5,000

Labs

on

gain of 32.5%/

a

shareholders

Gross

totaled

$11.12

investment in Canada.

needs do is tb transfer the

Corp.

Electric

1953,

ada's

Fundamental

Republic

share

per

addition*; the amount taxable

c„mpa„y
American

Bprague

state¬

a

shares

Inc._—:7__77_

Co.,

American

carrier

receive

quarterly rates'

French

The
to

The

3,000

Ins.

value

compared

Nov. 30,

eign

Recfeive Tax Data

6,200

Accident

&

Smith,* Kline <8i

to be

^

To

For

period

a

seems

"B"__..
Products-.

Asset

$14.73

holdings of U. S.

industries have
troughs and are now

3,000

.

Co.__

and

the

3,800

Corp.

Electric

for

"A"..

Cellucotton

Kimberly-Clark

$25

3

information -Sheet

PURCHASES

International

and

pi

"Virtually

before

Major

$29,324,397 on Nov. 30,
1954, the end of the Fund's fiscal
This compares with net as¬
sets of $24,013,592 a year earlier.
year.

agement has continued

avoid

results which

Bullock,

of

for

the

i

Inc., managed
reports net

Fund,

Calvin

stocks, the Report states, the

taxable.

appraising ihis new,
orderto
"participate

soundly

by

assets

value/with an average
initial investment of $358 and the
average of subsequent investments
$65, although offiy $100 is required

as

which

•

ent market

fund's management, with the
help
of outside experts, is actively an¬

and

ac¬

Jreport, new repre¬
than~$l,103,000 of pres¬

cording to the

how

rin

Canadian

report
its

atomic energy and
application to growth compa¬
nies, the report stales that the
its

,

Canadian Fund

$437,--

$38,079,461 and capital
gains distributions at $12,643,935.

to

share

net

per
a

Columbia

Society at its

realized
to

Group Securities'
of operations, the report

PROGRESS

eW+e^

net

1954; $206,331 in 1953.

income

in

per

elec¬

equip¬

Reported By

1*53.

review of

passed their

year.

net

a

constitute

from

in

gains amounted

ties Periodic

shows

Broadcasting

holdings.

$2,924,641

asset value, adjusted
for capital
gains distribution, of 40.5%.
Holdings in the Group Securi¬

the

Company

D. MOREAU
BARRINGER, Philadelphia investment banker and
Chairman of the $25 million Delaware

with

Fund, jiewest addit.on to
Group Securities "family" of
funds, has shoy/n an increase in

1954

for

Nov.

National

PERSONAL

Inc. in

report

ended

McGraw

manufacturing

science.

Massachusetts Investors Growth

Columbia

position,
stocks representing

the Fund's five largest

of

Up 43% in Year

Chemicals,

craft

interests

latest

the

machine

Substantial Gains

added.

were

Total 1954 dividend payments to
shareholders f^om net investment
income were $37269,180 as com¬

the

directs

Growth Fund

petroleum, railroad, steel and air¬
i/i

the

the

maintained

assets."

in

corporate

invested

common

87.9%

the

has

cement

^

fairly

in\'rsl

the

rate

shareholders

new

we

satisfactory volume of.

earnings

the above

provides

$17,636,447, representing a gain of
89.7%
over
the
preceding year.
During the same period, 2,803

lists total dividend payments from

tries."

stea- /

a

executive

of

business

ment.

•

Growth

field

7

elj

television, synthetics, V
propulsion, titanium, gas turbine

fo? Various

V

Hi

tronics,

MutiiSfl Funds

¬

V

invested"

were

feet deep.

service, made possible by

addition

Sales for the fiscal year totaled

alyzing

share

>

600

mation
the

curities' President/

of

is the first—and prob¬
ably the only — mutual fund to
provide this complete tax infor¬

a

tronic

made

continuing study of this meteorite
crater

on

per

1953.

been

and is 4,000 feet

ago

and

Fund

ware

a

compared

$30.79,

Fund's
•

of

compares

The annual report states that r

rsLszafa

•TMCOME

asset

taled
on

GROWTH WIND

assets

earlier.

year

t
•

net

This

year.

years

have

Today, as President of the Barringer Crater Company, the Dela¬

mu¬

apprecia¬

to

in diameter

on

LTD.,

Winslow, Ariz. The crater

believed

1954,

according
to
Anderson, Group Se¬

R.

capital

crater, located 20 miles

fiscal

proof

as

President of the fund, Group

Herbert

meteorite

..

of

return

Securities

$80,000,000 "rriark,

pared

m,.

tion

me¬

end

the

According to Herbert R. Ander¬
son,

of $20,154,247 over a year
Assets have since passed tne

early in this cen¬
tury of the world's largest proven

been

extensive use of
modern
building, nthe

notes,

tual

Barringer's interest in

his family

by

an

in

the

period

postwar

The progress of the glass indus¬

•

the

to

ence.

about one-quarter of the industry
and have increased 41%.

....

City

dedicated

study of meteorites and made up
largely of astromomers, physicists

dustry is pressed and blown glass,
used
in
tableware,
cooking,
in
electric light bulbs and scientific
glass ware.
Its sales represent

the wall

Name.

industry

component of the in¬

glass

prospectus

the

sales gain of 50.6%.

a

study

s

describing
Keystone Fund of Canada, Ltd.

the

of

have shown

marked

The Keystone

a

Glass

The

50 Congress Street, Boston 9, Mass.

sales

gain
in the period studied.

of 69.4%

The third

fully managed Canadian

Society,

teorites stems from the acquisition

industry and, in
the automobile

by

ofC anada,Ltd.

The

1947

1953.

sales, and registered

Investment

Bullock.

percentage sales in¬

of each

Flat glass, used

K, :y stone Fund

gain
ago.

Estimating annual glass sales at and other scientists from various
billion
dollars, the
study sections of the world, is a member
contains a sales breakdown of the
society of the American Associa¬
principal types of glass products tion for the Advancement of Sci¬
crease

*

three-day annual meeting Dec. 28-

issued

the

at

29-30, on the University of Cali-"
fornia campus, Berkeley, Calif.

$l1/2

and

A

of

the
country's
oldest
industry,
glass making, is described in the

objectives, currently in¬
vested in

recent years

to

his figures.

The 21st annual report of
Group
Securities lists assets of $74,5±1,-

By ROBERT R. RICH

return, attaching the duplicate

copy

Over $80 Million
993

#

tax

Group Assets Now

NATIONAL

f

Chronicle... Thursday, December 30, 1954

at

Parser, Elizabeth 3, J^ew Jersey

OR

Volume 180

Number 5390... The Commercial and

Continued

from

Financial Chronicle

6

(2775)

figures—in

those

tive

page

as

interesting, informa¬
presentations—be made avail¬

able directly and

The Financial

The

Community ^

relaiionship between stock

broker

and

1952,

listed companies, who

writers'

commission

in

the

1950

Counter

offering was 1,1.75% and the offering price $4 per share. A little

public

two years later the commis-

over

sion

lu% and the

was

sold

at

$7. This time

investment
the

snares

firm

tribution

syndicate

rh

ves"^ °esimnayinSO40estat5e0s0

insurgent

The omcers and
.Ine nrr cere and Hireetero nf the
dnectors of the

had it not been for

our
continuing,
planned financial community

and

stockholder

relations

pro-

?On the basis of

$1

million

-^-$30,000 for the

In most cases of a public offering of additional shares, tne price
a day or two
prior

ment.

offering date and is based

shares

its

has

been

accurate

value, it

increased

and

mean

•

shares

000

is

point

a

on

this

that

a

company s

holders

are

„

»

—

'4

corporate

relations.

example,

program,

a

anc|

data

additional

.ketability

At such

0| inciUstry will continue to

they

will

by

are

further investment.

'

a

show

Managements

successful 'in

their
who

confidence

of

tinont

relationships

pany

the

St||k

American

mSy

Constant

develop and exparro

mJ^^i®K"gi'Oups

the

per-

which

with

the

underwriters.

also

in-

of this sort

rangements

mean

V
gained

r,

^Another
making

objective

the. company

^

tions

fyom

program.-

specific

public rela-

Again,

instances with

my

company.
-

Concurrent with

a

corporation's

growth, thought is given to listing
on

a

tive

national exchange. An objecof

our

financial

community

and stockholder relations program

a

few thousand

influence

majority of

can

the

financial

-tions

receive

regional organizations of The

have

doing'in this field.

been

business

ours

extensive

of

cussed

financial

of

associate

course

financial

an

gineering consultants.
The

commLinity and stockholders, be-

reports

-and

us

trip

public

a

but

a

per

share each

have

sary

to set the

to

groundwork

assure

a

neces-

succes.sful

and

at

coverage

and .is the

case

fruitful transition from Over-the-

prises.

Counter

all

times.

Such

with the"largest enter-

company

change

trading to a national exlisting. This was accom-

plished in February of this year
when Aeroquip was listed on the
American

Stock

Exchange.

But I

am

talking

about

a

that is pot among the
and yet whose achieve-

biggest

ments and prospects warrant
vestment consideration. ••

in-

dis¬

annual

interim

earnings

meeting

reports,

of

endorse

this

its

the

off.

it

publish quarterly earnings state-

It follows that

ntents. That in itself should serve

ment

as

instructive

prompting




to

un-

see

to

take

shoujd

be

kept

for manageth# initiative

and

to it that corrrpWte facts and

cial

public

regular "in

a

successful finan-

relations

program

is

person" contact with

stock¬

management

on

I

also

believe

friends

which

the

financial

many

have

we

new

made

in

community will

this view. *

There

not

are

occasions

many

when' management has

the pleas¬

of being complimented by the

ure

the

of

owners

last

our

when 94.4%

ment,

But

it

nice

very

was

stockholder
"It

to

interest

both to produce
and

ships.

a

the

company,

relation¬

This is the most enjoyable
meeting
and

the

I

there

part

and

of

have
is.

no

ever

We

to

come

questions
are

at¬

hesitancy

anyone

answer

asked."

were

of

fine management

shareholder

sound

show

and

understanding

problems that face the

the

they

me

(meaning the management)
commendable

hear

to

from

announce

seems

forthright

at

meeting,

of the shares eligible
in favor of manage¬

were

floor:

business.

stockholder

that

quite proud

of that commendation and believe

it

means

great deal to the

com¬

mind,

a

com¬

pany.

To

our

financial

munity and stockholder relations
has

been

I

ment.

worthwhile

a

invest¬

sincerely feel that the

sults which

we

have achieved

re¬
can

be shared

by many other publiclycorporations. To overlook

these benefits is
a

perhaps ignoring
management responsibility.

vital

"Duke" Hunters Have

35th

Anniversary

the

area—which owing to
a
completely ' in¬
activities

these

—

con¬

"exceed¬

ingly valuable to all concerned—
the financial com¬
munity and stockholders alike."
This company has spent consider¬
able time and money to maintain

management,

financial

good

The

public relations.
held

same

counsel

pleased

Wellington Hunter

outside

its

work.

this

in

note

to

a

engages

do

to

for

manu¬

which

facturer,

true

industrial

medium-sized

I

was

instance

relations program

be

must be able to
derived

benefits

that

show

measured

in

terms

can

of dollars

,

Essential to

our

and

excess

point.

to

A third category of financial
that "the cost of our program is
public relations material is p^rconsidered to be well worth the
ticularly directed, by the nature
Here again, specific
'of ■ its content^ to the stockholder expense."
and
"unsophisticated"
investor. -examples were given to show the
values of the program.
Progressive proxy material, letters
The worth of a financial public
new stockholders, explanatory

in

penny

in

has

size

sidered

of the company's "house organ."

stockholder communications and
^informative dividend enclosures

far

president

ternally-manned program

reprint

a

The results

expenditure.

our

example,

an

a

large steel corporation in the

a

Pittsburgh

reports,

value

a

amount,

a

of

on

experi¬

our

indicated

also

and

As

of

Other material in this group ineludes:

confirmed

soundness

nual Report.

are some examP}es:A national listing brings with mind that the securities brokers
We at Aeroquip utilize each of
it many valuable obligations. For are always looking for interesting these written media of communiexample, the New York Stock Ex- situations. Lack of time naturally cation regularly throughout the
change makes it mandatory to limits the scope of their coverage.. year» and with noteworthy results.
First

had

than

year.

this

a

cost

program

more

holders

of

and cents.
In

weighing the value of a fi¬
community
and stock¬

nancial

holder

relations

eration

should

contribution
tivities to

consid¬
to the
these ac¬

program,

be

made

given
by

the worth

of the secu¬

&

Mr.

Hunter

brated

of

15

Wellington

Mrs.

(Duke)

Day

Christmas

on

35th wedding

their

cele¬
anni¬

proprietor
Associates,
Exchange Place, Jersey City,

versary.

>

was

little

relations

gratifying

most

were

it

as

ence

non-professional readers,

additional

rounded

share basis after taxes, which
proper way to measure it, is

per

is

annual

well

our

A
the

in

the

in

''always

have

when specific need arises,
legal counsel, tax spe¬
cialists, patent attorneys and en¬

with several chief executives. His

,

cases—

full» consideration

Financial

of

Federation

services

as

owned

—

corpora-

the vari¬

Analysts Societies.
I recently had the opportunity
to find out what other companies

community

recommendation.< Some

company'^ affairs. Fore¬

National

be'divided

interest and ef-

both

the

retained

us

such

con¬

audience

most of these groups are

contact."

to

of

are

influential

very

a

with

two main categories. First is
prjnted material and second is "in

person

Such contacts

business

siderable importance in acquaint¬

has'nancja* an.d business Pfess, and
thousands upon thousands of se™Pkfri^
bJlletinscurities to consider for possible market letters and stock Puiietins.
The

help

out

and

profes¬

have

we

tended

and

the
most
important
contact which can
be

financial

ing

that

annual

groups.

Exclusively for the financial
community are analytical studies;
-upon the investment transactions financial
news
releases: backof millions of stockholders?
ground data for articles in the fitremendous
a

recommenda¬

before

,

a

securities

Financial

With

personal

this category is the functional An-

This audience of

atten¬

made is management's appearance

"The foremost communication in

speak -certainly in

I

relations,

we

exert

It

Business Groups

companies, other institutional in- of speeches by company officials
vestors and the ^financial and about their business, advertisebusiness news editors.
ments, product folders and copies

frequent result of*

a

community,

tomers' men, security dealers, statistical and advisory services, in.vestment trusts, banks, insurance

lpng-term • and f short-term
borrewings
and at preferred inter-

their

company's

possible

Perhaps

ous

mean
brokerage firms,
security
analysts, investment advisers, cus-

Readily available funds for both

eifective financial

^<

financial

specialized

-on

management, the stock-,cauge the content has been speand the >financial com- Jcjficaiiy designed for professi0nal

by

dis¬

view toward special write-

Contact

jnt0

Stockholder

both_by written

munity.

"known

a

with banks, insurance
cdmpanies and other lending in-

rates—is

and

the

figures

subscribers.

tions.

techniques of financial

public

ute(£ wit.h equal

y

by

lations

est

The

m^a and personal contact-—-be-

tfiat management advances its re-

an

a

ups

^^^ment gospel.^-^
com¬

fectiveness

,,jl-weTn

quantity" in investment circles is

stitutions.

other

bas s, effective channels of com-

an

appreciable savings in money and
time.

to

with

in¬

complete¬

and

draw

to

serves

sta¬

organizations

their

of

the

services

facts

these

tion

miSdle inin this country we

mumcation

Ar-

the

tribute

objectives by establishing and
Some printed material serves a
maintaining, on a year-round\dual audience and can be distrib-

existing stockholders,
rfequiring only a standby agree-;
ment

^

of

It is the iunctiofi of our: finan-

with

research

of

the

relations program to gchieve these

com-

with

contact

and

We

way

ac¬

During
utilized the

qualified

counsel.

to vote

the accuracy and

ness

Ex-

as

press.

of

an

1951.

engaged competent consultants to

fi¬

in¬

community and

the

of

sures

to

this

the

of

These

personal

financial

tistical

fi¬

a

Counsel

have

we

same

detailed

members

^esentsubjjfct, such

contributions

members

community.

in

the

thSt"'

k€iaFcommunity

have been able to place new

issues

of

co-owners

company

relationships
can
be
achieved
by
arranging
plant tours for representatives of

:tne lower and

panies for investment attention.
p 4 *

been

have

their

the

leading

Beneficial

McCormiclcJ Presi-

^

\vith

the

of

bringing about a closer,
understanding of
the company and its management.

is

thousands

for visits with

arranges

officers

more

of

program

,

since

these

share

ownership

a«d^wSS^coipora^n'y i-th™.^!! we.investeffeccompeting
withstlvely sprea<^fi .equity

which

time,

sional

tive

the

industry generally has belatedly
map-^ l'^J'ST^ed that our future financial

times,

this

the

that

of

benefits

relations

program

formal gatherings are most effec¬

and

the

public

tive

know

ha$*

arf 0°fUs °c "l°si^»n

corporate affairs—the chances

and

tween

the

and

answers

officials to discuss
operations.
"In person" contact work should
place emnhasis on meetings be¬

capital in times of

on"

information,

available

company

price level of^^e^lSP'demands an effective pubsecurities play am important p a r^
& srelat i 0 r1 s program. This propublic financing. If the share- because
many
of* these transac^S'*** must deliver to present and
owners feel that management
has^tions are predicated on the ex"j^d™kui*e stockholders and to secudone a good job with their prechange of stock.
analysts and meaningful facts
vious investment, and if tney feel
T
r nnl-ninn
a1i
fartnr25^^nin^ individual companies
that they are part of.the company,
ficance to
their role in »ur economy.

for

makes

acquisitions'securities business and

offers ;of

mergers.

ap¬

questions, checks the accuracy of

l

man-

terms

Aeroquip has had such

nancial

whep

company..

enables

appropriate material

representative

position? with respect to,-.Th&st do a tremendous educational

better

contact

preciably in the preparation of a
story. A financial public relations
detailed

in

against its cost.

and an effec£ 0f £be broa(j_
of security ownership,

.on

.experience
a.

evaluate

assistance
news¬

car^,j3e supplied which helps

in

states: "One vital

between

change, has also made

stock- >alreatiy discussed aspects of'
sources

«j

difficulties mighjj^^gg

community, thus gaining
prestige,.. in trade and

attracting

present

„

reports and

financial

and

moment and

base

magazmg^,

effective, places'the

note

of the best

one

«

dent

For

200,-

should

we

Time

shown that such

$25,000.

point

channel

supplementary

Personal

_

customer

*

At

Relations'

-

.

valuable

one-eighth of a point, oneof a point or even more
share to the company. A gain

one-eighth of

u

with

management to determine what
the editors are looking for at the

Analysis

Funston, President of

v

dustry

a

quarter
per

Keith

standing and reputation in its in-

tional

of

stories.

this

Professional

publications are al¬
interested in possible news

ways

.-s.ml%nalyst as manager of other peofurther objective of our fi-ajple s funds—will play a'decisive
nancial public relations prograraj&ipart in fostering that grovCTh."
was
to better the c 0 m p a n y'^yjci Edward T.

addi-

an

cor-

A

appraisal made of

may

G.

to

nancial
as

and

papers

com-

the New York Stock Exchange,

s

n

of Security

the

providing security analysts

brokers

Business

interests and

financial

Byf

measuring

affairs.

market letters.

are

their

well run,

-

more

two

who

•—

Most stockholders,
vesting public through ^printed
cpmpanies a r :^»®Tftodia, personal contacts aim other
will sqpport mana§^i&ghannels and,,, ..to the ^security

confident

the current market price of the

outstanding securities. '
If, over an extended period of
time, interest in the cofhpany's

Says

oven more.

;

is determined
the

and

hav<f, keen a?ert§d ^.by bett§& gt.0 - and j am confident that a
stockholder relations, good maQ*^MppeIl-planned program 0f-stockagement would ^have. pr"e vent^;?feolder relations—directed, to the

company.

on

,

nave*^ recent y ru^%aUse

■Some of these

$20,OuO

to

i

v -V

that

J;acks-

difference in commission arrangements means an additional

a:r

strong anti-management atj^,

even a
relatively
offering, let us say
$11/2 million, a 2%

to

to the

akin

about

Apropos to this is an article,, ^gement and the public is the sexi}al appeared in* Time
maga-^urit
anaiyst. The growth of fi:zlne on bepiembe^ 20, which dis- nancjai analysis into an mfluencussed ^e impressive list of com-^j pro£essicm has been both a
panies

public

to

^

■

*

public

stimulating interest in the

information for stock

4.

beg;nning

tAam.

small

easier

industry. a forward Association's excellent
to the American Management

American

financial

rity holder's investment.

number of shares oustanding, you
have a practical gauge with which

Mention has already been made

Stockholder relations receives*^™1!' . Assoc"*-"'
»—
"A -Company
constant attention" at Aeroquip. 'es?arcb stady
-Guide
To
Effective
Stockholder
We realized that "irOITl the very ^*U,
°

a

company are convinced that this
coula not have been accomplshed

n d e

a

company's

company's

«^

tfrouns

thl'°ughout

is

it

item,

..

tial than ever before what with

the

a

better,

com¬

brand

—

purchaser of the merits

Importance

s JriL
'
vinelnefe Columbla' Canada and
r

a

holds

needs of both publicly-owned

nhippfive

and

-

well

Drimarv

"securi¬

would like to quote from

closely

.

oUier prnnaiy-objective

headed

the^tock" Aerornim
the stock. Aeroquip

of

another
„

is

prominent authorities

national

a

jointly

underwriting

\

f

sell

known

a

I

still

rule

convince
0f

product

Nevertheless, the basic

names

better financial

relations.

g,.,,

were

perhaps

are

trading. Thus, listing it-

self brings about

.

the

aim of

unwisely taking advantage of the
laxity
permuted., by, Over-the-

The under-

like

very

relations representatives with the

the

case

ties."

lie

to the company.

is

this

mercial

ceects

investor

that of salesman and customer. In

And Stockholder Relations
we had a much larger puboffering in terms of net pro-

continuously.

groups already referred to
comprising the financial com¬
munity. Periodic visits should be
made
by company officials and

27

Mr. Hunter is

Wellington

New

Jersey.

Hunter

^

Meehan With Cruttenden
(Special to The Financial

Chronicle)

CHICAGO, 111.—Willis J. Mee¬
han has become associated with

Co., 209 South La

Cruttenden

&

Salle Street,

members of the Neiy
Midwest
Stock
Ex¬

York

and

changes. Mr. Meehan in the past
was
with
Republic
Investment
Company.

23

(2776)

The Commercial and Financial Chronicle...
Thursday, December 30, 1954

Continued

from first

shorter

page

As

We See

It

markets of the world

In either event the "best laid
schemes of
men" in the "one

mice and

exist, but

requires

space

country"^must go oft awry.
sought to avoid flese incompatibili¬
ties by the
advocacy of a system of planned economy
not for "one
country" but applied on a world-wide basis
—not
realizing, perhaps, that this fits neatly into the
pattern of Kremlinism.

and

For

our

part,

erally would be much better off
home

with

freedom

sought

fact

that

shackled. This is

Dealers

have

cannot

we

have

a

the

free

one

and

the

homeland

or

equally loud in demanding greater free¬
dom of competition for
foreign made goods. Of course,
these are generalizations to which
exceptions appear from
time

are

time.

to

These

followers of

Roosevelt and Truman

^would

see to it that their favored ox is not gored, but
otherwise they would have encumbered American busi¬
to take

ness

on

specific cases will serve to give concrete reality
inconsistency. This modern urge to inject govern¬

ment

into

is often

business has its roots

realized. Take

deeper in the past than
agriculture as an example. Ordi¬

nary tariffs are of doubtful
this country who

benefit to

those

farmers

regularly and normally produce

in

positive role in

high

on

consumption, but embargoes
obviously manufactured grounds have long been in

effect in
devices

number of

a

cases.

In

more

recent times various

have been

developed for preventing our farmers
feeling competition from abroad in the normal or
natural
way. Why is all this "necessary"?
Are not our
from

farmers
our

efficient

as

lands

as

those of other countries? Are not

productive? The explanation, or one of them,
is simple. By various devices we have
managed to keep far
too
large a proportion of our population in agriculture.
One result is a vast over
production which, in accord with
political philosophies of the day, must be subsidized to
keep, the farmer happy. The consumer, meanwhile, is not
as

permitted to enjoy the natural fruit of

ply because it would add

an

abundant sup¬

to the burdens of

a

paternalistic

government.

Shipping is another classic example. Several decades
have

'

passed

since

restrictions

upon

the

crews

which

might be used to operate American ships brought about a
situation which made it
difficult, if not impossible, for
ships under the United States flag to compete with
foreign operators. A long and sustained
struggle, not so
much

with
to

to

correct

the

underlying difficulty as to offset it
taxpayers' money, finally succeeded in
giving effect

ship subsidies. The system has grown and
expanded
as the
years have passed. The reason for it all is
found,
obviously, in our policy of permitting, even
encouraging,
wage and other conditions of work in this
highly competi¬
tive field which
nation
this

the

on

area

are

out

of line

with those

of any

be

to

other

globe. Plainly, free and full competition in
compatible with "national policy" in other

left

What
the

state of affairs has

throughout been
policy which strongly stimulated
wage
farthing from the situation, often
a
farthing which could be exacted
successfully only with
the help of continued
inflation and
general support by
law from
government. At the same
time, the net effect of
accompanied by

in

a

to exact the last

the .unionism
the

which

was

thus

nurtured

has

definitely

of further advance in what is known
these days as
"productivity," that is, output per man hour.
On top of this comes
continuous demand for shorter and
way




ail

their

run

need

for

but

must

own

course.

nowadays is not

controlling
the

rather

governmental

not

business

nature

action,

its

of

timing,

and its extent."

Governmental

action

in

con¬

may

take

The

first

trolling business cycles
number

a

of

forms.

line of defense against a recession
is the complex of built-in stabi¬

rates

fall,

terms

under

the

nance

goods

It

to

was

that

the

second

quarter

the

third

reduce

turers,

and

and

of

orders

they

manufac¬

are

laid

many

off.
men

their

jobs, and
many others were employed only
part time. But the disposable in¬
come of these
workers, and there¬
fore, the expenditures which they
could

did

make

for

decline

not

consumers'
much

as

goods
their

actions

sucn

Reserve

commercial

Banks
re¬

reserve

lowered

banks'

re¬

quirements between July 1953 and
September 1954. At the same time,
the

Treasury undertook to do its
own financing
so as not to com¬
pete with private enterprise foi
long-term capital funds. The de¬
in

interest

factor

in

the

steady

If the

check

construction

year.

Federal

of

ment's

third

fiscal
either

to

line

of

It

can

policy.

business

stimulate

govern¬

defense

is

undertake

consumer

stream

of

its

expenditures

own

and

enough

or

spending
by
reducing
it can add directly to the

or

spending by increasing

services.

The

on

choice

depends

pay

fell, mainly
because
they
began to collect unemploy¬
ment insurance, but also because
a part of their
pay had been with¬

extent

on

soon

cession

held to

as

income taxes.

pay

When

stopped, the taxes could
longer be withheld; and in this
pay

way

the

part

of

government

absorbed

the

of

impact

a

reduced

business spending.

So, while total

personal

derived

income

from

production fell at ah annual
of

about

billion

$2

rate

between

clearly beyond the power of
the largest of our States and
municipalities. The expenditures
the

of

individual

of

instru¬

of

about $2 billion, and tax payments
fell at the rate of another billion.

stabilizer

eral tax structure

is

in

our

tax.

the

When

Fed¬

corpora¬

corporate

re¬

For

example,
public works would

on

the part of busi¬

on

to reduce

inventories, the
help by increasing
the disposable income of individ¬
government

speed

rate

considerable

the character of the

attempt

an

nessmen

uals

so

ing

to increase

as

consumers'

on

the

On the

into

other

total

total spend¬

goods,

process

inventories
in

can

of

line

and

to

bringing

with

sales.

hand, if the decline

effective

demand

is

ac¬

companied by a sharp decline in
new private
construction, the ini¬
tiation of

a public works
program
designed to stabilize the construc¬

second

tion

second

about
sult

of 1954, the tax
corporations fell by
$4 billion, merely as a re¬
of

of

rate.

this

for

reduced

much

and

decline, and quite
change in the tax

any

Consequently^

available
were

rate

quarter

apart fom

as

annual

an

$7V2 billion between the
quarter of 1953 and the

liability

the

as

the

sums

dividefid^payments
less

ftnan

one-half

corporate profits fell;

record

shows

that

divi¬

dend payments were

million

quarter

actually $300
higher during the second
of

/l954

than

they

were

during the second quarter of 1953.
The
of

local

and

Furthermore,

government's
defense i against a

second

line

recession

is

monetary policy.
The central
bank, by ea\ing credit conditions,
can stimulate
both consumer and
business spending.

When interest

within

their

structures
tomatic

tax

fewer

and

stabilizers

weaker

than

eral Government has.

these governmental

bating

they have
spending

and

inflation

the

au¬

Fed¬

The role of

units in
and

com¬

deflation

therefore, be a supporting
than a leading one.
But
play a supporting role
requires
better
fiscal
planning
must,

rather

to

even

than

have been able to expect

we

from

State

many

and

municipal

governments in the past. '
The first task of the local gov¬
is

ernments

to

manage their
and
receipts that
they will not counteract efforts
being made elsewhere in the econ¬
so

expenditures

omy
to promote stability.
means' particularly
that

should

This

they

avoid

being placed in a
position where they have to con¬
tract expenditures and raise taxes

during
of

recession.

a

ernments
it

In

face

the

strong deflationary move¬
most State and local gov¬

a

ment,

have, in the past, found

to contract at least
expenditures for new con¬

necessary

struction.

For

example, the new
outlays from State
funds, which averaged

construction
and

local

$2,104

million

between

1925

and

1929, fell to $1,334 million in 1932,
to

$/07
reached
1935.

million
a

low

This

in

of

1933,
and
$616 million in

fiscal

was

perversity

at its worst.

With

good

planning, it should
municipalities

be possible for most
to

maintain

tion

their

outlays

construc¬

new

during

minor

re¬

cessions.

Those local governments
which are able to finance at least

a

part of their public works out¬

is

increased

income

State

lays on a
pay-as-you-go
basis
continuing at high levels. should have no
difficulty in con¬
If, as in 1953, one of the
principal tinuing these programs. Most of
factors underlying the recession
these governments rely on
prop¬
is
tion

benefits

a

a

be appropriate under circum¬
where
private construc¬

not

July
July 1954, social security
at

to

itself.

spending

1953 and

Another

The

fluctuations

is

goods and

stances

no

Government.

economic

even

their

policy are not
recession, the

a

the

major
in new

a

automatic stabilizers

monetary

taxes,

since

rise

residential

during the past

to

rates

of 1953 has'been

summer

ments

the

a

,

and

serves

and

1954.

months

lost

women

between
1953

to

workers

few

a

of

quarter

their

Within

they did

busi¬

expand their plants.

or

Federal

private

the

durable

encouraged to go into

encourage

increased

when

as

fi¬

can

of

attractive, and

are

equipment

lizers which automatically cushion
the effects of an
initial decline
in total spending.
For example,

inventories,

they

the

the long-term capital market for
funds with which to purchase new

cline

businessmen start to reduce

which

purchase

more

nessmen

find

consumers

of about

throughout most if not all of American
industry. First of
all, throughout most of these
years there has been a
conscious, studied effort to encourage and to
develop a
condition of
inflation—by whatever more palatable name

"food

depression

profits declined at

Through,. Industry

But since the advent of the
New Deal in the middle
30s
essentially the same set of conditions has arisen

be called. This

in

women

.

All

earners

of.,, economic

and

debate

we

cycles,

tion

it may

level

that economic storms of in¬
and

is not

directions.

helping to main¬

life, and in both of our
parties, now generally

flation

the

that

assume

Government; their bor¬
rowing capacity is more limited;
and they lack the power to create

Men

of

today

say

governments
represent - only
a
small
fraction
of
those
of
the

13

page

activity.

more

than is sufficient for domestic

the

money.

agree

A few

we

control

heavy socialistically created

Municipal Capital Outlays—
A Force in Economic Stability
political

Sonic Cases in Point

to this

from

walks

foreign competitors right and left.

credit, and
increase tax rates
expenditures.

reduce

Federal

Continued

a

as

major
of
the
responsibility 'for
maintaining economic stability, we
are
of course thinking primarily

.

tain

fast

as

time the gov¬

same

share

fact that the New Dealers and the Fair

steadfastly failed

rise

not

government must

our
borders, but neither is it to be
removing trade barriers leaving the

simply

as

in

of

American producer to
carry
burdens.

other

refused to recognize.
They are proud of their bondage to the idea of national
planning and extensive restrictions of business operations
at

in

fast

as

by

necessary,

When

Chinese walls around

and

abroad, leaving to natural forces the task of
management, but nothing is to be gained by blinking the

•

if

and

is obviously not to be found in building

answer

and

ernment could tighten

should not expect to have lower

we

will

ments

restrictions.
The

gen¬
both at

course,

rise

not

itself,

profits. At the

than

costs

firmly believe that mankind

we

Of

money.

drawing

by

disposable in¬

taking a
substantial part of rising corpo¬
rate profits so that dividend pay¬

foreigners in all products, but our producers
certainly have legitimate complaint when costs generally
are
higher here by reason of governmental interference

A few dreamers have

<

income

limi¬

some

help
that

so

would

come

tation of specifications. At
any rate, the situation has now
reached the stage where actual cost of
production in many
countries is less than here—thanks in
part to strictly upto-date factories built abroad with American
taxpayers'

course.

would

part of income payments to

a

individuals

Various other governmental
policies which reduce
capacity of the businessman in this country to com¬
pete with foreign producers either here or in the neutral

presumed to have a system of
''planned economy" designed to suit their own needs, or
else they, or some of
them, must be willing to let nature
take its

bilizers

the

be

must

In this situation the automatic sta¬

off

ability.

country" could not possibly hope to succeed without a
seal, or something approaching a seal, at its borders.
Other countries

work

weeks—which further reduces output
per
week, which is, after all, the real test of competitive

man

industry would be an effec¬
tive way of checking the reces¬
sion.
In

ally

taxes

it is today

summary,

accepted

taining

an

that

economic

ernment must

sponsibility

gener¬

government

active role in

stability.

assume

for

main¬

the

Gov¬
major re¬
maintenance
a

of total effective demand.

It must

do this

by providing built-in sta¬
bilizers, by adopting appropriate
monetary policies, and by using
its taxing and spending powers. In
the above

tioned

discussion, I have men¬
of the ways in which

some

government

depression.

could

combat

a

for

the

bulk

of

their

revenues, and
this tax is quite
insensitive to changes in the level
of the national income.
Munici¬

palities that depend
erable

extent

taxes

come

to

a

sales

upon

will

be

consid¬
and

in¬

confronted

with

sharper drops in their re¬
ceipts at the onset of a recession.
But

these

local

governments

should be able to absorb moderate
reductions
in
receipts
without

having

to cut-back their capital
outlays if they have been farsighted enough during the boom
to

years

such

must take

the

erty

come

the

and

set

up

for

reserves

just

contingencies^ The high in¬
elasticity of [an income tax,
somewhai

come

elasticity

make

these

less

of\a

high

of

sources

in¬

sales' tax,
revenue

particularly productive during pe¬
riods of prosperity; and it is dur¬
ing such periods that the govern¬
ments with these levies should be

making provision for the
bial rainy day.
But

good
ties

if

we

can

planning,
should

their

new

not

say

most
have

prover¬

that with
municipali¬

to

cut

back

construction

outlays
mild recession, it. should

If the problem was durjng a
checking inflation, 4he gov¬ follow that with better planning,
responsibility would,-of some if not many of these gov¬
course, be to check total spending. ernmental units should be able to
one

of

ernment's

Volume 180

Number 5390

...

The Commercial and Financial Chronicle

(2777)

29
'fa

i

pursue
an
even
more
postive
contra-cyclical public works pol¬
icy.
This is the real challenge;

but is it

which the local gov¬

one

ernments

dents of

Some

meet?

can

stu¬

that will

insure the

continuity of

recessions.
All
often, the first appropriation

planning
too

during

or

what form it should take. These

questions

to be cut at the onset of a decline

fiscal

is the

studied

appropriation for architec¬

related to the broad¬

are

problem

er

of intergovernmental

by

which
is
being
special Presidential

a

at the present time..
doubtful. tural and engineering work on
In one recent study of this veryt.
Suffice it to say, however, that if
proposed new projects.
the occasion did arise for the Fed¬
problem it was stated that "there
Financing may prove to be a
can
be no blinking the fact that serious
eral Government to contribute to
stumbling block to the
at the moment local units of gov¬
financing
of
local
public
counter-cyclical public works pro¬ the
ernment are as incapable of a high
the
effectiveness
of
its
grams of local governments unless works,
degree of advance planning, and plans are laid well in advance of policies in stemming the recession
©f the great amount of local par¬
would depend to a very great ex¬
the emergency.
Various sugges¬
tent on how prepared the munici¬
ticipation in choosing the purposes tions have been made of
steps
of
stabilization
expenditures at which these
palities were with well-planned
governments might
the local level as they were at
programs of projects that; could
take to finance accelerated outlays
the onset of the great depression.
be started at once.
during a recession.
Some have
Although over the long period
proposed the annual budgeting of
IV
there appears to be growing inter¬
larger amounts for capital im¬
est in local planning, on the whole
Under the Employment Act of
provements than the municipality
the State or local planning com¬
1946, Congress declared that it
will
actually spend, the /excess
mission is a neglected Cinderella
was
"the
responsibility of the
being put into a reserve fund for
Federal
Government
to
use
all
except when some serious crisis
emergency use.. Some municipal¬
in local development turns rags •«
practical means consistent with its
ities were able to do this during
into silk.
But when the ball is
needs and obligations and other
the war, when they were unable
essential
considerations
of
na¬
over, this Cinderella returns home
to get the necessary materials for
—and stays home. It is no exag¬
tional policy, with the assistance
the construction of new^ schools,
and cooperation of industry, agri¬
geration to say that the long-r,un
Under pres¬
results
could
be
the demise of roads and hospitals.
culture, labor, and State and local
ent
circumstances and with the
local government as an effective
governments, to
coordinate
and
existing needs for such facilities,
force in American society."!
utilize all its plans, functions and
it would not be
easy
for most resources for the
What,
then,
does good
local
purpose of creat¬
follow
this ing and
government planning for a municipalities ; to
maintaining, in a manner
course
of action.
calculated to foster and promote
counter-cyclical public wftrks
Alternatively, it has been sug¬ free competitive enterprise and
program
require?
It
requires,
first, a careful and complete as¬ gested that municipalities should the general welfare, conditions

government

are

sessment of local needs for

build up

under which there will be afford¬

facilities.

during

ed

public
requires a
continuing
program
of
capital
budgeting. And third, it calls for
Second,

methods of
Without

local

it

decisions

advance

concerning

financing.
careful assessment of

a

that is
recession may
be spend unwisely. Most munici¬
palities today have sizable back¬
logs of needed public facilities.
They need better streets, more
and
better
schools, better
and
larger
hospitals,
and
improve¬
the

needs,

money

spent in combating

a

ments and additions to their water
and

sewer

For the coun¬

systems.

whole these backlogs are
so great that no foreseeable public
works program can possibly catch
try

a

as

The problem, then, is
of finding something to

to them.

up

not

one

but of deciding what should
be done first.
Each municipality

do,

has

review5

to

its

situation,

own

and to rank its needs in the order

of

their

urgency

in

and

of

terms

growth;

desirability,

or

expected

its

;
advance

Effective

of
public works requires some form
of a capital budget.
The United
Government

States

planning

Presidential di¬
rective
which, for the past 15
years,
has
required
Federal
agencies to formulate their plans
six
years
in advance, to assign
priorities, and to submit proposals

operating under

a

their borrowing capacity
good times, so that they
have some reserve capacity

will

fall back

to

the

In

during recessions.

on

cities

of

case

which

have

already used up most of their bor¬
rowing capacity, this would mean
that current capital outlays would
have to be financed, at least in

basis,
that outstanding debt would

part,

on

and

pay-as-you-go

a

have to be retired faster than new

debt

being incurred.

was

In the

have unused

cities which

of

case

borrowing capacity, it would mean
out of current tax''re¬
ceipts projects which have cus¬
tomarily been financed through

financing

These two ap¬

the sale of bonds.

proaches are in substance not very
different, although the latter
would seem likely to be more ac¬
ceptable

municipal

to

taxpayers

than the former. We have a nota¬
ble

city that has
the latter approach success¬

example

tried

of

a

in Milwaukee.
Since 1943,
that city has been able to con¬
struct over $170 million of capital
fully

improvements and to wind uo this
program with a debt of only $35
million.

currently

is

In

unable to fi¬

been

have

palities

where munici¬

states,

some

such necessary facilities as

nance

school buildings
debt limits, use

within their legal
has been made of

year

lease-purchase contracts with a
State authority.
These contracts
have made it possible for the local

other
things
which of these projects they wish
to start in that year, and how fast

government to acquire a facility
without having to finance its con¬
struction themselves.
Some per¬

they desire to push them.
Since
these six-year programs have to
be revised and brought up to date

sons

to

the

Budget Bureau

indicating

each year,

each

among

the government depart¬
long-range

have developed

ments

this device

in

see

a

method

certain types of pub¬
lic works during a recession.
As
of financing

general

a

more

for

a

rule,* however, it costs
municipality to finance

projects.

capital improvements in this
than it does by direct bor¬
rowing. Consequently, it is doubt¬
ful
whether
local
governments
should be urged to resort to it. In

these

many

which

perspectives
have

they did not

Furthermore,

before.

the

Budget Bureau has had more time
review and analyze proposed

to

With the approval of
projects, and the preparation
©f the detailed plans for their ex¬

its

way

tracts

lease-purchase

cases,
are

con¬

being entered into only

the government is in a because of unrealistic debt limits
which prevent municipalities from
position to move counter-cyclically
borrowing as much as they could
with promptness and certainty.
if assessed valuations had risen
Many cities and states also use
as much as prices generally since
capital budgets for their normal
the war. The adjustment of these
operations. This and the develop¬
ecution,

ment

of

increasing

an

number of

city planning
groups should facilitate a
rapid
but orderly execution of any anticyclical public works program.
But much remains to be done if
and

metropolitan

such

a

program

More munici¬

palities need to accept the idea of
the

capital

their

budget ancf to build
construction

own

limits would

in

programs

1 Robert

and

A.

a

Dahl

device is needed
and Charles E. Lind-

"Variation in Public Expenditure"
"Income Stabilization for a Develop¬

blom,
in

ing Democracy," Max F. Millikan. Editor,
Yale University Press, 1953, p. 393.




to be called for

but

case;

any

works

during

In the

cession,

have to

a

recession.

event of
some

a

prolonged re¬

form

would

assistance

be extended

of

Federal

be

kept

up

for

to

including
self-employment,
able, willing and seek¬

those

for

ing to work, and to promote max¬
imum
employment,
production
and

purchasing power."

Salesma

It
is
clear, then, that when
Congress gave this important as¬
signment to the Federal Govern¬

ment, it

was

that the

aware

would

achieve
in
carrying
responsibilities
under

their

could
and

count

the

on;

assistance

cooperation

of, the

State

An Effective
The

local

of the

things which local

ments

do

can

to

govern¬

help the Federal

of

some

the

I

have pointed

specific

out

which

steps

should be taken by these govern¬
to
increase the effective¬

ments

of their contributions to

ness

objective.
leave
that

But T do

/

with

you

I

believe

not

the

that

this

want

to

impression

economic

sta¬

bility and growth can be achieved
by
the
actions
of
government
alone,
however
important
and
helpful these actions may be when
they are soundly conceived and
skilfully
executed.
In
closing,
therefore, I should like to read
you

lines

some

section

of

the

port of the

from

1954

the

closing

Economic Re¬

President, which

transmitted

to

the

was

Congress

last

January.
"The

greatly

can

gram" of that city to offer Ameri¬

Telephone & Telegraph

can

stock to

mon

in their

community. Not only

the

unusual

ad

striking

a

could

it

pass

discovering

obtain

5%

through

that

when

black

usual

the

type, .on

\

copy

Advertisement
Savers

.

white

was

Directed

and

gray.

on

has

it

been

their

savings

defi¬
nitely goods prospects for invest¬
on

ment

are

type

securities, and leads
produced from this type of adver¬
tising
should
be
productive
if
properly followed. The ad began
with the heading, "Your Savings
Can

Earn

You

Return

a

of

Over

5%." Note the combination of the
of savings

with

twice

that

forms

indicated

an

which

return

income

is

about

on

many

of

obtainable

savings plans available
to the general public today. Not
only is the Telephone company
stock known to millions of people
who

are

investors

now

in

securi¬

.

savings.

investment

of

smaller

and

who

for

a

Stability

am■

-

advertisement

course.

carried

the

of

bottom

But

it is well to recall the accumulated

experience

of

generations

which

has taught us that no government
can of itself create real and
lasting

prosperity.

A

thriving

depends fundamentally

economy

on

the

office

firm's

the

was

evenings

Wednesday
and

in

the

interests

their

of

families

this

is

the

combines

can

render

to

When

tion.

tain
of

is

stability and insuring

protection

for

the

therefore to create
in

ment

make

which

new

men

jobs,

to

a

flobr

population,
an

are

environ¬
eager

acquire

to

new

tools of production, to improve or
scrap

the

old
and

design

ones,

and
pay

ter

thus

be

develop

able

and

new

new

advertise quality

you

in
a

good company. When you use
full page to do it you are going

to tell your

story to

to

higher wages and provide bet¬
working conditions.
is

Federal

will

continue

foster

to

of environment."

The Fed¬

fostering and
this

kind

great many

a

investors. And when you do it as
well

Let's have

fying.

A. T. & T.

in

return

firm,

must reap

you

harvest that will be most grati¬

a

provide

this

as

and

more investors
all the other

great American corporations. And
the

do it is to tell the
language
they
can

to

way

in

people

understand.

YEAR!

NEW

HAPPY

that there is safety in

the idea

to

dollars greater than that available
in

To Be

any*-other form of investment,

bit of urging and con¬
convincing to gain ac¬
ceptance of the idea that possibly

it

takes

a

siderable
other
not

investment

their

that

dissipated

greater

a

if

of their dollars

can,

income

sufficient assur¬
savings will not

be dissolved on Dec. 31 and a new

formed

move

the

into another form

record

Tola!

assets

else
resources?)

Viner,

member of

Exchange, President; J. Ran¬

dolph Grymes, Jr., member of the

these:

as

Exchange; Phillip Goos, Ely Mar-

$10

over

offers

A.

be

Officers wifl.?

of Jan. 1.

Edward

be

the

will

corporation

r

as

A. T. & T.

of

with such statements

embe

m

some

of investment. This advertisement

stressed

Corporation

partnership of Edward A.
Viner & Co., 46 West 55th Street,
New York City, members of the
New York Stock Exchange, will
The

they

but also

return,
be

of

forms

only bring

ance

golis, and James J. Viner, VicePresidents; William J. Wobbkind,

billion—

larger

capital

Secretary-Treasurer.

'
1

' 1

,

'/J

'

-

J

'

•

Same dividend for past 32 years

Robinson & Go. io

—(that* takes us back through the
roaring '20s, the depression '30s,
World

Was

II

the

and

Korean

Be Formed in Phila.

War)./
Dividends

April

15,

times

a

July

payable

Oct.

15,

Jan.

PHILADELPHIA, Pa. —Robin¬

15,

(a

—

great

One

family

out

of
a

every

45

join

not

some

of

these

and

benefits

for

Quoting
and

again,
taxes

as

(Special

to

with

with

Chronicle)

Financial

F.

Doyle,

J.

Raymond
Sutter

The

Calif.

FRANCISCO,

SAN

obtain

S.

Jr.

Smithers
He

Street.

Shuman,

&

was

Agnew

&

is

—

now

Co., 41
formerly
Co.

Joins Witter Staff
(Special

living
high as

to

The Financial

FRANCISCO,

SAN
Richard

multi-billion dollar company. You

cisco Stock Exchanges.

45

staff

Montgomery
the

Calif.

—

Chapman has joined
of Dean Witter & Co.,

of

the

Chronicle)

A.

time in our history, here
then, is a way to increase your
savings income by investing your
surplus funds in the shares of this
any

New.

Secretary.

With F. S. Smitbers

in

too?).

"With

the

of

Exchange,

Stock

York

You

now

and Henry B.

member

Robinson,

V

costs

Philadelphia-

dent and Treasurer,

Rising Living Costs More
Income

123

at

Baltimore Stock Exchange, Presi¬

shareholder—

them

offices

the

of

member

(1,200,000 stockholders are also
receiving these more generous in¬
come checks every three months;
why

with

Broad

St., effective Jan. 6.
Officers will be Robert Robinson,

any

United States

Stock

formed

South

banker, or competent
investment authority, the answer
must be YES).

the

Inc., members of the
Exchange, will

Co.,

York

New

be

employees

&

son

15—(four

year).

600,000

mar¬

willing

Cer¬

p.m.

advertising
that
objectives of

dual

stocks such as Telephone you are

our

besides helping to main¬

on

p.m.,

For those who have not bought
stocks, for those who are clinging

—(ask
economy,

9

good institutional copy with that
of
obtaining qualified inquiries
and leads for the sales organiza¬

and communities.
The American army of employed Americans all
people are highly skilled, imagina¬ contributing to the earnings and
tive, enterprising, and forward- growth of this vast organization).
looking. The best service that the
High quality investment rating

government

open

till

Saturdays to 1

on

tainly

Unquestioned

en¬

terprise of millions of individuals,
acting in their own interests and

tliey

under

page

signature mention was made that

.

prosperity.

a

highlighted by two bold
pointing toward it from

each side of the page. And at the

increasing the
of their savings.

Is

I

The

of

power

invest¬

All people
security for
not talking

speculators, of

be looking around

may

method

earning

that

income

and

about

it is also not unfamiliar to
those, who have been using other
much

of

peace

their

acquired.

their

ties,

forms

them

income

arrows

5%

certain

a

is

coupon

People who would be interested
in

investing public
to" buy MORE
savings" and

their

want

Toward

Investors

why any
try to sell

ment wltfrjiot be dissipated after

in

Telephone & Tele¬
of the
the white

for

obtain

also

reason

wish

they

mind-assures

avings

Company.; instead

graph

his level about

should

the

to

INCOME

at

shares

no

see

statistics

they could

purchase of

a

I

securities firm

readers

s

earth and it talks to the

to

today.

the

without

their

on

American

page

that
by

advertising that is

the things which are on his mind

was

but

understand.

anyone can

financial

average person on

also of such

were

nature

not

least

the

in-size,

and layout

copy

that

is

down

com¬

and investors

savers

you

copy

"Daily 'tele¬

the

buy as many or as few shares
wish." This is the kind of

can

.

help to maintain

Government

apportioned,

&

It

kets, increase efficiency all around,

long at their

Way to Sell Securities

Robbins

L.

advertisement in

(what

Government

H.

as

Government combat economic in¬

stability; and

of

Inc., 40 Pearl St., Worcester,
Mass., recently used a full page

and

governments.
I have out¬
for you'this evening some

lined

firm

Co.

a

eral

be

out
the

Employment Act would depend in
part on the extent to which they

I shall not attempt

would

suc¬

which the Federal authorities

cess

By JOHN DUTTON

idea

if municipal

discuss here howlsuch

assistance

ties,

employment opportuni¬

products

pre-depression levels, let alone at

higher levels.

useful

undoubtedly

outlays on new construction were
to

around it;

seem

it would be an
important step in making it easier
for local governments to finance
an
accelerated program of public

is to have max¬

imum effectiveness.

Securities

relations

Commission

New

Street, members
and San Fran¬

York

30

The Commercial iiUd Financial Chronicle

(2778)

Continued

jrom

Wholesale Food Price Index Reverses Downward Course

4

page

Following the

The State oi Trade and

,

the steel production decline was not

One of tne reasons why

felt

While 1954 dropped, it started down from such a
high level that it could fall and still be respectable. When the
final ton of the year is poured this week, the 1954 output of steel
1953.

of

year

.with $6.72

total about 88,000,000 net tons, a figure
which puts this year among the eight largest in history.
The steel industry has bunt up so much strengtn that it can
make a good production record with one hand tied behind it. It
coasted into one of its eight largest years this year, using only
70.7% of its capacity. It could use so little of its capacity and turn

decline

of

the corresponding date

on

Moving

upward

wholesale

in

out

much

so

capacity

its

because

steel

than

larger

was

ever—

124,330,410 net tons.
One of the things that moderated the effect of the decline in
ingot production was the high level of steel consumption.
It ran 14% above output. Consumers drew from inventory,
steel

Consumption of finished steel totaled around 73,000,000 tons
This was only 9% below 1953 mill shipments of finished

were

The
of 31

index

the

represents

something more healthful and encouraging than
After the first half, 1953 production went downhill.

displayed

record

the general

level.

1953.

along low but level in the first half and then
upward in the last half.
Sensing that steel production was in only a temporary lull,
steel industry executives avoided panic early this year and sus¬
tained their price structure^. Some economic analysts say this
pricing prevented a general demoralization of
price cuts would not have sold any more steel
but would have weakened the public's confidence in the country's
solidity

steel

in

Deep

these analysts., contend.
Solidity in the steel market did not prevent competitive ad¬

economy,

went on all year, states this trade

They

pricing.

justments in
paper.

The competitive spirit that has

been resharpened in the steel

industry will keep steel production from dropping as far this
holiday season as it did a year ago. Now there's considerable busi¬
ness to be had, and each company is going after its share, "Steel"
concludes.

1

*

Reversing

eprating rate of steel companies having 96.1% of the steelmaking
capacity of the entire industry will be at? an average of 77.4% of
capacity for the week, beginning Dec. 27, 1954, equivalent to 1,tons of ingots and steel for castings as compared with
72.4%< (revised) and jl,7£6,000 tons a week ago.
The industry's ingot production rate fop the weeks in 1954 is

846,000

based

now

on

anpual capacitysof 124,330,410 tons' as of Jan. 1, 1954,

For the like

duction

week

1,941,000 tons.

month ago the rate was

a

A

year

placed at 1,706,000 tons

was

comparable

because

ago

75.7%.

or

capacity

was

tons

pro¬

The operating rate is not

lower

The percentage figures for last year are

of 117,547,473

81.4% and

the actual weekly production

than

based

capacity
on

annual

in

1954.

capacity

of Jan. 1, 1953.

as

Electric Output Eases

From All-Time High Record

of Previous Week
tr~x

the

This contrasted

price per pound
and its chief func¬

-ir....'-;.

.

Latest

downward

Week

trend

i

with

275.93

week

a

Bullish

India to

all-time high record

established

This week's output constituted a decrease of

kwh.

or

15.0%

week but

an

509,000,000 kwh.
1,226,000,000
1,850,000,000

increase of

the comparable 1953 week and

over

the like week

over

the

4

preceding week.

below that of the previous

kwh.,

in

ir?

1952.

Holdings Drop Further to 1.8% Under Prior Week

Loadings of

revenue

factors

of any

absence

Corn

sharp
dent

substained

futures

on

slightly to
a

week

freight for the week ended Dec. 18, 1954,
below the preceding week, accord¬

Domestic

industry for the latest week, ended Dec. 24,
1954, according to "Ward's Automotive Reports," assembled an
estimated 123,272 cars, compared with
151,924 (revised) in the pre¬
trucks

amounted to

141,563 units, a decrease below the preceding week's
output of 32,270 units, states "Ward's." In the like week of 1953
85,259 units were turned out;
week,

the

agency-reported there were 18,291 trucks
as against 21,909 (revised) in the
previous
week and 17,951 in the like-1953 week.
i
"^Ward's" estimated Canadian plants turned out
4,850 cars and
608 trucks last week,
against 5,337 cars and 696 trucks in the
preceding week and 6,049 cars and 939 trucks in the comparable

made in this country,

1953 week.

Business

in the

year,

and the

in

grains., Trading
Trade two] weeks

in

raw

steady to firm

was

as

Roasters'
five

stocks

coffe

Cocoa

years.

stantial

of

arrivals

turned

of West

manufacturer

worked

lower

as

hand

on

weaker

African

interests

in

production

the

at

cocoa,

the

and

Failures

Rise

for

Commercial

and

Dec.

23

industrial
from

208

Week

a

failures
in

Dun & Bradstreet, Inc. Casualties
a

and

Greatly Exceed

Year Ago
the

spot

mai^et.

stocks

were

increased

to

213

in

the

year ago when 162 occurred or in 1952
when there were 95,
out they remained 14% below the
prewar toll of 249 in the com¬
parable week of 1939.
Liabilities of $5,000 or more were
involved in 172 of the
Week s failures, compared with 173 in
the previous week and 139
last year.
An upturn also appeared among small

wjth liabilities under $5,000, whicl> increased

casualties, those

to

41

from

35

exceeded their 1953 toll of 23. Eleven businesses
failed with
bilities above $100,000, as compared with 19
a week




ago.

and

lia¬

Club, as

founding of

the

in¬

December, 1889,
family has

been

associated continuously and
actively in the management of the

the firm.
addition

business,

to

in

&

Stieglitz

investment

activities and

grain

their commission

Halle

engaged

America.
tensive

The

Association,of

firm

also

connections

spondents

in

are

banking

members of the

are

Investment Bankers

has

and

London,

ex¬

corre¬

Paris, Zu¬

rich, Geneva, Amsterdam and
other continental financial centers.

..

Braun, Bosworih Co.;

lowest in

Elect Officers

Lard- prices

increased.

partners

member of the Halle

a

cloge, reflecting sub¬
well at the continued

as

Livestock '

TOLEDO, Ohio—Announcement
is

made

by William M. Adams,
in the Chicago market were generally Thigner tne past ' r
President of the municipal bond
week, featured by 1954 highs for prime steers asTthe week closed. •
firm of Braun, Bosworth &
Co.,
Spot cotton prices gained some ground in life week, following 7
Inc., of the election, at its annual
the overwhelming approval of cotton
growers
of next year s
meeting, of Merle J. Bowyer tof
acreage restrictions.. Some support was attracted by tne recent
Detroit as Vice-President.
Simul¬
improvement in textiles and -some week-encf* price-fixing for
taneously Walter M. Braun was
domestic mill and foreign account.
re-elected Chairman of the
Board,
The Bureau of the Census reported domestic consumption
William
M.
Adams, • President^
of cotton in
tlje four-week November*period «at 703,697 bales, * Clifton A.
Hiokins, Senior Videor slightly higher than trade expectations.
President, William H. Hammond,
Daily average use of the staple last • moitih totalled 36,087 ? Vice-President,
F ra n k lin ?L.
bales, contrasted with 35,777 in October, and 357127 in November
Schroeder,
Vice-President
and
last year.
Net loan entries for the week erMed December 10
Secretary and Gorman J.

prices

Fields,

reported

season

at 156,500 bales, bringing aggregate
through that date to 1,521,800 bale|&,

7:7'-

"

■

entries

Treasurer.

for

Mr.
-

...

Trade

Volume Advances

Bowyer

of Prior Week and Year
Christmas

with

the

became

Detroit

Bosworth

Substantially Above Level

associated

office of

Co.,

BraUn,

in

Inc.

1949,

handling Michigan syndicate and

Agjo

wholesale

affairs.

He

started

shopping

In

continued to gather ^omentum in the ' the
investment business in 1928
Wednesday of last week, and" the dollar volume
in Cleveland, and joined the De¬
of retail trpde was
considerably higher than in the same week 7 troit
office
of
PaineWebber,
a year ago.
Jackson &
Curtis .in
1937 as] a
Advance reports indicated that this
year?!?; sales during the
municipal specialist, later becom¬
period from Thanksgiving to Christmas will be slightly above
ing Manager of the Investment

period ended

on

.

-

.

all-time

high

in

reached

1952,

numfifer

The

credit

of

sales

Department

has expanded markedly.

The

total

dollar

a

year

1953

ago.

levels

by

Northwest —1

volume

of retail

trade

iii 'the week

was

es¬

Bradstreet, Inc., to be 1 to 5# above the level

+3; New England 0 to + 4f&outh and Pacific
Coast -fl to +5; East and Southwest
-f-2 to +6.
•
goods

were

such

chairs,

as

While the

better

demand

relatively

on

than

small

demand

for

were

television sets continued
Sales of

new

currently Chairman of the Mu¬
nicipal Securities Committee of
Michigan

tive

pur¬

a

strong, there

Group.

IBA,

the

He also served

ber

of

Bond

«

of

the

of

Board

Club

of

and

execu¬

Michigan
as a mem¬

of

Directors

Detroit.

.

high.

Group,

member of the

committee

the

bought than last Christmas.

few calls for heavy appliances.

a

is

the

items, china, glassware, lamps, tables
for radios, phonographs, records and sheet 7

More toys

is

of the Municipal Advis¬
Council of Michigan and.pres¬
ently a member of the Board. He

formerly

in

.decorative

Speeding

music improved.

were

in

He

Board 'of

the

of

ory

Regional estimates varied from
4pe corresponding
the following percentages: Miawest —2 to +2:7

household

Detroit.

Trustees

to

most

in

Chairman

past

cars

were

Midwest Exch. Members

A

pre-Christmas lull settled? over many wholesale markets in
Wednesday of last '>eek,,^ut buying was at a
significantly higher level than last, year at <this time. Particular •'

CHICAGO,

the period ended on

improvement
ture and

was

noted the past week in the ordering of furni¬
*

Department store sales
the

heavy appliances.

on a

Federal

Reserve

Board's

for~the

week

ended

Dec.

18, '

1954 advanced 3% from the like period last
year," In the preceding i.
week, Dec. 11, 1954, an increase of 4% was registered from that of •

period in 1953, and for the four weeks ended Dec. 18.
1954, an increase of 2% was recorded, For thef period Jan; 1 to
Dec. 18, 1954, a loss of 1% was registered front that of the 1953
period.
7y
>
;

According to the Federal

jReser^ JJpsued's^index department

City for: the
period ended Dec. 18,
1954, registered a decrease of7l% 'bfetb# the like period of last
year.
In-the preceding week;: Dec.
,1LJ95L an advance ol 5%
was reported from that of th
simifer%tek?nff^1953, while for the
four weeks ended

For

the

Dec.

period Jan. 1

from that of the 1953

to

1954,

an

increase ofv2%

Dec.a'18, 1954, the iridex

periods

Executive
Stofck

Midwest

Paulen.

E.

Burke,

Burke

&

MacDonald, Inc., Kansas City, Mo.;
William M. Dunn, W. M. Dunn, &
Co., DeKalb, 111.; John E. Joseph,
Cincinnati,
Ohio; E. Cummings Parker, Blair
John E. Joseph & Co.,
&

•

Co., Inc., Chicago, 111.;
Chicago, 111.

Arthur

C. Sacco,

_

We^y

18,

the

„

Retail trade volume in the finalWeek befdre
Christmas, ac¬
cording to trade observers, registered gains of 15 to 20% abovethe level of a year ago.
An extra shopping day and clear cold •
weather accounted in part for the good showing.
"/
> \
store sales in New York

111.—The

of

Exchange has elected to member¬
ing:

country-wide basis at taken from

index

Committee

ship in the Exchange the follow¬

77/

^

,

^.,

preceding week, reported
considerably heavier than

the

vestment house in

In

the trade awaited

ta^be the

said

are

host;to

was

five

date.

Since

■*,J

a

*7l7v 7^'';';?

7'";
sugar

and

who comurise the 25 Year
of this

of

dealings, reflecting

late

feed

of

firm

among whom were

partner, is the son of Jacques'S.
Halle, one of the original founders

drought condi¬

the similar

Those of
\yeek.ended

tdSe

the

employees

partnership of Halle & Stieglitz.
Stanley J. Halle, currently, senior

Spot coffee prices held steady under fairly good demand,
prompted by the reopening of contract talks along the waterfront.

chases

The automobile

Last

to

announcement of quota allotments for 1955.

and

and

with^Tast

break

past weeks, interest continued to focus

Work Week

cars

$10,000,000

areasjof the Southwest.

quantities

7'7?7

year ago.

.

Output Marked By Declines In Short

The past week's" production total of

real

a

firmer

a

compared

as

of

grant

a

Chicago Board of
ago fell
daily average of 52,500,000 bushels, from 55,400,000
before, and compared with 50,200,000 in the like week

While

vious week.

...

on.

sharp djrbp in the Austra¬

a

the

ing to the Association of American Railroads.
Loadings totaled 641,871 cars, an increase of 23,437 cars or
3.8% above the corresponding 1953 week, but a decrease of
68,519
cars or 9.6% below the
corresponding week in 1952.
Auto

included

when

employees,

23

daily

a

timated by Dun &

S.

the

decline in producer marketings. Oates" showed indepen- "
strength, aided by smalled receipts and rumors that Tin key

of

U.

the dry

developed

wanted

the

wheat

indications of

decreased 11,660 cars or 1.8%

,

in

wheat crop

tions prevailing in

the

Car

Hotel
its

■.

industry for the week ended Saturday, Dec. 25, 1954,
was estimated at 9,400,000,000 kwh.
(preliminary figure), accord¬
ing to the Edison Electric Institute. The above figure represented
the ..new

•

*--•

previous, and with 271.94

buy American bread grains,

lian marketable

The amount of electric energy distributed by the electric light

from

dinner commemorating the event
held at the Waldorf-Astoria

.corresponding date last year.
Following some liquidation and selling in-the early part of.
the week, grain markets generally developed a^firmer tone and
finished with modest net gains for the week.
^-7;

and power

decline

.

recent" weeks,

of

York

was

the

the

.

Stieglitz, 52 Wall St.,
City, members of the
Stock Exchange and
other leading securities and com¬
modity exchanges, observed on
Dec. 29, 1954 the 65th
anniversary
of the
founding of the firm. A
York

New

the

use

&

New

index, compiled by Duri & Bradstreet,,
Inc., advanced slightly last week to stand at zY/.Zt on u^c.

were

-

Halle

wheat,

wholesale commodity price

slow

The American Iron and Steel Institute announced that the op-

were

trend of food prices-at the wholesale

•/)

In

In contrast, 1954 ran

business.

,

gain of 0.4%.

or a

week

Wholesale Commodity Price Index Shows Slight Gain

went

'

of

total

sum

foodstuffs and meats in general

raw

is to show

tion

in 1954.

steel, compared with a drop of 21% in ingot output.
Even though 1954 was not a record year for the steel industry,

...

oats, cottenseed oil, eggs, steers, hogs and lambs. Lower
flour, barley, bellies, lard,abutter, cheese, coffee and cocoa.

_

a

last

ingots and castings will

for

it

ago]

a year

price

Halle & Slieglitz
65th Anniversary

ago, the wholesale

week

a

corn, rye,

1954 is being compared with the record

keenly is that

more

Industry

remained sound and raised prices an ayerage

yet the steel industry
of $3 a ton or 2.5%.

sharp

food price index, compiled by Dun & Bradstreet,
mc., rose slightly
to $6.75 on Dec. 21, from the previous figure of $6.74. It
compared

Thursday, December 30, 1954

...

was

reported.

advanced

•*—.

1%

Two With Bache Co.
(Special

to The

Financial

have

r

Wis.—Benjanim

MILWAUKEE,

J. Bernhardt, Jr. and Roy S. Reed

become

Bache

-

>

Chronicle)

&

Avenue.
with

Co..
Mr.

the

associated

Reed

Bank

&

of

was

Milwaukee

and-prior thereto
•Henke

Co.

was

and

Chicago.

with

East Wisconsin

229

formerly

Company

with Swift,

First

National

F%Mtciul

Number 5390...The Commercial and

Volume 180

Chronicle

The

Indications of Current

week
Latest

IRON

STEEL INSTITUTE:

AND

-

Steel ingots

oil

Crude

and castings

and

(net tons)

condensate

Jan.

(bbls.

average

output

Ago

"72.4

81.4

2,,

§1,846,000

*1,726,000

1,941,000

6,375,300

*6,321,200

6,264,950

oil

§7,226,000

7,105,000

7,016,000

24,478,000

24,539,000

23,525,000

2,685.000

2,485,000

2,414,000

17

11,587,000

10,777,000

11,121,000

10,157,000

17

7,818,000

7,880,000

8,027,000

8,281,000

Unfilled

17
17

150,653,000

147,224,000
36,155,000

118,082,000

124,067,000

135,353,000

Dec. 17

52,265,000

52,803.000

55,872,000

of

31.936,000

freight received from connections

ENGINEERING

CONSTRUCTION

U.

S.

Private

641,871

De.^18

cars)-.

612,7^

Central

653,531
s.-

*

...

697,346

618,434

,605,204

'

611,782

construction

State and

23

Detf*23

—

-Deta

municipal

Federal
COAL

Dej)| 23

OUTPUT

Bituminous

(U.

coal

S. BUREAU

lignite (tons)—
anthracite (tons)

Pennsylvania

-vS.i:

"2

SALES

SYSTEM—1947-49

pe<&18
—'Befri 18

.

RESERVE

INDEED-FEDERAL

AVERAGE

Electric

output

?7,000

$254,172,000

rt^ooo

194,561, W&M

164,510,000

(COMMERCIAL

INDUSTRIAL)

AND

—

DUN

129,918,QBQ^nSWp^.0'CO98,596 000

„|

-1

injp^ftq-rmn

31,322,O0tr^t1

,000

89,662,000

162,329,000

75,967,000

125,313,000

13,695,000

37,016,000

Finished

steel

Pig

iper

iron

W#

8,970,000

688f0OT^P^^®,O00

625,000

Total

8,174,000

Retail

™

213

226

208

Lead

(St.

at

Louis)

(East St.

:
at

:

___

.

at

--H#*
De$^28

PRICES DAILY AVERAGES:

U. S. Government Bonds

Average

corporate

;He797c

4.797c

^S«T6.59

$56.59

$56.59

qnM&QQ

$32.83

$30.00

29.700c

29.700c

29.700c

31.05CC

32J75C

Group

;

liabilities

•

inventories
new

90.750c

DEPT.

-

series

Month

of
of

com-

October

*$43,668

$47,044

*11,617

12,041

*22,405

22,720

$77/475

*$77,790

$81,805

$256,600

$594,200

$232,000

$769,000

$762,000

$582,000

121

84.500c

7*

15.000c

15.000c

13.500c

14.800c

14.800c

14.800c

13.300c

11.50Cc

11.500c

11.500c

10.000c

15.000c

98.83

99.13

98.73

DIVIDENDS—PUBLICLY REPORTED BY

CASH

U.

S.

CORPORATIONS—U.

COMMERCE
omitted)

96.36

110.52

110.70
115.43

110.88

commercial,

S.

DEPT.

Month of November

—

'

107-93

eral

110.52

105.86

As

—"""Def23

108.70

108.70

103.06

103.80

7)11.23

111.25

106.56

DeSs28

111.81

111.31

112.00

107.98

paper

outstanding—fed¬

100.16

—DecT28
De%28

112.37

112.37

111.07
"

reserve Bank of new york—

of^Nov.

ERAL

STORE

—

SALES—SECOND

RESERVE

RESERVE

omitted)

(000's

30

DEPARTMENT

DISTRICT,

BANK

N.

OF

Y.

FEDERAL
1947-1949

—

2.56

2.76

3.14

3.13

3.39

Sa|es

(average

2.91

2.88

3.12

Sales

(average

3.C4

3.03

3.23

Stocks,

unadjusted

3.15

3.14

3.14

3.40

Stacks,

seasonally

2.58

De4^28
De^28

:—;

'

3—

3.14

Debfc28

2.59

*

Production
Unfilled

3.06

3.28

INSURANCE—Month

410.2

413.2

(tons)

D^ 18

208,891

262.344

214,944

258,555

257,143

92

94

94

93

De# 18

349,727

398,913

389,624

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

AVERAGE

=

&

-7

ODDLOT DEALERS
AND SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF

Odd-lot sales by dealers (customers'
Dollar value

„

of

1.287,125

$67,572^7o0 ^7^65,032,021

$62,232,710
1.412,954

781,375

1,492,485

1,491,362
9,770

9,383
1,403,571

-Defr< 11

$G5,742,603

$67,413,481

$62,650,089

$30,113,115

Dec. 11

468,123

512,870

464,100

Sales

As

Dec. 11
Dec. 11
.

NEW

468,123

512,876

464ll00

361,420

380,050

223,610

OF MEMBERS

666.930

the floor—

purchases

Pec-

■

—

Initiated off the floor-

4
4

Dec

14,328,640

10,940,470

for account of members

1,384,260

896,470

376,020

295,180

300,030

1,236,200

1,122,600

759,360

2,084,940

1,551,380

1,422,630

907,310

611,650

465,700

U.

commodities

.

26,100

25,420

31,800

593,950

403,010

274,960

620,050
656,625

80,910

434,430

306,760

533,434

15,700
261,970

405,385

73,420

277,670
338,750

62,710

62,300

401,018

S.

DEPT.

OF

319,195

3,344,605

2,578,564

2,097,275

1,516,260

483,030

394,020

394,540

225,950

3,028,632

2,263,600

1,798.573

1,340,525

3,511,662

2,657,620

2,193,118

1,566,475

•Revised
of

Jan.

1,

—

1.:

other than farm and foods*.

—

r

tNumoer

of

as




credit

S._—

balances-

$2,242,137

$2,130,872

$1,653,714
31,159

35,567

338,521

329,750

298,109

923,796

682,244

148.162.510

117,477,562

109,139.204

bbnds_^

972,323

160,985,783

shares—

on

U. S.

Govt. issues-

165,563

109,395,338
156,655

96,506,418
156,181

on

other collateral—

1,532,373

1,474,690

1,200,890

$285.9

*$286.6

$287.8

195.8

*195.4

199.1

82.7

*82.4

87.9

52.7

52.9

52.5

26.1

*25.9

25.0

34.3

34.2

33.7

4.6

*4.6

OF

COMMERCE)—Month

billions):

(in

;

„

industries

—

Government

employee

Less

contributions

surance

labor

Other

Proprietors
Personal

Total
Total

PRICES

social

in¬
-

rental

6.8

6.6

6.6

47.2

•48.8

48.0

24.5

24.4

23.5

interest income

transfer

—

dividends-

16.4

S.

FARMERS

DEPT.

=

OF

100—As

Dec. 21

109.4

109.4

109.5

110.1

Dec. 21

90.6

90.2

91.9

95.4

Dec. 21
Dec. 21
Dec; 21

103.0

103.4

103.2

104.4

83.8

84.9

84.1

87.0

114.7

114.7

114.5
,

124 330,410

114.4

14.6

•271.1

272.7

INDEX

—

AGRICUL¬

of

Nov.

15:

Unadjusted—
farm

products

244

—

grain

Tobacco

hay—.

and
;

:
—

234

229

199

204

195

441

433

281

293

269

206

Truck

crops

Oil-bearing crops
and

products

Poultry

eggs

;

2

;
•

_•

,

^

l

218

277

275

242

266

_*•

-

products

animals

205

191

243

-

218

237'

Fruit

Dairy

249

243

235

438

—

;

—j

Cotton

JTeat

242

244

239

grain

Livestock

tons

•16.0

271.8

income

BY

U.

1910-14

—

and

payments

RECEIVED

NUMBER

4.0

J

income

income

and

non-agricultural

TURE

for

—

Crops

5Includes "665,000 barrels of foreign crude runs. §Based on new annual capacity of
against the Jan. 1. 1953 basis of 117,547,470 tons. fPreliminary figure.
orders not reported since introduction of Monthly Investment Plan.

figure.

U.

personal income—
Wage and salary, receipts, total
Commodity producing Industries—
Distributing industries

Feed
.

—

foods

1954.

listed

All

/
as

of

borrowings
borrowings

Food

Meats
All commodities

value

381,495

100):

products

Processed

'

281,040

463.728

uec>
SERIES

free

listed

Service

307,630

Commodity Group—
Farm

$30,807,000

39,785

in

—

558,390

sales

balances——

banks

Total

147,950

1.7C8.920

631,810

_

=

in

of

(DEPARTMET

1,579,430

725,762

jDec.

Total sales

All

$30,074,000

Nov.

customers—

customers'

of October

2,076,330

806,672

~—rw

PRICES/ NEW

debit

net

to

and

value

Member

of

PERSONAL INCOME IN THE UNITED STATES

Dec.

LABOR— (1947-49

of

8,886,130

Dec.

Total purchases
Short sales

WHOLESALE

hand

on

Market

8,551,500

_______________

Total round-lot transactions

Other

4

Dec.

sales

sales

25,010

carrying margin accounts-

extended

Member

334,630

10,399.490

17,495,750

J?e<K 4
-Dec.
Dec.

sales

purchases

Other

540,980

13,825,700

'

Short sales

Total

502,940

16.828,770

Dec.,-4

——

Short sales

Total

♦23,626

$30,492,000

-

EXCHANGE—As

customers'

Credit

VOR

Other transactions initiated on

Total sales

$47,044

dollars):

omitted)

(000's

Market

—...

Other transactions

20,057

•$43,668

SERIES—

of

omitted):

firms

Total

Total

Dec.
Dec/
~opc.

Total sales

.30

STOCK

(000's

Member

(SHARES):

——'

TRANSACTIONS

Nov.

of

Cash

ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists la stocks 4n which registered—
Total purchases
—Dec. 4
Short sales
—4
Other sales
Dec. ...4

Other

$26,987

*19,548

23,377

NEW

(millions

IN CIRCULATION—TREASURY DEPT.

YORK

30

2681370

387,730

•

—Dec. 11

—

—

Total sales

Total

•$24,120

$43,773

COMMERCE)
October

268,370

sales

sales

ROUND-LOT

58,305,000
$357,360,000

19,401

OF
of

——

MONEY

dealers—

shares

sales

74,131,000
$394,119,000

776.893

Total Round-lot sales—

Other

60,153,000

63,778,000

Total

PArvn-If)T STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS

Short

67,885,000

40,792,000

$371,915,000

Nondurables

4,932

1,481,592

—

ACCOUNT

33,732,000

$24,372

$32,173,637

IOTA!

FOR

—

720.666

10,131

Round-lot purchases by dealers—
Number

1,334.197

1,412

1,482,354

Short sales
saxes

values

(DEPT.

Deft: 11

Nnmlvr of shares—Total

Oiuer

8,678,000

35,608,000

MANUFACTURERS INVENTORIES AND SALES

Dec. 11

—

RoUnd-lot sales by

$155,700,000

8,662,000

106.92

106.43

sales

value

Dollar

—

Total

sales—

other

*■.

payments

Month

£
Dec 11

Number of shares—Total sales—
Customers- short

$168,679,000
39.154,000

8,809,000

TO

Inventories—

D€$. 1 i

purchases by dealers (customers' sales)—

Customers'

115

«

—-

—

116

LIFE

Policy dividends

371,487

3$
Dec; 11

Number of shares

Odd-lot

OF

payments

Surrender

Tfwrsjjfe

"#

purchases) 1—

PAYMENTS

endowments—

Annuity

/

WJT^^6-79

113

129

October:

'

Dec, 24

100

of

benefits

Disability

241,648

of period

end

INSURANCE—BENEFIT

Death

212,033

252,701

——Der& 18

.

at

LIFE

415.8

.

Dec. 18

—

activity.

of

3.07

Matured

(tons)

orders

POLICYHOLDERS—INSTITUTE

3.07

132

3.74

ASSOCIATION:

(tons)

Percentage

3.36

130

66,690,000

3.52

3.10

102

129

35,818,000

3.45
3.22

3.10

INDEX

PAPERBOARD

Orders received

3.45

3.24

3.11

413.4

.

3.24

De%28

Group.i
Group

105

44,863,000

———

110

105

$151,957,000

adjusted-—

112

132

—__

3.45

Utilities

130

daily), unadjusted
daily), seasonally adjusted

Decv28
Dec. 28

;

+.

—

FED¬

Averagc=10()—Month of November:
Sales
(avefage monthly), unadjusted

V

.

OF

(000's

————

106.04

114.85

114.66

YIELD DAILY AVERAGES:

COMMODITY

$36,795,000

4,836,000

11,083,000
4,621,000

21,996

112.56

A* -IIIIIIIIIIIIII—IIIIIII—IIIIIIIIIIIIIIIIII—II"—

NATIONAL

2,687,000

$29,000,000

"

-

dollars):

of

3.C4

MOODY'S

1,952,000

$35,067,000

service

4,733,000

11,706

105.00

i

corporate

Industrials

$13,568,000

2,923,000
11,845,000

liabilities

2.92

Public

$7,547,000

5,578.000

$43,773

110.52

—

Group
Group

Group

315

10,466,000
6,859,000
4,065,000

__—

——

—185.00

U. S. Government Bonds

Railroad

66

871

..

Retail

105.00

Utilities

Average

1.68

933

-

liabilities

29.200"

89.250c

110.52

D&5RR28

__

"

MOODY'S BOND

57

•

,

liabilities

merce

110.34

Aa

£aa~
Public

109

$8,099,000

—

liabilities

business

29.675c

86.500c

Deer28

-

Industrials

IJtA

88

389

4.634c

31.750c

Decj28

:

Aaa

Railroad

number

——

liabilities

*

MOODY'S BOND

175

91

414

110

Manufacturing

Dec 22
Debit 22
D60*22
Deer 22
De**22
—Dec?22

at

Louis)

189

86

Wholesale

York)

(New York)

Lead

Zinc

(New

179

—

service

Commercial

162

QUOTATIONS):

,

tin

BRADSTREET,

November:

number

Con traction

$32.83

Electrolytic copper—
Domestic refinery at
Export refinery at—
Straits

327,934,005

490

Manufacturing

$56,59

—

M. 1.

&

of

number

(millions
(E,

$376,971,323
49,037,818

number

number

Commercial

234

Total

(per gross ton)

METAL PRICES

30,760,116

432,967,910

number

Construction

532,000

9,087,000

+9,400,

4.797c ijar'

ton)

$463,728,026

382,683,383

,

City

FAILURES—DUN &

INC.—Month

8,503,000

134

##23

(per lb.)__
gross

$427,879,197

15,162,625
67,862,773

77,874,895

45,195.814
York

Manufacturing

COMPOSITE PRICES:

Scrap steel

States

53,394,798
22,832,476

23,882,183

77,387,157

City
New

Wholesale

9,000,000^^^8,780,000
V

United

York

BUSINESS

r'..

&#>£

BRADSTREET, INC
IRON AGE

46,230.111
20,187,682

.«

—

Wholesale
-

FAILURES

76,674,220

;

64,191,000

;

kwh.)_

000

J

:
_

$226,520,000

$324,479;00C

INSTITUTE:

(in

$16,918,929
78,063,194
46,213,936
76,524,092

—1

Outside

De^; 18
.

EDISON ELECTRIC

52,924,571
94,524,725
84,261,773
27,805,803

—

1

100

==

64,117,040

_

—

Total

&

DEPARTMENT STORE

$28,337,036

76,891

CITIES—Month

_■

Central

Retail

;

__

—

Central

Pacific

OF MINES):

and

$21,641,289

-

&

536,94o
New

Dec. 23

construction..

Public construction

29,437

33,925,018
76,954,373

DUN

—

2

Atlantic

South

NEWS-RECORD:
Total

51,559

74,879,340

INC.—215

Atlantic

East

ENGINEERING

—

68,685
165,623

44,042

—

Mountain

.

CIVIL

67,047
90,415
152,137

period (tons)—

VALUATION

England

South

~

D&&13
of

80,119

.

(number -of cars)
(no.

of

November:

West

freight loaded

PERMIT

Middle

49,975,000

^

RAILROADS:

Revenue

Ago

97,598
134,658

———

end

at

BRADSTREET,

151,490,000

34,210,000

151,778

orders

BUILDING

New

Dec. 17

Revenue

Month

23,555,000

2,500,000

at_

(bbls.)

Year

of

zinc smelter output all grades (tons of
2,000 pounds)
Shipments (tons of 2,009 pounds)
Stocks at end of period (tons)-—

31,945,000
123,214,000

AMERICAN

INSTITUTE INC.—Month

6,913,000

at

(bbls.)

oil

of that date:

Previous

Slab

6,248,100

(bbls.)
Dec.
Residual fuel oil output (bbls.)
Dec.
Stocks at refineries, bulk terminals* in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Dee.
Kerosene (bbls.) at
Dec.
Residual

ZINC

—

Djsc. 17

Distillate fuel

AMERICAN

1,706,000

E&C-.17

(bbls.).

ASSOCIATION OF

are as

Month

75.7

Dec. 17

<bbls.)__

average

of quotations,

cases

J]

either for the

are

Latest

Qejc. 17

Kerosene output (bbls.)
Distillate fuel oil output

fuel

Ago

thai date* of, la

on

of

42

Gasoline

Week

Dates shown in first column

Year

"

output—daily

gallons each)_r
Crude runs to stills—daily

month ended

production and other figures for the

cover

November:

PETROLEUM INSTITUTE:

AMERICAN

month available.

Month

§77.4

Jan. *2

or

or

Previous

Week

*

-

steel operations (percent of capacity*
Equivalent to—

Indicated

followi^statistical tabulations

latest week

Business Activity
AMERICAN

31

(2779)

267

266

263

159

153

263

263,

,267
224

'

S3

(2780)

The Commercial and Financial Chronicle

Secretariat
The

for

Economic Affairs.

Con. miss ion

article

12

craned
nomic

of

created

was

Decree

No.

What

19111, is

To be approved,

Boston &
The

mystery as to
the activity and

for

the

announced

interests

to

buyers

Maine
ment

had

and

The

present

Mc-

had

management
to

make

this

on

achieved
Boston
no

&

com¬

recent

de¬

velopment but; statements from
the
McGihnis
interests; seemed

reduce

•

indicate

to

other

the

fight at

proxy

annual

possibility of

meeting.

pointed
earlier

It

that

out

tion of Boston
&

aware

year

year's

&

i

t

c

u r e

management changes in the Bos¬
ton & Maine
during the coming
year, it is indicated that no merger
cf the property with New Haven
is in prospect for the time

being

at

least.

If-

nothing else,

present-

Massachusetts law would bar such
step and the Governor and legis-

a
'

lative

leaders

repeatedly
as

■

of

that

state

expressed

have

themselves

opposed to

any effort to change
legislation that has been on

this

the books since

1907. In addition,
most analysts feel that Boston &
Maine's
financial
commitinents

(specifically the maturity of over
million
of
First
Mortgage

$50

bonds-in 1960) and the present ex¬
low
level
of
earning

tremely

power, would make it very diffi¬
cult,vif not impossible, to work out
any
feasible plan of exchange.

Eventually these difficulties
be

but

overcome

for some

may

presumably not

time to

'*■

come.

Traditionally Boston & Maine
been a- high cost
operation,

has

Continued

from

:

defense

operation, the
been relatively

(b)

has

favorable

that

than

generally.

In

this

part

attributable

to

and

special steels, alumi¬

Mining of asbestos, sulfur,

tin, iron, manganese,
metals,
beryl, mica,
Production

(c)

off-less

than

10%

from

(d)

of

a

Thus,

even

products

vents, refractory materials, X-ray

photographic film, optical
glass, and pharmaceutical prod¬
ucts,

especially
drugs.

sulfa

antibiotics

and

that

there

was

no

question

constitution and laws of
the country made certain
reserva¬
tions as to legal
rights, but that
this did not mean that the
Gov¬
ernment

could

contracts
either

with

on

not

enter

private

enterprise

partnership

subcontract

basis

for

into

or

the

on

a

opera¬

tion of any business
activity.
In connection with a

question

on

expropriation, the observation
made that
expropriation can
only take place in Argentina by
was

of

means

snecial

a

when the

law, and only

welfare of the State

requires, and when prior
sation

is

standpoint
pointed

compen¬

arranged.
From
of the record, it

out

that

of

cases

priation had been

rare

tina, and that in the

so

the
was

expro¬

in Argen¬

case

of

year-end

tax

may

resu't

considerable

in

to

be

little

ings reported for the full
the

company's income

year

on

4VzS, 1970.

is

considerable question
mind of many analysts as

the

whether
this

interest

issue

next

will

year

be

if

paid

there

in
to
on

tainers
•

genation

equipment,
con¬

put

into

indujstyies

and

the

in¬

impregna¬

In

What

Form May

Investment

Be Made?

foreign

investment

be

may

made by residents or non-residents
of

Argentina with funds in foreign
currency entering through bank¬
ing transfers and/or machinery,

specific and in¬
tegral development of the activity

by

Executive

dated

law

is

known

Inversiones

jero,"

is

14222.

was

de

as

effect

by

the

Order

Aug. 26, 1953.

President
No.

15922,

Other

laws

identified
passed

as

ExtranLaw

No.

by the Argen¬

tine Congress in
Aug. 21, 1953, and




already

country

incorpo¬

tion.'.

The

investor

into

or

legally constituted

new

a

corpora¬

be

may

re-^

quired to give guaranties of com¬
pliance, which may inclue the de¬
posit of shares, of stock.

tablished

the

Profit

Remittances

and

law.
No.

spelled

tered,

There

■

are

profits which

limits

no

ndt be permitted

of

in

in

(Jan.

8,

1954)

derail

more

by

Decree

these

regulations
abeyance and the
the issuance of

No.

the

time

new

10881

held

were

in

limit

for

regulations

on

the subject was extended to Nov.

1, 1954.

In substance, the cancel¬

led regulations called for recogni¬
tion
of " certain
percentages
of

profits

made

old

by

foreign in¬
Aug. 28, 1950
Aug. 26, 1953, not exceeding
of the capital investment, as

vestments
and

between

foreign investment capital, if
profits

would

in

and

purposes

be

used

for

enterprises

templated in the
"

con¬

investment

new

law.

Neither

Law

14222

Decree

nor

the

19111 gave

but

be earned

may

remittance abroad

Later Central Bank

1890

out

However,

regis¬

on

es¬

country prior to

treatment to be given this subject.

new

after

the

new

such

of the investment two
years
the
investment has been

in

Circular

5%
What

tion of the original capital

profits will

cipal)

authority for repatria¬

the

of

(prin¬
investment.

old

of 8%

excess

Conclusion
(net of taxes imposed on
remittances) of the reg¬
Apparently the Argentine Gov¬
istered capital of the investment. ernment believes that it is
better
Any excess of profits over the 8% to regulate the inflow and profit
margin can be used freely in Ar¬ remittances of foreign investments
gentina. If the investor does not in manageable amounts for which
per year

profits

or

wish to remit the 8%

solutions

gin in

availabilities

profit mar¬
particular year, he may

any

the

given

are

the

and

be found

can

of

in current

exchange rather

14,

1953

regu¬

The
vestor
can:

profits
after
from the end of the ac¬

year

period

in

including

will

applied,

paid

expenses

the

be

heading

of

abroad

technical

same are

essential to establish

the enterprise into opera¬
and the freights paid in

lating Law 14222; (2) Decree No. tion
14630, dated June 5, 1944, on the foreign currency. A resident of
of Industrial Promotion; Argentina,
however, must prove

(3) Decree No. 25113r dated Dec.
24, 1953, outlining the procedures
for seeking registration of
patents

Central

Bank

Circular

ing brought into the country
Argentine origin.

tion. The certificate of
Inscription
of the National
Registry for For¬

Approval?

to

profits

sion,

tered

the

26, 1953.
■

invesments

The

country

which

prior

to

en¬

Aug.

the

scheme

and provisions of
investment laws can
illustrated by the

foreign

.

Foreign investments

may

enter

the country freely, but if
they ate
to receive the guaranties and ben¬
efits of Law J4222 all investments
must

for

all

the

be

approved

and

reg¬

istered with the "Comrikn Int°r-

minirterial de Inversiones Extran-

jeras," which functions

definite plan

specifications

necessary

enterprise.
of

submitted
vestor

a

establishment

erating
outline

present

is

data

"

of

A

which

an

op¬

out of the

laws, especially the provicalling for 8% of investment
profit remittance limitation,

sion

contained

in

a

vember, * 1953 and entitled "Informaciones que Deberan Con-

in

used

the

for

system

basic

Argentina.

On

of

indus¬
short-

a

term

profits

certificate

a

of
proof of
National Public Ac¬

a

countant is sufficient to make the
transfer through a dealer author¬

ized

to

The

deal

capital
out

foreign exchange.

investment may

of

from

in

principal of the registered
the

the

a

be

of

made

investment

this

ever,

will

when

is

is

years

registration
to

in

20%

the

the

the

authorized.

How¬

of

only with
funds, and only

own

that

the

con¬

disturbed.

Exchange Rate Applicable?

The rate of

not

exchange to be used

for
or

at

foreign invest¬
by Law 14222 is

covered

fixed

for

the

life

of

the

official

free

to

the

be

in¬

made

market

prevailing at the time

each

rate

trans¬

action is made.

has

ness

where

vestment is authorized the Execu¬
tive Power may

grant

increases,

wage

to

meet

almost

every¬

nowadays,

F. P.

Lang & Co. (o

Act

in fujl

or

exempt;on of payment of

Dealers Also

as

P.

F.

Lang & Co., 40 Wall
Street, New York City, municipal
bond brokerage firm, announced
Fred

will

ner,

that

and

will

be

tered
ners,

P. Lang, senior part¬
retire on Dec. 31, 1954

the business

continued

in

form

of the firm

slightly al¬
Lang's part¬

by Mr.
Harold E. Johnson and John

F. Hornbostel.

The

firm

name

without

will

be

change,

dealers

in

all

tax

specializing in

in

as

1930

bonds.

F. P. Lang

prior to

with Barr &

which

Schmeltzer,

decessor of Barr Bros. &

nicipal

bond

dealers.

the

trader

securities,

revenue

Johnson joined

Co.

was

free

con¬

and

firm henceforth will act

&

Other Benefits?

Article 12 of Law, 1422
provides
that at the time each
foreign in¬

part

labor

of

security payments and the
regulatory problems which busi¬

Mr.

in

past

social

transactions whether
are

the

able enough to permit the weath¬

ering

incoming capital, remittances tinued

withdrawals

in

has ranged from 16 to
23%, and higher, a rate comfort¬

that
What

which

few years

permitted
shown

earning record of Argen¬

business

princi¬

tinuity of the enterprise will not
be

tine

ar¬

time

upon

at

withdrawal

be

it

taken

country after 10
date

depending

year,

be

publica¬

protection
tries

and

with

profits by

complete
should

by the prospective in¬

tion of the Commission dated No¬

How Are Foreign Investments
-To Be Controlled?

first

with

are to

Commis¬

he

invest¬

eign Capital Investments together

vestment. All

Interministeral

-

following

-

the

these

basis, at least, a new enter¬
prise is likely to benefit from such
protection.
Then
there
is
the

ments

Investors, in making application

under

possibilities

Profits may be transferred
abroad
without prior authoriza¬

in connection with

No,

in¬

new

whether

point to the market

ing periods.

are

How to Apply for Investment

1890, dated Jan. 8, 1954, regulating
the capitalization
of
unremitted
on

other assets be¬

not of

and allied technical assistance as
investments of foreign
capital; and

(4)

or

be

they net
realized, and he cannot ac¬ and other business
regula ory laws
cumulate, transfer or allocate in Argentina.
On the favorable
profits between different account¬ side one can

subject

that the funds

the

for

to

seems

operate

which

rangement

investment

question

ment

one

remittable

the

—

controlled profit remittances.

ferring

the investors

Oct.

to

However, the

quotas ranging from 10%

under

as

original

investor is prohibited from trans¬

the

of

the

as

capital investment.

and put

19111

status

same

rights

No.

Laws

"Ley Para Las

the

pal

_

Capital

in

advise—whenever it is shown that

the

investment

rated

regulations dealing with for¬
eign investments are (1) Decree

:

foreign

business

to be undertaken by the investor,
or
that of the concern to which

and

.

basic

a

profits of foreign investments

were

equipment tools, patents (as con¬
trolled by Decree No.
25113 of
Dec. 24,
1955), and in general,
physical and intangible property

owners.

The

into

enterprises

counting

coping and oil hydfo-

dustrial treatment and

are

YEAR!

energy,

tion of woods.

A

NEW

electrical

and

using natural fibers.-

(f) Fish

operations.

*HAPPY

ma¬

production

synthetic fibers, and textile

earnings available out of 1954

no

the

telecommunications

likeli¬

hood that there will be any earn¬

for

instruments,

transmission of

on

year as a
there appears

scientific

chinery

im¬

this showing for the
whole. Even at that,

provement

There

and

adjustments

made with the

Investment

try.

adversely
development of
already in tne coun¬
The foreign capital must go

affect the normal

provision for the reinvestment of

time

is possible

earned. It

were

that

questions in outline form:

Foreign

at least not

or

19111

period

ciliatory and satisfactory purchase

The

quotations in export
investment
shall

The

facilitate

No.

being a likelihood of sufficient
foreign exchange coverage for un¬

be

were

markets.

Decree

by making timely application to
Government.
Such transfers

public utilities acquired
by the
Government in recent years con¬
arrangements

current

of

than to permit entrance to any
and all investments without there

necessary for the

the

or in perfect condi¬
their value shall not ex¬

new

tion and

*

Investments?

transfer such profits to the
orig¬
inal registered
capital investment

Attract Foreign Capital?
clear

already in existence shall,

be

must

ceed

23

Old

eral income taxes were cut nearly
$1.5 million, income available for
(e)
Manufacture
of
tractors,
fixed charges declined 90% from diesel motors, automotive
vehicles,
the like
1953
interim and only machine tools,
refrigeration equip¬
about 20% of such charges for the ment,
mining equipment, medical

S

that

or

and

acids

and

though Fed¬

plants

Profits earned annually may be
remitted to the country or origin

including sili¬
con
carbide, sodium cyanide, cal¬
cium cyanamide, graphite and
electrodes, algae and devivatives,
insecticides, and herbicides, sol¬

However, the al¬
ready high transportation ratio
soared
almost
four
points
(in
October alone it was up more than
six points) .and the overall op¬
erating ratio increased 5.2 points

new

About

Article

save

Capital Withdrawals?

Manufacture of electro¬

chemical

earlier.

to 85.3%.

of

or

What

installa¬ "61 Oct. 14, 1953 implementing the
additions new investment law, made some

and

—

year

The

pre¬

alkalis, sodium carbonate, caustic
soda, carbon black, urea, phenol,
acetic anhydride, various plastics,
and organic and inorganic
dyes.

par¬

severe

For
the
10
months
through
October, 1954 the traffic showing
was not too bad,
with gross reve¬
nues

earn

wolfram.

the

of

either

sub¬

enter¬

if necessary, include raw materials
and replacements. Pnysical assets

attempting
economic conditions

and copper.

cious

and

tions

is

Eligible?

copper,

the

of

3

page

Government

improve

num,

...

.

Are

common

this

highway competi¬
tion and in part to migration of
industry out of New England.

by

f&tting.i hold of the Boston &
Maine firsts ,/ V
I? While there may well be some

business

instituted

been

trend

ticularly

*

p

Investments

The
to

far has apparently not

so

has ...been

Nickel

been
d ee me d
advisable to protect New Haven's
interests in the overall New
Eng-

"^nd transportation

profit

a

passenger

has

industry

Plate, and that under the circum¬
stances -it- had

whole and

a

nature

less

Maine with Del¬

and

v

but

traffic

possible affilia¬

Western

I

been effective. On top of the high
cost

had ' been

Hudson, Delaware, Lack¬

awanna

Class

plans,

efficient

an

(Executive Order No. 14630

June 5, 1944 (relating to
sidies and tariff protection.

contribute to governmental

to those

Which

as

the

deficit

an¬

further

was

there

of

rumors

next

and

consistently among
and
industrialization
through a
the
narrowest
in
the
industry.
five year economic plan. In gen¬
Large
passenger
deficits
have
investments which fall
been an important factor in this eral, all
witnin this plan are eligible.
performance, and because of the
compact
nature
of the service
The^lv|ntermimsterial Commis¬
area
the average haul on freight sion has indicated that it would
is relatively short. With terminal consider investment applications
for
the
expenses to be absorbed, this short
following operations,
haul
traffic- is \expensive
v-to among others: ■
handle.
A
program
designed to
(a) Production of pig iron and

Ginnis management of New
York,
Haven & Hartford had been
control;

as

margin just

New

heavy

the

above

con¬
.

that

press
with the

affiliated

well

railroads

commercial

the investment

create

foreign- exchange.

fi¬

aifairs.

transportation ratio

sistently

strength

the

Maine

with the

reasons

in
Boston & Maine stocks, irv. past
weeks
was
at
least
partially
cleared up over last week-end. It
was

nancial,

economic,

13892
of

prise,

tives from all the other ministries

with

Investment

must

ALairs, and has representa¬
allied

Must
Meet?

by the Secretary of Eco¬

closely

Tests

by

Thursday, December 30, 1954

Co.,

Mr.

he

pre¬
mu¬

Horn¬

bostel became associated with the
firm

in

property forming part of the in¬

with

A.

consideration by the Commission
and issuance of a decree of
ap¬

vestment, and, if the new enter¬
prise is considered by the Govern¬

writers.

proval,- the investment is en+ered

ment

and

registered in the National
Registry for Foreign Capital In¬

tional interest

vestments

the

tener las
de

Propuestas de Inversion
Capifales Extranjercs." After

which

is

kent

by

Central Bank of Argentina.

the

customs duties for all the

in

to

favor

be

of

of

measures

physical

"advantage to na¬
welfare," apoly

Mr.
space

or

the
of

new

enterprise

promotion

and

protection envisaged by Law No.

1932,
B.

after

Leach

Lang
with

will
F.

P.

which

he

devote

himself to

ness

&

years

Co., under¬

retain

Lang

organized

affairs.

some

in

office

&

Co.,

1930,

personal

to

busi¬

,

Volume 180

Number 5390...The Commercial and Financial Chronicle

/33

(2781)
t

Securities
Aluminium
Dec.

16

Ltd.

filed

(1/10)

share

new

to

Dec. 9 filed

Israel.
York

Amalgamated Uranium Corp., Salt Lake City, Utah

•

of

6%

Proceeds—For working capital.
tributor of prefabricated concrete
wall panels and butresses made of steel
reinforced dense concrete, etc. Un¬

of

•

& Pump

Appell Oil & Gas Corp., Alice, Texas
1
(letter of notification) 8,000 shares of common
stock" (par 10 cents). Price—$1.50 per share. Proceeds—
To selling stockholder. Office—Appell
Bldg., Alice, Tex.
Underwriter—R. V. Klein & Co., New \ork.

Dec.

Arctic

Oct.

—For

ISSUE

Development Co., Phoenix, Ariz.
(letter of notification) 300,000 shares of common
stock, series A, to be offered for subscription by holdr
ers of life insurance policies of Arizona Life
Insurance
Co.

Price—At par

ing capital, etc.
Ariz.

(White,

Weld

&

Co.)

Debentures

(White,

Weld

&

Co.)

(Straus,

,

Northern Chemical
Industries, Inc.___

Blosser

100,000 shares

Circle Air

(Monday)

Imperial

Industries, Inc.—

Common

corporate

Equip. Trust Ctfs.

Corp.

.

^

January 6

./(Offering to

,

(Thursday)

common

Pennsylvania

New

-

England Power
(Bids

EST)

noon

January 7

-

(Alex.

Brown

&

Food

Trust

Ctfs.

Mart, Inc.

(The

Common

First

Toledo

shares

Corp.;

E.

A.

Ames

<fc

Boston

First

■

-.Duke

Power

Noel

&

Co.)

Common

(Bids

;

EST I

noon

Corp.__

(Bids

3:45

Bonds
United Stales

$50,000,000^

170,000

shares

*

Co

Stanley

&

&

Co.;

Forgan

&

Drexel

Co.)

Preferred

Co.;

Major

and

Common
Inc.)

$150,000

(A.

K.

Co.,

Inc.)

H.

Walker

&

(Bids

Corp.

(Paine,

—Bonds

f

Kansas

a.m.

Fire

&

to

Equip. Trust Ctfs.
be

invited)

A.

Kidder

&

125,000

be

11

Inc.)

Texas

Electric

(Tellier &




Co.)

S300.000

"

Y

same

Common
by

:>

stock

(par
^me cent). Price—10 cents
Proceeds—Fpr mmlng" expenses. Office—917

Oct.

Glore

mon

fice

per

by

Blyth

Kansas Gas

&

be

to

11:30

to

com¬

share.

Underwriter

—

Corp., Denver, Colo.
(letter of notification) 3,000,000 shares of conYstock (par one cent).
Price—10 cents per share.

15

EST)

—

705

exploration and development costs.

First

National

Bank

Blue

Canyon

Uranium,

Inc.

..

Of¬

Colo.

.

Nov. 2!L»(letter of notification)
mon

stock

(par

one

cent).

6,000,000 shares of com¬
Price—Five cents per share.
Continued

—Debentures

on

page

$7,000,000

&

.-.Debentures

Curtis)

$5,000,000

(Tuesday)

invited)

(

—Bonds

—

$16,000,000

(Wednesday)

Co

Bonds

a.m.

EST)

15

(Tuesday^

$17,000,000

be

to

be

invited)

April 15

•

X-—v—-Bonds

invited)

$10,000,009^

Electric Co.-,

(Bids

&

Common

*

First Na¬

Bldg., Denver,
Underwriter—I. J. Schenin Co.y New York.

(Monday)

1

Preferred

Westpan Hydrocarbon Co
(May

be

Union

Securities

New York.

$6,000,000

Pittsburgh

San Francisco

„

Common
Corp.).. 384,861

Boston

Philadelphia

(Friday)
shares

r

v

city.

tional Bank Bldg., Oklahoma
City, Okla.
Honnold & Co., Inc., same city.

(Tuesday)

15

Service

(Bids

$6,600,000

Green Mountain Uranium Corp
--

-

97,481 shares

of America—

February

.

--

mon

Debentures

Kansas Gas & Electric Co

Common

stockholders—underwritten
Co.,

Co., Providence, R. I.

Deb.

First

(Thursday)

Webber, Jackson

(Bids

(Friday)

Los Angeles
to

debentures

shares

Citizens National Trust & Savings Bank
(Offering

$600,000 5%% 15-year sinking fund subor¬

Big Red Uranium Co., Oklahoma City, Okla.
6 (letter of notification)
2,940,000 shares of

Common
The

injiied) $25,000,000

a.m.

March

January 14

/

Inc., Providence,

Ave.. Provo, Utah.

$30,000,000

Dihon & Co.) $25,000,000

February 23
Common

Co.)

.

*

$3,900,000

Casualty Co.^
M.

->

Underwriter—Weber Investment Co., 242 N.
University

Bonds

EST)

City Power & Light Co._

(Offering to stockholders—underwritten by

.

(Tuesday)

Co.—

to

(Bids
iBids

$J,000,000

Dallas Power & Light Co.

$3,000,000

$600,000

-

Big Indian Uranium Corp., Provo, Utah v
July 15 (letter of notification) 500,000 shares of commc^' '
stock (par 10 cents). Price—25 cents
per .share. Proceed*
—For mining operations.
Address—Box'77, Provo, Ufrii.

Chesapeake & Potomac Telephone Co. of Balti- *
more City
.Debentures

Debentures

Co.)

Missouri Pacific RR

of

Co.)

February 1

Sheraton

13 (Thursday)
Pump Corp

Benkert &

Associates, Inc._fX7i
(G.

State

&

stockholders—underwritten

to

(Bids

January
American Steel &

.

Systems, Inc., Baltimore

Bikini Uranium

Glore

Corp.

Glore, Forgan & Co.,

Co*

$25,000,000

(Gearhart & Otis,

Remote

Proceeds—For

Co._
&

.

Phillips Building,

$1,200,000

.Stock

February 14

Universal

Beacon

Co.)

&

Automat Canteen Co. of America—

Common

Gas

—

Big Bend Uranium Co., Salt Lake City, Utah '
Aug. 6 (letter of notification) 7,000,000 shares of comroc^
stock. Price—At par (three cents
per share). Proceed#'
—For mining expenses. Office—510 Newhouse
Building
Salt.Lake City, Utah.
Underwriter — Call-Smoot

——^Preferred

—

uraif

Forgan & Co.)

__)u.

the

?

$8,000,000

Common
EST)

Underwriter

.

G. H. Walker &

T,t.x,

—j.—.Preferred
EST)

January 27

Public Service Electric
(Morgan

;

'

..

'

;

p.m.

Corp.

subordinated

(Thursday).

a.m.

11

(^astrnan,

iDebentures

$36,000,000

(Offering to stockholders—no underwriting) 218.737 shares
.

Co.).

&
.7

Plywood Corp

January 12 (Wednesday)
Power

Norton

stockholders—underwritten by
Boston Corp.) 37,500 shares

to

(Offering

Duke

Collin,

Rockland-Atlas National Bank
(Offering

„—L-

10:30 a.m. EST)

(Bids

Gas

11

Power
(Bids

(Tuesday)

York, Chicago & St. Louis RR

United

and

January 25
Consumers

$642,428

Commonwealth Edison Co
New

Corp.

400,000 shares

(Estabrook

f

about

or

before

Price — 100% and
Proceeds—To redeem 6% convertible
due' Sept. 1, 1967 presen.Uy
outstanding and for expansion program. Underwriter—

"

$10,000,000,

Northeastern Steel Corp.—

$1,400,000

_

January 11

on

shortly

accrued interest.

;

—.Preferred

Collin, Nortoh & Co.)

and

January 20

.....

EST) $40,000,000

(Quincy Cass Associates)

determined

dinated debentures due Jan. 1, 1970.

$1,500,000

Bonds
noon

Rowe

Dec. 23 filed

Co._~i_—^.r--_.--^Comin#ii;

(Townsend,

Seven-Up Bottling Co. of Los Angeles___Common

(Bids

Co.)

Hycon Mfg. Co._—__

$1,100,000

Co
(Bids

.»

&

Duquesne Light Co.-^-i

921,923 shares

Consolidated Diesel Electric Corp
Alstyne,

Corp.

•

.

Corp.)

(1/27)

stock

rights to subscribe

be

Beacon Associates,
R. I. (1/13)

180,000 shares

—Common

Fuller

Boston

,

.

(Van

Co.)

\
-'

Preferred & Common

Securities

D.

Edison

(The

Common
Ltd.; Morgan
i

Co.,

Stanley & Co.j-'and White, Weld & Co.)

-Bowl-Mor Co., Inc.—.
(Aetna

*.•

(Monday)

Aluminium, Ltd.-—

common

ing capital. Underwriter—Mitchell Securities, Inc., Bftl*timore, Md.
~
V.

Common

Hammill .&

Toledo Edison Co._~u—,—

^

100,000

(Wednesday)

;

IS.

.

Boston

;

$3,960,000

General Homes, Inc

(Friday)

January 10

EST)

noon

January 19

$6,810,000

Sons)

'

-\

Baruch

Aug. 4 filed 620,000 shares of common stock (par W
cents), of which 540,000 shares are to be offered-1#
public and 80,000 shares to be issued to underwrite?,
Price—$3.75 per share. Proceeds—For manufacture CtJl
Telebet units and Teleac systems and additions to work*

Bonds

1

held;

Price—To

Automatic

(Tuesday)
$25,000,000

97,481 shares of

shares

New York.

•

'

.

'The

Common

Co

—

.

-

(Shearson,

Union Trust Co. of Maryland
*

First

six

$625,000

Corp.)

Underwriter

purposes.

Co., Inc., New York.

for

14.

•

stockholders—underwritten by The Y

!

making of the offer.
Proceeds—Together with other
funds, to purchase 262,500 shares of common stock, of.

$298,800

Northern Pacific Ry.-h——Equip. Trust Ctfs.

"y

Eouip.

(Bids

(The

Inc.)

Common

invited)

to be

(Bids

RR.

,

V

Investing

January 18

.

$20,350,000

■

Co.,

&

Preferred

„

First Boston Corp.; Union Securities
Corp.; Schoellkopf,
Hutton & Pomeroy, Inc.; and
Granbery, Marache & Co.)

.

.Common

Boston, Inc

(General

Common

_i—„

Marine Midland Corp.—

.

Ltd

Blauner

of

each
Feb.

Mid-Continent Uranium Corp.-—

.

1

or

Common
(EST) 450,000 shares

(Hayden, Stone & Co.) $8,000,000

(Gearhart & Otis, Inc.; White &
Co.; and McCoy & Willard)
Y '7 7'-' .250,000 shares
;
»>
-

.

Fund

Phoenix,

(par $5)' to
subscription by stockholders of record on
about Jan. 27, 1955 on the basis of,one new share for

be offered

(Bids noon EST) $8,910,000

I

Stylon

Income

(Wednesday)

>;Southern Pacific Co

Minerals,

Proceeds—For woo¬

Golconda

Dec. 28 filed

Harris

Co
noon

.(Milton D.

(Allen E. Beers Co.) $299,000

January 5

Fairnian,

anu

Inc.) $2,500,000

Co.,

Light

Duquesne

share).

—

^ Automatic Canteen Co. of America
Debentures

McDowell

&

&

Class B

(Bids

January 3

(Monday)

Colonial Acceptance Corp.—

$5,000,000

per

427 Security Bldg.,
Underwriter—Arizona Life Insurance Co.

general

January 17

Northern Chemical
Industries, Inc

($1

Office

Metals, Inc., Kingman, Ariz.
Dec. 7 (letter of notification) 292,000 shares of
coramo^.
stock (par 10 cents). Price—$1 per share. Proceeds—FcjK4""'

CALENDAR

(Friday)

Chiles

411

—

Underwriter—De

Arizona

Brothers &

December 31

Office

Winnipeg,

Arizona

NEW

'

Dec.

Ampex Corp., Redwood City., Calif.
Dec. 2 filed $1,500,000 of convertible subordinated de¬
bentures due Nov. 1, 1969.
Price—To be supplied by
amendment.
Proceeds—To redeem $635,000 of 10-year
6% debentures at par and to provide additional working
capital. Business—Produces magnetic recording equip-

com¬

Ltd.

Manitoba, Canada.
Gaetano Securities Corp., New York.

•

stock (par five
cents). Price—20^ cents per share.
Proceeds—For uranium and oil activities.
Office—Judge

Mines

general corporate purposes.

Bldg.,

exploration and development expenses. Underwrite!
—Ogden Uranium Brokerage Co., Ogden, Utah.

mon

Uranium

28

(Regulation "D") 1,500,000 shares of common
stock (no par value). Price—20 cents per share. Proceeds'

For

derwriter—None.

American Duchess Uranium & Oil Co.
9 (letter of
notification) 1,500,000 shares

Steel

(10 cents per share). Pro¬
development expenses. Of¬
fice—995 Market St., San Francisco, Calif. Underwriter.
—Coombs & Co., of Los Angeles, Inc., Los
Angeles, Calii.

New

City, is President.

American

A

Price—At par

ceeds—For exploration and

American Uranium, Inc., Moab, Utah
Aug. 18 (letter of notification) 3,320,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—

par¬

($10 per
Business—Dis¬

Dec.

of

Uranium, Inc., San Francisco, Calif.

capital stock.

—

par

share).

Margalith,

Offering—

-

Oct. 28 (letter of notification) 2,970,000 shares of class

$100,000 demand notes; to pay Federal income tax
liabilities and for working capital, etc.
Underwriter—
A. K. Benkert \ Co., Inc., New York.

Underwriter—

Amcrete Corp.,
Briarcliff, N. Y.
Dec. 6 (letter of
notification) 7,500 shares
ticipating preferred stock. Price —• At

Haim

Calif.

Francisco,

and

(letter of notification) 2,500,000 shares of com¬
mon stock (par three
cents). Price—10 cents per share.
Proceeds—For exploration and
development costs. Office
Ned

Underwriter—None.

.

ISSUE

Corp., N. Y. (1/13-14)
Nov. 24 filed $3,000,000 of 4% income bonds, series A,
due Dec. 1, 1994. Price—$618.75 per $1,000 bond.
Proceeds
To pay $55,000 of 6% collateral income notes

Sept. 1

Bldg., Salt Lake City, Utah.
J. Bowman
Co., the same city.

Price—At

($10 per share).
Proceeds — For construction and
equipment of hospital and medical center at Ramat Gan,

Dealer-Managers—The First
Boston Corp.; A. E. Ames &
Co., Ltd.; Morgan Stanley
& Co.; and White, Weld & Co.

REVISED

Co., both of San
Expected momentarily.

Institute,

stock.

common

ITEMS

&

Anticline

195,000 shares of

PREVIOUS

Underwriters—Blyth & Co., Inc. and Irving Lund-

borg

par

—For Expansion
program.

—218 Atlas

ment.

York

New

Inc.,

held; rights to expire on Jan. 31. Price
$46 (Canadian) per share.
Proceeds

exceed

•

Underwriter—Northern Se¬

American-Israel Paul Ehrlich Medical

ADDITIONS

SINCE

curities, Inc., Seattle, Wash.

stock

—Not

Registration

Bldg., Salt Lake City, Utah.

maximum of 921,923 shares of
capital
(no par) to be offered for subscription
by stock¬
holders of record Jan. 7, 1955 at rate of one
a

for each 10 shares

^ INDICATES

Now in

Private Wires

to

all

offices

Chicago

Cleveland

34

34

(2782)

The Commercial and Financial Chronicle.. .Thursday,

Continued,

from

33

page

additions.

Office—58 East

Maine

St., Chillicothe, Ohio.

activities. Offices — 1003 Con¬
tinental Bank Bldg., Salt Lake City, Utah, and 618 Rood
Ave., Grand Junction, Colo. Underwriter — James E.
Reed Co., Reno, Nev.

V/

Blue

mining

Jay Uranium Corp.,

Elko, Nev.
1,000,000 shares of

Oct.

15

mon

stock. Price—25 cents per share. Proceeds—For

(letter of notification)

com¬
ex¬

ploration and development costs. Office—402 Henderson
Bank Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Pro'vo, Utah.
Bowf-Mor Co.,

Inc., Everett, Mass.

(1/10)

(par $1)
and 200,000 shares of common stock (par 10 cents) to be
offered in units of

one share of each class qf stock. Price
Proceeds—To carry machine
leasesJmd
finance manufacturing operations.
Business—Manufac¬
tures and distributes by lease and sale, a bowling-pin
setting machine. Underwriter—Aetna Securities Corp.,

—$5.50 per unit.

New

York.

f

*

,

it Budget Finance Plan, Los Angeles, Calif.
^
Dec. 17 (letter of notification) 28,000 shares of 60-cent
convertible preferred

stock (par $9). Price—To be es¬
tablished by closing price on American Stock Exchange
of

date

on

offer.

Proceeds

For

additional working
Underwriters—Crutten-

—

capital and loans to customers.

Co., Chicago, 111.; Lester, Ryons & Co., Los An¬
geles, Calif.; and Reynolds & Co., New York.
it California Cold Storage & Distributing Co.
14 (letter of notification) 1,500 shares of common

Dec.

stock.

Price—At market

(estimated

at

Manufacturing

Corp.

Street, Brooklyn, N. T.
Co., Philadelphia, Pa.
•

Colonial Acceptance

Office—244

E.

Dee.

Price—At par.

sinking

$25

share).

per

Proceeds—To

selling stockholder. Office—825 Imperial
Ave., San Diego 12, Calif. Underwriter—C. L. Wells &
Co., Pasadena, Calif.
'

fund

Blosser

Colorado

Plateau

Uranium

Dec. 1 (letter of notification)

McDowell

Oct.

1, 2004.

Probable

&

gan

common

before 10:30

system.

Califoriuf Modular Homes, fnc.
(letter of notification)

^"1

Price—At par ($1

ditions

to

Office

plant
3808

—

and

22nd

196,000 shares of

share).

per

equipment

common

Proceeds—For ad-

and

working

capital.

St., East Del Paso Heights,
Capital Co., Reno, Nev.'

Underwriter—United

Calif.

it Community Hospital Association,
Wickenburg, Ariz.

writer—Melvin F.

Street, Chi¬
on

Jan.

ver,

11.

Colo.

Duke

^

and

160,000 shares of

cents) to be offered in units of
shares of stock.

Price—To

be

stock

common

a

(par five

$500 debenture and 2G

supplied tw amendment

Proceeds—For purchase from National Marine Terminal.
Inc. of its undivided interest in 17 tuna

clippers, subject
to certain liabilities; for construction of four
tuna clip¬
pers; and the balance for working capital and general
corporate purposes. Underwriter
Co.. Inc., New York.
Canada General Fund

—

Barrett Herrick

_

27

(1954)

Ltd.,

1,990,000 shares of common stock. Price—
At market. Proceeds—For investment.
Underwriter-gVance, Sanders & Co., Boston, Mass. Investment Adviser
—Boston Management & Research

Dec.

20

Co.,

same

city.

1,751,428 shares of non-cu,mulative .par¬
preferred stock (par $10—Canadian) to be-

contingent to acceptance by not less than 51%
outstanding Calvan stock. Underwriter—None.

mortgage

each.20 shares held (with

Development Corp.
Oct. 26 (letter of
notification) 16,000,000 shares
Price—At par (one cent per
share).
and development expenses.

—For exploration
ern

•

the

Gas

Corp.,

Oct. 27

stock

^

construction

Consolidated
Dec.

filed

20

cents).

-

share.

per

of

Underwriter— Van

York.

"

-

sell^hg stock¬

produces

*

Constellation
Oct.

Seattle,

Angeles, Calif.

set.

Uranium Corp.,

Denver, Colo.

Proceeds
Office—

Wash.

-

Bldg., Denver, Colo. Underwriter
Corp., Oklahoma City, Okla.

Securities Bldg.,
Blanchett, Hinton &
First California Co.,

Association, \

extent

earned

certificates

of

before

•

patronage

re¬

indebtedness,

for

Fort

Worth,

Tex.

notification) 150,000 shares

of common

(par 25 cents), to be offered for
subscription by
stockholders.
Price—$1 per share. Proceeds—To
pur¬
chase additional aircraft and
equipment, setting up new
stations, etc. Office—Meacham
Field, Fort Worth, Tex.

— At
par ($25 per share);
certificates, at principal amount.
Proceeds—To

maturity.

Under¬

working capital, etc.
Office — 9th
Lebanon, Pa. Underwriter—None.

7

filed

cents).

750,000 shares

Price

Inc.
of

$1 per share.

and

common stock
(par five
Proceeds—For exploration

development program. Office
Washington D C
Underwriter—Peter Morgan &
Co., New York. Offering,
—

—Expected

some time in
January.
^Chesapeake Industries, Inc.

Oct.

15 filed 996,304 shares
of common stock
(par $1)
and 33,818 shares of
$4 cumulative preferred
stock (oar

$10) being offered in
exchange for preferred and com¬
shares of Home &
Foreign Securities Corp. and Oils
& Industries,
Inc., common shares of common stock
of
Intercontinental Holdings, Ltd. and
Intercoast Petroleum
Corp. and capital stock of Colonial Trust
Co. The offer
is
subject to deposit of not less than
90% of the stock
of Colonial and not less than 80% of
the stock of
the first three
companies mentioned above. The offer
will expire on Jan. 27.

mon

• Chillicothe Telephone Co.
Dee. 13 (letter of
notification)
stock

(no par)
Price

holders.

to

be offered

$50

per




4,775 shares of common
for subscription
by stock¬

share.

Proceeds—For property

1, 1990.

and

Water

MT

Sts.,

(1/25)

Uranium, Mines, Inc., N. Y.
(letter of notification) 500,000 shares

stock

(par one cent).
Price—10 cents
Proceeds—For mining expenses. Office—100

of

per

;•

be

determined

*»•
4

by competitive

West

Price—$1,400

per

*

1

caoital improvements and
contingencies. Of-

1

f

J

-

1

J

and equipment and working capital. Office—
Erie Ave., Philadelphia, Pa. .Underwriters—

Offering—Expected today (Dec. 30).

I
^

|

vestments and operating
expenses. ^Office—1072 30th St.,
H. W., Washington 7, D. C. Underwriter—None.

Utah.

com¬

Underwriter—Utah Securities Co.,

Exhibitors

Film

samp

citv

Financial

Group, Inc., New York *
De£. 10 filed 100,000 shares of capital stock. Price—At I
j?a$. ($100 per share). Proceeds—For general corporate
J
purposes. Underwriter—None. Samuel Pinanski, of Bos- I

42nd

unit; and $2

,

^Proceeds—For exploration and
development expenses.
Office—506 First Security Bank
Bldg., Salt Lake City,

Underwriter—Justin Steppler, Inc., New

by underwriter.

To

Eula Belle
Uranium, Inc.
Ocif 18 (letter of notification) 5,000.000 shares of commo$ stock (par one cent). Price—Five cents per share.

share.

it Continental Loan Co., Dallas, Tex.
Dec. 22 (letter of
notification) $150,000 of 4% 10-year
debentures and 42,000 shares of common
stock (par 10
cents) to be offered in units of $1,030 of debentures and
200 shares of
stock; remaining 12,000 shares to be. pur¬

chased

l(}

jfc Equitable Investor's Securities, Inc.
Dec 10 (letter of
notification) 10,000 shares of class B i
^£>£k- (par $1)^. Price—$4 per share. Proceeds—For in- I

Contact

York.

—

Investment Corp., San
Diego, Calif. '
^Peci 14 filed 2,000,000 shares of capital stock (par $1).
/Price—$5 per share. Proceeds—For investment.

curities Corp. and A. C.
Allyn & Co. Inc. (jointly);
White, Weld & Co. and Shields & Co. (jointly); Morgan
Stanley & Co.; Harriman Ripley & Co. Inc. and The First
Boston Corp. (jointly).
Bids—To be opened at 11 a.m.
(EST) on Jan. 25 at office of Commonwealth Services
Inc., 20 Pine St., New York, N. Y.
'

St., New York.

Underwriter

^ Electronics

of first mortgage bonds to ma¬
Price—Expected to be not less favor¬

32/4% basis. Proceeds—For
expansion and improvement program. Underwriter—To
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co., Union Se¬

7

i

^i. and

York.

be determined by

Dec.

a

SrD. Fuller & Co. and J. B. Boucher &
Co., both of New

able to the company than a

mon

Union Securities Corp.; Kuhn, Loeb & Co. and Smith, Barney &
Gb. (jointly); Stone & Webster Securities
Corp.;- The
First Boston Corp. and Lehman Brothers (jointly); Carl

machinery

—

ture .Jan.

■"»

JElco Corp., Philadelphia, Pa.
Deg. 14 (letter of notification) 149,500 shares of common
s^cljr (par 25 cents). Price—$2 per share. Proceeds—For

Dec. 28 filed $30,000,000

Chesapeake Industries,

construc¬

•

it Consumers Ice & Supply Co.
21 (letter of notification)
$300,000 of 6% 12-year
registered debentures. Price—At par (in denominations
of $100, $500 and $1,000). Proceeds
For equipment,

•

new

ficef-306 E. Main St., Johnson City, Tenn. Underwriter
—rD. T. McKee Investment Co., Box 904, Bristol, Va.
'

Statement effective Dec. 20.

it Consumers Power Co.

Proceeds—To repay bank loans and for
tion* Underwriter .-—..To be determined

real estate,

finance inventories and accounts receivable and to
repay
bank loans and certificates ahead of

Underwriter—None.

—

it East Tennessee Water Corp.
;
(letter of notification) $160,000 of first
mortgage
6% bonds dated Dec. 1, 1954.. Price — At par (in denominations of $1,000 each). Proceeds—For
purchase of

Dec.

Inc.,

due

(1/10)
:
$40,000,000 of first and refunding mortgage
1975.
Proceeds
To redeem $35 000,000 of

Dec-. 2.0

5%%—20

Price —For preferred

years.

filed

man

funds"), together with $500,000 of subordinated certifi¬
cates of indebtedness, 4J/2%—10
years, and $1,000,000 of
subordinated

Un-J

bidding. Probable bidders: The First Boston Corp.; LehBrothers; Blyth & Co., Inc.; Kuhn, Loeb & Co. and
Smith, Barney & Co. (jointly); Kidder, Peabody &
Co.,,
Merrill Lynch, Pierce, Fenner & Beane and
White, Weld
&;Cd„ (jointly). Bids — Expected to be received
up to
11; a.m. (EST) on Jan.
20, 1955.

City, Mo.

the

construction.

Jen. 10.

tion/

preferred stock, 20,000 shares of 4%
second preferred- stock and 40.000
shares of 2% third preferred stock
(all three being "cu¬
to

new

>

Nov. 24 filed 80,000 shares of 5!/fe%

mulative

bank loans and for

Duquesne Light Co.: (1/20)
/
*
;
Dec. 21 filed 160,000 shares of
preferred stock (par $50).
Proceeds—To repay bank loans and for new construc-v

Office—206 Mercantile

Kansas

|

M. Loeb, Rhoades & Co, and Wertheim & Co.,
(jointly)^ ,*.
Bids—Expected to be received up to noon (EST) on Jan. '
17; 1955.
;•
• *' .
' ■:»

•'

(letter of notification) 1,000,000 shares of com¬
mon
stock.
Price—At par (one cent per
share). 'Pro¬
ceeds
For exploration and
development expenses.
Finance

share for

rill^Lynch, Pierce, Fenner & Beane (jointly);
.

'<

..

.

new

by competitive
bidding. Probable bidders: Kidder, Peabody & Co. and
White, Weld & Co..(jointly); Blyth & Co., Inc. and Mer-

11

writer—None.

—

Dec.

.

Inc.; Morgan Stanley
Co.; The First Boston Corp.
Offering—Originally set
May 11, but has been postponed because of market
date

Jan. 28.

one

oversubscription
privilege^;
Price—$40 per share. Proceeds1
an

Duquesne Light Co. (1/17)
DeGj*21 filed 450,000 shares of common stock (par $10).

writer—To be determined by
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Cb.

new*

bonds

on

$50,000,000 of first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New Yorkj
Steam Corp. first mortgage bonds and
$25,000,000 West¬
chester Lighting Co. general
mortgage bonds. Under¬

No

the basis of

on

Co.; Stone & Webster Securities Corp.; The First Boston
Corpi Bids—Expected to be received up to noon (EST)

■

Edison Co. of New
York, Inc.

conditions.

1955

/

stock (no par), to
stockholders of >'•

common

3%% bonds and for construction program. Underwriter
—Tgt be determined by, competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley &

spe¬

filed

and

Central Airlines,
Oct. 26 (letter of

—

common

subscription by

Duke Power Co.
Dec. 3

..

Consol.

12,

«

derwriter—None.

Alstyne, Noel & 'Cb., New
'

Jan.

—To" repay

*'

fl/10)

and

for

righfs to expire

i

stock,7(par 10

Proceeds—To

•

com¬

—

,

Corp.

common

offered

record

de¬

servicing and testing Equipment
generating equipment. Office—%tamford,

electrical

Conn.

Consumers Cooperative

(letter of notification) 23,355 shares of common
(par $1) being offered for subscription
by stock-

stock

Electric

Business—Designs, engineers

holders of record Nov.
30, 1954 on the basis of one new
share for each 10 shares
held; rights to expire on Jan.
3, 1955. Price—$6 per share. Proceeds—To
repay bank
loans and
promissory notes. Office

Los

Diesel

cialized lines of aircraft
and

par'" (in

^

350,000 shares of

Price-—$4

holders.

Seattle, Wash.
Underwriters
Jones, Inc., Seattle, Wash., and

-

Price-—At

$100, $500 and $1,000).; Proceeds—For
and equipment of new
hospital btiilding.

—Petroleum

Underwriter—West¬
Securities Corp., Salt Lake
City, Utah.

Cascade Natural

1975.

—

of

317 Main St., Grand Junction, Colo.

,

bonds due

of

Carnotite
stock.

f\

■■■■

Dec/33 filed 218,737 shares of

for

offered in exchange for shares of
capital stock of Calvan
Consolidated Oil & Gas Co., Ltd. at the rate of six
pre¬
ferred shares for each 17 Calvan shares.
The offer is

mon

;

(1/12/55)

Dec.

nominations

&

Petrofina, Ltd.

filed

ticipating

-

.

Power Co.

first

April 7

filed

Canadian

'

Schroeder, 501 Kittredge Bldg., Den-'

be

&

•

Toronto, Canada
Dec.

Inci,

Underwriter—None.

Inc., San Diego, Calif.
Sept. 29 filed $4,000,000 of 6% sinking fund debentures
1966

city.

same

/.V"
10 (letter of notification) $150,000 of
20-year 4J/2%

California Tuna Fleet,

due

Co.,

.

.

stock.

&

Canyon Uranium Corp., Moab, Utah
Nov.*"8 (letter of notification) 3,000,000 shares of com¬
mon* stock
(par one cent).
Price—10 cents per sharej
Proceeds—For exploration and development costs.
Of-'
fice—21 Main St., Petersen Bldg., Maob. Utah
Under->

-

Dec. 9

■*>

Devil

(EST)

a.m.

Underwriter—None.

Uranium

Van'Blerkom

(1/11)

be

on or

dtetl

Co., Salt Lake City, Utah
Oct.Jl8 (letter of notification) 2,000,000 shares of com-£
mon*stock Price—At par (15 cents per share). Proceeds
—For exploration and development expenses.
Office—i
524 Atlas Bldg., Salt Lake
City, Utah. Underwriter—

determined by competitive bidding.
Halsey, Stuart & Co. Inc.; Glore, ForThe First Boston Corp. Bids—To be re¬

90, 111.,

working

13

Desert

ceived at office of company, 72 West Adams
cago

for

—

bidders:

Co.;

macninery and

and

Mftftimac St., Lawrence, Mass/-;

360

—

.H

$50,000,000 of sinking fund debentures due
Proceeds—For construction program. Un¬

derwriter—To

Office

additional

liabilities

current

pay

Denmark, Me.
(letter of notification) 1,232 shares of commorf
stocks Price
At par ($5 per share).
Proceeds — For
completion of the construction of the company's plant
to

1,900,000 shares of

Proceds —^ For

to

it Denmark Telephone Co.,

Dec.

Co.

Commonwealth Edison Co.

purchase of one-tenthj)f4i preferred share).
urht consisting of one preferred share and^

Underwriter—Jackson & Co., Boston, Mass.

Fair-

and

warraht.

capital.

Denver 2, Colo. Underwriter—John L. Donahue, 430 16th
St., Denver, Colo.

16 filed

(letter of notification)

equipment,

stock (par one cent). Price—15 cents per share. Proceeds
—For mining activities.
Office — 824 Equitable Bldg.,

Dec.

9

Price—$l £er
one

Harris & Co., Inc., both of Chicago, 111.

man,

:J!f

,

Beers

(1/17-18)

&

address.

40,000 scares of 6% nonparticipating preferred stock (par $1) and(J
40,000 warrants representing rights to purchase .4,000
additional shares of preferred stock .(each warrark al¬

Proceeds—To retire junior subordinated
debentures which mature Dec. 1,
1958.

Underwriters—Straus,

same

cumulative

lows for the

Corp.

Corp.,

"Demars^ngineering & Manufacturing Corp.

Herkimer

Underwriter—Allen

comrhUfr stock

buy

working^capital. Office—
Fidelity Union Life Bldg., I^allas, Tex. Underwriter

•—Securities Management

$2,500,000 of 6% junior subordinated sink¬
ing fund debentures, series B, due Dec. 1, 1968, of which
$1,52{^550 principal amount will be offered in exchange
for $1,390,500 of debentures due
19)58 on the basis of
$550 of new debentures for each $500" of debentures held.

&

den

Paley

as

Proceeds—To

Budget and Mutual and for

815

Air Industries, Inc.
(1/3)
(letter of notification)1 299,000 shares of com¬
mon stock
(par five cents). Price—$1 per share. Pro¬
ceeds— For
machinery and equipment and working
capital. Name Change—Company was formerly known
29

Dec. 20 filed

Nov. 26 filed 200,000 shares of preferred stock

1

of

Circle

Nov.

share.

pef;''eommon

Underwriter—None.
Proceeds—For

December 30, 1954

ton^Mass.,
Prqjsident

"

President of American Theatres Corp., will be I
Exhibitors.
F

of

farm & Home & Discount Co., Phoenix, Ariz.
*
f*
Noyy 29 filed 320,000 shares of class A common stock l£
(par 25 cents), 214.285 shares of class B common^tock ^
Xp&Er 35 cents) and 300,000 shares of .-class C common .S

If
.r^

;olume 180

Number 5390 V.. The Commercial and Ftmmcial Chronicle

35

(2783)
*

j

\

L

.

,

-

ock

(par 50 cents).-Price— At par.
orking capital. Underwriter—None.
Farm & Ranch

Jec

u
13

jec.

Management

,

.

Proceeds^

States Utilities Co.

£,;• May-14 fil^d $24,000,000 of first mortgage bonds
,T,

,

June 1, 1984.

-

.

due l98l W $10,000,000 of 3%%
1983,[and for general corpo¬
purposes^- * Underwriter—To\£>e determined by comnoiifiua
PrnhoKlo
Kirfrlorp'
*
petitive bidding.
Probable bidders: Halsey, Stuart &

series'^ttie^tot mort^a^

(letter of nouiication; SI50000 Of
(letter or notification! $lpu,uuo of

series^A cattle

firgt mortgage
rate

ebentures; $56,250 of series B .debentures; $82,500 of
^ries C; and 385 shares of common stock (par $10).
'rice
At par. Office — 214 Royal Palm
Way, Palm
■each, Fla. Underwriter
Anderson Cook Co., Inc.,
ame city.
^
.

Kuhn,
C. Allyn & Co., Inc.
(jointly); Lee
Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,

Financial Credit Corp., New York
29 filed 250,000 shares of 7% cumulative
sinking
nd preferred stock. Price—At
par<$2 per share). Pro¬
tects—For working capital. Underwriter—E. J. FouS-

Loeb &

an.

nent

Inc., New York.

New York, N. Y., but offering has been

(amendment) $20,000,000 of periodic paysingle payment plans. Proceeds—For

plans

Butte Uranium Corp.
(letter of notification) 25,000,000 shares of capi¬
tal stock. Price—At par
(one cent per share). Proceeds
—For exploration and development
expenses.
Office—

Oct. 25

Food Mart, Inc., El Paso, Tex. (1/19)
21 filed 180,000 shares of common stock
(par"$2),
which 50,000 shares are to be offered bv
comoany

Dec.
if

36 West

Broadway, Salt Lake City, Utah.
—Melvin G. Flegal &
Co., same address.

and

130.000 shares by selling stockholders. Price—To be
supplied by amendment (about $10-$11 per share). Pro¬

—

Office—208 Turner-Cottman
Bldg., Casper, Wyo. Under¬

Shearson, Hammill & Co., N'ew York. '

writer

Casper Brokerage
Bldg., Casper, Wyo.

Foster

Publications, Inc. (N. Y.)
(letter of notification) 300,(100 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
or
working capital and general corporate purposes,
Oct. 29

and

Four States Uranium
stock.

on

Rood

Corp., Grand Junction, Colo.
notification) 300,000 shares of Com-

Joe

5

filed

common

stock

to

be

—

Price—At
tion

($1

par

~

sold

■

Proceeds—For explora¬
development costs- Office^— lOO Adelaide St

and

West, Toronto, Canada. Underwriter—McCoy & Willard,
Boston, Mass.
Gem

N.
Dec.

Y.

15

Huntington

Station,

equipment, inventory and working capital.
—S-. D. Fuller &
Co., New York.

(pat $1).

Price—$10

corporate purposes.
writer—None.
General

Tire

per

share.

Rubber

stock

(par

($100)

ucts

share

ate

J

stock

General

Oct. 27
mon

will

expire

on

Jan.

par

(25

cents

to

com¬

&

Webster

bidding.

Securities

have

(no

par).

construc¬

Underwriter—None.

etc.

per

Canadian

special

shares

4,000

been

registration

Fund

type

of

of

5%

balance
time

the

total
on

on

organization

shares

Ltd.,

Winnipeg,

mutual

investment

cumulative

Liberty Urahium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,O0O,OOO shares of common
stock (par one cent).
Price—Three cents per share.•*
Proceeds—For mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
•

Life

Insurance

17 filed

Dec.

Inc., N. Y.

Investors,

1,000,000 shares of common stock (par $1).

Price—To be supplied by amendment. Proceeds—For in¬
vestment.
Business—A diversified management invest¬
ment company.

Underwriters—White, Weld & Co., New
York, and J. C. Bradford & Co., Nashville, Tenn. Offer¬
ing—Expected latter part of January.
Uranium

Lincoln

Nov. 5 (letter of

stock

Corp., Reno, Nev.
notification) 5,500,000 shares of

common

cent). Price—Five cents per share. Pro¬
ceeds—For exploration and development expenses. Of¬
(par

one

fice—206

N. Virginia
St., Reno;
McCoy & Willard, Boston, Mass.

Underwriter—

Nev.

request
after

of
15

the

expenses,

board

days

Price—$100

on

from

per

was

unnecessary.

for

payment

date

of

grant

re¬

(par two cents). Price—Three cents

per

com¬

share.

Proceeds—For

exploration and development expenses.
Office—326 S. 3rd St., Salt Lake City, Utah. Underwriter
—None.

Probable bid¬
Corp.:
Lehman

no

debentures

dated

interest until maturity).

N.- First

Office—243

of

$100,000

notification)

of

subordinate

borrowings.

series

Dec.

Price—At

par

Phoenix,

Ave.,

C

1954

15,

(in

Ariz.

Underwriter—None.

Price—At

stock.?

($1

par

share).

per

common

Proceeds—For

incident to mining operations.
Office—329
Bldg., Boise, Ida.
Underwriter—Ernest Leroy

expenses

Yates

Bevis, 1414 Arthur St., Caldwell, Ida.
Mac Fos Uranium, Inc., Salt Lake City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share.
Proceeds—For exploration and development costs. Office
—239 Ness Bldg., Salt Lake City, Utah.
Underwriter—
Utah Securities Co., same city.

Magic Metals Uranium Corp.
Sept, 14 (letter of notification) 2,995,000 shares of com¬
stock (par one cent). Price — 10 cents per share.
Proceeds—For exploration and development expenses.
Office—65 East 4th South, Salt Lake City, Utah. Under¬
writer—Mid-Coninent Securities, Inc., the same city.
/

Magic Uranium Co., Inc., Salt Lake City, Utah
15 (letter of notification) .3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For development and exploration costs.
Of¬
fice—529 Newhouse Bldg., Salt Lake City, Utah.
Un¬
Oct.

derwriter—I. J. Schenin Co., New York.
Marine Midland

Corp., Buffalo, N. Y.

Dec. 9 filecl 407,000 shares of cumulative

offered

to

be

of

record

share for
will

for

Jan.

5,

each

18

expire

on

Proceeds—For

subscription by
1955,

on

shares of

Jan. 24.

the

in

stockholders

common

basis of

common

Price—At

investment

(1/6)
preferred stock
one

preferred
Rights

stock held.

par

($50 per share).
capital stock

additional

of

subsidiary bank, to repay bank loans and for other
corporate purposes.
Underwriters—The First Boston
Union

Securities

Corp.;

Schoellkopf,

Hutton

&

McCluskey Wire Co., Inc., New Haven, Conn.
June 21

(letter of notification) $95,000 of 5% debentures,

series A,

series B,
and

due July 1, 1962, and $95,000 of 6% debentures,
due July 1, 1970. Proceeds—To acquire assets
Office

business of H. & T. McCluskey & Sons, Inc.

—527 Grand Avenue,
Barnes,
•

Bodell &

New Haven, Conn.

Underwriter-

Goodwin, Inc., New Haven, Conn.

Merritt-Chapman & Scott Corp.
21
filed 3,018,567 shares of common

Dec.

$12.50)
of

,

it Jewell Uranium C^., Salt Lake City, Utah.
16 (letter of notification)
7,500,000 shares of
stock

of

Proceeds—For

Dec.

mon

of

agreement
of directors or at

equipment, construction and

purposes.

(bearing

preferred

signing

share.

(letter

Pomeroy, Inc.; and Granbery, Marache & Co.

stock (par
shares, respec¬
156 persons prior

provided

price

13

cumulative

common

for

agreement

• Little Loans Corp., Phoenix, Ariz.

Corp.;

2,000

by
registration-

purchase

or

and

subscribed

thinking

subscription

of

lated

a

4,000

television permit.

Hanover Bank, 70 Broadway, New
York, N. Y., butpffering has been postponed.




as

•

Brothers and Equitable Securities
Corp. (jointly); TCtihn,
Loeb & Co.; Glore, Forgan & Co. and W. C.
Langl#.&
Co. (jointly). Bids—Had tentatively been
expected to be
received up to 11:30 a.m.
(EDT) on June 15 at The

$2

Group

which

and

—

Stone

12,000 shares of common stock
share.
Proceeds—For land,

filed

2%

May 14 filed 160,000 shares of preferred stock (par $100)
Proceeds
To redeem 50,000 shares of $4.50 dividend
preferred stock, 60,000 shares of $4.40 dividend preferred
stock, 1949 series, and 50,000 shares of $4.44 dividend
preferred stock at the prevailing redemption prices- of
$105 $105. and $105.75, respectively. * Underwriter—To
ders*

—

mon

Nev.

Community Television Co., Irwin, Pa.

of

Each

Underwriter—Tellier & Co., Jer¬

competitive

Reno,

Underwriter—None.

any

by

Inc.,

(par $100) and 2,250 shares of

$100),

City, N. J.

determined

Liberty Oil & Uranium Co., Denver, Colo.
19 (letter of notification) 2,900,000 shares of com¬
stock (par one cent).
Price—10 cents per share.
Proceeds
For oil and mining activities.
Office — 250
Equitable Bldg., Denver, Colo.
Underwriter -WCarroll,
Kirchner & Jaquith, Inc., same city.T
v

,

appropri¬

Office—3603

31

stock

stock
(par one cent). Price—15 cents per share.
Proceeds—For mining activities. Office—618 Rood
Ave.,

be

.;

mon

Building, Fort

per

common,

Irwin

tively.

•

Proceeds—
in

stock (no par). -Price—For

Aug.

mon

Co.

Life

Underwriter—None.

Services, Inc.,

Green

Utilities

Office—Continental

for

company.

Office—336 Independ¬
ence Bldg., Colorado
Springs, Colo. Underwriter—Al. J.
Johnson, same city.
''
"1* ■

States

share).

per

and to be invested

investment principally iri stocks of Canadian industries.
Organized—In November 1954 by Investors Diversified

Mining Co., Colorado Springs, Colo.
(letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price—1% cents per share.

Gulf

Co.

Canada

18

Junction, Colo.

Minneapolis,

Bldg.,

Lucky-Custer Mining Corp.
(letter of notification) 50,967 shares of

Dec. 13 filed 3,000,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds—For

Proceeds—For mining purposes.

sey

filed

Investors

Globe Hill

Grand

Federal

Northwestern

Underwriter—Daniels & Smith.

Dec. 7

preferred, $20 per share,
share. Proceeds—For working
Broadway, San Antonio, Tex. Un¬
derwriter—Interior Securities, Inc., San Antonio, Tex.

development and exploration expenses.. Of¬
Building, Salt Lake City, Utah. Under¬
writer—P. G. Christopulos &
Co., same city.

Nov. 30

23

capital.

share). .Pro¬

Mountain Uranium Corp. (1/14)
(letter of notification) 2,000,000 shares of

Blauner

(1/17-18)

Insurance

($10

par

to capital

mon

ceeds—For

mon

Life

and

5, 1955.

per

D.

Investment Corp. of America
Aug. 30 (letter of notification) 3,799 shares of cumula¬
tive preferred stock (no par) and
3,799 shares of com¬

exchanged for

fice—404 Boston

Nov.

Bankers

Price—At

Price—$500

.

Uranium

Price—At

held.

securities."

Nov.

Under¬

Corp., Salt Lake City, Utah'
(letter of notification) 1,200,000 shares of com¬

stock.

Office—305
Minn.

■

Boston, Inc.

International Spa,

cumulative prefer¬

in

and

filed

Worth, Texas.

sjtock

stock

common

Designs,^develops, manufactures

tion, working capital,

offered

non-

Sept. 29 (letter of notification) 12,500 shares of common
stock to be offered for
subscription by stockholders of
record Sept. 20, 1954 at rate of One new share
for each

of Motor Products
Corp. at rate of one
preference share for each 4% shares of Motor Products
stock. This offer, which is
spbject to acceptance thereof
by holders of not less than 315,000 shares of Motor Prod¬
common

2

International

;

I.

Co.

being

—

mining activities. Underwriter—Milton
Co., Inc., New York.
t~

Proceeds—For general

Nov. 18 filed 110,189 shares of
5V2%
ence

L.

V

&

Minneapolis, Minn.
(letter of notification) 13,000 shares of preferred
(par $10) and $170,000 of 8% subordinate notes
due five years from date of issue. Price—At par. Pro¬
ceeds—To reduce bank loans and for working capital.

denominations of $1,000 each). Proceeds—To retire bank

For s addition

Office—Washington, D. C.

con¬

800,000 shares of common stock (par $1).
Price—To be supplied by amendment
(expected at $10
per share).
Proceeds—For investment.
Underwriter—
Hayden, Stone & Co., New York.

Underwriter

General Services Life Insurance Co.
Sept. 14 filed 50,000 shares of class A common

Statler

:

Dec.

300,000 shares of common stock (par
^$l).
share. Proceeds—For plant expansion, new

per

Hotels

principal amount of
$40 principal amount of

,

(1/19)

filed

Price—$5

Inc.,

Business

Income Fund of

—

Homes,

Lee Finance Co.,

stock

Dec.

one

General

—

sells special and general
purpose electronic test equip¬
ment, etc. Underwriter—Townsend, Graff & Co., New
York.,:

&

cent). Price—Two cents per share. Pro¬
ceeds—For exploration and
development of oil and 'Ura¬
nium properties.- Office
414 Judge
Bldg., Salt Lake
City, Utah. Underwriter—Utah Uranium Brokers/ same
city.
»; ' •
•

and

of

$10

For

r

(par

debentures

stock

common

of

Nov.

Uranium & Oil Co., Salt Lake
City, Utah
Dec. 9 (letter of
notification) 11,000,000 shares of capital
stock

*

Imperial Minerals, Ltd. (Canada) (1/17)
23
(Regulation "D") 830,000 shares of common
stock (par $1).
Price—36 cents per share. Proceeds—

stock

share).

per

.

2 filed

^

v

common

of

the basis

Hycon Mfg. Co., Pasadena, Calif. (1/20-25)
120,000 shares of 5%% cumulative convert¬
ible
non-participating preferred stock.
Price—At par
($10 per share). Proceeds—For general corporate
pur¬
poses, including capital improvements and
working cap¬
ital.

of

Mines, Ltd., Toronto, Can.
660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be offered in
behalf of the company and 160,000 shares for account
of Percy E. Rivett. Price—40 cents per share, U. S. funds.
Proceeds
For development and exploration expenses.
Underwriter—To be named by amendment.

•

Underwriter—None.

(Canada)

Hotel

Dec. 17 filed

Price—At par ($100 per share). Proceeds
—For capital expenditures and
working capital and other
general corporate purposes.
Office — Louisville, Ky.
Gatineau Uranium Mines Ltd.

Henning

debentures for each common share held.
Price—At 100% of principal amount. Proceeds—To
pre¬
pay bank loan and for working capital.
Underwriter—
None.

to customers.

Aug. 10 (Regulation "D") 300,000 shares

Inc.,

convertible

Manufacturing & Supply Co.

199,907 shares of

holders

on

vertible

-

Funeral -Directors
Nov.

former

Co., Inc.

Price—At par ($1 per share). Proceeds—For
and
development expenses.
Office;—618

Avenue, Grand Junction, Colo. Underwriter
Rosenthal, 1669 Broadway. Denver, Colo.
i

Co.,

it Hilton Hotels Corp., Chicago, III.
23 filed $7,978,900 of
15-year convertible deben¬
tures, due Jan. 1, 1970, and $31,915,600 of 15-year deben¬
tures due Jan. 1, 1970, to be offered to
certain holders

usiness—Publishes "Guide for Sport Fisherman." OfBroadway, New York. Underwriter—None.

exploratory

—

Dec.

ice—165

(letter of

Lake Lauzon

Aug.

-

Nov.

subordinated income debentures and to
purchase capital
stock of Del Norte Frozen
Foods, Inc. Underwriter—

16

stock

Underwriter

it Highland Uranium, Inc., Casper, Wyo.
Dec. 13 (letter of
notification) 6,000,000 shares of com¬
mon stock
(par two cents). Price—Five cents per share.
Proceeds
For exploration and
development expenses.

ceeds—Together with other funds, to be used to redeem

ug.

Kemper Thomas Co., Cincinnati, Ohio
(letter of notification) 10,000 shares of common
(par $10) to be offered for subscription by stockholders first, $ien to public.
Price—$16.50 per share.
Proceeds—For forking capital.
Office—Norwood Park,
Cincinnati, Or Underwriter—None.
Nov. 5

Nov. 3

postponed.

Gunsite

and

nvestment.
»

Co. and A.

Higginson

k First Investors Corp., New York
filed

O-

Co. Inc.; Lehman Brothers; MerrilL
Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities
Corp.;

—

)ec; 23

bonds due

T-T ilcr.Tr

—

ain & Co.,

due

Proceeds—-To redleem $10,000,000 of 3%%

stock

(par

to be offered in exchange for outstanding stock
York

New

Shipbuilding

Corp.,

Devoe

&

Raynolds

Co., Inc., Newport Steel Corp., Marion Power Shovel
Co., Osgood Co. and Tennessee Products & Chemical
Corp. on the following basis: 675,549 shares to holders
of the 540,439 outstanding shares of common stock (par.
of

$5)
rate

of

Tennessee Products & Chemical Corp., at the
lVi shares for each share of common stock of

,

Justheim Petroleum Co.,
Dec.
mon
s

9

stock

Salt Laf'e City,-Utah
2,650,000 shares of com¬
Price—10 cents per share,

(letter of notification)

(par five cents).

Proceeds
For oil and mining expenses.
Office—318
Phillips Petroleum Bldg., Salt Lake City, Utah. Under¬
writer—Hunter Securities Corp., New York.

Tennessee; 755,105 shares to holders of the 453,063 out¬

A stock (par $2) of Devoe, &
the rate ofj 1% shares for each
242,700 shares to holders

standing shares of class

Raynolds

Co.,

Inc.

at

share of class A stock of Devoe;

—>

of

the

182,025

outstanding shares

of class

Continued

B
on

common

page

36

The Commercial and Financial Chronicle

26

...

(2784)

Continued
stock

jrom page 35

of Devoe, at the rate of 1V3 shares for
common stock of Devoe; 1,290,252 shares

(par $1)

each of class B

stock

Shipbuilding Corp., at the

of New York

(par $1)

rate of

outstanding shares of common

ttye 1,290,252

to holders of

:

share for each share of common

one

stock of N. Y.

Shipbuilding; 27,907 shares to holders of the 58,605 out¬
standing shares of common stock (par $1) of Newport Steel
Corp.. not owned by Merritt, at the rate of one share

Newport; 26,114
outstanding shares of
common
stock (par $10) of Marion Power Shovel Co.,
not owned
by Merritt, ,at the rate of 1% shares for
each share of common stock of Marion; and 940 shares
to holders of the
1,410 outstanding shares of class B
common
stock (without par value) of the Osgood Co.,
not owned by Merritt or Marion, at the rate of one share
for each IV2 shares of class B common stock of Osgood.

for each
shares

Canned Beverages

Mi-Ame

Co., Hialeah, Fla.

(letter of notification) 200,000 shares of common '
stock. Price—-At par ($1 per share). Proceeds—To pur¬
chase raw materials and new machinery, and for work¬

Underwriter

ing capital.
Miami, Fla.

—

Frank D. Newman & Co.,

;

**

•

Uranium Corp.

Mid-Continent

purchase price of New Mexico property; to purchase
equipment and wells; and for working capital. Under¬
writer
Langley-Howard, Inc., Pittsburgh, Pa., on a
basis.

(1/17-18)

1,562,500 shares of common stock (par one
Price—40 cents per share.
Proceeds—For ex¬

for
Under¬

ploratory operations, machinery and equipment, and

and unforeseen contingencies.
writer—General Investing Corp., New York.
working capital

520,000

operations and other
general corporate purposes. Office—Albuquerque, N. M.
Underwriter—Rduscher, Pierce & Co., Dallas, Texas.

outstanding debts and for drilling

Laboratories, Inc.

Paraderm

(letter of notification) 250,000 shares of com¬
mon stock
(par 30 cents). Price—$1 per share.
Proceeds-^-For working capital.
Office—415 Congress St.,
Nov.

12

V

y

•

Underwriter
,/
'

Me.

Portland,
Mass. y

—

;

yy

of

one

share for each *10 shares held.

new

Price—

Proceeds—For construc¬
tion program.
Underwriter—May be Edward D. Jones
& Co., St. Louis, Mo., who underwrote previous common

To be

supplied by amendment.

stock

financing.

Moab, Utah
6,000,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—
For mining expenses/ Office—325 Main St., Moab, Utah.
Underwriter—Van Blerkom & Co., Salt Lake City, Utah.
(letter of notification)

Co., Las Vegas, Nev.
2,500,000 shares of capital
stock (par two cents). Price—10 cents per share.
Pro¬
ceeds—For exploration and development costs. Office—
230 Fremont |t., Las Vegas, Nev.
Underwriter—Allied
Underwriter Co., the same city.
Pay Day Uranium

(letter of notification)

Uranium

Corp., Moab,

Utah

(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For exploration and development expenses.
Underwriter—James E. Reed Co., 139 North Virginia
5

St., Reno, Nev.
^ Nash Finch Co., Minneapolis, Minn.
Dec.

6

(letter of notification)

1,000 shares of common
stock. Price—At maximum of $18.50 per share. Proceeds
—To

share of Pennsylvania common stock for
each two shares of Scranton common stock; (b) one
share of Pennsylvania 4.40% series preferred stock for
each
share
of
Scranton 4.40%
cumulative preferred
basis:

(a)

Willis King Nash,

the selling stockholder.

writer—J. M. Dain & Co.,

Under¬

Minneapolis, Minn. •v,i.

sylvania's 4j/2% preferred stock.
Pennsylvania owns
approximately 91% of the preferred stock and 91% of
the common stock of Scranton.
44

+ Petroleum Reserves, Inc., New York
Dec. 27 filed
$7,500,000 of 4% debentures

ceeds—To acquire stock of Pacific Can Co, Underwriters
—Bear, Stearns & Co. and A. C. Allyn & Co. Inc., both
of

A. M. Burden &

★ National Can Co.
filed

22

$4,500,000 of 5% convertible subordinate
1, 1976 to be offered to.* sub¬
scription by common stockholders. Price—At par. Pro¬
income debentures due Jan.

New

York.

New Britain Gas
Dec.

Light Co.

15

stock

(letter of notification) 8,572 shares of common
(par $25) to be offered for subscription by stock¬
Price—$26 per share. Proceeds—To repay bank

holders.
loans.

Office—35 Court

St., New Britain, Conn.

Under¬

writer—None.
New

Dec.

England Power Co.

13 filed

$25,000,000 of first mortgage bonds, series
1985. Proceedsr—To purchase properties

F, due Jan.

1,

from Connecticut River Power Co.

determined

by competitive
Stuart & Co. Inc.;

Underwriter—To

bidding.

be

Probable bidders:

Kalsey,
Kuhn, Loeb

Equitable Securities Corp.;
& Co.; The First Boston Corp.; Merrill
Lynch, Pierce, Fenner & Beane; Kidder/'Peabody & Co.
and White Weld & Co. (jointly). Bids—Expected to be
received

Jan.

on

18, 1955.

New Silver Belle Mining Co., Inc.,
Almira, Wash.
Sept. 8 (letter of notification) 500,000 shares of common
stock

(par two cents).

Price—10 cents per share.

ceeds—For. exploration

and

development costs.

Pro¬

Under¬

writers—Percy Dale Lanphere and R. E. Nelson & Co.,
both

of

Spokane, Wash.

New

York

Dec. 6 filed
offered

common

74,925 shares of

in

N.

Y.

Dec.

16

stock

(par

stock of the Trailer company.

Proceeds—To

repay

loan.

Office—Elizabeth

Underwriter—None.

8

stock

(letter
(par

stockholders
share.

on

shares

of

5%

(par $100).

cumulative

Price—At

par.

Proceeds—To

of

raw

materials.

Office

—

Crescent

City,

Calif

8

filed

of

lndustriesxlnc.

$5,000,000

of

(12/31)
15-year\5,/2% subordinate

debentures due Dec. 1, 1969, and 100,000 shares of com¬
mon
stock, class B (no par) to be offered in units of

$1,000 of debentures and 20 shares of stock.
be supplied

by amendment.




basis.

machinery

Price—To

Proceeds—For construction

^

Uranium & Oil Corp., Inc.

(letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses.
Offices — 506 Beason
7

and 1016 Baltimore Bldg.,
City, Mo. Underwriter—E. R. Bell & Co., Kansas
City, Mo.
I"
Southeastern
Dec.

9

(letter of

Price—$1.75

stock to

common

four

class

B

hotel

per

at

unit.

237-241

Proceeds
No.

—

Virginia

To

Wulbern, Inc., Jacksonville, Fla., and

Wheeler

&

Service

14

stock
—For

(letter of notification) 10,500 shares of common

(par 10 cents). Price—$16.66 per share. Proceeds
working capital. Office—Buffalo 25, N. Y.; Under¬

writer—None.

>

&

Gas

Co.

(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds
For exploration
and development costs.
—

loans and

for

offered in units of

—$10.01 per unit. Proceeds—For
construct and

Dec. 23

purchase of land and to

luxury hotel. Underwriter—None.

a

filed

(1/13)

stock

125,000 shares of class A non-voting com¬

(par

to be offered for subscription by
class B common stocks at rate of

$1)

;

holders of class A and

(1/12)

pro¬

share for each two shares

held.

N. Y., and Miami, Fla.

Co., New York.

Underwriters—Morgan Stanley & Co.; Drexel &
Co.; and Glore, Forgan & Co.

Price—To be

(Hugo) Corp., New York
22 filed $6,000,000 of notes and an

.

_

Stinnes
-

* Rainier Telephone Co., Rainier, Was/.
14 (letter of notification) $85,000 of 5lA% 20-year
sinking find bonds due Dec. I, 1979. Price—At par (in

new

supplied by amendment. Proceeds—To enable company
to expand its business.
Underwriter — A. M. Kidder & j

gram.

Dec.

equip

it State Fire & Casualty Co., M;ami, Fla.

eight-

Reno, Nevada/

construction

shares of common stock (par one cent) to be
one share of each class of stock. Price

and 621,882

be offered in
shares only to

250,000 shares of cumulative preferred stock
bank

City, Utah.

Stardust, Inc., Reno, Nev.

Price—To be supplied by amendment. Pro¬
reduce

stock

Underwriter—Ned J. Bowman Co., Salt Lake

one

ceeds—To

Corp., Salt Lake City, Utah

Aug. 2
mon

mon

Electric

>

Stanley Aviation Corp.
Dec.

Underwriter—None.
Public

Leedy,

Alleman, Inc., Orlando, Fla.

July 9 filed 621,882 shares of preferred stock (par $10)

construct

St.,

7,897 shares of common

notification)

(par $15).
Price—$25 per share.
Proceeds—To
increase capital and surplus.
Underwriters — Pierce,

per

$500

—

Surety Co., Tallahassee, Fla.

stock

and

Price

s+ory

.:/

(par five

Salomon
Oct.

Hotel, Inc., Reno, Nev.

and

-...

notification) 2,900,000 shares of common
cents), including shares for option!to
underwriter and prior property owner to be amended./
Price—10 cents per share.
Proceeds—For development/
and exploration expenses. Office—Newhouse Hotel, Salt
Lake City, Utah.
Underwriter — Van Blerkom & Co.*
same city.

4

A

Development Corp.

Oct. 8 (letter of

approved by the Nevada State Tax Commission.

(par $100).

filed

Slick Rock Uranium

Office—4702.xOlive St., St. Louis, Mo.

class

"..

Securities Corp., Las Vegas, Nev.

—Western

2,330 shaves of class A common stock and

one

Nev.

(letter of notification) 2,994,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceds—For exploration and development costs.
Of¬
fice—211-206 N. Virginia Street, Reno, Nev. Underwriter
Nov. 22

Kansas

persons

Dec. 22 filed

Northern Chemical

Underwriter—None.

Calif.

stock

Underwriter—None.

t rderwriter—None. Sales to be made
through Raymond
«

activities.

Star Uranium

Benjamin Robbins.
Dec.-10

Proceeds—For expenses incident to petroleum
Office — 3052 W. Valley Blvd., Alhambra,

share).

Mercantile Co., St. Louis, Mo.
Dec. 13 (letter of notification) 11,428 shares of common
stock (par $25) to be offered forwsubscrlption by key
employees. Price — $25.50 per share. Proceeds — For

units

(par $5,000)
participating pre¬

purchase properties of Paragon Plywood Corp. and pur¬
chase

^ Sierra Petroleum Co., Alhambra, Calif.
12 (letter of notification) 50,000 shares of common;;

(L. B.)

Primadonna

Quincy Cass

stock, of which 20,000 are to be issued to Ziegler Explo¬
ration Co. for completing well.
Price—At par ($1 perj

equipment and
working capital.
Business — Manufactures and sells
plastic screw-cap closures.
Office—405 Lexington Av¬
enue, New York, N. Y. Underwriter—None.
i*r Price

—

Nov.

Carrison,

Proceeds—For

Underwriter

program.

Bldg., Salt Lake City, Utah,

one-for-five

a

expansion

Associates, Los Angeles, Calif.

notification) 40,000 shares of capital
to be offered for subscription by

of

10, 1955 at rate of one new share for each
held.
Price—$32.50 per share. Proceeds—

Jan.

shares

For

19,767 shares of capital stock (no par) to
by common stockholders of

for subscription

offered

record

cents)

10

(1/10)
filed

14

four

York.

9,260 shares of class B

Northern California Plywood, Inc.
Sept. 13 filed 300 shares of common stock
stock

be

Poly-Seal Corp.
Dec.

Dec.

subscription bv stock¬

5,000

Inc.
Dec.

cent).

one

Pacific Coast Securities Co., San Fran¬

•—

Up Bottling Co. of Los Angeles,

Seven

For exploration and

—

holders.

ar.d

Underwriter

cisco, Calif.

(letter of notification) 5,000,000 shares of com¬

Proceeds

(letter of notification) 12,600 shares of cumula¬
preferred stock (par $1). Price—$20 per
Proceeds — For expansion and working capital.

10

share.

Price—IV2 cents per share.
development expenses.
Office—50 Richards St., Salt Lake City, Utah.
Under¬
writer—Pioneer Investment Co., same address.

mon

Industries, Inc., Phoenix, Ariz.

Savage
Dec.

tive convertible

•fc Pineco Uranium Corp., Salt Lake City, Utah

working capital.

ferred

New York.

—

States Trust Co., New

N. M.

Saniicol Uranium Corp., Santa Fe,

Sept. 14 filed 300,000 shares of common stock (par 10
cents).
Price—$2 per share.
Proceeds—For develop¬
ment and exploration expenses, etc.
Underwriters—R.
V.
Klein Co. and McGrath Securities Corp., both oI

580 Fifth Ave., New York 36,
Underwriter—None.
Subscription Agent—United

Norfolk & Carolina Telephone &
Telegraph Co.
Nov. 10 (letter of notification) 2,000 shares of common
stock (par $100) to be offered for

C:ty, N. C.

Inc., New York.

Co., New Yoik.

Office

Underwriter—Philip Gordon & Co.,

S. D.

Rapid City,

Phillips Screw Co., New York
(letter of notification) an undertermined number
of shares of capital stock (par 10 cents) being offered for
subscription by stockholders of record Dec. 16 on the
basis of one new share for each 4V2 shares held (with an

subsidiary.

exploration and development expenses of
Office—618 6th St., Box 8,

For

—

uranium and oil properties.

Dec. 3

of

(par one cent).

ceeds

Corp.

2,000,000 shares of common
Price—15 cents per share. Prof.

(letter of notification)

stock

.

Shipbuilding Corp.

common stock (par $1) to
exchange for 374,624 shares of common
stock (par five cents) of Highway Trailer Co. at rate of
one share of
Shipbuilding stock for each five shares of

be

Rushmore Uranium & Oil

oversubscription privilege); rights to expire on Jan. 14.
Price—$3.75 per share. Proceeds—For working capital

(1/18)

(par

Silver Pick Uranium, Inc., Reno,

due 1970,
100,000 shares of 5% preferred stock (par $25) and
1,000,000 shares of common stock (par 10 cents) to be
offered ih units of $75 principal amount of debentures,
one share
of preferred stock and 10 shares of common
stock. Price—To be supplied by amendment.
Proceeds
—For acquisition of properties.
Underwriter—William

Dec.

12,40J shares of common

(letter of notification)

$1).
Price—At market (around $15 per
share). Proceeds—To selling stockholders.
Underwriter
—Granbery, Marache & Co., New York.
stock

one

(c) one share of Pennsylvania 3.35% series
preferred stock for each share of Scranton 3.35% cumu¬
lative preferred stocl&i or, at the election of the Scran¬
ton
shareowners, for each share of Scranton's 3.35%
cumulative preferred stock, two shares of Pennsylvania's
common stock, or for each lot of four shares of Scranton
3.35% cumulative preferred stock, three shares of Penn¬

Colo. Underwriter-

Engineering Corp.

(J. O.)

* Ross

production expenses,

Inc., same city.

Peters, Writer & Christensen,

•

stock; and

Cristo

Monte

Oct.

ventory, working capital, sales and
etc. Office—150 Tejon St., Denver,

Dec. 7

Paramount Uranium Corp.,

Oct. 15

stock.

Sheeham & Co., Boston,

$100); 5,378 shares of 3.35% cumulative preferred stock
(par $100); and 4,032 shares of 4^2% cumulative pre¬
ferred stock (par $100) .being offered in exchange for
securities of The Scranton Electric Co. on the following

Co., Cape Girardeau,

Denver, Colo.

(letter of notification) 60,000 shares of common
Price—$1 per share. Proceeds—For increased in¬

Bee. 27

Mo.
Dec. 20 filed 27,420 shares of common stock (par $1) to
be offered for subscription by common stockholders at
Utilities

Missouri

rate

Future Estate

Oct. 27

shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds—To pay *
filed

18

Pennsylvania Power & Light Co.
Dec. 2 filed 65,455 shares of common stock (no par);
858 shares of 4.40%
cumulative preferred stock (par

1

36, N. Y/ Underwriter—Jerome Rosenberg,
Planning. 630 McLean Ave., Yonkers, N. Y.

York

New

Rolon Tire Chain Co>rp.,
Oroco Oil & Gas Co.
Nov.

Investors Financial Corp.
(letter of notification) 150,000 shares of common
stock (par 25 cents).
Price—$2 per share. Proceeds—
For general corporate purposes.
Office—2310 Main St.,
Houston, Texas. Underwriter—Cobb & Co., Inc., same
city.
Military

Dec.

Valley Telephone

Rapid Film Technique, Inc., N. Y. City
July 30 (letter of notification) 60,000 shared of com¬
mon
stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—For working capital. Office—21 West 46th Street,

—

"best-efforts"

Oct. 7

Nov. 26 filed

cent).

indebtedness to

and

17,409

the

of

holders

Oct. 28

•

stock (par $1).
Proceeds—To repay bank loans
company officials; to pay balance of

Prioe—$3.50 per share.

Methow

of

assets

Onego Corp., Uniontown, Pa.
8 filed 150,000 shares of capital

Dec.

Proceeds—To purchase
Co., refund mort¬
gage debt, and for working capital.
Underwriter—Wm.
P. Harper & Son & Co., Seattle, Wash.
denominations of $1,000 each).

shares of common slock of

2.1

to

Me.

expenditures and working capital. Office—Searsport,
Underwriter—White, Weld.& Co., New York.

30, 1954

Thursday, December

Nov.
ber

of

shares

nm'tn

nf

of common
'

"

CI

ftflfl

*

nf

stock
"

*

nnfpc

n

r»H

unspecified num¬
to be offered

(par $5)
,.v\

mii

rwrSOIt

Volume 180

Number 5390... The Commercial and Financial Chronicle
\

(2785)
\

.

,

of

<

.

shares.

common

Price—To

Proceeds—For

ment.

be

retirement

supplied by amend¬
of

7%

debentures

of

Hugo Stinnes Industries, Inc., due 1946. Underwriters—
Halsey, Stuart & Co. Inc. and A. G. Becker & Co. Inc.,
Chicago and New York.
•

Stylon Corp. (1/5)
Dec.' 9 filed 250,000 shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—To
selling, stockholders. Underwriters — Gearhart & Otis,
Inc.; McCoy & Willard; and White & Co.

United
Dec.

Corp. (1/11)
170,000 shares of

stock

common

(par $10).

Proceeds—To Electric Bond & Share Co. This sale will
reduce E. B. & S.
holdings to less than 10% of United
Gas Stock outstanding.

Underwriters—To be determined
by competitive bidding. Probable bidders: Blyth &
Co.,
Inc.; Merrill Lynch, Pierce, Fenner & Beane and Kid¬
der, Peabody & Co. (jointly); Goldman, Sachs &

Co.;

The First Boston

tively
on

Superior Uranium Co., Las Vegas, Nev.
Siept. 1 (letter of notification) 29,910,000 shares of

Gas

15 filed

expected

Corp.; Lehman Brothers.
to

about Jan.

or

be

received

to

up

Bids—Tenta¬

3:45

(EST)

p.m.

11.

ceeds—For expenses incident to
mining operations. Ad¬
dress—P. O. Box
289,

Wallace, Idaho. Underwriter—AlTeske, d/b/a Wallace Brokerage Co., Samuels
Hotel, Wallace, Idaho.

den

J.

Washington Natural

Gas

Co., Clarksburg, Va.
Sept. 20 (letter of notification) 10,000 shares ot
common
Price—At the market (estimated
at $1.37% per
share). Proceeds—To Elizabeth D.
Hardman, the sell¬
ing stockholder. Underwriter—Barrett Herrick
stock.

&

Inc., New York.
'

•

'

stock.

com¬

Price—At par (one cent per share). Proceeds

^ United States Plywood Corp. (1/25)
Dec. 22 filed $25,000,000 of 25-year
sinking fund deben¬
tures due Jan. 1, 1980. Price—To be
supplied by amend¬
ment.

Brokers, Inc., the

debentures

city.

Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share
Proceeds—For exploration and development of proper¬
ties.

Office —1406

Texas.

Life

Underwriter

of

America

Western

—

Building, Dallas.
Corp., Salt

Securities

Lake City, Utah.

stock.

Price—10

exploration

and

cents

per

development

share.

com¬

Proceeds—Fox
Office

expenses.

Railway Exchange Building, Denver, Colo.
—E. I. Shelley Co.,
Denver^ Colo.

—

317

Underwrite!

Mines, Ltd. (Canada)
(Regulation "J?") 599,760 shares of common
(par $1—Canadian). Price—50 cents per share

fTarbell

Sept.

24

stock

—U. S. funds.

Proceeds—For exploration and develop¬

.

ment expenses and

acquisition of property.
—H. J. Cooney & Co., New York.

Underwriter

Temple Mountain Uranium Co.
Oct. 7

(letter of notification) 3,500,000 shares of com¬
mon stock
(par 2Vz cents). Price — 3 cents per share
Proceeds—For exploration and development expenses
Office—39

Exchange Place, Salt Lake City, Utah.
derwriter—Walter Sondrup, same city.
Texas

Un¬

International

Sulphur Co.
455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered foi
subscription by common stockholders at the rate of one
June 21

filed

share

new

for

each

4%

shares held;

and 70,000 shares
are for account of certain
selling stockholders. Price—To
be supplied by amendment.
Proceeds—For exploration
and drilling, and payment of bank loans and advances
Underwriter—Vickers Brothers, New York, on a "best ef¬
forts" basis.

Texcrete Structural Product
Co., Dallas, Texas
14 filed 350,779 shares of common stock
(par 10
cents) to be offered for subscription
by stockholders of
Texas Industries, Inc. of record Dec.
10, 1954 at rate of
One share Texcrete for each share of Texas Industries

Dec.

then held.
to

Price—$3 per share to stockholders and $3.50
Proceeds—For expansion and general corpo¬

public.

rate

purposes.

Underwriters—Rauscher, Pierce & Co.,

Inc., Dallas, Tex., and Russ & Co., San Antonio, Tex.
Thunderbird Uranium Co., Reno, Nev.

redeem

for

other

$15,000,000 of outstanding

corporate

Under¬

purposes.

United States Plywood
Corp.
Dec. 27 filed
memberships in the

ployees'
30,000

Stock

shares

estimated

Purchase

of

1955

members

Plan

common

aggregate
out

the

of

and

the

writer—None.

corporation's

Em¬

for

1955, together with
(par $1), which is the

stock

number

of

funds

shares

purcliaseable

created

by the deposits
company's contributions. Under¬
v

■

reserve

to

meet

obligations. Office
Underwriter—None.

operating
1819

—

Ave.,

other

Baltimore, Md.

it Universal Major Corp. (Nev.) (1/12)
Dec. 21 (letter of
notification) 150,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
To

retire

indebtedness

Business—Manufacture

and

of

for

working

major home

fice—67 East 59th
St., New York, N.
Gearhart & Otis, Inc., New York.

Y.

capital, etc.
appliances. Of¬
Underwriter—

Universal Petroleum Exploration &
Drilling Corp.
(letter of notification) 300,000 shares of common

Oct. 4
stock.

Price

At par

—

($1 per share).

Proceeds

—

For

cost of Driller

Boy (drilling equipment which company
out), and working capital. Office—c/o Edwin J.

rents

Dotson, attorney-at-law, Simon Bldg., 230 Fremont
St.,
Las Vegas, Nev.
Underwriter—Robert B. Fisher In¬
vestments, 510 South Fifth St., Las Vegas, Nev.

Urainbow, Inc., Salt Lake City, Utah
Aug. 31

(letter of notification) 2,000,000 shares of com¬
(par two cents). Price—15 cents per share.
Proceeds
For exploration and
development expenses.
Office—908 Kearns Bldg., Salt Lake
City, Utah. Under¬
writer—Austin B. Smith
Brokerage Co., the same city;
stock

mon

(letter of notification) 1,800,000 shares of com¬
stock (par 10 cents). Price — 15 cents
per share

—

it Uranium Associates, Inc., Denver, Cole.
Dec. 22 (letter of
notification) 2,600,C03 shares of comr
mon
stock (par one cent).
Price—10 cents per share.
Proceeds
For mining operations.
Underwriter
~^-pW.
Carter Henderson, 227 Forrest
Ave., Shre/eport^ La.

Proceeds—For mining activities. Office—206 N. Virginia
St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City

Uranium Corp. of Colorado
Sept. 23 (letter of notification) 300,000 shares of

Thunderbolt Oil Corp., Washington, D. C.
Dec. 8 (letter of notification) 2,500,000 shares of
stock.

Price—At

(one

par

cent

per

share).

com¬

Pro-

address.

same

Discovery & Development Co.,
Wallace, Idaho
1
(letter of notification) 1,000,000 shares of capi¬

16

1

T.

M. T.

Trailer

Ferry, Inc.

tal

stock (par 10 cents) to be offered in units of
$100 of debentures and 10 shares of stock. Price—$101
per unit.
Proceeds—To purchase equipment to retire
common

$50,000 of notes and for working capital.

r7

* Toledo Edison Co.

(1/19)
400,000 shares of common stock (par $5)
and 100,000 shares of preferred stock
(par $100). Price
•—To be supplied by amendment.
Proceeds—To repay
Dec.

filed

29

bank loans and for construction

program.

Underwriters

—The First Boston

Corp., New York, and Collin, Norton
& Co., Toledo, Ohio.
Trans-Continental
Oct.

1

mon

stock.

Uranium

(letter of notification)
Price—At

Corp.
2,990,000 shares of

com¬

(10 cents

par

per share).
Prodevelopment costs. Office
—358 S. 3rd St. East, Salt Lake
City, Utah. Underwriter
■—Western Securities Corp., same
city.

ceeds-*-For

Turf
Nov.
and

12

and

Paradise,

Inc., Phoenix, Ariz.
83,334 shares of common stock (par $10)
shares of preferred stock (par $20) to be

filed

83,334

offered

exploration

in

Price—$30

units
per

and to
r^pay

of

unit.

one

share

of

each

class

of

stock.

Proceeds—To construct racing plant

obligations. Underwriter—Selected Securi¬

ties, Inc., Phoenix, Ariz.

stock.

Price—At

ceeds—For

par (five cents per share).
Pro¬
drilling program upon two groups of

core

claims.

Address—Box 709, Wallace, Idaho.
—Wallace Brokerage Co., some city.

Underwriter

Uranium of Utah, Inc., Provo, Utah
Sept. 14 (letter of notification) 3,000,000 shares of com¬
mon
stock
(par 1 cent).
Price —10 cents per share.
Proceeds—For exploration and development costs. Office
227 N.
University Ave., Provo, Utah.
Underwriter—
Bay Securities Corp., New York.

it Uranium Shares, Inc., Denver, Colo.
(letter of notification) 30,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses. Office—3038 Wyandot St.,
Denver, Colo.
Underwriters—Kamp & Co., Fred W.
Dec. 22

Miller
ver,

& Co. and

Mile

High Securities Co., all of Den¬

Colo.

Utaco Uranium,

Inc., Salt Lake City, Utah
notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For exploration and development costs.
Of¬

Oct.

7

(letter of

fice—420

Felt

Building, Salt Lake City, Utah. Under¬
writer—Western Securities Corp., Las Vegas, Nev.
3,000,000 shares of capi¬
(par three cents). Price—Six cents per share.
Proceeds—For exploration and development expenses.
stock

Office—430 Judge Bldg., Salt Lake

mon

City, Utah. Under¬
writer—Mid-Continent Securities, Inc., same city.

fice—906 Walker Bank

Utah Uranium Corp., Las
Vegas, Nev.
Aug. 20 (letter of notification) 10,000,000 shares of capi¬

Bldg., Salt JLake City, Utah. Un¬
derwriter—Western Securities
Corp., the same city.'
Uintah

Oct. 5
mon

Uranium, Inc., Salt Laka*City, Utah.
(letter of notification) 15,000,000 shares of com¬

stock

Proceeds

(par

one

cent).

For

Price—Two cents per share.

exploration and development costs.
Judge Bldg.. Salt Lake City, Utah. Under¬
writer—James E. Reed Co., same
city. ;
—

Office—424




ture

and

one

amendment.

Dallas, Tex.
12-year 6%

share of stock.
Price—To be supplied
by
Proceeds—From sale of units and

1,125,000

additional shares of

common

stock

$55,000,000 first mortgage bonds
mile
&

York.

crude

Co.

debentures

580,000 shares of common stock
to be offered in units of one
$50 deben¬

(par 50 cents)

and

oil

and

to

be

private sales of
used

to

pipeline.

Underwriters
Securities Corp., both

Union

build

Offering—Postponed indefinitely.

a

White,

—

of

New

/

West Coast Pipe Line
Co., Dallas, Tex.
Nov. 20, 1952 filed
1,125,000 shares of common stock (par
50 cents).
Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, to be used to build

pipeline.

Underwriters—White, Weld

Securities
poned

Corp.,

both

of

New

York.

&

Co.

and

Union

Offering—Post¬

indefinitely.

West Virginia Water Service Co.
9 (letter of
notification) 800 shares of $5
tive preferred stock (no

Dec.

par).

Proceeds—For

new

Price—$105

construction.

St., Charleston, W. Va.
Co., Portland, Me.

cumula¬

per

Office—179

Underwriter—H. M.

share.

Summers

Payson &

Western Central

Petroleums, Inc., N. Y.
Sept. 16 (letter of notification) 133,333 shares of common
stock (par 10
cents).
Price—At market (estimated at

36%

cents).

Proceeds—To certain selling stockholders.
Underwriter
S. B.
Cantor Co., New York.
Office

—

32

Broadway, New York.

Western

Plains

Oil

&

Gas

—

Co.

May 24 filed 100,000 shares of common stock
Price—$4.75 per share. Proceeds—To redeem

(par $1).
1,250 out¬

standing preferred shares ($125,000), to
repay
bank
loan,' etc. ($2,500); for purchase or acquisition of addi¬
tional mineral
interests, leases and royalties in the
United States and Canada and for other
corporate pur¬

poses.

Rice

Office—Glendive, Mont.

&

Co., St. Paul, Minn.

Wilco

Oil

&

Minerals

Underwriter—Irving J.

Corp.

Nov# 2 (letter of notification) 300,000 shares of
common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For expenses incident to oil
activities.
Office
728
—

Columbus

St., Rapid City, S. D.
Streitman & Co., New York.
' '

Underwriter—Fenner7 A
,

Montgomery

Co., Philadelphia, Pa.
Dec. 9 (letter of notification)
'$150,000 5% registered
debenture notes (subordinated)
maturing 10 years from
date of issuance.

Price—At par. Proceeds—For
working
capital. Office—999 No. Second St., Philadelphia
23, Pa.
Underwriter—None. •

tal

stock

(par 1

Proceeds—For

cent).

Price

exploration

—

and

Three cents per share.

development

Office—1818 Beverly Way, Las
Vegas, Nev.
—First Western Securities, same city.

expenses

Underwriter

yulcan-Uranium Mines, Inc., Wallace, Idaho
Oct.

15

mon

stock.

(letter of

notification) 1,500,000 shares of com¬
(five cents per share).*Pro¬

Price—At par

it Woodland Oil & Gas Co., Inc.
(letter of notification) 299,900 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
Dec. 21

For

equipment,

drilling expenses and working capital.
Broadway, New York, N. Y. Underwriter—
North Co., Inc., same address.

Office—42
E. M.

World

Uranium Mining Corp.
s
(letter of notification) 9,996,000 shares of com¬
(par one cent).
Price
Three\ cents pel

July 21

stock

mon

share.
penses.

Utah.

—

Proceeds—For exploration arid
Office—323 Newhouse bldg.,

deyelopment ex¬
SalTXake City,

Underwriter—P. G. Christopulos &
Co., same city.

it Wright Line, Inc., Worcester, Mass.
7
17 (letter of
notification) 6,980 shares of class B
common stock (par
$2.50) to be issued at $5.25 per share
Dec.

to

holders

of

options

for 6,420 shares granted Jan. 29,
share to holders of options for 560
shares granted Dec. 11, 1954. Proceeds—To restore work¬
ing capital, purchase land and construct new
factory
1954 and at $6.75

per

building, and for general corporate purposes. Office—100
Exchange St., Worcester, Mass. Underwriter—None.'
it Wynn Pharmacal Corp.
Dec.

23

common

(letter of notification) 85,000 shares of class B
stock
(par 10 cents).
Price—$2.50 per share.

Proceeds

company's

Utah Apex Uranium Co.
Oct. 18 (letter of notification)
tal

Ucolo Uranium Co., Salt Lake
City, Utah
Sept. 13 (letter of notification) 2,800,000 shares of com¬
stock (par one cent). Price — 10 cents
per share.
Proceeds—For exploration and
development costs. Of¬

West Coast Pipe Line
Co.,
20, 1952 filed $29,000,000
due Dec. 15, 1964, and

Uranium
Nov.

Nov. 23 (letter of notification)
$295,000 of 5%% convert¬
ible debentures due Dec. 1, 1960 and
29,500 shares of

common

(par one cent). Price—$1 per share. Proceeds—
For exploration
and
development costs.
Office —129
East 60th St., New York, N. Y.
Underwriter—None.

ceedsh-Fpr oil and gas activities. Office—1424 K St.,
N.W., Washington, D. C. Underwriter—Coombs & Co.,

(Regulation "D") 900,000 shares of common
(par five cents). Price—30 cents
per share.
Pro¬
general corporate purposes. UnderwriterWillis E. Burnside &
Co., New York.

William

stock

mon

18

ceeds—For

1,030

and/or

expenses

Park

Nov.

stock

Weld

>. .-7

it Universal Check Corp., Baltimore, Md.
Dec. 21 (letter of
notification) $25,000 of 10-year 6%
class A debentures (denominations
$500 each), 50 shares
of class A
non-voting common stock at $1 per share,
$100,000 of 10-year 6% class C debentures (in denom¬
inations of ^SOtT^eaOTl^ThRTlOlF^hares of
class C non¬
voting common stock at $100 per share. Proceeds—For
cash

Wenga Copper Mines, Inc., N. Y.

Nov.

—

Aug. 3
mon

and

writer—Eastman, Dillon & Co., New York.

of

,

mon

Proceeds—To

during

Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of

*

•

—For development and exploration costs. Office—Medi¬
cal Arts Bldg., Las Vegas, Nev. Underwriter—Uranium
same

Co.,

'

'•

r.

mon

37

*

For- production, development and sale of
products, working capital and other corpo¬

—

rate purposes.

Pa:

Office—5119 West Stiles St., Philadelphia,

Underwriter—None.

Wyoming Uranium Corp., Salt Lake City, Utah
Aug. 23 Getter of notification) 9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents per share.
Proceeds—For exploration and development
expenses.
Underwriter—James E. Reed Co., Salt Lake City, Utah.
Zenith Uranium &

Mining Corp.

July 12 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining operations.
Underwriter—Sheehan & Co.,
Boston, Mass.

Continued

on

page

38

&

38

(2786)

The Commercial and Financial Chronicle...

Continued from

To repay bank loans and for new constructipn. Under¬
writers— Tp
be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.

37

page

Pennsylvania RR.
Bids

Inc.;' Lehman

Prospective Offerings

Brothers

$50

merous

or

$100

a

it Kansas Gas & Electric Co.
Dec.

23 it

fi/st

$10,000,000 of

secondary offerings in the past.

Public

Sachs &

Central

Sept. 2 it
between

&

Southwest

Underwriter

;—

Central

additional

shares

of

^

Dec.

deem

$15,000,000

104.52%
for

and

issuance

debentures due

of

accrued

construction

3M>%

1995.

Kansas Gas & Electric Co. 13/15)

an'd

debentures

interest

on

of

$25,re¬

due
1984
at
7, 1955; and

March

Underwriter

program.

sale

Missouri
Nov. 8 it

—

To

be

de¬

termined

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Harriman Ripley & Co. Inc.; Kuhn, Loeb & Co.; Morgan
Stanley & Co.; White, Weld & Co. Bids—Expected to

Inc.

ar

Offering

reported earl#Kregistration of about 110,stock4g
/expected.—Price—May be
per share.
Underwriter—Straus, Blosser &
Chicago, 111.
V;/

(foliowin]

shares held; rights, to expire on
Fef). (
later.
Proceeds—To increase cap

Underwriter—The-First Boston Corp
4tvV"

Corp. of America

"r"

(2/14-18)

Jackson & Curtis, Boston, Mass.■''

■'

Nevada

Power

Co.

7/"^'/*"

common

California Co.
'Southern
>

(1^3)

g

Pacific Co.

'(1/5)

certificates, series ZZ, due annually to 1970,
bidders: Halsey, Stuart & Co.
Inc.;
Salomon Bros. & Hutzler;
Kiddepr Pea body & Co.
(City of)
that

noon

(EST

$8,910,000 equip

meat trust certificates series
PP, due annually to 196
Probable bidders:' -Halsey, Stuart & Co.Inc.; ,Salomo
Bros J & Hutzler; Kidder,

Peabody & Co.

Probable

announced

^

Bids- will be received by this
company up to
Jan. 5 for the purchase from it of

on

trust

20 it

(1/25)

plans

Firs

common

Montreal

Boston

was announced company plans to issue addi
stock early next yearf
UnderwritersHornblower & Weeks, William R. Staats & Co. and

27 it was reported
company plans :to sell at com¬
petitive bidding on Jan. 13 anJssuerbf $3,900,000
equip¬

inclusive.

Bank,

company

named

i i- r-* *>■Southern

was

$8

National

announced

—j^ine, Webber,

c

tidnal

Dec.

Dec.

Co.

N4vj 12 it

^Missouri Pacific RR.

ment

&

Dec| 13 it was reported company may be planning sal
oL$$,000,Q00 of debentures (with warrants). Underwrit

Kidder, Peabody & Co.
Fertff£r& Beane (jointly).
■

be

Sheraton

com¬

ircirtS.

was

New. York./

Natural

000 shares of

it

italjand surplus.

/J;,

(joii

and Merrill Lynch,
Pierce,'
Bids—Tentatively expectet

*

Ripley

(jointly); Smith, Barney

stock

Price—To

petitive bidding. Probable'bidders: Lehman
Brothers;
Blyth & Co. Inc.; Union Set
ftmreoTp.rwhite, weid &
Co. and Shields & Co.

15

for^ach 5 14/15

"

by

McDowell,

Proceeds—To

Inc.

split) to offer stockholders of record'^Jar
25/the right to subscribe for 37,500 additional shares c
captial stock (par $10) on the basis of one new shar

(2/1)

authorized

directors

28

000,000 40-year

Harriman

Co.

Rockland-Atlas
Dec.-

23 it was reported
company plans sale of 60,000
shares of preferred stock (par $100). Proceeds—For
new
construction.
Underwriter—4To be'determined

it Chesapeake & Potomac Telephone Co. of

bidders:

Republic

2-for-l

Beane

around

ar

Expected in first half of 1955.

Dec.

Chesapeake & Ohio Ry.
Sept. 29 it was reported company plans to issue and
sell $40,000,000 of new bonds. Proceeds—To refund its
outstanding $3<851,000 3%% bonds and $2,441,000 4%
bonds. Underwriter—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.

Oklahoma

Co.; Kuhn, Loeb & Co.; Glore, Forgan & Co.

(jointly); Kuhn, Loeb & Co. and A. C.
Allyn & Co. Inc. (jointly). Bids—Expected March 15.

mon stock, probably first to stockholders.
Underwriter
A—May be determined by competitive bidding. Probable
bidders; Blyth & Co., Inc. and Smith, Barney & Co.
(jointly); The First Boston Corp. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers and
Lazard Freres & Co. (jointly). Offering—Not expected
until early in 1955.

Baltimore City

&

ner

com¬

of

Co.

(jointly); Blyth & Co., Inc. and The First
(jointly); Union Securities Corp. and Stone
Corp. (jointly); Lehman Brothers;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬

Corp^

600,000

to

Co.

reported that company plans to issue

was

Probable

Proceeds—

To be deter¬

Boston Corp.

reported company plans issue and sale ol

was

500,000

Service

it

lOO.OOO^jshares of new preferred stock (par $100
Underwriter—To be determined by competitive
biddin

& Webster Securities
.

11

seil

Halsey,
Goldman,

<

C|

Nov.

mined by competitive bidding. Probable bidders:
Stuart & Co. Inc.; Glore, Forgan & Co. and

Dec. 28 company announced it will start a multi-milliondollar long-rangeTexpansion program in r955 to be paid
for through long-term financing which is being arranged.

lpLi

by the

to be dated Feb.
1, 1955 and to mature in 15 annual it
staltoents of $454,000 each from Feb.
1, 1956 to 1970, ir
"Tusive.
Probable bidders:
Halsey, Stuart & Co. Inc
alomon Bros.7&; Hutzler.

(3/15)

mortgage bonds due 1985.

For construction program.

30, 19

comp'any in ^Ehiladelph
noon (EST) on Jan. 6 for the purchase fro
Oi $6,810,000 equipment trust
certificates,'series

it

reported company plans to issue and sell

was

(1/6)

received

be

D^ember

Pa^up to

Co.

(jointly); Kuhn,
Co., Salomon Bros. & Hutzler and Union Secur¬
Corp. (jointly); Glore, Forgari & Co.; Blyth & Co.,
Inc. and The First Boston Corp.
(jointly); White, Weld
& Co. and Shields & Co.
(jointly); Harriman Ripley &
Co., Inc.; Equitable Securities Corp. Bids—Expected to
be received on Feb. 15, 1955.

par

it Blaw-Knox Co.

&

ities

value. Both stock issues a^e
subject to approval of the stockholders. Underwriters—
Wm. C. Roney & Co., Detroit. Mich., has handled nu¬
a

Stearns

Bear,

Loeb &

Air-Way Electric Appliance Corp.
Dec. 6 directors approved proposals to increase the au¬
thorized common stock (par $3) from 400,000 shares to
1,200,000 shares, and to authorize $5,000,000 of preferred'
stock to carry a dividend rate of not exceeding 5%, with,
either

and

will

Thursday,

Texas

Electric Service Co.

(2/23)

r

Dec|20 it was reported company plans to issue and*sel
$17,000,000 of first mortgage bonds due 1985. Proceeds
—T6/redeem $7,000,000 3%% bonds and for constructio

sale of an issue of
$35,000,000 of debentures is planned on the American mar¬
program.
Underwriter—To be determined
by competin
be received on Feb. 1.
ket. It is tentatively proposed that conferences with
in-f tife bidding; Probable bidders: Halsey, Stuart & Co. Inc.
vestment bankers will be held in New York on or
Chicago & Eastern Illinois RR.
about 5 Tl)efFirst Boston Corp.; Kuhn, Loeb &
Co., Blyth Co..
Jan. 10. Probable bidders: Shields &
Sept. 21 company filed an application with the ICC foi
Co., Halsey, Stjart * Ine/jiand Lehman Brothers (jointly); Salomon Bros. &
& Co., Inc.-and Savard & Hartauthority to issue $15,350,000 of 5% income debenture®
Hutzler; ■ Kidder, Pe$l?9dy & Cor and
(jointly); Kuhn, Loeb
-MerriJl^Lyifch,
due Jan. 1, 2054, to be offered4n-exchange, par for par, v & Co., Glore, Forgan & Co. and Salomon Bros. .& Hutzler
}■ Pieece, Fenner7 & > Beane
(jointly); Union Securities
for the outstanding 383,751 shares of class A stock (par
(jointly); White, Weld & Co., Union Securities Corp.
Corp.; Hemphill, Noyes & Co. and Drexel & Co.
tjoint¬
and Blyth & Co., Inc.
$40).
(jointly);. Lehman Brothers/ .v -' • ly |/ Bids—Tentatively expected to be received
was

-

Chicago, Rock Island & Pacific RR.

f

New

Oct. 28 it Was reported that this company may possibly
announce a refunding operation soon which will eliminate its preferred stock.
•
,

Citizens National Trust &
Los

Angeles

Savings Bank of

(1/14)

Dec. 6 it

was announced
bank plans to issue to stock¬
holders of record Jan, 11 the right to subscribe for
200,000 additional shares of new common stock (par
$10)

the basis of two new shares for each five shares
hfld
(after proposed stock split to be voted on Jan. 11); rights

on
-«

to expire on Feb.

14.; Price—$33 per share. Proceeds—
and surplus. Underwriter—Blyth &
Co., Inc., Los Angeles, Calif.
To increase capital

Consolidated Uranium Mines, Inc.
stockholders authorized the issuance

July 23

and

sale

of not to exceed

$6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines
of
America, Inc. stock. Public offering .of $2,000,000 bonds
expected early in 1955. Underwriter— Tellier &
Co.,
Jersey City, N. J.
Dallas Power &
Dec. 8 it

was

Light Co.

(2/14)
reported company plans to issue and sell

$7,000,000 of debentures due 1980.
struction

Proceeds—For

&

Co., Inc. and Merrill, Lynch, Pierce, Fenner & Beane
Securities Corp.; Kuhn, Loeb & Co.
Registration—Scheduled for Jan. 14.
Bids—Expected to

(jofritly); Equitable

(EST)

on

Feb. 14.

it First Bank Stock Corp., Minneapolis, Minn.
was announced
corporation plans to offer 361,922 additional shares of
capital stock to its stockholders

Dec. 21 it

on^ basis of one new share for each eight shares held.
Price—To be determined at time of
offering (stockhold¬
ers

meeting will be held Feb. 16 to

approve

issue).

Pro¬

ceeds—To increase capital structures of affiliated
banks.

Underwriter—Blyth & Co., Inc., New York.
15

sion

for

4*k%

applied

company

authority

preferred

bank loans and

to

stock

to

issue
(par

California
and

$20).

for expansion

P.

U.

Commis¬

200,000 shares of
Proceeds—To re^ay

program.

Underwriters—

May be Paine, Webber, Jackson & Curtis; Stone & Web¬
Corp.; and Mitchum, Jones & Templeton.
Holly Corp., New York
Sept. 9 S. B. Harris, Jr.,
President, stated that
prelimin¬

ary

financing by Holly Uranium Corp. has been
arranged
followed

by a public offering early in 1955 after
Holly Corp. plans to distribute part of its hold¬
of Holly Uranium Corp. stock to its
stockholders.

which
ings

Kansas City Power &
Light Co. (2/15)
15 it was announced that
company plans to sell
$16,000,000 first mortgage bonds due 1985. Proceeds—

Sept.




it

announced

was

company proposes

record

a.m.

(EST)

on

Feb. 23.

Registration

up to
Scheduled

—

to offer to

March

J Transcontinental

Gas

1, next, 511,205 addi¬
tional shares of capital stock (par
$100) ori a l-for-5
basis. American Telephone &
Telegraph Co., its parent,
owns about 69%
of presently outstanding shares.
Pro- ;»
ceeds—To repay
temporary borrowings.' Underwriter

Nov. 24 Tom P. Walker,
President, announced that niext
year's construction •program and replacement of hbnk
borrowings made in 1954 will require financing

—None.

Ms

•

New

•■//77/
York, Chicago & St. Louis RR.

Pipe Line Corp,

been

finalized

1777

during

19^5 of about-$85,000,000.' While
not

'

the financing program

the

company's total long term
dqbt ratio is expected to approximate 70% after the
now

(1/11)

plans to sell $36,003,— financing is completed.- Underwriters—White, Weld/&
C6/and Stone & Webster Securities Corp. v
7.• ? v
31/ 1989. Proceeds
—To
redeem outstanding
•/ Union Trust Co. of
334,166 shares of 6% pre¬
Maryland (1/7)
///:
ferred stock.
Nbv. 11 it was announced bank
Underwriters—To be determined by com¬
plans to offer its stock¬
petitive bidding.
Probable bidders:.; Halsey, Stuart &7 holders 100,000 additional shares of capital stock
(par
Co. Inc.; Blyth & Co., Inc. and Union
used to finance purchase and
Securities Corp,'
enlargement of a plant
(jointly); Smith, Barney & Co.; White, Weld & Co.;
$10) on basis of one new share for each three shares
Kuhn, Loeb & Co. Bids
To be received up to noon
h^ld of record Jan.- 6; rights to expire Jan. 24. Under(EST) on Jan. 11 at 905 Terminal Tower,
IwHter—Alex. Brown- & Sons, Baltimore, Md. Meeting
Cleveland,
Ohio.
./,•/ ;
—^Stockholders will vote on financing on Jan; 4. v. /r""
/^.7/..; .■///••
Nov. 16 it
000

of

was

announced company

income

debentures

due

Dec.

—

North
Dec.

17

stock

To

Penn
it

Gas

(par $5)

be

will

420,000

be

soon

later.

named

I United Dye & Chemical Corp.

Co.

announced

was

offered

Dillon

&

Co., New York.

early in January.
•

Northeastern Steel Corp.

Dec.

17

to

of

common

public, i Price-

Proceeds—To The Post
Publishing ':

Co., publisher of The Boston Post.
man,

shares

Underwriter—East¬

Registration—Expected

(1/20)

it was

announced that company
plans a public
$9,000,000 of junior securities. Proceeds
From sale of
stock, together with funds from private
placement of $6,000,000 of first mortgage
bonds, will be

—

ysed to finance purchase and enlargement^ of
at
Conn.

a plant
& Co.,

Underwriter—Estabrook

Boston, Mass.
Northern

Ry.

(1/18)

$264,annually from Jan. 18, 1956 to 1970, inclusive. Prob¬
Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler; Kidder, Peabody & Co.; Blair & Co. Incorpo¬

rated.

Penn-Texas Corp.
18 authorized capital stock

(par $10) was increased
shares, of which about 220,000 shares are
publicly offered.
Price
From 15% to

by 1,000,000
below

—

the

price

on

the

New

25%

York

the time of

Stock

Exchange at

offering. Proceeds
Of the
approximately
$3,000,000 which would be obtained, about
$1,000,000 will
be used for drilling, exploration
and
additional
chases
other

under

—

the

None.

$1,000,000

will

be

used

uranium
to

finance

program;

an¬

accounts

re¬

of a subsidiary and the
remainder would be
develop proven oil reserves,
including an ex¬
panded drilling program. Offering—No definite
decision
to

yet made.

offering

to

common

7\/>"7/7, './/'V

:

■7/';

.'"'77'"/'

'

& Idaho Uranium, Inc., Kellogg, Ida.
7 f
Sept. 7 Lester S.. Harrison, President, announced that
the, company contemplates obtaining, funds to initiate.,
its" uranium mining operations in Utah
by the sale to the
public of its unissued treasury stock. This financing will
follow completion of the
company's current drilling pro¬
gram.

Virginia Electric & Power Co.
was reported company
may issue arfd sell $20,000,000 to $25,000,000 of first mortgage bonds some time

next

Spring. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Union Securities Corp.; Stone & Webster Securities
Corp.; Kuhn, Loeb & Co.; Salomon Bros. & Hutzler;
White, Weld & Co.
Western

Light & Telephone Co., Inc.
announced company plans to issue and
sell $3,000,000 first mortgage bonds due 1985 and about
40,000 additional shares of common stock (the latter to

■

—

-■

24

it

was

stockholders
struction
&

on

Co. and

licly

or

The

11

l-for-10

basis). Proceeds—For con¬
Underwriters—May be Dean Witter
First Trust Co. of Lincoln, Neb.
Offer¬

in

January.

privately, depending

Westpan
Dec.

a

program.

ing—Expected

pur¬

corporation's

ceivable

used

an

subscription privilege)^ -About 150,000 shares are pres¬
ently outstanding. f. Price—$9 per share. ■ Underwriter—

Nov.

be

authorized

Nov. 1 it
Pacific

000

to

directors

■

v

Bids will be received by the
company up to noon (EST)
on Jan. 18 for the
purchase from it of $3,960,000
equip¬
ment trust certificates dated Jan.
18, 1955, and due

Oct.

8

stockholders of additional common stock at the
rate of
oiiewaew share for-each five shares
held (with an over¬

,

offering of

Bridgeport,

Sfept.

TjLltah

^

sell

ster Securities

to be

19

stockholders of

11;30

'

able bidders:

General Telephone Co. of California
Dec.

its

con*-

Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. &
Hutzler; The First Boston
Corp.; Lehman Brothers; Union Securities Corp. i and
Wertheim & Co. (jointly); Kidder, Peabody &
Co., Blythprogram.

be received up to 11 a.m.

Oct.

England Telephone & Telegraph Co.

it

Bonds
on

Hydrocarbon Co.

was

may

be

sold

pub¬

market conditions.

|

(4/15)

i

reported Sinclair Oil

Corp. will ask for

bids for 384,861 shares of Westpan stock about April
15,
1955, if it has not been able to dispose of these holdings
before that date.
Underwriter—Union Securities Corp:,
New York, underwrote recent sale of Sinclair's
of

Colorado Interstate Gas Co.

v

holdingst

Cf

J

^Volume 180 vNumber 5390 ...The Commercial and Financial Chronicle

39" >

(2787)

*

I Continued

sales.

from first

""1

page

Many contractors

ding jobs at
their

A Midwest Banker Looks Ahead

few industries

a

bid¬

are

under cost to keep
organizations intact.
Quite
or

are

overproduced

and must slow down until demand

picks up again.
the

huge backlog of construction
h-Vork of all types. Research has
.created

fields

new

of

most

the

by
new
better; methods
of

labqr

cre¬

machinery

ated

Lines

and

in

industry.

(relopments

the\ older
Sucn

atomic

as

absorb

to

si^-jdIus

de-r

new

plas¬

power,

tics, glass fibers, antibiotic drugs,

the-

aviation

activities,

and

other

tnany

developments

new

,„Jiave helped to keep

downward. Today,
i'M reversed,

situation

business

able

predicti®is

side

ir

and

The action

< I

ket

reflects the

j

s

the-^j

j

good

dicts

on

the stock

in

bus

investor

jtess

months.
In

toe

past

been

has

up

Since

las

1930, then

than

been

in

disp<

increase

of

only*; 120%

purchasing

new

Because

favorable

of

of

t'

financing,

large

a

ning expansion.
panding

^

spend

The rapidly

ex-

industry will
than $1V2 billion on

more

the

in

new

Motor manufacturers

ing

plan¬

are

chemical

iconstruction

•

percentage

manufacturing plants

r

year.

expand¬

are

modernizing, and plants
do with the building

and

having

to

*

grades are spending millions for
;] Enlargement and better proaucts.
typical of this is Lone Star Cepent Company, that plans to
spend

million

$14

expansion
Jric

a two-year
Union Elec-^
St.
Louis
is

on

program.

Company

of

spending $33 million on an atomic
energy plant to be run by Mallin-

i

krodt Chemical Co.

Ohio,
.'

Union

ground

for

turn

to

In

Ashtabula,!

Carbide

$32

a

broke

millidn

titanium

out

in

plant

sponge.

ing

this

sale

of

the

of

the

transportation, utili¬
ties, and pipelines—to say nothing
billions

national

the

to

defense.

It

government

to

$20

billion

for

spent

is

will

a

estimated

$15

spend

for

year

military

for

years

£>e

hard

some

goods.

Then, think of the vast amounts

-io

be

(expended

toll

on

roads,

highways, bridges, airports,
parking facilities, a large
part of which should be financed
super

•and

by

the

sale

of

bonds.

revehue

; .Experts say that expenditures for

hospitals, schools, sewers,
.waterworks, will run over $100
/"-billion the next few years. The
-roads,

.physical volume of road Jbuilding
this year will be only 40^Nabove

r

j
I

1930;

but cars,

have

L

doubled,

traveled

cates

are

trucks,
and

This indi¬

long and continued road-

a

building program.
Then, recollect
be spent
river

miles

total

250%.

up

buses

and

the

work,

initial

out-

? days for the St. Lawrence Seaway.

l

pefense orders

1
c

duction

is

)

have
not

,is

rolled

obtain.

demand

companies

U. S.

he

output next

.

are

in

year

has

to

stated

see

the

from 5 to 10

up

Glass and plywood

short supply;

loadings

now

gain
Chairman

Steel

expects

../million tons;

are

considerable

a

of

.Fairless

of

sheets

general
heads
of

that

production in 1955.

'publicly

pro¬

So

.forecasting
an

re-

80%

to

cold

steel

many

t

4.;

Steel

to

steel

been

be

employ-

or

75%

again

hard

are

railroad

car-

picking up; and the
Pennsylvania, the country's larg¬

.

.

est

J

will

and

^capacity,

„

but

and

up

^fleeted in production
Iment for some time.

}

t

1953

over

year

'^-rstepped

were down for the

'

are

railroad, is in.the black again.

The government has provided a
favorable
atmosphere for busi¬

Some

ness.

tax reduction, gov¬
economies, and an ample

ernment

supply,

money

together

friendly

attitude

ference,

have

inflation

and,

maintain the
dollar

and

helped

the

with

less

a

inter¬

in

halting
to nearly

at least,
buying power of the

last

year.

A

talk

year

of

ago

at

recession

this
was

and many key business

including

industrial

time,
in

the

make

ment.




wilL

the

Jany October in

ffl

-r

nowJ

and

the

grow¬

Increased

mergers.

and

relieve

What then

its,

have

merged, with

good I resuits in that production has been
shifted from less efficient to the
Now

how

has

been

—

business

affected

banking

and

and

par¬

floods

more

3

billion

Un¬

vill^see

picking

interest

their

of

is

and

generally

estimated

bushels.

This

is

at

still

a

crop;
and
the soybean
which is growing more im¬

portant
is

day, is

every

record.
still

the

largest

The Southwestern

short

area

of

water; but recent
helped wheat and fall

have

are

now

reason¬

314%
a

and

up,

the

looks

credit

stable.

is

intensified,
pressure being

more

is

the

time

their

for

bankers

and require

guns

sonable

terms.

business

handled

credit given

This

to

directly and to

notes.

Everything costs more today,
and
we
are
financing at much
higher price levels. Many homes
have doubled in value the
past
ten

»Television

years.

much

years

travel

You

ago.

wants

can

than

more

an

business.

better prod¬

doubled

Morgan Offers

is

offering

speculation"

"as

publicly

issue of

an

a

1,000,000

shares

of common stock (par 10
of Loma Uranium Corp. at
$1.25 per share.

cents)

The

net

nancing

proceeds from

this fi¬

to be used largely for

are

exploration
and
development
purchase
of
mining and
transportation equipment, reserve

costs,
for

acquisition of additional

prop¬

erties and for working capital and
other

general corporate purposes.

Uranium industries

even

.^and services and is willing
pay for them.
The automobile

has

with

1954
on

cost

ucts
to

of

Peter Morgan & Co., New York

City,

the
world
today
for it in instalments later.

consumer

end

Loma Uranium Shares

around

and pay

The

sets

than the radio sets of

more

'few

the

Peter

rea¬

applies

to finance companies

customers'

confidence

greater

optimistic outlook

lengthen terms and
down-payments.
Now,

this

and

stocking increased inventory.
That is why I think we can ap¬

proach

to

adequate down-pavments and

on

in

present

more

dealer mortality has been
high in
both
the
appliance
and
motor
fields recently, so it seems to me
that

people feel richer and like spend¬
ing more money. It is encourag¬
ing the purchase of more expen- .j
sive gifts.
If merchants have^a1*
big holiday season, it will mean
reorders

seen

Consumer

return

there is

corn

short

were

crop

of

have

we

competition

extended

a

corn

huge pasture, which

a
works

;

and

and

years

bumper
crop,

rains

Sending?

s

we

several

crops

the

good

was

governmental

doubtedly,

for

hay

on

strive

the

at

South¬

thoroughly

scorched

to' jsee the govern¬
for^ i continuation of
relatively easy'predit and .freer

ment

droughts

many farmers there lost

water,

be

and

time. Even though the
western area has been

same

and

than

natural

have

rate

sections.

to stick by

productive plants.

more

we

would

is

lower

Many firms, be¬
declining sales and prof¬

having

of demand,

care

prime

recently

many

most

of

yield
214%

were

slight break in government bond
prices, and demand is better in

economy where the best fitted
and most aggressive will be the
successful.

to

par

long-time

assured.

just

and

the

unemploy¬

the

an

1956,

sejf the government

and

Sales

cause

below

the

difficulty taking

will make the struggle for volume
and profits more keen and create

year,

elation

effort to bolster the

every

economy

in

price

Offering Completed
The

recent public offering of
3,000,000 shares of common stock
(par one cent) of Uranium Indus-*

tries,

Inc, at

10

cents

share

per

the past two decades, and yet the
motorist is not satisfied with any¬

has been completed, all of said se¬
curities having been sold, accord¬

thing except the latest improve¬

ing to Petroleum Finance Corp. of
Oklahoma City, Okla., and Farrell

pullic
com¬ ably
good
throughout the area.
bining Federal|istate, and local Nearly a million head of stocker
appropriations. Axes undoubtedly and feeder cattle and calves went

ments.

will

tious credit policy, as in most lines,
credit terms and down-payments

speculation.

have

ing

of

program

remain

program

cies.

by

pj

lost

was

Every

of

trade

to

encourage

m

to

an

&

of

It

easing
to

seems

tha~FHA

permits

little

made

be

alscP look for-

can

tinuation

which
with

present poli-

fnt

present tariffs
we

in

people»look

will

rt

eff<

govern]

foreign
that

popular

>ven

election^

the

of

Since the farm

higl

continuath

a

a

me

con¬

legislation

long-term

loans

down-payment,
which
has
undoubtedly had a
sustaining effecl on
residential
or

no

T|h

construction.

tremendous

e

postwar building! boom has made
us

national

a

57%

of

jflood

of homeowners,

families/

homes.

own

of

now

Evgn with the great

building

increase

as

their

own

the

$)een
vacancies.

theiir has

years,

in

past

few

material

no

into the feedlots of nine
reporting
Gorn Belt states in October, and
it

looks

now

between cost of replacement stock
vand the selling price of slaughter
steers'..

than

Both

last

the

feeder.

per person

annually. Dairying has
profitable this year and

been

should

continue

farmer,
man

in

slowly lest the longer-

move

would

credit

much

short-ternrr-credit
business

to

The

has

in

rise

essen¬

expansion

and

spending

consumer

significant

been

so

too

n!r

development.
•

absorb

stabiliz¬

in

the

somewhat better off than

Perhaps this will result
increased demand for leans

the

rural

and

have

perhaps

needed

sunk

business is

to

unusu¬

picking

credit

more

up;

will

be

finance replenishments.

great deal of credit is being ab¬

sorbed

for

new

roads, residences,
and public buildings.
The motor
manufacturers are getting readv
for another big year, which will
increased

mean

consumer

credit

Automobile

credit

ing retail sales in recent months.

operations.

Because of

comprises about 50% of all instal¬

have
a

not

this,

developed into much of

problem.

forward
sales
of

the

Retailers

tax

Curtis of General Motors recently

income.

predicted

laws,

consumer

is

certain:

buying

the

more

In

are

the

con¬

power;

and

the

inheritance

5%

top

spendable

1946,' it had dropped
and is still lower now.

to

a

to

outproduce
demand

and

the time being.

have

and

18%,

borrowers

rates

were

the low

seen

for

rates

the

prime

large

to the

amounts

market

open

considerably

rate,

the
Many of these firms that

prime.

under

paying 3%% in June of 1953

However, all business, including
banking, is plagued by the specter
of rising costs and increasing com¬

have been

petition.

rates

essary

In retail lines, it is nec¬
to do more business in order

to maintain

profits,

enjoying a rate of 134%
to iy2% on the open market, al¬
though other commercial loan

Income

has cut

cases

lower

profit

a

margins;
discount
houses; super-markets; self-serv¬
ice; and, in the automobile busi¬
ness,
through auction lots and
used car places handling new cars

large discounts.

the

100

tions,

based

earned

of

retail

largest

only

an

on

Last year, the
trade organiza¬
reported

average

2.2

on

-net

every

sales,

after

dollar

tax

of

the

desires

new

develop¬

air-conditioning and

as

colored, television,
vending, and

The

As

great

men,

Great

factory

and.

more

machines

homes.

our

automatic

coming

we

been

industries.
machines

see

will

replace

be¬

made

thereby
the

creating

10

the

to

lines

new

to

great

manufacturer

cost

Frequently,

developed

from

men,

created

by

than absorbed this

labor saved by

machine operation.
During all this period, deposits
have been ircreasing everywhere
and, until this year, the buying
the

of

power

dollar

declining

so

that the banks have been able to

interest

return

of

from

securities

in'

most

carry-over from the

1953

and

agement in

better

higher rates

money

living can be financed
by bank loans over a reasonable
period.

Think

how

of

loan business

your

people

much

limit

no

to

genuity,
of

human

and

rather

these

limitless

a

than

There is

desires

upon

built

be

of

is , based upon

want

what they have to have.

ing.^ On the whole, bank earnings
should be slightly ahead of last
Interest

rates

are

sensitive

or

in¬

longest

and

factors

Merchants

have

improving daily,
past

above

reason

Business
few

last

increasing

exploration

work

on-

weeks

have

Mountain and other claims and for
rate purposes."

c^er..corpo-

~

DIVIDEND

NOTICES

INVElflNG FoMPANY^

CITY

BROAD STREET, NEW YORK

25

The
on

of

Board

December
20c

22,

of

1955,

1,

ruary

close

Directors

share

per

Stock

mon

the

of

of

4,

this

1954, declared
company

EDWARD

January

on

FRAHER,

Com¬
Feb¬

record

14,

Secretary.

BOARD CO., Inc.

Common & Preferred Dividend:
The

Board

of

Directors

Federal

of

Paper Board Company, Inc. has this
day declared the following quarterly
dividends:

share

per

Common Stock.

on

50tf per share on the 4%

Cumulative Preferred Stock.
Common stock dividends

January 15, 1955
record

at

to

are payable
stockholders of
January

the close of business

3, 1955.
Dividends
Preferred

on

Stock

the
are

4%

daily,

and

Qrmullative

payable~April 1,

1955 to stockholders of record March

24, 1955.
Robert A. Wallace,

Vice President and Secretary

increased

this

what

rings

cash

to

the

this,

OTIS

is

earnings

ELEVATOR

That's
register. In

year.

COMPANY

the buoyancy of

the stock market has made many
Common Dividend No. 191
HELP

WANTED

Common Dividend No. 192

Security Analyst Wanted
by

New York

firm.

alert,

Stock

Excellent

opportunity for

industrious

between

ages

Exchange

of

young

30

and

man

35.

A dividend of $.625

plus

dividend of $.50 per

share

no

par

an

extra

on

the

value Common Stock has

been declared, payable January 28,

1955, to stockholders of record at
the

close of business

on

Supply background, experience

January

3, 1955.
Checks will be mailed.

qualifications

in

writing,

H. R. Fardwell, Treasurer

New York, December 23, 1954.

at

1955.

FEDERAL
FEDERAL PAPER

Y.

dividend

a

payable

stockholders of

business

N.

company

the outstanding

on

the

to

of

been

Employment

Bpx F 1230—Com'! & Fin'l Chronicle

314%

and

Temple

sales

Remember

government

proper¬

is

retail

year.

a

exercise

to

be

and

have

addition

to

sentiment

18 months ago we saw the

time

as

equipment

for

pay

volume

statijag salary desired. Address,

change fast nowadays.

—ji^st

used

and

year.

City.

December 14. 1954

optimistic.
the

be

acquire certain

production, jobs, payrolls, and

man¬

keeping funds work¬

to

better

on

is above last year, reflecting

ties,

keep up with loan demand com¬
fortably; Nearly all the requisites
of

York

offered

However,

business

more

to

were

option to

to

human desires and better liv¬

ing have

New

lowered

a

consumer.

of

35

that

saving

and

of

were

working capital and

is

along these lines in chemical
plants and the automobile and
airplane

Co.

shares

The net proceeds of this financ¬

effected.

are

have

These

a

the

savings

Securities

reality.
place of

more

take

strides

automatic

and more mod¬

new

fixtures for

ern

limit.

personal loans have held up well.

competition
prices and profits through
as

and

the

to

loans.

money

of

stretched

have

ing. such

can

expecting

Top quality loans

commanded

have resorted
at

Harlow

1954.

Perhap^^ve have
in

are

banner year for G. M.

in 1955, and Ford is also

of

income after tax.

By

of automobiles

time payments.

on

of

income receivers obtained 34%

total

bought

and

wages

buying power is
widely than ever

1929,

tion, and 75%

We

what

because

higher
income and

before.

na¬

continued

of

spread

the

optimistic

has the

present

in

extended

a

higher

because

credit

are

thing

sumer

ment

looking
rise in

to

and

One

inventories

excess

been

new

communities..

Inventories

A

—

and the cattle¬

as a group,

are

credit

term

So

so.

1953.

term
will

consumption

an
all-time high in 1.953,
recently we have been con¬
suming beef at the rate of 80 lbs.

ally low;

but

Beef

all these factors add
the banks' preserving a cau¬

encourages

reached

desire

long-term

higher

are

which

and

in c/an

,phift more short-

prices

year,

Probably,
up to

same

slightly larger than a year ago.
The feeder purchasers are encour¬
aged by the reasonable margins

their

into

though the cattle

or

in

to

as

feeding volume will be the

Secretary Humphrey and Under
Secretary
Burgess have stated

air;

indicators,
production,

for

will probably

at

'

was

between

f^ood controls,

the

and

to

money

8%

Presidential

tial

dams,

on

liv¬

are

save

years.

for

expand

OxM people

highest

nine

the last

to

wnole-

competition is

ing number of

and

in¬

of

capacity, intense competition, and
greater pressure for higher wages

gov#nment's cost of'

Amerii

U.

Fontaine-

jbleau Hotel is shooting skyward.
lVTany billions more will be spent

in

an

creased

confirmation

and

year.

In Miam;,!

million

income,

During October,
S. Safings Bonds

of

zenry

spend $25

$14

new

260%

a

Another

selling

break 90. Most banks

seemed

s|ving more. As
ticularly in the Midwestern area?
compared to savb fgs of 4% of disWe are living in a big country;
posable income
1939, the citiand, fortunately for u§, we can

pillion for expansion.

.r'jthe
.

the

better

Kaiser AluminQm will
f;

ible

prices,

andjja rise of only

deprecia¬ living index.

tion factors and favorable terms
t i of

prices,

93%

power.

sale

income

years,
re

increase

creating

future

for

our economy

thereby

mar¬

>nfidence of the
uture and pre¬

"from slipping and absorbed labor,

\

witn
the favor¬

jicators pointing

up.

frozen foods, improved fertilizers,

'enlarged
1

pointing

were

bond

3.29,

40

(2788)

The Commercial and Financial

Chronicle... Thursday, December
30, 1954

vestment

BUSINESS BUZZ

make

Washington...
A

BehindInterpretation*
from the Nation'*

Capital

JLA.

funds

the

of

national;

obligations

of

the-

Home Loan Banks eligible se¬
curity for 15-day advances from

7

the

Federal

Reserve

>

Banks.
t

gJj

~

of

banks. Finally, the HLBB would

tfCome

I l/t.A/

JL \J tv

And

Now

Get It

is

the

time

for

every

jt&ppd citizen to

run to the FedHousing Administration* to

../.MKral
i.

WASHINGTON, D. C.—Little

sudden

in

the

in fiscal

and

expected

by

a

of

way

give

shift,

a

spending (policy is
most

observers

of

consequence

the

This

demon¬

be

unpopularity of "collec¬
tive security" with the French
If

:

,

the

Eisenhower

tration

to

were1

Adminis¬
to

come

knowledge to itself that its
cherished

i
-

i

was

vent the

most

the
,,

the

toward

party

col lee-*

which

the

of

than

to

was

soon

1

great surprise,

]

as

a

new

change

probably,

formal
the

in

would

laboration

away from

the

labyrinth of widely diffused, dissipated, and extensive
foreign commitments.
However,/ Congress; is controlled

by

the
the Democrats

attempting
failure

are

to

of

the
to

fairy tale
rity" into

of

:

make

•

-

.

the

Democrats

-•

J

."isolation¬

the

and

main

of

cause

"international

co¬

operation" by sharp contrast the *

certain way to

and

peace

secu¬

rity.

..

And

implied

commit¬
of the Eisenhower
Ad¬
ministration to the skeletal
forms and trappings of interna¬
tional
cooperation
are
enor¬
ments

mous. It is a

heady experience,to
foreign
Kings, Princes,

Queens

and
Mother
Prime Ministers and

Queens,
Emperors,

making pilgrimages to the White
House at the clip of
twice a
a

It

things, perhaps,

man's ego. and he
may*for¬

get that
to

does

basically the

extend

errand

a

foreign hand
stretched, palm upward.

<

Furthermore,
ment

that

an

is

"collective

security"

not,
as
Congresswoman
Church once
remarked, provide
either security or
collective ac-"
tion,
would
force
difficult!

revolutionary

—

—

quickly,

more

Even

have

not

.

called

paper

situation

would

or

•

additional

steps

taken

the

and

treaties,

ment

have

obviously doesn't
the

fight.

On

hower

be*

Parlia¬

the

Administration
to

to

ists

They

Germany"

attempt to
until
they

learn

Germany

may

that

want

to

the

drearqs with
side and

a

-

.

for

seas

-

the
.

to

on
on

narrow

late

five

'

,,

ad¬

years

Senator

-

Taft
_

background' to the Oves,
Writers

Club,

a

was

-

minded

could

more

you

of

group

one

outlets

economic

for

key

activities.

U.

It

So

much

is

renewal/by

semi-permanent
given

periodic
Congress that' a
a

great deal of time is taken with
this action. In

have this

calls

economic

strains at

!

youth

upon

greater

Or. the

for

Among the expiring acts
the

Defense

which

Production

gives the

Office

of

the fact that it is
world and there is
acts

of

to

uncertain

no

....

insurance

of

,,

.

loans

treaties, alliances,
Congress which can

Small

be

may

Busi¬

Act

also

taken

for

granted that Congress not only
will renew this
agency's legal
existence, but grant it more
funds.

,4

Charting

a Course for Tariff Pol¬
icy—A Digest of a Statement on
National Policy—Committee for

,

.

Administration

sources

haveH

already indicated they want

Economic

an

law expire
S

:

Home

Domestic

Loan

Bank

for

-

use

of

S

&

L

shares

wants

&

to

that

made

lawful

public

S

funds,

inc?

and

Employ

are

Airlines

Capital

Airlines, Inc»
Beecken & Asso¬

G

Street,

in

&

L

tivity

N.

W<e recommend

shares

for

the

—

John

P.' Troxell

Association
of

America,
.

New York

Foreign
~

be
for

.

in-

the

of

United

17

N. Y.—$1.00

States, A

—

at

Clarence B.

Randall—University of Chicago
Press, Chicago 37, 111. (paper)

the market

CAPITAL STOCK

a

real

GROWTH Company (Electronics)
•Earnings
Net Earnings

per share

$3,229,917

$211,364

$0.61

7,453,983

614,012

2.26

15,923,380

526,494

1.82

1953

34,377,128

1,085,502

3.54

1954

37,143,000

1,496.000

4.53

1951

1952

Carl Marks
SECURITIES

SO BROAD STREET

TEL:

&

Co. Inc.

SPECIALISTS

NEW YORK 4, N. Y.

•

HANOVER 2-OOSO

TELETYPE NY 1-971

•On

an

Increasing number of shares yearly due to stock dividends

¥

m

LERNER 8 CO.
Telephone HUbbard

Square, Bostqn, Mass.

2-1990
•

■'
v

,

-

Trading Market for Brokers and Dealers

10 Post Office

f.

for the

CAPITALIZATION: 330,397 shares Capital Stock

This is

of

Street,

Economic Policy

United

Na¬

States

East. 48th

2

—

Manufac¬

W. L MAXSON CORPORATION

improve

W.,

per copy

Understanding and

turers

mu¬

investments
and

ee

tional

^permission

invest

,

to

Fi¬

.—

Teamwork for Greater Produc¬

for

nicipal securities, and to permit'
them te buy housing and hous¬
ing sites. It will also be pro¬
posed

on

their

Board
L's

Industry

American

Henry
ciates, 1333

-other investment purposes.

S

state¬

rates

Washington, D. C.—$20

investments and also to broaden
the

to

—

these

broaden

to

full

bulk

Airline

jerence

■

bid with Con¬

a

permission

associations

each;

nancial'study with special ref-/

Congress meets

new

pected to put in

for

copies of the
25c

request

For

Board, *
which
supervises the Federal
-savings and loan system, is ex¬
gress

Y.

ment

Diversification
When the

N.

tional

April 1.

L's Bid

&

Development^ 4 4 4
22,
(paper)—Single copies
without charge—Up to 25 addi¬

Madison Avenue, New York

'

extension of the higher rates of
excise and corporation income
/taxation which
under present

De¬

Mobilization, the materials
stockpile, and power to allocate
raw materials, their legal standjng FHA'S Title i providing for

system of




It

fense

.

the

Sales

could

an

international
or

and

up

this date

Administration

•expires.

Man's

,

30, 1955.

.

FOREIGN

"reappraisal"

On

June

1950

home.

involve simply the
facing

is

Act,

S.

service,

stresses

Business

in

greater

An

—

Congress

might

lacking, with

No!

—

chore.

building up a greater U. S.
military force as the support
of foreign powers
was acknowl¬
as

I

.

ness

for

mean

edged

of

after¬

planning. It would mean with¬
drawing foreign aid and the
support
of
important foreign
market

a

Will Hit New Congressv

will again

an

watch?

The

legislation

hostile Russia

around

behold.

Taft

1955,

made

<t,

opinion

the

Expiring Legislation

Department's

France's distaste of "collective

by

something

their

in

journal¬

ward.

the other.

dress

was

gentlemen

blocks.

Taft Was Far-Sighted

ago

hostility showing

of the

"rearm

finally
will not

security" calls to mind

A

modernize houses, also ex¬
pires. The terminal date of both

the

expect of Taft anyway,"
the
audience
observed

hostile France

a

if

would

thinker. "What

some

play Little Dutch Boy
State

hand,

invading Russia, the

an

depraved,

be

can

other

column

The
eyes

Eisen¬

play with

collective security

more

one

many

want

the

he

would

ever

utterly
paralyze France's military ef»
fort, with such a large minority

In

meantime

that

hostile to collaboration.

those steps.

expected

to

„

little

to

French

said

France's Government
attempted
to
put
the
nation
into
war

latest

be

He

a

munist-sympathizing,-

Fifth

the

views.)

^and

Taft

third of France's
Communist
or
Com¬

against

changed. After ratification

Senator

just

doubted that France

Eisen¬

to ratify the

—

clock!"

acts

doubtful.

nearly

row

of

back

was

voters

golf

margin

De¬

far

it

had the effect of causing
the French Assembly
by a nar¬

pieces

part

State

with

rejected

President

most

the

peared

than two years.

if

the

to

foolhardy to
base a system of
security upon
France, and without the help of
France, continental action ap¬

been

hower's wrath from the ninth
tenth hole on the Georgia

-

acknowledg¬

does

changes

ratified

out¬
•

That
said

selling

May 1952 when
formal., pieces
of
paper
known as EDC were first writ¬
ten. For if the
people of France

In

the

week.

experienced

it would

for

sympathetic

since

it,

me

partment's policies.

tangible marketable
been

take

Eisenhower Committed

journalists

France with the
"collective secu¬

every
would have

short

own

Broadbottom and Bubbledome

they give

,

course

who invented and sold the
myth
that what was called
was

years with

do

col¬

commodity

secu- -

a

largely

what

alarm

international

by

were a

after

the

tangible force for
the
security,
of
either
the
United States or the world. For
was

"Twenty-five
and

toward

wanted

on

Eisenhower

"collective

"collec¬

the

handicapped

Administration

rity"

it

and

capitalize:

S.

the "Chronicle's"

,

skepti¬

trader

'

<

Democrats

U.

•'

;

pretation from the nation's Capita
and may or may not coincide
with

armor

Senator ?.

his

so-called

If .positive

dis¬

more

,

late

in

" i

,

(This column is intended to re
fleet the "behind the scene" inter¬

France Long Opposed

rejec¬
package of

be

the

Wrong

heating system is in
replacement,"

FHA.

the

French

latest

admit

toward

"your

just go to Uncle Sammy's agent,

tive action."

of

liave

or

done

coopera¬

angel in shining

an

Taft

treaties,

to

was

cism

of

ism"

need of repair or

been

apparently
come
a
would * involve
great

;

come

wars

moded and drab kitchen sink,"

had

living political necks.

'

in the

violent

a

posed than the Eisenhower Ad-.1ministration to move

it

had

fash-

faith

Congress

the

the
nasty
the President to

international

'

would

event

the

than

or

that

en-

such

in

all

internationalism religion.

ioned

tion

effect

„

maybe a fellow could
low-cost FHA loan where

a

are
lower
than* in
other areas, Or "if your income
is limited" you can do it.
And
"the
terms
of
FHA-insured

Eisenhower's
followers
would
easier admit that Harry Truman '

tremendous

are

ad¬

section

mortgages for the purchase of
existing
properties
are
more

cropper,.
risks for

political pressures

have

forcing
So

and

One

one

liberal than they ever have been
before." Or if one has an "out¬

(other,

tion

under

FHA

standards

debt

or

issue.

one

that

four

are

announce-'

solvency

isolationists)

tive action, and if he does then
iKO something violent in the-way of
t
~ a
change could be expected.

However, there

get

nation

radio

"radio

government. ";
caSekfor either political

In any

admit

personal

world,

guarantee
their

predict that
President Eisenhower may not
finally be disillusioned about
of

of

spot

in

vertises

peace and pros¬

the

to

limits
of

to

dream-world

the

rela¬
many

instance, there

ments

pre¬

autocratic

constitutional

a

make

blessings of

perity

.

not

For

proposed

about
alcohol,
an
United- Nations charter
bring

by foreign and defense policy
to the tune of nearly two-thirds
of the budget.
" \
is

itself

an

"public

Among its

policy.

activities are
proposed
spot announcements."

temperate

because fiscal policy is dictated

This

would

American

by

coming of

amendment

something drastic in fiscal pol¬
icy might be expected. This is

>

the

can

aggressive

new

tions"

obviously
for

government, :

"collective
chimera, then

a

difficult

constitution

ac¬

;goal; of

security"

latter

people to take, with their pen¬
chant for believing in formal
documents, such as that a written

•

,

/

great uncertainty.

as

strated

nation.

get every one of the hundreds
of benefits possible. FHA has a

guaranteed promise of
in the face of such

a

security

Teletype BS-69
k

•

-

■

:

-

.

-