Full text of Commercial and Financial Chronicle : February 10, 1955, Vol. 181, No. 5402

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ESTABLISHED 1S39

B 14
195

The Commercial

Financial

Reg. D. 8.

Volume 181

New York 7,

Number 5402

EDITORIAL

now

evident that

one

Price 40

N. Y., Thursday, February 10, 1955

And

of the serious issues

people at this
this year and
in the years immediately ahead upon defense and
how we shall spend it.
There is, of course, a
political element in current arguments, and the
Pentagon plainly has not been able to divest itself
entirely of its departmentalistic thinking.
are

Are

Opportunities

Burns attacks

idea that nation

has

reached

Contending that,

stage, with limited opportunities for new private invest¬
ment. Gives data on postwar trends that indicate we still
have

thirties

eration

extends further than

now

and there is

ago,

momentum

a

the

to

few

economic message to the Congress.
current conditions and set forth

current

enterprise

the root of basic deci¬

go to

sions which must be reached
ters

as

such

as

the nature of
that in which

far shall we,

how far

our

such mat¬

concern

best defense in

we now

ment has

world

a

ment

find ourselves. How

can

as

its

DEALERS

Convention,

create

are

afforded

undertakings in

a

few

montns,

recognized

potential laymen invest¬
before we ta'k of
stocks, we must note that a

investment

your

upon

One

item

other

in

the

general

background might be mentioned be¬
fore

at

page

kind

a

of

they

exist

kets

A thriving economy
on

proceed

we

to

look

invest¬

at

ments themselves and that is to look

Dr. Arthur F. Bums

today.

construct

what

26

as

hierarchy of yields

a

James A. Close

follows:

Savings accounts, 2.00%; savings banks, 2.50%; mar¬
ketable
government
bonds,
0.90%
to
2.99%;
AAA

Continued

dealers and

Underwriters,

now

on

page

22

investors

iij, cor¬
with the, SEC
"Securities in Registration" Section, starting on page 36.
—

as

the investment mar¬
In fact, it is possible to
yield hierarchy some¬

in

1955.

complete picture of issues

our

next

plan is first pred¬
having adequate
life insurance and adequate savings.

by Dr. Burns before the National Automobile Dealers

Chicago, 111., Jan. 31,

the

inadequately

However,

icated

and

prosper.

respectable in¬

many

sound

free

real

in

been

ors.

A nation succeeds and prospers only

NOW IN REGISTRATION

porate securities
and potential

•by

no govern-

people succeed and

♦An address

SECURITIES

itself

of

gains

have

Continued

26

page

nation,

lasting prosperity.

depend upon allies?
In what degree shall we apply our resources to
the building up of military strength in other
countries upon whom we rely for support in case
on

a

are

but rather to more basic factors that

constructive part to play

a

lure for investment.

a

today and the prospects of cap¬

ital

tp

in the affairs of

can we,

Continued

ket

generate
economic
growth is based on the accumulated
experience of generations.
History
has taught us that although govern¬

armed services to defend claims for funds.

as

Stresses

stocks.

common

stocks

This statement relates not to the level of the stock mar¬

common

the capacity of

company

large part of

a

vestments in which laymen can invest with confidence.

people.
in

insurance

an

is that common stocks

My thesis

a

growth. It also summed up
economic philosophy
by reaffirming his faith in the ca¬
pacity of an economy based on free
and competitive enterprise to create
new
jobs, to increase production,
and to improve the living standards
our

common

This report reviewed

President's

This faith

of Mutual Funds in

high yield of

annual

economic

of

well

common stock;
(4) pension and
profit-sharing plans that are invested to an increasing
extent in common stocks, and (5) the accelerating in¬

governmental program for sustained
the

as

now

premiums received in

gen¬

his

are

selling deferred annuities by investing

vestment

days ago the President submitted

stocks

stocks; (3) the instance of

mon

business recovery.
A

common

and practice regarding institutional investments;
(2) the permission given savings banks to purchase com¬

expanding economy. Says neither the theories
prescriptions of economic policy during the
are suited to present conditions, and asserts the

businessman's horizon

the basis of yield hierarchy

on

factors,

law

an

the

nor

since the end of World War II for the

topics which

:

respectable
investments in which the layman can invest with confi¬
dence, Mr. Close gives as reasons: (1) changes in the

mature

a

other

as

.

Other

Respectable

Vice-President, Merchants National Bank & Trust Co.,

Pointing out that no government can, of itself, create
real and lasting prosperity, and therefore a. thriving
economy depends on the enterprise of individuals, Dr.

general lines of cleavage. One of these involves
division between the military and the
civil elements in government and the nation. It
has been too long the habit of the military lead¬
ers to
try to get all the funds and resources they
can on the theory that the civilian
elements in
government will always try to give them as little
as
may be. On the other hand, a feeling has developed in this country in the past decade or two
; that the effectiveness of our defense preparations
is to be measured by the simple test of how much
money we spend on them. The New Deal notion
; that
extravagant or even wasteful public expen¬
ditures are not by any means an unmixed evil
—indeed, may even often be a blessing but little,
if at all, mixed with evil—has definitely made it
ever

Copy

Syracuse, New York

the old, old

easier

a

By JAMES A. CLOSE

Chairman, Council of Economic Advisers

profound issues and more

more

Cents

Common Stocks

By ARTHUR F. BURNS*

before Congress and the American
time is how much we are to spend

But there

u*m

Pat. Office

Economic Trends

As ,We See It
It is

'SIMESs

registered

State and

in

Established

U. S. Government,
Stale and

Municipal

Securities
telephone:

HAnover 2-3700

chemical
CORN EXCHANGE

NATIONAL BANK
of INDIA. LIMITED
Bankers

to

DEPARTMENT

ST., N. Y.

STATE

MUNICIPAL

and

Uganda, Zanzibar,

New

£4,562,500

Cotton

Exchange

York

Orleans

Fund

THE NATIONAL CITY BANK
OF NEW YORK

Chicago
Miami

business.

Executorships

•

Detroit

Beach

Hollywood, Fla.

Bond

Dept. Teletype: NY 1-708

Geneva,

•

Net

122 Years of Service

Our Customers

To

Active

Markets

Dealers,

Banks

Maintained

and

Brokers

DISTRICT

FIRST

AND

American Stock

Exchange

£wdhwttt

50 BROADWAY, N. Y.

COMPANY

Dallas




CANADIAN

PERTH

AMBOY

On

DIRECT

WIRES TO

NEW

NEW YORK

OF NEW

YORK

Holland

Public Service Co.

15, 1955

3,

of New Hampshire

1955

COMMON
All

We

offer

Warrants

to

buy

at

the

the

above

current

Rights

and

market.

"Highlights"

upon

request

DEPARTMENT

Domixiox Securities

MONTREAL AND TORONTO

Goodbody & Co.
115 BROADWAY

OF THE CITY

Switzerland

expiring May

Warrants

Teletype NY 1-2270

MEMBERS
BRIDGEPORT

Executed

Gables

Imperial Bank of Canada

Canadian Exchanges At Regular Rates

Members N. Y. Stock Exchange

BONDS

Orders

BANK

NATIONAL

Pittsburgh

Coral

Rights expiring March

CANADIAN
Commission

T. L. WATSON & CO.

•

CHASE

THE

N. Y.

Canadian Bank of Commerce

SECURITIES

MUNICIPAL,

Bond Department

Beverly Hills, Cal.

•

Amsterdam,

COUNTY

Exchange

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

£3,104,687
exchange

also undertaken

STATE,

Trade

of

Cotton

and other exchanges

The Bank conducts every description of

to

Inc.

Exchange,

Board

Chicago

£2,851,562

Capital

Trusteeships and

Exchange

Commodity
New

Exchange

Stock

American

BONDS

Stock

York

and SomaU-

Protectorate.

Paid-Up

and

Bonds

Members
New

in

Authorized Capital

banking

Municipal

H. Hentz & Co.

13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,

Reserve
BOND

30 BROAD

Government

Kenya Colony and Uganda
Head Office: 26, Bishopsgate,
London, E. C. 2.
West End
(London) Branch:

land

bank

the

1856

YORK

STOCK

EXCHANGE

6 rp oration

IRA HAUPT & CO.
Members New
and

other

111

40 Exchange

Place, New York 5, N. Y.

York Stock Exchange

Principal Exchanges

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-2708

1 NORTH LA SALLE ST.
CHICAGO

Teletype NY 1-702-3

WHltehall 4-8161

Boston

Telephone:

Enterprise

1820

vV/v
-

2

v

"

The Commercial and Financial Chronicle...

(698)

The

"

^ f*1 •
For Banks,
««

Brokers, Dealers

Security I Like Best

A continuous forum in which, each week, a different group of experts
in the investment and advisory field from all sections of the country

Leading Banks

participate *jad give their

and

reasons

for favoring

(The articles contained in this forum

GEORGE

of New York
91sl Consecutive

Quarterly

Comparison
A vailable

on

request

New York Hanseatic
1920

Teletype NY 1-40

Direct

Private

Wires

Dallas

Since 1917

Exchange

1X0

BROADWAY, NEW YORK I
TEL.

REctor

2-7818

30%

listed

for

the

of

use

like

best."

aluminum

and

Exchange.

common

stock lends in¬

inside

more

light

the leader in
its
field,
which
is
capitalizing
upon,
the
fast-growing
use
of
aluminum in the rapidly expand¬
ing construction industry. Its rec¬

weight

affords

company,

J. WALTER

LEASON

Institutional Department

Montgomery, Scott & Co., N. Y. City
Members New York Stock Exchange

Puget

Sound

seems

future

to witness

sure

listed

was

Power

&

Basset! Furniture Industries

Camp Manufacturing
Commonwealth Natural Gas

larger

point of view,

an

investment
this

in¬

ever

listing

by the

of

n

because
com¬

TWX LY 77

bining

sign

and

construction
Bronze

pletely

New

technique,

recently

enclosed

As

the

a

with

of

use

modern

Trading Markets in

brick.

office

The

trend

buildings,

aluminum

Oregon Portland Cement

Bronze

1st NatL Bank of Portland

panels

hospi¬
public

is in

of

General

the forefront

of this

field.,

U. S. NatL Bank of Portland

Other products include ra¬
and TV antennas and related

dio

electronic

ponents

—

ZILKA, SMITHER & CO.
Portland-5-Oregon

use

and

in

7

Jj/

parts

for

well

as

diesel

road building equipment and mil¬
itary requirements. Architectural

metal

work

important
research

operation.
department
new

cost

Badische Anilin

Federal power
changed.
The gov¬
is unlikely to undertake

six

mainte¬

of

to reach
$25 million

years

of

excess

With

unfilled

orders

ning of 1954,
for

that

nature
it

a

year

Despite
of

seems

the
more

at

new

figure

a

in

backlog of $22.5

a

1953.

million

Tele. MY 1-3222

$1.72

in

begin¬
high record

Would

seem

as¬

the

competitive
building industry,
than

sales

dividend

yields 5% at
price of 34%, whereas
the average electric utility
stock,

defense

expenditures,

balance

the

for

the

reason

budget,

much

a

stock

position

growth
4%%.

weaker

and

potential,

common

an

inferior

yields

only

'

do the

can

for

Undervaluation

years,
under

favor,

can

Puget's

(1)

be summarized

fol¬

as

Split

Service

in

Puget

availability of

Depart¬

ment,

which
of

the

had

approximately

city's customers.

In

face

of an
expiring franchise
duplicate facilities, the com¬

and

pany was

able to sell these prop¬

erties

the

lion

to

—

thus

city

above

lay

current

and

for

book

the

$26.8

value

foundation

strong

financial

mil¬

—

for

and

its

position

growth.

uncertain

an

istration

has

cost

awards

being

at¬

Investment

<fc

Bankers

Broadway,N.Y.6 COrtlandt 7-5680

set

However,
not

by

Puget's

jury

awards.

stockholders

badly treated since jury

were

about

Gen'l Dry Batteries

Bowser, Inc.

Sup¬

power

matter.

Preferred and Common

to

Re¬

given

the

Bought—Sold—Quoted

company

agreement,
replacing
five - year agreements.

previous

Interchange
Seattle

with

agreements

City Light and the North¬

west Power Pool and

Puget's own
expansion program

of

company

LEWIS & ST0EHR, Inc.
Established 1926

80 Broad St.,

New York 4

Telephone: DIgby 4-0985

abundant

for its expansion.

power

In this

connection, formation of
Puget Sound Utilities Coun¬

the

cil

is

of

tremendous

This

portance.
the

future

Council

two

company,

Districts

who

have

im¬

consists

Utility

decided

which

for

1,700,000

tional
10

is

faced

with

kilowatts

electric

need

a

of

addi¬

next

This Council will

years.

in the

plan

power

co-ordinated power program for

a

the

entire
to

area

cost.

double

book

MATERIALS CORP.
Plugging

Puget Sound—Cascade
the lowest possible
one
of the power or¬

Announcement
made

Each

will

retain

its

own

four

utilities

to

make

financing easier.

estimated
tons

.

.

mortgage

terms

were

of

the

old

restrictive.

very

refunding in September, 1954,
in savings of 6c a share

Company's

mills in
and

at

15

over

million

which could feed steel

.

the

make

pendent

S. for 20

U.

years

this

country inde¬
foreign
sources.

of

Without manganese

there

can

be

steel.

Strategic Materials Corporation
is an exploration and mining
of considerable
promise.

company

Corporate Problems of Ex¬
The

recently

was

this

assure

other

The

that

wholly-owned subsidiary had
deposits of manganese metal

no

the

Hole in Industry

a

to

work together for the gobd of the
area

STRATEGIC

municipal

authorities and two Public

Capital Stock—
price $7 a share

recent

Ask

for descriptive circular

resulted
and

permitted the company to is¬

additional large amount of
bonds in expansion.

sue

an

Features

of

Puget's

STRAUS, BLOSSER
and Mcdowell
Members

New

30 Pine St.

York

Stock Exchange

New York 5, N. Y.

Position
Telephone: BOwling Green 9-1314-24

The

company's strong financial
position permits it to virtually
double
its present, size without
any common

is

very

from

stock financing.

important

in

Teletype:

NY 1-1385

This

benefiting

growth of the dynamic ter¬
served.
The
territory

Over-the-Counter

ritory

served

tion

grew over 61%

between

almost
of

twice

1940

the

in popula¬

and

rate

Washington

4%

(2) Public Power Conflicts: Un¬

were

production equipment

111

1897

Office Tokyo—70 Branches

Brokers

20-year

a

State

times the

Because

properties,
trend

has

ceive.
average

States
of

or

growth

(37%)

Quotation Services
for 41 Years

and

of the

en¬

(14.5%').

various

the
been

1950,

of

growth

tire United

der

for the production of build¬
ing panels. Other new and lower
press

Established
Home

cently, Bonneville Power Admin¬

Seattle:

company formerly competed
the
City Lighting

75%

write

Yamaichi

The problem described above

Significant

the

or

Securities Co., Ltd.

ex¬

lows:

amounts

giant

Japanese potential.

This has

The Uncertain Power

(4)

pansion:

including

810-ton

job.

produced a more favorable
mosphere for utility company
pansion.

(5)
Reasons
For

with

vision—

knowledge

ten¬

a

with

continuing to institute new and
improved methods of production,
new

and

identity
and
do
the
necessary
building and financing on its own
power
sites with guarantees by

Washington State Law, Public
Utility Districts were able to buy
pieces
of
Puget's
property
at

a

desire to

a

with

with

Call

power

ganizations

the

likely that
profits would keep pace with the
increase

15 Broad Si, Mew York
4, N. Y.

expensive

the current

largely resolved in

that the company has been and is

Members Jfess York Stock Exchange

the

been

and

investors

lo

developments in the face of large

a

the dynamic growth of population
in
the
territory served imparts
growth characteristics. Moreover,

The

sured.

Liquid.

tions—with

stock equity giving
it defensive characteristics—while
common

cipal

an

Sales have expanded more than
two and a half times
during the
last

fi¬
posi¬

active

An

as

nance.

in

Bayer

nancial

58.5%

of

most
of
the
last
twenty
the company has operated
many burdens?
The prin¬
problems, which have now

company's

products designed
living and both low

construction

one

very

continually

the

was

first business and continues

for comfort of

Hoeckster Farben

com¬

have unusual appeal

may

has

tremendously

offices

SECURITIES

originally brought

of

ernment

branch

our

JAPANESE

primary responsibility for devel¬
oping the power resources of the
Puget Sound area. However, in

locomotives,

develops

Active Trading Markets in

as

is

strongest

Leason

aluminum

tals,
schools
and
other
buildings is toward the

Plywood

J. Walter

com¬

York

to

investors

c o m-

the

de¬

skyscraper
within one day as opposed to a
time period of months required in




which

wires

of the

Public Utility

same

Birmingham, Ala.

Mobile, Ala.
Direct

(3) Federal Government Power
Policy: Until very recently, the

of

leader

panels

Active

it

electric

an

by all types of buildings.
wall"

an

teresting

the

"curtain

Exchange
Exchange

age.

utility

in

Stock
Stock

NY 1-1557

New Orleans, La. -

condemnation suit.

the

The stock is

i

include windows and doors

General

Lynchburg, Va.

Pboats HA 2-9788

is

pany's coming

use

Farben

District

event symbol-/
building and
izing the com¬ assure the

of many designs and functions for

STRADER,TAYLOR&CO.,lnc!

one-sixth

involving

ings

General Bronze, as reputedly the
leading authority of curtain wall
design and fabricator of alumi¬
num
products for the building
industry, would seem to possess
a dynamic future.

pany

Life Insurance Co. of Va.

PD 155

pendulum has been swinging the
other way. Two recent proceed¬

almost

Products produced

Dan River Mills

Pacific Ctasf Securities

activity
seems
to
have reached a peak in 1949. The

creasing trend toward aluminum.

American Furniture

—

Light

the New York

on

building
building

aluminum

and

York

American

HAnover 2-0700

This

value.

made the

Exchange on Feb. 7, 1955
—just a few days ago. From an

proportionately

Hew

Members

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

ply:

Puget Sound Power & Light Company

residences

are,

Members

dency to favor private enterprise

Stock

Schools, fac¬
buildings and
for these reasons,

Steiner, Rouse & Co

(Page 2)

where it

stock

of

City.

York

New

policy

a

in

costs

economies in foundations and sup¬

a

Co.,

the last two years,

is

virtually eliminates

creates

and

space

Montgomery,

Dept.,

&

Scott

Insti¬

Walter Leason,

tutional

then

building

labor

reduces

products

Cascades

York

ising.

The

pany—J.

Federal Government had assumed

the New

on

those which

amount

LD SO

stock

ord is good and its outlook prom¬

using

Trading Interest In

afford

year

which, super¬
imposed on a small capitalization,
imparts to General Bronze stock
the possibility of dynamic growth.
That is why the stock is one of
"I

Bought—Sold-—Quoted

Puget Sound Power & Light Com¬

vestment status to the stock. Here
George C. Astarita

porting members.
tories, commercial

Exchange

Stock

of

shares of

de-

thickness

Tort Stock

is

last

return at the pres¬

strong balance sheet and a
sole
capitalization
of
363,000

maintenance costs. Minimum wall

American

seems

A

con¬

erection

Members

paid

price

Stock

large

products

ffcrtOHNELL&nj.

it

and

Total dividends of $1.70

share

which

velopment

Rights & Scrip

taxation

almost 6%

ent

building prod¬

new

Colo.

Springs,

motion of the

an

a

Colorado

Co.,

company's total business were dis¬
missed
in
December,
1954,
by

per

En¬

and

Specialist in

George C. Astarita, Boettcher &

for 1953.

ma¬

stitutes

—

likely that 1954 earnings will ex¬
ceed the $3.50 per share reported

other

terials.

of

dence

en¬

building

ucts field

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

are not intended to be, nor
sell the securities discussed.)

to

Corporation

Bronze

(Page 2)

aluminum

to

Boston, Chicago, Cleveland,

Item

Louisiana Securities

ASTARITA

trance into the

PHILADELPHIA

BOSTON

are

than

Exchange

120 Broadway, New York 5
V/Ortth 4-2300

offer

Alabama &

particular security.

a

introduced, and the addition of a
new
plant in December of 1954
Boettcher & Co.
should
serve
to
keep
General
Colorado Springs, Colo.
Bronze abreast competitively. Mass
General Bronze Corporation
production of wall panels for all
General Bronze Corporation is types of buildings, including resi¬
dential structures,
is now being
a
fast-growing unit in the build¬
planned. Such vision on the part
ing field and presents an inter¬
of management has enabled the
esting investment opportunity be¬
company to approximately double
cause it deals
its net earnings during the past
in materials
six years despite the heavy inci¬
and designs
which

Associate Member

American Stock

C.

as an

joying a more
rapid rate of
development

Corporation
Established

they to be regarded,

are

Participants and

Their Selections

General

Trust Companies

Week's

This
Forum

Thursday, February 10, 1955

'strong
difficult

sales

of

National Quotation Bureau

growth
to

Incorporated

per¬

However,

the company's
residential electric use is

Established 1913

46 Front Street
CHICAGO

Continued

on

page

10

New York 4,
SAN

N.Y.

FRANCISCO

Volume

Number 5402

181

The

...

Commercial

Financial

and

Chronicle

(699)

3

INDEX

Economic Roads and

Articles and News

The Automotive Industry

immm

Page

AND COMPANY

Economic Trends and Opportunities—Arthur F.

Burns

Cover

By PAUL MAZUR*

Stressing the automotive industry as a barometer of general
business conditions, New York investment banker points out

-

States

means

Still New Frontiers

economy,

Random

Bank

—Frank

the

decade?

I

am

what

is

that

cence;

for

industry

ica, if

too

at

odds

with the well-"

ness

the

great

country.
industry
its

the

This

Paul

developments have
large and vital

Mazur

to

volume

that

so

Notes—Ira U. Cobleigh

6

McLaughlin

B9 WALL

automobile

evidence

value
of

of

both

the

also

and

almost

our

Otherwise,

Telephone: WHitehall 4-6551

13

Credit Analysis Has
—Carton

S.

Cinerama, Inc.
Cinerama Productions

Place in Mortgage Banking

a

Stallard

i

14

Holly Corp.
"The Three

Naughty Ladies of Insurance Lane"

—Forrest

E.

Haver, Jr

15

*

Chesapeake Industries

"

\

Economy"—Winfield

W.

Riefler

17

Twin Arrow Oil
A Long Range View of Business—James J. Nance

18

the

The Bible and

19

weak¬

Formosa—Roger W. Babson

A Broadening Future for Trust Services—Homer J. Livingston 20

miraculous

*

Warns

*

*

production

mass

Peacetime Conscription

on

time, an
active economy in general.
Steel and automobiles, oil and

Frederick

Shull Tells Why

G.

Wicked Type

of Money

duction

Our Present Currency Is

a

Broadway, New York 4

DIgby 4-4970

(Letter to Editor)

Teletype: NY 1-4643

21
Direct

wires

will

Salt

Philadelphia

to

Lake

&

*

City

Regular Features

employment.

automobiles, rubber and automo¬

J. F. REILLY & CO.

5

42

be accompanied first by increased
inventories and later by decreased

indus¬

Dept.

STREET, NEW YORK

10

The Short-Term Business Outlook—Dexter M. Keezer

accomplish its values, mass
production needs growth of sales.

depressed

a

the trick

us—but quick!

see

6

12

But to

finds it

one

assume

the

in

become

to

"We Can Expect More Exurberance Than Lethargy in the

mass production.
From
production
comes
high
wages and relatively low prices
through
increased
productivity.

segment of our

a

economy

difficult

I. Doan

Depression Fears Groundless—Donald I. Rogers

con¬

mass

collateral

entire

to Conquer—Leland

system of

•

and

will do

in

do

we

ing is

being

of

of

prices.

will take advantage of
the opportunity to learn.
In the period we are just end¬

likely

be

much

levels

the

cash

to

11

business¬

experiences of 1952-54,
there should be a lesson of great
significance and value to Amer¬

automo¬

not

or

our

come

enthusiasti¬

so

In these

tive
is

in

sumption

what

the

to

American

become

decrease

coun¬

Never¬

good

had

mar¬

cally accustomed. And this hap¬
pened in spite of practically no

good

theless,

which

to

men

com¬

pany is
for the

and upon the seller's

ket

good

mobile

is

of the dyna¬

the remark

auto¬

an

try.

was
the development and
application, of deflationary forces
upon
the
economy's
efferves¬

the next

over

aware

mite inherent in
for

factors

prospects for the

industry

obsolete blues

But

Utility Financing and Atomic Power--—Eldred H. Scott

demand for it, along with the suburban trend of
population.
are

your

4

.

Puget Sound Utilities Join to Assure Adequate Power in Area

salesmanship. Says the automobile is basically a family
product, and the rate of family formation influences the

What

doesn't know what
cure

Obsolete Securities

our

cient

automotive

He

So

industry plays a leading role, and says*
persistance of buyers' markets and more effi¬

a

THE DOCTOR'S DILEMMA

3

Stake in Canadian Expansion

—Henry C. Alexander

in v/hich automotive

this

Cover

To

The United

mass production results in high wages and rela¬
tively low prices, its weakness lies in its need of growth in
sales, and this is particularly true of the automotive industry.

Calls attention to increase of "automation" in

Close

Economic Roads and the Automotive Industry—Paul Mazur

that though

.

Stocks Are Respectable—James A.

Common

Partner, Lehman Brothers, Members N. Y. S. E.

try

and,

the

at

cement

biles,

inter-related

so

Therefore,
and

automobiles,

and

become

have

same

growing

produces.

The

had

and

trend

ward

its

created

its

by

have

we,

mild

but

fac¬

pectation

be

highest

tained

even

or

there

that

developing

be

in

levels

we

activity,

we

in

at¬

employ¬

Partly
in prospect
and
cer¬
tainly in retrospect, this recession

adjustment
in inventories.
In 1951 and 1952,
business was busily engaged in
accumulating inventories. In the
these

1953-54,

became

matters

of

inventories

great

concern

entered

1954

in

that fact.

1954

So

liquidate

was

inventories
effect

upon

The

probabilities

conditions

inventory

liquidation,

govern¬

ment expenditures decreased.
result
*An

of

address

National

combination

the

by

and

his

The

of

the

Chicago,

Dealers

111.,

very

in
too

1953,
large

cars.

Pro¬

affected

Guild

and

its

that

Indications of Current Business

and

that

developed

specialized in

Activity

Funds

35

the

Bankers

and

Wilfred May

Our

Reporter

Our

Governments.

on

Members New York

Nashville




•

HA 2-0270

in

more

securities

40

Exchange PL, N. Y.

Teletype NY 1-1825 ,& NY 1-1828

25

Direct Wires

Public

Utility

42

came

Railroad

Securities

to

Philadelphia.. Chicago.. Los Angeles

19

Securities

27

Securities

in

Now

Registration

NEW ENGLAND

36

No

refused

Prospective Security Offerings

to

co¬

substantially

Securities

Salesman's Corner

23

divide

any

pie

more

or

what

Continued

any

level

yet

on

The Market

.

.

.

and You—By Wallace Streete

The

Security I Like Best

of

22

Twice

—44

Weekly

1

Drapers'

land,

DANA

Place,

COMPANY, Publishers
New

REctor 2-9570

York

7,

ST., NEW YORK 4, N. Y.

N.

Schenectady

•

Glens
Worcester

Fall*

•

President

plete statistical issue—market
records, corporation news, bank
and city news, etc.).

Subscription

Possessions,

quotation
clearings,

Offices:

Chicago 3,

HI.

135

South

(Telephone

La

ore

pure

depend

all techniques for

St.,

STate 2-0613);

ex¬

uranium from erude
on
the reduction of
or

uranium tetra-

by calcium."

Union,

Memorandum

Rates

United

Territories

States,

$48.00

in

Bank

and

per

$33.00 per year.
Note—On
rate

of

year.

Record

Incorporated

—

Monthly,

made

in

the

fluctuations

In

exchange, remittances for for¬
New

FEDERAL

STREET

BOSTON 10, MASS.

(Foreign postage extra.)

account of

eign subscriptions and advertisements must
be

DAYTON HAIGNEY & CO.
75

Publications

Quotation

request.

of

year;

on

S.

Members

and

U.

of
Canada,
$51.00
per
Countries, $55.00 per year.

Other

the

Salle

in

Dominion

Other

state

Other

"At present

tracting

25,

Subscriptions

(general news and ad¬
and every Monday (com¬

issue)

Eng¬

uranium fluoride

Every Thursday
vertising

C.

fluoride

Y.

Thursday. February 10, 1955

TELETYPE N. Y. 1-5
•

SEIBERT,

E.

second-class matter Febru¬

as

Pan-American

DANA

London,
Smith.

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

to 9576

HERBERT D. SEIBERT, Editor & Publisher

WILLIAM

&

Copyright 1955 by William B. Dana
Company

Reg. U. S. Patent Office
B.

Gardens,

Edwards

with

calcium in the U. S. A.

Reentered

FINANCIAL CHRONICLE

Park

c/o

lias

owned,
contract

Energy Commission to
enlarge the facilities of the $5,000,plant for the manufacture of
metallic calcium and high purity
boron free magnesium.
Company
is the sole producer of metallic

4

Washington and You

100%

additional

000

con-

page

an

the Atomic

2

The State of Trade and Industry

Metals,

signed

16

than

market.

Stock Exchange

Chicago

Nelco

over

haven't

we

matter

•

LIME COMPANY

41

that

to

a result, the total of
"proper percentages"

to

of

unfortunate

ary

•

5

_

Reporter's Report

PREFERRED STOCKS

Boston

over-the-counter

the

Spencer Trask & Co.
•

Request

markets

MACKIE, Inc.

&
Observations—A.

,

Albany

250

on

trading

Singer, Bean

16

As

And

learned

100%

was

up

100%.

1955.

TELEPHONE IIAnover 2-4300

Prospectus

maintain

30

_—

About Banks

News

25

BROAD

We

than

WILLIAM

25

12

re¬

prices

are

of the News—Carlisle Bargeron

The COMMERCIAL and

have

Stancan Uranium*
9

_

*

Published

For many years we

Hycon Mfg. Co. Pref'd*

8

Einzig: "The Higher Bank Rate in Britain"
From Washington Ahead

Films, Inc.

8

Dealer-Broker Investment Recommendations

by

Association

Jan. 31,

Elco Corp.

44

:

Coming Events in the Investment Field

large

a
perfectly natural desire
policy of each important pro¬
in the industry to obtain
"proper percentage" of the

added

Mr. Mazur before the

Automobile

Convention,

of

Business Man's Bookshelf

from

operate.

period

22

ducer

all

this

______

caa

profits of manufacturers and par¬
ticularly dealers.

lating

with

wit¬

the pressure to

arithmetic

Coincident

Stocks

Insurance

and

Mutual
a

was

It

by decreasing production.

automo¬

else"

with

total.

or

con¬

gives

"or

of

simple

—

a

consump¬

registrations

and business engaged

in decumureducing inventories

as

to

1953

the

spite

of

duction

has been primarily an

years

In

sulting

ment, in sales, and in profits.

the

upon

inventory of unsold

an

from

have

what

volume

insistence

an

recession

no

of

mean.

ex¬

an

Consol. Diesel Elec.*
Bank

it

con¬

else.

industry in

ness

quantitative effect
significant in its po¬
impact.
As a nation, we
to

correlated

levels—or

tive

been

rather

appear

-Cover

correlated.

depends

The experience of the

which

has

experienced

be

must

its

in

litical

the

decline

or

it is not easy to control.
Therefore, production activity
tion

economic

See It (Editorial)

sequence

industry.
The

and

160,000,000 people; and

down¬

automotive

the

As We

actions of 47 million families and

in

Spring of 1954

ingredients

sales

products

be

must

Consumption

started

ended

the

in

among

tors

which

recession

mid-1953

Mid-1953

of

of

the

of

pro¬

equivalent

Production

sumption
Recession

The

mass

needs

levels

consumption

as

be inseparable.

to

healthy

a

method

York

funds.

Telephone
Liberty 2-6190

A. T. & T.

Teletype Bs 596

4

The Commercial and Financial Chronicle...

(700)

Thursday, February 10, 1955

coexistence which Canada and the

The United States Stake

United

years.

thing

_

In Canadian

States

these

you

for.

Expansion

have

It's

there is

But

tributing
should

Incorporated

in

Calling attention to the "dynamic interaction" between ecoYork banker
an

important factor in the future growth of the U. S. economy.
Canada's welcome to American participation in its

I

a

"no conflicts of interest exist between us."

able

occasion,

thing in par¬

one

occurred

ticular

to

the

about

me

founding of the Canadian Society
itself, Nor¬

what

in

did

together

an

that

it

Henry C. Alexander

c o

strangeness

of

new

associating

by

share

common

a

wasn't

That

Canadian

don't

As

the

do.

that

nearly

60

didn't feel the normal

with

ties

the

Of

north.

course

to

did.

Some of you may be

But

the

had

If

will.

the

to

I'll

the

wondering
go before

All

right, I
things that

nice

end

to

of

over

Lawrence
that

and

*An

New

address
Dinner

York,

care

Mr.

Alexander at

of

the

Canadian

Society

City,

Feb. 4,

York

of

the

pipeline and the St.
as
well.
No,
is the most heavily

one

in

the world.

all

It

it—with

long and everlasting friendship.

the

of

New

enough

have

seaway

border

fortified

the

take

to

trans-Canada

country

end, I

reach

will,

good

left

naturally

they'd

is fortified—every foot of

of

longest

have no
whole
3,986 miles of that wonderful line

come.

Annual

Frontier

world's

border.

all

laid

were

doubt

country into which they

and

drastic

And

I

try

nation

the

as

whole

a

ad¬

Thursday of last week

on

greater than in other sections of the country.

•

Unemployment rose to 3,300,000 in the month ended early in

This was an increase of
It was 200,000 more than
year earlier.
Employment totaled 60,200,000—up 450,000 from
a
year ago, but down a half-million from early December.
Of¬
ficials said the number of jobs dropped sharply in retail trade
from its Christmas peak and there were seasonal reductions in
January,
500,000

reported.

Government

the

the month-earlier level.

over

a

construction and most other industries.
The steel ingot rate is

cer¬

pegged at close to 83% of capacity this
within a few

mills will be operating at over 90%

but steel

week

94

out

over

played
the

in

the

working

of

years

the

vital

relationship which exists between
country

to

is

the

and

mother

country

both to

her

and

us—Britain.

Perhaps it

this

was

You

may
recall it.
When her
neighbor to the south was locked
in the tragic War Between the
States, Leacock said, Canada did
the only conceivable thing:
she
sprang to the aid of both sides.

turned down export

More Than

Relations—

Continental Affair

a

bonds

accord

of

Demand

an

importance extending far beyond
countries.

own

our

Canadian-

relations

American

are no longer
continental affair. Today
both countries are enacting their

merely

time.
that

roles

on

world

a

stage.

And, whether we wish it or not,
together we are moving irresisti¬
bly and inevitably toward the
center of that stage, where every¬

thing
field

universal
•

This

in

do will have

we

effect

the

a

magni-

a

course

of

the

drama.

circurpstance,

today's

places

on

w o r

high
of

Id

inescapable

the

sanity

Continued

on

on

con¬

and

re-

page

the

civilian

States

United

trade journal.

create

would

events

At least

Korea.

defense purposes and

15%

causing

economy

the

steel

of capacity, a serious turn in inter¬

ingot rate to approach 90%
national

become so heavy

ingots from some American steel plants will find their

abroad in the near future, declares this
With

one

of

tightest

the

markets

steel

of current capacity is earmarked for

only a fraction of that cushion is now being

used for defense.

Increased civilian steel demand is forcing use of less

efficient,

higher production cost steelmaking equipment.
Hence, there is
a
tendency to allow order backlogs to increase at a rapid rate
rather than boost the operating rate too high too quickly, observes
"The Iron Age."

the

in

Lost

,

..

shuffle

of

current market

news

is the

-

.

amazing

potential for plate makers, seamless pipe producers and fabricated
linepipe firms!
Currently planned or proposed linepipe projects
involve 8,600 miles worth $575 million.
Pipelines authorized or
approved will take about 6,000 miles of pipe and cost $690 million;
or a
grand total of about 14,600 miles and a cost of more than
$1.26 billion, concludes this trade

authority.

in the United States last week
was scheduled only 0.4%
under the all-time mark (164,876 units
set in the week ending June 24, 1950) to meet a revised February
Passenger

production

car

calling for 666,000 cars.

program

frame-work,

premium

products has

flat-rolled

steel and

demand for steel will probably

Export

excess

way

a

national

semi-finished

for

Britain, West Germany and Italy.
The steel shortage
in Great Britain and on the Continent will be present for some
from

come

between

two nations have assumed

our

semi-finished business and have been cautious

export cold-rolled sheet commitments.

any

since

Canadian-American

early April.

or

domestic demand from steel users, there has
been a substantial pickup in orders for semi-finished steel and
flat-rolled from abroad.
Some American steel companies have

skill

same

95%' of capacity sometime in March

to

Added to heavy

on

at maintaining difficult relation¬
ships that Stephen Leacock was
thinking of in his classic remark.

of

to

for

ended

weeks, states "The Iron Age," national metalworking weekly. If
the rate of incoming business holds, raw steel output may reach

to

presume

period

previous week. Compared with a year ago the
rise approximated 6% with advances in the Midwest somewhat

has

tinuation

wouldn't

analyze the remarkable brand

1955.

production

slightly in the

that of the

over

ada

honor

have been said about that frontier

provide a make-believe feeling of
being at home, but to promote and
strengthen the bonds of friendship

their

further

unfortified

they formed was intended, not to

between

much

referring

striking thing is that in New
in
strange land.
So, the Society

existing

vanced

industrial

tainly this gift of poise is evident
in
the
quiet, unobstrusive, but
very important part which Can¬

between
an

Longest Unfortified

how

the

York they didn't feel they were

which they perceived as

broad-mindedness

wisdom

more

of the melting pot.

The

the

a

we

ago

years

they

matter of fact, I guess we

masterfully
Common¬

the

displayed in

bowl rather than the
one

under¬

Canadian

two countries. That's

The

pull of their

homeland

his

in

internal

which

he

British

J

Total

we'll have to share.

expatriates who joined together in
Manhattan

replied

But, in fairness,

our

of

handful

that

a

and

the

Society of New York. I

mean

so

seen

solving her
nationality problems,
where she happily has chosen the
gentle technique of the mixing

com¬

can't take
credit for providing all the op¬
portunities for dislay of patience

surroundings

with

are

be

can

so

Likewise

has

own

our

which

each other,"

toward

"Well,"

mpensate

case

contrasted

He

host, "they give us an awful lot
to be understanding about."

with those who
background.

the

and

said.

desire to

for

country

frictions

the Americans

and

might call
a

splen¬
found to

he

that

States.

the

with

standing

you

homesickness
—

European visitor

characterize border rela¬
tionships in Europe. "You people

of

reasons

what

for

monly

they do
so
p r i ncipally
for

gratitude

which

between

United

the

you

assume

feeling

exist

organ¬

ization,

of

to Canada remarked at the

country

band

she

accomplished in that

Not long ago, a

their

own

debt

a

has

it

Production

Business Failures

v;

evolutionary role

has

the

in

wealth.

direction.

mally, when
people away
from

it

owe

in the

Canada

played

Society
has
never
lost
sight of its dedication to that aim,
and the people of both countries

Industry

Price

Auto

and

host

instance, this talent is dem¬

which

The'

anticipation of this pleasur¬

In

its workings

think

For

&pd Americans to work harder than ever before at the job of
being good neighbors.

Index

Food

Canada's

whole

a

Trade

Commodity Price Index

complicated relationships. This

onstrated

Urges Canadians

Carloadings
Retail

State of Trade

maintaining

clearly enough.

cautions against erecting between
"velvet curtain," under the pretense that

expansion, but

the two countries

balance

Electric Output

con¬

probably

to

for

Production •'/

Steel

The

recognition

refer

I

(T

of

is
a
subtle
sort
of skill, some¬
thing, we Americans perhaps can't
fully perceive or appreciate. But

points out Canada's industrial expansion will be

Praises

economic

factor

more

talent

delicate

of

U. S., prominent New

nomic development in Canada and the

,

does.

it

historic

sort

blueprint

which

receive

than

By IIENRY C. ALEXANDER*

President, J. P. Morgan & Co.,

the
a

one

it

to

all

managed

not

draw

can

"Ward's

said that

Reports"

Automotive

the

target for

new

less work day, is slightly above January's
659,457 cars—the fourth-highest on record—and means an average
166,500 completions each week throughout February.
the month, despite one

25

week's

Last

and

is

turnout

estimated

164,295

at

cars

and

18,601

combined 182,896 units, compared to 160,666
22,588 trucks (183,254 vehicles) in the preceding week.

trucks,

or

a

cars

truck building remains at a four-year high
under the all-time weekly mark of 196,348
vehicles (162,847 cars and 33,501 trucks) set in the week ending
June 17, 1950, declared this trade authority.
Thus,

and

We

are

pleased to

announce

the opening of

our

rests

and

car

6%

only

The past week's program

included

17% drop in truck erect-

a

Continued

on

page

29

Montreal Office
at

215 St. James Street West

Trading markets for Banks, Brokers and Dealers only:

Telephone: BElair 2633

American Research and
and the

appointment of

Corporation

Mr. William A. Stewart
From the
as

Resident

1954

Annual Report

companies

American Research
—

most

modern technical

IK

of which

are

are

now

invested

in

twenty-six

engaged in activities involving

developments in the fields of applied physics,

electronics, nucleonics, chemistry, mechanics, thermomechanics,

i I>LANE> SBQJMT

instrumentation
at

are

LIMITED

CORPN.

the

n

ment
one

Members: The Investment Dealers' Association

TORONTO, ONT.

MONTREAL, QUE.

of Canada
LONDON, ONT.

and

and

forefront

application.




just released:

Manager
"Funds of

•

Development

-

61

of

modern

science

These companies

and

its

commercial

The diversity of talent in their research, develop¬

engineering staffs would be hard to match by

any

other corporation."

G. E.

SAELT STE. MARIE, ONT.

specialized equipment.

Broadway

Unterherg, Towbin Co.
New York 6, N. Y.

Volume

181

Number 5402...The

Commercial and

Financial Chronicle

5

(701)

>

Harvard

Wains

Observations.

•

'

By A. WILFRED MAY

A Look at the Avery Record
[Midst the general concentration

on the current aspects of the
for control of Montgomery Ward, it seems constructive
inquire into the long-term past record, policies, and philosophy

proxy war

of the chief protagonists.

This

is accordingly devoted to the

space

incumbent management

chief, with coverage of the insurgent Mr.
following in next week's column.]

Wolf son

"Is Mr. Avery about to be forcibly carried out of the Ward
premises for the second time?" Wise-crack though it may be, the

question

manifests

the

wide

public

misconception

in

assuming

that the scope of Sewell Avery's career is bounded at one end by
his

battle

1944

with

FDR

in

Copies

of

with

the

gon's

new

booklet

dealing

the

about

Penta¬

conscription plans, may

for 25 cents from tne Na¬

be had

tional

the

facts

Council

Against

Conscrip¬

refresher ton 2} D. C.
sia in name only if the new peace- training each year for at least 1,- time
conscription
proposal
is 500,000 men.
This would mean
adopted by Congress" the Nation- 18,000,000 man-days lost. This is
American Sees.
al Council Against
Conscription almost 10 million more man-days
charges
in
a
36-page printed lost than were lost in strikes in
Elects Three V.-P.'s
booklet
The Council asserts that the United States in 1944 (8,721,William
"Freedom from military servitude 000). Assuming a cost of at least
Rosenwald, chairman
is as much a part of the American $10 per day
(an estimate by a 0f
k*oard, antj Emmett F. Con¬
way of life as freedom of speech
government economist in 1945) neiy} Presdent of American Seand religion." This would be lost this indirect yearly cost would be
curjties Corporation, 25 Broad St.,
"if each boy must spend eight to at least $180,000,000 to industry,
New York City, announced the
10 long years under the military
the Council added.
election
as
Vice-Presidents
of
heel" in peacetime as the PentaThe officers of the Council in- William N. Bannard III, H. Theogon proposes*. ; uu U ' hun
fiwe
elude Dr, Harry Emerson Fosdick, dore , Freeland and, Winfield A.
The Council in the booklet, enPastor - Emeritus r of Riverside Scott. . ;

;■

;

which he stood—or rather sat

Prus-

"America will differ from

-

to

Philadelphia, Pa.

tion, 104 C Street, N.E., Washing-

CORPORATE GLADIATORS

V,

University; and Rabbi
Charry
of
Germantown,

Elias

Pamphlet issued by the National Council Against Conscription
says Pentagon's proposals would break American traditions
and would place the country in the same political status as
prewar Prussia.

-

•

Peacetime Conscription

on

days

out

of

15

days

Corp.

_

-

the

—on

position
had

President
seizure

that

right

under

no

the

the

of

tagon's New Conscription Plans
declared that the draft law which

War Labor

Board's order; and by the cur¬
rent proxy

battle of the mid-

career

only

Ward's

of

these

transcends

his

at

without the

Even

still

by

A.

Wilfred

May

of Sewell in 1874;

there becoming interested in a variety of enter¬
prises, including shipping, lumber and banking. Avery senior, who
died; in'1915, was one of the guiding lights in putting together the
units which formed the U. S. Gypsum Company.
Sewell became
of these enterprises, a small gypsum company at

Mr. Freethe

firm»s

activities

declared

University in Penn-

Scott

pal department,

George Buttrick of

.

:

OF

Joseph L. O'Brien Co.
1500 WALNUT STREET

PHILADELPHIA

"such

that

2,

PA.

performed by em¬

could be

work

ploying civilians as the Seabees
during the war. The Seabee
formula was to take men of all
ages

plant;

but

went into the organization's sales de¬

soon

Aii Early Growth
;

was

the

growth
"

*

to

Situation

policy-direction (he
Chairman until 1951) Gypsum has indisputably become one of
outstanding corporations in the nation—a real "Blue Chip"
Sewell

Under

Avery's management and

the

in 1907, the earnings rose
Since the mid-

$350,000 first reported

$1.7 million in 1920, and to $8^2 million in 1925.

'30s net income has

quadrupled.

"an

II

in

the

1930s

increased

during

the four

by 30%, from $33

estimated $220 million last year).
The company enjoys

impregnable financial stability.

and U. S. Government securities at $79
total
the

Its cash

million alone are 2Vz times

liabilities; and total current assets are three times

current

aggregate of all liabilities including the outstanding preferred

stock.
The last of U. S.

lion of 5%
pany

Gypsum's funded debt, consisting of $1 mil¬
paid off in 1921, since which time the com¬

was

When additional money was

has never had any fixed debt.

needed

for

company

1928.

bonds,

financing the rapid plant expansion of the 1920s, the

sold

$7,602,100

Otherwise the

additional stock to its stockholders

in

has financed its expansion out of

company

current earnings.

PRESIDENT

VIC*

of

JOHN T. O'BRIEN, JR.
•

PRESIDENT

Council attributes the idea

conscription

universal

EDWARD J.

to

JOHN

McGUIRE

SECRETARY

an

TREASURER

AND

VICE

PRESIDENT

HERON

SECRETARY-ASS'T TREASURER

that everyone
should be conscripted whether or
dogma

needed

not

whether

and

or

not

The report indicated

"This
originated in 18th century
Europe before the development
of modern industry, and remains
a
part of army thinking in the
highly developed industrial so¬
ciety" of today. "Even the mili¬
tary leaders who advocate its use
in peacetime would substitute in
used."

wartime

selective

a

trained

those

of

report of the year 1924, Avery told stock¬

not

as

to

jeopardize science, industry, agri¬
culture and the economy."
"Conscript armies
Council

than

poison

4,000

300

square

area of more
miles by radio¬

insure

and

property by

abso¬

area

an

FIVE-STAR GENERAL
☆

☆

☆

Since 1941 the General Steel

retired $17,000,000

Castings Corporation has

in bonds

^ retired $2,800,000 of its $6 preferred
^ paid $6,150,000 in preferred dividend arrears
^ paid

a

conceived is im¬

regular plus an extra dividend on the com¬

in 1953 and 1954

mon

of

miles, ground warfare

is currently

it

H-

and

life

loss of

lute

the

one

an

square

'fall-out'

active

bomb,"
Since

asserted.

can

.

outmoded

are

hydrogen

the

by

bomb

as

holders:

recall

or

use

so

the blast effects within

Back in the annual

L. O'BRIEN

JOSEPH

FRANK J. KELLER

The

212

idea

years preceding World
million to $43 million; and
postwar volume has almost trebled (from $85 million in 1946 to

Sales

War

TELETYPE:PH

5-2812

them

putting

code."

"army

company.

From

without

through basic military training or
into uniform or under the military

company.
f

KlNGSLEY

and physical conditions from
civilian life and use their civilian
skills

INVESTMENT BUSINESS

TO CONDUCT A GENERAL

PHONE:

^ justified its shareholders' faith in America's future

possible."
"The

continued

growth of the company's business

generally

"If the conscript Ready

requires much new construction to meet the anticipated demand.

is to number three

Provision to finance these expenditures covering existing or con-

nounced,

Continued

-

on

page

31

mendous

the

Reserve
million, as an¬

the cost would be tre¬
simply to equip them,"

Council

"The

said.

cost

of

basic army
$91,000,000,
and an armored division is $293,000,000."
initially equipping a
infantry division
is

We

are

pleased to

announce

that

The Council holds: "There is of
course

Elmer W. Hammell

-

has

become associated with

in

our

MEMBERS

NEW
STOCK

YORK

STOCK

EXCHANGE

EXCHANGE

•

•

AMERICAN

MIDWEST

STOCK

STOCK

were

would

SOUTH

LA

CHICAGO




3,

SALLE

STREET

ILLINOIS

run

An

$19,200,000,000.

In

EXCHANGE

each

the

Exchange.

The

market.

over-the-counter

the New York
traded

on

Both classes

are

Pennsylvania tax-free.
The

management

has done

of

ment

common

an

the

a very

of this

stock

preferred

strong

We consider the
common

V

five-star General
would place the

position.

General Steel Castings
an

excellent value and

strongly recommend its purchase NOW.
I

*

t

Joseph L. O'Brien Co.

costs

there

are

INVESTMENTS

and

other

costs

for

1500 WALNUT STREET

pay

reservist."

PHILADELPHIA
are

a

number of indirect

costs

such

and

agriculture

as

the loss to

of

12

industry

working

V

exceptionally fine job. The retire¬

ALL

in

is

these

to

"There

on

common

aver¬

(ASSOCIATE)

travel,
135

between

armored divisions.

addition
EXCHANGE

unless

$9,100,000,000 if all were infantry
divisions, to $29,300,000,000 if all
age

DETROIT

conscripting

Reserve

somewhere

range

McDowell

&

in

ready

a

they
would
be
put
into
fully
equipped divisions.
The cost of
equipping
100
divisions
would

us

trading department

Straus, Blosser

point

no

for

men

The $6 preferred is listed
Stock

in

securities,
while Mr,
is manager of the munici-

corporate

did

partment and quickly rose to sales manager of the Buffalo Dis¬
trict. At the age of 32, in 1905, he was named President of the

-

of

other

"80%

that

Council

the

Alabaster

;

charge

and

ANNOUNCING THE FORMATION

of the
army
is engaged in non-combat
civilian type jobs such as trans¬
portation, warehousing, mainten¬
ance,
overhaul, bookkeeping,
housing, feeding and overhead,"

Alabaster, Mich., that, in 1902, joined with several other small
plants to form the United States Gypsum Company.
Under the new setup Sewell Avery became Manager of the

♦

the Air Force is do¬
foreign countries in

as

many

Asserting

lumber

one

in

trading

'Project Native Son,'" the Coun¬
cil indicated.

States Gypsum Company.

Secretary of

just

ing in

father, Waldo Avery, a native of Maine, where he was in
business, later moved to Saginaw, Mich., birthplace

His
the

Villanova

Syivanja.
'

.g

lan(J

.

.

0f

a

work

a

his direction of

of

virtue

-

Mr. Bannard is head of the pubJic utmties department.

Education,

volunteering the small group
of men it needs for combat and
hire
civilians to do the supply

leader of American industry

Sewell Averv

the United

as

Higher

of

by

existence

known

be

"an emer-

passed for the KoWar." It called for "a return
volunteer army of pre-Kosize.
The army could raise

rean

Montgomery Ward, Avery

would

Partinent

Francis X. N. McGuire, President

to

but before his advent therein.

of

°^°
F Myers, Chairman of the De-

rean

not

habitat,

present

was

£hl^^ in New

gency measure

boss far

limits,

June

in

end

will

Actually, of course,

century.
the

"The Facts About the Pen-

titled

2,

PA.

,

6

The Commercial and Financial Chronicle

(702)

herent

Still New Frontiers to

Conquer

I

ical

executive

Random Bank Notes

and

for decades the nation has of necessity been

I

tend

to need for more social as well as
Stresses great value of technical research,
more
school facilities, encouragement of
education, better highways, and above all, more and better

points

to

said?

industrial progress.
and cites need for

would

I

could

What

now.

have

conservative.

very

said

will

we

And

that's

I

keep

had

dividend increase.

be

to

could have
on
growing.

just about all I could

right now.
Well, five years of that future

This

all

enough.

started

innocently

character

A

,

people,
as
there
always
have
been, who graduate from school

had

It

and

face

possibly

but

with

accomplished in 50

was

fine

a

of

some

record,

years.

and

So

about

reached

the

end

the

of

line—that
were

a

do

And there

we

themselves

idea

that

society

tunities

would

mature

greater

if

community,

30

that from

would

of

be

Leland

I.

don't

There

are

pessimists

think

many

of

who

despite

that

frontiers

there

not

really

are

to

others

are

pessimists

but who somehow have
in being

difficulty
optimists, who just can't

quite escape
attitude
I

am

been

able

to

Dow stock in 1910. I
it's still a good invest¬

—

but

sort

a

toward

of

"too

late"

life.

very sure there are young

like

not

in

the

old

of

Commerce,

Midland,

Mich.,

Jan.

19.

1955.

look

things that have
us in jusU
period of time,
and'

little

from

that, if

tell

right

you

have

you

are

taken

I

time

that

The

Company
50-odd

had

Dow

and

over

proud

$200,000,000.
I
that growth and

of

But

am.

another

—

sequential

five

of the time

era

still

have

years

little

incon¬

years—one-tenth
consider¬

were

we

And you know, in

myserious

some

sales

have

some

$430,-

the contrary, it is also

that

I

didn't

tions about

make

the

ing

tell

someone
even

or

how

ago

years

predic¬

any

future.

human nature that

folks

you

It

is

just

enjoy hav¬
how good—

we

us

bad

things are
going to be even more than we
enjoy having them tell us how
good things have been.
—

Frankly,
much

that

I

don't, think
intend

we

as

to

it's

do

so

any¬

it is man's in¬

Wagging the Dog

million

in

Last year we
Of course, that

paid $114 million.
is

the

did

overall

put

five

organization.

little

a

million

into

years

in Texas

We

of

matter

expansion
the large

—

$53 V2

paid

we

wages.

$418

in

those

that

the

Silver

of

center

Bell

is

the

and

you

a

excursion

down

US-10

Ellsworth

Street

railroad

cross¬

the

to

think

you

it

I

would

is

where anyone

could hear

I

will

admit

it

would

of

in

Dow

1920.

Turning back the clock

June 1952, Silver Bell acquired 261,000

to

but

was

opportunity

The

stuff

its

share

for

exchange for 87,000 shares of
stock, then valued in the market at $3 a share, repre¬
total price of $261,000. The present market value of this

common

over

$1,500,000.

he

did,

had

developing

interest.

by

Four

and operating
Corners, it has

Silver Bell Mines has

few

commercial

uranium

the value

which

as

shares.

a

two-way profit in uranium,

deposits of "gallium"—a

rare

metallic

Silver

shares, without the benefit of uranium in¬
high as $3.50 a share—now selling at less than

subsequently advanced
Bell

Mines'

common

over

stock

400% in market value.
represents

a

rare

and

unique opportunity for profit, and on a specula¬
tive basis, we
unhesitatingly recommend its purchase
at $2.50 a share.

his
was

80 Wall St., New York
t

new

report

on

BOwling Green 9-5240

Silver Bell Mines.

(CFC)
Name

(Please print clearly)

five




have

into

would

as

similar

somewhat

applied

are

be

to

bank
in the

used

be

perhaps
of

earnings and dividends iifcreasing?
Are stock, dividends being
paid

Is the bank

in prospect?

or

going to need more capital so thai
attractive rights may occasionally
offered

be

shareholders?

to

investor

the

For

tutes

for

seeking,
in
in earnings

paw

his

over

much

so

selection

substi¬

equities,

to

Our

that

first

banking has
of

style.

with

short

portfolio
or

be

of

as

pipe

a

slow

plebian

so

mean

line,

cash, Treasury bills,
terms, with nothing
so

as

as

mort¬

a

a

personal

No, the progressive bank of

today, while by no means neglect¬
ing its duty ever to provide safety

availability
of
depositors'
funds, has moved on to more ef¬
fective
performance of its two
other

basic functions: to provide
wide assortment of loans to its

clients, individual and corporate
(as many of such as may soundly

qualify),
good

and

return

Another

finally

for

point,

quite satisfactory
tutional investors

to

earn

a

shareholders.

it
as

used to be
far as insti¬

were

concerned.

331

rewarding.

To take

Franklin

thing
see

almost

But

peculiar

about

is

him.

classic

a

gains vehicle

in

its

shares.

the

of

cent

having

$5,500,

would

put

that

world

hasten

I

to

add

anything I have said here is
deemed to be
or

does

not

dividends

in

go

only around $325 in cash
along the way; but for growth
in capital you could hardly have
done better in a plastic, electronic,
or
oil equity.
This Franklin National Bank is
the

sort

institution

of

individuals

more

combination

a

ment,

of

provision

.possible

smart

manage¬

the

broadest

of

banking

services,

you're interested, sells at 54 over
the counter.
As
sort

long

as this is a rambling
article, there is surely no
in digressing for a moment,

of

harm

before

we

issues.
two

or

nominate

few

a

more

progressive
California

bank
and

shares.

West

Coast

(in states where there
savings banks) do
in

time

accounts

deposit

compared

to

a

Company.

possibly

predict

like

is

that

The

I

Dow

New

apt to

anything
happen again.

So if .1 can't predict what
is
going to happen in my own com¬
pany
I
cannot possibly foresee
what is going to happen in my
community. But I can look back
and

see

ficient
I

was

if

crystal

what

I

had

I

might
a

Statement of Condition—December

Copy

on

request.

Blair

Co.

INCORPORATED

ef¬

44 Wall

Street, New York 5

Telephone DIgby 4-4000

talking with Ray Fry the
on

31, 1954

have

really

ball.

Continued

Quoted

cannot

that

page

24

Offices in other principal

Teletype NY 1-1109
cities

big busi¬
thrift

and

CAPITAL STOCK

-

The
banks

are no mu¬

Square

Sold

one

points to look for in

tual

ness

more

We'd like to set down

to

of

and

alertness for mergers. The Frank¬
lin National Bank stock, in case

of Franklin

-

and

more

looking for,

are

The Franklin National Bank

Bought

much

you'd have

so

or

invitation

an

shares

Chemical

prospectus

a

a

received

really good opportunities.
Now, in the language of the fi¬

not

up

the

series of stock dividends.

a

bank

cash

shares

original
worth $34,000

shares

668

through

above

and

over

This

100

the

nancial

Had

you

Today

without

own,

for

purchased

bank.

was

late for any

too

years

ex¬

in

you

You

he doesn't realize that he

born 30

in

some¬

20

National

$15,-

tripled

there

last

Bank,
doing a splendid supermarket type
business on suburban Long Island,
has provided its shareholders with
a
fantastically favorable capital
ample,

in¬

$5,600

almost

with the

the

considerable selectivity has
requisite, and, if used, highly

been

and

a

pace

of

years,

pretty much out

gone

liquid

as

prime
gage,
loan.

will

type

treasure"

You know what I

loaded

in

right.

own

observation

"buried

inflation

have

volatile

more

equity to keep

dollar

in

consider just how attractive
selected bank shares are at the

as

shares, growths

could

prime

as

and

years

to

confirm

shares

bank

imminent

reasoning not

to

bank

of

Are

he appeared

any

be

case

January 1950, just five
ago, spent $5,500 here you

earnings.

will

cri¬

shares,

equities.

corporate

this

original

has

years.

prophesied
State.

hang

The amazing thing is that he's
really quite pleased that his in¬

now

Address

City—

a

market

worth

become bank stock holders.

them

000.

purchase

CORP.—

$56

pay

shares

the

on

afternoon

solicitation

Send me

a

expensive

grown

And

vestment

given it in exchange for shares of Four Corners Uranium

have

know

than to

100

mysteriously

working

common

terests, have sold

to

mostly sentimental

His

50%

element of considerable value.
Silver Bell's

over.

sense

for

certain
a

Silver Bell is a long established
mining company owning and
operating producing lead, copper, zinc, silver, gold mines and one
the

golden

But buy them
furthermore he has

vestment

of

to

them.

them

Uranium,

for

The

getting
had to

he

and

reasons.

owned

was

better

no

onto

Silver Bell furnishes the mining "know-how" to Four Corners

claims

late.

was

and

block of Four Corners Uranium is

was

it

proved

However, I happen

then,

a

it

if

or

investment

an

has

1910

By 1950, of course,

one.

little

a

shares of Four Corners Uranium in

senting

safe

as

in

doubt

I

time

good

a

stock

fellow who bought 100 shares just
five years ago, on Jan. 19, 1950.

wagging Four Corners Uranium.

bank

and

could

Our little stint for the next few

—banks

then,
be

value

about

in

existing

assured,

Fourth

upon.

unworried

decline

have

of these things in
certainly wouldn't have
any

I

even

that

book

moment, in their

shares

tail

relied

to

this line Of

Now,

excitement,

addition

seemed

paragraphs

it
is

dividends, steady

few evidences of that
investment right here in our Mid¬
land plant.
If you haven't, I in¬
vite
you
to take a ten-minute

quite

seen

—

me.

Approximately $2.50

Thirdly he felt that be¬

many

dividends

of

part,

and

market.

have

course,

considered

forgotten

K.; second, he contended
banks had plenty of liquidity and
their shares should, for that rea¬
son, sag but little in a receding

in

on

is Silver Bell Mines

have

O.

was

net

Well,

possible that some of
were disappointed five

1949

to

have been very nice to buy a few

folks

yield,

somewhere between 3!£% and 4%,

bank issues are pay¬
only around 50% of current,

our

doubled

fiscal

done

Uranium

said

ing

In

1950?

Corners

he

dividend

50,000.

Do

Four

share

1890.

predicted

While

First

/

the-'bank

in

conservative

of dividend distribution is
particularly popular with in¬
who
have,
in
recent

teria

all.

at

cause

way

than

more

ing.

Price:

sound

bad

000,000 and our stockholder fam¬
ily has grown from 19,000 to over

those

thing about it

The Tail

reasoning

didn't
Ira U. Cobleigh

buy

stocks.

dozen years

a

ultra

'

another five

by

gone

His

was

pro¬

to

bank

of

sales

annual

posed

19,000

than

more

interest

Company

dividuals

other

rates, he

some

have

to

type
not

or

That

row.

For

loan

Chemical

grown

years

stockholders

a

years,

and

Trust

dozens of banks you could look up
would reveal identical yearly div¬

idends for 10

building

on
predict¬
of these things.
remember mentioning at that

any,

Monolith

the

than bank the

chance

a

if

if

paid an unchanged dividend, and

dough at sav¬
ings bank or
savingsand/or

wouldn't

I

now

and

rather

and,

inclined,"
I'll!

so

(of six

older vintage)

be your own prophet.

you can

aircraft

month

the

of

that

ing then.

.

♦An address by Mr. Doan before
the
Annual Meeting of the Midland Chamber

few

a

let's

laden

.

only thing is I suspect that
same
people had been
around in 1910 they'd have been
wistful about the opportunities in
if

repeated

convinced

new

And

conquer.

who

still

are

such peo¬
unconvertible

are

the

lessons cannot be

there

some

have

The

really

thoughts, but there
ple.

been

days."

Doaa

would have entertained such

you

oppor¬

have

had been born
They are the
wistfully, "Boy, I'd

to

suppose

significance.
I

like

ment

meager

really

they
say

buy

and

won

toying

their

sooner.

who

sure

on

progress

hard

years

kind

at

So

us.

,

happened right around

older people who

are

find

the

with

behind

now

ing most,

often

too

ma¬

there

crossed.

contrive.

or

and

and

hopefully

many

ture
a

life

fingers

many

so

certainly
had

we

their

things have been done,
things invented, that it
just can't be possible that there
is anything really important to

you

may have felt

that

business

is

at

shares

might have contemplated then

we

Five years ago we were pretty
proud as we considered what we

opined

lunch, that he was selling out a
long- and hearty list of profit•

v

.

Including a few bank shares, considered from the variousstandpoints of yield, book value, price/earnings and possible

have

I

say

medical services.

Enterprise Economist

predictions

But I

prominent chem¬

By IRA U. COBLEIGII

could have made
five years ago
could make some tonight.
didn't then, and I don't in¬
I

suppose

some

or war,

un¬

limb.

a

President, The Dow Chemical Company

preoccupied with fighting depression

the

about

known, plus a little dash of glee
at seeing someone crawl out on

By LELAND I. DOAN*

After noting that

curiosity

Thursday, February 10, 1955

...

York

Volume 181

City

Number 5402... The

banks;

and

percentage

of

mortgage loans.
of

larger
into

go

This latter type

investment

higher

much

a

resources

tends

returns

to

than

provide

mortgage

investments

in

there

are
likely to be
earnings factor for

tant
to

banks

impor¬

an

time

some

come.

still

overlooked

three

are

far

so

things

this

in

I

little

blueprint for bank stocks—yields,
price/earnings ratios and book
values. On the average, cash divi¬
dends on bank shares
currently

yield of perhaps 3.80%

a

if

you can find a good issue
paying above 4% (where dividend
so

payout

is

you

likely to get

are

priced
for

&

C

S

shares

of

stock (700,000
sells
cur¬

own

around 42, and paid $1.35

last year.

The quality and

enter¬

60%

issue.

the

part,

of

on

I don't know

gotten
idea
as

a

of

along

your

stocks.

bank

SAN

Na¬
shopping list.

land

out bank

will

Lundborg Co.

various

of

Calif.—Ro¬
&

Irving Lundborg

Co., 310 Sansome Street, members
of

shares

New York

the

San Fran¬

and

1955

aspects

highway officials, leading en¬
gineers, attorneys and representa¬
tives
of
investing
institutions.

Attendance is expected from many-

of

discuss parts of the country.

to

highway

fi¬

Brush, Slocumb Adds

on

toll

by

roads,

it

announced

was

(Special to The Financial Chronicle)

Marquette deBary, F. S. Smithers
&

Co.,

The

President

of

the

SAN

Forum.

include traffic estimates,

urban traffic

FRANCISCO, Cal.—Robt.

N. Rehlaender is

subjects to be discussed will

timates,

cisco Stock Exchanges.

vehicle for salting away mar¬

8,

nancing, with special emphasis

Baker has been added to

J.

June

on

Slocumb

cost es¬

&

Street,

ery

now

with

members

of the

Francisco Stock Exchange.

considera¬

New issue

are,

called

so

banks—purveyors

of

credit and deposit accommodation
to the

big corporations—ones like

$16,250,000

Guaranty Trust which yields 4.6%
at

79; First National Bank of New

-York, yielding 4.90% at 460 per
share; and the specialist in trust
services,. U. S. Trust Co., yield¬
ing 4.8% at 341.

Long Beach
Unified School District

About book values, the old time

bank

stock

buyer always aimed
to buy well below same.
Today
.that's getting pretty difficult to
do.

In New

York, Hanover Bank

at 96 sells at 86%

about

the

New

priced

list,
price to

book

the

on

that

on

basis.

value

at

the moment in New York appears
to be Bank of
Manhattan, which
sells 35%

AMOUNTS, MATURITIES AND
YIELDS OR PRICES

book, due orimar-

over

ily to merger status.
ship of price to book

Dated March

Relation¬

(Accrued interest to be

almost

of

twice

yet it is

its

book

Yields

can

however,
America, the biggest
in the world, consistently sells at
Bank

Amount

value,

and 17 times

chase

shares

of

has

right

almost

profitable
ratio;
of

bank

to

this

of

sound

a

certainly

stock

sells

at

An

a

107%

would

be

1.60%

In the

exempt from all present Federal and State of

1963

1.80%

335,000

1964

1.90%

taxes

book

purchase

585,000

1967

2.20%

banks and in California

We believe that these bonds

value.

entry,

sells

likewise legal investments its

upon

California for trust funds and for other funds which

1970

2.35%

,

2.40%

1971

1,815,000

1972
1973

2.45%

1,965,000

1974

100

1,965,000

1975

100

are

may

legal investments for savings banks, and

be invested its
are

eligible

as

2.45%

1,915,000

bonds which

are

security for deposits of public
These

bonds,

to

moneys

be issued under provisions of Division 3, Chapter 17^

California Education Code, for various school purposes,
counsel will constitute the

above

issued

bonds

are

received

and

approval

of

&

Attorneys,

Myers,

offered

legality

by

and

as

and

interest, from ad.valorem

taxes

subject to

Messrs.

levied without limitation of

O'Melveny

Angeles,

California.

by
Los

us

when,

property, except

in the opinion of

legal and binding obligations of the Long

Beach Unified School District and will be
The

in California.

payable, both principal and
now in force, may be

which, under laws

rate

amount

or

certain personal

property,

upon

all of the taxable

within said District.

Bank

almost

12 times net,

and,
at
37,
yields
(Rights were re¬

about

on

i

a

declared

bank

dividend

in

1949,

shares

new

for 4 basis.)
10%

a

10%

stock

in

1951

and cash dividends

Bank of America N.T.&S.A.

The First Boston Corporation

The Northern Trust Company

Blyth & Co., Inc.

Harriman Ripley & Co.

Phelps, Fenn & Co.

1945/1953.

A

good

management,

good territory, and an across-the-

board record for sustained

provide

logical

American Trust

of

°l L°s Angeles

Merrill Lynch, Pierce, Fenner & Beane

C. J. Devine & Co.

Company

Salomon Bros & Hutzler

Goldman, Sachs & Co.

San Francisco

The First National Bank

-

of Portland, Oregon

California Bank

Dean Witter & Co.

Weeden & Co.

los

Incorporated

Equitable Securities Corporation

Angeles

growth,

for

reasons

rent attractiveness of

Security-First National Bank

R. H. Moulton & Company

Smith, Barney & Co.

Incorporated

were increased
each year for nine years in a
row,

cur¬

Laidlaw & Co.

B. J. Van

F. S. Moseley & Co.

J. Barth & Ci

White, Weld & Co.

Ingen & Co. Inc.

Central Na¬

Cleveland.

Valley
zona

bank's investment,

2.25%
2

a

savings

4.40%.

$32.50

tional

of

1968

/

amount

legal investments in New York for

1969

1,815,000

if

above,

National

which

cently offered to buy
This

the

are

for savings banks subject to the legal limitations

640,000

some

of

California personal income

590,000

30%

agency

existing statutes, regulations and court decisions.

2.00%

inland

Central

$1.60

around

under

2.10%

seem

fiscal

the option of the holder.

opinion of counsel, interest payable by the District upon its bonds is

1965

reference

any

both principal and interest.

1.70%

1966

would

at book value, about
pays

as to

at

Coupon bonds in denomination of $1,000

March 1, 1956.

330,000

rules-of-thumb

of

Cleveland,

at

1961

295,000

the yardsticks

by

Chicago, Illinois,

1962

585,000

into action

attractive

judged

payable

or

335,000

bank

through 112
stock at 78, paying
bit above 4%, and

The

(annual)

or

California,

330,000

13

the office of thm

at

1.50%

coupon

York, N. Y.,

registerable only

services, offered

branches.

a

First

1.40%

1960

Angeles County in Los Angeles,

1,165,000

relationship

$3.20, yields

at

1.25%

1959

325,000

jotted down above, Manufacturers
Trust Co. of N. Y. qualifies as a
progressive bank with broad re¬

of

Los Angeles County in New

of Los

proved

no

without

In order to put
of
the
assorted

tail

1.10%

1958

320,000

intelligent.

very

1957

Treasurer

earning

times

10

a

.90%

315,000

The pur¬

now.

invariably

at

and

between

Prices

1956

315,000

and

worthy bank share, in
\ fa
Price/earnings ratios are quite
somewhere

Due

310,000

a

—

1, 1956-75, ind.

or

Principal and semi-annual interest (March 1 and September 1) payable

$

any company.

varied

Due March

1, 1955

added)

r

value

be somewhat confusing,
as

Angeles County, California

2Vz% Bonds, Election 1954, Series A

of book value-

lowest

York

Highest

Los

National

is another

Bank

Ari¬

of

Bacon, Stevenson & Co.

Hemphill, Noyes & Co.

F. S. Smithers & Co.

Bache & Co.

department store-

Eidredge & Co.

W. H. Morton & Co.
Incorporated

Incorporated

/

type

bank you ought to look up
and, in the South, one of the most

Carl M. Lceb, Rhoades & Co.

William Blair & Company

impressive financial institutions is
surely the

Citizens

and

National Bank, in Georgia, which
operates directly or through sub¬
sidiaries

19
banking
offices
Georgia, with $390 million in

tal

deposits.

This

bank

wonderful loan business.

in
to¬

does

loans

million;
were

and

$94.6

of

million

stallment loans $42
Citizens

and

time

and

in¬

Southern is

one

both

The Ohio

First Securities Company

Company

of Chicago

Mullaney, Wells & Company
Stone &

Youngherg

Hill Richards & Co.

Lawson, Levy & Williams

H. E. Work & Co.
i

Taylor and Company

of

listed and




Wagenseiler & Durst

the

country, pioneering in an instal¬
ment plan for purchase of com¬

stocks,

Kaiser & Co.

A. M. Kidder & Co.

Raffensperger, Hughes & Co.

Stokes & Co.

Kalman & Company, Inc.

Dempsey-Tegeler & Co.
'

Kenower, MacArthur & Co.

7

Incorporated

Shuman, Agnew & Co.

Irving Lundborg & Co.
■

■'
.

Watting, Lerchen & Co.

Garrelt-Bromfield and Company

million.

the most progressive banks in

mon

Schwabacher & Co.

I

At June

that,

Stern Brothers & Co.

a

30, 1954, of deposits, then standing
at
$355
million, loans totalled
$168

Gregorys. Son

G. C. Haas & Co.

Incorporated

Southern

un¬

February 9,1955

Magnus & Company

Stern, Frank, Meyer & Fox

Fred D. Blake & Co.

Rediield&Co.

Brush,

Co., Inc., 1 Montgom¬

net)

yields

in

ope¬

be

day conference at the Hotel Roose¬

FRANCISCO,

staff

the

just how far we've
with our opening

picking

conference

not over¬

a

Better

most

"wholesale"

less

or

tional Bank

par¬

Toll Road Conference

stalwart

(Special to The Financial Chronicle)

Southern

and

Among the

rating problems.
ticipants in the

appeals to you.
The Municipal Forum of New
wealthiest friends York is
planning to hold a one-

With Irving

of

Citizens

tions, and construction and

velt

management here, plus
rapid rate of deposit ex¬
pansion, should justify your put¬

ting

your

that

This dividend could be

increased.

prise

equity

of

Some

outstanding),

rently

of

sort

if

stocks,

bank

7

Municipal Forum Plans

advanced for the sensible selection

banks.

capital

but at least some rudi¬
techniques
have
been

mentary

the

There

provide

correspondent

(703)

ket gains;

listed; and has worked out a plan
to provide a secondary market for
instalment loan paper owned by

commercial

loans, and since the West Coast
building boom is still roaring,

Financial Chronicle

and

Commercial

C. N. White 6 Co.

San

The Commercial and Financial Chronicle
8

Thursday, February 10, 1955

,..

(704)

Also available
San

memoranda

are

National Container Corp.,

on

Cinerama Productions Corp.—Analysis—John R. Boland &

Dealer-Broker

30 Broad

Golkin

It

is

York

Gimbel

MacMillan

New

Olin

McKinnon,

120

&

Trust

is

Best

.

%—Stanley
5, N. Y.

Co,

&

Heller

yields approximately
Street, New York

sheet
Development Se¬
Thirtieth Street, N. W., Washington 7,

Co,

1033

In

Investment

Feb. 11, 1955

ciation

Toronto

Lewis & Co, 63

American
Vanden

Also in

copy—John H.

Feb. 16,
Bond

winter din¬

31st annual

Columbia

Pictures

Corp,

H.

J.

Co, Ingersoll

Club

Detroit

of

annual

(Chicago, III.)

Municipal Bond Club of Chicago
cocktail party for members and
wives

Yacht

Club.

at

the

Chicago

Feb. 21, 1955 (Milwaukee, Wis.)
Milwaukee

Bond

election

and

Skyroom

Club

at

the

Plankinton

the

of

annual

Hotel.

Spinning Associates,

of
at

Manufacturing

Case Pomeroy &

Co.—Memorandum—C. E. Unterberg,

&

Pacific Railroad

Association

(Philadelphia, Pa.)

Shearson, Hammill & Co, 14 Wall Street, New York 5,

N. Y.

1955
of

(Pittsburgh,

Stock

James J. Faye

Associa¬

(New York

spring

meeting

at the Shamrock Hotel.

Societies
Commodore.

at

the

Gasper Rogers Opens

(Connecticut)

Security Traders Association of
Connecticut

and

Connecticut

Investment Bankers Association

joint

meeting

at

the

Waverly

Mar.

11, 1955

(New York, N. Y.)

New York Security Dealers As-

I

1955

(White

Sulphur

at

of

40

the firm

City, under

will

firm

act

new

in

cor¬

dealers

as

name

The

Co.

Rogers

Casper

of¬

opened

Place, New

Exchange

poration and industrial securities.

been

the past 25

Rogers for

has

years

associated with King

&

Springs)
Investment Bankers Association

Spring

meeting

of

Board

King.

of

Joins McAndrew Staff

Governors.
June 8,

1955

(New York City)

Municipal Forum of New York
on

highway financ¬

(Special to The Financial Chronicle)

Sept.

11-14, 1955 (Mackinac Is¬
land, Mich.)
National Security Traders Asso¬
ciation annual convention.

FRANCISCO, Calif.—Mrs.

SAN

I.

Eunes

of

staff

has

Roberts

McAndrew

&

joined

the

Co., Incor¬

porated, Russ Building.

With Mutual Fund Assoc.
(Special to The Financial Chronicle)

Sept.

16-17

(Chicago, 111.)

SAN

FRANCISCO, Cal.—Kong

Investment Bankers Association
Fall meeting of Board of Gov¬

H.

ernors.

ciates, 444 Montgomery Street.

Go is with Mutual Fund Asso-v

AN

DEPENDABLE MARKETS

©o, £td.
Member

Over-the-Counter

fices

has

Rogers

Casper

Mr.

18-21,

ing.

March 2, 1955

Sachs & Co.

York

Analysts

Hotel

&

Own Investment Firm

May 8-10, 1955 (New York City)
National Federation of Finan¬
cial

de¬

Leonard

City)

(Houston, Tex.)
Group Investment Bank¬

Association

institutional

Moore,

Eastman, Dillon & Co. and Gold¬

April 24-27, 1955
ers

of

partment

has become asso¬

the

City. Mr. Faye was formerly with
Exchange

Security Traders Association of

Texas

with

ciated

Lynch, 14 Wall Street, New York

New York annual Dinner at the

League.

3Iowttra Securities

Dependable Markets in

City)

Faye Joins
Moore, Leonard, Lynch

man,

1955

conference

Inn, Cheshire, Conn.

Co.—Memorandum—

Traders

Firms meeting of Board of Gov¬

Municipal Bond Club of Phila¬
delphia luncheon at the Union

•

Towbin

Co, 61 Broadway, New York 6, N. Y.
Chicago, Rock Island

(Philadelphia, Pa.)

Philadelphia annual dinner
the Benjamin Franklin Hotel.

Feb. 28, 1955

&

Company—Analysis—Hill Richards
Co, 621 South Spring Street, Los Angeles 14, Calif.

Burton

Association

May

Feb. 25, 1955

Rand

Inc.—Analysis—White &
Company, Mississippi Valley Building, St. Louis 1, Mo.
Fine

(Toronto, Canada)

Bond

23-25,

Apr. 29,

1955 (Detroit, Mich.)

Feb. 21, 1955

Company and National Distillers Products Corp.
Berkshire

Morgan & Co.,

Nassau Street,

New York

Waldorf Astoria.

—

Heinz

(Peter Morgan,
Peter
31

ernors.

House.

Investment Traders

Data — Oppenheimer,
Broeck & Co, 40 Exchange Place, New York 5, N. Y.
the same bulletin are data on Bethlehem Steel Corp,
Refining Co.

&

tiller have

at the

sons

just done him wrong.

Pa.)

dinner at the Detroit Boat Club.

Wall Street, New York 5, N. Y.

Smelting

coursing, he lands

bong,

a

Why his

tion Annual Dinner at the King
Edward Hotel.

Field

(Boston, Mass.)

at the Parker

ner

meeting

per

his

in

if

with

March 11, 1955

March

It Is Applied—4-color

Inc.—Analysis—$2.00

Airlines,

and he glides.
And

the Biltmore Hotel.

Broadway, New York 4, N. Y.
American

he

Masonite Corp.

on

EVENTS

Chemical—Bulletin—Dreyfus & Co., 50

American Agricultural

Hirsch

Also available

Hampshire—Highlights—Ira Haupt

COMING

*

*

ice-boat

James J.

D. C.
*

C

slips and he slides;
Like a bird on the water, he dips

Riverside Cement Co.

listing of 100 atomic stocks—Atomic

curities

Model

his

Trust

&

sail

go

the ice.

on

McDowell, 30 Pine Street, New York 5, N. Y.

their

What Atomic Energy Is and How
with

Pine

30

watch Peter Morgan

And

avail¬
With

—

our

advice
&

sociation 29th Annual Dinner at

12 issues of The
Magazine, Dept. E-l,

Program—Analysis of investment

Also

Gloeilampenfabrieken—Memorandum

Take

Ladies and Gentlemen:

Co, 111 Broadway, New York 6, N. Y.

Bank

Leedy,

of

ON THIN ICE?

Harriman

—

Corporation—Bulletin—Reynolds & Co,

Boston Securities Traders Asso¬

Highway

Memorandum

Swift & Company.

on

Vice-President

utive

Loewi & Co,

—

Corporation—Bulletin—Thomson

performance over a 13-year period —
Bureau, Inc., 46 Front Street, New

Utility Investments—Selected list which
5

Cement

was

Wheeler & Alleman, Inc.

Street, New York 5, N. Y.

on

memorandum

a

bulletin

General Clay's Report to the President — John
& Co, 135 South La Salle Street, Chicago 3, 111.

Nuveen

Wall

securities business.
formerly Exec¬

a

Wheeler

Company—Analysis—J. R. Williston &
Co, 115 Broadway, New York 6, N. Y. Also available is a

of

impact

—

in

to engage

Mr.

Co, 25 Broad Street, New York 4, N. Y.

Trade

Co, Inc., 70 Pine Street, New

Year National

Ten

Florida

Winckler

Broadway, New York 5, N. Y.

and

."—Investment Booklet plus next

.

Wheeler has opened

Company—Analysis—Dayton Haigney &

Co.

Fla. —Howard
S.
offices in the
National Bank Building

ORLANDO,

Strategic Materials Corp.—Descriptive circular—Straus, Blosser

Broadway, New York 5, N. Y.
showing an up-to-date com¬

Exchange Magazine—The Exchange
11 Wall Street, New York 5, N. Y.

Howard S. Wheeler

Wall

36

Detroit 26, Mich.

Public Service Co. of New

road Company.

"10

Co,

Products Co.—Analysis—F. J.

Chemical

11

V. Philips'

N.

Stocks—Comparative Figures—G. A.
York 5, N. Y.
Railroad Stocks—Bulletin (No. 183)—Smith, Barney & Co, 14
Wall Street, New York 5, N. Y. Also available is a bulletin
(No. 185) on Pennsylvania Railroad vs. New York, Chicago
& St. Louis Railroad and (No. 184) on Missouri Pacific Rail¬

&

Y.

Electric

&

bulletin

a

Dixie

Penn

Common

Utility

Ltd.—Analysis—Bache

—
Special Report
Street, Milwaukee 2, Wis.

Mason

Mathieson

able is

York 4, N. Y.

Saxton &

Hemphill,

—

Ripley & Co, Inc., 63 Wall Street, New York 5, N. Y.

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

Public

Memorandum

—

Shoe Company

East

Oklahoma Gas

Jones Averages and

market

Co.

Building,

Lime

England

225

Stocks—Annual comparison and analysis

Quotation

Bloedel

&

Nunn-Bush

Over-the-Counter Index—Folder

and

120

Co, Inc., 75 Federal Street, Boston 10, Mass.

&

National

Co,

Corporation, 322 Union Street, Nashville 3,

Co, Penobscot

5, N. Y.

yield

Line

Mount Clemens Metal

—Laird, Bissell & Meeds, 120

Dec.

New

Also available is a bulletin on
Argus Corp, National Tea and Sinclair Oil, and a memo¬
randum on United Air Lines, Inc.

Companies — 91 consecutive
quarterly comparison of leading banks and trust companies—
New York Hanseatic Corporation, 120 Broadway, New York

New York City Bank

Pipe

New York 5, N.

Street,

N. J.

and

of

as

Street,

Inc.—Memorandum—McDonnell &

Securities

able

Chiyoda-ku, Tokyo, Japan.
Financial Facts and Comment — Leaflet — Gardiner, Annett,
Limited, 330 Bay Street, Tronto, Ont, Canada.
French Revolution Inflation—Lesson of Irredeemable Currency
—10 page study—25
cents per copy; 10 copies, $2.00; 50
copies, $7.50; 100 copies, $10.00—Frederick G. Shull, 2009
Chapel Street, New Haven 15, Conn.
Investment Opportunities in Japan—Circular—Yamaichi Secrities Co, Ltd, 111 Broadway, New York 7, N. Y.
Lithium Story—Circular—Julius Maier Co, Inc., 15 Sxchange
Banks

Wall

Tenn.

of Japanese Companies—In current is¬
of "Weekly Stock Bulletin"—Nikko Securities Co, Ltd,

York

condition

44

Jefferson Standard Life Insurance Company—Analysis—Equit¬

1-chome, Marunouchi,

New

of

Incorporated,

Noyes & Co, 15 Broad Street, New York 5, N. Y.

Earnings Performance

Place, Jersey City 2,

Co.

Y.

Brothers,

Interprovincial

"■

Chuo-ku, Tokyo, Japan.

4,

5, N.

&

Broadway, New York 5, N. Y.

V ' :
Common Stocks Offering Good Yield—Tabulation— H. Hentz
& Co, 60 Beaver Street, New York 5, N. Y.
Electric Utilities in Japan—In current "Monthly Stock Digest"
with particular reference to Chugoku Electric Power Co.,
Ltd, Ilokuriku Electric Power Co, Ltd. and Hokkaido Elec¬
tric Power Co, Ltd.—Nomura Securities Co.. Ltd.. 61 Broad¬
way, New York 6, N
Y. and 1-1 Chome, Nihonbashi-Tori,

sue

Corp.—Analysis—Abraham & Co, 120

Bank—Statement

National

1954—Blair

year-end reports—Blyth &

;

6, N. Y.

Broadway, New York 5, N. Y.

Co., Inc., 14 Wall

36, N. Y.

New'York 6, N. Y.

Lines—Analysis—Sartorius & Co, 39 Broadway,

Metallurgical

Franklin

Street, New York 5, N. Y.
Canadian Letter—Fortnightly review ol the Canadian Securi¬
ties Market—Newling & Co, 21 West 44th Street, New York

Stocks—Analysis of the 1954

Opens Own Inv. Offices

Limited—Supplemental Report—

Co, 61 Broadway,

New York
Fansteel

pleased

understood that the firms mentioned will he
to send interested parties the following literature:

31,
Bank

&

Air

Eastern

Co.,

Street, New York 4, N. Y.

De Beers Consolidated Mines,

Recommendations & Literature

Howard S. Wheeler

Diego Gas & Electric Co. and Warner Hudnut, Inc.

AUTHENTIC

10-PAGE

PAMPHLET, ENTITLED

"French Revolution Inflation—

N.A.SJ)

Lesson of Irredeemable

Broker and Dealer

M

Securities

Currency

Material and Consultation
Price,

on

One

Japanese Stocks and Bonds

Troster, Singer & Co.
HA

2-

2400

Members:

74

N.

Y.

Security Dealers

Association

Trinity Place, New York 6, N. Y.




50

without
NY

I-

376

obligation

prepaid,

Copy,

in

25c;

Copies, $7.50;
Address

61

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

BOwling Green
Head

9-0187

Office Tokyo

DEMPSEME6ELER & CO.

U.
10

S.

&

Canada:
$2.00;

Copies,

100 Copies, $10.00
Orders

to

FREDERICK G. SHULL
2009

Chapel

St.,

New

Haven

15,

Conn.

Volume

181

Number

5402...The Commercial and- Financial

Chronicle

(705)

-

that

^e ultimate buyer would pay this

[ ^he/increased costs:;- * :
'

-

v

To

this

By PAUL EINZIG

was

added

suiting

Commenting on the rise of the Bank of England discount rate
by one-half percent, Dr. Einzig finds it has failed to produce
interest rates

London

in

are

now

of

hesitation,

to

Bnt it
to

authorities decided in favor of
increase of the bank rate
27.

an

But

and

pandmg purchasing
the
wages
spiral

to

cus-

torn,

the

rate

raised

¥2%

by

only; in-

stead

'

the

of

usual1' x /o.
1
1%.

"
solution

The

there is

shortage, such

con-

trary
was

stuffs in which

Jan.j wide

on

butter.

played
The

-

firms

their

an

ease
are

Even

world-

a

rapidly

so,

power

ex-

due to

undoubtedly

been
uccu

largely
icigci.y

competitive
ented
represented a bidding for labor, which in turn
compromise- has been one of the causes of the

-

between

rising

trend

those in favor

same

of firmmeasof firm mfas-

mirrbasinrf
purchasing

of

At

wages.

nn-u/pr

has
has

t hos

h

considered

Einzig

official

are

not like-

ly to affect the volume of installment
cause

selling to any extent beinterest rates paid by buyers

in

any
T*

It

A

t

any

of

so

Vz%

would
-

difference.

'

:

•

reasonahiv

\n A

safe

inrhipprl
induced

°f leaSt resistance in face of wages

Any really substantial tax

a°tS nis.
hi

to
Mr-

assUme

Butler

by

inflation.

It

a
is

taxation,

but

in-

any

in the cost of living is
bound to divert votes to the So"

creas<;

cialists-

" would, be politically
assume that elec¬

shortsighted to
would

be

grateful

further rise in the cost of living

membered

for

tax

on

liable

to

the

form

of

higher

the

the

higher bank rate to

markets

the

that

Vz%

failed to produce any

in recent months.

men

etiological

effect

of

The

such

ments by Government spokesmen
and of official slogans (such as
"Invest

afraid

in

success"

"Don't

or

Opinion

in

prepare

jor tax

Budget.

claims> in tbe certain knowledge hood of

prosperity") must have
contributed in no slight degree to
the
is

boom-like
being

now

aid

atmosphere which
with

corrected

the® h?gher ba^k

of

Possibly

the

guarded

official

display

of

duced

higher interest rates

are

not

5

vp

u 1

vnfp

the ground

an

This announcement is neither

an

The

chequer, on whom the final de¬
cision rests, to decide
in favcr
of the increase. According to one
school

ject

of

offer to sell

nor a

solicitation of an offer to buy any of these Shares.

offer is made only by the Prospectus.

the

thought,

4,380,683 Shares

ob¬

main

to strengthen sterling in

was

General Motors Corporation

face of its

prolonged and persistent
tendency in the foreign ex¬

weak

markets.
According
to
another school, the move was di¬

change
rected

the

against

Common Stock

rapid

unduly

expansion of credit which threat¬
ened to
accentuate the prevail¬
the
to

According

national economy.

third

a

school, Mr Butler
the

raise

cided

to

order

to

bank

concessions in the budget in
without

running

such

the

Eastern Standard Time, on March 7, 1955, as more

tax

fully set forth in the Prospectus.

April
ac¬

unduly

by

of

release

a

in

risk of

inflation

centuating

Rights, evidenced by subscription warrants, to subscribe for these shares are being issued by
the Corporation to the holders of its Common Stock, which rights will expire at 6:00 P.M.,

de¬

rate

make

to

able

be

($5 Par Value)

of

undertone

inflationary

ing

purchasing

Subscription Price $75

power.

a

Share

Beyond doubt, the weakness of

sterling after the turn of the year
has
been
unusually
prolonged.'

the
the

Sterling is usually firm at
beginning of the year after
termination

wheat and other
Higher interest rates
expected to attract a

cotton,

ports of

products.
now

are

The several underwriters may offer shares of Common Stock at prices not less than the Sub¬
scription Price set forth above (less, in the case of sales to dealers, the concession allowed to
dealers) and not more than either the last sale or current offering price on the New York Stock

im¬

seasonal

the

of

of

Exchange, whichever is greater, plus an amount equal to the applicable New
Exchange Commission.

York Stock

from

funds

certain

amount

abroad,
sterling

of which
is expected to
become
It is doubtful, however,

firmer.

this

whether

object alone would

inflict

Chancellor

the

induced

have

of

result

a

as

to

Copies of the Prospectus

trade the inconvenience

on

be obtained from only such of the undersigned as may legally offer
compliance with the securities laws of the respective Stales.

may

these Shares in

higher interest rates. After all,
is sheer self - deception
to
a firmness of sterling
by

it

achieve

attracting

money"

"hot

abroad.

itself

from

would

not

affect the

basic position, and

any

influx

of

gold

would

have

In

this

resulting

its

from

counter-part

corresponding
Britain's
foreign
a

it
in

increase of
short-term in¬

The
bank

only
rate

which
in

would

payments

through

costs

the
be

bringing about

tion
of

in

and

excessive

This result

higher
flation.

or

a

a reduc¬
curtailment

consumer

can

even

There

demand.

be attained if the

bank -rate

checking

DILLON, READ & CO. INC.

can

CO., INC.

THE FIRST BOSTON CORPORA TION

GOLDMAN, SACHS & CO.

in
moderating in¬

LOEB & CO.

HARRIMAN RIPLEY &

KIDDER, PEABODY & CO.

LAZARD FRERES & CO.

MERRILL LYNCH, PIERCE, FENNER & BEANE
STONE & WEBSTER SECURITIES CORPORA TION

LEHMAN BROTHERS

SMITH, BARNEY & CO.
UNION SECURITIES CORPORA TION

succeeded

be little doubt

WHITE, WELD & CO.

HORNBLOWER & WEEKS

DREXEL & CO.

that this

objective played a more
important part in Mr.
Butler's

PAINE, WEBBER, JACKSON & CURTIS

SALOMON BROS. & HUTZLER

decision than the desire to bolster
up

sterling

with

the

aid

of

at¬

WERTHEIM
..OC
&

tracting foreign short-term funds.
:

The stability of the British price

level during a
54 gave

way

CO.

Incorporated

the

achieve

could

improvement

of

balance

in

way

increase

genuine

a

MORGAN STANLEY & CO.

BLYTH &

debtedness.

great part of 1953-

in recent months to




February 9, 19d5.

likely

With Dean Witter Co.

Ex¬

the

more

might

to cause much damage to business
in existing circumstances,

motive which in¬

Chancellor of

the

the

rate,

have made the increase superfluous.- In any event, however, the

divided

is

a

attitude

General Election later of the tax concessions would cause Spring Street.

a

noteworthy

London

main

be

of

effect.

about the

psy-

pronounce-

inter¬

increase

in

rate

seems to be somewhat inconsistent
with the over-buoyant optimism
displayed by Government spokes-

discounted

had

All

re-

brake

bank

vention unnecessary at this stage.

extent

be-

polling day.

The application of the

conces-

would release purchasing
power which, if superimposed on
?he existing inflationary tendency,
is liable to cause a fairly substantial rise in the cost of living,
7he disinflationary effect of an
increase of the bank rate by % %
i.s bound to be moderate. While
^ might prepare the ground for
minor tax concessions, it is doubtful whether it. would be sufficient
to offset the effect of really substantial "electioneering" tax cuts.
From a political point of view
the level °f the cost pf living is
much more important in Britain
than the level of taxation. We
bave all grown used to the existhigh

a

(Special to The Financial Chronicle)
lfimanfi
concessions received in April and
wnnlri
for
thp
r,nvprnmpnt
foTma- would yote for the Government , L0S ANGELES, Calif.blames
concessions in this year's some slx months later'
In }he K. Steel has become affiliated
Admittedly the likeli- meantime any inflationary elfect with Dean Witter & Co., 632 South

inai

r

ex-

The which would be

sions

tors

^to

makes it politically

picture has, however, another side,

inS

Muebced

check

to

an

make

not

-

decSion

^ pri^Hly
desire

high that

case

the

n^'»ftl2 most industrles t0 take the lme
Dr. Paul

Higher interest rates

time the expanding trend of
power

considered preferable
by applying conventional

trol rather than restoring specific
restrictions on installment selling,

reic-

their

inflationary ef-

methods of general monetary con-

increase

for

to

do-

no

was

with

banks has
uuniva

- sponsible

It
so

are

able to obtain credit from

not hostile

it or discourage it.
important to counteract

extent its

some

important

part in it.
which
business

popu-

check

was

feet.

tea, meat

as

re-

buying,

Government is

sire

expected to attract funds

several-a rising tendency.
It is true the
British ^ rise was largely confined to food-

the

growing

development and has

to do
weeks

the

installment

this

likely to become firmer.
Warns, however, of the danger of "hot money."Eng.—After

of

undertone

demand

The

from abroad and sterling exchange is

•LONDON,

the "extra

from

larization

noteworthy effect, since it had been expected. Says higher

any

inflationary

*

year

v-pedient to reduce taxation.-

v

9

WITTER

10

The Commercial and Financial Chronicle...

(706)

nonpower features for
initial appropriation is

Paget Sound Utilities loin to
Assure Adequate Power in Area

benefits

joint planning and comprehensive,

"The'

PUD's

coordinated development of power

Council

requirements.

Among the other projects which

Light Company

Council
is

tion

under considera¬

has

water

a

of

ment

through

develop¬

storage

10,500,000 acre-feet

some

of

construction

the

a

dam at Mica Creek
upper reaches of the Co¬

$250,000,000
the

on

lumbia River in British Columbia.

important and con-, previously dissipated in conflict
power-wise to cooperative action which seeks
in 1954 as far as the Puget Sound- to provide the Puget Sound-Cas¬
Cascade area
is concerned
was cade area with adequate electric
the
establish¬ power at the lowest possible cost
most

of this

structive development

—to

the

area's

Sound

Puget

com¬

inherent in

the

of

posed

mu¬

nicipal

development

resources,

sys¬

&

The

representing

Cascade

area

—

with

tionships.
the

1,700,000

the

that

kilowatts

diversified

outlays in

seeking to resolve their common

dollars.

cooperative basis
for the common good, and thus
creating the healthier "climate"
essential to their own well-being

of half

on

The Council

Puget
would have

tion

economic

chronic

power

solid

founda¬

anticipated

for

growth.
The
shortages and the

industrial

stunted

growth of the
the conflicts and con¬

past, and

troversies of all sorts

development

to future

as

the

of

Pacific

Northwest's power resources, made
it abundantly clear that depend¬
ence

the Federal Government,

on

others, for an adequate power
supply for the Puget Sound-Cas¬

or

cade

is suicidal.

area

ent soundness and

Council

that

is

strength of the

derived

thereby

the

The inher¬

Puget Sound-Cascade
their

own

otherwise
to

the

from

fact

of

the

people
area

control

economic destiny, which

they would

be

unable

do.

The basic merit

rests in

the

of

the

dedication

of

Council
efforts

tric

projects which

700,000 kilowatts.
that the first

project
the

Council's

and

the

the

to

the

on

the Columbia

the

the

necessary

studies.

If,

PUD

build

pected,

through

islation, to

appropriate

assume

area

securities

purposes

all

having

been

sold,

this

oj record and is not intended
of

offers

to

buy,

such

an

offer of,

electric

Puget

of additional electric power

Tacoma

leg¬

appears
or

only

Snohomish

Utility
of

cause

solicitation

common

location,

of:

Under

the

the

circum¬

immensity of the

economic

advan¬

availability
of
atomic
commercial use, and

for

factors—it

is

charting of

the

area

a

can

have

assurance

Therefore: It is resolved by
City Light, Tacoma City
Light, Puget Sound Power & Light
Seattle

Company, and the Snohomish and
Chelan

Members of New York Stock
Exchange
Members of American Stock
Exchange (Assoc.)
York

(1)
their

February 3,

Public

Utilities

Districts

that:

4, N. Y.

of the

1955

the

.

there

other

studies—

potential
to

sites

These

utilities

agree

responsibility to
total

take

it

the

of

and

lished

to
be
contractual

the

to effectuate

sought.

so

in

era

electric

far

this

as

cerned.
how

We

want

public

show

to

them

private

and

power

work

together

of

adequate power supply

an

to

assure

an

possible cost."

Continued

from

2

page

the objectives

The

Security

(The first comprehensive

I Like Best

report of the Council's consulting

engineer will be available short¬

2lA times the national average at
less

rates
*

These utilities agree to

(5)

and

ways

—on

means

ex¬

how

to

as

broad

a

foster

basis—they can best
expansion of the econ¬

an

omy—aid in the creation of
ppki«TTA the

more

and other

pvo^nPonqi

growth potentials which

Puget

Sound-Cascade

area

set

the purpose of

For

the

objectives

accom¬

be

mutually

from

time

as

may

determined
upon
time, these utilities

to

establish

to

agree

above

as

forth, and such others

the

"Puget

these

council

utilities

shall

have

representation.

equal
The

"Puget

Council"

is

cooperative

a

the

under¬

good and

common

erning bodies of its participating
utilities may authorize.

av¬

large load building program and
large

growth
were

1954 and

are

predicted.
share in

be

can

Earnings

about $2

a

estimated at $2.25 a

share for 1955.

Within five years,

earnings could be $3 a share with
a
$2.40 dividend and a possible
value above $50 a share.
The

company has above aver¬
stability since about 54% of

revenues

from

come

business and only

to

industry.

brings
stock

new

a

sarily

be

the

with

Power

once

to

common

20 % of revenues.

merger

Water

so,

quality of the
improved since it

through

over

The

residential

a

12% from sales

The

stock is further

may

Utilities

Sound

the

one-half

than

Puget has embarked on a

erage.

age

(6)

Washington

formerly

proposed

again be activated.
proposal would

If

neces¬

higher price than
Puget's current market price.
At

the

at

a

annual

meeting

to

be

held in the spring, Puget will vote
on

50% stock dividend.

a

On the

shares, a dividend increase
to possibly $1.20 a share (equal
to $1.80 on current shares) is con¬

new

Secretary of Interior Supports

Project
The

contemplated

program

by

sidered

utilities composing the Puget
Sound Utilities Council is strongly

would

supported by Secretary of the In¬
terior
McKay
in the following

a

possible; the current rate
equivalent to $1.14%.

be

With all these characteristics of

5%

yield,

language quoted from his letter of

very strong com¬
equity
permitting
growth without dilution in one of

April

the

"I
a

news

cerning
of

1954:

23,

have just

received

release

of

a

of

copy

April

13

con¬

meeting of the officials

a

electric

several

utilities

Puget Sound region.

of the

...

"May I congratulate all of the
participating parties in this meet¬
ing.

I

your

proposal

keenly

am

believe

interested

btcause

such

that

interest

the

utilities

local

value

greatest

The Federal

the

1

active

sponsible

re¬

of

part

be

can

the

to

and

the

on

in

nrnny

of

the

Northwest.

Government, through

Army Engineers and the De¬

the

of

partment

Interior,

has

played and will continue to piay

active

very

it

but

in the North¬

part

cannot

nor

should

assume

the entire burden

plying

the

positive

is

the

it

of sup¬

needs.

power

action

Your

very

best

for the good of
you may

the Northwest and
rest assured that if there

is any way that my office or any
of the agencies for which I am

responsible

can

cooperate with

assist

we

will

you,

be

ice

importance

Sound

Utilities

endorsed in

growing

merger

dividend,

offer, and

evidence

a

50%

stock

the

stock has strong
speculative and investment attrac¬
tion.

Boland, Saffin & Go.
Stresses NJ.'s Charms
Boland, Saffin & Co., 20 Pine
Street, New York City, specialists
in

is
a

New Jersey municipal bonds,
mailing packages of Charms to
large list of municipal bond

prospects

to

emphasize

the

fact

that many
nationally-knovfn firms,
of which the Charms
Company is

have found

one,

ideal
and

New

place to locate

Jersey 'an
to grow

...

The promotion

prosper."

ac¬

companying the candy points out
that municipal bond income, like
Charms, "is carried in many pock¬
ets

all

over

the country.'

or

delighted

Form Sun

Valley Inv. Co,

and

SUN VALLEY, Calif.—Sun Val¬
the " Puget ley Investment Company has been

Council
are

and

its

forcefully

enthusiastically

numerous

local

news¬

formed

with

offices

at

8141

Fernando Road to conduct
rities
est

business.

A.

Baker,

Officers

a

are

President;

San

secu¬

Ern¬

Robert
Laun,
Vice-President;
Charles
Forsch,
Treasurer;
and
Milton

editorials. These editorials
a widespread public ac¬
ceptance of the enlightened and Herman, Secretary.

paper

serv¬

and far-reach¬

of

objectives

emphasized

rapidly

in the country, the pos¬
of
a
higher value on

(Special to The Financial Chronicle)

The significance

ing

most
areas

sibilities
a

a

stock

mon

to do so."

is

purposes—including its in¬

new

here

se¬

projects

and

care

electric

a

out

and

determinations

nature

scope,

developed

declared

power needs
of the Puget Sound-Cascade area

for all

is

power

relationships needed to be estab¬

west

that

1868

and

to

as

essential

to

possible
energy

of adequate electric power at the
lowest possible cost;

LIBAIRE, STOUT & CO.

agree
that
the providing of

assembling of other pertinent

data

a

only through
comprehensive,
coordinated resource development
program
and cooperative action

Underwriter




a

operating problems and
relationships;

costs—the

other

$4.12% Per Share

New

growth

tages of large power projects—the

January 15, 1965

(Par Value $1.00 Per Share)

Broadway

have

present-day high construc¬

tion

80,000 Shares Common Stock

50

Districts

size of future power requirements

the

Established

Light,
Puget

Chelan

and

geographical

Whereas:

.

EISELE & KING,

City

contractual

stances

—the

100% Plus Accrued Interest

PRICE:

Seattle

City

the

and

Jot

_

"By advertising in the East, we
hope to show these interests that

at the lowest

involv¬

years,

Light, the
Power & Light Company,

Sound

the cost of the

off.

load

to

that

shortages and bicker¬

between public and private
power has tended to scare them

ing

area

po¬

economic growth of
Sound-Cascade
area

Whereas:

(Series A)

PRICE:

order

growth

of

ing estimated capital outlays of in
excess
of half a billion dollars;

$500,000 6% Convertible Debentures
Due

in

anticipated

during the next 10

—

about power

can

the

banking and fi¬

opportunities in the Pacific North¬
west.
Talk in the past few years

the

healthy

watts

ex¬

industrialists and

competent, independent engineer¬

surveys

advertis¬

Puget Sound Utility group is con¬

utilities

step is

in

nancial interests about investment

ing assistance for the making of

the

at

will require around 1,700,000 kilo¬

securities.

15, 1955

cost

It is

the

Burroughs & Son, Inc.

Dated January

assurance

power

excellent

its

certain

i. P.

must have

special community of interest be¬

advertisement
as

Pacific North¬
development has

possible

Public
These

or

such

Pool.

taking for

the

the

the project

These

first

entity

group,

Power

Utilities

Sound

interested

in the East to change the
thinking of Eastern businessmen,

has power to act only as the gov¬

Whereas:

feasibility, the Chelan

would

Interior

tentials;

engineering

with the Federal Government

(4)

on

resource

achieve

project is finally determined to be
of economic

the

Under

emphasis

cade

prelimin¬

anticipated,

as

In

stunted

Whereas: The Puget Sound-Cas¬

permit and is currently mak¬

ing

a

other

any

levels;

kilo¬

ary

has

of

Northwest

been shifted from Federal to local

River, for which

PUD

the

as

the

assume

Puget
is

ing

Sound Utilities Council" on which

west

development

Chelan

been

Department's partnership concept

National

the

has

Whereas:

under

600,000

the

presently

by
insufficiency
of
supply and recurrent short¬

lowest

the

Reach

cost

years

cepts would

be

functions

existing interrelated

well-being of its peo¬

area

adequate

Rocky

proposed to

plishing

Administration's partnership con¬
watt

-

ages;

appears

constructed

not

be

may

by other agencies and

the Council:

of

possesses.

past

major hydroelectric

be

to

now

is

and prosperity,

power

aggregate 2,-

It

it

which

programs

undertaken

the

of

hydroelec¬

new

low

Adequate

Whereas: The industrial growth

The Council has currently under

study and review

and

ple;

opment by the utilities concerned.

a

powerwise

rapid

substantial

into being so

came

the

area

such

Sound-Cascade

and that of the people of the area.
that

With

growth, which necessarily in¬
volves the construction of large
power projects, it is obvious that
the lowest cost power for the area
can only be obtained through joint
planning and coordinated devel¬

a

opment

and vital to its

and

load

problems

at the lowest possible cost.
(3) These utilities believe their
plans can be dovetailed into any
broader regional resource devel¬
,

economy, progress

billion

a

be pro¬

vided

power
is
area's energy base

involving estimated capital
excess

requirements will

jobs and larger payrolls—and heln

electric

electric power during the next 10
years,

so

power

plore

and

growth;

Whereas:

additional

of

prospects for rapid

ceptional

plan and work to¬
that the area's electric

gether

the

of

neighboring Cascade area has ex¬

economic growth of
require
around

from the maximum

ly.)
Objectives

of

Whereas: The Puget Sound

com¬

anticipated

declaration

the following

Puget Sound Utilities Council

will

area

utilities

era

interests,

is

It

healthy

this

in
Sound-

new

a

of

the

from

objectives in

Declaration

problems and basic interrela¬

mon

obtained

its

paragraphs:

geographic

entity.

community

a

approach to the achievement
of adequate, low-cost power and
the economic growth of the area,
evidencing

natural

a

Therefore,
the utilities serving this area have

enlightened and soundly prem¬

as

power.

from

result

of facilities and will

use

quence

Puget Sound-Cascade area

economic

arid

ised

and

electric

of

and

savings

will

accordingly

as

Specific Objectives of the Council

be

constitutes

constituting the ultimate in the
Administration's
part¬

electric power in the Puget

pertaining to the
for the gen¬

au¬

of

National

an

studies

eration

cision.

h t

endorsed and widely supported as

as

under

conduct

to

fully preserved in their re¬
Perhaps the best idea of the
spective service areas, and allaction taken is by unanimous de¬ Puget Sound Utilities Council can

Comp a n y.
The
Council has been enthusiastically

—

proposed

ties

Power

nership concept

and local

Energy

of atomic energy

use

tonomy of the participating utili¬

and
Sound

Puget
L rg

identity

signed and

Atomic

agreement

an

is

it

certain

the

with

on

Utility

Districts,

Frank McLaughlia

carried

are

individual

Chelan

Public

Commission
which

the

to

which

economic

at the dam

The Council has also

advantages,

resources, and

the

submitted

power

in the maximum
present and future
The activities of the

facilities.
Council

amount of power

tial

site.

of

tems,
the
Snohomish

of

result of providing such

as a

upstream storage, plus a substan¬

and

utilization

of

in the United
the Columbia

power

section

River

joint planning and co¬

ordinated

prime

States

other

and

and

Seattle
Tacoma

and

industrial

vast

1,200,000 kilowatts of addi¬

tional

the

of

possible

make

would

dam

about

growth potentials and to effect the
substantial savings and benefits

Utilities

Council,

realization

the

foster

participating

(2)

It is indicated that the construction

of

on the part
utilities.
As
stated by Dr. Paul J. Rower of
the Seattle City Light, Chairman

the

mutual

These utilities recognize the

-

cooperative approach
of

,

Council purchasing the power pro-)
duced
in excess
of the
Chelan

Group of utilities, composed of Seattle and Tacoma municipal
systems, local public utility districts, and the privately owned
Paget Sound Power & Light Company, form a Council to
achieve cooperation in expanding their power resources. Objec¬
tives approved by Secretary of the Interior.

ment

growth—and they intend

to do so.

and with the other utilities of the

the

The

dustrial

in the President's current budget-^-

By FRANK McLAUGIILIN

President, Puget Sound Power &

which an
requested

Thursday, February 10, 1955

I

Volume

181

Number 5402

...

The

Commercial and

Financial

Chronicle

(707)

\

11

•

derly

Utility Financing

er

By ELDRED II. SCOTT*

a

introduce nuclear power facilities in

become

major factor.

a

I ities

opportunity to
orderly manner, and

Reviews alternative

cost

large

studies

,

„

-

-

...

..

...

.

■

.

stake

and
it

ies

The

in

the

industry

sense

of

capital

but

in

the

profitable

a

in

not

Technological
continuous
There

a

dynamic

best methods of productive activIt will
ity. it will not be a case of send-

gle

producing
electricity.
A

station

haDDen" i^necessa^y

bigTo

ifanv thin a

cen-

past and they wju continue to be

con- < s0

in

the

and

have

been

a

individual

or

newer

including fixed charges

of producing

record of a large metropolitan
utility which includes all charges,
(Table II.)

and

future.

mLing eleS

lnvestment funds-' '

to

t0

see

my

in the electric industry

many

predictions

Past per-•

formance says it doubles its out-.
put every 10 years and just about

and

of

its commercial

all

of

the

pundits

within

without the industry have ex-five-years, 10 pressed themselves as seeing lityears,
ad! in- tie s owing up from this ratej in
H.

Scott

meantime

industry
billion

must

each

obtain

year

about

from

agree with their estimates.

our

to meet the insistent demands that
are
a

already

joint

on

It is

us.

responsibility

become so bullish that Mr. Roosevelt s old expression has appeared
with a new slant—"The only thing

sort of

a

the

of

se-

curity analyst and utility financier
to help protect the funds
already

have to fear is lack

of

fear

Most all the published forecasts
have been expressed in kilowatts
of load or
capacity and in kilo-'

coming into the business

for expansion

now.

Over the years your
society and
others in the business of invest-

watthours of annual sales
pub

These

are

ord

you

of

Please let

that the historical

compared with slightly over 100,000.0°0 kilowatts at the start of

me

rec-

educational

job

to

per-

This applies
equally to its
possibilities and its limitations. It
is hard to maintain a

*"~*Paper
the

presented

by

Mr. Scott

electric

facilities

power

meet

ever

alternative

cost studies have

had

GVery

An-

Opportunity

to

little place

General

I

Investment

depreciation,

mission problems.

and they

clear picture

higher

page

of

are even

attention.

aiways been
additional

Energy

one

of

for

few

interest,

To obtain this

efficiency it is

generating capacity at

kilowatthour

a

mere ^plant,

alternative

a

ing

there mlant

tnus

us

to concentrate

de-

is

It

at

the

power

cation.

it is necessary, therefore
tnereiore,
necessary

,

to go to the Cost Engineer to get ;

This announcement is neither

an

The

a

Also,
r

necessary

large amount of
a

single lc-

because

Continued

offer to sell

nor a

solicitation of

an

offer to buy

any

of these securities.

NEW ISSUES

'

/

February 9, 1955

American Water Works Company, Inc.
225,000 Shares
Cumulative Preferred Stock, SV2% Series
(Par Value $25

per

Share)

Price $25

in

an

of Additional Funds

Share
date

of

issue

be'

or-'

540,894 Shares

per

Share)

Investment

(Next 30 Years)

1975

$78

$110

15

21

3

6

9

_

from

Common Stock

6

__

per

Plus accrued dividend

The

Company is offering to the holders of its Common Stock the right, evidenced by
Warrants, to subscribe at $9.50 per share for the above shares of Common

transferable

Stock at the rate of 1 share for each 5 shares of Common Stock held of record

February

8, 1955.

$9

$21

and

25

35

13

Preferred

Long-Term Debt

_

_

_

32

45

per

The several Underwriters have

unsubscribed shares

$23
^Approaching S3 billion

Northeastern Water Company has advised the Company that its Rights to
subscribe for 325,000 Shares of the above Common Stock will be exercised.
Subscrip¬
tion Warrants will expire at 3:30 P.M., Eastern Standard Time, on
February 23:J 1955.

$30

10

From Investors-

Common

*$57

$80

Common Stock

The

Plant

as

agreed, subject to certain conditions, to purchase any
and, both during and following the subscription period, may offer

set forth in the

Prospectus.

year.

TABLE
Power

Cost

Per

Prospectus relating to

the Preferred Stock,

the Prospectus relating to the
of the several
legally distribute them in such State.
or

Common Stock, or both, may be obtained in any State from only such

II

Kilowatthour

Underwriters, including the undersigned,

*SoId

(Including All Fixed Charges)

as may

'

I

—(Cents per kwh. Sold)—
1943

1948

1953

'

•

•

'

Increase

1953/1948

Energy expense (fuel) J.
Operating and maintenance--

.255

.463

.418

.092

.152

.142

Fixed charges

.232

.226

.347

+ 54

.579

.841

.907

+

12,530

12,880

12,100

18.90

32.70

W. C. Langley & Co.

The First Boston Corporation

30.50

'"Total cost
Btu

per

kwh. output

Fuel cost

*It
sold

should

and

pressed

T

not

due

(0)

million Btu

per

—10%
—

7

8%

Glore, Forgan & Co.
W. E. Hutton & Co.

Hemphill, Noyes & Co.

noted

that

to

losses

of

the

energy




above

The

unit

figures
cost

is

are

expressed

in

kilowatthours

thereby higher than usually
in transmission each year.

ex¬

Hornblower & Weeks

Paine, Webber, Jackson & Curtis

Stone & Webster Securities Corporation
be

those produced.

of

more

on page

offering is made only by the Prospectus.

required

$32

_

taxes,

if the actual cost trends of produc-

meeting the
thus

techniques

do not combine the fixed charges

The problem has

aemana>

been

these

receiving front "duction to give

demand

aaamonal
have

industry. With the

Atomie

accounting

(Par Value $5

Internal Funds—

_

installation of larger, more

costs of pro-

the electric

advent

~~

1955

Surplus

The

studies have become all important etc., with the direct

jn

Estimated Source

(Gross)

Atomic Energy Generation

.

efficient generating units, sometimes remote from load centers,
has brought with it many trans-

(In Billions of Dollars)

Depreciation Reserve

Have

Been Rising

Investment in Electric Utility
Industry Projected to 1975

Utility Plant

Costs

introduce,

nuclear power facilities

TABLE

From

Production

plant

increasing demands

Nearly indicates that there will

before

New

Heretofore

*****
and

Transmission Limitations of
KWIIR

The vast projected expansion in

per-

York Society of
Security
aiysts, New York, Feb. 2, 1955.

Have

become important

I have expressed my future
in dollars of investment
because I know that is the unit
of measurement with which you
deal and are most fumiliar. (Ta-.
hie I.)

form.

proper

Cost-Studies

Rprnmp Tmnnrtant

"gures

anyone in utility management into the belief that with
the introduction of this new
fuel,
atomic energy,
that we do not
an

advances

growth.

receiving

attention.

much

so

Alternative

1955.

always securing funds has

not lulled

have

Inflation has bested

the units that the

Sreat majority of the people connected with our industry are most
concerned. Generally they see in
engineering
progress
that
has 1975, or 20 years hence, a capacity
marked our growth
industry using °f about 350,000,000 kilowatts as

assure

ve
c
ter of alternattve costs

or out-

ments have paved the
way for our
operating and engineering people
to obtain funds to make the
steady

conventional fuels.

to tte

itself."

invested and keep additional
amounts

To do

s0 at this time would be most inopportune when all forecasts have

$3

investors

money to make money."

and

applications in

Eldred

increase.

this

•

recurrent theme of future growth

have

been

kilowatthour at the

a

power plant, has been increasing,
This is shown by the 10-year cost

SkdutiWy,__At-tWs .to add seems;wh0"e sUuationTsTo see this mat- jechno'lo^cal
pointy
mat" technological
iTduATy " redundant
"voice to'the "ever ltiore to the point—"It takes who]c situation is to
promises

the

It will require the joint efforts utilities have joined into several g00d. It is well worth experimen* " and urderstanding of the financial friendly competing groups to solve ,tation and study from the cost
"Growth" Has Been Generally r ^alyst. investor, utility manage- its many problems.
aspect alone. Contrary to popular
ment and
Predicted
employee, and of those
The onlv strange thing in
ine only strange t ing in t
the belief'
Production costs continue

the $30 billion

There

over

plants now being built,
other factors however the-

Due to

in-

company

added

by one-half in the last
25 years down to about .75
pounds
per
kilowatthour in one of the

idea flashing
of a sin-

an

in

kilowatthour

per

watthour

pace,

"heroic"

person-

progress

has enabled them to dethe pounds of coal
per kilo-

years
crease

has been

steady

no

operating

measure

coal

equipment

total cost,

progress

at

of

veir

effecting a rapid revolution in the
Based on the nriop. rprord nf
art.
Instead progress has been .'the
past 10 years
using mainly
the work of the entire industry, coal as a
fuel," the appearance of a
This has been our approach to the
competitive fuel such as atomic
problems of atomic energy.
It is energy for the generation of steam
not
strange that almost all the for

f

tral

we must

suddenly from the brains

n

few comments

New

This limitation

ventions—that of

the

of

use

utility

as a

all comers.

method

or

to provide for growth.

is

growth will
This would be

of

manner

a Controller carrying Work Order
approval responsibilities as about
90% of our Budget each year is

new

investor's

predicted

static

.

the

plant

usually

pounds

area of decision has meant
certain amount of frustration to

a

nanPr! ad numerous talks spective on this subject because ing good money after bad money
mtro?
+C ~teJrhrllca1' po* 0± the many dramatic war and because electric utility investt
•
a
*a elY
?
GSu
appllcatl0"s jn addl~-ments have been profitable in the
atomic energy.
There have been lion to ^1?ie use in
its
and

to

as

nel

of the

investing

develop this

larger.

sense

heavier under atomic energy.
.

to

energy.

conservation

now

being made, and predicts fixed charges will become relatively
,,r/1

of

make

the

Power

alternative cost stud-

of serving but

of

his estimated appraisal of
the
to year trends in costs.

Admittedly

we do make

encourage electric utilcontinue
and
intensify

to

present

hardly

^can

expanding

that it is to the

me

business

new

profitable or not.
We
have limited opportunities to influence the market.

serve

their efforts

every

plants

an

the

be

contracting industry.

interest

public to

source

an

that

will

to

or

seems

greatest

that forced obsolescence of
existing power

-.

,

static
It

Concerning the effects of

output be accomplished, there will be

cisions whether

hardly, become a
;It proves the eco-

; industry will enjoy a more rapid
rate of technological advance than

Controller, The Detroit Edison Company

atomic power on the Nation's $30
billion invested in the electric
industry, Mr. Scott points out
if the predicted accelerated
growth in electrical facilities and

that forced ob-

can

truism

nomic

And Atomic Pom
,

manner and

solescence

'major factor.

i

!

White, Weld & Co.

34

12

The Commercial and Financial Chronicle...

(708)

Thursday, February 10, 1955

t

the

Depression Fears Groundless
and

Financial

the

as de¬
made in 1953
Industrial Con¬

National

cash,

as

busi¬

homes,

insurance,

ness

possessions

of

are now

offsetting

are

families of the nation

Half the
have

now

net worth of $7,500 or

a

A sixth of all families own

more.

than

more

$30,000 in net assets.
tenth of all families

Less than
mountainous

our

Americans

prosperity, more

depression

a

—

than

at

of

is

off-

the

since

elections

year

This

1937.

little

a

rious,

cu¬

when
to

stop

you

about

think

Cabinet

Those

for

provision of

months

it

would

standby plans for

It has plans for

highway

new

the

that

said

motion huge

which
to hun¬

employment

give

three

or

programs

of persons.

dreds of thousands

ate

two

set in

can

government

building elabor¬
systems. It is

nation

needs

up

to

it. Perhaps it's

$70,000,000,000 worth of new roads

because we've

whose

passed

just

the 25th anni¬

of the

versary

market

stock

crash and
Donald

jured

I.

memories
being

Rogers

those

1930's

bleak

with

kitchens
000

con¬

Can

we

return

days of the
lines

bread

an¬

early

and

soup

Oakies

and

and 12,800,Americans?

unemployed

What these economists don't say

is

that

the

effective

merous

the

at

has nu¬
devices which,

government

command

of

officials, can
be used as double-edged weapons
either to fight inflation or to ward
off recession.

Probably

minds

would

be

has

been

de¬

schools,
projects and

bridges,
irrigation

hospitals,

new

numerous

other public works programs.
that there is

see

employment.

closely

In

with

high level of

a

this

it

government

works

depart¬

When the De¬

ments and bureaus.

classified

becomes

government

tracts

are

"criti¬

as

defense

channeled

to

plants in the afflicted community.
These

the

are

built-in

made

stabilizers

another

avoid

forting

principal
1929.

think

to

of

man-

to

help

It's

com¬

these

things.
less troubled if we took time to They're like cops on the beat pro¬
reappraise the amazing array of tecting your property while you're
safeguards now available to pre¬ occupied with other chores.
vent, or at least forestall, an eco¬
But actually it's a little silly to
nomic catastrophe like the
one
compare our economy today with
that followed the 1929 crash.

Today there
izers

which

fective
These

or

that of 1929.

built-in stabil¬

are

either

were

ef¬

less

not in existence in

1929.

National

least understood balance wheel of

al

Federal

It

economy.

Reserve

create money,
from the nation's

can

withdraw money
business machinery, expand credit
limit it and

or

dous influence

of paper

exert tremen¬

can

the market for

on

bonds—those

government

pieces
that represent the public

indebtedness

of

all

taxpaying

Americans.

so

that if

a

bank should

fail—an unusual event these days
—the
depositors will get
their
money

(3)

intact.
The

Securities

and

Ex¬

change Commission, which polices
all

securities

and

the

stock

ex¬

changes with the result that there
are
few, if any, worthless stocks
offered for sale through legitimate
and

established channels.

(4)

The

today is 241%
in 1929—that

Council

of

Economic

Advisers (now consolidated in

one

American

time goes
on there will be an increasing in¬
vestment
in
foreign enterprises
by Americans with, it is expected,
happy results at home.

Product, that total

measure

of

of goods and services,

is up

by 241%.
And the disposable

Americans—before

by 204%

only 56%

us

to live than it did in

these

facts

safety

of
up

1929.

over

Yet it costs

Beyond

income

the

there

factors

protecting
depression.

us

eco¬

are

natural

More Americans

One,

mounting
interest by economists, is the mi¬
watched

with

raculously rapid growth of the
tion's birth rate.
lated

that

Even

munists
It

It is

cutback

No

of

(5)

tion,
for

inflation

and

to

recom¬

counteraction.

now

calcu¬

supplying income to those laid

off.

(6) The Social Security Admin¬
istration, which aids an increas¬

ing
have
are
own

number

of

reached

incapable
living.

Americans

retirement

of

who

age

earning

or

their

The staff of the Economic Ad¬
viser to the President watches the
fine
balances
of
the
economy
with meticulous care and makes

recommendations to the President

uation




world.

world

we'll

brings,

sit¬

probably

national
personal income for defense or
foreign aid. In the wartime 1940s
we
spent about 25% for these

are

in

effort

an

But

economy

our

makes

us

prosperous.

Most

that

encouraging

no

how

matter

spends, the
age to dwarf his
what

makes

more

is

the

much

spree,

the

man¬

and that's

Consumers spend

than

business

combined

—

and

so

much

govern¬

three-

nearly

films.

ured

we

wouldn't

until

almost

be

the

that

quarters
of
the
total
national
spending.
As long as this keeps up, as long

All

these

new
Americans, con¬
all, will mean more and
employment for American

workers

In

their

as

some

not be

like

2000.

demands

so.

China

countries
In

are

this

for

met.

would

agricultural nations

and

India

or

in

eco¬

nomically unbalanced nations like
Italy, a whopping population in¬
crease causes problems.
But

within

free-enterprise
system we have built up a unique
version of capitalism. Ours is not
a system of
conservation, nor even
a system of production.
We are a
nation of buyers and suppliers.
The more we buy, the more we
have to supply — and the more
employment is created.
our

States has risen above three-quar¬
of a trillion dollars—an in¬

ters

crease

of

more

than

50%

since

they

to

ward

fortune out

a

in¬

bureaucrats

to Capitol Hill

up

Castle's. first

off

on¬

of Castle's book, "Bil¬

joyed
is

en¬

unusual advertising splurge in New
Chicago and Washington, and which

an

York and

selling widely in these cities.

Bureaucratic

Washington which is sensitive to any sort of
against the vested interests of Bu¬

outbreak

reaucracy, particularly
luxurious living as our

those offering such
foreign aid and propa¬
up its ears.

Carlisle Bargeroa

ganda programs, has cocked

Castle's

with

second

a

these

to glibly

managed
on

heard

has

It

before

attacks

them. Indeed, almost coinciding
Ellender of Louisiana has reported

out

ease

but

of

book, Senator

investigation which he made of
installations

propaganda

for

aid and

our overseas

Appropriations

Senate

the

There is

mittee.
which

lot of dynamite in his confidential case

a

Com¬

not reflected

is

the summary

in the summary

reports

he has made public.

But

is serious enough, particularly in its charges that the

laws laid down by

Congress in appropriating the foreign aid and

propaganda money last year have not been adhered to.

which
know

example, under the so-called technical aid program, by

this

government is supposed to supply the experts or the

how, it is actually putting
in

railroads

the

for such things

as

similar heavy projects in such places

India, and

as

up

money

Jordan.
Not

in

being

politics, Castle doesn't

that in the six

says
more

than $40
than half

"No

period since

year

mince

He

words.

any

the U. S. has spent

1948,

billion for economic and military aid abroad plus
billion dollars for

a

nation,

since

the

propaganda.

overseas

beginning

of

history,"

he

"has

says,

spent more money trying to win the friendship and confidence of

foreigners than

the United

75,000 miles of travel
Near

East

Central

and

States."

his

But

period of three

over a

and

South

study,

America

least, for his conclusion,

upon

him

convinces

accomplishment has been to make enemies.

our

based

in Europe, the

years

that

Some support, at

from the Scripps-Howard foreign

comes

<

Americans

their money as

continue. to, .spend
it comes in so that

and better cars,

homes, appliances,

and "things"—then
perity should stay with us.

pros¬

Feb.

worry.

They

say:

Denny,

who

serious

than

The

the

achievements

dous
ous

glamour¬

unknown fields to conquer.

Why be afraid?
the

last

A depression's

has

brunt

Castle's

of

been

ever

is

attack

engaged.
by

supported

lucrative

such

taining expensive
which

could

first

have

easily

PHILADELPHIA,
O'Brien

L.

Co.

has

Pa.—Joseph
been

formed

with offices at 1500 Walnut Street

conduct

a

general

Officers

securities

Joseph L.
O'Brien, President; Frank J. Kell¬
are

and

O'Brien, Jr., VicePresidents; Edward J. McGuire,
Secretary
and
Treasurer;
and
John Heron, Assistant Secretary
and Assistant Treasurer. All

formerly

of

Carr

O'Brien

were

class

Francisco

Stock Exchanges, have opened an
office

in

Honolulu

under the

rection of Albert L. Hoogs,

di¬

resi¬

dent partner, and Joseph T. Ahuna,

resident manager.

is

government

intellectual

enterprise

professors

and

their

of

cultural

our

jobs,

we
as

own

wares.

insist

Then

we

Paris

and

which

in

and

main¬

upon

London

also

illiteracy. We also maintain

"news"

a

nations the reports of the Associ¬

overseas

subscribe, not to mention their

newspapers

correspondents which they maintain in this country.
is

There

America

really nothing

was

the

first

on

it

disclosed there

was

new

in all this.

set-up it has been the

licans

Since the Voice

target of the

appropriation committees of Congress.
was

a

predilection

on

At

Communist

pro-Communist
These

likely

as

in

workers

the

voices

Republican

libraries
on

the

one

time

the part of the foreign

"Voice."
committee

anticipated

by

the foreign

you

can

Castle points

than

more

two

members

insignificant

an

appropriations sought for this work.
been

pro-

abroad, to have Communist

appropriation

not succeed in knocking

of

Repub¬

propaganda managers to place the works of Communist and

or

we

operate

Press, the United Press and the International News Service

own

The

sum

reduction

propaganda

would

out of the

would

have

in

their

managers

rest assured, and the net accomplish¬

committee members

would be nil.

out, however, that the Republicans, in office for
years,

show

no

disposition

to

really

remedy

matters.

is worth

He

Hooker & Fay, members of the
San

which

USIA
our

presidents,

in such places

service to duplicate to overseas

original requests,

Hooker & Fay Opens
Honolulu Office
and

highly

college

libraries

ment of the appropriation

York

the

Com¬

pany.

New

against

enjoyable

libraries in countries of 90%

and John T.

er

is

this

In
our

libraries

display

to which the

Joseph L. O'Brien Co.
Formed in Philadelphia

more

was

editors, particularly the eastern group of them because it affords

ated

thing to fear.

of Sunday,

papers

frankly just about the silliest endeavor in which

them

and

his

in

downfall of Mendes-France.

We're

just entering the atomic
age, yet we're hardly scratched
the chemical age or the electronic
age. Before us there are tremen¬

reported

6, that the "Yankee Go Home" attitude of France

which

Economists say there's no need
to

Ludwell

expert

they might, in turn, earn more—
as
long as Americans want new

popu¬

year

The

This is in the form

fact

economy

hunch

a

lions, Blunders, and Baloney," which has

Uncle

consumers

have

already rushing

more

what

move,

the

slaught.

our

spending is what makes

I

out

W. Castle who made
movie

volved

items.

by

Consumer wealth in the United
♦Excerpt
from
an
address
by
Mr.
Rogers before the Women's Bond Club
of. New York, New York City, Feb.
7,

home

of

For

the

in

USIA

met their master in the person

now

even

food, clothing and shelter

Unemployment compensa¬
the state-controlled set-ups

the Com¬

the

the

Agency,

a

government

spend 15% to 25% of

business.

tions

in

what

matter

to

mend

as

in

Information

States

people,

have

of Eugene

spending for defense.

more

the indica¬

be

in the lifetime
there will be a

here

anyone

sumers

or

will

is unlikely that

threat of

recession

long

as

abroad

are

lous

F.

there

so,

United States

na¬

1970 or perhaps
sooner, we will have a con¬
suming population of 200,000,000
Americans, if the present rate of
population growth continues. Un¬
til recently, statisticians had fig¬

our

on

govern¬

on

Some economists

spending.

Burns), estab¬
lished under the Employment Act
of 1946.
Its duty is to detect the

Arthur

man,

dependence

considerable defense budget in the

man-made

from another

American

made

clothes

1929.

mechanical

and

devices

more

have

students

believe this has been overempha¬
sized.

as

taxes—is

As

much and written volumes
economic

ment

Hardly, when the Gross Nation¬
the output

capital.

Economics

healthy.

Is this just inflation?

nomic

(2) The Federal Deposit Insur¬
ance
Corporation, which insures
savings and thrift accounts up to

$10,000,

was

Two hundred and fortv-one per

cent!!

our

income

boom year before the .bust.

Sys¬
tem, perhaps the most potent and

The

prosperity is
the development of foreign mar¬
kets
for
American
goods
and
our

Sam

higher than it

include:

(1)

nearly half the nation's
are the buyers, the

Bulwarking

con¬

industrial

under $5,000 a

They are also usually
suppliers and the workers.

the

serious

cal,"

all

United

Washington bureaucratic alphabet, and the Foreign Operations
Administration, FOA, have weathered a lot of storms under the
various
aliases
with which
they have been presented 'to the

soenders.

of

that

and

earn

the

of

These

wealth.

ulation
area

who

year own

partment of Labor reports that a
city has more than 6% of its pop¬

unemployed

four-fifths

The

may

is

significant

the

that

ment

main job of the Adviser is

The
to

fact

It has plans also for new

War II.

us

our

construction

layed since the outbreak of World

are

Well, will there be

up.

other depression?
to

bad

debts than assets.

more

Even'more

extremely

are

Within

recession.

have

families

The group has
a

a

measures.

measures

uncomplicated.

any

time

other

his

counteracting

talking about—and

are

about

worrying

and

By CARLISLE BARGERON

the

in

debts

$100,000,000,000.

of

neighborhood

of the News

in excess

Against this,

$800,000,000,000.

there

which can be used as double-edged weapons
either to fight inflation or ward off recession.
Lists six
"built-in" stabilizers, and states "a depression is the last
filing to fear."

effective devices,

A head

interests and other easily sal¬

able

on

We find that in the midst of all

Washington

Consumers' asset holdings such

the "worry" about a coming depression, New
York financial editor contends the government has numerous

Commenting

From

ference Board.

Editor

York "Herald Tribune"

New

The

by

DONALD I. ROGERS*

By

Business

War II,

of World

end

termined by a study

to

be

reporting

on

because he is not the type of

just another complaining voice.

have known him for several years and
on

my

will

a

human

a

hard

time

getting him

man

dynamo.

I

I would hate to have him

neck. My guess is that the USIA and Harold Stassen's

have

money,
my

He is

off their necks.

He

FOA

has

the

he has plenty of restless energy and he is, rightfully to

mind, full of indignation.

Volume. 181

Number 5402

The Commercial and

...

Financial Chronicle

13

(709)

The Short-Term Business Outlook
By DEXTER M. KEEZER*
& Director of
Economics,
McGraw-Hill Publishing Company

mists

well agreed it is

are

Discusses

stock

we

by

or

obviously

no test for fore¬
talent to make the con¬
ventional business forecast for the

1955.

year

far

too

Such

an

operation

equipment

business activity available —
declined to about $355.5 billion
in
the summer of 1954, or about
4%.
From that low it is now
running

easy.

It

is

a

cinch

to

see

that

business

in

at somewhere

general is go¬

ing to be
good

in

and

billion,

very

substan¬

better

than

1954

which
has

cor¬

char¬
acterized as

inventories
duction.

most

^

July

prosperous
Dexter

M.

Keezer

It has been made

some.
over

of

again during this open
f955 forecasts.

sea¬

I don't
propose, however,
add an element of

to try
novelty to

I

course,

well

am

view* that-:when

about

recovered

drop,

total

a

the

and

in

on

civilian

64

current

labor

million,
to

be

be

force

about

3.5

looking for

if

}a£e

basis,

million

.more

1.5

than

we

had

we

the

seasonal

a

ployed

well agreed on the business out-:
look it is cause for alarm.
How¬
is

I

can

assure

canard.

a

when

the

economists

right.

truth

that

are

than

that,

skilled

ployment
when

this

is

well

are

able

high

on

agreed

to

is

sustain

em4

level .of

no

a

other

work
the

down

dangerous

idea

should

misgiving.-

committee

should

Way

investi¬

are

But, in view of this general and
often
repeated agreement about

have been.

the

outlook for 1955,

forecast

from

business

busi¬

which,. I take it,

challenging

As

•

take-off for

a

discourse

a

;

for

One

him

the

this

important business

Economic

there

is

Forces

investment

in

it

axiomatic

year

trend

the

forces
omy

the

This

is

has been

of

of

expansion in

Well,

be¬

expenditures.

This

counts for about two-thirds

as

total volume

represented by

tional

quite
of

econ¬

course,

of

never

tion

of

did

the

public.

all-time high of about
a

year

probably
as

the

last

go¬

What

our

the

go

of

late

the

outset,
to keep

recession-was

we

we

we

as

new

witn

economy

made

by

refused

housing boom

a

to

to

which

be guided by the find¬

is

a

It

get¬

half

the

a

ponderous

as

it.

cast

Wo

don't

know

just

self
a

speed

glacier.

a

turns

always

day

the

last month for that matter.

or

explanation is found

tistics

which

are

both

in

sta¬

late

in

.arriving and defective when they
do

arrive.

ume

of

business,

we

hit the bot¬

ISSUE

„

tom of the recent recession in
and

From

are

its

now

all

ascending
-

time

July

again.

peak

rate

*An

Eighth
of

the

address

Annual
Chan:bcr

Philadelphia,

by Dr. Keezer before the
Forecasting
of

Conference
Commerce of Greater

Philadelphia,

Pa.,

1955.




Jan.

13,

out

psychic.

-

tenuous,

right
ago

I

of

March

publicly

the

I

have

Almost

23,

delivered

a

be

to

my¬

the expectation that when
came

"a

outlook

will

be

no

reasons

tural

far

so

of the

had

we

fell

apart

,

One

-

of

the

most

dramatic

changes lies in the tremen¬

dous

decline

of

the

stock

the"

in

business
market

business

the

-

so easy

be

as

conducted

Continued

any

on

of these

*

The

that the forces
business

pulled

no

As

and

Copies of the Prospectus

may be obtained in any stale from such
of the several Underwriters, including the undersigned,

that

sure

the

short

—

upgrade

answer

as

is

may

lawfully offer the securities in such state.

working to expand

heavy

business
And

$2.50)

longer have to work

the

postwar peak
boom.

Company

Price $8.50 Per Share

that, too.

drag

down

its

during the Korean

most

of

Straus, Blosser & McDowell

which

from

these

Cruttenden & Co.

A.G.Edwards & Sons

forces

H.M.Byllesby and Company
(Incorporated)

have

great vitality.
you
all
know,
the

drag

which produced the recession

compounded primarily of
government

a

\U

Central

was

cut in

expenditures

A

and

February 9, 1955

Republic Company

G. H. Walker & Co.

in

compared

fast

fault

to be

on

importance

transacted

that

at

of

these

it is

about

in

ful apparaisal of the business out¬
look.

capacity to

wrong,

the

1929.

Recognition of
these changes is basic to any use¬

Common Stock
(Par Value

in

economy

our

120,500 Shares

Missouri Natural Gas

sort

when

lie iri the great struc¬

changes in-

to sell nor a solicitation of an offer to buy
offering is made only by the Prospectus.
.

is

the busi¬

as

the past 25 years.

rousing

,

market

and this

concerned—there

is

market

offer

The

being

is

stock
—

repetition

shambles

-stock

For

say

however,

credentials.

(on

to

the

again

key poirit

ness

of

down

that

contend

to

were

will

year?

total

direction
be

to

be right

Why is it
business

still
.

.

sell

or

when

But

the

about

must,

.

Besides, if the fore¬

statistics

against

same

and

possible

perhaps

this

However, it is reasonably clear
that, in terms of the overall vol¬

is

turn in business

an

securities.

NEW

increase of

statistical

about the

where the economy was last Mon¬
The

slightly

Happily,

exact)

Predicting what is
going to happen to the Gross Na¬

Monday.-This is not the

of

buy

of

really isn't.

change

next

be

generally

l itis advertisement is neither

quite bold to make
forecast of this type.

specific

it has

be

mundane

to

comes

it

one

in the
Abso¬
advice about
say

supernatural.

no

•

enthusiasm

questions

of

that

on

But I'll let you in on a trade secret.

would be ten years from now but

just where it would

with

market

about

offered.

the relation between what goes on
the stock market and business

year
was

here

say

It may seem

didn't

know

deal
stock

least.

contribution

to

market

when

sickening thud?

course,

recently
heard
Mr.
Product
is
one
of
the
Gwilym tional
Price, the President of Westing— less hazardous forecasting opera¬
house, remark that he was reason¬ tions. The reason is that it is such
our

Will

absolve

belongs strictly
the realm of the higher calcu¬

The

To

the

L

ably confident where

down?

a

of

major

have

lutely

in

the mildness of the recession

I

stock

realm

Questions About the Stock Market

mild-.

purchasing power to keep on
making new highs in consumer
expenditures for some time.

do

I

approximately
1954, it will be
an

we

Will the

go

was

1955,

the

develop
into a rip-roaring boom?
And if
it does, will the market then crash

consuming public has in
prospect what it takes in the way

Where the Gross Na¬
in

speculative

simmer

reces¬

so

so

the stock market?

pen to

the

Another

course,

answer,

the

and

lus—you might almost

which will

the

must

in

into the record books

bottom

I

fast

increase

be

plagued by a serious un¬
employment problem in spite of
an
expanding volume of business?
And, loudest of all, what will hap¬

$235 billion

year)

present

Also

myself from any and all respon¬
sibility for offering anything in
the nature of stock market tips.

Is

at the very time (the third

quarter of

are

aspects

which

puzzles.

consuming .growing
a

which

there

fractional

outlook

be tempered by great
to do anything which
might put a crimp in business ex¬
pansion generally.
And then, of course, the stock
market will come down again—
with quite a thud.
I must defer
giving you the exact dates of these
developments until a little later.

going to

reces¬

expenditures hit

questions
office

our

to

about?

The

take.

to

productivity

In fact, the annual rate of

consumer

there

disposed

course,

is

grip the imagina¬

American

margin

reluctance

What

will

Product.

sion

raising

as

labor force and labor

ac¬

of the

a

the

is

talk

or

of

be

ing to happen to prices?

is

business,

was

what

few

a

the

engaging

the Gross Na¬

The idea that there

then,

Judged by
pour
into

The most

important of these, of

nation's

up

about

worry

major

our

going strong.

consumer

going

are

What About Prices and Labor?

slightly

the

up* ;with pauses
Nor will restrictive

on

requirements, which the nation's
monetary and credit aut orities

And

more.

the prospect of an expanding vol¬
ume of business in 1955.

the

as

ex¬

stock

disposition
of
these authorities
to use really strong medicine will,

any

again, the con¬
clusion is inescapable.
You have

trend

to

the

will

or

busi¬

that

are

long-term

reason

no

such

actions,

all

guess

meantime,

are

expenditures,
expenditures
and

the

They

by

prevent

and then.

now

expec¬

by book values.

is

that to
market going

ac-

is

there

But

almost

by

wonders,

or

or

pect

opera¬

by past relations

earnings,

interest rates

public

that

future

gauged

as

with

schools, highways,

expenditures

measured

of

for

argues

market

stock

As

States, there isn't

down in 1954.

In

of

have taken into

sure,

there is to business in the United

of

in

along.

moves

the

does

the
speculative
the economics

of

stock averages are high.

pro¬

busi-~

and

in

caution

consumer

government

of

this investment will be up
cause

you

business

that

1955, I

in

report oh

a

situation

the

of

tions.

■

When

Strong

decline

no

ness

is

was

by

have had a turn in
along with it the

we

To be

boom.

takes

volume

than
So

it

when all of these major elements
have either stopped going down

Expansion Growing
If

1955
1954.

count

season.)
Major

what

larger

a

in

in

has

etc.

analyst

news

boom

construction of

jump

me

possibility. In spite

a

produce

duced

by all odds the

was

Well,,
business

some

housing

there

machinery

business

impressed

prospects.

high

$9 billion, or about 2V2%.

on

where business is going it is prob¬
ably riot amiss to indicate where
it stands right now.
This, unhap¬
pily, is not as simple as it sounds.

at

about $365 in

aspects

of the outlook.

same

where

nor

is going

billion

$356

are

The

tional Product

upon me to make,
and hurry on to some of the more

and

we

ting better.

my

duty here calls
obscure

the

It is "where do

here?"

indicated

I propose to

general

tell

primarily concerned, of

is not where

ness

for

most

that

Again"

key indices of the

business

gate.

hurry through the

Out

But the question with which

Congres¬

a

-

orders

new

November.

of eminence remarked to

little

so

bootleg it into
ness

nothing down and

the

what

to

5%

decline^ One
was a

on

pay.

were

this vision that I virtually had to

tations

McGraw-Hill index

our

terms

house much

a

look

housing

This performance, of course;,
accounts
primarily for The fact

Our

of

that

the

buy

may

ciates in guaging the business out¬

people find dis¬
turbing increases in vacancies, the

sion.

the way out again.

for
-

Perhaps

since

general story. We've been through
a
very mild recession and are on

among

cause

700,600 in the

unemployment

of. these

state

subversives

be

"On
All

the

as

thatr agreement

economists

sional

put

you

of

of about

-of

no

developments
in

And

steadily
being improved in quality. I sug¬
that

of

decline

.

ness, and the portents are

gest

basis, the current
unemployment represents

volume

tents of what lies ahead for busi¬

un¬

But, again worked out

craft, they
August 1954.
reading the por¬

in

1953j

1.2 million

seasonal

a

as

in August

had only

we

a

rate

are

hit

we

employed.

that

they

This is true if for

reason
are

that

you

The

chances

of

or

extended

hind."

everything except dazzling

of

But developments

indicated

Federal

new

one

major
legislation

necessarily centered in the
will not be far be¬
I might add that my asso-*

stock market,

pros¬

baby sitting

unem¬

would; have had

been

all-time

this

.

ever,

of 29%

6%

probably

appear

about

the

economists

a

about

out

Of

of

aware

pro¬

137

Reserve

jobs without finding them. Worked

contribution here by disagree¬
ing with the general expectation

forecasting economists.

of

Federal

would

million

my

the

new

130.

Of
of

of

peak

dropped to 123 in
drop of about 10%.

has

that

about

for

son

it

reading

and

over

1954,

Now

of
repetition
this
general
forecast has become rather tire¬

a

the

index

July

Also

the

instead

From

1953.

Board

peacetime
year.

the

sumption has been coming out of

rectly
our

of $360

from

of these

dustrial production has been
some¬
what more violent. The
reason, of
course, is that part of our con¬

itself

been

rate

a

billion

(These

figures are sea¬
sonally adjusted.)
The swing in the volume
of in¬

1955,

tially.

$4.5

up

bottom.

near

have

about

by

speculative boom, probably though
not

whose

burgeoning

preliminary

a

of

decline

a

will be little

since

associates

those

housing boom is to be
kept going indefinitely it may be
necessary
to
provide
a
bonus
feature for prospective house
buyers.
I
have
requested
free

on
plans to invest in new
plant and eequipment in 1955, it

gauge

forecasters,

my

among

be sure, it was given a

If

be
moving up
(A couple of months

Product—the

general

were

eternity to

plant and

new

made

from '54 to '55.

best

are

cheek

of

the

of

Alas,

further toward

will
we

of $370 billion in the
second quar¬
ter of
1953, the Gross National

is

expenditures

investment in

when

I

which

as

some cases over-run,
And the level of busi¬

again shortly.
ago,

off;

which

s

ness

most

lift

further decline

and in

course.

showed

It is

casting

To

virtually all

or

no

Federal

as

run,

Federal

sees

all,

government expenditures is in

its

speculation wave."

a

plant

new

taken into account). The liquida¬
tion of business inventories has

Government exercising tremendous leverage on business. Con¬
cludes, "the economy is not going to be knocked off its base
:

of

and

business

of
cool

pects the boom refused to follow.

that's

Little

well

very

market influences

for

i

,

•

findings about its dimming

in

by

prospect (when state and local

econo¬

way out again, "due to fact that
working to expand business" no longer must work
against the heavy drag that pulled it down from
the postwar

to

and

in

noting

"when

warns

forces

peak.

and

played

was

reduction

Now

of alarm." Says key indices
have been through a

a cause

of business conditions
indicate
mild recession and are on our

r

ex¬

role

equipment.

recent short-term business forecasts and

almost -complete
agreement, Dr. Keezer

,

and

over.

After analyzing

l

ings

a

minor

penditures

Vice-President

_-i

liquidation of business inventories.
A

small

the

with

by

the

page

28

14

The Commercial and Financial Chronicle..

(710)

credits.

Credit

Analysis Has

Place

a

In Mortgage
Vice-President

analyze

Banking!

Lists

cants.

and

the three most important points

as

considered in

In

order

credit

to

in

modern

mortgage,

first

must

we

the

of

respect

review the procedure

followed in
making mort¬
gage loans be¬

the

fore

longloan

term

into

came

istence.

little

ex¬

Very
consid¬

eration, if any,
given

was

to

the borrower's

ability
pay

to

re¬

mort¬

a

gage

debt

30

years

ago.

At

that

when
Carton

loan,

S.

Staliaru

time,
indi¬

an

vidual applied
for a mortgage

the

mortgagee would have
the property
appraised, and a loan
would

be

granted in an amount
anywhere from 60% to 707k of the
value

of

the

property offered as
The mortgage usually

security.

written

was

for

short period of
time (from one to five
years)
a

and,

in most cases, did not
provide for

curtailment

any

When

would

gagee
and

loan

a

charge

newal fee.

principal.
the mort¬

generally renew
the mortgagor a

In

some

would

gagee

of

matured,

cases

make

re¬

mort¬

a

his

up

it,

port¬

folio of open
mortgages. This was
done with the idea that the mort¬

could

gagee

the

event

call

that

able to make
his

assets

in

he

his

loans

found

it

in

desir¬

greater portion of

a

liquid.

Of

course, the unsound feature
these
unamortized loans was

of

that

they

were

not renewed

as

never

the

called

case

in

may have

been, except during time of
nomic stress.

when
he

a

or

eco¬

Generally speaking,

is not forced to
save,
and when loans were

man

doesn't

mortgage

was

which

feature

payment

provided for the loan to be repaid
the life expectancy of

well within

and

borrower

the

improved

In addition to the reg¬

monthly payment to interest
principal, a provision was

and

made to pay real estate taxes and
hazard insurance monthly.
This

permitted the borrower to budget
his finances
make

to

it

modern

ad¬

sum

This

time.

is

which the creators of

on

have

as

we

developed

mortgage procedure.

mortgage

aspect

of

picture

that

early

should

be

mentioned is the second, third, and

sometimes,

seeking
most

50%

to

cash

for

had

and

payment,
the

from

the

the

to

the
the

down

resort

to

second

mortgage shark who
charged substantial premiums and
high interest rates. This placed a
further

burden

the

on

borrower

who sought eventually to own his
own
home..
With the advent of

the long-term

mortgage, the per¬
centage of loan to value of secu¬

rity substantially increased, for it
has through experience been con¬
cluded that if the loan

tended
be

sufficients

repaid

which

readily

be

can

that it

so

can

average

meet,

much

a

transaction

the

and

mortgagee

were

in

sounder

results,

re¬

gardless of the size of the mort¬

With

this

background,

difficulty. Also, since ail
lending institutions are in rela¬
tively the same position during

to this

recessions,

will

I

credits of applicants.

hand

to

there

do

no

was

one

on

discuss

how

new

the

credit

approach

mortgage concept and

institutional

lenders

analyze

refinancing.
Today, we are faced not only
As I just
mentioned, the major¬ with a small down payment loan
ity of mortgagors didn't put aside but with the largest volume of one

any

any

money to pay off their mort¬

since they were

gages

into

liquidating

not forced

their

loans

monthly amortization.
when
to

the

mortgagee

foreclose

sell

the

his

property

losses, the real
so

lien

of

basic

try and

recoup

his

market

had

was

from

to

The lesson that
one

and

to

enough

the property
cipal.

forced

estate

dropped that he

realize

via

Finally,

was

regain

was

unable to

the

sale

his

prin¬

learned

investment

of

was

lending

family houses ever to
the market, in respect

which

of

down payment is required and
full mortgage loans must be ar¬

As

matter

a

of

fact,

in

certain

parts of the country, the
buyer does not have to invest any
cash,

ing

even

in the payment of clos¬

charges.

The mortgages are
in amounts sufficient to

arranged

cover the full purchase
price p'us
closing costs and legal fees. Such

transactions

are

commonly

ferred to in the trade

as.

underwriting principles.
gagor's
income

tive

re¬

"negative

mortgage.
All he had done
pay the interest and taxes. He
no

nearer

when

he

to home

first

was

sometimes

was

to

ownership than

incurred

the

debt.

Practically every loan on one
family houses appeared

to

four

follow this pattern

experience
*A
tne

type

and, from
this period,

107%.

the

institution

by Mr. Stal!ard
York




than

more

property almost
borrower

who

5%.

from

quickly

as

as

originally put

money

in

the

event

he

loses

me

marital

employment

latter items

will

transaction,

in'

his

job, has
illnesses or

only if it is an estab¬
in respect of the

job,

of

is

and

the

difficulties,

Earnings
hours

from
not

too

there is

em¬

if

-

lem

able nature.

boarders in

or

is not considered. Income from in¬

vestments
from

effective

fringe

benefits

ployers

FHA,
into

income.

paid

not

are

for

definitely

they

by em¬
by the

take

The

them

monthly

to the

total

monthly

ex¬

unless the balance is small

pense,

and has

only

income

considered

short term to

a

the

of

to

wife

offset

run.

be

can

the

expense

normal extraneous obliga¬

any

tions.

the

By

token

same

wife's income

can

income,

net

the

be added to the

she

un^ss

quite young and recently mar¬
ried. However, small children can

render

the

wife's

income

useless.

Scheduled increases in salary will
not be considered beyond a sixmonth

period, and seasonal

pations
and

viewed

are

carefully

caution

examined

bility and past
The

with

occu¬

for

sta¬

success.

background

and

credit report.

ally fatal to

are usu¬

/very

Domestic

will

large

a

application.

an

The

age

of

he

establish

can

sufficient

eco¬

nomic stability; although the term
of the loan may be affected. Origi¬
nal

equity

siderable
offset

is

always

weight,

one or more

given

and

may

con¬

often

of the unfavor¬

able features mentioned above.
A

similar
as

procedure, although
clear cut is being developed

the

The

ining

Administration:

Veterans
V.

A.'s approach

credit

is

more

in

exam¬

sympathetic

that

With this

port-

background, the

review of

eral

the

included

mortgage

would

borrowers'

various

hereafter:

forth

set

as

If the borrower is old enough to
ha-

established

pa'tern

a

far

so

the management of his personal
is
concerned, in viewing

as

the credit, weight is given to such
if

for

pattern.

borrower has

a

several

known

found

age

if by

or

local

a

of good reputation,
and otherwise, and it

that

he has

above

or

employed
nationally

a

one

financially
is

by

years

company,

company,

For instance,

been

made

average

aver-

progress

during the period of emn'ovment,
is

married

family,

satisfactory

paid

er

Un
ov,

the

other

be

con-

risk.
-+v,

,

with

man

nncpiM„

u,

who possibly has

income,

his

a
a

and has good

would

hand, a

innnmo

changed
type

he

good mortgage

a

equal

establishing
his bills in

manner,

savings- habits

an

is

and

has

position

finc'uding

of

work)

frequently during

short

period

of

marital

time,

difficulties,
credit

has

has

a

had

.

poor

tion

•

would

debt

a

i•

An annhca-

service

the second

have

great deal

a

Consequently
the

between

pin

i

necessarily

be treated with
caution

the

amount
the

and

borrower

to

more

mar-

the

of

of

income

would

have

to be much

greater than the marbetween the debt service and

Pin

the

income

described

of

To

the
so

first

borrower

further

it would

ministration and, in the case of
the high percentage Federal Hous¬

to procure a

out

derwriting principles

home.

with

The strict

the
un¬

ing Administration loans, without

the

tration

insurance.

Therefore,

both

not

as

any down payment.
second
borrower
wcu'd

as

10%

or

closely adhered
by the V. A. and it would ap¬
pear that the average mortgagee

the

and have arrived at certain sound

who is accepting V. A. guaranteed

determine

loans, should examine the credits

borrower

approaches

in

a

analyzing

com¬

such

as

to

tbm->

the

with

After

borrowers

many

bonuses

pay,

even

it

the
is

history

ol

important

to

his present status.
may

One

be employed by a

analysis

and

and "in"

any
any

income from his spouse, the possibilitv of oregnancy always must
be considered in respect of the

borrower.
It is considered, for example, in the industry,
younger

that the chances of a registered;
nurse °r a wife with stenographic
?r secretarial experience continuln£
assist financially in the op-

?ratio" of.?he ho^e)taft" sha has
hfad a unskilled worker.than those
"e bet er

of

an

As I have already set forth,

the

previous credit experience and the
character pattern of the borrower
1S important. A great deal of emP^asis must be placed upon the
borrower's ability in carrying preV10us obligations such as rent,
mortgage, other housing costs,
charge

accounts

installment

and

purchases. For instance, if his
monthly housing costs have been
equal to or even slightly less than
the contemplated mortgage payment, and he has successfully met
them, regardless of affects on his
income and ability to work, with¬
in

he will

reason,
.

,

,

'

.

.

incurs

,

mortgage

carrv anv

,

Points

he

nav-

assumes

ne assu

J earned

.

not

is

ni

d

ceituiiy
obIigatiL
t obligation

that

it

to

see

,

indebtedness he

anY
.

-

es.

from

Recent

Housing Boom
would

I

some

like

f

d

tb

j

for

appropriate
;

tant

chases

recent

It

a

jn

an

most
pur-

neighborhood

,

the

obviol/s

to

tj

wh

gffori

®annot

tenden

vvilh

0f

is

he belongs, both socially
It is

;

borrcwer
has

.

grower

that th

econoa,icalIvs

tha( b

h

p°rchase

the

property.

ho)T,e jn

a

jn whichi
and

discuss

now

considering the eligible

borrower

may

to

of the points that have been

b

to

u

discourage

(hat

hil^

he

neg]eets

and quite
ultimately lose it.

possibly

result

property

Also,

it

is

kuys

conceivable that

|n

a

subdivision

one

or

neighborhood where hn neighbors
are

20%.

analyzing

borrower,

careful

consideration being given to
fringe benefits. In analyzing

a.

down payment of nossibly as high

study of borrowers' credits

plete

are

good

cases
the effective income
considered in placing the loan willbe only that which, the employer.,
has contracted to pay him, no

„„

always

be'

can

most

a.P/.f;a,r J®
fu.5"L-.!ZJ* his
would be more likely to sali"f°ctorily maintain his property with¬

veteran,

A

overtime

pos¬

the latter tyoe of indi-

from

general

next step is determining
the effective income of the bor?

difficulty

some

mortgage risk

vidual

the

and

nor possible,

with the law woTd be considered
a

borrower,
background, if it

learned,

The

ques¬

and

record,

thought in mind of enabling him

the

be

tical

affairs

established

em-

the

of

helpful in determining the
ability and the earnest intentiori
a borrower to repay his indebtedness." All of this must be carefully considered. Most of the in4
formation can be obtained through
the medium of a credit report and
a properly worded application. Of
course, the ideal method of securing-this type of information is ta
have a personal/;interview with
each borrower;; but-in this day of
stream-lined business methods and
volume operation, This is not prac-

gen-

make this type of loan without
the guaranty of the Veterans Ad¬

to

continuity of

age

very

credits

fol'ow

to

appear

examples,

tionable

mortgagor is not too important if

a^rl

..t>-

LoiiO.

sibly has been in

to
the

the

admit

ily relations

equally fatal

in

borrower,

fringe

difficulties and inharmonious fam¬
are

basic pat-

particularly

one

build

cO

application unless

satisfactorily explained.

basic

consideration

^unge borrower must be

character

Litigations
an

set up and

fo'lowed,

a

sidered

of the mortgagor is established by
a
review of his application and

this prob-

'

extraneous obligations

on

is added

The

While

evaluated

consideration.

payment

of

and

sources

disability pensions, is added

the

to

reliable

of

of

a

requires

with

experts

fiven to the merits of the

_c*oe

repay

credit

are

individual,

roomers

one-family house

a

i-ni'ct

credit-

a

Income from

t

that

other supplemental incomes. This; v

T have discussed

are

to

as
-

long period

a

character of his home life,

In

point out that although

terns

gagor's principal employment, and
the work is otherwise of

over

mind

stability of the bor-

Most

formulas

conflict with the mort¬

no

The

tance.

dlaim

whom

the

burdensome;

stable

as

in

ployment is of the utmost impor-

rower.

rower.

com-

-

be borne

of time and his

analyzing
offerings, great weight
be placed on the character

and financial

one

small

a

considered

mortgage debt

must

< ~

-

part-time

considered

are

are

•

more

than

borrower contracts

a

mortgage

general

-

be

It must

problems that may cause a
or prevent his making the

mortgage payments.

practice

its

at

if

payment is substan-

mean

ine
tig

income

the

presented

I

uie

all

followed
by the Federal Housing Adminis¬

University
Mortgage
Conference, New York City, Jan.

1955.

would

pay-

trasaction,

tne borrower will walk away

consid¬

Sufficient

principal

These

ployment

runs

No

But

not

are

policy of the employer.

Administration,

agencies have had to make
paper

New

bankers
*

of

to

income.

of income

considered

by

the

down

a

loan

every

less the down

effec¬

net

risk

a

of

bor-

the former.

default

resulting mortgage
as high
as 105%

obligation to reduce the

to

cannot

say

Vial, and

a

other

property,

no

the

to

bear

or

not

under

monthly

should

be

of the value of the

was

his

—

ratio

effective.

gagor's

which is 100%

he

added

amount of the allowable mortgage

Veterans

prefers

in

bonus.

contractual

payment deals." When these

the

here, and very emthat the institutional

me

effect

pany which does not offer these
fringe benefits. Also, the income
derived
by the latter borrower

-

mortgagee

should be derived from the mort¬

closing

since

above

reasonaole

sources

agencies.

the

who is employed by

the Federal Housing

Federal it is at all possible to secure one.
base/pay.- However, let me also say that we
the total have found by experience that un-

speaking,

termined

down

period

from

tax

as

can

ment

is

monthly carrying charges—as de¬

Obviously, the borrower
unable to save, earn or accu¬
mulate sufficient
money to repay
the debt at the end of the
short

are

attractive

,

phatically,

A mort¬

income

have

his income. A
of this type would be

rower

Experts

by deducting

Generally

was

by

effective

net

determined

policy.

costs

for

that

his educational

Let

ownership. 7 However,
they appear to be guided by sound

into

come

no

ranged.

encour¬

is

New Credit Approach

now

promotions

augmenting

governmental

Principles

home

age

effective

gage.

very

Underwriting

It is the aim of FHA to

ex¬

monthly in
amounts
purchaser can

the

mortgage

during the period of eco¬
strain, both the mortgagor

serious

Sound

man

home today.
For
he did not have

a

part

30%

mortgage.
A
home in the 20 s

a

different

no

was

have

seniority, have civil
status, "or have pension

lender can set his own pattern and
integrate it with the approach and
analysis made, by the respective

the mortgagor's family.

fourth

seeking

mail

customary to

service

Administration,
lending institulions, are
constantly ^perfecting

lished

the

Formulas

istration and

without the benefit of overtime

mortgage,

today,

Another

the

In addition to the procedure established by the Veterans Admin-

a

ered

lump

one

long-term

know

not forced

was

large

any

the basis
the

he

as

a

at

vance

that

on" V. "A.

defaults

home suitable for his par¬
ticular needs.
The FHA wjll not
insure a loan where the house is' formulas which experts on credit
can
apply, so that the institutional
obviously inadequate (in size) lor
ing

loan was made avail¬
able to the borrower, at a reason¬
able interest rate, with a constant

ular

of

_

Ciedit

to mortgagors'
monthly income.

compared

The appraisal also serves to de¬
if the mortgagor is buy¬

mortgage

real estate.

have found

we

thus derived

The total

termine

called in

nomic

then

which should be

modern concept of a

the

mort¬

plans and other employee benefits

developed, primarily with the cre¬
ation of the FHA.
A long-term

principal

based .upon

percentage

the

of

available

is

his affairs, financially and otherwise

understand

clearly

analysis

perience

net effective

family life; (2) his past attitude toward obligations; and
manage

mortgage credit until a
appraisal

insurance.

analyzing credit: (1) the mortgagor's character

(3) his capacity to

large utilities corporation or a nationally known company where it
is

security
has
been
made. guaranteed mortgages is no greater
this appraisal, the cost of than the percentage of defaults on
utilities, heat and maintenance is FHA insured
mortgages, which
established, and added to the seems to prove that the undermonthly carrying charges; that is, writing of borrowers' credits is
principal, interest, tax, and hazard being done satisfactorily.

should analyze credits of appli¬

or

sound

own

From

lending practices with the
more recent improvements in investment policies, Mr. Stallard
discusses the credit approach to mortgage lending and how
can

its

gage

Contrasting the early mortgage

institutional lenders

applying

closely,

undewriting principles.
I might
state, in passing, that in our ex-

a

complete

Mortgage Company

Secretary, Jersey

&

the follow¬

uses

The FHA will not undertake to

By CARTON S. STALLAItD*
I

The FHA

ing procedure:

.Thursday, February 10, 1955

below

his

social

or

economic

status, will be unhanpy. and again

his home will become of secondary

importance

to

him

Continued

Such
on

credit

page

28

Volume 161

Number 5402. ;.The Commercial and Financial

Chronicle

\

1.7

(711)
balance sheets of the
majority of
the fire and
casualty companies

"The Three Naughty Ladies
Of Insurance Lane"

will show

impressive gains in sur¬
plus, placing the industry in the
strongest

Witter &

Haver, calling attention

rienced

to the

A

Co., Los Angeles,

heavy hurricane losses

Looks

for

favorable

most insurance

companies for

The year 1954 will
probably go
down in insurance annals as the

a

mouse-killing

fission of

single

Peter
the

What had start¬

than

short

seven

it

is

still

exactly

the

too

payments which will result from
the 1954

hurricans, it is

mated

that

the

neighborhood

of

$275

million, of

which

about

borne

by the reinsurance

writers

at

$100 million will be
under¬

it

so

genes. With every

been

such

with

other

canal

as

bonds,
It is

cars.

happening, as you all know.
are supplanting the Pull¬
detergents

have

the

over

just

powdered

market, nuclear energy
promises to take over a large seg¬

soap

energy market, and
druthers are replacing the

even

filet

Lloyd's, and $150 mil¬

the

of

ment

mignon.

But

whatever

lion by our good friends the
stock,

mode

companies.

sources^

/ These losses are indeed sizable
and mean that for the fourth time

our

sential in the future

of

transportation
insurance will

or

energy

be

as

es¬

"

in five years, "extended
coverage"
show a loss.
While it is all

will

well to

very

that the law of

say

actuarial tables indi¬

averages or

as in the past.
fact, atomic warheads and the

In

astronomical

horsepower

ratings

of the modern automobile have

increased
and

is

becoming

cate that such

ance

a

so

ability for property

our

self-destruction

that

imsur-

necessary as

an
experience over
five-year interval is impossible,

the fact remains that these losses
have been or will be paid and that
we

are

1955, with
any

off

now

a

into

wary

sortie

new

upsetting

a

manifest during the
fall of 1954.

make

as
a

of

one

ladies

young

of

nature

and

summer

does

not

does

one

diversification

lends

a

hand,

practically all other prin¬
cipal lines—fire, casualty, and life
—were

profitable

very

in

1954,

the

staggering hurri¬
cane losses
and allowing a
profit
margin on an industry-wide b^<?is
about

good

as

losses in

1954

National
writers

than

of

$32

1953.

1953.

Fire

reported bv The

Board
were

in

in

as

as

Fire

Under¬

million

The

lower

earnings

im¬

provement in automobile and

ualty

long

lines

hurricane
had

by

towards

way

fore,

will

losses.

things

itself

cas¬

go

a

offsetting the
Overall, there¬

not

are

is

to

concern

the

insurance stock

buyer.
"Two

Strings to

the

Bow—"

black

as

as

been

expected and much of
the investor dismay which derived
from the hurricanes
may prove to
have been largely unwarranted.
Of course results of individual

$9.07

$14.45

5.79

7.83

risks.

This

of

entails

course

which

that

rates

that

claims

it

is

of

make

be

must

the

the

in

be

can

statutory

regulatory

the
are

means

adequate so
paid. In fact,

responsibility
authorities to

that rates

sure

turn

sufficient

are

to protect the

policyholder. There¬
fore, it is realistic to assume in a

general way that although profits
will vary between companies and
will

from

vary

underwriting
—;u

pnd

This

in

of

must,
no

year

to

the
risks

year,

insurable

be

keot

way

profitable.

that

means

11.43

A

C

will

vary

widely

a

131
136

5.27

17.43

116

price

columns

identified

other industries.

simply

that

a

But it does

the

industry

tuation from 1949 to 1951.

in¬

company

underwriting
results
and
particularly so this
year; .but we do know,
as does
most of the

investing public, that

large wind storm losses
curred

and

prices

must

large

extent

that

already
this

were

insurance

in¬

stock

reflect

to

a

knowledge.

"They Just Fade Away—"

Companies, and

even

industries,

are

alarminglv. subject to obsolespence, a long word meaning
"please line up here for your unemplovment
checks."
You
all
know the storv 0f
Joe, the mouse¬
trap builder. Mike builds a better

mousetrap and Joe is out of busi¬
ness.

Then along comes Jim with




In

fact,

the 1949 figure is almost 10 times
the- 1951
figure,, which does not

deal

great

a

of stability.
surprising when

more
we

discussing

are

Hartford Fire, the "bluest" of the
"blue chips," and that Column A
is

underwriting earnings

per

share

before taxes.
if

we

look

happens

to

at

Column

be

B,

invest¬

net

income, we find a steady,
impressive
and
uninterrupted
growth.
Further,
remembering
that fire and casualty companies
generally restrict their dividend
payments to funds available to
from

investments, choosing

to

plowback underwriting profits,
we can begin to see
why Hartford

Fire

has

gained its investment
prestige. Now turning to Column
C, net earnings per share after
taxes, we find considerable stabil¬
ity and certainly none of the vio¬
To

understand

this

4

stability in

Column C, net earnings per
share,
we must first realize that Federal
income taxes

based

are

on

the

un¬

derwriting earnings shown in Col¬
umn

A.

In

addition

to

taxes

on

income, there is another important
factor to consider.
For example,
if

insurance company writes a
great deal more business in one
an

year

profit

we

net

1949

arrive at

earnings
of

case

Elmer W. Hammell

per

Hartford

With Straus, Btosser

to

than it did in the preceding

year-end
Fire

bid

capital

The "case in point" is that
despite the obvious loss of under¬

writing earnings, the stock gained
13%

in

market

31,

1949

we

consider

to

value

Dec.

31,

the

from

Dec.

1951; and ff

1949

low

of

$88
share and the high of $145 per
in 1952 (the year immedi¬
ately
following
the
company's
per

share

poor

Elmer

underwriting

find

W.

Hammell

an

results), we
appreciation
of
65%.
Therefore, it becomes readily ap¬

CHICAGO, 111.—Straus, Blosser
& McDowell, 39 South La Salle
Street, members of the New York

parent that although underwriting
is the primary function of an in¬

nant

a

underwriting
particular

has

results

but

year,

of

any

one

rather

of

an

insurance

stock

vestment today, look at the

to

invest,

you

aver¬

Midland Securities Has
Hew Montreal Branch
MONTREAL,

yourself

have

The following table shows the
underwriting profit margins for a

equivalent to the costs of acquir¬
ing
this
increase
in
business

shown

share.

per

LOS

premium volume

But

one

far

215

the

opening

St. James

a

dition.

This

Stewart.

ANGELES,
DeW.

nected

the

&

with

Co.,

more

Calif. —Ray¬

Purtle

is

634

South

Spring

Exchange..

year.

Our
of

But
a

is

the

insurance industry has
string to its bow, which

second

of

intimate

This

vestor.

to

concern

is

of

must

which

stockholders.
with

of

source

dividends

the

We

are

rity prices during
that

in

We deal actively in

buy

from

paid

the

by secu¬
1954, and it is

in

lars

during

feel

certain

ricane

line

with

by about

one

the

general

billion

New York
Boston

•

Louisville

•

San Francisco

Springfield
•

that

losses,

Therefore,

we

despite the hur¬

the

1954

•

Detroit

•

Chicago

Philadelphia
•

•

at net

Los Angeles

Pittsburgh

•

Minneapolis

*

dol¬

Sacramento

1954.

small blocks

or

prices.

Blyth & Co., Inc.

$3,300,000,000

of common stocks held
by
fire and casualty companies
Dec. 31, 1953, must have in¬

creased

sell in large

all familiar

stock

market

or

bank shares and are prepared to

to

worth

on

upon request.

made

progress

estimated

funds
are

free

sent

large

held

anticipation of claims, plus capital
and surplus funds, are invested in
real estate, mortgages, and securi¬
ties, the income from which is the

primary

will be

a group

available.

now

in¬

The
be

A copy

of

reports

outstanding banks is completed and

in¬

its

course

operations.
which

the

analysis of the 1954 year-end

year-end

•

Fresno

•

San

Jose

•

Spokane

'•

Street,

i

Bank Stocks

establishing and maintaining rates
are
equitable to both pol¬
icyholder and the company.

con¬

members of the Los Angeles Stock

con¬

which

now

Marache, Dofflemyre

only be done by

can

of

Street

Marache, Dofflemyro

mond

margins as
significant
than the margins reported for
any
are

—

(Special- to Tiie Financial Chkonicle)

income, assets and "li¬
value" per share, type

business and

A.

With

story

of course, as there are
many other
factors
to
consider
such
as
in¬

of

Canada

West, under the direction of Wil¬
liam

few representative companies over
a five- and
ten-year period. The

underwriting earnings are
penalized by an amount roughly

announced

office at

an

table does not tell the whole

Que.,

Midland Securities Corp. Limited,

equities.

vestment

busi-*

Co.

in the excellent
company of many
successful
buyers
of
insurance

quidating

investment

in¬

do, and decide

will find

you

the trading
Hammell, who

Chicago for many years*
formerly
manager
of
the
trading department for Taylor &

underwriting margins of the
past five years, not just 1954, and
look at the
ability, to pay divi¬
dends, not just the current diviIf

in

Mr.
the

an¬

Hammell

was

age

dendurate.

them

in

W.

in

ness

give

adequate attention to the average
results over a five-year
period or
longer.
When you consider the
merits

joined

has been

Exchange,

Elmer

department.

ourselves with the

concern

that

nounce

principal determi¬
stock value, we must not

of

overly

and Midwest Stock

and underwrit¬

company

ing earnings

year,

(principally commissions), which

the

Hartford

one

as

before

percentage of earned premiums.

stock.

ment

them

1951),

or

shows
of

surance

Now
which

a

mean

strong and liquid financial

reserves

estimate

sake

whole must remain solvent and in

vestment

to

the

emphasis.
But if we look at
Column A; we see a violent fluc¬

even

as

7.29

underwriting

♦Adjusted
taxes

0.75

6.89

Marine—

&

2.28

3.28

—

will not do better than
that competition is not
present, that managerial excel¬
lence will not pay off as in other
industries, nor that selectivity is
not important to the investor as in

tremely

difficult

have

above

for

of

realize

in

C

In .the

which

15.73

is

Fire

Paul

St.

Fire

7.35

5-03

Finally let's look at Column D,

12.16
12.01

suggest

we

4.24

2.34

8.26

—

another,

companies have reported to their
stockholders.
It
is
always ex¬
surance

170

6.90

four

if

4.69

-—.——

Fire

York

New

6.74

America-

No.

of

National

per

3.79

6.80

Insurance

Co

3.96

company

and

it will be several months before

majority of the leading insurance

D

$174

6.22

been

Therefore,

Home
Ins.

6.25

3.30

Fire

Hartford

6.64

Newark
Insur—

of

American

Great

1951, net drop¬
$17.43 to $12.16, or by
30%, whereas underwriting
earnings dropped from $15.78 to
$1.64, or by 90%.

1.64

The

$5.38

Ins.

ped from

a

G.26

not

Firemen's

5.74

6.63

Fund

share in 1949 and $1.76

per

share

1951—_

1949

Fireman's

and subtract Federal income taxes

1950-

—

a

4.47

6.48

—

3.22%

5.25
5.31

Insurance

Continental

1944-53

4.14%

Newark

of

only

B

'

.

companies

on

lent fluctuations of Column A.

The insurance industry exists
primarily to underwrite insurable

sustained,

unprofitable line necessarily make
for disaster in the insurance in¬
dustry.
Fortunately, and this is

offsetting

more

the days pass. Obso¬
certainly not a factor

payment of claims when losses

summer, neither

where

of

for

these

violently

so

swallow

one

year,

peeled

eye

by

who made themselves

But

new

lescence

and

more

1949-53

and

Insurance—

Ins.

Continental Casualty

A, then add Col¬
(net investment income)

Column

l'JJD-53

(Fire)

American

Column

Fire from

'

*

1949

1951.

B

umn

share.

company

$11.57

It

taken

five-year

table

important

the

1953

we

car,

of

share basis:

Airlines

about

data

the

has

on

brand

now

has

following
of

per

the nuclear

causes

adjust

($7.34

Fire

in

in

per

some

the

over

man

three

storms,
Carol, Edna and Hazel, will cost
the
insurance
industry
in
the

appears

buggy whips, and street
still

esti¬

now

finally

gamma ray

mouse

investments

early to
insurance

total

a

mouse

And

While

Ph.D.,

with

spray

And

extermination, has been obsoleted.

weeks.

state

chemical

An out¬

share

extraordinarily fine

The

operating

sterile, the en¬
tire
mouse
population is wiped
out in a single generation. This is
not only tough
on
mice, but a
complete industry, that of mouse

industry as a
year rivaling the fabulously
prof¬
itable 1949, was
suddenly "gone
with
the wind," all within
the
less

Zilch,

scene

of cheese which

ed for the insurance

of

shows

and Mike is finished.

ing perpetrators.

space

1954.

year

fo alphabetical
malfeasance,
with three muscular
young ladies
—Carol, Edna and Hazel by name
—the something less-than-charmyear

enjoyed.

income, to give

Aetna

the adjustment, which is
non-taxable, amounted to $3.72

Hartford

management

of

reports

Underwriting Profit Margin*
Company

Fire,

share

equities

standing, record
of
accomplish¬
ment, growth and service surely

lines and from

balance-sheet

the

as

off.

truer picture of the
year's opera¬
tions.
In
the
case
of
Hartford

Point—

corporate
available to the investor.

to the

recovered

Normally, security analysts ad¬
just statutory underwriting earn¬
ings (Column A) by the amount

per

attests

be
run

of this deferred

little

seems

are

outstanding

expe- •

points

year,

in

will

policies

argument to
the contention that Hartford
Fire
Insurance Company is one of the

out that because of the diversified
fields of operations of most
insurance companies, these
staggering losses have been offset

largely by profits gained from other insurance

Case

Calif.
There

by insurance companies during the past

investments.

posi¬

'.A

Members New York Stock Exchange

Mr.

financial

tion of many years.

By FORREST E. IIAVER, JR.
Sales Manager, Dean

relative

amount

•

Seattle

Cleveland
•

Pasadena

•

Oakland
•

Portland

•

Indianapolis
•

San Diego

Eureka

•

I *2

16

February 10, 1955

The Commercial and Financial Chronicle... Thursday,

(712)

best
its

THE MARKET

...

action

to

was

approach

best

price of the last 13
months/ in the 70s, but, still

AND YOU

News About Banks

well under the better than 96

CONSOLIDATIONS

By WALLACE

of

Incidentally, this
of irregularity this week, par¬ tion amounting to $75,000,000
ticularly the aircrafts which for duPont, is considerably in
ended their long popularity excess of the $57,621,758 laid
with something of an abrupt out over a period some two
If

there

was

any

generations

ago

the

to buy

relationship between the end original Motors bundle.

strength and the politi¬
cal
upheaval in Russia, it
wasn't apparent to most of
1

V"'-

'

#

❖

V.

....

...

.

4

.

'.

Reversal in the Aircrafts

munications field, were

more

-f-

Chemicals, largely because
duPont

swayed

General

harmony
Motors,
also
in

better-acting

com¬

the

popular somewhat

less

aircrafts

investors, had little basis

the

of ter of a few trades. Butte is
Lockheed was one of the the Russian situation become one of the many illustrations
companies expected t o clearer. The answer in West¬ of how selective the market
ern Union was simple — the
continues to be; despite the
sweeten
up the payment. It
failed to do so and the news fond regard the Street has for historic peaks being reached
stock splits, especially when elsewhere, Butte still has a
came at a time when the stock
was
acting well. Sellers they are of the 4-for-l nature long way to go to eclipse the
moved in rapidly, however, like that of WU, coupled with high
of 1952, or the even
advance leaks over the
and gave the issue one of the no
higher posting of 1951 which
*

❖

*

wider

swings for

recent

history,
six

some

United

and

a

day in its intentions of the directors.
*

a

of

range

half

a

Aircraft

all the ramifications

until

was

points.

the

sec¬

ond

disappointment shortly
after, but the hopes weren't
as
high in this case, and the
response was more moderate.

>

Oils had

dates

that
but

even
were

failed

is the year,

according to some
*
*
analysts, when the current
some dour candi¬ bull
swing started. There are
apart from those other schools of thought that
"split candidates" maintain the upturn started
to

take action

in

expectations. Stand¬
ard Oil of Jersey had pretty
well settled down from the

two

earlier.

years
Hi

line with

facet

of

trying time of it

ing centered
this

would

on

be

as

how much of
taken

stockholders. GM
hard at times

the guess¬

some

temporary
nature. Quite
Some of the other metals is¬
have

up
a

by
bit

of the

up

ran

fourths of
was

high

as
a

earlier

which
it

however,
had

shares

as

indicated

"expected" to sub¬

scribe, actually picked
allotment

three-

million shares. It

bolstered,

duPont

as

of

on

ready held.

a

the

million

up

its

more

i




*

*

*

the

Chrysler had some mo¬
ments of popularity when it
was
reported by the company
month's

last

that

sales

had

ahead of those for

run

70%

the

comparable

month

to here are generally re¬
as

But

there

was

having reached

hasn't
the

expanded markedly in

secondary issues that

normally
the

objectives. Yet

emphasis of investors

would

succeed

leadership at such

last Some

still
plenty of caution around the
year.

carrying the ball

their indicated

its work in uranium.

into

would

plus

of

bank

the

They will vote
bank's

the

to

issue

new

Colonial

$50

a proposal which
capital and sur¬

on

increase

New

f

the basis of

on

share for each two shares

new

William C. MacPresident of Chesa¬

held.

presently

Millen,

at

Jr.,

peake Industries, Inc., which recently acquired approximately
93.5% of Colonial stock through

of shares,

exchange

an

would

Chesapeake
of

number

buy

shares

new

said that
the full
permitted

by its present ownership of 37,410
shares. In

have

of

the

been

casional

judging by its subse¬ anything

cats

but

oc¬

quent action, and the issue's sive about it. So far this year,

1923,

August,

Mr.

joined the Brooklyn Trust
Company which merged with

Drew

1950.

At

pany,

Mr.

October

in

Trust

Manufacturers

Brooklyn

Com¬

Trust

Drew had been Viceand Comptroller.

President

President

Flanigan

Feb.

on

John

that

announced

B.

7

Noone,

Secretary and Treasurer of Stand¬
ard

Board

has

Inc.,

Brands,

pointed

been

ap^

member of the Advisory
of the 57th Street Office
a

(741 Fifth Avenue at 57th Street)

American

the

in

issue.

new

shareholders

In

letter

a

to

the
Colonial
Vice-President, said the increased
capital is desired to enable the
bank to supply the demands of its
growing number of customers and
to bring its capital funds in more
suitable proportion to the institu¬
tion's increasing assets and busi¬
meeting,

t-

D.

Hi

*

Jacob

Leichtman,

Commercial

of

The

Alfred

Kaskel

L.

Industrial Bank
nounced

steps have

Metropolitan

of

an¬

initial

that

4

been taken for which

obtained of

has been

approval

Bank, and

of New York

Feb.

on

Trust

&

York, formerly

Industrial

Modern

President

State

of New

Company

a

leading
to
the
ultimate
of Metropolitan Industrial

Trust

and

consolidated
tion

bank.

the

of

State
fices

in

will

comple¬

Upon

Commercial
will operate nine of¬

Bank

have

Greater

New

Dec.

31, 1954, Metropoli¬
Bank

showed

de¬

of
$17,220,000;
resources
were
$19,051,000;
with
capital
funds reported at $1,500,000. The
institution was organized in 1929
Investment

the. Montrose

Loan

Metropolitan

Brooklyn,

Industrial

branch

Eastern

781

at

are

latter's

The

Bank.

Dec.

on

chartered to operate

was

the

as

which

Corporation

30, 1949

&

and

Queens

99-01

at

offices

Parkway,

Boulevard, Forest Hills,

Queens.

Commercial State Bank & Trust

deposits as of
$71,431,000; re¬
;and capital

funds

totalling

maintains

York

offices

City

seven

the
of

including four

two in Brooklyn
in the Bronx, and is cur¬

one

rently observing its 30th anniver¬
It

sary.

United

Leichtman

Jacob

nally

known

vestment
1936

it

was

and

the

as

Loan

&

Modern

In¬

chartered

as

the

He

resigned

the

year-end fore¬

casts that held out for

a

trad¬

1947

his

present office
Board

the

*

not

*

necessarily at anytime coincide
Chronicle. They are

to

*

Schmitt

E.

has

been
Audi¬

and

Archie E. Prout, Assist¬
of

Vice-President
of

Bank

un¬

elected

Chariman of

as

announced.

has

President,

White

at

Ralph T. Tyner, Jr.,

Plains, N. Y.
has

Schmitt

National

Westchester,

been

Mr.

officer

an

of

the bank since 1940, having

joined
the
Peoples
National
Bank
&
Trust Company in 1935.
During
1953-54, Mr. Schmitt was Presi¬
dent

White

the

of

Ex¬

Plains

Mr. Prout, who was
Assistant
Vice-President,

change Club.
•named

has

He

Cashier.
in mort¬

Assistant

formerly

was

long specialized

affairs

the

in

member

of

the

bank

and

is

Plains

White

Realty Board.
*

*

First

National

keepsie, N. Y.,
$600,000
a

Bank
was

A

as

of

*

Hi

of

Pough-

increased from

to $660,00
dividend

stock

*

17 the capital of the

As of Jan.

result of

a

$60,000.
*

proposal by Marine Midland

Corporation

of Buffalo, N.

Y.,

to

acquire the stock of the Bank of
Gowanda,

H.

on

Diefendorf,
Midland

rine

A.

N.

Neilson, President

Directors

of

has

expected

is

merger

and

the

was

7 by Charles
President of Ma¬
Corporation
and

the Bank of Gowanda.
of

Y.,

Feb.

which

[The views expressed in this article

President

was

Vice-President

tor, and
ant

Savings

Trustees.

of

George

York

as

he

when

til

Presi¬

elected

New

Gowanda

averages.

in

placed

was

was

He served

Bank.

Stanley

market
batting

In

with

Vice-President in

as

The

of

announced

least,

associated

and

he

when

Gowanda,

at

firm

charge of its real estate holdings.

1924 by
was origi¬

Corporation. In

the real
the

Green.

States Trust Company

York

New

in

founded

was

became

&

native

a

in

under

Sandford

he

1916,

New

Manhattan,

and

business
of

name

the

over

started

Yorker,

estate

The

$5,910,000.

institution

Green

Mr.

New

a

in

with

Mr. Green,

gage

1954, at

of $78,760,000;

pre¬

25 year span.

Dec.

31,

Club

ceremonies

at

by President,

over

served

Company reported
sources

City,

25-Year

Richard
L.
Maloney,
Jr.
Mr.
Maloney
presented Mr. Green with a silver
tray inscribed with the facsimile
signatures of the present Trustees
and Officers, as well as a facsimile
signature of each Trustee who had

$100,-

posits

as

sided

bank

named

of

Industrial

tan

the

the

to

and

York
of

resources

000,000.
As

elected

was

of

Savings Bank, at 14th Street

dent

merger

*

Green, Chairman of

8th Avenue, New York

and

1930

both banks will be retained by the

G.

the Board of Trustees of The New
York

of

employees

Corporate

of

*

*

William

of New York.

Company

officers

All

Society

Secretaries, Inc.

Deyo,

Mallory Stephens, Chairman,

and

Mr. Noone is also Treasurer of the

announcing

Charles

ness.

do

exces¬

In

on

Flanigan,

C.

Horace

by

of

announced

was

holder who did not wish to invest

without

particularly

8

Feb.

President.

of

Company

of Manufacturers Trust Company.

stage. ing range with the
and dogs selective have good
an

Trust

addition, Mr. MacMillen
said, Chesapeake would purchase
new shares due any present share¬

a

getting

whirl

to

York,

A.

of Earl
Auditor

Deputy

as

of

offered to
the ! present
40,000

of

Drew

shares

stock, when

*

appointment

Manufacturers

be

shares of Colonial
one

a

*

*

The

offered

be

new

would

authorized,
holders

whereby

20,000
will

stock

commercial bank with trust

a

million.

$1

in

converted

was

powers.

amendment

an

charter

of

share. The

a

by

on

it

1953,

and

Bank

Industrial

Modern

January,

&

turning

few of the issues that

been

limelight, including Vanadi¬
Corp. which isn't hurt by garded

20,000,000 al¬ issue,
;

a

um

estimates of the unsubscribed
stock

occasionally in the

were

Trust

Bank into Commercial State Bank

Utilities Undistinguished
Utilities have been

a

sues

dipped

as

least

Colonial

merger

air¬

the

Shareholders of

plan

*

-fi

gyrations over its split disap¬ in an
undistinguished
per¬
craft
situation
was
that
a
pointment and issues that did formance
and, like the rails
come through with a capitali¬
week ago the floor
traders
did earlier, this week, turned
were
warned to pass up the * zation change, including Pure
back after an unsuccessful ef¬
plane issues that have been Oil this week, fared well. But fort to
penetrate the previous
soaring for so long. It wasn't there were some sad momen¬
high of the average. Rails arp
too
tary actions by Houston Oil,
d'fficult,
conseauently,
still a technical disappoint¬
of California
and
for stop-loss orders to come Standard
ment
and
are
lolling some
into play as pressure devel¬ Royal Dutch to keep things
five points under their 1955
somewhat tarnished.
oped and internal support was
*
*
*
top without offering any en¬
lacking.
couragement to the industrial
*
*
*
Electronics and Metals
average which twice has
Pick Up
Motors in the Limelight
pushed its all-time peak a
Electronics issues had their notch
£r>art
from
the
plane
higher since recovering
makers, a feature of the week good moments, but there from the early January
wasn't
much fanfare about
was General Motors (and to a
trouncing.
*
*
*
lesser degree, duPont) which them. Coppers swayed with
the pack but basically were
came to market with the
larg¬
Technical Signs Discouraging
est rights offering — some turning in a superior perform¬
Technical indications, con¬
4.380,000 shares of GM stock. ance on the many discussions
The old stock had a somewhat of a copper shortage of at sequently,
aren't favorable.
Another

Bankers

and

ETC.

Company of New York will meet

-f

vague talk. One of
Among the lower quality
perennially interesting issues, Butte Copper was one
in fact. Moreover, a couple subjects is of a split for the of this week's offerings for
of disappointing dividends by stock. This has been one of the spotlight. The issue ran
aircraft
companies had
al¬ the hardier of the Street ahead with vigor after hold¬
ready cooled off the ardor for rumors and would seem to be ing for better than a year in
these issues before the sur- rife again. Another was talk approximately a three-point
prise announcement came of some important switching range. Its peak gain was twofrom behind the Iron Curtain. into Telephone as a shelter thirds of that range in a mat¬
with

OFFICERS,

CAPITALIZATIONS

Feb. 14 to act

❖

brighter spots—American Chemical continued a waver¬
For one thing, specious ar¬ Telephone and Western ing course without much de¬
guments
that the political Union. Telephone pushed to termination on either side of
change would diminish the the best price recorded since dead center.
❖
*
*
cold war campaign, and hence the 1946 bull market peak on
make

BRANCHES

REVISED

historic

issues in the
group
were
Monsanto and
two of Spencer Chemical. Allied

in the

"

#

'

happy side, and by

On the

less any

presented a somewhat irreg¬
ular picture. Among the

Split Impact
coincidence both

much

levels.

with

of this

the market students.

NEW
NEW

the

independent auto¬
makers showed no disposition
transac¬ to tackle their 1954-55
peaks,

Stocks had their full share

about-face.

1953., The shares

recorded in

STREETE

the

Bank

the

approved
to

of

The Board

lead

of

plan
to

a

of the Bank of Gowanda
Marine

Trust

Company

with those of the

presented

as

those of the author only.}

Continued

on

page

33

Volume

181

Number 5402... The

Commercial

Financial

and

Chronicle

(713)
used to

^ We Can

Expect More Exuberance
Than Lethargy in the Economy"
By WINFIELD W. RIEFLER*

supplement

factors

supplying-

of

ume

to

the

over-expanded credit and over-building as among the
that bear watching.
Sees adequate Federal Reserve
regulation of margin requirements to check over-speculation.

active

around

3%,

growth of
Gross

a

the

ures -on

stand

in

economic

situation

strong contrast to those

available

at

when

the

*

Joint

time

last

year

it

the

JHhH

com-

in

h

e a c

,

day's

Winfieid W. Riefier

evidence

breadth

point

the

of

started

the

up

loans

in

the

in its resist¬

As explained in the

upturn.

Economic

Report, the sustained
level of disposable income,

high

coupled
tition

with

and

significant

during

aggressive

retailing

fundamental

that

little in the

result.

the

is

added

year

aggregate to

was

It

credit

consumer

of

most

compe¬

effort,

this

to

A renewed expansion of

consumer

credit, however,

to

been

have

strength

the

of

°

appears

factor

a

in

the

unturn in the last
uPturn in tne last

V

reassuring

because

the

pering off of the defense
and

the

tories

program

working down of inven-

posed

difficult

a

to the economy.

that

It

problem

important

was

large proportion of the

a

released from

sources

is

ta-

redirected

civilian

to

re-

defense

be

higher standards of

consumption,

not clear that the

tation

would

but it was
signs of readap-

show

that

externaf to

was

was

^h!
the

oTWfree
tree

larly

the

Great

ment

Act,

that

a

economy
librium.
vival

PartjcuWestern

and

the

fear

the American

would upset world equi¬
It contributed to

our re¬

by providing

ket for
the

particu-

dispelled

recession in

ecoeco

a strong mar¬
exports, and registered
progress that has been

our

basic

made toward

reconstructing

a

via-

ble international economy. Despite

the first World

in

War

of

Warns Against

There

is

Overconfidence

implicit

these

de-

velopments the possibility of

sus-

and

in

growing

prosperity

availability

of

well

as

for

funds

crash

-Wasiiiftgton,

D.

Jan. 3i, lass,




because

forced

,

that were

under way, there was a

small

sharp

the

of

liquidation

parent that recovery was actually

of

.

.

New York

a

large-scale

.

James

securities

margins.

So

City.

Concagh, formerly with

Dominion

.

Securities

THE

0n
as

far

.

has .l°med the firm

very
these

ing department.

1954

AHNUAL REPORT

i.e.,

.HIGHLIGHTS.

Re"

will

the

con-

the

nurture

Sales of Continental Motors Corpora¬

•

fiscal

ma

and

with

from

ending October 31, 1954

year

totalled

economic

$182,061,693,

•

compared

as

$298,438,605 the previous

terms, this

more

concrete

that credit and

means

year.

needed
to

banks

nental

perform efficiently their func¬

tion
a

by the commercial

of

tion

level

without

to inflation

out

or

of

resource

that wj[j

the cost and

as

credit

for

the

economy's

far

one

sav-

the

available

resources

to

Ms*1

since

fixed

or

tween Srowth in the
j

and

growtb

money SUP"

in the

bu*inesses

and

may

a

•

only

The

reduction

greatest

were

as

in the fiscal
as

•

its

•

am

m
m

Stockholders'

from

If

.

..

The

tlme t0 time<

registered both

Sale of engines and

and

equip¬

looms

use

gasoline

engines, in both

and Diesel versions,

additions

Continental

also

were

The

turbine

gas

program

Aviation

and

made important

1954. C.A.E. enters
stantial
models

a

velocity

of

a

years,

from

will

1954

Engine output (horsepower)

gnd

a

change in the appropriate relation
between
growth in the money
supply and growth in real output.
During the greater part of 1954
when

inventories

were

being

b(lulda^ed and

d^cau
1V2%.

lowered

rates> *irsj' fr0m 2% to
second, from 1 A%
r

It also, in the summer,

reserve

requirements

on

time deposits to 5%, on demand
deposits to 20% at central reserve
banks, 18% at reserve city

Continously
year, open

Net sales

be

throughout

market operations

the
were

its

non¬

parent

progress

1955 with

a

in

sub¬

backlog of orders. Two turbine
are

in

production.

1953

14,659,577

1952

23,073,000

1951

21,390,000

1950

16,950,000
_

14,711,000

$182,061,693

earnings

Net

earnings per common share

$298,438,605

$264,219,009

$166,677,855

$96,404,468

4,542,748

Net

change in the

circulation

under

Fiscal Years

Ended Oct. 31

varietY

change from

result

which

on

Engineering

of Continental Motors, has been work¬

company,

$44,157,312. The latter represents

an

the

Corporation, unconsolidated subsidiary

sub-license

high of

to

family of agricultural, trans¬

ing for the past three

increased

was

made

portation and industrial in-line Diesels.

exclusive

new

of

important forward step in 1954. Impor¬

with

a

factor

a

immediate future,

Introduction of V-8

were

investment

air¬

units for

power
as

1954,

$42,254,564 to

new

importance in the company's

outlook for the
•

strong

designed to continue and

compared

year

its

STATISTICS.

ine result WJU be
as

all-time

of aircraft power

source

'

ti

the

1.

was

leadership.

irrigation

•

y.-s.y.ys

W4M

from

plants, and brought out three
extend

Continental

machinery

a

craft models

re¬

Capital expenditures for plant addi¬
tooling,

1.9 to

maintained

company

position

tant

$3,658,780 in 1953.

individuals

hold cash balances for
f reasons which

economy.

the

by $3,300,000.

ment,

mechanical formula

to Sovern the relationship be-

the

tions,

the

to estab-

wise

second-highest in

1945, and bank loans

duced
•

.

,

total

earlier.

year

$5,1 81,563

'
a

the

$12,201,667,

economy,
Tj

in

$2,640,000

Reduction in inventories amounted to

•

So

quantity of credit is
concerned, it will work for a rate
of growth
in the active money
supply appropriate to the growth
jn

resulted

the

company's history, having declined by
$581,196 from the all-time peak of

the

as

and

pay¬

in

as

a

working capital at the end of
was

being

slightly

during the

each,

year,

Net

liabilities

capital, $31,695,320,

made in four

cents

disbursement of

1954

are

market

and

down

1954.

•

1954

current liabil¬

$35,667,076, the ratio between

assets

growing

instability. So
availability of

ings in constructive activities.

were

previous

concerned, it means that
the System will try to promote
a pattern of finance that will find

a

stockholders

20

the close of

at

$67,362,396, and

high of 1953.

dividend
in

developments

for

make

They
of

increase

an

year ago.

$ 1.83

1954 totalled 80 cents

share.

contributing either
deflation, and with-

enc°uraging

Motors

ments

utiliza¬

or

payments made to Conti¬

fiscal year

financing the economy at

high

Dividend

a

Net working

share in 1953.

per
•

Current assets

ities

share,

a

share

a

share,

per

compared with $6,023,81 2

as

monetary policy will be directed
toward
furnishing the reserves

$1.38

or

$13.38

$12.80

were

Earnings declined relatively less, amount¬

In

resource use.

of

value

tion and consolidated subsidiaries in the

Employ¬

sustained

of

poli-

6,023,812

6,126,021

4,469,063

3,611,245

$1.38

$1.83

$1.85

$1.35

$1.09

$0.80

$0.80

$0.60

$0.45

$0.30

$67,362,396

$104,895,088

$106,074,697

$77,194,737

$44,432,296

Current liabilities

35,667,076

72,618,572

76,692,367

51,185,864

19,376,103

Net

pi
am

31,695,320

32,276,516

29,382,330

26,008,873

25,056,193

Dividends per

short

Current assets

am

working capital

Ratio of current nssets

m

to current Nihilities

Mm

Wm

19 to 1

1.4 to 1

1.4 to 1

1.5 to 1

2.3 to 1

$3,320,000

long-term debt

$3,600,000

$3,880,000

$4,160,000

$4,500,000

Property, plants I equipment (net)

16,654,419

14,085,545

13J73,156

12,533,919

11,826,934

5tockbolden' equity

44,157,312

42,254,564

38,870,752

34,724,731

31,740,668

$13.38

$12.80

$11.78

$10.52

$9.62

Book value per common share

'i
■

/

S'e '

rintinRnta/ Motors rorporation
MUSKEGON.

Corporation

.

beinS held

FROM

ac-

high to be

banks, and 12% at country banks.

£

™

port,

outlook

ing to $4,542,748

to

tained

& Company, Inc., 25 Broad Street,

economic

would

mort-

credit

of the trad-

York atfiliated, Nesbitt Thomson

event

any

of

}

1914.

manager

- —"ager tfthe trad

credit

normal basl~
rough spots and exceptions, bal- ness customers of banks had less
ances
of payments among coun- occasion
to borrow, the System
tries of the free world are prob- sought to achieve these cited obably on a better basis today than jectives by twice lowering its reat any time since the outbreak

Nesbitt, Thomson & Co.,

now

have

m

growth and stability at high levels

continued

world
world,

Britain

This

Europe.

economy

strong
strong

that

expansion

ot

our

continued

is

man-

Alberta

Margins
(2, to avo.d a sUuat.cn
& ^ ^1929, when f b4k in stock p^ees,

by the philos¬

in

would not be
mc/i

trtes
tries

be guided

cultivation

quickly.

nomic

too

th,o
195o

in

embodied

themselves

rp,

0ffice 0f

Edmonton,

instal-

home

and

^

ophy

far

•

.

The response in consumption
most

be

may

System

tinue to

consumer

demand.

the

It is also pos-

monetary

serve

1954, first,

Stevenson, formerly
0f

now

past.

the

demand

ance
to declines in total output,
and, later, in the way it sparked

the

1954.

Rex
ager

generally
they have ever

are

economy.

Nesbitt, Thomson in NY

Reserve's Policies
The

On

'

through

that

ass0_

rather

exce?sive use of credit for purchasing or carrying listed secun<
was
' */_ t0 5f~
strict snarpiy tne ability ot equity
pure asers to tinance their acquisitions on tmn
margins
ol

the

sustained.

One is internal to this

the other external.
the- internal
side, there is

economy,

consumer

for

liberal than

more

worthy in recent economic devel¬

of

the

'

Rex Stevenson With

sible that the volume of construc¬
tion activity now under
way or

note¬

as

fact

consumer

and

loans,

gage

projected

Two features stand out

lethargy in the

Increase in

the

exuberance

recovery.
It is still too early
in the present recovery to tell to
what extent they will
emerge this
time.
Among the straws that bear

been

it appears to possess a con¬

strength

during periods

that

siderable strength.

opments.

types of problems

mo-

recovery
As of the

fall,

last

the

are

ment

accre-

of

*ls lodged with the

as

prudent

than

with

the

months

Board
Governors by the law is
deslSned specifically to prevent an

to the last quarter
In each case, this
concentrated in the

later months of

concern

the

re-

been severe, was magnified into

within

watching is the
terms, both for

1 953.

-

^uirejne"^

margin

in

held

that always emerge

from

menced

ment

was

ciated

ar\*

reSuk*tion of

e

during

^ wU, be increasingly

re(lulJ*ements from 50 to

ri0,011

T

result,

Governors

that

sure

is my personal judgment that the

pur-

tha*

These

recession

that

^rose
uie Ruaiu

„

Product from

early to be

Committee

compared

as

too

be

the recovery under
way will continue without
interruption, but it

historical

by

is

to

appears

problems which will

supply
was
with a
little over 1% in the
money

low

eating the confidence of investors

of

off

relatively

It

of

volume

go, the present reg-

purposes

ulatory authority
adequate.

borrowing to finance stock

all

expand
*

lev-

eled

of

exmand311 hp* ^nifniR^^finan^H0 of the year when it becameclose
be
soundly
financed, r#Sl+ investmenJ- T°wa£d the
ap-

economy

where

is

total

lation,

nearing
the* J point

tions

growth

continually

be

two

stocks and bonds

on

in anticipation of
rising demand, such as inventory accumu-

was

o w

of

For this possibility to be
however it is importaud

.ties

its

February
hearings. Then

N

ployed.
realized

Re¬

held

mid

human resources, now unem-

our

the

on

Economic

the

steady absorption of our
expanding resources, particularly

quarter
the year.

Com¬

mittee

port

this

of

purchasing,

standards, the rate of increase in

whole

as a

banks

National

first

and

stock-

While the

credit loaned

growth in the active money supply.
The growth for the year in

straws

fig-

tions.

to

$4

tions

and

market

banks

expanded by
nearly $11 billion, of which about
billion was
reflected
in
a

eco¬

developments, and states "there is implicit in these
developments the possibility of sustained and growing prosper¬
ity and of steady absorption of our expanding resources. Men¬

facts

the

total loans and investments

commercial

Federal Reserve expert reviews salient features of recent

of

-

stimulate

Taking the year 1954

nomic

recent

in

reserves

sufficient

or

seek outlets for their funds.

Assistant to the Chairman,
Board of Governors of the Federal Reserve
System

most

celeration

absorbing which appeared to be increasingly
reserves in such
a
way as to in- motivated by speculative, in consure
that there would be a vol- trast
to
investment,
considera-

v

The

offset other

or

17

MICHIGAN

ln

their trad~

18

The Commercial and Financial Chronicle... Thursday,
February 10,! 1955

(714)

a saving of 12
getting produc¬
if an emergency arises.
have digressed here because

people

A

Long Range View oi Business

tion
I

By JAMES J. NANCE*

mean

can

months

18

to

in

look.

It

also,

problems.

it is estimated that the work

Over the next 20

Mr. Nance, after reviewing
meats of the

.

to

-

concern

businessmen in the future.

heavy national

\

defense

Looks for

taxes.

Foresees

must
I

high

of

production and smaller profit margins, necessitating a
higher order of salesmanship. Stresses importance of tech¬

consumer

There
for

ulants
eral

had

ended

concern

there

gen¬

would

what

to

as

was

happen

to
and

business

employment.

need

for

view.

effort

invested
it

long range thinking

and

planning by businessmen is
today than ever before
because of the rapidity with which
change can and does occur.
New
developments
and
new
things
greater

which in the

Predictions

past took a genera¬
tion to come into general use now

ranged from

make

optim¬

rosey

ism to extreme

i m ism.

p e s s

record

The

shows

now

that the

econ¬

took the
j u stments

omy

d

a

the

low

point
adjust¬

of the
J.

James

Nance

At

stride.

in

ment

unem-

ployment
reached

peak of 3.7 million per¬

a

less

sons,
which was
of the labor force.

6%

than

production
was,
of
course,
much smaller.
Currently, the index stands at 129
off only 8 points from the peak.
While national income declined,
consumer disposable income after
setback

average

taxes

to

actually averaged higher in
than in

1954

1953.

Some industries and

panies felt

than
however, 1954
second highest
severely

some

is

the

up

in the

year

the

as

coun¬

period

of decline

lasted

roughly 12 months from mid-1953
to

mid-1954,

set

when

upswing

an

in.

this

seen

confidence.

of

have

You

dramatically reflected in

year-end predictions. I have
known

time

a

sion

seven

come

when

never

there

was

given

was

go-ahead

the

In

has

nation's

that

be¬

biggest

short

period,

than 70% of American fami¬

more

lies have

their

bought TV receivers for

homes.

The

effects

have

been far

reaching on the sale of a
great variety of products, on ad¬

vertising

and

marketing

and on
the whole entertainment industry.
A

Permanent

Large Military

count

and

on

must

plan

for

Eisenhower

recently

tary

of

spoke

preparedness

for

50

years.

After two years of intensive econ¬

omizing Defense Secretary Wilson
has said that the next budget will
$33

to

$37

billion

for

Apparently this is
minimum, even
cuts

manpower

for the services.
ernment

costs

look forward
of

$-35

to

de¬

an

reducible
the

to

ordered

now

therefore

can

Federal

a

$70

billion

budget

and

cor¬

respondingly high taxes.

This is
extremely significant to those of
in

industries

whose

products

bear

heavy, excise taxes.
It is
equally significant to every busi¬
nessman
in estimating his com¬
pany's future
dend

earnings

possibilities

most

and

divi¬

and

perhaps
forecasting

importantly—in

the extent to which future growth

last

such

several

1955

in

easily

months will

and

that

better

foresee 1955

even

the

1954.

continue

To

will

sustained

a

into

rec¬

business
the

potential

a

Longer Range Look Into the

business.

Future

not

burden

cept to

try and

with the details

workers in the

that I

say

majority.
to

you

concur

Instead,

the

take

we

one

next

mili¬

permanently
represents
At

are

for

Stude¬

exploring
defense

of the 30 largest

industrial companies in the coun¬

personal analysis,

own

my

As

course,

also

market.

unanimity I will

In view of this

of

built

opportunity

every

A

of

volume of

economy

baker-Packard

ord set in 1953.

retained

I

ex¬

with the

would

few

like

minutes

to

should

we

of the

one

world,

be

part

believe
this pro¬

we

of

Recently the Administra¬

gram.

tion has indicated
to

largest metal

reverse

that

it intends

the policy of

narrowing

consider the longer range future.
What are some of the things you

the defense base, which it has pur¬
sued for two years.
From my ex¬

and

perience in trying to get military
production going under emerg¬
ency conditions
in two wars, I
am
firmly convinced of the wis¬

I

on?

as

business

What

men

trends

are

may

count

we

likely

to encounter? What problems
may
lie ahead for our individual busi¬
and

nesses

for

the

economy

as

a

dom

The

whole?
There is certainly not time here

today for
a

me

few of the

answers

hasten
are

of

to

to

to explore

more

than

principal parts of the
these

questions.

1

too, that since we
estimating the future your
say,

views may not coincide with mine.
In fact, they may differ
radically.
I firmly

believe,

ho,wever,

that

gives

a

broad

narrow
a

a

•An

address by Mr. Nance

New

York

City.

Chamber

of

before

Commerce,




the

New

base principle only

hard

Much
corps

technicians

I

important
of engineers and

with

Without such

a

to train

a

sary
from

scratch

actual

produc¬
military work.
group it is neces¬
whole plant staff

at

when teachers

reflected

are

the

very

scarce

or

time

expect

see

Conversely,

to¬

gains which have to be passed
in

on

higher prices and which char¬

caused

the

long period of

war

Intense

More

the

of

briefly

them.

are

The

course.

intense

is

expect

can

penditures

advertising
fight to build

on

ufacturers

for their brands

ence

heavier

even

as man¬

be¬

I

the

of

one

and

system

productive of
ever

gain

the

supports.

individual to

have

year you may

to

ers

is forced

war

the skilled work¬

produce

than

more

now

we

are

produc¬

our

growing in
quality.
Perhaps most
important, the American people
are
dynamic in their wants and
are
willing to work to gratify
them.
in

They

improvements
products and will

want

established

dispose of goods before
worn

if

out
are

value

The

have

they

improved

made

new

is

are

replace¬

available.

They

products when

demonstrated.

businessmen

America

of

gigantic job ahead of them.

a

The physical needs of our growing

population

prodigious.

are

Given

respite from hot war, I believe
have solid
bn+h

reason

we

to be optimistic

for 1955 and for the years

to

follow.

must

competition
main

it

forces

the

the

any

The

seen.

wider retail distribution and sales

Last

mili¬

a

to

free economic

our

makes

to

music
We

that
two

which motivate

profit

on

ears.

s

however,

some,

competition

be

not

,of

more

of

pressure

may

prefer¬

as

so

ex¬

more

businessmen

grant,

many

prospect

greater

We

for

have the capacity, the

know-how and

their

operating and suggested
implications as I see

There

and

ahead.

need

Unless hot

upon us, we

few

on a

major trends which

margins,

years

use,

more

expect this rate of gain to

increase.

avidly accept

Competition

I have touched

as

in the

to

me

ments

shortages.

such

Cleveland Branch

has

world

second

Gcsgrove, Miller Opens

most

force

is

opportunity provided for the
better himself.

De¬

CLEVELAND, Ohio—Cosgrove,
Miller & Whitehead, members of
the

New

York

Stock

Exchange,

the opening of a branch

tracting from either of these can
have very serious repercussions on

announce

double those of the years immedi¬

the

Cleveland, Ohio.

ately following World War II.

its ability to provide a steadily
advancing standard of living for a
rapidly growing population.
Ef¬

observed

advertising expenditures

climbed

almost

vertically

to

Greater Mechanization
In

all

trend

tion

of

types

toward

will

business

greater

also

the

mechaniza¬

continue.

A

num¬

of factors will compel this,
including the increase in research,
ber

the ceaseless

upward

the

and

wages,

competition toward
production

pressure

on

compulsion
more

and

of
efficient

distribution.

Greater

mechanization, or if you
will, automation, will also mean
for every business a proportion¬
ately heavier investment in fixed
assets.
If

believe

can

we

population,

on

think

we

can

the

and

experts

I

certainly
because they have

underestimated

the last 15

20 years, our present

or

record rate

five

or

we

beginning only

six years from

And

now.

currently growing at the

are

rate

of

50,000

adding

or

for

of growth will mush¬

in the 1960's

room

a

each week

persons

city the size of

me¬

tropolitan Detroit each 11 months.
There
in

productivity of the system and

forts

to

the

have

are

a

number of elements

population

trend

which

range implications for
business, including the size
of families, the proportion of chil¬
dren, young people, middle aged
and elderly people.
In addition, there are the very
pertinent questions of where peo¬

ple will live and where they will
jobs.

working

competition

of

to fulfill the great

progress

we

opportunity for
have.
Every

the

thinks

going is rugged and he

that

to soften

kind

some

of

law

a

competition in his indus¬

try would be desirable.
Workers in

their

the

that

ber

from

only

remem¬

real

security

successfully compet¬

flexibility

to

make

change.

Labor

must

mobile.

be

indefinitely
idled
mand

for

as

capital

Income

be

cannot

paid
the

because
the

workers

to

de¬

consumer

products

mechanization,

which

is

the

I

to

am

not

talking jungle

ics

here but

rather

of

progress.

economic

simple fact is
can
be paid for

that no group
work undone or unwanted by the
consumer
without injury to the

whole economy.

pitfails

dicate

that

tinue.

The

this

trend

will

con¬

migration from

newer

in

If

we

avoid such

and

countryside, made pos¬
sible largely by the automobile,
already has affected many lines
business and

of

will

continue

to

so.

is
in

one

the

long

trend obviously
dynamic factors

range

business

out¬

and

tin

American

even

faster

standard

rise

of

liv¬

itary production and despite
increase
too

in

young

economists

the
or

number of

too

have

have achieved

crease

in

Mr.
formerly
associated
Banker, Inc.
this, he was associated

was

the

American

to
a

shares.

field,

Well known in his special

he

has written numerous
leading business and
financial publications.
articles

for

A. M. Kidder to

Admit Conlin and Neal
A.

M. Kidder & Co., 1
Wall
Street, New York City, members
of the New York Stock

Feb.

on

Conlin

17

will

admit

Exchange,
Frank

W.

and

Harry J. Neal, Jr. to
partnership. Mr. Neal will make
his

headquarters
burg, Fla. *

in

St.

Peters¬

Shearson, Hammill Adds
(Special

to

The Financial

Chronicle)

LOS ANGELES, Calif. —Ira F.
Martin
is
now
connected
with

Shearson, Hamill & Co., 520 South

Despite the need for heavy mil¬

we

of the most

I

ing.

the cities to the surrounding sub¬
urbs

the

as

asso¬

bank and

number of securities firms,
specializing in bank and insurance

econom¬

The

the

as a

anal y s t.

Above

increased
productivity,
must not be impeded.
key

Burns

stock

their

of

industry is not sufficient.

all,

for

room

well

as

business

technology strongly in¬

insurance

with

ricultural

the

ciated with the firm

Prior

be

leading securities ex¬
have
announced
that

Robert S. Burns has become

If there

there

why we cannot Took forward to a
long term uptrend in the level of

is

other

changes,

must

economy.

progress,

move¬

of the oldest

one

trends

Hayden, Stone & Go.
Hayden, Stone & Co., 25 Broad
Street, New York City, members
of the New York Stock Exchange,

panding total
be

Building,
The new office
the
management
of
D. Murch and Everett

Robert Burns With

with

to

Hanna

King. Both were formerly with
Fulton, Reid & Co.

ing in the market place and from
maintaining a prosperous and ex¬
is

552

A.

and

laudable

very

quest for security should

city. Increased
mechanization and improved ag¬

population

under

Boynton

businessman should remember this

when

ment from farm to

For example,

is

at

now

have just been dis¬
cussing—and I believe we can rely
on the good common sense of the
American people—I see no reason

find

office

artificially

threaten the system and its chance

long

every

the

restrain

honest

comes

The population

skeleton staff of experienced

that

fully restored competition
mitigates against unearned wage

The trend toward nationally es¬
tablished
and
promoted brands,

it¬

Hav¬

believe

I

day's

of the

of snortages will also

in

and

some

era

the

size

order of

clearly discernible be¬

that

Now

tive

are

was

and

and

lieve

depend on a higher
salesmanship, which will
emphasize quality and value rather
than price alone.

diet

proving

smaller mark¬

a

better

in

consuming and
capacity is still

toward

I also believe that success for

up.

and

leisure.

im¬

increasing
and
our
mechanization

tne

of

trend

variety of home appliances in

constantly

acterized

to

acceleration

established

price

This can come about
through increased produc¬
in turn is based on

wages.

only

all sellers will

non¬

national survival

self may depend on speed.
a

in

I

and

are,

before.

ever

larger volume at

do

ing

value

more

distribution

long

line to buy,

Consumers

vengeance.

believe,
In

mar¬

have relearned to shop

consumers
a

the

king in

waiting in

more

tion experience on

existent and

York

base.

manufacturer mothballed

machines.
is

production

continuation

see a

the long time upward trend in

tivity, which

After years of short¬

and

with

is

consistently

manufacturers,

tary

topping the

of

earnings.

minority

year

A

financed out

be

may

place.

ages

ir¬

unanimity
of
opinion
among economic forecasters. They
predict, with scarcely a dissent¬
ing voice, that the upswing of the

greater

ket

after

With other gov¬
we

accomplishing this, I expect

in the future to
of

methods.

it

own automobiles, in the
growth in the number and

great

tary requirements has been built,
it seems perfectly reasonable to

In

discovered

older

lies which

and better products and

new

inevitably will come out
putting pressure
products and companies
which fall to keep abreast.
Sec¬
ond, the American public has re¬
of such an effort,

on

in

high state of mili¬

a

so

home ownership, in the
higher percentage of fami¬

by increasing the standard of liv¬
ing of every income group.

both

year

was

products and new

make further progress

looking ahead five, 10 or 15 years
I place a permanent large mili¬
tary
program
first.
President

maintaining

Last

billion

$4

New

dollar, compared with $4 a
decade ago.
You can see the ef¬
fects wherever you look—in in¬

tary build-up has levelled off and
the plant capacity to meet mili¬

real

fore the

to the things we may

on

money

research.

in

estimated

and
is being

more

of the

much

which

Program

Getting

and

the. conscious than

by

it

ago

years

of

one

industries.

us

—

The result of this excellent per¬
formance has been a phenomenal
revival

commercial

carry

totals

Since TV

First,

spending $5 for goods and
services,
after
allowance
for
change in the purchasing power
now

creased

Economy Should Be Flexible and
Kept

methods

Federal Communications Commis¬

fense.

look back now, we can see

we

that

the

com¬

try's history, topped only by 1953.
As

overnight.
in point.

adjustment more
others.
Overall,

the

impact felt almost
Television is a classic

case

The maximum

drop in production, as measured
by the Federal Reserve Board ad¬
justed index was 14 points from
the 1953 record high of 137. The

their

future,

two principal reasons

are

my

more

living standards.

the

1975.

than

rather

invested.
Fifteen months ago when it be¬
came evident that abnormal stim¬

four will be needed in

competition

expect

Con¬

cludes, we will have to keep our economy flexible and continu¬
ously expanding by producing new and better products and by
increasing

the

in

with

reckon

more,

competition, with larger scale

nical research and further trend toward mechanization.

produc¬

To return

Growing
to become
I find this anything but a fright¬
less, intense.'
After 1953 you may think compe¬ ening prospect.
Nevertheless, we
will have to keep our economy
tition couldn't get rougher.
flexible, and we will have to keep
More Research Ahead
it growing by the development of

continuing

a

expanded.

by 20 million per¬
three jobs today

For every

to the basic trends which business

likely

and correspondingly

program

intense

more

tion base be

economic and business develop-

post-war years, discusses matters which are

sons.

defense

jobs

be made.

I believe it is vital to the national
the

poses

new

years

force will grow

that

year

must

interest

President, Studebaker-Packard Corporation

however,

L'ach

the

show

old

a

people

to

per

that

decade.

the

,

25%

Calculations

average

(Special

that

LOS

capita in¬

in living standards of
last

Daniel D. Weston Adds

work,

calculated
a

Grand Avenue.

big

person

is

R.

to The Financial

Chronicle)

ANGELES, Calif.—Bennett

Simon

has

been

added

to

the

of Daniel D. Weston & Co.,
140 South Beverly Drive.

staff

Volume 181

Number 5402... The

Commercial and Financial Chronicle
•

.

(715)

\

Public

ptility Securities

■

International Telephone &
Telegraph is
with world-wide interests in
electronics and

telephone

equipment, and in telephone,

business.

While

it

is

difficult

holding

a

the

radio

maufacture
cable

and

Four

of

utility

to

make an
exact segregation,
roughly one-fifth of the company's assets
appear to be in this
country and four-fifths abroad, as indicated in the
following break¬

hundred

the

ancestor,

burned

was

years

Rev.

don, England,

on

'■,<

«

United

England and

rent

desire

Australia

South

America

Japan

John

8

Europe

66

interest)

for

.•

f

o

5*

my

Total

Manufacturing and

Research

$206

Utility Subsidiaries:
Telephone

work

this

7

American Cable & Radio

(majority control)

26

Utility

$125

35

lated

fCash and Misc. Assets, less Debts and Priorities
Total

Assets

$26

7

$357

_

100%

far

Testament

Old

be

and

Chronicles, when he

"Matthews"

England. This
did

System research and manufacturing activities have
developed;
communications industry, involving all phases of me¬

around the

chanical, electrical and electronic techniques—for the most
part
sales are to industrial users as contrasted
with consumer products.
"Communications" is used in the
comprehensive sense to embrace

most

of the

work

advanced electronic-mechanical tele¬

by

a

as

John

the

best

name

indications
*

in

a

are that sales in
1955 will exceed any previous
year.
General W.TE Harrison, President of International Tel.
& Tel.,
recent talk before the New York
Society of

said

that

trends

all

are

creases
ness

We

:

^

>

increases

our

de¬

or

Our

great

lesson

The

need

of

of

the

other
ited

U.

S.,

patents.

of

men
were

of

manufacturing

companies,

although

improvement

is

anticipated

United ^States

the

various

manufacturing divisions—
improvement.

--mostly in the field of communications,

aids,

etc.

Transport

controls,

and

and

area

development.

on

the Mount.

As these students matured and
became acquainted with the
way
businessmen and politicians

our

acted, they truly wondered if
are

Christian

a

who

came

devices

to

radar, communications, etc.
independent

telephone

are

water

rapidly

dependent

naviga¬

outpacing
electronic

upon

They re¬
China saying that the
forgotten book with us.

to
a

Russian

Communists

told

that

missionaries

used

our

Bible only to "put the Chinese
China.

Secre¬

tary

Eisenhower

Dulles—both

men—are

is

doing:;substantial

guided missiles, and in auto¬

identify

and

interfere

with

Federal and Kellogg

are

companies

too,

and

this,

enemy

suppliers to

is

a

large

t<r obey

will

memorize

to

must

we
a

Bible

Teachings

them.

I

install

again

family guide and

guide.

-

•-

Atomic bombs will not

'

believe

the

only' if
terial

as our

.''.i

-

save

not

sale of the Coolerator Division in
ture into the

.

us,

we

stop

success:

were

approxi¬

December.

The company's ven¬

air-conditioning business apparently

came

at too late

date and suffered from
over-competition in the industry.

equivalent to about 31 cents

earnings for 1954

saved

and

atomic

Teachings of the

1954

were

-

1954

Twenty-

fiscal
share

Annual

year

after dividends of $1.25 per
the Preferred Stock. The

profit per share before giving effect to
the additional shares resulting from the

ended November 30, 1954.

stock dividend amounted

*-

-

on

$4.11 per

to

recent

price

yields 3.9% and sells

at

around

clined

$3,677,430

fiscal

from

the

year

1954

about 9 times

International

earnings, and 19 times estimated parent

company

Tel.

earnings.

(consolidated) is nearly double the market price.




&

Book

,

..$839,331*

1953

767,859*

.......

Earnings Retained

post-war

high of $22,983,815 shown for the previous year.
Net sales amounted to
decline of 16% from
Profit before taxes on

or a

income decreased

from

$4,029,806

in

1953

to

types

of products manufactured by
Corporation it is but natural that

your
some

$2,420,462 in 1954. In the

lines

be

would

more

many

profitable

of

business

along with
business

a

in

in

the

low

profit items,
decrease in the volume of
the

higher

profit lines,
coupled with the over-all reduction in
total sales, accounts for the decrease
in

profit before taxes.
Net profit for

-

A condensed summary of the principal items in the Profit and Loss Statement for the fiscal year ended Novemher 30, 1954 is as follows:
shi
~

nts
.

n

.

l!«lu;

ot cr
ne

penses

Working Capital

1954

......$7,625,540

1953

7,019,168

.

,

Income

salf

per

Share

of Common

Stock

1954

$3.93

1953

and, adm.nistrative costs
an

502,947

Net

$19,306,385

°f ^?du®,n« 1 ,e
<^,,",Js Sl,pe' (Mate"
r,al Phased, labor,
P"w,!r:

.......$337,660

1953

s',are>

de-

Stock outstanding at the close of the

25%,

1,270,806
Dividends Paid

1954

1954

our

the estimated consolidated

available).

$ 1,176,991

1953

Report showing the
continuing progress of Struthers Wells
Corporation during our fiscal year

Tel.

probably in the neighborhood of $2.75 and

22,983,815
Net Profit

for the Fiscal Year ended November 30, 1954

As this

share, consolidated share

y

$19,306,385

*

I

4.47

usiness ex-

)

........

Profit before laxes
Income

—,

,—_

Dividends per
of Common

on

$ 2,420,462

Share
Stock

1.243,471

Net Profit

(Cash)

.

(Stock)

..

1953

(Cash)

.

1953

Taxes

1954
1954

Federal and State Income

(Stock)

..

$ 1,176,991

Book

.

Respect/ully submitted,
1954

John

T.

Dillon, President

.$1.60

5%
.$1.60

5%

Value of

Common Stock

1953

ma¬

power

Bible;

THE

the year was $1,176,991
compared to $1,270,806 for the preceding year, a decrease of 7.4%. The
net
profit for the current year was
equivalent to $3.93 per share on the
271,916 shares of Common Capital

a

parent company share earnings about $1.35 (exact
figures are not

value

Formosa
be

can

worshiping

and return to the

as

-

Formosa.

save

and the entire East

1953

for

un¬

and

than others. An increase in the volume

same as in 1953, before the special and
nonrecurring
charge of $2,400,000 (net) representing the loss resulting from the

the

Bible-reading

handicapped by this

STRUTIIERS WELLS CORPORATION

$19,306,385

it

mately the

At

and

Net Sale*

the year prior.

addition,

According to General Harrison, 1954 earnings

was

York, Chicago,

and other large American cities;
for post-graduate work concluded
that we are hypocrites.

taught

OF

Sales

we

Students

fortunate situation. Fighting alone

national

where IT&T is conducting extensive

potential market for electronic applications.

loss

nation.

to New

Bible-reading families with daily
family
prayers.
We
were
all

"telling this story

Summarized herewith is the

by

Teachings, especially by the

Sermon

President

reading today. When I was a boy,
New England families were

Bibleas

In

research in electronic apparatus for

electronic

air and

weapons

and. are--beeeraing

controls; and this is the

a

stu¬

AT A

A substantial part of sales is for various
government departments

the

These

GLANCE

seventh

Federal Telecommunication Labs,
Farnsworth-Electronics, Kellogg
Switchboard <& Supply—all continue to show modest

matic

China.

greatly impressed

countries: for example, in

when rate relief is obtained.

research

our

vis¬

Col¬

FACTS

the various utility properties is
(with the exception of Puerto Rico) less satisfactory than with the

manual

and
have

to sleep" while we robbed

to

most

a

take out only

the

I

Chinese

leges and have seen the Bible be¬
ing taught there to the brightest

to various restrictions imposed by foreign govern¬
some $2,500,000 (about 35 cents a
share) is

The situation with respect to

tional

these

Considerable

Norway the com¬
5% on original capital which last year
$23,000 out of $500,000 earnings. However, currency
restrictions are easing and it is hoped that in future a
larger part
of foreign earnings'can be
brought to the United States; mean¬
while, earnings retained abroad are being "plowed back" in plant
improvements and expansion, or additional working capital.

In

England,

Western Allies.

some

was'about

1

Formosa?

leaders

of today
largely educated in colleges
by missionaries sent to
China by the Christian churches

Thus, although

can

"Bomb"
America. Read

founded

encountered, however, in converting the earnings
property into dollars and bringing them to the parent

the Scandinavian

pany

v

Chinese

ihcluded in dhe oonsoiickrted earnings for-operations in the
Argen¬
tine, Brazil, Chile and Spain, none of these earnings could be
transferred into dollars. Restrictions of another kind are
imposed
in

survive.

The

Bible

more

save

to

only

were

,

applies

the

What About China and

our

Children

are

them

Must Again Teach Bible to

Seeond

we

we

Isaiah, Chapter 31.

Bible is

right.

hope

we

is

can

turned

willing¬

our

target

are

company, due
ments;

marker

of

to sacrifice for what is

The

martyred at

martyrdom;

It

according to

material

wealth

Security Analysts
in the various manufacturing plants
Foreign plants are well established and

licensed -under- 'Western ;'Electric

of foreign

his

barometer

on

more

good

were

both at home and abroad.

difficulties

of

S.

dollar.

our

crates

bronze

U.

spiritual strength is the value of

the

seen

the

people's
sacrifice. When the willingness to
sacrifice
declined,
the
nation's
economic strength declined
along
with its spiritual strength. In
fact,

in Holland.

"SmithfieW,?'' where I have

the

greatness of
nation has been

Holland, the English im¬
ported flour, cheeses, and other
foods. My ancestor arranged with
the packers
of the barrels and

was

that

possible

From

Finally, he

I would go even further

say

that

sm

His

powerful

don.

Norway, forexample,

phone switching system was recently installed. Foreign manu¬
facturing sales in 1954 were close to the record figures of
1953, and

that

made

In

radar devices.

statistics-

which

young
dents

The companies are
making good progress in adapt¬
ing eleetronic devices to existing and new communications systems.

systems for the transmission and recep¬
signals of many kinds, ranging from the direct
impulses of telegraphy to the widest bands of high fre¬
quency microscopic alternating currents for navigational aids and
tion of speech and

quoted

can

Bible

Jesus'

the

current

accom¬

The

followers

containing these food prod¬
ucts to hide a Bible among the
contents
and
thereby smuggled
these Bibles into England. When
he returned to England, about 10
years later, he was arrested and
imprisoned in the Tower of Lon¬

all forms of devices and

It

willingness to sacri¬

a

demanded

and

in 1537; and he

was

today.

every

was

completed

—

S.

basic

a

increase; but these

never

eousness.

Bible in its entirety for readers in

million minority interest in Mexican
telephone utility.
tSome $40 million in cash or
government securities—ITT and ISE
parent companies.

is

affairs,

judged by their works of right¬

He

Eng¬

Testament,

martyred
therefor.
Then
Rogers—under the assumed
of

^Includes $20

II

as

New

of the

Faith

little unless

mean

Jesus

help of Coverdale, trans¬

the

portion

and

fice.

land. Tyndale,
with the

Total

in

day

into

culating
complete

Bible

Roger W. Babson

that

priests

church membership

see

panied by

English
language and

*$92

Radio-Telephone

figures

translating

cir

and

and attendance

the

58%

Church

is good to

martyred

the Bible

of

difficulty of the U.

Rev.

his

preachers

our

Rogers

wasv

1„—-1-^1,—31

(minority

is

us

First,

willingness to make any
sacrifice,
including
their
lives.
Our unwillingness to sacrifice
for

today.

The

35

and

much

better

through jealousy, the more
enemies we will have.
Only as we
practice the Bible's Golden
Rule,
both in national and
international

many lessons for
above experience.

consecration of the

the

and,

their

cur-

com¬

ments,

(minority interest in Ericsson)

is the

The

have,

are

from the

to

and

some

$61

Other Continental
H>'

add

Research Subsidiaries:

States..

Sweden
7

him

(Millions)

.

Lon¬

too

defense.

Importance of Sacrifice
There

commemorate

Book Value

Manufacturing and

my

Rogers,
in

Feb. 4, 1555. To

down of investments:
-

ago,

John

at-the-stake

France.

the Chinese Wall
the Magiriot Line
This nation is de¬

or

pending

teaching of the Bible by missionaries and Formosa.

company

than

China,

saved

Mr. Babson discusses the introduction of
the Bible in England
and the importance of sacrifice. Sees a
connection between

i;1 International Telephone & Telegraph Corp.

more

saved

By ROGER W. BABSON

By OWEN ELY
.

any

The Bible and Formosa

19

.........$31.75
..

30.79

including 5% Stock Dividend

20

The Commercial and Financial Chronicle.

-ifr.JT

(716)

revolutionary changes during the
last 20 years. More families have
more insurance, more income, and

A Broadening Future
For Trust Services
t

need for trust services.
In

addition, total liquid savings
of individuals are over $200 bil¬

By HOMER J. LIVINGSTON*

«

the

paralleled its economic growth, ABA President decries idea
these services have passed their peak, because inheritance and
high personal income taxes are resulting in smaller estates.
Examines areas that indicate a steadily growing demand for
trust services that will come from further expansion of busi¬

Visualize what

well

as

,

planning

lias

the

to

come

leadership, economic and finan¬
cial, because men and women of
initiative, in¬
dustry, thrift,
fy - '■vv&'yx&.-'XZ
■"/
inventive

and

.genius
had

have

freedom

and

A

20 years, America
the pinnacle of world

past

A

Great

ture?

fu¬
not

by thoughtful analysis?
Let
us
attempt a longer view
ahead, a broader view, a view all
around the
subject.
Let us see
whether a vigorous economic
expected to continue its strong
the American economy

in the years

trust

it

services has in

ahead, and bring with
for

demand

a

trust

greater

services.

general paral¬
its

these

correctly appraise the
Are they or are they

flow from

opment of the

leled

With

Do

There are, it seems to me, many

eco¬

factors which

economic de¬

assure

nomic growth.

velopment in the future, fully
great

have experienced

in

it

almost

1900

the
J. Livingston

Homer

before

trust company
services
began

to

productive

produce

and

save

capacity

$350

build

build

it

so

billion

goods and services.
to

its

could

annually
It

took

in

time

Let

growing
ices

million

nation

a

inhabitants

engaged

largely in agriculture to
of

162

million

greatest

world with

a

plant

with

90

million

insurance,

12

the

in

the

60 million work¬

over

It took time to build

ers.

nation

with

persons

industrial

from

a

of

owners

million

nation
life

persons

covered

the

forces

Need

them

public

cor¬

porations, and with approximately
90% of all families now having
some
form of savings or invest¬
ment.

But

it

and

it

has

property

created

wealth

and

vast in size that trust

so

services

accomplished,

was

imperative

are

if

hundred
mands

and

beat

day, and

that

forces

omy,

or

in

our

the

the

together

changes in
we

sponsibilities and
tunities

their families.

properly

Most

Although
services
there

the

has

are

growth

been

some

of

trust

remarkable,

who

ask

whether

this

development may not have
passed its peak. They call atten¬
tion to high inheritance taxes and
high personal income taxes as
which

factors
smaller

estates

result

may
and

trusts

corporate development and the

private

of

property

the future will compare
with

the

past.

that "All's

They

are

favorably

They do not quite

with

believe

in

Browning

right with the world."

not

so

sure

as

Voltaire

that "All is for the best in the best
of possible worlds."
have

some

At least, they

lingering

doubt

that

the growth of trust services in the
years

great
•An

ahead
as

can

possibly

be

as

it has been in the past.

address

by Mr. Livingston

York

City, Feb. 7, 1955.




we

may

at

outstanding

wills,

increase
lies

—

in

the

to be¬
under¬

insurance benefits for

a iarge per¬
centage of them is based upon the

laws

of

more

growth

to

fami¬

growth

than

We have

wth

$5,000
since

the

num¬

incomes

of

annually—over

has increased

—

a

is in
The

group.

families

900%

class

Last

more

1941.

new

kind of middle

sold

in

force

ficiaries

the

than

The

ernment

by

market

for

services of all kinds. The substan¬

increase

in

the

number

relative

of

most

families

important

distribution

has

new

still

men

bene¬

seem

is

also

that

fact

Most

past

will.

a

service

the

even

the

stockholders

substantially.

and

has

the
gov¬

optimistic
we

shall

enumerate

service,

saturate

long-term
ward.

There

has

increase

in

mental

have

economic

only

the

to

major

economy

the

nation's

is

trend

sometimes

up¬

have

illustrate,

have

had

in

recent

years

for

field

of

spectacular

large

expenditures

housing construction, and yet
over 60%
of our homes today are
old,

and

than

30 years old.

years
more

Large

scale

50%

modernization

of
of

trusts

and
greater use
services by individuals.

great programs of rebuilding. En¬

Govern¬

tire

programs

trust

The driving force of our restless
and expanding research serves not

only

satisfy

to

the

of

wants

an

increasing population, but also to
create
new
wants
and
higher
standards.

mind

The

frontiers

of

closed.

be

never

can

the

They

infinite.

are

The

American

economy is dy¬
technology and in¬
dustrial output, and in the wide

namic

its

in

distribution

income

of

Joint

The

masses.

estimated that

put

on

recently

national out¬

total

increase

may

the

to

Committee

the Economic Report has

approximately

1965. They also estimate
expenditures
on

by

business

about

$60

amount

may

billion

per

by

year

1965, compared to about $38 bil¬
lion

in

create
of

need for

capital

than

Such

1954.
a

on

growth would

scale much larger

a

before.

ever

accumulation

an

Our

trustees

corporate

service

might

as

well

parallel the growth of industrial
production. Large scale financing
by companies would mean more
business

as transfer
agent, regis¬
trar, fiscal and paying agent, and

depositary. As businesses grow
larger in number and in size, tra¬
ditional
to

be

the

services

trust

expanded

demands

ices.

Some

have

corporate

of

serv¬

the

growth of
corporations is indi¬

America's
cated

for

idea

will

accommodate

to

increase

the

by

total

in

lion

arrange¬

industrial

of

corporate assets from $334 billion
in 1930 to an estimated $600 bil¬

institutional

and

industries

existing homes seems inevitable.
Many of our cities must undertake

retirement.

for

ments

a

need

of

that

Figures

To

the

have not begun
possible markets.

been

believe

greater eloquence than phrases.
we

we

our

We

understand

to

are

to

who

as

have another seri¬

few

a

be

to

sustaining factors in the

20

trust

those

as

They mean
with a greater

They mean
larger pension and profit-sharing

to

have

not

never

them

important

do

recession.

ous

wo¬

of

unaware

We

downs.

over

this

larger

mil¬

and

jobs.

new

plant and equipment

Upward

may

will.

In

of

50%
Trend

in the coming decade
experience
economic
ups
and

grown

and

men

We

simplicity and inexpensiveness of
having an attorney draw up a

sections need modernizing in
to eliminate slum areas.

order

School construction may reach a

come

reflects

changes in

our

far-reaching
of life.

way

and

in

Public

Growth of Private Pension Funds
^

The growth of the private
in

plan

War

during and
II; and in that

the

greatest

been

pen¬
occurred

industry

since

World

period,
growth has

same

dollar

the

uninsured,
or
trusteed
type of pension plan.
These
trusteed
plans are often
among

administered by the trust depart¬
ments

of commercial banks, and
predominantly represent the plans

alone

has

been

estimated

a year. Hospital
requirements
are

be $1

to

utilities

reach

an

more

than

tronics

at present. Total
corporate
earnings, after taxes, rose from
$3.9 billion in 1930 to nearly $18
billion in 1954.
Corporate divi¬

imagine,

now

time

uses

open

the

on

we

the

and

ment of atomic

elec¬

promises

which

us

The

energy

to

develop¬
for peace¬

practical scale

a

do

cannot

may

eventually to vir¬
unlimited power for the

tually
entire

way

country.

Increasing capital outlays may
expected for a long time to
come
for
highway construction.
Whether

not

or

attain

we

the

funds

creased

destined

force

pensions.

to

be

in¬

properties

and

be

to

Vastly

are

placed

in

your

What

will

in

growth

the

be

of

system so it
adequately meet the
needs of the continually increas¬

will

highway

our

more

ing number of motor vehicles.

pension

social

few

of

the

of

through
creasing

questions

constant

problems

of

study
the

channeling

pension
impact

investments

on

that

are

aged,

the

fundamental

in the economy

forces

is the rapidly ex¬

panding volume of scientific re¬
search. More than 5,000 privately
industrial

owned

organizations

employ 250,000 scientists. There is
direct relationship between this
output of

a

the

work and the industrial

savings

the_ in¬
pension fund
capital

the

of

the

funds,
of

One

What

plans for the future should trust
departments develop in prepara¬
tion for the fiduciary responsibil¬
ity that pension
trusts create?

mar¬

the

nation.

period,

postwar
created

For

at

industries:

least

example,

in

the

research

SOCial

three

new

major

petro-chemicals> elec¬

In-

undergone

kets, the competition that pension

tronics, and nuclear energy. In the
next

forms

receive

might create among other
of savings, who will ulti¬
mately pay pension costs, and the
important question of the demand

are

before

us

as

the

standards

to raise

determined

are

people

American

The

progress.

living further. Higher standards

of

living

are

inevitably

a

services.

Trust

in

operate

accom¬

rise in the use of trust

panied by

an

services

economic

not

do

vacuum.

few

industry, should
greater stimulus

years,

even

at the center of
economic forces which
reflect the growth and progress of
a

from

technological

1939,

for

instance,

progress.

it

was

operate

nation.

Imagination, vision, and affirm¬
ative
action
are
required in a

Changes are
in the life
enterprise of a living people.
capacity to grow will depend

growing
and

on

economy.

our

In

esti¬

taking

may

place

willingness

problems

with

to

fresh

confronted

be

competition

as

advantage of

We

keener

with
seek

we

new

face fresh
minds.

to

take

opportunities to

provide trust services. The future
holds

a

this

challenge,

has

funds

one

con¬

brains, industry, and initiative of
America
are
poured
into
the
channels of economic and social

Our

Research

expected

funds?

may

achievement

forever

Expanding Volume of Scientific

economic

the

we

opportunities.

They

hands for management.

manifestations

ahead

record

that in the years
expect still greater
New
levels
of

proves

those great

build

working

the

submit

such

expanding
by

I

projected goal of $100 billion for

expenditures in the next 10
years, we are certain that enor¬
mous
sums
will be spent to re¬

covered

that

a record
billion last

$10

clusively

of

be

nearly

year.

to

spending rate of

billion.

$4

fo.r

expected

are

annual

industry

things

billion yearly.

$2 billion, and this figure will
grow steadily with a constantly

at

effect

decisive

in

Is

com¬

stress

bondholders

become

come

this

for

need

need

the

to

have

we

emphasized

will

absolute

protect

importance of having

prosperous, and con¬
stantly expanding—and this great
middle-income group promises to

tial

to

communities

more

serv¬

have to offer.

we

enterprises,

new

lions

that

against
sudden
catas¬
It is our obligation in

trophes.

growing need for the trust

Long-Term Economic

bringing to well over
$300 billion the amount of insur¬
ance

single ele¬
ments of change in the economic
picture is the growth in the na¬
tion's population. Census studies
estimate that during the next 10
years the population will increase
approximately 2V2 million persons
per year. A larger proportion of
our people are marrying than ever
before, and they are marrying
younger.
Families
are
growing
larger. The increasing population
is creating shortages in local fa¬
cilities. New bond issues are being
sold to meet the requirements of
larger communities. We can be
especially helpful to many munic¬
ipalities in connection with their
ices

ucts,

need for trust services.

the

of

insurance,

a

big,

a

instead

life insurance
$47-% billion of

year,

panies

Just

—

state

taking

are

nation.

our

One of the foremost

wishes.

of large corporations. The annual
flow of new money into pension

enormous

tremendous

of

area

million

than

the

of

deceased's

funds

importance

changes in this generation.
'

the

the next

middle-income

their

middle-income
ber

leave hp
distribution of the

the

so

people

re¬

numerically, their needs, and the
opportunities they have opened up
to American industry.
Today the
largest

those

and

greater abundance, lower
costs, price reductions, new prod¬
mean

of

Income

the trust businesses the

estimated

social

by

rising
irresistible. They

are

payments reached

Families
Of

been

the

with

productivity

estimated

expan¬

to

Middle

national

deeply concerned than

changes that

in

place

are

motion

also

be rendering trust

In

in

economic

departments

our

and

ment

years

reason

also

trust

in

set

technology

dend

the middle-income brackets is

Zti "b'The' a.
New

need

Increase

17

Robert

the

during

that

forces

high

services in the future.

the

into existence in the early part of
this century. They wonder wheth¬

growth

We

in

in

future.
They point to the high
corporate income taxes compared
to the taxes when many of our
great corporations were coming

er

is every

fact

The
modern

other areas of
development simply magnify the

upon

from

scientific research laboratories.

larger

many

based

construction

changes and

occur

These and

is

come

year.

stand better the magnitude of the
social
and
economic
setting in
which

has

largely

will

decade.

of

these

there

lieve

Services

into

years

which

products

employment in

States

peak of $3 billion

trust

economic

and

ing a will.
Each year, for ex¬
ample, about $500 million is paid
by insurance companies for peo¬
ple killed in automobile accidents.

sion

the

coming

larger volume.

and

United

into
being and are
rapidly
from
year
to
This concern with retire¬

trust oppor¬

in

Wills

70%
of
American
property owners die without leav¬

need to understand the

for

reasons

sion

our

the

in

the

great

represent
our

trust service which should grow

a

one-half of all the

when

economy

measure

enlarging stream. Here, too, is

an

technological developments. To¬
day it is estimated that possibly

growing

Yet,
shifts in

dynamic society. If

our

to

are

fail to

we

these

American

taken

that

importance.

aggregate,

of

for

such
econ¬

to accept them

come

their

nature

vide

making
in our

are

very eyes

is to function efficiently
are
to plan
intelli¬
gently for their futures and pro¬
men

each

as commonplace.
They are oper¬
ating each day so clearly, so signif¬
icantly, and so unmistakably be¬

we

if

our

desks

our

changes

we

ahead,

economy

in

ahead.

years

For

growth

It

number of

tend to overlook the

which

significant

Some

enlarged

nearly

are

upon

we

the

and

serv¬

further

old, but some
entirely new.
A
one
competing de¬

are

evaluate

of

owners

and

steadily

a

trust
the

the

services.

our

operating

today

economy

counts,

million

for

with

come

the

of

try during the next decade.

fore

8V2

few

a

expansion of business and indus¬

by pension plans, 53 mil¬
lion individuals with
savings ac¬

shares in private

at

demand

will

of

build

look

us

that indicate how

areas

of

3.9

growth

be expected to have a force¬
impact upon our trust facili¬
ties and provide a continuing and
expanding need for trust services.

took

to

economic

may

banking system from
three banks to nearly
15,000 banks
with deposits of $200 billion.
It
a

time

This

past.

ful

to achieve real
stature and prestige. It took time
for a new nation without
capital

gradually

we

as

find

will

income, home ownership, and the
ownership of other property, there
is a great need for wills and estate

as

However,
was

,

before

opportunities in the

sustained

be

devel¬

nation's

facts?

Accompanying the growth of
pension trust is the develop¬
ment
of the profit-sharing trust
into which funds are flowing in
the

more

services

products

in retirement.

ever

trust

stream of income and wealth may

oppor¬

tunity.
The

the

are

number of persons employed had
jobs that were based upon inven¬
tions, scientific discoveries, and

even

Long View Ahead

What

views

mated that about one-third of the

industrial

new

of estates.

Estate
In

and

personal services that may arise
from increased spending by those
• ;

for

raising the aver¬
age income level of our families
justifies the expectation that our

other factors indicating the long-term
upward.
v ■
<
■

as

the

Our progress in

economic trend is

\

,

this income dis¬

these large savings

and

in

mean

growth of private pension funds and growth in nation's

,

is

amount

tribution

along with the rapid increase in middle-income families.

population,
;

alone; and
increasing, for our

people are saving annually ap¬
proximately 1l/z% of their total
disposable income.

Pointing out the development of the nation's trust services has

Cites

and

deposits,

bank

cash,

government securities

President, First National Bank, Chicago, 111.

ness,

in

lion

President, American Bankers Association

Li

wealth; and they have more

more

Thursday, February 10, 1955

..

challenge for

heavily
ence

on

us.

To meet

can

draw

the collective experi¬

of the last hundred

plan for the
the

we

years

years

to

ahead. We have

heritage, the trained trustmen,

and

with

the
a

inspiration

realization

of

that
the

comes

impor-

Volume

181

Number

tant place our
I

Commercial

come.

that

in

I

also

am

greater

future

for

Frederick G. Shull in letter

trust

Editor, Commercial

Securities Offered
5 %%

time

preferred

of

series,

of American
Works Co., Inc. was made
yesterday (Feb. 9) by an under¬
writing group jointly headed by
C,

Langley

&

Co.

First Boston Corp.

priced

at

$25

and

share

per

considerable

to

years

subject,

study

a

Sound

"quality"

been

Money—
money
has

denied

of

taken

were

off

ac¬

the

Gold

"printing

at

of

additional

one

which

for

(EST)

p.m.

we

lack

of

est

Feb.

I

an

benefits

of

ounce

entitled

am

under

known

partners

William

are

re¬

of the

gold

firm

is

the

Houston

business.,

A.

Dunn,

ated

with

been

bankers,

eight years, and

was

in¬

partner in

a

are

Paul

G.

and

Treasurer,
Harrington, Vice-Presi¬

to

The

Financial

Chronicle)

LOS

ANGELES, Calif.—Leo D.
Bartelme, Jr. and Howard F. Wer¬
have

ner

the. past

for

securities

Standard Investment Adds

associ¬

Fridley and Hess,

vestment

Officers

a

dent.

(Special

has

in

engage

President

and T. R.

corre¬

witty

Exchange

Building to

stocks, bonds and mutual
shares, offering special serv¬
Johnston

Investment

—

offices

ices to investors.

Mr.

Colo.

Service Co. has been formed
in the Mining

as

become

connected

with

Standard Investment Co. of Cali¬

fornia, 210 West Seventh Street.

per

receive

to

that

policy in
quality. In
words, all I am saying is
strictly in line with the forthright

are

of

the

admission

of

that

inter¬

bank

of

dollars

a

"it

is

same

people

ers

Frazar

Wilde—

B.

pretty wicked thing
the
possibility that
make present sacri¬

consider

to

displayed

by

Northeastern Water Co.,

"dollars"

be

common

fund

fine

a

the bank shall

with

me

general partner.

a

now

spondent of E. F. Hutton and Co.
of New York City and deals in

deposited

$35

(Special to The Financial Chronicle)

DENVER,

other

operating
—the seeming

each

on

of gold,

l/35th

still

the basis

share

of

"value"

a

dollar,

with

on

carried

the

substi¬

tute,

Subscription rights will

expire at 3:30

23, 1955.

press"

share to 540,894 addi¬

per

five held.

record

of

to

tional common shares

in

subscribe

stock

rights

the dollars I

since

"quality." And the same
applies
to
insurance
policies:
When I pay an insurance premium
with dollars carrying a "value" of

the

1955

that

same

andgiven

common

lars; but I am entitled to demand

ounce

we

1933

8,
$9.50

in

since

Standard

its

fluctuations

for

"purchasing power" of those dol¬

imburse

Simultaneously, American Water
Works Co., Inc. is offering holders
Feb.

The

citizens'

crued dividends.

of

Other

hold the bank

course,

as

will

to 1947.

#

Inv. Service Co. Formed

Wareing and Albert E. Magill, Jr.

ever

was

and

recent

the

of

firm

' ft

^

Magill, Wareing and Johnston.

our

The

The stock

in

cannot,

responsible

devoted

which

Water

W.

and Financial

Chronicle:

Having

Offering of 225,000 shares of $25
stock,

The

Gold Standard. Decries the theory that the national budget
cannot be balanced in terms of "honest" dollars.

American Water Works

cumulative

E. Johnston

sales
promotion
Houston Natural Gas

was

Corporation from 1939

banking firm of Magill,
Wareing and Co., Union National
Bank Building, has added Douglas

by Frazar B. Wilde, President of the Connecticut General
Life Insurance Co., Hartford, Conn., urging restoration of

21

-

ment

"Chronicle" applauds statement

He

manager of

HOUSTON, Tex. —The invest¬

made

services.

vaiue

to

1955.

Johnston: New Name

Why Our Present Currency
Is a Wicked Type of Money

confident

responsibility. It is this sense
of responsibility that will make a
reality out of these projections of

par

Magill, Wareing

,'t

his

still

(717)

the

that every competent trust officer
and employee has a deep sense of

a

Financial Chronicle

LETTER TO THE EDITOR;

growth of trust services the best is

yet to

and

.

confident

am

The

...

services occupy in
1
' ■
* I

the economy.
.

5402

will

1,625,000 common shares,
agreed that its rights to sub¬
scribe to 325,000 additional shares

fices

for

future

protection,

executives to¬

then

get

dollars

of

ward

value."

will be exercised.

currency

holder of

and

has

underwrit-

An

insurance

return

to

has

a

been

ing group headed jointly by W. C.
Langley & Co. and The First Bos¬

be borne in

ton

out with

Corp. will

subscribed

purchase any

from

preferred and

the

sale

of

the

shares will

common

tasteful, to

be

G. Shull

specie-backed
rather

dis¬

the least. It should

say

mind that

started

we

specie-backed currency
Alexander
Hamilton,
in

under

shares.

common

Proceeds

un¬

Frederick

a

1792; and, with minor exceptions,
that "quality" of American dollar

And

much

and

lower

if

one
were
to ask: Why
worry—why not leave it
to the dealers (bankers and in¬
surance companies) in money "for

all

this

future

delivery"? — my
answer
would be: This isn't just "peanuts"
—it

of

involves hundreds of
dollars.

For

billions

applied to the payment of the
company's bank loans aggregating

was

$10,000,000 which bear interest

ray

deposits as
totaled $201 billion;

recent

surance

company,

lion—together, $540 billion. Why,
that is the equivalent of 528,000

the

rate

of

3%.

at

Any balance

1933.

ad¬

ditional

investments

in

subsidi¬

aries.

But

called

The

deemable

$26.50
1958

preferred stock is

new

per

to

29,

American

$25.25

per

share

1964.

Water

Works

Co.

is

principally engaged in the owner¬
ship, control and management of
water supply and distribution sys¬
tems. The company owns and con¬

trols

63

waterworks

companies

with facilities in 19 states serving
territories with an aggregate pop¬
ulation

in

excess

of

3,100,000.

These 63 companies constitute the

largest

ing

prices ranging from
share through Feb. 28,

down

there

has

down

to

appeared

in

our

which

he

present

a

correctly

money

"wicked" type of money.

re¬

at

after Feb.

right

of sunshine stemming from a
statement
made
by
the
president of a large
insurance

re¬

maining will be available for

maintained

the

are

facts

of

a

Follow¬

that

state¬

meeting in Washington on
Dec.
6
and
7, 1954, under the
Chairmanship of Senator Flanders,
high officials
of
Treasury
and
a

Federal

Reserve,

bankers

and

others

necticut

General

Co., Hartford.

in

were

at¬

Life

Insurance

Chairman Flanders

raised the question

as

the

should

United

to

waterworks systems in the United

gold

of

States

to whether
return

course,

States.

Security Dealers
To Hear Demmler

Eugene G. Statter, of Hoit, Rose
Co., President of the New York
Security Dealers Association an¬

&

that

nounced

Ralph H.

Demmler,

Chairman of the Securities

an

Ex¬

change Commission, will be guest
speaker for the association's 29th
annual

dinner

to

be

held

Friday,

March 11 at the Biltmore Hotel.
John

J.

O'Kane

&

O'Kane, Jr., of John J.
Co., Chairman of the

dinner committee, said that prom¬
inent representatives of govern¬

ment,
be

finance, and industry will
among the guests at this year's

Admit

to

FRANCISCO, Calif.—Dean

Witter
&
Co., 45
Mont ornery
Street, members of the New York
and

San

changes,

Francisco

on

Stock

Ex¬

Feb. 17 will admit to

limited

partnership William M.
Roth, Russell
Giffen,
Gene
B.
Heywood and Hortense C. Fitz-

the

Wilde's

Mr.

Wilde

not

was

words:

own

"I may be

(Special to The Financial Chronicle)

LOUIS, Mo.—Edwin J. Dei-

has

been

added

of Barrett Herrick &

to

the

staff

Co., Inc., 418

Street.




following

and

much gold;

biased because of the

to

interest,

money

in

or

drawer

interest."

or

sider

the

possibility

make

present

future

protection,

dollars

of

much

(Reference:

Printing

merely
want
"honesty" and "security" — they
want

American

the

dollar,
by
politicians; that it shall be main¬
not

kicked

be

U.

that

con¬

get

take

Office

aim

complished

value."

to

firmly fix the

and

Wilde's

statement

sells

livery."

of

to
is

his

"busi¬

future

type of business
Gen¬

regardless of type

involved,

"sells

for future delivery."

confined

to

insurance

Must

force

to

cannot

be

me

at

some

"fu¬

ture" date. Am I enitled to receive
back the same "quality" of
money
as

I entrusted to that bank? There

can

be

but

one

answer:

Yes!

I

age-old

Readers

of

THE

EX¬

the New York Stock
saw

the

same

December

Exchange,

question in the

issue

and

nearly

national

balanced

in

G.

dividend-paying
listed

on

the

terms

stocks

Exchange? The

un¬

range

quarters —a completely new

of

the

results

are

eye

For
readers
as

instancy,
picked the

1300

over

stock

same

their number-one choice. And

four
more

from 100 to 364 calendar

study!

openers!

other
than

full details

issues

each

gained

1000 votes. But the
can

be found in the

Are stockholders

necessary? The
president of Crown Zellerbach

Corporation makes
tant
on

How
A

CHANGE

impor¬

reassuring comments
subject.

important is book value?

value

Magazine, out today.

some

and

this

February issue of THE EX¬

new

study comparing market
book value for 1053

vs.

listed

common

To

improve

of

stocks.

knowledge,

your

stocks, send in the coupon,
a

ceive

next

the

dollar bill and
12

issues

THE EXCHANGE

of

can only
"printing

This

re¬

of

Magazine,

15,

THE EXCHANGE

Conn.,

11

The

Financial

Magazine, Dept. E-I

Wall Street, New York 5, New Yonr

Enclosed is $1

next

(check, cash, money order). Send

investment booklet "10
12

issues

of

THE

BEST"...and

EXCHANGE

me

also the

Magazine.

Chronicle)

DENVER, Colo.—Emmett Pow¬
ers
has
opened
offices at 619
Twenty-second Street to engage

Name-

I.

Address_

securities business. Associated

with him

are Ralph J. Batschelet,
Jurgensen, and N. John
McConahay.

John

J.

City

-

magazine is not sold on'

Chairman,

1955.

to

outstanding

common

Some

budget

Emmett Powers Opens

a

the 186

are

thusiastically and promptly.

your

in

What

Standard League.

Haven

(Special

you'll find articles such

as...

on

Chapel Street,

Feb. 8,

February issue, for in¬

SHULL,

Connecticut State

New

the

stance,

newsstands.

FREDERICK

Gold

ex¬

broken records of these stocks

press" dollars?

2009

and financial

10,000 of them responded en¬

sound

"honest" dollars—that it

am

"deliver" $100 to

in

choices?

your

of gold

"redeemability,"

the

presidents,

company

perts month after month. Also

Which would be

years.

designed

ounce

be balanced in terms of

of this

a bank,
paying that bank $100 for, in
effect, a guarantee by the bank to

of

by

below with

that

busi¬

the

ac¬

only

one

ticles

three

continue to accept the

we

theory

No, it also applies with the

business

on

investors and

new

experts alike. Down-to-earth ar¬

"value" of the

fine

the

of

dividends,

demand.

And

entire banking
nation; for every
banker is "selling money for fu¬
ture
delivery." Let me enlarge
upon that point:
same

a

restore

principle

de¬

not; for every insur¬

company,

it

that

"Connecticut

insurance

ness?

thought to Mr.
for

money

Is that
It

money

is

some

"as

easily be

action

introduced—bills

rently

55314, page 88, dated Dec. 6 and 7,
give

times,

if Congress will

1954.)
Let's

"value"

the gold-standard bills being cur¬

Government

No.

can

favorable

pamphlet

S.

this

for

then

lower

all

at

all

published for

famous names,

around

gold!"

as

And

people

sacrifices

and

—maintained,

reinvest

common

Magazine is

pocket-size monthly magazine

and hold the stocks chosen for

that the standard-

assurance

dollar at $35

ance

stocks,

mattress at "no

People

good

pretty wicked thing to

in

insur¬

an

policy for future protection,
to have gold
hoarded in a

bureau

immediately and

equally in three listed

want

for possession of gold

profitable to have

bank at

ance

gold,

"interest"—and it is much

pays no

than

likely

never

is

ness

invest it

must

You

money.

CHANGE, official magazine of
little

very

tained "unchangeable" in

will

a

Gold

reasons:

want

are

more

mean

the

restore

fact that my business sells money
for future delivery, and to me it
a

THE EXCHANGE

willed that much

No, it doesn't, and for

People

a

And does that

can't

we

Standard?

When I deposit $100 in

Barrett Herrick Adds

Locust

that

shall

I

ST.

by

repositories.

of-value,

Gerald.

bert

avoirdupois, based
on
$35 per troy ounce—it is 25
times as much gold as we have

only forthright, it really hit-thenail-right-on-the-head. Here are

eral"?

Dean Witter

life in¬

and

Suppose you've suddenly been

1954, $339 bil¬

gold,

Mr.

confined

dinner.

SAN

convertibility — meaning,
to the Gold Standard.

Comment

N. Y.

in force in

of

tons

economists,

tendance, among them Mr. Frazar
B. Wilde, President of the Con¬

of privately owned

group

bank

buried at Fort Knox and the other

ment:

At

example, U. S.
of Dec. 31, 1953,

State_

I
J

22

V

Continued

This Week

the

few years ago the specialist houses in bank stocks
being chided, principally by institutional investors, on what
a

felt

latter

the

inability of New York banks to increase
earnings, or to make progress marketwise.
Of course this view
came from
those who completely overlooked the fact that these
securities

was

conservative type of in¬
vestment, one whose status in
investment gradations is much
closer to high grade preferreds than it is to industrial equities,
and that therefore they could not be expected to share in the
market

the

else,

all

gyrations of such

But

let

past

find

above

are,

period.

five-year

that

a

the

results

First

of the leading

group

sumption we reach in the future,
the creation of production in ex¬
cess
of that level for any pro¬
tracted

ishment

operations

banks'

in

going back a bit further we
New York City bank stocks, as

play

measured

production

gain

era

by the "American Banker" index, registered a market
of 84% from their lows in 1947 to the present time, com¬

pared with

in

age

rise of, roughly, 150% in the Dow industrial aver¬

a

the

period—not

same

for

performance

bad

a

this

sup¬

In the five years, Dec. 31, 1949, to the end
market price of the 16 leading New York
bank stocks ranged from 120% down to 10%, with an average
of 59%.
The total dollar appreciation was from $1,829,565,000 to
$2,910,651,000, or a gain of $1,081,086,000.
Several components contributed to this better showing, some
of them of lesser importance, such as a release of deposit re¬
serves of moderate proportion and the abatement in the
Federal
Deposit Insurance Corp. assessment.
The two principal influ¬
posedly staid group.
of 1954 the gain in

ences

return

of

discounts and

loans and

on

securities.

on

could

considered

be

have not

we

two

over

the

hard

time

only

what, historically,

seen

decades)

in

relative

a

their

(39%); and

the

to

to

(24%

1.98%
of

return

The

effect

of $61,306,000

ties

gain).

For

loans

on

individual

the

way

profits

these

of

changes

banks

2.57%

from

to

the

1954

at

were

record

a

for some

high

$35,000,000 for this group of banks, net.
for

$183,360,900,

1954,

of minus 4%

low

The

none

as

an

of these banks

offset

bursements

to

In

our

increased
the

latter

In the five

68%

in

1949;

earnings

the

from

$2,362,855,000

figure

is

the

$131,000,000

earnings

on

of

in 1954.

book

value

dis¬

cash,

as

that

Omitted

This is

that,

at

in

the

the

two

totals

and

date

banking

situations

16 N. Y. C. Bank Stocks

was

5.2%, while

for

could

first

us

from

from

possess.

The
ability of individuals to
purchase is, of course, essential
for the sale of products to them.

However,
which

purchasing power
ability to buy is

the

creates

active

an

econ¬

savings,

accumulated

omy,

the

of

of fractional selling or

use

stallment

and
in¬

of

workers

that

and

more

more

requirement for future
segments

many

will

of

participate

our

and

forces must be integrated.

changes of this co-efficient up or
are most significant factors,

down

nomic

ible

It

this

sults that

creation

the

for

that

however,

said,

outlook

of

in general, ap¬
satisfactory for the period

purchasing

power

than their

more

are

we

ordinary level.
adding to an

billion

$450

of

accum¬

ulated

hoped

that

with

cerned

ments of

all

the

of those
important

nation's fiscal

our

agement will

prices that has

of

ele¬

that the

not forget

fractionalization

con¬

man¬

ticket
from the use
high

come

of installment

buying has become
of the buying
very high percentage

integral

an

pattern of

part

a

Nor should

they forget that historically this
type of credit has had a record
of
extraordinarily
low
losses.
And, finally,

it

clear that

seems

fractional

of

use

selling has

greatly to the build¬
ing of those consumer industries
which deal with large unit prices
like appliances, automobiles,

The

in

business.

the

of

some

Need

There

higher

are

price

Joins Mason Bros. Staff
to

The

Financial

OAKLAND,
is

Production

try

participate

with

In

6, N. Y.

BArclay 7-3500
1-1248-49

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

this

D.

future

of

essential

so

peace,

and

essential

manufacturing

used

excess

the

of

those

create

to

capacities

quantities

of

of the willing¬

market

to

quantities, then recession in

Brothers, Central Bank Building,

industry

Stock

the

San

Francisco

However,

Exchange.

G. K. Schueller Joins

the

Montagne-Sherwood

(Special

to

The

Financial

PALO ALTO,

Schueller

is

Chronicle)

Calif.—George K.

now

connected

La Montagne-Sherwood &

Waverley Street.

with

Co., 418

is

and

sales and

for

assuming

even

correlated

there

measurement

bilities

La

problems

and

still

of

the

adequacies

consumer

the

us

ne¬

need

as

ingredient in the sales

an

market of the future.
sumed

to

must

be

We

nation

a

roll

on

are

as¬

families

of

rubber

for

the

fulfillment of its pattern of indus¬
trial and

ergy

automobile

family product.
the
an

is

basically

That is, it

a

serves

family primarily rather than
individual

member—unless

it

the

that
with

remains
proba¬
the

of

markets.

It is not easy to measure quan¬

titatively the elements of a sales
market.
They are too variable
and
too
indefinite.
But, never¬
theless, they are very real.

as

motive

an

The Future Need of the

Automobile
The future need of automobiles
in

American

the

is

scene

being

dramatic and farreaching
modifications
in
our
working and living patterns.
Among these, two seem to bulk
as the most important.
The

to

is

first

the

number

very

vehicles

automotive

of

the

and

cities' design
which together have combined to
create a traffic problem that in¬
terferes
seriously with pleasant
dispositions and efficient travel.
There has been expressed by im¬
inadequacy

of

our

portant members of the automo¬
tive industry

fear that this in¬

a

traffic

creasingly adverse
tion

will

growth
lation.

It

automobile

of the

that

difficult

is

condi¬

the

suffocate

free

popu¬

to

accept

it is al¬
impossible to visualize the
alternative. Surely travel on foot
conclusion,

because

most

is not

likely to be accepted

alternative
customed

as. an

by Americans unac¬
walking.
And the

to

of transport by helicopter for

age

freight,
does

making
The

ing

and passengers
promise of soon
and trucks obsolete.

express,

not

give

cars

difficulty of traffic and park¬
is creating and is likely to
increasing problem for

an

dense

center

values

and

centers

should

to

users

the

the

of

areas

the

And it is essential that the

attractions
be

of

made

of

urban

available

automobiles

by

development

adequate

of

arterial traffic channels and stra¬

tegically

located

parking

areas.,

However, before the influence of
conditions

traffic

the

upon

industry

is

fully

measured, it is necessary to trace
at least

the outlines of the second

and greatest recent

change in the

one mem¬

This

ber.

second

change

is

that

which relates to the decentraliza¬

Its

design and style and color
and prices must appeal to all the
members
a

of

the

family

—

or

at

majority of them.

Presently
lies

indus¬

collateral

its

and

design of American living.

belongs entirely to just

least

promise

tries.

automotive
The

the

of nuclear en¬
element in the auto¬

probabilities

dense

social living.

in the

dealers will result.

of

for

consume

the economy and stoppages

members

remains

decades

for

shadow
and

cities.

Need

of

cessity of analyzing the factor of

that

estimate of the future,
to emphasize again
again
that
whenever
our

any

it is

ness

Mason

There

freedom?

consumption,
Members New York Stock Exchange
Members American Stock Exchange

in

Factors

The

Consumption

dynamic economy,
our
prosperity,

production

Laird, Bissell & Meeds

to

of

How1 will the automotive indus¬

products in

Chronicle)

Calif. —Frank
now

Correlation

for

of these changes in

the factor of need may well over¬

create

homes, etc.

to be derived from

are

influence

the

subjected

time.

be

can

the

particularly the gasoline and
burned. In fact, the re¬

and

buying.

picture., That is not feas¬

at

only in the number of cars to
in the tires to be used

not

the

of

contributed

that

indicate

A careful esti¬
probabilities of the
ability to buy would require a
detailed study of the entire eco¬
mate

be

the

present population of cars
a figure
of one car per
household. Is this figure likely to
increase
or
decrease?
For
the
The

oil to be

to

of

con¬

family's need.

ican

the need

be

bring

the use of precedent
the basis of the average Amer¬
upon

be sold but

savings a yearly amount
of about $30 billion. But it is to

a

for

request




are

is

assumption

this

However,

ingredients in the de¬
velopment of a market: One, the
ability to purchase and, second,

estimated

well

second

ranks

grow

many

to

book value in 1954.

Stables

Specialists

it

comes

economy

find that the rate

we

earlier
on

the

Govt. Bond Portfolios

Teletype—NY

there

other

Presently

kind

could

for

from

growth,

a

Sources of Gross Income

Telephone:

two

this

increase of only

an

relating

(Special

Bell

people for products

addition to desire,

of American families.

In

from
con¬

to 6.7%

BREAKDOWN OF—

YORK

of

cars.

Sta¬

increasing unemploy¬

business

are

NEW

that

fact,

In

the

it

volatile

120 BROADWAY,

desire

the
like

even

or

condition

situation

and

on

benign

a

rapidly.

stocks.

Circular

design and sales efforts
parts of the stimulation of

are

rising birth rate.
If competitive
enterprise rather
than state opportunities is to of¬
fer adequate employment to men
and women, it must grow and it

responding to the impetus of the steadily

are

scarcity

chanical

around
to

rotate

5.7
million
annually.

of

5.9 million cars

the

fundamentals
of

enjoy.

result

favorably

either

me¬

will

decade

estimate

an

as

and

style

must

dividend

capital

new

us

not

enlarged

exer¬

stock.

new

about 29%

The bank shares

indications

(cash divi¬

funds

of

in

increased
productivity
and the consequent reduced manhours required by a given level

City Bank's shareholders in

important fact is

the

$2,608,582,000.

to

have

us

stantly

five-year period total book value, exclusive of reserves,

this increased

improving

come

or

It is not
in America to have

economic

with

were

only 65%

of

of

factors

pears

all

catastrophic

reduction in the cash rate.

no

is

static

pace

gain, augurs

operating earnings at the respective dates,
of

keep

re¬

ears

of stable business.

period

safe

1949,

dividends

years

increases, and these will

dividends with

cising rights to purchase

but

not

this condition of

liability,

tributed in late 1954 by National

10%;

did

These

for assuming
requirement of a

reason

domestic market for cars over the

based

disappear.

will

be

to

There

production.

by recent past

sales

lethargic

some

organizations

a

need for auto¬
has not been exhausted

that the normal

phe¬

localized

undergo

not

the total

mobiles

seems

very

at

ment

disbursements

was

lagging behind

stock

in

total

be

hips.

stake

of

nomena

become

have

though

general

ob¬

unkind

some

claim

servers

immediately ahead of us.
The
savings of the people are running

to

in pressing need for new capital funds

are

deposit

for further dividend
as

the

The dividend pay-out ratio

44%.

or

operating earnings)

As

or

dividend

the

must

between the

from

bility

high of 127%.

a

operating earnings.

$35,447,000,

up

to

in

increase

with that in

dends:

Those

Here the increases in individual stocks ranged from

$122,054,900.
a

from

deposits

fatty

which

louses

habits of Amer¬
terms of riding

does

rubber

next

that the cal¬

assumed

It is also

enough for

vary

Total operating earnings

50%

up

were

depressed econ¬

a

a

con¬

growth is great indeed.

totaling around

years,

mean

But it does mean that sell¬

The

a

widely, being debits in some years and credits in others.
in

gain

Securities results

other non-recurring items.

are

we

will

improve in performance

the derivative

in particular.
seem, therefore,

not

and

in the five years; and this gives no effect to securi¬

or

a

automotive

the

as

as

and

device

and value and style.

ing must be recreated as a device;

the

a

economy

would

from

in

results

the

And

the

well

as

moved

earnings is shown

combined
growth

have

industry

affect

omy.

to 2.73%.

on

The capacities,
ability of the units

role.

and

automation.

does

1.60%

and

playing

much
more
likely in the future to live in an
economy of buyers' markets. That

average

4.15%,

is

industry

leading
this

of automation, the

field

abilities,

3.37%

to

banks report, from

individual

the

ranged

that on securities 1.44%

range on

2.43%

from

the

present superiority as

mechanical

In

that
as
a
result both of present cir¬
cumstances and of future prob¬

either all security holdings or governments alone,

on

according

rate

increased

discounts

and

loans

its

to

not

change,

American

tinue

has

car

on

Position

Its

hold

method of production.

tensified

It

Yet despite the generally low rates

way.

gave

results

increased

the

to absorb
of this in¬

consumption

and

sales

industry,

be called high rates for

may

problems

are

well; and its development de¬
mands
an
increased
tempo
of

whole

as

sense

there

and

as

will

rates

money

There are
inherent in auto¬

to make it a leader in the

in this five-year span the average rate of return for these banks
on

mation

of

during the early part of 1953 when high

was

grade bond prices

only

(and then

which

in

capacities.

benefits

great

of

period

this

During

manhours and of our

our

industrial

capital,

the last year.
1

tivity of

a

of banks, the total rose from
$24,754,549,000, or by the sizeable sum of
$5,354,198,000, equal to 28%.
The average rate of net earnings
on invested assets at the earlier date was 0.63%, versus 0.74% in
to

$19,400,350,000

labeled

automotive

of invested assets of this group

case

factories —
"automation." Here is a

Will

Automobile

fairly safe to assume that
automobile
will

is

the average life of the
lengthened somewhat but
dramatically.
Therefore, as¬
that

cate

suming that the
ican families in

the

automatic

of

In

the

In

This is the

methods.

method of increasing the produc¬

and the betterment in

the increase in invested assets

were

rates

to

increasing role in our
and particularly in our

an

economy

a

Hold

destined

is

a

American

It

activities of these
babies a few years hence.
Carefully made estimates indi¬
creative

the

market.

the

well.

be unaware of a

which

Industry

itself in

1940 expresses

rate since

"guesstimate" about
product, it is nec¬
essary to make guesses about the
product as well as estimates of
To make

of "Automation"

Impact

factor

new

pun¬

high birth

mations when the very

market for

a

the offenders—and

upon

Nor should we

the

of

deflationary

perhaps the innocent as
The

the

impose

will

period

ruthless

same

stocks.

common

examine

us

highly

a

of family for¬

mation, there is assured a rising
tide in the number of family for¬

The Automotive

Bank Stocks

—-

having babies of

now

are

their own.

Economic Roads and

By ARTHUR B. WALLACE-

Only

babies

jrom page 3

Beyond the ebb

Bank and Insurance Stocks

were

1955

Thursday*-February 10,

The Commercial and Financial Chronicle...

(718)

own

a

our

automobiles, or
car per family.
Ahead of

of

47

million

an average

of

one

babies

during

"suburbia"

the

30's,

which

family.

has

been

phenomenon.

The, term
applied to

of
is
migration of
people from the cities to dwelling

labels,

the

concerned

areas

there lies the

prob¬
ability of a temporary decline in
family formation as a result of
the relatively lower birth rate of
us

dwelling pattern of the

American

this

47 million fami¬

total

tion of the

Regardless

phenomenon

with

miles

itself

the

from

the

centers

of

town.

The

those

causes

of

related to

"suburbia,"
other

social

like
rev¬

olutions, are probably complex.
Unquestionably, however, the in-

Volume 181'* Number 5402...The Commercial and Financial Chronicle

(719)' 23
0-

creasing" burden of traffic condi¬
tions

in

the

cities

is

factor.

one

population of the nation? If
ond

becomes

car

for the bulk of American

sociological development is
five-day work week and the

what

effects

flow

from

the
con¬

sequent two-day weekend.
The five-day week was
in a depression and

it

will

be

that

if

fact?

Or

will

result, families can live to¬
gether as a unit
including the

father—from Friday evening until

the

movement.

eral

As

"share-the-work"

Today, it is the

pattern

of

work

gen¬

schedules.

a

—

Monday morning.
This hugely increased
period of
so-called

"leisure"

is

revolution¬

izing American living habits and
patterns. And the process is still
very young.
Families are willing
and

anxious

to

live

the

nearer

country or even out in the coun¬
try. New centers are developing.
New

housing

built.

As collateral

if possible the

population

segments

of

our

collateral to the auto¬
industry itself. What would
multiple car ownership by mil¬
economy,

lions

of families

milage

erage

therefore
will

of

the

to

mean

each

av¬

and

car

its average life?
What
effect of increased car

the

population be

and

will

commerce

are

to

proceeding to

are

de-centralize, not for the
of

meeting, .the

defense but to
markets

by

purpose

requirements

tap the

offering

of

labor

new

shorter

pe¬

riods of transit to and from work
for

the

newly

established

resi¬

upon gasolene and
consumption
and
therefore
upon the petroleum industry? Will

oil

the consumption trend remain

changed;

Moreover,

decentralized

this

form

living offers

from the problem

cape

traffic

of

an

es¬

of urban

conditions.

than

roads

are

derivative

a

of

this development of suburbia. But
as is true in
so
many conditions
action
is

and

in

reaction,

part the

suburbia

result of the

rapidly changing road

map

Nor

The

"turnpike"

is a fairly re¬
development for us. It
is already a giant in its present
impact. And its future dimentions
promise
to
be
truly
colossal.
Turnpike travel is changing the
measurement
of

areas

population from distance

time.

to

of the radius of the

Ten minutes could

mean

of a mile, or less, to
crawling on a crowded city
street; it would mean ten miles of
safe

travel

pike.

As

along a modern turn¬
the turnpikes develop,

suburbia could well
and
our

further

from

move

the

further

of

centers

cities.

The

changes in family life will
be great. But so, too, can be the
changes that will come to the
if

its

are

automotive

manufacturers

skillful

industry—
and

enough

to

dealers

recognize

the influence and wise enough to
make proper use of them.

Obviously with the growth of
and

more

more

a

decentralized pat¬

tern of work and

influences

of

velop
be?

many

are

new

Where

likely to de¬
problems and

will

the

markets

What will those markets

quire?

How

will they

How

nanced?
form

of

the

will

be

the

second

re¬

fi¬

changed

hand

market

be handled?

What

kind

of

selling

will

be

and wait?

to

family
in

areas

to

sit

Or must they seek and

their

make

approaches

units

in

which

the

directly
suburban

and

more

more

It

indeed

is

nomic
It

us.

period
is

full

dramatic

a

that

lies

eco¬

ahead

of

must

travel

from

home

along

members

longer

radii

to

work, home to
school, home to church, home to
shop, and home to other homes.
Railroads
tended

are

in

not

likely to be

order

to

service

ex¬

the

supply requirements of these in¬
creasingly
remote
centers;
the
truck and trailer must fill the
demand.

Buses will carry part of

the passenger load when the con¬
centration of population is suffi¬

cient;

and

units.

But the

buses

are

automotive

overwhelming

por¬

tion of that load must and will be
carried
by passenger cars.
The
use

of

a

car

to travel to work and

by the family to move from home
to
school, home to shops, and
home to homes, indicates
clearly
the increasing need for
multiple
car
ownership by millions of fam¬
ilies as the decentralization of our
population grows.
The

conclusions

ments that

these

rich

American

can

and

develop¬

be distilled out of

ingredients
revolution

in
of

this

living

patterns

are many and far-reach¬
What effect will be imposed

ing.
upon

ily

the number of

and

therefore

cars

the

per

fam¬

total




car

vision

the

of

promise; and by

organizations that

ple almost

gospel.

as

analysis there still
argument

In the
be

can

no

"If

now

vital to the welfare of this

so

whole and to

a

industry
by

but

well.

as
no

Ahead

means

because

of

the automotive
are

mar¬

fully saturated;

our

present capa¬

last

valid

order

profitable
else

his

on

own

to

achieve

the

from

comes

satisfaction

self

Doherty put it this
"I

believe

that

reliance.

Mr.

markets

of

but

in

40s

that

the

war

the

have

years

buyers'

obtained

of the

markets

since

1953.

Moreover, those markets, as vital
as
they appear, are undergoing
great changes and will undergo
even

greater

changes

in

the fu¬

work

the
the

the

needs

markets

risk

of

liquidation
cessions

schedules

or

demands
so

serious
—

and

of

only with
inventory

economic

re¬

depressions.

Distribution

ognize

and

will do

which

that

the

that

fails

to

rec¬

changes in
the markets for its products and

we

do

can

to

idleness, then I

put

premium

a

believe

American

should exert himself in every way
to teach thrift to our people and

hoping it will develop into

am

national

a

The

movement.

knowledgment

on

part

our

ac¬

that

employee is entitled to a pen¬
sion is, to my mind, a dangerous
thing. In doing this we are doing
what

country is trying to do.
telling the workingman the real
truth we are giving him sop, for
the sake of favorable

the

him

worst

hands

demagogue

I

have often been inclined to create

"When

the

is

otherwise

good, that he
that

or

he

lot

a

but wanted
to

reason

they

cause

return.

what

yield

The

to

in

the

to

do

of

as

men

of

care

and their families."

"Without

to

many

to

would

men

provide

lay

no

pension

a

up

money

themselves

with

a

speculates

market.

make
of

goes

The

up

your

securities

thing
mind

you

are

because
them

then

you

get

can

promise of
on,

you

the

pension if they hold

a

have

apt to

are

employ

who

are

no

longer

efficient and who otherwise

very

would

have
And

The

left

your

employ."

reliance,
of

initiative,

and a
responsibility

individual

the part of the

who built

men

nation

during its maturing
(between the turn of the
century
and
today)
were
the
years

qualities which

is

a

refreshing

observation in these days of short¬

hours,

er

creased

leisure,

more

nervous

and

were

tension.

I heard a young
complaining because he had

with

He

office

was
a

in

work

walking along the street
friend and as I passed I

I

the

did

all

I

not

am

going

hear

conversation

the

but

to

work.'

rest

man

had

what

was

consulted

appear

required.

a

to

need for

this

writer

more

clear

thinking in al¬
phase of our nation's
life today. Although Mr. Doherty
wrote and said these
things over
40 years ago they have lost none
of their clarity or their
validity.
common sense

every

(Special

to The

Financial

Weston

Weston

&

the

by

Can¬

any

been

ing

sold

in

the

United

States where Sun Life has
its

of

in

to coast.

36%

force,

and

cities from

major

business

new

in

business

in

Included

figure

million of group

resenting
million

an

Life

Sun
now

insurance,
increase of

the

over

1953

the

$239

was

rep¬

$68

figure.

insurance

in

exceeds

Other important

$6 billion.
figures of the

Report include $41,365,000 paid
to beneficiaries of deceased pol¬
icyholders and $92,985,000 paid
to

living policyholders and

an¬

nuitants. This $134 million paid
in 1954 brings the total paid by
the Company

since its organi¬

zation in 1865 to $2,866 million.
MORTGAGE

LOANS

UP

Mr. Bourke declared that the
contribution
to

by life insurance
housing in the United

new

States and Canada looms larger

Life

year.

During

mortgage

1954,

Sun

loans increased

by more than any other type of
investment, and by the end of
the year the Company had $323,000,000 invested in mortgages,
mostly in individual homes. •
The Sun Life of

Canada, with

93% of its total business in force
United

the

States, Canada
Britain, holds 46% of

and Great

States.

HILLS, Calif.—Ben
Arthur G. Bursch and

Edward M. Pragerman
added to the staff of

year

its invested assets in the United
Chronicle)

BEVERLY

Barrick,

new

adian company, much of it hav¬

in

With Daniel D.

have been
Daniel

D.

Co., 140 South Beverly

Drive.

Mr.

Bourke, in his Report,
optimism for Can¬
"A
ago
I told you that 1

expressed

ada's continued prosperity.
year

looked

forward

with

1954

to

every

3 With
(Special

to

Dempsey-Tegeler
The

Financial

Chronicle)

LOS ANGELES, Calif.—Edward

T.

Cronin, Clinton H. Perkins and
Daniel F. Rice, Jr. are now con¬
nected with Dempsey-Tegeler &
Co., 210 West Seventh Street. Mr.
Cronin was previously with Paine,
Webber, Jackson & Curtis; Mr.
Perkins with Dempsey-Tegeler &
Co.

confidence," he declared.

"That

of

said helped to
ers Mutual Depositor
Corp., First prove my theory that the increas¬
National Bank Building.
ing trend toward shorter hours is
one of the reasons why the young
man today has an exceptional op¬
Rogers Adds to Staff
portunity to achieve success. When
(Special to The Financial Chronicle)
most people are willing to work
DENVER, Colo.—John D. Deets only eight hours a day the oppor¬
has become affiliated with Rogers
tunity for the young man who has
and
Company, Kittredge Build¬ no aversion to work must be ap¬
ing.
parent. He has less competition
young

ported forthe

every

would

that there is

the evening.

heard him say: T am supposed to
work only eight hours a day and
that's

leadership

were

This

year.

business figure is the largest re¬

valued above

in¬

"Not long ago
man

It

most

About "Work"

following

when

cut,

previous

the

Total

Self

$700 million,

increase of $120 million over

an

force

sense

in

men

New life insurance sold in 1954

amounted to nearly

into

of them with patience."

on

President, in his Annual Review
of the Company's business for
1954. Approximately $26 million
will be paid out in dividends in
the coming year, an increase of
more than $2 million over 1954.

to

put

year,

Company of Canada, are
Bourke,

ance

eventually you
they are worth so much, and
are likely to get so much out

money

then

which,

announced by George W.

you

But

scales

holders of the Sun Life Assur¬

cheaper when

them.

dividend

will considerably reduce the cost
of life insurance for the policy¬

coast

those securities—

on

New

for the sixth consecutive

the

only respected but

Without

policyholders in 1955

not

strenuous

work.

$26 million in dividends

where

panaceas, short cuts, and paternal¬
ism. Men who had what was then
termed "common sense" were not

or

COST

INSURANCE

OF

you are

something like that
for their old age when they be¬
come
incapacitated
for
active,

farm

REDUCES

branches

going to hope it is going

are

this

promise of

a

you

you

themselves

when he

stock

is

class

lower

they

workmen
who were

pauper

thrifty

take

we

has

man

going to buy, and then
going to care a darn

employ¬
did not

seek

satisfactory

a

average

he does

what

feel

non-performance,

elsewhere;

want

able

excellent

told

in his

value,
trying to keep be¬

is

more

be

lock up

can

safe and wait for additional

have

their

carry

a man to
buy who has other
business rather than stock specu¬
lation is the kind he knows are

of

ment

to

for

more

it, with the understanding that
if they do not do so, and if there
some

trying

on

of

not

other

any

may win but he will
at least 20% sucker because

assay

he

into

goes

or

he

market

for

ordinary man goes
market, the cotton

into the stock

savings fund and
give
my
employees
a
certain
length of time to avail themselves

of

sort

some

promise.

DENVER,
Colo. — Charles
J.
Heasler, Jr. is now with Found¬

opinion, just

lot of sop to get his vote.

a

SUN OF CANADA

to

in the business whatever dabbling in the
Instead1 other fellow's game and that is

demagogue

every

Frank Brok¬

Company.

And About Investment

help the

pauperism.

on

good

every

of Lewis

name

erage

that at heart
plain loafer."

the business of price
anticipa¬
tion against experts in this field
of activity. The kind of securities

I

firm

say

that tends to rob him of thrift and
to

1561

at

good; but if he de¬

"I think
many
of
the teachings
to
the
workingman are of a character

to do

(Special to The Financial Chronicle)

and

market,

Yes, the problems ahead are
likely to be great. So, too, is the

With Founders Mutual'

well

sires shorter hours for the
purpose
of
having more time for mere

market

its

sults.

anything

or

sions he had this to say.

distribution

that fails to improve
techniques of research, sales
analysis and sales methods will
do so only with the
certainty of
inventory accumulation, liquida¬
tion, recession and profitless re¬

in

greatest

him

your

fundamental

day

workingman is to try to
to handle his money."
Touching on the matter of pen¬

fruit

Production

have two

each

reading

he is just a

way.

that

Chronicle)

Financial

time for out¬

more

that makes for the improve¬
of himself and his family

all

man

The

ANGELES, Calif.—Lewis
M. Frank is engaging in a securi¬

North Western Avenue under the

recreation, for education and
bringing
up
his
children,
for

must stand

a

among

two feet in this world if he wishes

would

are

less

(Special to

LOS

•>, ties business from offices
to

yearns

hours

to have

Lewis Frank Brokerage

em¬

door

willing to

fluences
of
automation,
likely to live not in the

sellers'

man

working

that

was

we

the

on

ment

cities and the future probabilities
these capacities under the in¬

of

value

he concluded:
a

those who are
face the facts of life,

means

as

as

y,:1

And

great

nation, this straight forward phi¬
losophy was accepted by our peo¬

as

free of problems. These
conclusions apply to the economy
no

abuse

its

and

for

of

families will live? *

greater and greater distances.

and

are

ability

foundation

an

ture.

family

of

men

the

industrial

for

organizations

would
peanuts if the boss

same

associated.

also

was

world's

time."

required? And what kind of or¬
ganization must be organized and
developed?
Will it be sufficient
dealers'

cheap

as

placed the

the

wages

when
laid

I

living, travel of
individuals and family will be¬
come increasingly more
important
and
continuously
will
cover
The

be

Marshal]

Mr. Wulff

in

are

vice-president
of
the
Company, with which

formerly

Doherty made this statement. Dur¬
ing the years that marked the era

the effects of "suburbia"

are

Mr.

ago

before

ever

Port

Officers

Ralph T. Phillips, President; Eu¬
gene
C. Wiflff, Vice-President;
and J. A. Kaczanowski, Secretary
and Treasurer.
Mr. Phillips was

ployee's working time as the em¬
ployee places on his own leisure

teach

kets

American

probable

upon

important

more

decades

than

history. Salaries and

modern

one-fourth

one

impact

an

re¬

matter

a

four

tribution and for the dealers par¬

of the

road

For

questions, I

Over

limited to design and oil consump¬
tion. For those interested in dis¬

country.
cent

un¬

up; or
in the

the next quarter century.

gy over

factors.

New

itself

the

move

the developments of nuclear ener¬

ticularly, there

New Roads and Auto Production

of

lies
industry

oil

the

these

to

there

peat,

it

down?

move

answers

dents of the newly built dwelling
areas.

it

will

or

human troubles

our

down to

of incom¬
petency and nothing else."

motive

being
them, new
roads, new sewers, new churches,
schools, and shopping centers must
be built.
And, finally, industry
areas

"Almost all
come

North

5856

at

Road.

Washington

Concluding excerpts from writings and speeches of
Henry L. Doherty in the years 1912 and 1913. Collected
by Mr. C. J. Stubner, Resident Partner of Stubner &
Co., Union Trust Bldg., Pittsburgh 19, Pa., Members of
Pittsburgh Stock Exchange.

effect of increased

on

Financial Chronicle)

The

offices

with

Then it is necessary to measure

of

to

MILWAUKEE, Wis. — Phillips
Securities, Inc., has been formed

By JOHN DUTTON

to

homes, indicates clearly
day size, style, colors, design, and
price? Or will this second car be
primarily a utility unit—small in
size, stripped in design, and very
low in price?

in part,

was,

result

a

(Special

it

car; and if so, will
duplicate of present

a

-

Formed in Milwaukee

Securities Salesman's Corner

so,

will

assume

new

be

car

home

■+1"

Phillips Securities, Inc.

families,

car—and
we

can

that

be another

born

used

a

a sec¬

true necessity

a

Another, and in my own opinion
more
important, catalyst in this

confidence proved

justified

and

is

in

to be

no

way

lessened for 1955."
A copy

of Sun Life's complete

1954 Annual

holders,

Report to Policy¬

including

the

Presi¬

dent's review of the year,

is be¬

ing sent to ea£h policyholder, or
may

the

be
100

obtained from
branch

Company
America.

offices

throughout

any

of

of
the

North

The Commercial and Financial Chronicle...

■

*

■

'

•

■'

V

.

machinery

complex

re¬

from

proceeds

the sale of
will

quired to handle General Motors

the additional common stock

Corporation's record offering of
4,380,683 shares of additional com¬

by General Motors for
continued expansion and modern¬

stock

mon

holders

its

to

share¬

common

set in

was

motion yester¬

day (Feb. 9) with the initial mail¬

subscription
the 460,000 holders of

transferable

of

ing

warrants to

its

While

stock.

common

ma¬

a

used

be

ization and

replacement of plants
and
for
working

facilities

and

the

During

capital.

six

years

ended Dec. 31,1954 General Motors

spent more than $2,100,000,000 for
real estate,

jority of the shareholders live in

This

the United States, General Motors

plants and equipment.
approximately $1,260,-

000,000 in

has

substantial number of share¬

a

holders living

of the largest corporate

one

,

underwriting groups

assem¬

ever

numbering
330
members
will
purchase any unsub¬

bled,
who

scribed shares.
The

for

price

subscription

the

stock has been set at $75 per

new

on

share

for

record

Feb. 8,

6 p.m.

new

of

The sub¬

1955.

will
expire
at
March 7, 1955.

offer

scription

one

shares held

20

each

on

of

basis

the

share

(EST) on

The financing

involves approxi¬
mately $328,500,000
and repre¬
sents the largest public offering
of

industrial

an

in

stock

common

also stands as
the
largest underwritten corporate se¬
history.

It

just cited.

made.

where

point

fatal

that

reached

consolidated

and

at

income

net

$806,000,000, equivalent after pre¬
ferred
dividends
to
$9.08
per
share on the common stock out¬

Dividends amounting* to

standing.

$5

share

per

paid

were

anti-trust*

persecution
and

just

Pont

which

laws

case

more

of

than

specific.

a

was

matter

a

the just the past few weeks

on

read

terly dividend of $1 per share has
been declared payable on March

that

five

10, 1955 to shareholders of record
14.
The
additional shares

Within

have
the result of
costly litiga¬

in your papers

Feb.

in

was

of
honorable
prosecution.* The Du

much

reality

stock in 1954 and a quar¬

common

you

of
symptons are that
there will be little more of that

tion.

years

the

And

sort

of

now

being offered will not receive

have

dividend.

onizes

6

page

Conquer

for

him

recalling

building permits around here ap¬

Midland

parently takes a very business¬
like attitude, because they gave
me these figures lumped together.
Midland
people seem to have

Midland

and

over,

with

over

looking

was

view

a

his

to

be¬

coming City Manager. He thought
the

outlook

but

he didn't have

good.

any

he said,

And

of course,
idea how

good,

was

here in

happen

think

don't

I'd

know,
going

"You

if I'd known then what
to

was

three

have

years

I

the

taken

job."
that

add

he

that

and

is

he

missed it for any¬

wouldn't have

thing.

to

he did

mighty glad

But, "At that point," he
"I
think it
would
have

said,

scared me."

You

of

20th century society as

our

have

know

that

Midland

been

standing still,
but
probably haven't sat
down to really draw any sort of
picture or summary of this past
five years of growth.
I don't by
most of you

have all of it, but I
examples of the
sort of thing Ray Fry was think¬
ing about.
any

means

have

few

a

five

In

years

half

than

more

worth

of

than

pleted

million

a

and

million

Since 1950

built

have

we

sewers

$1V2

streets.

ect

dollars

put

more

into

paved

have

we

com¬

$iy2 million school proj¬

a

and

voted

bonds

for

another

$4,700,000.
Our
the

population

rate

of

about

has

people

without considering
or

added

the

annexed

14y2

square

at

grown

400

tion

per

annexa¬

which

area,

doubled

We have

miles

to

our

our

seen

The figures aren't

summer

a

substantial start

a

center.

should

tion of the
within

new

see

the

M-20

on

a

This

comple¬

bridge, and

few days or new

construction.

a

That

Dow

any

way,

society.

but

dozen

consider

commercial,

it

doesn't

is

which

but

You

works

of

whoever




anti-busi¬

not

is

Adminis¬

an

anti-labor

it

or

anti-agriculture

or

anti-anything

else.

all

of

is

It

pro

them

and

strangely
enough
credits these
groups with enough intelligence

—

bought
car

city

8,358

not

sales, by the way. And the
has had to add a bunch of

parking lots to take care of
them.
So, I might add, has Dow.
while

And

have

they

been

spending all their money for cars
somehow they have built
more
than
1,100 new homes — $12 y2
worth

million

another

have

and

—

million

$2

for

spent

altera¬

tions, garages and what-not.

that, again,
annexed

And

does not include the
prior to its annexa¬

area

tion.

dignity to work out whatever
problems they may have in good
faith and without a governmental
chaperone forever

trying

to

run

have taken
a long step away from maximum
government
intervention and
of such

minimum
the

time

same

of

end

the direction of

toward

breath

one

him,

turns
calls

and

ment."

that

no

that

fifth

a

have

it

thinks.
have

we

During
the

seen

policy of in¬
as
stimulating

was

but certainly

highball

We

discreet.

more

leveling off

have

even

—

seen

a

—

for

that one began
seriously
how long

years

wonder

would

worker
of

in

be

supporting

to
it

one

before

be

would

see

in

is

of

scares

the

next

"orderly develop¬
right, of course, for

encountered

really

no

acute

problems.
rate

get us into "boom" condi¬
leading to confusion and

tions

of

A

much

growth

more

than

this

serious problems in keeping
the need for school fa¬

very

with

cilities,

utilities,

services

and

so

civilian

the

position

ten

government

we

have been
because

orderly it has
have

we

been

peacefully asleep. We have been
inspiringly wide awake.
Now,

well

I

years ago

I

was

recall

that

five

deeply concerned

even

we

duction

but

we

reduction

a

in

to

during

we

20

shall

in

partly

a

further
Claus

mat¬

partly

overcoming

complex

distressing
years
of

that

proportions
government

I

extremely

am

pleased with the past five
have

seen

most

years.

encouraging

in all directions—in sci¬
in medicine, in industry, in

progress
ence,

doms

and

incentives

rather

than

living standards, in governmental

affairs, even—and I say this some¬
what with my fingers crossed—in
international affairs.
So what now, young

put it recently our econ¬

has been under the influence
Seconal for

of either benzedrine or
25

either been

have

We

years.

racing madly to accommodate an
artificial demand or been suffer¬
ing from the inevitable
ment that occurs when
mand suddenly ceases

readjust¬
that de¬

...

.

Meanwhile

proof."

have

biles

.

.

our f automo¬
faster, more
beautiful—but

become

comfortable,

more

safer.

no

have

We

young
skilled

ing

of

to
become highly
judicious pilots. But

have not done

we

thousands

taught

men
and

well in teach¬

so

to

people

become

equally
judicious drivers. And
increasing thousands of lives

skilled and
so

snuffed

out needlessly every
It is to our shame, out per¬
haps partially from lack of op¬
portunity, that we have not even
begun to find the answer to such
are

year.

know

better.

I

should not

meagerly that

to exist.

short, some.of us have for¬

In

gotten what a normal economy is.
Others of us have never even seen
such

animal.

an

first time

a

of

citizens

today's

leaders—we

business

and

confronted

are

with

normal, a new normal, if you
please. A much finer and brighter
normal than we had back in the
20's, and one which is not so sub¬
ject to the hazards of that other
period.
Because we did learn a
few things from its downfall and
do something about them.
Now the thought that intrigues
me

this:

is

maintain
peace,

IF

we

even

what

portunity
selves

indeed

in

a

supply of edu¬

our

have

had

to

medi¬

veterans, and
into the development of means of
treatment

rehabilitation

and

;

of

disabilities peculiar to the ravages
of war.
I

don't

begrudge

these

dime of this money or

men

a

hour of

an

time, but I do begrudge the fact
of its nece^'tv. How encouraging
if

could be assured that in the

we

will

we

able

be

dollars to

more

to

devote

regular medi¬

our

facilities and our energies to
battling the disabilities man does
not bring upon himself.
cal

We

that

read

beginning
Let

up

pray

then

again
of

1955

the

of

polio.

for

that this be so; but
it may not be. And
What

cancer?

culosis?

the

be

may

end

What

can

of

tuber¬

do

we

about

cerebral palsy and muscular dys¬

trophy?

What

can

disabilities that
flict

about

do

we

hundred other

a

does

man

not

in¬

but that cause
widespread suffering, sorrow and
death?
What, finally, can we do
upon

the

about
be

to

man,

mind

sick

that

especially

an

seems

prevalent

plague of our generation? We are
in the dark ages so far as

really

psychiatry

is

woefully
only

with
and

concerned,
knowledge

little

fraction of the trained

a

fessional

that

people

pro¬

in

need

we

this field.
I

shall

for

our

in the future or that we
make

not

ments

concerned

not

am

economy

in

amazing

industrial

our

refine¬
machin¬

But how

ery—in material things.

deeper problems that beset us.

years

billions,
military
visualize the

spent

would

it

op¬

society—to
some of the

our

really go to work
Running

have the

be to

portunity to refine

if

can

we

year

on

all these things

across

ma¬

that

pos¬

but

use

now

even

part of those billions for the ma¬

chinery of peaceful society?
Much

of

our

scientific

and

in¬

has been aimed at the military as¬

need

between

it

need

we
we

it within

a

our

a

friction?

American, but if

has often been inherited as a sort

"American"

But how much greater

Legally,

on

some

opportunity^if that research might
aimed

be

could

directly

the

at

peaceful end instead of the mili¬
tary end.
There is

a

done

whole world of things

if

we

can

only be al¬

opportunity of devoting
ourselves wholeheartedly to doing
lowed the

them.

wg

And if

shall not have

can

do them we

to^ worry about

thriving economy.

taining

a

is part

sus¬

That

and parcel of it.
have

poured

of

bombing planes

while

our

high¬

American

an

is

an

wrote down

you

under

sort

of

"nationality"
application you

have to
think

well

the

argue

people
French, English, German, Nor¬
wegian and so on, and if we can't
point.

We

still

of

as

label
we

an

want

American
to

know

as

such

what

his

then

"ex¬

traction" is.
We
we

are

pretty much

aware

that

still have too much racial in¬

tolerance; that it is a perplexing

problem not solved in a day.
we are

millions

more

so-called melt¬

a melting pot
hopper in which we stir
up a lot of different entities and
hope that there won't be too much

just

pect of all manner of devices and
materials. Happily a better aspect
of residue.

nations,
of

great deal

own

Is it really

ing pot.

or

dustrial research arid development

It is obvious

understanding.

man

our

Can you

sibilities

We

and

for disabled

care

we have
worth of
knowledge to work

because

25

for

year,

to be

millions

pour

hospital facilities

is the over-riding problem of hu¬

have

chine.

our

up,

nice

all

accumulated

after

danger of drying

endowment

our

We

cal

in

unprecedented op¬
havje to better our¬
things about us.

an

we

and

additional

an

are

and IF we can
shaky sort of

normal,

new

a

and

is

heart disease and

quarter century—for the first
time in the experience of many
in

cators

what

yards of concrete in airstrips for

won?

We

I

govern¬

is

sult of traditional American* free¬

issues

developing tanks and
vehicles
and
other
military conveyances
in per¬
fecting our military aircraft
in
making
them
almost "pilot

future

As

of

cost

all

ever

since.

We

handouts.
All

influence

with.

the

Santa

grew

have been un¬

we

such

some

real re¬

that

of

matter

the

for the

tools

than

months

recent

der

very

a

ter of world conditions and
a

with its pre¬
developing tools

betterment of man. And until very

cannot expect it

see

can

And

ment.

seen

Of that I hope

more,

until

rather

war

goods,

inflation,

Unprecedented

We have

We

been

of

its

for

demand

frenzied

its

went from depres¬

we

wartime economy with

a

a

curtail¬
ment
of Federal employment
that has been growing so steadily

a

in taxes.

would

If

as

is pretty im¬
who says in

around
it

He

Fry,

rapid

riot

flation

sort

me,

sion into

noticeable break

a

a

deliberate

a

painful

were

I submit that for the

five years we

control

scarcely

in between

the show.

employees.

All this, to
pressive.
Ray

With

and

God

construction, by
does include a

churches.
the

in¬

in

amphibious

into

omy

last

at

may

Altogether we have seen nearly
million worth of commercial

millions

tentials.

part of

man? Have
—as, I am sure, were some of you
we,
this time for sure, reached
—about a sort of insidious gallop¬ the
plateau, or the zenith from
ing Socialism that seemed to be which the only direction is down?
rapidly approaching the point of Or have we achieved such a high
no
return.
In fact,
it was my state of perfection in our society
principal
purpose
to
reaffirm that we can sit smugly counting
that the marvelous progress we our
blessings and recounting the
reviewed had been the direct re¬ battles through which they were

library

will open its doors.

clude

Midland people
cars and
925
counting those they
outside.
Those are new
years

bought

on.

community

new

half

five

have
trucks

the development of

municipal golf course,
beginning of Chippewassee

park and

not

last year.

was a

yet.

up

Currie

the

the

in

We have nearly
hospital
facilities.

corporate limits.

$7

probably around $45 mil¬

1949 to

lion

we

year

the

pretty

shop

Neither

ness.

natural phenome¬

a

new

all

hasn't

do

well
individually,
too.
Midland county retail sales
have risen from $26 y2 million in
done

In

hastened

a

We

colleges
struggling for existence.

occupation with

badness

and

synonymous—that recog¬

So in

He

years,

lected.

damaging psychological¬
ly
as
they
were
financially—
hardly a time when an economy
or a society
could realize its po¬

with

—

bigness

much

We

was

he

25

years, as

rec-

that

as

Those

ability.

own

now

16th century

looking

and
was

for

that

contend

I

Administration that

an

tration

he

that.

we

nonsense

not

just

Still New Frontiers to
day,

opportunities of all time.
Now, I would have to qualify
that by saying that it depends
very much upon whether or not
we are able to resolve our inter¬

has been sadly neg¬
have
spent
untold

system

way

quarter of,.a century, we have
During you I mentioned the unhealthy
been
operating almost continu¬ absurd self-destruction.
these years
the increased plant symptom of the proposal for
We
have
ously under some sort of abnor¬
spent
millions
in
and working capital requirements health insurance — socialized
mal circumstance.
You can start teaching our young men the art
have been met by retained earn¬ medicine.
That has been beaten back with the crash and the de¬ of
killing and the most scientific
ings which have amounted to ap¬ almost into the ground.
It may
pression which followed. The bot¬ methods of sabotage and mass de¬
proximately $1,500,000,000 and by rise again, to be sure. But the tom dropped out of our credit struction. And we have
developed
the sale early in 1954 of $300,000,- planners will not find it an easy
system.
All manner of business highly efficient methods of accel¬
000 of debentures.
matter.
underwent forced liquidation. We erated education in these fields.
Consolidated net sales for 1954
I mentioned governmental ac¬
were
Meanwhile our schools are over¬
discouraged; we had lost
are
estimated
at
$9,825,000,000 tion against industry under the faith in others and faith in our
crowded, our teachers paid > so

the home craft

when

opinion that; we are faced to¬

an

The

non

other

the next ten or the
But I would express

or

...

fifty.

day with perhaps the most golden

might have been too late.
last time I
stood before

it

nizes that the large corporation is

from

will

years

yet

decree,

are

Continued,

five

no such
plan
national
problems
and
achieve
the same sort of
some sort of lasting peace.
progress, in greater or lesser de¬
Let me put it this way.
Most
gree, has been going on all over
of us here tonight—and we are
this country of ours during the
typical of all the other business
same past five years.
In fact, we and
professional people in the
have
had fewer plans and
de¬
country — have intimate experi¬
crees.
We have, thank heaven,
ence
with only the past 20 or
begun
to
return
before we 30 years; many with far less than

been

has

There

or

this

curity offering of any description
ever

excess of the amounts
provided for depreciation and ob¬

I

bring
next

prediction of

any

next

solescence in those years.

abroad.

Morgan Stanley & Co. will man¬
age

was

of

record

which are still fresh in our
memory.
For I would indeed be
interested in learning what plans
or decree has produced the things

Financing Underwritten by
330-Member Group Headed by Morgan Stanley & Co.
The

were

better

no

years

Record Equity

The

need

the

not enough
clincher than
these past
five

that

if

And
we

the

what

decree.

or

Additional Shares of Common Stock at $75

plan, legislation attempt to make

master

through

Offers 4,380,683

General Motors Corp.

.

Thursday, February 10, 1955

(720)1

24

less

aware

intolerances
too

that

of

a

we

But

lot of other

should

be

intelligent to brook, and that

serve

to keep us from being quite

Volume

181

Number 5402... The

Commercial

and

Financial Chronicle

(721)
happy

as

and

progressive

cooperative

and

nation of people as

a

might be.

we

We

have

Continued from page 4

'

•

a

It

Our

The United

two party political
basically good and
something we should take
lightly. But when we take our

system.

25

is

Reporter

Governments

on

not

political differences
business
to

life,

admit that

bly

do

could

man

anything

right

faith,

then

possi¬

just

have

we

be¬

become

letter.

a

As

like

result of

a

read

lo

did
of

before. They write all
things—rhost of them
nice, I'm happy to say—

pretty
and

on

give

you

the

human

these

But

awhile

different impres¬

a

Here's

watch

your

program

entertainment
"We

solely

it

that

is

perfectly out¬
Dow

resort to mission¬

night's show.

"We

tell you

can

that if

we

are

quite frankly

ever

subjected to a
of the Catholic

sight-seeing trip

Church again by the Dow Chemi¬

Company, it will be the

time

will

we

program,

tune

ever

in

last
the

on

If

MEDIC.—(Signed)—An

this
I

name

self-styled
the

"American"
to

courage

think

might have

we

proclaims

tees

citizenship

religious

think

and

of

the

nical

have

degree

re¬

He is

an

But not

wish

his

than

living

actu¬

much of

a

Too

were.

have

sure.

rarity

as

of

many

I

us

blind

constructive

only

upset

tions

and

purpose

individual

our

obstruct

that

—

So you

for all

see

emo¬

perfection.

There

worthwhile
we

wonder¬

our

we

not

of

infinite
toward

channel

are

state

are

objectives

can

have

we

pinnacle—no

no

if

if

ucators

that

these

our

ener¬

forced

once

between

if

out

of

a

had

lot

a

of

We

seams.

"ages"

had

the

stone

age and the iron age and
the bronze age. Some folks think

industrially,

we

chemical

a

would

course,

enter¬

are

That,

age.

not distress

But these things concern
mostly
only the material aspect of human

civilization,

and

they

can

serve

fully only when the soul of civil¬
ization

advances

along

with

its

Our soul is not mature and is

from perfection.

has taken

a

And it

pretty bad beating to

a

boot.

Economically,
hone

because

confidence

I
I

do

not

have

need

complete

economically.

So

real hope for the future is that

entering

have
be

the

alert

ironing
our

an age

when

we

my
we

shall

opportunity—and shall
enough to grasp it—of
of

some

the

kinks

out

of

of life.

way

A

we

making
solving
them

do

can

a

that

greatest

we

shall

a

energy

problem

of

a

little

more

civil¬

\




praise for wisely creating

that,

concluding, I feel I must put

candid

out

exist

there

further

in

see

businessmen.

by

other

Canadians
little

a

best

efforts

the border,
will

like

terrified

be,

on

the

marketability

not there

or

is

an

of

the

par¬

additional offering

both

sides

of

everything between us
only all right, but
as

time goes on.

Walston & Co. to Admit

even

is

cer¬

larger

condition

been

ma¬

where the

For the

was

foreseeable future,

it seems as though the mortgage
lacking funds in spite of the long-term
bond refunding of the Treasury. The money
tightening operation
of the monetary authorities, in conjunction with the debt manage¬
ment policy of the Treasury, will in time have its effect
upon the
is not going to be

'

mortgage market.

plish

much

very

been

However, these forces are not going to accom¬
they are more positive than they have

unless

far.

so

The

to

pressure

cut

takes into consideration

down

the

availability of

the funds which

credit,

which

going into both the
stock market and the mortgage market, will have to become more
are

vigorous so that it will not be as easy to dispose of outstanding
government bonds in order to get funds for other investment pur¬

This probably

poses.

have to go

means

lower in price

that the government market would

that the selling of government bonds
by institutional investors would be sharply curtailed. If the losses
so

that would have to be taken

one

through the sale of government bonds

sizable enough, they would not be taken, and

were

in which there would be

way

has been

and

Francisco

San

Stock

this would be

limiting of the money which

a

going into other channels.

changes,

on

March

Juliette

B.

will

Ulfelder

1

to

Switching from 2%s to New 3s
Not

Ex¬

admit
limited

a

few of the smaller out-of-town commercial banks have

been sellers of the bank 2V2S with the

proceeds being put back into

the

have

new

partnership.

3%

bond.

These

switches

being taken in the 2Vz% bonds.

Hemphill, Noyes Opens
New Syracuse Office

of

these

been

kind

of

swops

being

resulted

in

tax

losses

It is believed there will be more

made

after

outstanding awhile and have had

soned

SYRACUSE, N. Y.—Hemphill;
Noyes & Co., members of the New
York Stock Exchange, have an¬
nounced the opening of a new of¬

an

the

1995

of

3s

have

opportunity to be sea¬

bit.

a

B. W. Pizzini Forms

A. G. Bohmer With

fice in

Syracuse, N. Y. under A. C.
Bickelhaup, Jr. and James C. Tormey, Jr., co-managers.
The new
office
Tower
was

,

is

located

Building.

at

613-14

State

Bickelhaup
previously with Cohu & Co.
Mr.

Coombs & Co. Adds
(Special

to

The

Financial

Chronicle)

M.
and

Ralph

Snyder,
Manuel

A.

Ramsey,

Robert

D.

Louis

Swanger

V. Taylor have

been

new

times

going into the portfolios of non-bank investors than
in the recent offering of 3s.

FRANCISCO, Calif.—Wal¬
ston
&
Co.,
265
Montgomery
Street, members of the New York

Moore,
Approach

history

the

upon

SAN

opportunities.

There have

obligation depends

case

market

the

gigantic

It

bonds

Jiim

at

not

better and better

under way

to this unfolding
enlightened one, a

in

an
issue of Treasury securities is
reopening of the offering at some

would enhance

government

the

was

,

Enlightened

one.

a

piece, which

museum

some measure,
this will take funds away from the mortgage
market, but it will not be too important a factor at this time in
limiting the money that is going into the building industry. It is
believed that in order to make a real impression on the
mortgage
market, there will have to be much larger amounts of Treasury

one

He

gentleman's confidence that, with

new

see

places

when

a

Ample Supply of Mortgage Money Seen

try to

we

made not long ago

their

our

abom

even

vast

chance,

takes, but I do share the Canadian

no

relationships

an

a

making them, we'll keep on learn¬
ing and everything will be all
right."
Well, I can't guarantee the mis¬

be¬

doubt that it

any

get

job of industrial expansion
ahead
of
their
country.
"Not at all," he replied; "up here
we believe in
learning from mis¬
takes, and if you fellows south
of the border will just keep on

our

greater inter¬
investment
capital, an

ture

which

specific

You

vast

for

Canada's

an

and

hand

always be

can

As to whether

a

been

would

screen

need

and

lying

as

happily

are

we

weren't

along

about

interest
a

brother

well-meant advice.

we've

and

co¬

both sides of the border the
an

date,

other

ticular issue.

act

LOS ANGELES, Calif.—J. Mal¬
heavy responsibili¬
And they realize that the colm Johnson, Jr., Robert C. Klahorst, Edgar J. Korgman, Ray C.
goes along with the other.

is

the

of

asked by an American whether he

people

close

problems

we

older

an

some

vation

this day of barriers

Such

result

approach

later

special plea for patience in
busy days ahead, when Amer¬

of

exchange of ideas
and techniques.
In these devel¬
opments, Canadians and Ameri¬

An

On

doing it, I hope Canadians will
good-humoredly recall an obser¬

if

broader

On

a

sound like the voice of experience.
Whenever we seem to be over¬

for

gas,

our

to

ties.

long-term

outstanding

In

deal

natural

of

way

that Canada has

They also

going to eventually be much more than
happened to the 3V4S of 1978-83.

a

when

of

worked

words

alike

always be some question as to whether or not
issue of government securities of less than
$2 billion

is

It is the opinion of certain money market specialists that the
3% due Feb. 15, 1995, will continue to find homes among the
non-bank investors in
increasing amounts with the passing of time.

to

and

tain

cans

new

will

de¬

a

see,

no

volume of trade between the two

be

all—making the civilization

of this planet

oil

the United States.

era

ized.

matter

were

of

get into the hands of long-term investors, to make
40-year bond large enough an issue to give it the market¬
ability that a long-term obligation should have. To be sure, there
the

regarded as a
short-pants nation for so long by
the countries of Europe, you can
hardly blame us if now and them,

how

sources

be

even

in

called

teer

rational rather than

In

flow

the

policy,

with

real contribution toward

the

no

pretense that

countries,

of

enough

differences

glooal

be

of

affect

not

or

over

concern

volun¬

pretend

problem,

no

Such

the

Nor is

whether

some

like

tariff

ultimately attan, but there is
questioning that it will be

will

to

as

There had been

of the money market and what the
monetary authorities are trying

proportions. No one dares predict
the exact proportions this
growth
will

issue

to do at the time.

economic expansion of

no

into the market for the 2%%

to

exist

changing times. It is nothing
an

come

subscription period and helped to put

unable

do

not

wishful

few

very

icans may occasionally be
to resist the
temptation

tension

changing requirements of chang¬
ing times.

one

If

in

enormous.

physical tools.

way

In

on

live and flexible,
adequate to the

to say

limiting the availability of credit

watching the weekly statistics

government bond.

small, there

a

better

constant,
conscious effort to keep the rela¬
tionship between our countries

of
in

me

the last.

into

27/ss would

between

likewise

the

markets

tional frontiers.

only
a

unwittingly to
curtain," woven

us.

the money

rightly be claimed by the
businessmen of both
countries, but
governments

3%

new

un¬

peoples,

Conflicts

the

few

our

"velvet

a

3s

new

is what

over

are

we

erect

interaction

the end of

near

Much of the credit for this

their

free of any kind of "curtain" be¬
tween
Canada
and
the
United
States. How unfortunate it would
be

the

New 40-Year Bond Well Received

climate in which economic forces
are free to
work, even across na¬

such

must

putting

whether or not there will be further turns made in
to put more pressure on the
money markets.

Non-bank investors

can

be

narrowly national.
We

still

are

see

screws

serve

Let's

the

must

lines that

been, and no
switches from the

important to realize

of

in

obscure

history.

If

better. But

developed by
jointly or in

either

more

the

no

ordination.

falling apart at its national
have

dynamic
them.

us is to get the maximum
benefit from them, they will have

be

closely to
the

lesson, both economic and poli-*
tical, for the whole world in the

these gifts of nature located
many

to

money market specialists are

our

power,

them

Canada's

a

example. It so happens that the
Providence which so
generously
blessed
our
two countries with
of

savings deposits,

The coordinated program for

ed¬

rivalry,

matters

—water

many

that goes into the stock market and the
mortgage market, which
is being carried out
jointly by the Federal Reserve Board and the
Treasury, has not been too vigorous so far. Accordingly, many

countries, in the cur¬
situation, are writing one of
eloquent chapters in the

more

to

sizable

These two

mean

agree.

be,

activity.

friendship.

can

to

their portfolios.

help keep our own
economy growing. Canada, mean¬
while, welcomes American par¬
ticipation in its greatly increasing

and

find

the

name

us.

take

that

continue

of

sources

tween

We

our

develop

think it's

again to dissipate them in merely
trying to keep the world from

throughout

broaden

derstanding of how and why,
certain issues, we
disagree.
I

with

Far from worrying about
neighbor's expansion, we in

realize

will

con¬

businessmen,

to

groups—can

our

scientists,

our

—

on

history of free enterprise. There's

something

our

politicians,

problems.

accomplishments

which

also

find

peo¬

we

much

so

is

gained

collective

our

advancement.

reached

can,

there

now

the most

should

we

we

pos¬

to

which

on

their competitor's
How different is the at¬

progress will

as

each of

exception, to be

as

he

that

of

means

there

outstanding obligations into the longest Treasury issue. Non-bank
investors, that is the insurance companies, savings banks, pension
funds, and to a not unimportant extent those commercial banks

instinctively
for

as

By this suggestion I don't
only

doubt

its

among

respective

our

order

who

looked

America

tomorrow

points of contact

in

Or

type
Constitutional

spots, prejudices,
unreasoning convictions that serve

are

enough

concern

tinent.
our

rent

resources—the

suggested

ality.

long

titude

once

with subversion.

I

matter of tech¬

more a

legality

And

that

exists,

freedom is

ing

today

The government bond market is
fitting the refunding issues
into the general scheme of
things with most of the attention now
being given to the new 40-year 3% bond. There has

down

progress.

crowd in upon us. It is time now
to develop as
many new and ad¬

disagreement

guaran¬

freedom.

might

we

to

bigotry

that,

at

have

slowing

a
greater part
amity than we

not

in

sign his

proud¬

gies

played

that there's

minded him that the Constitution
of the country of which he

ful

traditional

our

commercial

had

no

in

might suspect—is

between

American."

still

would

preserva¬

relationship

has

we

Chemical

ary work for the Catholic Church
in presenting last

of

this

the

grave

neighbors,

being good
changes in the

make

which

points

the

Company had to

that

ever

of

deepen the base of

for

purposes.

think

rageous

ly

Vast

caused

vital
and
more
difficult.
The simple process of
letting each
other alone as much as
possible—

ples,

"My family and I would like to
bring to your attention that we

had

Ameri¬

themselves, and in their

global roles,
of

job

sible between

prime example:

a

Expansion

prospect of
quick economic
growth in one country would have

ditional

you

in

once

sion.

cal

our

It suggests,
and

events

letters

fine impression of the

a

race.

gives

one

whole

marked

more

we are, of course, hear¬
ing from the public in a way we

sorts

countries
tion

program

never

the

at

neighbors.

you

MEDIC

our

have

must work harder than

cans

before

And in 300 years we have still
resolved our religious differ¬
would

which

also, that Canadians

not

1

straint

relationship thus far.

blind and stupid.

ences.

In Canadian

our

refuse

we

he is of the opposite politi¬

cause

cal

a

into

over

when

or

By JOHN T. CHIPPENDALE, JR.

added

to

Co. of Los

the

staff

of

Coombs

&

Angeles, Inc., 602 West

Sixth Street.

Hew

John Nuveen & Go.
CINCINNATI, Ohio
Bohmer

has

with John

become

Nuveen

&

—

associated

Co., under¬

is

formation of B. W.
25

Broad

writers and distributors of munic¬

associate

ipal
bonds exclusively,
as
the
company's Cincinnati representa¬
tive, succeeding the late Benjamin
W. Van Wagener. The company's

can

office will continue at 1615 Carew

Partnership

Announcement

Allan G.

duct

made

of

the

Pizzini &

Co.,
Street, New York City,

members

of

the Ameri¬

Stock Exchange who will con¬
a

general brokerage business.

Partners

in

the

firm

are

B.

Winthrop Pizzini, W. Gurden Halsey and Walter V. Bradley.

Tower.
Mr.

Bohmer

was

Bohmer-Reinhart

&

a

partner

Co.,

in

Cincin¬

nati which he joined in 1939.
He

completed

a

total

of

With Standard Inv. Co.
(Special

5V2

to

The

Financial

Chronicle)

PASADENA, Calif.—Wesley C.

years' service in the Infantry dur¬
ing World War II and the Korean

Mann

conflict.

fornia, 721 East Union Street.

has become associated with

Standard

Investment

Co.

of Cali¬

The Commercial and Financial Chronicle...
26

of serious

sense

ible and

We See ; It

As

mained

of the fact that our resources are not inexhaust¬
productive power is not without limit, and
that expenditure on armament and defense is an economic
burden, not a pathway to prosperity.
ing

Continued from first page

*

about funds for

may win and keep friends at the same
ground from under the feet of our rivals
love to fish in troubled waters?
/
we

cut

Continued

quieted fears of depression. But
a new cry arose, reminiscent

far

shall

the enterprise of in¬

on

of our

capacity for "massive retaliation"? What proportion of
expenditures should be apportioned to Continental
defense against air attack?
What part to bases at the
our

perimeter of our defense areas? How much to technical
research and development? To the design and perfection

weapons"? These latter issues are almost, but
quite wholly technical in nature, and are for the most
part to be trusted to those with the necessary special train¬
ing. Even in some of these questions, however, important
over-all questions of policy inject themselves upon occa¬
sion. There is always the question of what interpretation
other peoples may place upon our actions, however pure
our own motives may be.
There are often, too, decisions
which must in part at least rest upon humanitarian con¬
siderations or even upon judgment of risks of the destruc¬
tion of all mankind —decisions which can not be, or at all
events ought not to be, delegated wholly to any individual
or
group of technicians.
These are all intricate and difficult questions. It is

economic

Yet it

recourse.

truths which

few general
all too often lost to sight and which

seems

are now

to us that there are a

would prove extraordinarily helpful if carefully borne in
mind by us all. They are homely and simple; they should
be self-evident,
One of

but

are

to carry.
tween

years,

They

can,

in point of fact, be the difference be¬
a close all-out real world war.

Only recently have we been hearing much about the
"biggest 'bang for a buck," and even now what ought to
be the real meaning of this bit of slang is all I too often
lost in inter-departmental or other rivalry.

us

the choice
that type of defense

bearing of such considerations

of armament, or the choice of this or
we

upon

do not feel
to

competent to explore. What does seem to
responsibility of us all, whether technically
not, is to see to it that the utmost in military

be the

oriented

or

behalf and in behalf of their fami¬
communities.

and

lies

It is

basic

important to reassert these

truths, especially at a time
theories of an all-powerful

when

production and military service be extracted from each
and every dollar devoted to the purpose. This is simply
the demand that active competition makes upon industry
day by day—the demand which can not for long be ignored
in private life if survival is to be achieved. It is our im¬
pression that all of our services could be much more cost
conscious to the benefit of all, including the services them¬

stirred

and

echoed

are

Inconvenient but Necessary

country.

oWn

our

During the 1930's, some economic
thinkers developed
the doctrine
that

our

had reached

economy

a

stage of maturity, that the oppor¬
tunities

for

invest¬
limited

private

new

would

ment

be

severely

the Federal

in the future, and that

Government would therefore need

to embark

on

large and increasing

spending programs if mass unem¬

While

ployment is to be avoided.
this

theory

economic

of

stagna¬

tion, and its corollary of expand¬
ing
governmental
intervention,
have been roundly discredited by
the course of events, we still have
the

of

advocates

some

theory.

You may recall that in
nation
total

As

devoted

1944, our
of

40%

over

its

production to the war effort.
war approached a close,
it

the

feared by many

was

mobilization

of

the

that the de¬
forces

armed

curtailment

the

and

of

military

production might be followed by
economic collapse which would
bring failure to many thousands
of businesses and unemployment
to many millions of workers. This
an

anxiety about the ability of our
economy
to
function
smoothly
upon
the return of peace was
natural
turned

As

time.

events

the fears proved

out,

founded.
1945

the

at

In

the

first

expenditures

on

un¬

of

quarter

national

se¬

curity were at an annual rate of
$91 billion. Two years later the

corresponding expenditures were
only $14 billion. This huge drop
in military spending did not cause
any
significant
unemployment.
Some

youngsters,
and
left the labor

women,

elderly

workers

force

voluntarily.

released from defense plants

the nations of the world and not lose

place

as

well

face

as

the years and the decades, we shall have to suffer

precisely these inconveniences. In point of fact, the time is
here when

we

necessity is not
Of course,

really cannot afford to pretend that the

no

one

in

economy and

cam¬

efficiency be

point of crippling the services

research and

the

or

of cutting off

development. It is, however, time that

services, officers and




men

alike,

car¬

came

to

a

our

realiz¬

were quickly
private employment.

nation's

military expend¬

itures
omy

declined, the private econ¬
kept expanding. By the first

quarter of 1947, civilian spending
had

than offset the $77

more

lion

drop in military

In

1949

our

When
in

the

fall

of

its

met

postwar period.

recession

a

bil¬

outlays.

economy

second test of the

got under
the

1948,

way

stagna¬

tionists

conflict,

Korean

came

which

piled heavy military spend¬

ing

top of a high rate of
spending and forced many

on

civilian

industries to operate on an

our

strength of our
economy
was
subjected to its
third major test since the end of
World War II.
During the early
months of 1953, production, em¬
ployment, and the flow of in¬
comes were expanding at a fairly
rapid rate.
Total spending by
consumers kept pace with the in¬
Last

year

spending

on

commodities, as dis¬
tapered off.

services,

from

development,

this

of

view

In

however,

of their incomes;

crease

tinct

the

businessmen
deemed
it
prudent to reduce their inven¬
tories. The effect to bring inven¬
tories into
better balance
with
sales led to a decline of indus¬
many

became
visible after July 1953.
Within a
few months total production fell
trial

production,

level

the

below

which

of

and

consumption,

nation's

the

inventory

an

recession of the sort that had oc¬

curred in 1949-49 was under way.

military

July 1953 and March 1954 indus¬

production fell 10%, with
the largest reductions occurring
in the output of steel mills, ord¬
nance
establishments, shipbuild¬
trial

ing yards, automobile plants, and
other branches of durable goods

Unemployment
in
3% million

production.
1954

March

reached

nearly 6% of the civilian labor
Once

force.

again,

cry

a

of im¬

pending depression arose.
After
all, it was urged anxiously, we
no
longer had any
widespread
shortages, such as saved the eco¬
nomic situation in 1946.
Nor did
have

we

unsatisfied

continuing

automobiles

for

demands

and

during the

war

already

were

ex¬

hausted, that business firms no
longer neded to spend large sums
their

factories

consumers

stocked

with

or

shops,

were

goods

and
well

so

that

some

to

unemployment
to

ernment

borrowed

money.

counsels

These

heeded.-

with

these

finance

and

grams,

for the gov¬
in, undertake

extensive spending pro¬

and

new

was

step

Instead

concentrated

on

not

were

founded.

After

a

the

fears

proved

of
un¬

moderate inven¬

once

its

that it

little doubt

had

only

what he
nual

which

rapid
first

billion between the
quarters of 1954/

$7

third

meantime,

major

an¬

spending,
declining at a

for some time, dropped

and
the

In

The

Federal

been

had

be
if

believed

and

eyes

of

pace

another

wrong

was

with them.

saw

rate

mistaken

i

i a

there 1 could

diagnosis, '-and
one

more.

again

was

increased

expenditure
spending,

consumer

—

other

every

of

category

private domestic investment, for¬
eign

investment,

local

outlays.

the

of

not

that

mean

standing
the

our

economy

On

the

still.

economy

did

1954

of

part

was

contrary,

civilian part of

meant that the

it

Product

National

large

a

State and
the stability

and

Thus,

Gross

during

forging ahead,

was

expanding its operations, and tak¬

ing

the

up

continued

spending.

the

Federal

of

fall of
had

early

the

By

civilian

the

1954

by

caused

slack

reduction

*

economy

gathered sufficient strength
only to compensate for the.

not
con¬

tinuing decline of Federal spends
lift the total produc¬

tion and employment

of. the .econ¬

The low point of the.
recession

Korean
last

August.

all

economic

been

was

P.Qst*-#

reached,

*

Since then, our over-*
activity has again
.

expanding.
Stagnationist*'

Basic Error of the

Doctrine
In

the

which
its

referring,

stagnationist
doctrine
so
consistently misled

the

to

histori¬

these

of

course

cal remarks I have kept

has

The

exponents.

-

basic reason

for their error is that the anxious
mood of the 30's, its

lack of con¬

fidence, its servile dependence on.,

government, its distrust of the*'
expansive power or resilience of

private enterprise — all
these
yardsticks are no longer applic¬
able to

The face of our

time.

our

changed under the
powerful forces of"

-has

of
growth.•
Advances in science and tech¬

pressure

been, pro¬
The1
plant and -equipment of industry
are being
constantly nrodemraedto
escape
the drag of obsoles¬
nology

the

ously.

New

growing,

so

many

not

feared

expected

or

the
fall of 1953, a recovery began in
financial markets. By the begin¬
develop.

As early

as

ning of 1954, there were already
abundant signs of increasing

preparations

for

larger

More

investments.

private

important

of

of

both

inventories

to

manufacturers

sales

the
and

tributors began declining.

dis¬

By the

1954 the
decline of
abated and the na¬
economy
stabilized
at
a

spring
of
production
tion's

level somewhat below

that of the

value

of

The Gross National
the

total

services,

output

of

at an
annual rate of $356 billion in the

goods
first

and

quarter of

1954

was

and

it

re¬

The population of
is growing vigor^1
techniques of con¬

.rapidly.
country

that
did

and

business

pace

the

is

incomes

increasing,

competition

of

finance-

are

ownership , is
range
of middle-

Home

developing.
class

is industrializ¬

The South

cence.-

credit

easing

and have

are,

ceeding at a-marvelous pace.

sumer

lar

again

depression

taxes

This

conditions, on reducing taxes, and
on
building consumer and busi¬
ness
confidence.
The depression

Product, which expresses the dol¬

Once

•

ing

peak of 1953.

economic

rea¬

increased

busy and

got

duced

government

the

time must pass before they would

freely.

re¬

output

both

For

economic

argument ran, the only way
prevent depression and mass

again be inclined to spend

money

of

unit

spending programs, or better still,
both increased spending and re¬

the

ratio

accumulated

ment

economy

mand

had

force

labor

unemployment would stead¬
increase unless the govern¬

ily

housing, which had bolstered the
economy
in 1949.
Therefore, so

still, retail sales resumed their
rise, exports increased above the
preceding year's level, and the

which

labor

while

sons,

omy.

b.y a sharp reduction of
expenditures/ Between

levels,
little.
In

a

the

per

by the ending of the
conflict, which was soon

Korean

present

diminish.

would

ing, but to

was

however,

or

quirements

Production

only

increase

readjustment
of
inven¬
seriously complicated,

This
tories

again proclaimed that a
depression was in the offing. They
argued that the backlogs of de¬

that

would suggest that such a

paign of simple, ordinary
ried to the

As

on

upon us.

The others who

the armed forces

absorbed

strongly suspect that it is the fact that they are
now
at long length being asked to become really cost
conscious for the first time in long decades that is causing
much of the complaint about the influence of "civilians"
upon the Administration.
It requires great care, hard
work, and real ability to produce and at the same time
keep costs to reasonable levels. To some of our military
authorities doubtless such a requirement seems to be a
weariness of the flesh and a vexation of the
spirit. Such
it may be, but if we are to do our utmost to survive
among

expansion.

vigorous
the

re¬

economy

our

year,

its

followed

The War Effort

or

We

armed

in

were

selves.

over

which have
confused the world,

beneficent state,

and

completely neglected

throughout the New Deal and

victory and defeat in

The

and willingness
great efforts in their own

enterprise,

fluence is felt from time to time.

is the simple fact that waste, careless
management, extravagance, and complete neglect of cost
are heavy loads for any defense program or any nation
Deal

as

them, long known and well understood every¬

here in the United States

a

Then

of

Their voice is heard and their in¬

not always accepted as such.

where else in the world but almost

Fair

our

about

sumed

at

rise

meantime,

would

lasted

which

adjustment

tory

best

at

the

Opportunities

it has
during the past, in our iree. insti¬ overtime basis, f'/1.: u'if'*«/M :>i it :■:
tutions and in the qualities of the
The Economy Tested in 1954
American people—their ambition,
skill,

their solution.

of

strength

consists today,

country

to make

the results of tech¬
nical investigations and study and upon careful considera¬
tion of many complex factors is, naturally, about our best

foundation of

The

achievements.
the

of "super

impossible to lay down simple rules for

actions
be, they

and pro¬
grams
may
cannot of
themselves lead to great economic

not

Good, hard commonsense based upon

important

However

dividuals.

remain

would

extended

an

stagnation.

of

phase

into

told,

were

ma¬

in the
moving,

Our economy was

or

depends

depend upon the theory

we

economic

of

flourished

which

1930's.

Economic Trends

governmental
How

doctrine

the

we

And

.

events

of

turn

now

from first page

time that we
who so dearly

"Massive Retaliation"

and third quarters.

turity

improvement of the condition of the poor abroad, or
for the hoped for permanent improvement of their eco¬
nomic status in the world — in the belief that in this way

in

virtually this level

favorable

This

of

international difficulty? What

at

the second

our

the

'

Thursday, February 10, 1955

(722)

the

quicken¬

is

ing, and mass markets are emerg¬
ing to match mass production for
an

of com¬
these develop¬
private sphere, it is
number

increasing

modities.
ments
now

Beyond

in

the

established

aim

Government

to

the

Federal

of

the

pursue

fiscal,
and
general
housekeeping policies that will

monetary,
promote
than

Public

stabler rate of growth
experienced in the past.

a

we

officials,

as

well

as

the

general public, are relearning the
old

that

lesson

can

create

favorable
nomic

an

to

the

government

atmosphere that is

a

high

activity

by

rate of

private
initiative,
by
monopolistic tendencies,
moting

the

flow

of

eco¬

encouraging

curbing
by pro¬

capital

into

risk-taking channels, and by car-

Volume

181

Number 5402...The

Commercial

and

Financial Chronicle

(723)
rying

out

work

as

private

much

as

is

of

its

practicabie

dryers,

own

food freezers, air conditioning units, and so in an ever
expanding list—is one of the great
and unique achievements of our
economy. It is also a symbol of
the- constant
drive
within
our

through

enterprise.

Prescriptions of the 30's Not
Suitable
Neither

for

the

Today

thpnrie<;

households

the

nnr

timp

m-P

tinns

nf

havp

mav

cfiitAH

won

hppn

tn

rnnrti

so

our

it does today. Moralthp thpnrv pmorttoH that hneirvoco
ists and philosophers may decry
mpn
uml
Hvnhmin
w
„thpr
this tendency, but from a strictly
trnnhipsnmp
Tr,
tk0
fi^ct
economic viewpoint it is a progresnlarp
iti-wac caH thil
thf?^
siveforce. Many an alert businesSLt ' ntc urorJ i«™,man who observed early in 1954
mntnrp
Ppnnnmv
how eagerly consumers sought out
viHpri
PvtAndM
nnnniiSaFtrZ the ^test contrivances and prenrnfP
Tn thp cPonnS nhnp
it
mium qualities was able to predict
qaiH
that
th^ir
inirpetm^At out
that we would not soon have an
lavs fluPtnatPH
economic depression. As it turned
fnriav

r>nrin<j

thp

economy as

itren'c

a

™

n™

woe

out> consumer spending was the
p«?tirnatpc nf
r^nnaHniic fntiTr^. Sreat sustaininS force of our econ~
Cnnsnmprs
thn
ntbnr
hand' omy last ?ear• Exceeding by 2%
werp
nirtnVpri
nlaniH
Prnim' what the^ spent durin§ the boom
asprpaSJ*rn' year of 1953> consumers in 1954
nomic
behavior
was
determined
defied the dire forecasts of the
hv
their
current
incomes
and
stagnationists, just as they had
thpv

rpstpri

Pmntinnaiiv

on

tintfpH

a

.

nn

as

whose

a

collective

spend

or

coulcf

save

counted

nrosneritv

with

on

to

therefore

be

mended

is

It

nat

much

so

development

titudes of businessmen and consumers, together with the emergbig
tendency
of
governmental

the

of

the

businessman
of

consumer

the

of

and

policy

1950's.

to

between

Business

Horizon

of todav extends much
further than that of his nredecesnessman

veneration

a

businessman
more

is

He

sales

ant

to

ambitious,

terms

think

in

longer-range

watches

and

Todav's

ago

his

oDerations

current

closelv

but

his principal aim as a broad'rule
is to build for the future so that

his

firm

least

will

strengthen

maintain

position
Hence

five
the

search

that

huge

and

carry

will

to

of

modern

sums

generate

sales

in

the
on

extensive

programs to enlarge or
modernize their plant and equip-

ment, they maintain these capital
expenditure

possible

programs

when

even

far

as

as

and

they

But if businessmen have

or

is

economy

rigidly

tied to their current inthat is surely not true .of

comes;

American

us.

in

their

have

consumers now

possession

over

$200 bil-

lion

in liquid assets—cash, bank
deposits, and government bonds—

market for

a

a

large and widening middle class,
A half, if not more, of our family
units

have

ceeding

$4,000

middle
allow

of

we

our

areas

homes

were

in
when

even

levels,

families

income status.

of

ex-

the
we

should for the differ-

price
the

incomes

nowadays;

thirties,

as

in

ence

fifth

annual

less

than

a

enjoyed this

In 1940 about 40%

outside

owned

by

of

farm

their

oc-

cupants; the corresponding figure
today is close to 60%. In the first
decade

of

this

century the value
of the structures and equipment of
business firms exceeded that of
the

dwellings, carriages, and

household

durables

of consumers,

Today the value of the plant and
equipment of our households surpasses the value of business plant
and

equipment by about 30%.
_

..

Consumer Capital Greatly

Expanded
This

huge expansion of consumer
capital — modern homes,
automobiles, radios, television

sets,

washing

machines,

electric




interest

in

the

heavily

was coming from investment and

months

of

the

rise

in

most

of

rail

the

stock

buying

institutional sources and strength
Congress•>.-was largely confined to the
and suggestions to the [States and'* higher"grade issues.1': Rumors of
municipalities are largely adopted, proxy fights , and struggles for
as now
appears likely, we shall control have been coming thick
have taken another major step and fast.
With the memory of
toward
assuring sustained eco- the market effect on individual
nomic progress in our country and securities of last year's battles
neighborhoods. If the

President's

the

still fresh, these

have fur-

rumors

ther stlmulated speculative

.

The President's Economic
economic

inter-

est. Also, with the recent spate of
optimistic statements from
in-

Program
President's

pro-

dusIry leaders fhere has been

the

growing hope that railroad earnln&s this year will top last years
ahead of re
/F
y a slSmficant margin
us
As far as the automobile in- and that Percentagewise the lmdustry is concerned, the proposal Provemeht will be most substanfor a new national highway sys- tial ln
case °f marginal
tem is probably the item of great- earners.
gram

is

an

expression of faith in

^he vasf opportunities

and

betterment

that

has

consistently

for growth

lie

^

,

freight density, and a
substantial amount of branch line
mileage of questionable earning
average

power, have imposed
tant drag on

from

costly

terminal

and

yard

de

trlaJ productlon durmg the entire
aF?^,- from

CA°

gr-a^ that Promises to give

d
within
indus- Work

10

.

in

July,

1953 to
AuSust? 1954. The gross national

years

of

safe,

a

national

.

heaviest

loads,

uniform

traffic

operated

under

regulations,

find that

^?"ai;a.

hP™7j,tpH

Milwaukee,

Pacific

common.

trading,

more

than

of

reached

10

had

100%

St.

By late

relatively

on

advanced

from

the

1953.

in

Not

low
too

many months ago it was gener50,-/-ally feared that the road would

000. Many details of this program

rate^st^sHUEither ®tm
'S
we

and

per-

of our

over

,

™, b®

Chicago,

last week this stock,

highways, capable of carrying the heavy

^mfn/in^he'third j?.1?"18 tj!e agreat majority
cltles wlth
population

L?
garter of 1954 rose to $361 bd-

us

net-

controlled-access

outstanding

remain to be worked out but

not

be

even

able

to

cover

the

Some of the adverse
influences
be accepted as of a

must

perma-

nent nature

that it is

so

likely that

the operating performance will
not
match that of the

industry over
the visible future.
Nevertheless,
there have been definite signs of
turn for the better and it

a

seems

likely that this improving trend
will be magnified in the anticipated period of expanding traffic.
During the past year the road
has attained full dieselization and

this has not

yet been fully

as

fleeted in operations.
accure

Vllle

from

over

What has been
far

re-

con-

expected

modern

a

l^l6

a

Also,

are

to

pushbot-

Bensen-

as

a

year

ago.

accomplished

js indicated by the fact

so

that

by November the transportation
ratio was running below year

earlier levels.

While the break-

down for December

and

the full

year Is not yet available it is in-

preferred dividend in full, based d'?at?d

for ll?e ?resld1nt? gran.d concept is on the poor earnings record for
alr,eady ? aha!len8e
the imagi- the first seven or eight months

un-

"atlon of businessmen. If history of the year. There was a strong
ls any fulde' a conslderable v0.i- comeback in the closing months
a
iota
and
thU:
Tannarv
^mf .o£ Private^ investment in 0f the year, however, and the
p
'
;n necemher
9?' fac orle/' sh0Ps' dw,el'!ngs' and a." road ended up 1954 with earnthan
in
n^emh^-1953 f°rtf °f sdrv1^ establishments is jngs of slightly more than $2.00
®, th
,
,
'snendT ?
stimulated along the a share on the common. This was
?nd
^Twe^v indee Stw hl8bwfys or m their vicimty. only nominally less than had
f g
ra,rrent
reDorts on deoartP market for new cars and as- been reported for 1953. Thus, it
mpn.
.
--iPS
sociated goods would be lifted to js now generally expected that
ua'

and

situa-

lion.

ton yard constructed

.

,

the

tra-

unfavorable

an

been

,

of

and

ditionally1 the company has suf^
fered

Paul &

One

impor-

an

operations

°fr^vD!!?XTn'^hal^o^the
JF
.Y
p
c^ne tbat had occurred

well

run

-

employment, illness, and blighted
recommendations to

ratio

tinuing benefits

h»

ar»n?nm

were

•

that for the 12 months
this important ratio was little, if
a"y. higher than it had been in
J953- H this trend continues, as
's expected, and it is augmented
by continued growth of the Pa-

cific _Northwest

area,

many

Jyst? are of the opinion

ana-

that St.

Dsui could well develop substantial and consistent earning power
over the intermediate-term,

„

higher levels and

It

commerce

would

increase in a thousand directions.

.

Unless

a

feeling of optimism has

that the excessively colored my sketch of
current
economic
recovery
has recent economic happenings and
momentum. How long this expan- policies,
our
nation s economic

therefore,

appears,

sion will continue

before

another

setback

develops, or how far it
will carry us, it is impossible to
with

state

the

much

outlook

assurance;

But

least for the

seems

months

which they can draw, if neces-

market has become

of

speculative section of the rail list, above that of the
industry as, a
Obviously the general public has whole and the pre-tax profit
been entering the. market with margin has
just as consistently
steadily increasing vigor as con- been among the narrowest
among
dependent, trasted to the first
12
to
14 the major class I carriers.
Low

formers in the speculative category in the past month of so has

favorable, at
immediately
ahead. It is reasonable to expect
sary, to supplement their earnings, that the recent phase of inventory
By and large, they have come to liquidation will shortly be folbe considered as good credit risks lowed
by some rebuilding of inand can buy anything from a suit
ventories, such as is already under
of
clothes
to
an
automobile, a way in several major industries,
European tour, or a home on the The projected decline of Federal
instalment
plan.
Our consumer spending is at a much lower rate
on

„

Peaces-when

changed! Current Recovery Has Momentum

not have been somewhat

may

quickening

.

....

their ways, so too have consumers.
The spending of our parents may

re-

,

and for helping individuals and families to meet the hazards of un-

consumer

sales

drop
judge the
business acumen of their competitors by these yardsticks as much
as by profit-and-loss statements.
temporarily,

that

natural

our

1

ls suPP0ld;ed by an. underlying esj. interest. If this proposal is acsur&e of confidence in our coun- cepted, we can start before long
try s economi® fuj;Ure- By the end on a highway construction pro-

they

embark

extremes,

been under way since last August

campaigns

thev

come,

political

course

fhe keystones of our/ economic
pr°£ress- The recovery that has

re-

on

development,

advertising

on

years

ten

or

at

or

competitive
years
later

managers

'spend

firms

its

middle

a

are

Expanding

The horizon of the tvoical busi-

sor

steer

of

Chicago, Milwaukee, St. Paul & Pacific

•

"F111?,
e
past couple
of able for the common came to
months there has been a notable $4.37 a share. The transportation

for
expanding
home
ownership and improvements, for
increasing
public
facilities
on
which the growth of the private
sources,

material

theory might have had in the
1930's, it is something of a carica-

the

our technology, for promoting the strength of small businesses, for accelerating the

factors, but rather the current at-

ture

keeping
basis,
trade and

sound

on a

basis of

*

validity this

assurance.

for

measures

defied the forecasts of depression • times.
in 1946 and in 1949,

mathematical

Whatever

expansion that the President has
recently presented to the Congress. The President has recom-

'living Federal finances

terlal
improvement
played
large and pervasive a role in

at thp

tht>

improve

prospects is the program

run

promoting long-term economic

standards. Perhaps at no time in for festering foreign
Jhe. Past has the dfslre, for ma- investment, for improving

prescriptions of policy that ruled
during the 30's, whatever their
significant

to

.

short
for

27

than

has

ruled

prospects

broadly

and

opportunities

favorable,

whether

are

we

The recent sharp increase of housing starts the rush
of applications for Federally underwritten mortgages, the increase
year.

of business
surge

of

incorporations, the
construction

up-

contracts,

—

the

economy

of

The

of

consumer

in

m

some

interest

credit

the

on

1950

»

to

Paul

directors
liberal.

earnin??q

avail-

&

_j

further

encouragement from
fact that the government
has

embarking
programs

on

and

These

problems

continuous

So,

are

receiving

attention

too,

is

succeed

in

preventing

fidence

in

the

re-

huge

mounting

spilling

our

we

con-

economic

future

into

over-

over

successfui

centrating

activities

than

of

the

we

the

ex-

are

recent

on

can

years

efforts,

our

of

as a

in

avoid

""b1 uull« UIUU
LOS

W,

ANGELES, Calif.—Donald

Moulton

has

been
elected
of The Bond Club

Vice-President
of

Los

year.

Angeles

for
Mr. Moulton is

con-

production rather

^r* Moulton has

er-

new

era

in

current

officer of

we

which

also served

on. *be Municipal Securities Cornmbtee of the California Group of

tbe Investment Bankers
tion of America,
i_i

i

r»

Associa-

.

..

Emerson Adds
(Special

to

the

financial

CLEVELAND
Moore is

Ohin

Emerlon T Co
uSon Comm^
bers

Qf

chronicle)

William

the

t

t?t

now

fnc^rn^r?tPd•

Midwest

Stnek

Fv-

change

'
|m'nc

C
,

cam

I

ttp

p^f

5

5.
amcTcpo

"T„*

t

the illusion that
a

the
an

R. H. Moulton & Company, invost^ont bankers specializing in
murdciPal and U. S. Government
k°nds for over 40 years. A native
of Los Angeles, California, Mr.
Moulton graduated from Stanford
University in 1938, and has been
active witb R. H. Moulton & Co.
from that date.
During World
^ar
he served in the Supply

people,

activities of speculation. If

living in

RamI filllh

^ Corps of the U. S. Navy, and held
Ibe rank of Lieutenant Command-

confidence and unbridled speculation
We
have
been
reiatiVely

on

Ano-

AC

the

cently demonstrated a capacity to
bejp
check
economic
recession
withoUt

.

"#

I

mean

St.

that

spencjing

.

.

maintained

disputed taxes,

feel

sources

period

from

„

MOIflfON ElfififPff hlf

the long drawn out
tax
dispute is

substantial

some

u

income

which

seasonal unemployment

government.

course

a

re-

maintaining their competitive deficjts. n0 Gne can be
sure how
position. And although the em- wejj our
economy will meet its
ployment situation has sharply next test of
stability. The outcome
improved in recent months, there js
iikeiy t0 depend heavily, howis still a sizable amount of nonon
the d
t
m

Western Europe, it seems likely
the
that exports will continue to increase.

If

be

finally settled, which would

^

vestment preparations suggest a lQcal unemployment may persist
high and increasing volume of even when the nation s economy
investment expenditures in com- practically reaches full employing months. In view of the re- ment.
of

this year.

Federal

js unlikely until the effects of the

communities. Most of them will
and durable goods generally regain prosperity as the current
these varied indicators of in- recovery
cumulates,
but
some

surgence

will

may be might be even more
I1*®"1 *be next few months or 10
.gt paul ^ag
a
spo^y ancj
or 20 years from now. I o^ust Qn
whole a relativelv 'noor
note, however, that the immediate recorc| jn
the postwar years
In
prospects of the different parts three of
these years available inof our economy are not all equally cpme
after auowjng for caDita]
g°ad- Our farming industry is still
d ginking fun(js
has not beG
suffering from the over-expansion
suffident £
^
induced by high and rigid price
dgnd
non-cumulative nresupports.
Appreciable improve£erred and f
a,
,
.
p
p f
ment of farm prices and incomes

the increase in orders for machinery

$1.00 dividend of

years

Jhmk of what business

during the past legislation passed last year have
two years, and it is not unlikely become suniciently felt and the
that continued expansion of state enormous stocks in government
and local expenditure will offset warehouses are reduced. The coal
any further decline that may occur and railroad industries arei sufferin Federal spending during the ihg from long-standing difficulties
coming

ieast the
cent

£

,

•

fJ*arT it' jyi®nrten.» Jr. has jomed
H16
rrancis 1. du Pont &

uberance of some financial activi- the business cycle no
longer has ^°"> 317 Montgomery Street.
probably
remain ties. In
forming a judgment con- any place, there is a good prospect
v
...
A
time, although
cerning the economic outlook, we that we will continue to avoid
Kdng Memtt Adds
the consumer has a way, as all
may justly draw encouragement economic
depression. This is a
(Special to the financial chronicle)
of you have discovered, of doing fr0m
the fact that our economy responsibility which
private citiSPRINGFIELD, Mo. — Vincent
what he likes, no matter what met rather successfully the test zens,
especially businessmen, must deP. Schulte is now with King
economists may say.
of stability in 1946, in 1949, and share with the Federal GovernMerritt & Company,
Inc., WoodBeyond
these
indications
of again in 1954. We may justly draw ment.
ruff Building.

spending

will

favorable for

some

The Commercial and
23

(724)

-f-rnrn

^

no-down payment mortgages gen-

14

nnno

^

speaking put more extra
into their proper-

erally

improvements

AnaJ¥SiS JJ3S 3 Place
the portfolio of

It is of the utmost importance that an effort is put forth
<=o
that the right person moves
mortgagee.

into

right neighborhood, both
financial and social

the

the

from

standpoint.

permanent portfolio
buyers
of mortgages are
happier when the borrower has
some
initial cash stake in the
Although most

most have adjusted

property

bearing age and has either
been employed for a considerable
length of time or has a professional status (nurse, teacher, etc.).
"As far as other obligations are
concerned, installment contracts
or other debts which run under
$30 per month and will be paid
out in six or eight months are
generally ignored. However, longterm obligations which drain a
considerable amount from an individual's salary (i.e. car payments) are normally enough to
-.disqualify him. In some instances,
a wife's salary can be used to offset a payment of this type.

the child

their

down paytype of mortgage in their
portfolios particularly in respect
of Veteran-borrowing, and through

sights to include the no
rnent

experience have come up with
certain conclusions. It is the conmost

It

purchasing a house, the only real to seeing that the decline in sales

control that we have over serious would be short-lived. In fact, in
inflation is competent screening of the annals of business 1954 may
the individuals who are to receive

plying for no-down loans fre- important points which I believe

cnaracier

#

Continued from page 13

•

1

ant. Frequent changes in employ-

1

_

.

HI

.

„

bouse

down

a

payment

on

the

paying for them over a

is

emotionally by stock market developments have a far larger
share °,f,the avallalble purchasing
P°wer than they had in 1929 A
transformation in the distribution
°f the national income which Aribur .fu™s> *he Cbair™an of th.e
Arfvit^ W°pXh

overf to be a person capable of weigh- 21% of the total volume of businorI ing an over-all situation on its ness—an increase of almost threecompensation, this cannot t/e own merits and sound judgment fold.
counted as salary.
Also, pay re- becomes the most important factor
ceived for part-time work is gen- in good underwriting.
Role of Federal Government erally not considered valid income
"As far as justifying the noThe tremendous leverage which
except
under
unusual
circum- down paymerit 30-year loan from the Federal Government exercises
the upper

iime

can

brackets.

be verified

Unless

as

being

rnal

stances
es.

stance,

In
In
a

nractiranv ownr in
practically every m-

wife

s

In emphasizing the basic

changes which have taken place
in our economy since 1929, I want
to make it Quite clear that I am
not operating under the illusion
tbat we are knocking on the gates
of the Elysian fields where we

wdl find prosperity and stability
forever after. On the contrary I
think we are still going to have
very invigorating ups and downs
of business. In fact, I suspect
one of mild proportions is in the
makin* right, "ow> larSely he-

credit expansion standpoint is on our economy

has been dramati-

ployment by smoothly absorbing,
through more consumption or
more leisure, the economic gains
which our prodigious improvement in industrial productivity
and the rapid increase in our labor force make possible. This year
may increase the labor force by
as much as a million. And if it
keeps up the recent pace, industrial output per man-hour will
increase about 4%. That means
we must consume a lot more
goods or a lot more leisure to
avoid trouble,
Paradoxically, it seems to me
that we also have the problem of
preventing price inflation from
creeping so fast that it destroys
one of the basic foundations of
our social and economic system by
making suckers out of those who
are provident and thrifty. I alsodo not believe that this is going
to be an acute problem in 1955.
they were a much larger number This is another way of making a
of companies than that with which forecast that prices will be relawe started, reported that they tively stable this year. But I an-

substantial measure of
good luck. But it starkly underlines the magnitude of the role
which government now plays in
our economic lives. It is also a
role which, handled with a modicum of skill, can be made to
an important element
0f stability to our economy.
Of even greater importance, at
least potentially, in contributing
to the stability of our economy is
the increasing emphasis by business on long range planning, and
the increasing capacity to make
the plans stick. My office has
been making surveys of business
plans for the purchase of new
plants and equipment for the past
eight years. When we started less
than half of the companies cooperating in our surveys had any
long-range plans for capital investment. Last year over 90% of
the cooperating companies, and
a very

have at least tentative investment ticipate enough increase to make
plans extending over several it clear that the problem of keepyears.

It is one thing, of course, to
have a program. It is another to
stick with it. But our recent experience makes it clear than in
1954 companies generally „ did
stick pretty closely to their investment programs in spite of declining sales. And thus they brought

ing inflation in tolerable check is
still with us. If I were forced to
define "tolerable" I would say
that an increase of 2% a year*
and perhaps a little more, would
qualify.
In the period immediately ahead
I expect to hear a lot of talk about
this being 1929 (or perhaps 1928)
all over again. If I have done my
work properly I have successfully
demonstrated that this is a mistaken notion. The economy is not
going to be knocked off its baseby How and ebb of a rousing
wave of speculation.

under control what historically
has been perhaps the greatest
powerhouse in producing severe
economic set-backs — the violent
cutting of plans for capital investment.
a controlling reason why it is
possible for business firms to
If you keep this fact in mind it
stick with their investment plans will, I believe, help you from
in the face of a drop in income being diverted from the central
is the great increase in funds problems for your company and
made available by depreciation the economy as a whole. Of these,

allowances. In 1955, the depre- I would rank first the maintaining
ciation allowance to nonfinancial of an adequate rate of growth.
corporations in the United States
There have been several stawill be about $14 billion. This tistical estimates of the magnirepresents an increase of about tude of this problem lately The
$1% billion from 1954. That $14 steering Committee of the Nabillion is enough money to meet tional Planning Association an
about 60% of the expenditures organization designed to 'give
now planned for 1955 by these balanced representation to all
corporations.
elements in our economic society,
Those in charge of advertising has come up with the finding
budgets took the longer look dur- that our Gross National Product
.
.
rppM?inn in PVpn should be running at an annual

decent months.
?M
recession in even rate ^5 billion higher than it is
In 18 months—between the 2nd m°re striking fashion than those now running to provide tolerably
beyond the have found that mortgagors with quarter of 1953 and the 4th quar- in charge of capital budgets. They full employment.
The compar-

salary cannot be

counted unless she is

a

which advertising came

,

ment are quite likely to disqualify
an applicant, and instances where
period equal to the term of the an
individual moves from one
mortgage
Obviously
the first type of vocation to some com- Advisers, has called
one of the
rase
is the better
On the other pletely unrelated field are espec- frea}, social revolutions
of hisfcand it has been the experience cially looked down upon.
Gen- tory has se+en to that- And lost
that 'most buyers making no cash erally
speaking, an individual as^e great mass of consumers
down payments have spent rela- should
have been employed at were not tazed by talk of recestivelv large sums of monev in im- the job he holds at the time of sion last year, and went right on
proving their homes
ultimately application for at leait two years breaking records lor the volume of
ending up with equities in many unless his vocation is such that their purchases, they will not be
cases
at least equal to those who he
naturally changed his em- fazed by stock market reverses,
have made initial down payments, ployer frequently (the case of a
Hence, the shock of even a severe
The pride of home ownership carpenter going from job to job). f*rop in the s.tock market will not
V) a
dominant factor that cannot
"However, the savings bank did be communicated to consumer
be overlooked when a young fam- mentioned that they used a weekly
markets and the economy genifV acquires a home.
Of course earning formula of $2 per child eral*y af " was 1.n 1929.
.
most of our experience in writing over and above the monthly carThe c ange in income distribudirect
reduction mortgage loans rying charges computing eligibil- J10n
Perhaps the most imporbas been in a rising economy only, ity in one of their large tracts.
tant change in our economy since
and it will not be known, until
"In analyzing my conversations 1929- But. ^ is only one of. a
things get rough which method with the respective representa- whole series of changes which
of
approach
in' analyzing the fives, I can't help but feel that makes the 1955 model American
credit of the borrower is the most mortgage credit examination has economy something basically difsound.
*
changed over the years from a ferent and potentially at least far
In connection with the prepara- relatively objective operation to more stable than the 1929 model,
tion of this paper, I arranged for a subjective one. While the credit
In 1929 when industrial workers
a
member of our staff to inter- examiners gave me the previously f°sf their jobs they lost their inview two types of lenders; a large mentioned standards as ones by comes, too.
Now they have unsavings bank and a large insur- which they weigh an individual's employment insurance.
I would
ance company.
The following is credit, they continually empha- like to see the rates higher and
the
result
of
these
interviews, sized that the rules are by no periods over which payments are
which I think is interesting
to means inflexible.
Each case is made longer. But even as it is,
bear and which more or less con- subjected
to total analysis and unemployment insurance contribfirms the experience of mortgage where a man may fall down in utes an important element of stalenders over the past 10 vears:
one place, there may well be an- bility to the economy. So does the
"At your request, I discussed other balancing factor in the man's system of price supports for basic
various methods of mortgage credit history.
For instance, a farm crops. We obviously have
credit analysis with
representa- mafn's weekly salary may not be not yet figured out how to run a
tives of a large savings bank and 10j% above his monthly carrying farm price support program in a
a
large insurance company.
Our cHarges, but the stability of his reasonably economical way. But
discussion began with an outline jdb
(civil service worker, etc.) clumsy and wasteful though it is,
of
the
various
rules of thumb would be enough of an offsetting it adds an element of stability to
which are used to qualify or dis- factor to make the loan allowable, our economy that was desperately
qualify a prospective mortgagor. Similarly, none of the other rules lacking in 1929.
"First of all,
the individual's are 'hard and fast.' All the variIn 1929, government expendiweekly salary must be 10% above lous facets of a man's credit are tures of all kinds constituted 8%
bis gross monthly mortgage pay- /taken into consideration together 0f the Gross National
Product,
rnents.
This margin, however, is/ and
the resulting 'montage' is This year, as we shall be made
expected to increase as the/ judged as a whole. Consequently, poignantly aware on April
15,
amount of the mortgage gets into the mortgage credit examiner has these
expenditures will provide

making

well come to be known as the

fTy-;
i'
' T% 4- *
.1
1
I Hg NflOTl- 1 fifHI fflHlItPCC UllllflOK ca"se automobile production is
4IW MIIVll *€1111 UlAdlllCdd WUIIVMA going at such a fast clip. The
fact that neither sleet, nor rain
economy generally. In 1929 the ter of 1954—the Federal Govern- nor snow is staying the rush of
value of stock market trading ment cut the. rate of defense housing starts may be contribut^as twice the national income spending by $14 billion—from $54 ing to the same result,
that year. In 1953 it was 6% billion to $40 billion. Taken alone,
But I do maintain, and stoutly,
°f the national income. I have no that was a big enough cut in ex- that the problem of keeping our
"Sure lor 1954 but perhaps it penditures to send our economy economy on a tolerably even keel
was as much as 10%. In any into a real tail spin. But the gov- has been brought under far better
event, stock market business was ernment offset the shock of the control than it was 25 years ago.
pearIdQS comPared ta what it was cut in expenditures by massive If we keep this in mind, it may
in01929,,
tax cuts' and by givinS a powerful help us to tackle more effectively
So far as I can tell, most of the shot in the arm to the housing than otherwise some very crucial
P«°P^
<the Uniited States not industry which government cred- economic problems which still re¬
y d° not fo low the stock mar- ,t policy dominates, and thus main with us.
ke*' *bey +s^a,rc!?ly know it exists, brought the economy through on
But TheVig'3
re™arkably ^ven keel This
UnrmpYoymenT11"
true V1 ,1929/ Bu* tbe bl£ differ- operation took great skill and
Unemployment
edce t°day is that the great mass courage. For the large measure of
We still have the urgent prob-

f||t ^

lenders

rather than

somewhat.

deal

quently have quite substantial must be considered in analyzing
bank balances. They usually want credit are:
.
the money for house furnishings,
(1) The mortgagor's character
dosing costs and other expenses and family life
incurred in moving into a new
(2) His past attitude toward obhouse.
Expenses of this type ligations.
would be considered equity if you
(3) His capacity to manage his
wanted to stretch a point."
affairs financially and otherwise,

i

furniture and fixtures

no-down

has also been our experience here the benefits of a no-down deal.
year in
in the office that mortgagors apIn conclusion, the three most of age.

lhe Credlt Report
that
minimum of at least 10%
"One of the most important
of the cost of his home is spent
aspects of the credit analysis is,
in moving in
resulting in at least of course, the credit report.
In
that must eauitv
It is found that instances where a man's record
good many buyers who have shows
continued flaws, the
rrionev
and make
a
down pav- chances are that he would end up
rnent
immediatelv incur a large as a delinquent mortgagor and his
debt in purchasing furniture and application is
normally rejected,
other necessities to establish the However, there are many cases
home
On the other hand
in a where bad accounts, judgments,
good many cases buyers who can etc., cluster over a short period
afford to make a down payment of time and there is generally
do not do so, with the thought of some sort of legitimate excuse for
using the money to purchase the credit
difficulties of this type.
necessities to establish the home. Sickness, or loss of income due
The result of course is that in to recall into the armed services,
the first case the buyer putting are
typical reasons for isolated
the cash in the house will pay periods of bad credit on an otherfor
such
furniture and fixtures wise unblemished record.
over
a
period of time commen"The length of time that a proscurate with their useful life while Pective mortgagor has been emthe buyer who uses his money for ployed is, of course, very importof

thmmht

clrWori

actually increased their advertis-

ing• appnn?riatip^§.4«M^Jflce;«jb
declining sales—something which

a

way

the

weaken

Mortgage credit analysis is pres-

ently our only real control over
real estate inflation. Since there

down payment in initially, necessary
ties lhan those mortgag°rs Who is little or in this day requirement had never beenjfone before^Thus
no equity and age in they made a major contribution
put

nffAYtffZlffffc Kan In fill'
something
of
and
h- _ _
g* ■ ■
ing! This, of the by would equitythem
ITiUAiy Ujjv AJClllMlUy a
■
relieve course,
inflationary give
aspect of
r»sks

Financial Chronicle... Thursday, February 10, 1955

i




concerned>

the savings

the

representative of cally illustrated in

bank stated that they

.

y-i
Volume 181

:Number 5402

;..

The

Commercial

and

Financial

Chronicle

(725-)
estimate

on

of

Economic

seems

with

more.

the

Conference

10%

is

$35

above

organized

billion,

the

almost

or

present

level.

It

is, my impression that both
these
estimates
are
on
the
high side.
But I am impressed

of

by the fact that
growth

in

do need

we

our

more

than

economy

immediately in

is

drive

mind,
political

destructive

to

have

provide it.

Of

the
the

government

upon,

is

none

more

per¬

ceptive than that provided by the
British economist A. G. B. Fisher.
His
definition
of
full

employ¬

is

ment
ment
an

that

level

of

will

which

not

inconvenient

restlessness

among the electorate."
In

that

sense surely we have a
problem
of
maintaining

crucial
•full

employment.
something which
to

concentrate

I

will

If

that

job

have

will

here.

I

That
one

you

it,

on

done

a

will

or

of

forecasts proves to be
slightly
off the mark.
Needless to say,
any such outcome

quite inconceivable.

Business Failures Rise

the

were

week

before

due

to

Industry

impending

plus

heavy month-end push of 16,430

a

changeovers

Eisewnere, Foid Motor Co.
peak

operations

were

their strongest

56%

peak in

in

67

carried

one

Canadian

a

week's

16

day

(Jan.

28)

last

the

also

were

looking for

weeK, witn b,614 cars and 721 trucks

a

Output Scheduled This Week

To Be The

Largest

More attention

is

than for sometime past,
of metalworking.

During

the

could get when

Although
didn't

last

according to "Steel," the weekly magazine

year

was

a

peacetime

play, for

to

buy at least

much

as

out

of

the

draw

This,

While

But all

consume.

now

it

depends

states

As
on

must

users

of them
a

result,

what

be

kept

in

form

from

stems

the

construction

approach of spring and
firms in the

inventories

industry,

summer

Pittsburgh

area say

which

weather.

they

benefits

from

the

Two large construction

beginning to build their

are

plates and structural shapes for a strong spring
Inquiries for fabrication are already growing. At Chi¬
Inland Steel Co. extended its deliveries on sheared plates

cago,

three

four weeks.

or

Tin plate

producers
sales
Lewry, 3rd

M.

Lewry,

3rd. of Auchincloss,
Redpath, has been elect¬

Parker &

member of the Board of Di¬

a

rectors of

of

Investment Corporation

Philadelphia, William S. WasPresident, announced.

serman,

i

V.

FRANCISCO, Calif.—John

Cook

has

become

Protected

(revised)

connected

Investors

duction

The

month

a

A

of Jan.

as

the rate

ago

was

Schwabacher

& Co. and Dean Witter & Co.

as

are

based

on

annual

i
-

.

of

amount

and

power

electric

energy

distributed
ended

This week's output constituted a gain of
44,000,000 kwh. above
of the previous week, when the actual
output stood at 10,-

that

Car

(-Special to The Financial Chronicle)

MIAMI,
is

with

Fla.—B.

American

A.

Strickland

Securities Cor¬

poration.

.

to The Financial

JACKSONVILLE,
F.

Butler

has

Chronicle)

Williams

pany,

the

revenue

freight for the week ended Jan. 29, 1955,
1% above the preceding week, according

U. S. Automotive

Capacity Eases Slightly From

Level of Previous Week
The

automobile

industry for the latest week, ended Feb. 4,
according to "Ward's Automotive Reports" assembled an
164,295 cars, compared with 160,666 (revised) in the
previous week. The past week's production total of cars and
1955,

Renyx, Field

ORLANDO,
Hudnall

is

Fla.

now

—

Burrell

affiliated

1

B.

with

trucks amounted to 3 82,896
week's output of 358

units, a decrease below the preceding
units, states "Ward's."
In the like week

of

1954

127,996 units

manufacture

Renyx, Field & Co., Inc.

were

"Wards"

notes,

turned

out.

to Staff

(Swi'iO to The Financial Chronicle)

ST.
J.

PETERSBURG, Fla.—James

Donlan

staff of
j

4.

has

been

added

to

McCleary & Co., Inc., 556

Central Avenue, members of the
New York Stock Exchange.




$5,000

or

they

edged

more

up

$100,000
with

as

incurred

were

compared

14

in

the

pre¬

the

total

sum

of

the

price

and

use

per pound
its chief func¬

prices at the wholesale

commodity price average continued its mild
last week, influenced to some
extent by
The

"Dun

by

previous, and 275.03

a year ago.

reported about up to normal in
drought areas of the Southwest.
Cash

crop

the

except

prices

up¬

the
daily wholesale commodity price
& Bradstreet Inc.," finished at 280.08

Far East.

was

firmer, reflecting a sharp drop in market re¬
ceipts, small country offerings and more active export business.
Feed grains generally received some support from the
prospect
were

of increased feed requirements due to the recent cold weather.
Trading in grain futures on the Chicago Board of Trade declined
moderately last week to a daily average of 44,600,000 bushels,
from 50,600,000 the week before.

The

raw

at 6 cents

showed

market

sugar

was

more

active

with

offerings firm

pound, delivered.

a

Demand in the world sugar market
improvement at the week-end. The butter market

some

a
shade easier, while fresh eggs were firmer with most
grades clearing closely under generally lighter supplies.
Cocoa prices showed little change for the week as
profittaking and hedge selling pared early gains. Warehouse stocks

was

of

cocoa

95 617

Monday

on

week

a

totaled

earlier,

94,464 bags, down slightly from
comparing with 74,679 bags a year

and

ago.
The

coffee market developed considerable weakness

green

competition

between

Central

American

African

and

that Brazil may have to reduce its minimum

rumors

ay

coffees
ex¬

port price.

Spot cotton values developed further strength last week. The
continued

upturn

East, the

prospect

influenced

developments in the Far
supply situation later in the
season, and the unexpected increase of 50 points in the midJanuary parity price to 35.22 cents a pound. CCC loan entries
during the week ended Jan. 21 were reported at 66,202 bales,
in

was

of

over

tight

a

by

free

three months,

and bringing the total for the
bales. Withdrawals of 1954-crop cot¬
placed at 26,490 bales, the largest thus far this season,
leaving 1,857,686 bales of 1954 crop still under loan.
ton

thus far to 2,037,353

were

Trade Volume Decreased

as

Snow and Low

Teperatures

Prevailed In Many Parts of the Nation Last Week
Snow and subnormal temperatures in many parts of the coun¬

try

curtailed

last week.

in

shopping

Retail volume

the

was

period ended on Wednesday of
considerably below the level of the

preceding week. While sales of automobiles, apparel and food
declined, volume varied considerably from region to region.
The

dollar

volume

sponding week

of 1954.

Some

mated
a

trade

than

did

other

was

unchanged

from

the

that basements registered

corre¬

relatively

departments.

dollar volume of retail trade

in the week

was

esti¬

by "Dun & Bradstreet, Inc.," to be 2% below to 2% above

year ago.

levels

East

of

retailers reported

sales

The total

and

Regional estimates varied from the comparable yearthe following percentages: Midwest —2 to -—6;

by

Northwest

to

—1

—5;

New

England 0

to —4;

Pacific

Coast

+1 to +5; South +2 to +6; Southwest +4 to +8.
>
Wholesale volume in the week was unchanged from the level

the preceding week but considerably above that of the corre¬
sponding week in 1954. Many delivery dates lengthened, as buy¬
ers' optimism remained strong.
Department store sales on a country-wide'basis as taken from

is running

in

less

weekly vehicle
than 6% under the

1950, when 196,348

Last week, the agency
reported there were 18,601 trucks made
United States. This compared with 22,588 in the

the

previous

week and

19,846 trucks

"Ward's"

a

estimated

year ago.

Canadian

plants turned out 6.614 cars
against' 6,524 cars and 690 trucks in
preceding week and 9,019 cars and 2,027 trucks in the com¬
parable 1953 week.
;
and

the

721

trucks

last

week,

the

Federal

Reserve

1955 advanced

ing

1%

week, Jan 22,
of the

that

Jan.

29,

1954,

Current

all-time high set in the week
ending June 17,
cars and trucks were
produced.

McCleary Adds

the

sections

ago

estimated

With

all

Gain of 1% Above Previous Week

increased 6,326 cars, or
to the Association of American Railroads.

Com¬

(Qpecif>! to The Financial Chronicle)

in

The Winter wheat

better
a

of

but

comparable

exceeded

Feb. 1, as against 279.66 a week

15.8%

over

the

of

Barnett Building.

Investment

on

■

Loadings Show

connected

with

or

1953.

Loadings of

Fla.—Leslie

become

in

Loadings totaled 641,979 cars, an increase of 13,786 cars or
2.2% above the corresponding 1954 week, but a decrease of
55,463
cars or 8%
below the corresponding week in 1953.

Joins Williams Inv.

..

like week

1953,

in

&
the

Commodity Price Index Influenced By Far
Mildly Upward

index, compiled

by the electric
Saturday Feb. 5,

1955, was estimated at 10,047,000,000 kwh., a new all-time high
record, according to the Edison Electric Institute. The previous
all-time high record at 10,003,000,000 kwh. was established in the
previous week.

and

represents

movement

situation

the smallest

industry for the week

liabilities

week

foodstuffs and meats in general
the general trend of food

The general

season

003,000,000 kwh., and an increase of 1,373,000,000 kwh.,
the comparable 1954 week and
1,918,000,000 kwh.

With American Securities
-

capacity of

of Jan. 1, 1954.

over

■

pro¬

in

above

Eastern Situation Continues

1, 1955.

83.2% and

year

percentage figures for 1954

124,330,410 tons

The

ten, Jr., have become associated
•twith Reynolds & Co., 425 Mont¬
gomery Street.
Mr. McNaughten

with

capacity of 125,828,310 tons

2,007,000 tons.

1955 is

ago the actual weekly production
placed at 1,774,000 tons or 74.4%. The operating rate is not
comparable because capacity was lower than capacity in 1955.

light

FRANCISCO, Cal.—Thos.
;J. Ferrari and Malcolm McNaugh-

formerly

for the weeks in

well

the

Wholesale

brought

week ago.

Electric Output Extends Its Gains To
Register a New
Ail-Time High Record For The Past Week

SAN

was

a

was

Reynolds Adds Two
:

annual

on

of

(Special to The Financial Chronicle)

-

and 2,070,000 tons

The industry's ingot production rate
based

-America, Russ Building.

•

quoting two-week delivery.

container makers.

For the like week

(Spsc'aJ to The Financial Chronicle)

with

been

erating rate of steel companies having 96.1% of the steelmaking
capacity of the entire industry will be at an average of 87.4% of
capacity for the week beginning Feb. 7, 1955, equivalent to 2,110,001) tons ol" ingots and steel for castings as
compared with 85.8%

*

Protected Investors Adds
SAN

are

had

The American Iron and Steel Institute announced that
the op¬

PHILADELPHIA, Pa.—Thomas

ed

of

It

demand, seasonal in nature, is expanding and some
looking for the second quarter to set a record in

last

week

level.

of

season.

215

index

raw

corn

up.

318

is to show

sea¬

of steel may become easier to
get, others may
Sheared plates, for instances, have been in light de¬
mand, but they are beginning to tighten. Some of this tightening
one

tion

upon

steel

way,

consumption patterns.

demand for the various forms of steel
son
we're in or
approaching.

tighten

i

ward

they

as

seasonal

same

to

159

of

the

upward
movement
of
the preceding
three,
weeks, the wholesale food price index, compiled by "Dun & Brad-"
street, Inc.," recorded a moderate decline in the latest
period..
The Feb. 1 numoer lell to
$6.85 from the previous level of $6.88. \
It compared with $7.01 at this time a
year ago, or a drop of 2.3%,' \
Up in wholesale cost last week were
corn, oats, barley, hams
and eggs. Lower were
flour, wheat, rye, lard, milk, coffee, cocoa,
currants, steers, hogs and lambs.
.*

factors

seasonal

decided

consumers

their inventories for
steel, it notes.
Now with inventory reduction

the

year,

the

level

in

states-'"Dun

casualties

and

ago

prewar

264

week.

of 31

by steel buyers

seasons

year

the

lifted

to

week*

.

war periods, people
took all of the steel they
they couud get it. But in peacetime it's different.

into full

come

being given to

now

below

involving

from

The

Since The Week of Oct.
26, 1953

increase

a

rose

preceding

1939.

Reversing

slight improve¬

programmed, com¬

17%

failures

the

Wholesale Food Price Index In Latest Week
Falls
2.3% Below Level of a Year Ago

<.

producers

pared to 6,524 and 690 last week.
Steel

vious

factory rolled along
the plant
machinery rearrangement,

for

This

in

by 21 of the failing businesses,

six-day

Independents to
Biggest gain over a week

weeks.

255

the 203 of this size re¬
corded in the similar week of
1954. Meanwhile, small
casualties,
those with liabilities under
$5,000, held steady at 40; a year ago
the toll was 35.
Liabilities in excess of

postwar
ail

224

The Kenosha

"Ward's" reported.
ment

last

at

of

Moderately In Latest Week

industrial

from

occurred

Failures
to

faster pace than in the previous week when

down

was

rates

car

schedule

American Motors.

at

was

a

to

remained

tap at Studebaker and De Soto.

on

Studebaker's overtime

ago

remained

3

which

week

mainly to Ford Division's programming of
plants for Saturday car scheduling.
Similar

due

assembly

at

at

mind in planning purchases.

M.

238

attempt
Monday (Jan. 31),

cars on

Feb.

Bradstreet, Inc."

new records at Oldsmoblie and Pontiac.

have

T.

ended

and

do not have the

Elected Director

4

General Motors Corp. truck divisions.
General Motors offset this dip as it aimed at a new
weekly car manufacture.
Included in the new record

be

two

my

however, I find

from

Chevrolet

said

help

have

through

even

I

effectively

feel

useful

:true

ing

unemploy¬
"provoke

page

The State of Trade and

manifold defi¬

nitions of full
employment I have
come

from

Commercial and

prospect to check

very powerful and, to my

ultimately

Continued

Progress,
which
heavily., weighted

.

representation: of

labor,

a

29

A

.able

a

1955,

Snow

1955,

and

index

for

the

week

last year.

increase of 10% was registered from
in 1954, and for the four weeks ended

of 1C% was recorded.
For the
registered below that of 1953.

increase

an

was

Jan. 29,
In the preced¬

ended

an

similar period

loss of 1%

volume in

Board's

from the like period

year

frigid temperatures worked to depress retail trade

New

York

ranged from 5 to

City the past week.

Declines for the period

10% below the like week in 1954.

According to the Federal Reserve Board's index department
sales in New York City for the weekly period ended Jan.
registered a decrease of 2% below the like period of
last year.
In the preceding week, Jan. 22, 1955, an increase ol
2% was reported from that of the similar week in 1953; while
for the four weeks ended Jan. 29, 1955, an increase of 4% was
store

29,

1955,

reported.
1953.

For the year 1954 the index advanced

1% from that of

•

;

30

Assets
annual

By ROBERT R. RICH

953,551, the highest in the history
of the company.
The net asset
value
per
share increased from
$10.36 to $15.73,

gain of 54%.

a

commenting

In

the general

on

the manage¬
think that the
rise that has taken place in stock
level of stock prices,
ment

stated,

"We

prices was an adjustment from an
abnormally low level to a more
normal level rather than from a
to

normal

abnormal level.

an

people saw that business,
finance and government had the
"As

to prevent minor contrac¬
tions from developing into major
powers

to have a new
stability of cor¬
porate
earnings and
dividends.
They became willing to pay a
higher price for them.
ones

they

began

the

of

concept

Officers

the

minister
Bank

have

from

that

think

"We

what

is

brought

merely

the

stocks into

common

normal

relationship

yields.

Investors

values

on

yields
more

bond

appraising
confidence

sponsored

jankers

dent

action,

the

of

United

States

Trust

Company, has been elected Presi¬
of the

dent

were:

,

Vice-Presidents—Charles M Bliss,

Vice-President, The Bank of New
York, New York City; Charles E.

Vice-President

Jr.,

Treman,
Trust

Tompkins County
Company, Ithaca. Secretary-

Treasurer—Charles

Trust

York

Bankers

State

The

Lloyd,

New

Association.

fund, the first mutual trust

investment

1, with

million

of

dollars.

will

'It

trusts, estates, and guard¬
administered

ianships

by

the

State of New

in the

is

operations

resources

legal investment med¬

a

ium for

banks

begin

to

May

several

in America,

company

expected

around

It

G.

E.

Division,

Secretary,

is

and

Officer,

Trust

York.

mutual

open-end

an

will

operate

basis

Bank

Fiduciary

is

Fund

in¬

York

350

porations.

For

May

rectors

are

selection of

cor¬

in

FREE

two-hun¬

the

into operation

officers and
engaged in

1,
now

institution to

an

di¬
the

serve

capacity of Custodian, In¬

information folder and

vestment

prospectus, clip this ad
and mail with your name and address.

Registrar of the Corporation, and

NATIONAL SECURITIES &

CORPORATION

RESEARCH

Advisor, Transfer Agent,

Depository of Corporation Funds.
technical

Other
evolved

matters

being

the status of the

are

cor¬

Established 1930

120 Broadway, New York 5, New

York

poration

as

an

investment

pany

under the Investment Com¬
Act of 1940 which requires

the

registration state¬
possible
compliance

filing of

ment "

with
The
tion

Securities

the

will

fund

The

Act

of

apply for

certain

from

these

a

and

1933.

exemp¬

provisions

of

acts.

directors*

are

also

preparing permanent certificates
of capital stock which will be pur¬
chasable by the more than twohundred
York

The
under

Prospectus from
your

PHILADELPHIA

or

3, PA.

State

having

Bank

the

banks

trust

in

powers.

Fiduciary Fund
supervision

direct

from

in

the

Federal

Washngton.

establishment

was

atomic

the

Superintendent

of

pleased to inform you

are

Banking

fixed

Board

"We
form

of

at

its

fund

for

the

smaller

State,

which
have

years
ago,
their fruition.

fill

believe

began

that

three

achieved

now

We in the

valuable

a

investment

held by the
corporate fiduciaries of
moneys

this

place in the

com¬

munity and will permit corporate
bring better diver¬

sification and

more

effective

Directors

of

the

tion, who will
Charles

new

Fifteen

corpora¬

of

New

City;

dent,

The

Trust

Herbert
National

Company,

Robert

Hanover
A.

M.

Lovell,

Bank,

New

Vice-Presi¬

Jones,

Commercial

Bank

and

William

Albany;

T.

Haynes, Vice-President, Marine Trust Com¬
pany

New York,

of Western

erick

Hainfeld,

Buffalo;

Executive

Jr.,

Fred¬

Vice-Presi¬

The

fund's

spread

investments

over

Wm.

electronics.

Gage Brady, Jr., Chairman

of the Fund's

Board, said to share¬
holders, "There is no thought that
the
be

management of the fund will

uniformly successful in its in¬

vestment selections.

others

Some of our

fail

may

An investor
seeking growth should spread his
the

over

securities

in

*

a

com¬

panies rather than try to pick one
or
two.
Through
Diversified
do

this

Among

we

believe he

fund's

automation,

in
and

electronics

and

Corp.,
Motorola.
Instruments,
Consol.

Engineering Corp., Dow Chemical
Co.,

Filtrol

Corp.,

Hooker

Elec¬

trochemical
of

Co., Houston Oil Co.
Kerr-McGee Oil Ind.,

Texas,

Inc.,

Minneapolis

Honeywell,

-

Monsanto

dent,

Inc.

City;

Poughkeepsie
Trust
Company,
John G. White, Vice-Presi¬
Trust Company, Rochester;

President,

Security

Auric

I.

Johnson,

Vice-President,

and

Deposit

F.

Trust

First

Carpenter,

Robert

Company,

Syracuse;

Vice-P resident,
Watertown National Bank, Watertown.

U.

Fund, Inc.,
investing in

mutual fund

S.

Canada,

exceeded

$30,000,000 at
the of 1954, and the assets of the
Canadian Investment Fund, Ltd.,
Canadian mutual fund,

a

ed

Dec.
228

assets

of

*

Common¬

Investment

Company rose
during 1954 to $89,409,527 on

35%

31,
a

compares

year

Dec. 31

$66,290,-

with

was

on

to

$8,-

Nov. 31, 1953.

$10.29.

After

adjustment

security

profits

increase

amounted

distribution,
to

for

this

50.1%.

During the second

value

share

per

on

$8.44—a record high.

through special enabling legisla¬
tion passed at the 1954 session of

tric

period.

During the six months, 38 new
securities

half

of

the

to

added

were

Fund's

portfolio, bringing its hold¬
ings to securities of almost 100
companies operating across the
spectrum of atomic energy work.
Many of the new additions were
in the field of atomic energy raw
securities

companies with uranium hold¬

ings in the United States, Canada,
Africa,

Australia.

and

Approximately
50%
of
the
Fund's holdings are in the raw
materials field, including uranium
mining and milling, fuel process¬
ing, by-product mining of uran¬
ium, and production of beryllium,
liUndiii, uiorium, and zirconium,
all critical e^ments in atomic

utilization.

erpv

The

percentage
invested

assets

from

77

six-month

the

crease

Fund's
stocks

common

securities
to

90%

period.

accounted

was

pally bv

the

of

in

rom^arafre

creased

en,

in¬

during

"The
for

in¬

princi¬

11% increase in funds

an

invested in securities of companies

producing
field

raw

materials, in which
believes

management

your

the

portunities still exist." Steers and

Oil

Well

Cementing

Co.; 10.000 shares of National Re¬

Because

few

companies

are

so

search Corp.;

74,000-share b'ock of General Dy¬

theon

namics

8,000 shares of Ray¬
Manufacturing Co.: 10.000

20,000

Telecomputing Co.; and

shares

of

Instru¬

Texas

31

The

fund

ked

value

On

sold

its

investments

was

its

largest

holding,

doliarwise, oh Dec. 31, with

ments, Inc.

land

possible

to stockholders.
Unreal¬
appreciation
of
securities
amounted
to
$1,430,809
in
the

ported
ized

preoccupied
with
the
atom
as
General
Dynamics,
the
Fund's

Largest industry holdings were
oils (12.4%), public utilities-elec¬

Reserve

Dec.

I.

Chairman

the most favorable investment op¬

in

at

stocks

Newton

Halliburton

(68.6%),
preferred stocks (16.5%), bonds
(12.8%) and cash and receivables
(2.1%).

holdings

Common

the

increased

10,000, President
Steers, Jr., and Board
Merle Thorpe, Jr., re¬
to

Thorpe told stockholders.

Securities
were:

and

$12,796,669,

to

purchases made
by the fund were 4 500 shares of

shares of

earlier.

asset

Net

with

1954 year, among

,

NET

comnared

were

Net as¬
share increased dur¬
ing the same period from
$7.23

exceed¬

$60,000,000.

wealth

915,198

31, lnc^4

set value per

ASSETS OF Canadian
a

$11 ?«2.054

Dec.

on

$2,-

of stockholders

2,000

p-h

Net assets

on

from

226,997
from

of

holdings

Admiral

were

increased

assets

materials, and included

effectively."

the

quintupled

1954.

31,

Net

prosper

their

Develop¬

Atomic
Fund

during the six months ending

same

to

fulfill

may

promise generously.
money

the

of

Mutual

number

companies.

Poughkeepsie;

Island Trust Company, Garden
Donald A.
M'oore,
Executive Vice-

Long

Net assets and number of stock¬

holders

were

stocks in 49

common

Chemical,
Columbia
Broadcasting, International Busi¬
ness Machines, Texas
Instruments,

dent,

Quintuple in Half-Year

year

fund's hold¬

in

15

Beckman

City;

shareholders

Atomic Fund Assets

Dec.

and

York,

The

the

at

the

of

atomic
energy,
instrumentation

York

Diversified

of

Fund

York
City; Charles E. Treman, Jr.-,-,
Vice-President and trust officer, Tompkins
County Trust Company, Ithaca; Charles M.
Bliss,
Vice-President, The
Bank of
New

New

pre¬

mentation,

York,

New

Vice-President,

of

number

7,652 compared with 5,286. Asset
value per share on Dec. 31, 1954

ment

Vice-President, United

Company,

the

and

ings have atomic energy interests,
13 are in automation and instru¬

can

Buek,

Stock

without com-" growth Stock Fund,

serve

report

broad list of industries and

are:

W.

Trust

the

serv¬

ice to the public."

pensation,

end.

while

fiduciaries to

of

investments

Depart¬
companies
will-

Fund

electronics and

energy,

pictorially to shareholders

different

the

pref¬

companies with interests

feature

A

sented

happy that efforts to

are

a

ment

Superin¬

as

of Banks.

trust

the

approval

my

tendent

its

automation.

notifying

is

The Fund's

made

in

letter

a

of

Banking De¬
partment and has received clear¬
Board

York

In

meeting today approved the cer¬
tificate of incorporation of Bank
Fiduciary Fund, and. I have af¬

New

the New York State

ance

investment dealer

smaller

the

the

TOTAL

fund's

New

the

those

HOWARD

&

Fund's 24th Annual Report

investments

selecting

in

Board.

month

shareholders

to

for

erence

a

com¬

pany

FOUN D6DJ92

that

York

secu¬

rities of American

than

put the fund

around

objectives,currently in¬
over

more

State.

To

Mutual Funds with

vested in

to

of

1954 by

said:

States

This resemblance is deliberate for

29,

stressed

was

Growth

fund.

trust

common

a

dred of the smaller banks in New

varying investment

Banks

non¬

a

loading
respect it will

In many

resemble

on

fund

without

and

this

"We
elected

legislature.

Association of the Banking Board's

Fund.

officers

Other

facilities

SERIES

Dec.

on

action

earlier

tended to offer common trust fund

7

chartered

State

Fiduciary Fund

State Banking

the

SECURITIES

York

Bank

Associatipn
were announced Monday.
Charles
W.
Buek, Vice-Presi¬

charges.

NATIONAL

Fund

New

The

special

State

profit

7 MUTUAL INVESTMENT FUNDS

the

by the Trust Division of the New

which

instead of doubt."

ad¬

to

chartered

York

provide
a

with

are

basis of

the

has

investors

that

and

place,

newly

Fiduciary

%

taken

directors

and

EATON

Report Stresses
Atom
Holdings

Incor¬

of

report

porated Investors shows total net
assets on Dec. 31, 1954 of $197,-

Corp.

Stock
shows
net assets of $38,092,795 up from
$20,860,870 at the beginning of the
year.
Shares outstanding totaled
Diversified Growth Stock Fund
2,223,704 compared with 1,726,902

Funds

Peak

at

1955

Carbide & Carbon

Inc., and Union

Growth Fund

Incorporated
The

Thursday, February 10,

The Commercial and Financial Chronicle.»*

(726)

of

news

100%

of

earnings and
a
dividend,
General

stock

Dynamics

a mar¬

$595,000.

rose
during January
103, giving the Fund a

Calumet &TElecla, Dewey &
Almy Chemical Co., Durez Plastic,

from 80 to

Firemen's Insurance

capital appreciation of $1-39,000 on

Co.

of New¬

ark; P.

R. Mallory & Co., Mary¬
Casualty Go., Merck & Co.,

Texas

Uutilitie&

Co.,

Tracerlab,

its

holdings. Profit-taking brought

the stock down to around 100 this
last

week, the Fund reported.

(12.1%) and chemicals-drugs
(6.1%).

(Wamuieoltii
INVESTMENT

iticcsl

A balanced mutual fund

ATOMIC SCIENCE
through

m

Fundamental Investors, Inc.

over

Diversified Investment Fund, Inc.

ATOMIC DEVELOPMENT

a

FUND,

Manhattan Bond

of

STOCK

Diversified Growth Stock

Fund, Inc.

variety of

resulting

AVAILABLE

FROM

YOUR

ON

LOCAL

THESE

MUTUAL

INVESTMENT

FUNDS

DEALER,

OR

Cleveland

Chicago
Los

W33 THIRTIETH

STREET, N. W.

WASHINGTON 7. O. C




Hugh W. long and company
Incorporated

Angeles

San Francisco

mi! DEVELOPMENT SECURITIES CO.

stocks of well-established

long-term growth of income and principal.
PROSPECTUSES

from Atomic Science*

m THE FACTS AND FREE PROSPECTUS

common

FUND

investing in diversified

companies selected for the possibility of

companies participating
in activities

possibility

Fund, Inc.
A mutual fund

managed investment
a

common

provide reasonable current

long-term growth of principal.

Inc.

designed to provide

in

investing in

bonds, preferred and

income with conservation and the

f

MUTUAL

300

stocks selected to

a

MUTUAL FUND

is

COMPANY

in

Westminster

at

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Managed ond Distributed by NORTH AMERICAN
Russ

Building

•

SECURITIES COMPANY

San Francisco 4, California

Prospectuses available from Investment Dealers or the above

"Investment Company Managers

since 1925"

vWhotaoleRepresenftrfnies: Boston •Chicago* Dalias*Los Angeles* New York •Washington, D.C.

Volume

181

Number 5402

The

Commercial

and

Financial Chronicle

(727)

Distributors Group Holds Conference

Continued

jrom

31

5

page

Observations.

•

•

templated commitments has been made in part by
setting ^side

funds in the government securities .listed in
the. attached
'■

*-

repor^.T v*

•

..

„
.

Always

.

..

Good Mud-Horse

a

~
„

With
Gypsum, as well as Ward, Mr.
unique ability as a foul-weather manager.

Avery'"has shown

his.

T'

During the Great Depression the company made a profit
every year, and paid common
dividends uninterruptedly and without
impairing the company's
financial stability. In
1932, the worst depression year, the com¬
pany distributed $2,451,380 to the
and in 1934 an extra to raise

stockholders; in 1933 $1,735,484;
payments to $2,0115,208.

^ -C" *

These disbursements which used
up practically all the current
earnings, and in one year actually entailed a drain

(of $851,964

on.surplus
the previous

in

>
.^

1932); a course made, possible by
reserves, typified a generous dividend policy
during both depression and
succeeding-prosperity.

building-up of large
at Gypsum

-

Incidentally, this has been in'sharp contrast to Mr. Avery's
.philosophy while wearing his Ward hat. - Whereas, at-Gypsum,-anaverage of

56%

Ward

war,

ments

—

down

v

of the annual

despite

to 35%

earnings have been paid out postbulging cash—-has held its- disburse-'
earnings.
~

its

of

~

*

_

Queried by this writer about this indicated
inconsistency, Mr. ''
Avery insisted that long-time inflation ill real estate "and storebuilding costs has made of Ward's a different situation.
Expansion Proclivities
Also in

the

of

area

expansion has Mr. Avery*with Gypsum-.,
liberal philosophy. Th fact,The
?excep-"'
efficiency of the plants, as well as their strategic
location, are credited with giving the company a wide advantage-."""

•consistently

practiced

a

tional operating

:
The continued high level of investment activ¬
ity forecast for 1955 will accelerate the growth of

mutual

funds

sales,

according

to

the

Among those lif attendance

consensus

tive

view expressed at the annual
sales meeting of Dis¬

tributors Group in New York
•

City, Jan. 24 to 28.

The company's regional sales
managers from all
over.the country met for discussions
which includ¬
ed sales and market
studies, the role of Group Se¬
curities' 21 mutual funds in
current and forecast
new

compared with $12.08
earlier—46% increase after
adjustment for the 50c per share
a

year

distribution

of

realized

its

14,100 Western Auto Supply Corrf-

by

PRINCIPAL

in

Reduc&
Chalmers, 3,008

in

the

his

itinerary.

HARRY

WILLIAM J.

three

the

months

period

ended

Cyanamid, 7,000 C & O, 1,700 Gulf
Oil, 10,300 Inland Steel, 3,400 In¬
ternational
Paper, 8,000 Middle
South Utilities, 8,000 Murohv
CG.
C.) Company, 4,500 Nickel Plate,
11,000 Pfizer, 7,500 Southern Com¬
6,400 Standard Oil of Cali¬
10,000 J. P. Stevens, 9,900
Union Oil, 6,000 United
Gas, 10,300 Virginia Electric & Power
and

President

York

this week

field

on

as

the

portfolios

Securities

of

Series

Mr.

New

has
1936

and

ecutives,
men

in

the

included

ment

field

in¬

THE

business

eco¬
ex¬

investment

various cities covered

$25

Hewitt

in

ager

Ohio

has

an

opening

distributes fund

opportunity.
approaching $30,000,000,

Assistant Sales Manager.

as

shares

sales organization.

solely through its

The

we're

man

no!
a

to

carve

successful

less than $10,000

position

future in
If

a

you

a

are

with

a

a

career,

year,

350-man

retail

ability,

with

for

qualified,

write

man,

intense de¬
to

earning

you'll step into

salary, bonus, and

full

an

excellent

the

actively

his

of

post

new

ex¬

New York

invest¬

of

He

Hewitt.
New

He

York

details, including

age, etc.

All replies strictly

sales
con¬

to

plans to have

determine

its

oil

is the Gypsum

Company's remark¬
Only one officer has

a

he

year

left

that

of the Mhrathon

also,

company

Corporation.
head Pabco

to

initiated

days Mr. Avery

was actually a pioneer in providing
to stockholders. In his annual
report for-1920 he

several

the practice

years—four

gives

company

a

of

showing comparative balance sheets for
in

years

sion to

particular

instance.

comparison of

seven-year

Our iconoclast's market

this

these

"a-consciousness,"

or

Now

the

figures.

at least his

aver-^

catering to the market, is demonstrated by Gypsum's desistsplitting its stock, despite its price well above 200. Dis¬

from

ence

approving the current stock-splitting craze, Mr. Avery has been
as saying that splitting a stock is like
getting two checks

quoted

for your overcoat.
His Record at Ward's

Part and parcel of this statement of "the
Avery record" must
an

objective listing of such progress

gomery Ward since his assumption
184 new stores have been
568
9

as

has taken place at Mont¬

of control

at the end of

1931.

opened, bringing the chain's total to
retail stores, in addition to 263 catalogue order offices and

mail

order

1932 to $884

houses.

Sales

have

million in 1954.

increased from

$176 million

in

Working capital has risen from $79

was

a

Stock

in

L.

Other

Exchange

agent

London

Corporate Activities

Mr. Avery's corporate activity and achievements include
many
areas outside of Ward and
Gypsum. For many years he has served
on the boards of U. S.
Steel, Pullman, Pure Oil, People's

Gas, and
Fellow directors at Steel say that he never misses
meeting; that he is keenly alert to what is going on in the enter¬
prise; and that it is evidently an article of faith with him that the
position of director carries the responsibility of constant super¬
Northern Trust.
a

vision.
And

Mr.

Boards of the

Avery's conscientious director-ing also includes the
University of Chicago and the Chicago Museum of

Natural History.

member of the

ROTH,
the

having a net worth
$600 million, $300 million of which is in cash.

of

excess

Work

for

Mr.

in

St.

Guarantee

at

Avery continues

While

mid-day

had

since

8

on

a

for

visit to
an

a.m.

and

as a

Play

Chicago

appointment,

been

out

Energy

fireball of energy—for

on

a

this
to

writer

learn

a

man

phoned

that

round-the-clock

the
and

of any

his office

Chairman
round-the-

and Accident Co., Ltd., was elected
to the Board of Directors of As¬

territory visit to the branch offices and stores, but that he would

sociated

nevertheless receive business phone calls at home in the evening.

left

past

about

full information

age.

for

include

by

Fund

the

to

fill

recent

the

death

vacancy

of

John

first meeting of the new

Board, the following officers were
elected: C. J. Schuepbach was re¬
elected

President;

Mullen, Jr.

was

Vice-President
Robert J.

Secretary.

Lawrence

M.

elected Executive
and

Rothschild

phoning

On
an

At the

him at 8.30

immediate

p.m.

two-hour

at his home, we were welcomed to

discussion

of

his

company

policies

and

corporate philosophy and convictions.
And

our

He does his
ages

hard

working Happy Warrior still finds time to play.

18 holes of

actively to

pursue

golf when the weather permits; and

man¬

his penchant for bird-hunting.

Treasurer;
was

elected

_

Stability

now

dent, Jjeft in 1949 to;become President
After

17 years.

Louis

even

attempt

an

stability in executive jobs.

years.
an

firm of Hewitt &

own

for

investment

Hewitt, Brand and
subsequently headed
Co., and
later was
successively a partner
in the New York Stock
Exchange
firms
of
Hewitt
&
Satterfield;
Fransioli & Wilson; and Rollins &
Grumet.

been

Products).

H. Caldwell.

Box II 210, Commercial and Financial
Chronicle.




been

number

a

the

firm

years

million to $597 million, with the corporation
has

brings to his

LOUIS
an

rapidly expanding organization.

record, managerial experience,
fidential.

The underwriter

own

and is accustomed

ff you're that

substantial

was

looking for has successful

fund sales experience,
proven managerial
sire

Fund

ecutive experience that goes back
to the late '20s when he was a

ASSISTANT SALES MANAGER

assets

Pennsylvania,
Virginia for the

Delaware

Hewitt

partner in

Underwriter of mutual fund, with

man¬

the

over

left the company for reasons other than death or
retirement (Wil¬
liam J. Keady, who had risen from the ranks
to become Presi¬

be

wholesale

as

West

million

ment

career

1916.

western

and

timely interest

record

1941.

announced.

He

Fund Needs

Also of

able

invest¬

APPOINTMENT of William

business

high-earnings

the

National

Mutual

and

since

active in

since

associated

A

Director

a

are

Wilson

bankers

company in
1931
Vice-President
since

He has been

the

with

Friedman, who joined

been

investment

corpora¬

Dacey will discuss the
outlook

Mr.

the

vestment funds.

nomic

formerly Assistant Sec¬
retary of State for Economic Af¬

of

of

Job

Mr. Lin¬

was

have

efforts

property in

In the old

service, was elected to
the newly created post of Vice-

plant locations

new

possibilities.

was

ernment

fairs.

the

seismic

General

F. Linder, who resigned
President and is now in Gov¬

&

nation-wide

a

study

tions whose securities

in

left

of

of

The company's expansion
tests on its

will

Harold

Mr.

Fast-Growing Mutual

Most

personally negotiated by Mr. Avery; with at least one of his executives emphasizing his consistent efforts toward
improving efficiencv through constant
modernizing of machinery.

of Directors.

der

Securities

Corporation,

economic

pany,

fornia,

plants, and for improvements to the equipment of the older plants.
manufacturing operations today are credited by a
top industry executive as being "superb in cost and service."

The company's

American
Investors
Company,
Inc., it was announced by- Frank
Altschul, Chairman of the Board

DACEY, member of

National

of

tour

Chairman of the Board.

Policy and Investment Com¬

mittee

Research

His

FRIEDMAN

1

elected

Personal Progress

stock

Dec. 31, 1954, included the
pur¬
chase of 4,300 shares of American

board

Louis, Kansas City,
Tulsa, Denver, Tucson, Los An¬
geles,
San
Francisco,
Oakland,
Portland, *€>fe., Seattle, Spokane,
Minneapoi»B-Tand Chicago.

Sales included 4,000 Air

investment hold¬
of Dividend Shares, Inc. for

ings
the

CHANGES

Gaston,

Already in his report of 1908 Avery highlighted "the cost reduc¬
tion achieved by a liberal
program of expenditures." Throughout
the 1920's the company's annual
reports to stockholders stressed
the large expenditures that were
being continually made for new

take him to St.

,

common

S.

pany.

tion, 2,000 Allis
December.
Dividends
from
in¬
Aluminum, 4,300 American Brake
vestment income in 1954 totaled
Shoe,
15,842 —Blaw-Knox,
4,000
46V2C a share compared with 45^0 Climax
Molybdenum, 3,900 Gulf
paid in 1953.
States Utilities, 6,000 International
At the
year-end, 92% of the Harvester, 10,900 Louisville Gas &
Fund was invested in 103 stocks Electric, 4,400 Montana Power Co.,
in
28
different industries.
The 17,500 RCA, 6,000 Southern Paci¬
fic, 2,700 Union Bag & Paper and
larger
common
stock
holdings
6,000 Westinghouse Electric.
were
in Ihe oil
(13.7%), insur¬
ance
(9.9%),
pov/er
and
Holdings of Boeing Airplane,
light
(8.2%),
chemicals
(7.0%),
and L. & N., and United Shoe Ma¬
natural gas (6.3%) industries.
chinery were eliminated.
pro

Kenneth

bridge, Walter Murphy, John Ahbe, John Cornell,
James Elliot, Bill Dosher.

sales techniques.

$17.13

was

Vice-Presitfcyat;

chairman; Herbert R. Anderson, President; John
S. Mayer,
Vice-president.
Standing (le|r to"jright) Frank Mclnerney, Harold
Grothaus, RegtnalifWaish, Claude Thomas, Herbert
Joncas, John JVilson, Miles Burgess, Rex Stem-

-

conditions, and

were:

Seated (left to right) Harold X. Schreder, Execu¬

We

are

certain

those

birds

but straight-shooting adversary!

realize

they have

a

hard hitting

.

\

32

y

Continued

from first

.investing in common stocks to an
increasing extent? Why has the
Legislature liberalized investment
restrictions several times so that

page

Common Stocks Are Respectable
3.45%;
preferred stocks, 3.80%; and com¬
BAA

comments

Some

_

yield

that

on

hierarchy might be made.
One
item worthy of mention is the fact
fourth

that

grade

bonds

ration

than

more

1%

of

slightly

only

yield

Vz

BAA corpo¬

or

than

more

AAA, or highest quality corpora¬
tion bonds.
I feel that this small
increase

in

yield

the relatively
in risk which is

for

recompense

increase

large

involved.

inadequate

is

notice

Also

U.

that

savings bonds today provide

S.

rel¬

a

atively attractive yield, and here
the Series H bonds are worthy of
mention.

They are purchased at
be redeemed at par dur¬

par, may

ing their life, and they mature at
par in nine years and eight months
after they are issued. If they are
held to maturity they provide a

attractive yield equivalent to
compounded" semi - annually.

very

3%

will

You

that

note

is

and

obtainable

the

on

grade

highest

corporation bonds. In addition the
bond

H

Series

attached

has

This

it.

to

no

price risk
is particu¬

larly relevant today when a pos¬
the

rise in

sible

interest

rates

have the

level of

general

during 1955 would
of decreasing the

effect

prices of high grade bonds,

par¬

ticularly long-term bonds. More¬
over, a few weeks ago the Series
K bond

made eligible for pur¬

was

chase

by personal trusts as well
by individuals.

as

As

many
know, marketable
bonds of high quality tend to fluc¬
tuate in

price in the opposite di¬

rection

with

changes in the
general level of interest rates. At
the

any

bben

result

interest rates
and as'

time

present

have

high

marketable

S.

of

profit in their in¬

a

investors

astute

Many

switched

U.

t h e-3%s

bond,

1978-83, have
vestment.-

have

grade

the

of

owners

government

out

that

of

long-

term

government bond issue and
into something like the Series H

savings

bond

the

eliminate

to

price risk which is inherent in a
long-term marketable obligation.

General Motors

as

$3.75 pre¬
Westinghous'e Electric

or

3.80% preferred, yield today 3.7%.
The
yields
on
common
stocks

from

range

ing

upon

stocks

to 6%,

zero

depend¬

the individual issue. For

that

have

factor to them,

high

a

such

growth

Travelers

as

Insurance, Amerada Petroleum
add International Business Ma¬
pod

yields

the

chines,

a

as

The

such

as

to

of

growth

stocks

to

purchase
first

the

for

time.

Third, also in 1952 the Teachers
Insurance

&

Association

Annuity

formed CREF which is a corpora¬

selling deferred annuities to
college professors. The funds
turned

are

them

to

over

for investment are in¬
100%
in common stocks,

year

vested

ises to pay him a

not

so

annuity buys

your

value

This

so

plan

unit

the

of

time

the

at

units and
depends

many

the

of

value

the

upon

stocks

you

dollars of income on

many

retirement but
the

fixed dollar in¬
In
CREF,

retirement.

at

however,

common
retirement.

of

worked out

was

very

carefully, and in fact, they had to
get the law of New York State
changed to permit this legal re¬
insurance, company

serve-life
allowed

be

in

invest

to

Chemical

addition we have
seen the large pension and profit
sharing plans of our large cor¬
porations invested to an increas¬
ing extent in common stocks.
in

Fourth,

Fifth,

the investment

also

com¬

panies, both the closed-end
panies

the

on

New

com¬

York

Stock

Exchange and the unlisted mutual
funds, are investing increasingly
in common stocks. For example,
at

the end of

for the first

3%

the same
stocks enjoyed an

year

of

noted

During

5.54%.

As

time.

common

yield

average

we

earlier,

high grade corporation

bonds to¬
day still yield only 2.90%.
this

But

current

advan¬

yield

tage of stocks over bonds was not

1929, for ex¬

always the case. In

corporation
33%
more

high
grade
yielded
over

ample,
bonds

in

Even

stocks.

1953, Tri-Continen-

present changed level of bond
interest in their investment plan¬

the

must recognize
that high grade bonds yield less
than 3% compared to a yield of
414 % as the average yield on in¬
Today

ning.

dustrial

stocks

second

shown

have

appreciate

place,

over

time.

If this

chart

from

tendency to

a

long period of

a

presented on a
the present

were

1900

common

to

date you could see that although
common stocks fluctuate in price,
the

nevertheless
is

indisputably

chased

had

the peak

at

in

1929,

be

higher

trend

long-term

if

Even

upward.

stocks

common

been

pur¬

of the market

nevertheless
today than they were
would

they

then.

that

invest¬

urging

reason

common

stocks is the fact

have provided a good
protection against in¬
in the cost of living. This

they

of

measure

creases

proximately 80%
invested

sets

in

of its total as¬
common

stocks

compared to a-total of only. 11%
real

estate

and

bonds.

theless it has done

much better

a

job than has been done by bonds
or annuities which are payable in
a

fixed number of dollars.

Furthermore, the Securities and

Trust, the largest unlisted invest¬

Exchange

ment

been in existence for over 20 years

company,

had bonds aggre¬

gating about 1% of total assets at
the end of 1953 compared to 97%
of

in

assets

common

college

Moreover,

also realized

have

stocks.

.

endowments

the advantages

of common stocks,

the

1952,
these

and as of June,
following colleges had
in

endowment

their

of

percentages

total

stocks:

common

it

and

in

Commission

has

done

making

securities

an

has

now

excellent

for

which

one

in

have confidence. The full dis¬

can

information

of

closure

elimination

of

the

facilitated

have

former

the

the

and

abuses

trading

of

securities, the formation of new
companies and corporate reorgan¬
izations. Another factor is the fact

%
Amherst

that

52
59

Brown

55

Harvard

stabilize

53

the

economy.

example, in 1954 there was
beginning of a recession in

business.

University of
Pennsylvania

59

Princeton

53

Trinity College

69

However,

ment acted

the

Govern¬

promptly. Through its

monetary
and fiscal policies it
decisively and the recession

acted

Dye,

One

comment

last

investors

tional

is

was

shortlived.

very

institu¬

rediscount rates, open

current

on

the

Changes in
market op¬

2.75%.

posed

to

panies in New York State. Under

erations, changes in tax policy and
changes in security restrictions all
prevented the decline in business
from
snowballing
into- another

this

1932 type

see

have

an

yield

average

of

only

By contrast you could go
the mining industry and buy a

stock

such

which

as

pays

a

Kennecott

dividend

Copper,
of

$6

a

share and sells for about $100 and

thereby provides

a

yield

of 6%.

The average yield on stocks to-

ctoy for industrial stocks is about
4,25%.

This still represents

stantial

vield

Lends
itoove

differential

on

high

which
was

grade
as

a

between

only 2.9%.




annuity plan being

pro¬

by the life insurance com¬

arrangement

life

insurance

agents only would be permitted to
sell this contract and the premi¬
ums

which

were

paid to

the in¬

by the annuitant
would be invested 1 CO % in com¬
surance

mon

company

stocks.

helped

Common

Why
come

have

Yields of

common

stocks

Why

managers

stocks

become

have

as

to how to

that information and

be¬

we

have

the securities markets. All of these

these

factors,

money

making

are

of

has

which

improved techniques for analyz¬
ing and appraising securities and

Stocks

common

respectable?

professional

factor

is the fact that we
vastly improved in¬
formation on companies. We have
now

I

and when the
principal amount

$1,000 returned to him also has
purchasing power than the
cor¬

poration.

stock invest¬
exclusion

dividend

credit

dividend

today

which

factor

the

is

income

made

now

return.

tax

other

that

feel,

common

have

resulted

in

stocks respectable

con¬

thesis

my

have

stocks

common

become

now

respectable. The first ex¬

is that of the Harvard
University Endowment which has
certainly had an enviable finan¬
cial record. In 1932 at the depth
of
the
business
depression and
ample

after

their

of

lost

had

stocks

common

nine-tenths

since

value

invested in

was

stocks

only 12.4%

to

common

of the total

University Endowment. Of course

they had known what

we

know

today they would have all of their
Endowment in

that

cause

stocks be¬

common

the

was

of the

bottom

stock market. By contrast,

in 1952
University had 53% of its

Harvard

in

Endowment

This
to

emphasis

in

shift

is

stocks

common

stocks.

common

dramatic

representa¬

tive of the increased respectability
of

stocks today.

common

stocks derives
from the study made by Professors
of

common

Eiteman and Smith at the Univer¬

sity

Their study

showed that

14-year period regular in¬

a

in

vestments

urging the

to

the

stocks

1937

from

was

bias

selected at

were

each

date

a

and as the

year,

put

the
poorest
possible."
The
results
showed that on Jan. 15, 1950, the
designed
showing

to

facts

and

tional
and

are

ingly known, investment in com¬
mon
stocks
today
is
becoming
more
and more respectable than
before.

ever

There remains

mention,
stocks

if common
respectable to purchase,
that

and

are

how do you do

there

is,

it? It

two ways

are

final item to

one

seems

to me

for the aver¬

the long-term
advantages of common stock in¬
vestment. One is to participate in
the monthly instalment plan on

age

investor to

through

well as

tioned earlier, as

and profit

growth of pension
sharing trusts, mutual

investment

companies, etc. The Trust Depart¬
ment of a commercial bank can
tell

the name of a good in¬
advisor who will help

you

vestment

with your own investment
for a minimum fee. As a

program

of fact,

the customary fee

investment

counsel service is

matter
for

of the principal
In other words,
with an account of
say $100,000, his annual fee to an
investment advisor would be only
Vz

only

1%

of

amount per year.
for

person

a

$500, and as that is a tax deduct¬
ible item to him the real cost is
much less.

commanding reason

Perhaps the

professional investment help is
the fact that the market has be¬
come selective to a degree that is
realized by few laymen. For ex¬
ample, in the last year and a half
the stock market, as a whole has
been rising as represented by the
usual
averages
of
the market.
However, electrical equipment
stocks have on the whole moved
for

market as a
time soft drink

the

than

faster

up

whole. At the same

approxi¬

im¬
much nor going
down very much.
On the other
hand, the stocks of the ethical;
drug companies have tended to;
decline in price. For example, the
proving

very

recent

from-

years

in
price of $-33!

Davis declined

of Parke

stock

neither

horizontally,

mately

a

price of about one half of that'
relatively short period oftime.
This selectivity, though, is,
a

a

evident not only

in comparing one

another, but-

industry group versus
the

industry arid in the same'

same

line

sales

the

Ward

Co.

&

in

were

Montgomery

of

were

1947.

example,1 in*

For

work.

of

1954

companies in-

comparing

in

even

less than

in 1954 had

Sears Roebuck & Co.

$1,000,000

sales

which

more

than they were-in

were

over

1947.

seems

to me thatdn this mar-;

today

It

which is increasingly i
the actions of profes¬

ket

affected by

would \
professional;

sional investors, the layman

to

to engage

well

do

a

help him, and your bank is a
place to go for advice on

good

where to find

a

professional

good

counsel.

investment

With American Sees Corp.
(Special

reap

Bill

D.v Aiken,'

Fla.—Byrd

Clark,

D.

Chronicle)

The Financial

to

MIAMI,

Charles H. Couey,

S.

S. Cobb,
Robert H. Kite,

James

Rosasco; III, Richard

the New York Stock Exchange. In
this arrangement an

Silvers, Jr.,* George A. Tyler,

little

as

his

of

stock

putting $40
mon

as

a

stock

of

investor

$160

own

may

year

a

choosing

in
by

quarter into a com¬
his own selection,

broker

who

is

Reinholdt & Gardner Adds

is

which

my

is

available

brochure

a

from

your

suggestion would be to utilize
of

an

now

are

more

with

Charles K.

—

&

Reinholdt

400 Locust Street,

Gardner,

members of the

New York and Midwest Stock Ex¬

changes.

C. G. George & Co.

investment

(Special

counsel. Today the securities mar¬
kets

Chronicle)

Financial

Shand, John Terzian, Gustave L.

describing it. For people
can
invest larger amounts,

services

The

Weinstock and Eugene Yalem are

of

broker

the

to

LOUIS, Mo.

the

member

there

and

(Special

ST.

Exchange will be

a

glad to help him with this. The
plan is designed for the small in¬
vestor

Securities Corporation.

can

one

New York Stock

and

Philip P. Vitsky are with Ameri¬

of the closed-end in¬
vestment companies-listed on the
New York Stock Exchange.
Any
perhaps

they

On the other hand,.

William

invest

the

important through

more

liberalization of the laws we men¬

half times

a

cash investment. As
becoming increas¬

original

these

received

have

almost two

back

his

make

would

investor

more and more with
professionals as the institu¬
market is becoming more

competing
other

in

it — "This study has
deliberately and consistently

been

investment counsellor is the
the investor today is

that

fact

to

1950.

authors

an

sional

stocks

Every effort
avoid any possible

through
made

of
is
utilization of a.prpfes-

entirely different set
securities. Another factor that

12.2% com¬
This
study

common

yielded a return of
pounded
annually.
covered
a
period

fixed

en¬

was

Stock Values and

"Common

Yields."
over

which

Michigan

of

titled

bracket might

tax

high

a

stocks have moved along

My last example of the respecta¬

bility

in

want

1929, the Harvard University En¬
dowment

if

another person who

whereas

come

you

will

examples
support of

the

clude

maximum-current, in-;

a

the

other

One

who

depression.

other

respectable

use

The Higher

the

mentioned

One

improved knowledge

sub¬

corporation

we

variable

less

$1,000 he had loaned to the

a

For

the

his in¬

and

less

power

51

Dartmouth

people today have confidence
Government's
ability
to

the

in

has

that

meant

less

job

marketplace

the

market

a

has

bonds mature the
of

of the dol¬

power

income

purchasing

and

Another
ment in

protection has not been 100% by
any manner of means but never¬

Corporation, the largest invest¬
company listed on the New
York
Stock
Exchange, had ap¬

bondholder has found

terest

stocks.

common

the

In

we

ment

are

Union Carbide & Carbon, we
these
common
stocks
today

common

1934-36,

tal

common

&:

to

common

stocks,

them

to

below

high grade corporation
bonds yielded more than common
stocks. Apparently many investors
have
not
adequately recognized

come

the

Two
average

dividual's premium
a

has

3.98

the

1940

than

is invested in
customary annuity which prom¬

purchasing

lar

declined

that

fact

the

Federal

yield
high grade corporation bonds

was

The

bonds.

from

come

available to the stockholder in his

5.15

1930-1939

During

tion

Dow, duPont, Eastman, Monsanto
cad

stocks

common

is

common

might

individual. Thus one person

stocks has been the
long-term decline in the real in¬
ity of

and

4.88

never

demand

ment

4.49
_________

1920-192.9

on

April,

in

Cornell

company

Allied

1900-1909
1910-1919

up

they

encourages common

%

..

which

extent

an

enjoyed before.
Also increasing this respectabil¬

follows:

as

in New York State.

1952, New
York savings banks were allowed

other stocks that
potential

been

investment

the

high

decades

By

grade corporate bond yields have

investments can be in¬
non-legals—that is, in

Second,

declined.

have

yields

bond

because

but

creased

stocks.

common

the

chemical

stocks,

in

stock yields have

because

not

This is true
in¬

factor.

significant

a

to
trust which is restricted

legal

chemicals, are also on
the low side. For example, taking
six

the

this compounding
is

period of time

provides that

now

a

vested

1.5%.

on

ways.

of

low,

very

those

yields
a

are

of

than

today less
have

35%

matter of fact the yields

three

op' all

some

yield and over a

better

a

of the return on the investment

Likewise, Massachusetts Investors

Preferred stocks of high quality
ferred

law

The

in--cash,

The Yield of Preferred Stocks

such

restricting

of trust funds

rising slightly

marketable
bonds have declined in price. Most

a

at

return

stocks

that common

whereas the remainder of the in¬

marketable government bond
is also higher than the yield

any

ments

each

yield than is obtainable today on

in several

look

can

changes in the law and practice
regarding institutional investments. First,
in 1950 New York
State liberalized the legal require¬

which

higher

a

stocks have

respectable. We

demonstrate this

let's

of the

invest to an

may

is

One

sons.

some

common

become

First,

Common

look at

us

why

reasons
now

stocks, 4.25%.

mon

Now let

in¬
creasing extent in common stocks?
There are, of course, several rea¬
institutions

Investment

Stock

bonds,

corporation

Reasons for

Some

corporation bonds, 2.90%; U. S.
savings bonds, 2.76% to 3.00%;

.to

February 10, 1955

Thursday,

Chronicle...

The Commercial and Financial

(723)

to

PASADENA,

selective than they

Calif.
&

Formed

Chronicle)

The Financial

—

Co.

Carlton

has

been

been and the selectivity

Greer

evidences

itself not only

formed with offices at 2025 North

securities

of

have

but

ever

even

within the
It

seems

different
between

between

industries

Fair

companies
a

same

to

industry.

me

the

investment

George

Oakes

Avenue

securities business.

Carlton

to engage

in

Officers are

Greer George,

President;

Harry R. Tremain, Vice-President;
program must be personalized and
tailor-made to suit the particular and Solomon M. Gilens.

\

Volume 181

Number 5402... The Commercial and

Financial

Chronicle

<729) 33

I

^

Continued jrom page 16

As
of

result of

a

$5,000,000,

National

'News About Banks and Bankets

the

Bank

18

from

dividend

Northwestern

of

Minn., increased
Jan.

stock

a

Minneapolis,

its

capital

$5,000,000

of

as

to

$10,-

000,000.
of

Western

Nejv York, a Marine
Acquisition of the

Midland bank!

stock of the Bank of Gowanda

Marine
would

by.
Corporation for

Midland

be

necessary forerunner
of merging of the two institutions.
Additionally, approval would be
a

needed from the

Bank

of

Under

the

receive

each

and

Gowanda

shares

of

Bank

total of 64,000

rine Midland

Gowanda
and

in

New

York.

Dec.

Marine

stock

of

for

,

Gowanda,

shares of Ma¬

stock.

The Bank

established

was

addition

its

to

office operates a

on

would

of

Corporation

share

a

they

in

of

1881

Gowanda

branch in Eden,

Deposits of the bank
1954 amounted
to

31,

$9,106,030

and

that time

total

resources

$9,876,894.

were

at

Stanley

A.

Neilson who has been promin¬
ent in the New York State bank¬

ing fraternity, is
of

the

New

past President

a

York

State

Bankers

Association.

Completion of
contemplated
acquisition

the
and

merger woud increase the number

of

communities

Marine

Trust

served

by The
of West¬

Company

New York to 24 and the

ern

ber of offices to 60.
dated

the

company,

Total consoli¬

of

resources

num¬

the

parent
Midland

Marine

Corporation,
on
Dec.
31,
1954
were
$1,775,688,962. The acquisi¬
tion

the

of

would

Bank

increase

banking
number

of

the

offices

by

138

served

*

*

of

meeting

66.

Terms
not

Board

of

absorption
Penn

Conn.,

on

officers

new

elected: Herbert E.

were

the

Carlson,

agreement

were
;

-

its

and

will increase Central-

assets

over

to

nearly $232,-

Wyoming, located at 5th St. and
Wyoming Ave., was established in
1923

under the leadership of Mr.
Krug, who has been its President
that

become

time.
Mr. Krug will
Vice-President of Cen¬

a

tral-Penn,
Wyoming

Wililam

K.

Brandt,

Vice-President,
and
Russell E. Roberts Treasurer, also
will be officers of
Central-Penn,
stationed

in

the

Wyoming office.

The announcement stated that the
entire present staff of

Wyoming

will

be

retained.

Messrs.

and

*

At

of

meeting

a

*

Board

of

Managers of The Montclair Sav¬
ings
held

Feb.

on

Kenneth

the

to

New

A.

the

of

Accounting Firm of
& Co., is also a

Group Securities Inc.,
Trust

Investment

of

excess

Carl

Brick

Young

Director of

in

J.,

elected

were

Mr.

Board.

N.

Harry Brick and

8,

Henke

York

Arthur

an

Montclair,

of

Bank

Zeiss,

Mr.

Henke's

assets

record

of

numbers,

the

more

700

having been present at
meeting held Jan. 25 in the

the

Statler.

tors.

25

a

Shareholders
board

man

Included

was

direc¬

of

one

di¬

new

Jewel¬

director of the Bank of

Montclair.

tional Bank of Trenton, N. J., was

increased, effective Jan. 17, from

$240,000,
dividend of $20,000.
At

its

by

annual

a

stock

rrteeting

on

Jan.

Reading Trust Co. of
Pa., promoted four of¬
ficers to new positions. Harold C.
Wanner, formerly Trust Officer,
was
promoted to Vice-President
and
Trust
Officer;
George
N.
the

24,

Reading,

Assistant Treas¬
urer, was advanced to Vice-Presi¬
dent; Harold A. Stoudt was made
Assistant Treasurer; and Norman R.
Yeager,

former

named Assistant Trust
Officer. All officers and directors
were
re-elected. Samuel R. Fry,
Miller

is

was

Lester
F.
Grieb,
Vice-President; Law¬

President;

Executive
rence

S. Hoffman,

Herbert F.

Vice-President;

Dunn, Vice-President;

Manwiller, Secretary and
Assistant Trust Officer; Eugene P.
Joel H.

Schaeffer, Treasurer.
*

to

the

*

Philadelphia

"Inquirer" of Jan. 28, C. A. Sienkiewicz, President of the
Penn

Central-

National Bank of Philadel¬

phia and John B. Krug,
of the Wyoming

capital

ap¬

171,875

stock

at

President

Bank & Trust Co.




20.

the

to

up

,-'h

.

Under
the

the

Industrial

Dallas,

at

Bank

(capital

National

of

Bank

of

Texas,

(capital

At

22.

$$200,000)

with

at

Jan.

the

the

close

the

consolidation

share

for

shares

of

record

Shareholders

Feb.

16,

one

approximately

held

1955.

of

four

Jan.

have

subscribe

to

new

19,

until

the

for

ad¬

of

of Cleveland heads

underwriters

unsubscribed

to

a

group

purchase

shares.

Total

standing shares after the

any

out¬

is¬

new

will be 875,000 with par value

stock

at

Sale of the additional

$32.50

share will in¬

per

the

crease

capital stock by $2,750,00, surplus by $2,750,000, and
undivided
profits by $85,937.
Capital funds of $25,100,921 at
31, 1954, adjusted for the
addition of $5,585,937 will amount
to

$30,686,859.

sharing

plan

The

new

profit

approved

ports

of

business

effective

the

date

of

consolidated

divided into 50,000 shares of com¬
mon
stock
of the par value of
$10 each; surplus of $200,000; and

undivided

profits of not less than

$55,000.
Ten
of

the

Dallas,

National

First

have

Texas,

their

active
under

of

members

banking

the

Bank

brought
to

careers

institution's

the

a

re¬

than 300 years.

more

George

Waverley

Edgar L.

cer;

They

Briggs,

Senior

and

Flippen,

are

ViceOffi¬

Trust

Chairman

of the

Board; Wilbur W. Hawkins,
ladies' teller; Mallard Hulsey,

guard;

Mrs. Belle Mecklenburg,
telephone
operator;
Ray

chief

Nesbitt,
Vice-President;
Tilden
Rudd,
Supervisor, Savings De¬
partment;

Mrs.

Lela

in
charge of general files; J. C. Tenison, Vice-Chairman of the Board;
and E. T.

First

Taylor,

Ward, Assistant Cashier.

National

stockholders

at

their annual meeting Jan. 11 paid
tribute to the retiring staff mem¬
bers

in

them

mended

for

service.

which

loyal

each

her

or

com¬

and

de¬

Previously

they
dinner,
presented with

guests of honor at

at which

his

resolution

a

was

choice

of

a

sterling

a

silver serving tray or a gold wrist
watch, appropriately inscribed.
Mr. Briggs,
long-time head of

First National's Trust Department,
who has served the bank nearly
35 years,

has been elected Honor¬
Senior Trust Officer. In 1919

ary

Mr.
of

Briggs

became

Insurance

Texas.
1920

After

Commisioner

and

Banking

coming to Dallas in

Vice-President

as

Officer

of

for

the

old

and

City

Trust

National

E.

'

'

of

as

Jan.

14

re¬

amount.

'

#

❖

000

21

Bank

to

Billings,

capital

Mont.,!

from

$275,-

$325,000, the additional
having resulted from a

$50,000
stock

of

its

Na¬

dividend

of

*

that

:!:

amount.

South.

When

formed

in

of

part

1930

the

the

that

bank

*

Promotions of nine members of
the

staff

of

National
were

the

Anglo

Bank

of

California

San

announced

Francisco,

Jan.

on

27

Paul E. Hoover, President.
Van
Ness
Avenue

office,

San

Francisco, Carl J. Tietz lias

been

promoted to Assistant Vice-Presi¬
dent

merger

that

National, he

con¬

Manager. At the head
Philip S. Dalton and Jess

E.

Wilson

have

Leroy

named

Vice-Presidents,

Benge,

William

A.

McMullen
have

been

James

and

been

Wesley T.

appointed

Cashiers.

At

James

to

employees with
of

bank

that

service.

Loring
the

provide

L.

plan

five

years

or

President of the

Gelbach
would

stated

not

only
for the

opportunity
participate directly

an

bank's staff to
the

in

for

profit of the

business

also

would

an

serve

employees

creased

to

business

as

strive
and

but

incentive

for

profits

in¬

for

the bank.
*

years

and

Wilson

Assistant

Keeley,

A.

sistant

the

office,

same

formerly As¬
Officer, has been

Trust

named Assistant Trust Officer and

Assistant

Secretary.
i|:

$500,000

was

made

to the capital of the Farmers &
Merchants National Bank in Ben¬

Harbor,

13.

The

Mich., effective Jan.

capital was thereby en¬
larged from $250,000 to $750,000
of which $250,000 represented a
stock

dividend, the further $250,-

000 addition

having been brought

about by the sale of new stock.

of

the

Gulf

28, to consider
The

First

Pomona

Bank.

National

of

by

California

has

merger

the

boards

of

the respective insti¬
previous item on the
appeared in our issue of

tutions.

of

A

matter

Jan.

the

proposed

approved

directors

Bank

California Trust

into

n y

The

been

the

and

Com p a

proposal to merge

a

13, page 175.

The First Na¬

tional Bank of Pomona's total de¬

posits

$30,664,239
at
the
Its head office and two

were

end.

year

offices

branch

located

are

in

On the effective date

Pomona.

Mr.

Tenison

Chairman

banking
some

at

old

the

City

runner

retired

the

years

Dallas.
was

has

career

49

ended

of

National

Board

which
and

in

1950.

Vice-

as

after

a

spanned

began

Raymond

merger,

E.

ident of The First National Bank

Vice-President
California

owned

Bank

entirely

and

Company
California

by

conducts

business at

trust

California

of

Trust

exclusively

its

office

in

a

the

Head Office

Building of California
Bank in Los Angeles. By merging
the company into California Bank,
trust facilities, it is stated, will be
more
readily available for the
of

the

bank's

gained

as

National

a

in the

page

Bank,

a

fore¬

of the First

National, dur¬
school vacations.
As a
man
he worked full-time

ing high
young

for

the

Oilfields

the

the

Brea,

business

Natioinal

Calif.,

Brea,

Bank

bank

Feb.

on

Joseph

dent

of

Bank

since

the

of
in

5

the

as

opening for business
7.

the
on

Witten, Presi¬

E.

Oilfields

National

will continue in

1936,

charge

as

California

a

Vice-President

Bank.

Cashier,

E.

R.

of

Barnes,

has been

named

Vice-President, and C.
J.
Schwartz,
former
Assistant
Cashier, will be Assistant Man¬
ager of the Brea Office.
sj:

The

Board of

Federal

-is

*

sistant

The

He

M.

the

Smith

of

Cashier, and Homer

B.

named

was

Assistant

also

declared the

close of business Jan. 21.

In

com¬

menting on the dividend, Presi¬
dent Roy A. Britt stated that the
rate of 37 % cents
the

on

$10

share is based

a

value

par

stock

now

outstanding after the recent twofor-one stock split. This is
equiv¬
alent to the previous 75 cents a
paid

during

of

1954

value stock then
!ii

James

A.

the

last

the

on

two

$20

par

outstanding.
*

.-it

Bacigalupi,

Jr.,

sistant Vice-President of

As¬

Crocker

First National Bank of San Fran¬
cisco has been

appointed

tising

Manager

announcement

Adver¬

according

to

an

Jan, 31 made by

on

J. F.

Sullivan, Jr., President. The
advertising and business develop¬
ment activities

general

are

of

Hart

Vice-President

ordinator.

II.

and

Advertising

Francisco, Oakland

Co¬

in

San

.

and the bank's

San Mateo office will be

new

der

under the

now

direction

Tantau,

Mr.

R.

un¬

Bacigalupi's supervision.
:jt

Stanley

three

«(

of

Dollar

was

one

of

directors elected to the
First Western Bank

new

board

the

and Trust

Company of San Francisco, at the annual meeting of the
bank's

T.

stockholders

J.

Coats,

told the First
shareholders
that
the
branch

Jan.

18.

of

on

the

Chairman

Board,

Western's
statewide

banking organization

cre¬

ated by First Western

during 1954
steadily expanded Per¬
mission already has been
granted
would
to

be

the three

open

said, which will

new

raise

total offices to 57.

In

offices, he
the

bank's

addition

to

Mr.

Dollar,
the
new
directors
elected at the
meeting were C. T.
Chandler and
Oscar
H.
Keller,
both
Vice-Presidents of Trans-

america

Corporation.

is the

son

Bank,

on

Mr.

Dollar

of

Captain Robert Dol¬
lar, who was an important figure
in the early life of First
Western's
predecessor, The San Francisco
whose board of directors

he also served.

board

made

The First Western

five

executive

pointments at the Jan.
At the

bank's main

Francisco,
David

A.

18

ap¬

meeting.

office

in

San

William H. Pratt and
Healey was named As¬

sistant Vice-Presidents and Arthur

Governors

of the

Reserve

P.

Fishe

Cashier.

was

At

the

named

of

and Robert A. Smale

Francisco, Calif.,

and

the

office,

Assistant

bank's

Central

J.

G.

Oakland

Updegraff
named

were

Monterey County Trust & Savings

Assistant Vice-Presidents.

Bank of

Pratt, Healey and Smale have just

Salinas, Calif., both State

members

of

the

Reserve

System,

joined

000,000,

Presidency in 1944.

Robert
to

directors

The former head

Vice-President
election

W.

posi¬

regular quarterly dividend at the
rate of 37V2 cents a
share, payable
Feb. 1, on stock of record at the

Trust Company:

and

his

the

Secretary.

end

to

James

from

position

Newman

of the American

Cashier

and

Secretary to As¬
Officer; Robert G.

and

Assistant

charter and title

previous

Junior

Winchell,

Depart¬
Vice-President.

up

elected

were

National
as

to

C.

Escrow

Rex

Trust

Brower

merged

1920 and served

the

System
reoort
that the American Trust Company
San

Skidmore,

Cashier

Junior
E.

moved

City National from 1908
until 1916.
He joined the Dallas
Bank in

of

to

Wood

cus¬

fornia Bank, it was added, would

formally acquire

W.

I.

was

Junior

Smith,

of Pomona, will become a director

and

of

tion of Assistant

,

Bank.

Bartlett

position

••It

the

and

experi¬

the

Assistant Trust Officer and

Manager

Chairman of the Board and Pres¬

First National Bank

His first bank

from

of

Assistant

First

R.

the

Assistant

quarters

Board

of

to

Department,

Vice-President; Roy

Angeles, has been called for Feb.

is

to

Vice-President;
from

:■<

special meeting of the share¬
holders of California Bank of Los

former

*

addition

President

as

and

Robert

share

!j:

A

Company and the At¬
lantic Insurance Company. He was
elevated
to
Chairman
of
the

ence

A

Vice-President

as

Insurance

in
*

as

M.
Crane,
Charles L.

Dacgling,

Feb.

tinued

elected

was

Vice-President; Ken¬
Moore, Junior Vice-Presi¬

dent in the Cashier's

and

office,

ing President of First National in
1944, Mr. Flippen served for 12

more

by

At the

Brea Office of California Bank

It

created the First

announced:

of

neth C.

Marvin

Trust Officer. Previous to becom¬

customary

the

were

Lindstrom, Junior Vice-

President and Manager of the Van

ment

convenience

in

O.

dent.

the Montana

tomers at the branch offices. Cali¬

departments

W.

elected
As of Jan.

partment of that bank, one of the
such

*

Angeles, Calif., the following

❖

provides cash payments for all
employees and deferred payments

the

takes

of

Bank, he organized the trust de¬
first

Los

promotions

position
Bank

*

Nuys Branch,

*

National

Colo.,

*

^

At
a
recent
meeting
of the
Board of Directors of the Citizens
National Trust & Savings Bank of

banker.

the
by
place of
Christmas bonus.

shareholders

O.

branches

as

by the continuing bank.

a

Assistant

*

veteran

late

Bank will be operated

capital of $1,500,000 Head
Office, to Vice-President;
against $1,000,000 previously, the and E.
R.
Tracy, Junior Vice$500,000 increase having resulted!
President, Administration Divi¬
from
a
stock
dividend
of
that
sion, Head Office, to Vice-Presi¬

was

have, it was an¬
capital stock of $500,000,

nounced

were

ratio

the

Dallas

jjs

,

First

Pueblo,

Industrial

would

holders

the

The

the Oak Lawn National

consolidated

bank

title

and

National

Dallas,

$300,000)

voted

in

«

„

*

charter

the

Clearing House Association.
'

,

tional
#

of

Dallas,

past President of the Dal¬

increased

share, and the adop¬
tion of a profit sharing plan for
all
Employees. The new capital
shares' ivill be offered to share¬
per

ton

According

were

of

Dec.

*

*

*

of

of $16 each.

capital of the Prospect Na¬

to

shares

$32.50

sue
♦

#

meeting

of the issuance

ditional shares. McDonald & Com¬

and Silversmiths of Montclair.

♦

the

at

new

Motch, who died
important actions

Other

pany

was

$220,000

6.

is

ers

The

Jan.

Franklin

of

He

a

E.

and

Inc.

Jan.

President

meeting

in

Henke

$80,000,000

Inc.

President of

with

bringing

$3,600,000,
$3,000,000,
the
increased
amount having
become effective

bank

proval

the

in

capital

of

taken
*

*

amount

of

son

pioneer

from

tional Bank of Cleveland attended
the 65th annual

Mr.

Trustee.

las

that

Shareholders of Central Na-, tirement plan after serving a total

R.

a

resulted

bank's

close

:J:

rector, Samuel S. Kaufman, Presi¬
dent of the Campus Sweater and
Sportswear Company. He replaces

Harold N.
was elected

has

in

*

of

dividend

a

re¬

Vice-Chairman

the

He is

stock

staff

Wyoming's tradi¬
neighborhood service.

is

Tenison,

Key West, Fla.,

dividend
of
$600,000
by the National Bank of
Commerce in New Orleans, La.,

Krug

Vice-President; Norman E. Stein¬
berg, Assistant Secretary; William
Synnott, Auditor.
Williams, an attorney

at

declared

tion to maintain
of

Bank

stock

A

he

as

he

having enlarged the capital as of
18 from $100,000 to $400,000.

emphasized Central-Penn's inten¬
tion

August,

Born and reared in

#

!|i

Seinkiewicz

last

Jan.

$258,000,000

000,000.

since

National
a

consolidated
Board.

:[!

$300,000 has been
to the capital of the Florida

made

Committee
in
1953.
When
the
Dallas National and First National
turned

❖

•

,

An addition of

*

to

deposits

elected

Britain,

following

of

Wyoming, at
year-end had assets of $13,064,000
and
deposits of $12,057,000.
Its

Co.

New

approval

throughout the city.

Hotel

of

by

Acquisition
of
Wyoming will
give Central-Penn 12 offices

Trustees of the New Britain Trust
Feb. 1, the

Wyoming

announced.

than

the

of

by
Wyoming
stockholders
and
regulatory authorities. In part the
"Inquirer" also said:

of

the

and

Midland banks to
*

a

number

to

purchase

Gowanda

communities

Marine

At

of

agreement

Central-Penn, subject to

the

from

stockholders.

proposal

eight

Midland

or

banking supervi¬

authorities

sory

also of that city announced
on
Jan. 27 that the boards of the two
banks had approved an

vanced to Chairman of the Board
and Chairman of the Executive

to

the

office

was

ad¬

terey

as

and

of

Jan.

3,

branches

County

Trust

under

of

the

&

the

Mon¬

Savings

pointed
of

First
out
1954

Western.

that

Messrs.

Mr.

resource

Coats
at

approximated

the

$800.-

deposits aggreated $745,-

000,000, and real estate and

Continued

on

com-

page

34

-

34

The Commercial and Financial Chronicle...

(730)

Continued,

from

33

page

Bank of America Group

News About Banksand Bankers
x
$342,-' serve System and The United
000,000. The bank has changed its States National Bank of Portland,
fiscal year to end Dec. 31 from
Ore.,
have
merged
under
the

mercial

loans

aggregated

charter

June 30.
ft

To

additional

provide

funds

to

States

ft

ft

keep

capital

29,

main

1954.

offices

and

growth of the bank, shareholders

bany

of Citizens National Trust & Sav¬

of

ings Bank of Los Angeles, Calif.,

of

United

The

of

of Portland

National Bank

Nov.

on

title

the

with

pace

and

former

The

the

Bank

Al¬

of

The Commercial Bank

formerly

being offered rights to sub¬

are

scribe to additional shares of
mon

com¬

stock. Shareholders of record

at the close of business

Jan. 11,

Oregon

the

and

branches

ten

operated by The Com¬
mercial Bank of Oregon, will be
operated
as
branches
by
The
United

National

States

from

11

page

Long Beach, Cai. Utility Financing

School District
A

headed

group

America, N.T.

County, Calif., 2lk%
tion

1954, Series A, due March 1,

1956-1975,

yield

inclusive

from

And Atomic Power

by Bank of
is offering

S.A.

&

Long Beach Unified
District, Los Angeles
bonds, Elec¬

School

0.90%

at

prices

to

The

to 2.50%.

complicated designs to obtain in¬

total

charges

becomes

tive sale

machines

The

on

a

Feb. 8.

underwriting

in¬

group

going

and

greater

greater. To fully benefit from this
lower

submitted

charges become rela¬
and rigid under
atomic energy, we will have to
strengthen the demand portion of
our rate schedules as distinguished
tively

the proportion of
for
fixed

costs,

money

operating cost,

must

be

need

made

to

these

maintaining

already

We are
sched¬

rate

our

This
Atomic

high load

a

portion.

pointing

that direction.

ules in

new

around-the-clock.

for

heavier

from the energy

effort

every

use

fixed

As

creased efficiency and higher con¬
struction

winning bid of
100.29%. for the bonds at competi¬

group

<

Bonds

$16,250,000

of

Bank

Continued

Thursday, February 10, 1055

Power

Developments

The
new
Atomic Energy Act
Inc.; Inc.; The factor on these newer machines
are
receiving transferable rights nouncement of the Federal Re¬ Northern
Trust
It con¬
Company;
The presents problems to the trans¬ was enacted last August.
to subscribe to an additional 200,- serve System under date of Dec. 4. First Boston
More and longer tains many favorable and unfa¬
Corporation; Harris mission people.
000 shares of $10 par value com¬
*
*
*
Trust and Savings Bank; Phelps, transmission lines must be built vorable clauses as to the construc¬
mon stock of the bank at $33 per
The
Canadian
Bank
of
Com¬ Fenn & Co., Harriman Ripley & into the electrical system to pro¬ tion and operation of power re¬
share
at
the
rate
of two new
Co. Incorporated; R. H. Moulton & vide transmission capacity as well actors by privately owned utili¬
merce announces the appointment
shares for each five $10 par value
It does not permit owner¬
of T. L. Avison as Assistant Gen¬ Company; Security-First National as reliability and operating flex¬ ties.
shares held. Rights expire on Feb.
eral Manager in charge of the In¬ Bank of Los Angeles; American ibility. Transmission losses, which ship of fissionable materials by
14, 1955. A group of underwriters vestment Division of the bank at Trust Company, San
are already considerable, must be
any body other than the United
Francisco;
headed by Blyth & Co., Inc. will
its head office in Tororato.
Mr. Smith, Barney & Co.; C. J. Devine carefully watched.
States Government.
purchase any unsubscribed shares. Avison, graduated from the Uni¬ & Co.; Merrill
In contrast
to
the
decline in
The Act's first section states:—
Lynch, Pierce, FenSale of the additional shares will
versity *oi Toronto in 1934 and ner & Beane; Salomon Bros. & ton/miles on the railroads we note "It is therefore declared to be the
bring the outstanding stock of the
definite
and
moving
trend policy of the United States that
prioj; to .his recent appointment Hutzler; Goldman, Sachs & Co.; a
bank to a total of 700-,000 shares.
he was Associate Treasurer of the The First National Bank of Port¬ toward an increase in the average
the development, dse?a>hd cop#*
Proceeds, amounting to approxi¬ Sun Life Assurance Company of
land, Oregon; Weeden & Co. In¬ miles each kilowatt must travel trol of atomic energy shall, be*
mately $6,600,000, will be added Canada in Montreal.* He has had
This increase directed so as to
increase the
corporated; Dean Witter & Co.; to reach the load.
to the capital funds of the barrk.
extensive experience
in * the in¬ California
Bank,
Los
Angeles; in miles of transmission line per standard of living and strengthen
Following the financing, the capi¬ vestment; ,field
including "three Equitable Securities Corporation; kilowatt transmitted means larger free competition in private enter¬
tal funds account will be: capital
transmission
investment
years
in London, England, and Laidlaw & Co.
and prise.".
stock ($10 par value) $7,000,000;
previously served- with the De¬
higher losses.
We are not always
In one of its later sections t it
surplus $15,000,000 and undivided partment of Finance.jn Ottawa for
able to use the more efficient ma¬
states:—"Where such conflicting
profit $4,887,263. The bank con¬ several years dpring the-last war.
chines to the greatest advantage
applications resulting from limitedducts a general banking business,
ft
ft
/ ft
even
at
moderately heavy load
opportunity for such license in¬
with a head office in downtown
E.
M.
Gunderson, C. A., has
periods. It is even more difficult clude those submitted
by public
Los Angeles and 35 branch offices been elected a Director of The
to maintain full loads on the ma¬
or cooperative bodies such appli¬
in Los Angeles or adjacent com¬
Canadian Bank of Commerce, To¬
CHICAGO, 111. — On
Monday, chines with a low operating cost
cations shall be given preferred
munities.
Feb. 21, 1955, the Municipal Bond
ronto, Canada.
❖
*
*
during light load periods, when consideration."
Club of Chicago will hold a cock¬ the
"!•
»!•
*!•
capability in low cost equip¬
The
following changes in the
The Act also favors high cost
tail party for members and their ment often exceeds
the load.
D. L. Witter has been appointed
official
staff
of
The
Bank
of
power areas.
In granting a li¬
wives at the Chicago Yacht Club.
This is illustrated in Table III,
Comptroller of The Royal Bank
California, N. A., San Francisco
of Canada, head office Montreal, This is the first time in the his¬
the tabulation which shows De¬ cense, AEC . . . "shall give pre¬
were
announced on Dec. 28.
ferred
consideration
to
applica¬
it was announced recently.
Mr. tory of the club that a feathering troit Edison's system load condi¬
William D. Dockstader, Assist¬
tions for such facilities which will
Witter has been the bank's Chief such as this has been opened to tions before and after the building
ant
Manager
of
the
bank's
be
located
in
high cost power
The
Accountant since 1947.' Establish¬ the wives of the members.
of two large generating plants.
Martinez Office, was elected Viceareas."
Chicago Yacht Club is located at
ment of a Comptroller's depart¬
Studies of the
use
of atomic
President and
Manager of that
Some favorable aspects are as
ment is a new departure for the Monroe Street on the lake front. energy in central stations indicate
office.
He
succeeds
Leroy
W.
on

according

Portland,

the

to

an¬

cludes: Blyth & Co.,

,

.

.

,

.

.

.

Munic. Bond Club of

Chicago Cocktail Party

Beede, Vice-President and Man¬
ager, who retired Dec. 31, 1954.
Mr. Beede was formerly President
of

The

Bank

which

Martinez

of

bank

and

in

foreshadowed

was

the address of James

Muir, Chair¬
man and President, at the bank's
recent
annual
meeting.
"Our
Comptroller," said Mr. Muir, "will
be charged with the duty of see¬
ing that rigid control is exercised

Bank of
California in August of the past
year. At the Seattle, Washington
at all times over our costs."
Office, Jack D. Gnagey was ap¬
Appointment of M. G. Clennett
pointed Assistant Manager.
Mr.
as
Chief Accountant, succeeding
Gnagey. joined the staff of The
Mr. Witter, is also announced by
Bank of California May 13, 1925
the bank.
and has served in various capaci¬
ft
ft
ft
ties in the bank, including Man¬
The following advises have been
ager of the Foreign Department.
At the time of his appointment, he received from N. F. Banfield, Aswas serving as an
analyst in the ssistant Vice-P resident of the
Credit
Department.
Harvey
H. Bishop National Bank of Hawaii
Pasic was promoted to Assistant at Honolulu making known pro¬
Trust
Officer
at
the
bank's motions
and
new
appointments
Tacoma, Washington Office. Mr. made by the directors of the bank
Pasic has served continuously in on Jan. 18: Jan F. Mowat, for¬
the Trust Department since join¬ merly Vice-President, to be Viceing the bank in 1936, with the President and Cashier; Herbert M.
exception of the time he spent in Taylor, formerly Assistant Vicethe armed forces.
President, to be Vice-President;
ft
ft
John D. Bellinger and Robert W.
Following a meeting of the Chatterton, formerly Assistant
to be Assistant Viceboard of directors of The Bank Cashiers,
of California, N. A., San Fran¬ Presidents; and Frank S. Dunn,
cisco, Calif., on Jan. 31, it was formerly Manager, Kailua Branch,
with

merged

was

announced that

will

son

Irving W. Daniel-

join the executive staff

of the bank

Prior

as

Vice-President.

his

to

Vice-President

California,
served

The

as

appointment
of

Mr.

The

Bank

Danielson

Assistant

as

department

of

admin¬

istration at the head office of the
bank of America since
He
as

a

1949.

began his banking career
bookeeper with the Sacra¬

mento office of that bank in 1929.
After serving in various offices
of

the

to

the

in

bank

he

was

transferred

San Francisco head

1946,

office

and

assumed duties as
Assistant Director of Staff Train¬

ing,

position he held until his
appointment in 1949 to the cor¬
poration and bank relations de¬
partment.
a

«

Assistant

be

Carl R.

Cashier.

$

ft

PHILADELPHIA,
Pa. — The
Municipal Bond Club of Phila¬
delphia will hold a luncheon at
the

Union

12:30

League

Feb. 28

on

Hon.

at

W.

Randolph
Under-Secretary of the

p.m.

Burgess,

(for

Treasury

Monetary Affairs)
a brief address. LeighMcllvaine, Goldman, Sachs
Co., is Chairman of Arrange¬

will deliver

and

&

Mr.

announces

W.

join
Jan.

R.

the

that

Cockburn

H.

who

F.

will

19.

"A

branch

Bank

China

Court

of

The

India,

was

Crosby

of

on

on

Chartered

and

Jan. 19 at

Robinson

Road,

Association
TORONTO,

Dinner

Canada

The

—

Toronto Bond Traders Association
will hold its annual dinner March
11 at the

King Edward Hotel.

J. M. Lober Co. Formed
WHITE

M.

PLAINS, N. Y.—James

Lober

has

formed

James

M.

D. N. Silverman

Opens

NEW

N.

gage in a securities business.

AUSTIN, Tex.
formed

business.

to

Southwestern

Investments has been

with

Jacinto

—

offices

conduct

Henry

H.

at
a

1203

San

securities

Moore

is

Opens

SANTA BARBARA,

Calif.

Peter C. W. Patsch is engaging in

Oregon at Hillsboro, Ore., both
State members of the Federal Re¬

at 24 East. Canon Perdido.

a

securities

busines

from

offices

Borut is

will

stay near
for con¬
purposes with a

(3)

The

mission

seven

seem¬

transmission
receive

alternative cost study of

any

clear and

conventional

The

atomic

point

cost

toward

a

studies

who

domestic and

factor

commercial

Fuel costs will become

of

that the

to

coming

"of primary

patents applied for before Sept.
These provisions are con¬

sidered

classes.

fairly uni¬

thrqughout the country. This,

The

invention is

1, 1959.

the

possibility

safeguard against the
of a few companies

achieving

monopolistic

from

is contrary to the situation today.
The fuel cost per million Btu is
8.7c in Texas and 38.8c in Ver¬

mont.

the

in

patent

years,

importance."
The compulsory li¬
censing provisions are applicable

A premium will be put upon
marketing research in order to

load

five

his

receives

to license other
companies to use the patented dis¬
covery—subject to certain pro¬
visos.
AEC must however find

relatively higher

used.
This means the rela¬
tionship of load factor to profits
will be even more important if
utilities go to atomic generation.

form

conceived

mitted to compel a patent owner,

of

fuels

are

the

to

as

vate industry

fixed and rigid cost if atomic fuels

increase

law is restrictive

or executed by pri¬
working under gov¬
ernment auspices or financing, are
non-patentable.
The AEC is per¬

are

fuel?.

conventional

reactors.

New discoveries, if they

patents.

next

and

a

private

such

new

in
nu¬

Charges Will Be More

alternative

may

by

Com¬

Energy

"fair price"
be guaranteed up to
for nuclear fuels pro¬
pay

Patents and Inventions

factors

consideration

Atomic

must

years

duced

ingly must be built at greater dis¬
tances from population centers.
These

may

Nuclear fuels will be made

which

refer to the

I

safety factor—atomic plants

should

reactors

available under license.

water

factor added.

Commercial

privately owned and operated.
(2)

Seemingly,

a

benefits
I

patents.

Atomic Power Development
Associates

uniformity

(APDA)

'

Investors in

utility securities are
will give more mobility to the
fortunate in that no complacency
process industries which use large has
developed in the electric pow¬
amounts of electricity.
This au¬ er industry. It has recognized its
gurs well for Detroit Edison which
responsibility for everything hav¬

a

ing to do with the production ahd

ployees

the

again
not

of

to

operate

that

too

its

discovered

have

We

people

mobile

residence

so

as

factories.
time

now

the basic proces¬

Co., 398 South Bev¬

erly Drive, members of the New
York and Los Angeles Stock Ex¬
changes.

of

to

electricity and in
the art re¬

improvement of

lating thereto.
Among the earliest entrants in
the field of atomic power develop¬
ment

was

my

sing industries, which employ rel¬
troit Edison.
atively few people, will gravitate

own company—De¬

We entered actively

Continued

Detroit.

on

page

36

TABLE III
Average Miles

connected with Dan¬

iel Reeves &

and

generally are
their place

distribution

to

BEVERLY HILLS, Cal.—Philip
—

be

to

(Special to The Financial Chronicle)

tf

(1)

for

operation

have

large sources of
densing of steam
new

need

already serves a metal fabrication
area
which requires many em¬

S. W. Diversified Inv.

With Daniel Reeves Co.
P. C. W. Patsch

still

*

Important

principal of the firm.

Singapore."

will

All

Diversified

Australia

opened

House,

Directors

of

factor

load

the

and

be accentuated further.

Fixed

London,

Mr.

high

Toronto Bond Traders

ORLEANS, La. —Daniel
Silverman, Jr., has formed D.
Morford has been appointed Chief
N. Silverman Co., Inc. with of¬
General Manager in succession to
fices in the Shell Building to en¬
Eng.,

distances

follows:

capacity

transmis¬

ments.

*

China,

sion

larger

ton H.

"The Chartered Bank of India,
Australia

concentrations,

we

Stanley W. Franklin Lober Co. with offices at 76 Mawere appointed Assistant Cashiers.
maroneck Avenue to engage in the
All others officers were re-elected. securities business.

The Bank of Albany at
Albany,
Ore., The Commercial Bank of




Bond Club Luncheon

Bechert and

(Special to The Financial Chronicle)
%

Philadelphia Municipal

of

had

Vice-Presi¬

dent in the corporation and bank

relations

to

that the trends of greater

Load
Year

Time

Megawatts

•Average % Load

on Generators-

of Transmission

High

Medium

Low

per Megawatt

Oper. Cost

Oper. Cost

Oper. Cost

1952__6:00 p.m.

1,900

12

100

100

1956__6:00 p.m.

2,700

16

85

100

100

900

16

14

19

56

1956—4:00

a.m.

181

Volume

Number

5402

The Commercial
Financial

.v.

and
*

(731)

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

AMERICAN

IRON

Indicated steel

AND

INSTITUTE:

STEEL

Week

operations (percent of capacity).

-Feb. 13

ingots and castings (net tons).

.Feb. 13

*

AMERICAN
<

Crude

PETROLEUM

oil

and

42 gallons

Week

average

(bbls.

of Jan. 28

74.4

§2,110,000

♦2,070,000

2,007,000

1,774,000

6,694,700

6,342,950

6,257,200

Kerosene output

(17,402,000

7,179,000

7,296,000

24,546,000

24,464,000

25,319,000

oil

(bbls.)

output

2,724,000

2,622,000

2,606,000

11,920,000

12,256,000

11,846,000

8,141,000

8,311,000

8,312,000

oil output (bbls.)
Jan. 28
8tocks at refineries, bulk terminals, in transit, In
pipe lines—
Finished and unfinished gasoline (bbls.) at
Jan. 28

(bbls.)

Distillate

fuel

Residual

at

oil

fuel

Jan. 28

(bbls.)
(bbls.)

oil

new

freight loaded

Revenue
CIVIL

U.

169,612,000

166:285,000

157,228,000

168,480,000

24,532,000

26,118,000

29,281,000

21,710,000

Private

;

98

106

103

176

182

148

Stores, restaurants and garages
Other nonresidential
building

83,524,000

Religious

46,433,000

Educational

Jan. 29

641,979

cars)__ Jan. 29

609,286

cars)

(no. of

ENGINEERING

—

v

635,653

529,452

507,424

610,906

609,634

57

59

45

53

40

15

17,

16

28

29

26

24

21

institutional

Miscellaneous
Farm

J

25

construction

$279,861,000

$258,481,000

$414,944,000

$194,300,000

182,713,000

160,389,000

232,952,000

115,989,000

Feb,.; 3

97,148,000

98,032,000

181,992,000

78,311,000

Fety| 3

66,705,000 ^*-70,720,000

84,089,000

63,029,000

30,443,000

97,908,000

15,282,000

27,372,000

.jol

8,835,000

*^♦8,540,000

7,430,000

608,000

597,000

512,000

Jan$9

100

M'4*-

95

80

kwh.)

000

i

12

U0,047,000?fe^*101003,000

9,833,000

8,674,000

198

238

BRADSTREET, INC..

152

27

23

49

39

83

90

300

77

84

12
55

71

59

10

78
174
*

14

Conservation

k&BS
Feb.

136

179

Miscellaneous public service enterprises

'Wl.

&
_

350

103

41

and water

358

24

__

39

174

and institutional

9

795

23

339

_

12

938

100
-

Other nonresidential building
Military facilities
'.
Sewer

.nv%

i

48
263

22

Highways
ELECTRIC INSTITUTE:

36

53

299

185

Hospital

85

347

783

building

Educational

INDEX—FEDERAL RESERVE

103

.•'.*«

49

Residential building

708,000

34

271

Public construction

8,405,000

Jan. 29

386

29

Industrial

Jaris, 29

106

349

I

Telephone and telegraph
Other public utilities
All other private

M

S. BUREAU OF MINES):

'

93

Public utilities

Febv 3

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)

(in

79

51

Nonresidential

output

182

Hospital and

628,193

\

FeJ?v 3

State and municipal

Electric

177
»

'

Social and recreational

Federal

EDISON

23

507

94

51,361,000

=

22

551

169

109,631,000

AVERAGE

78

22
'■

200

49,931,000

Public construction

SYSTEM—1947-49

95

88

95,870,000

SALES

850
*

534

ZZ—

(nonfarm/

Railroad

DEPARTMENT STORE

951

1,175
'

172

48,537,000

construction

(U.

1,115
77

1,917

1,292

186

89,032,000

construction

COAL OUTPUT

2
—Z__Z

$2,712

2,347

1,214

Z_

Jap. 28

Fe.bJ, 3

S.

$3,285
*

2,202

Warehouses, office and loft buildings—

NEWS-RECORD:
Total

~

Commercial

at.

CONSTRUCTION

Ago

Nonhousekeeping
Nonresidential building
Industrial

Jan.28

(number of

Year

Month

$2,985

~ZZ

Additions and alterations

at.

freight received from connections

ENGINEERING

,

building (nonfarm)
dwelling units

New

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

construction

construction

Residential

10,253,000

8,369,000

Residual fuel

Kerosene

Total

2,539,000

Jan. 28

1

of th&t date:

Previous

CONSTRUCTION—U. S. DEPT. OF
LABOR—Month of December (in
millions):

23,245,000

(bbls.)

fuel

are as

Month

BUILDING

6,948,000

Jan. 28

(bbls.)

of quotations,

cases

Ago

83.2

Jan. 28

output

Distillate

Ago

Jan. 28

(bbls.)

ia

or,

either for the

are

Latest

♦85.8

6,677,450 '

Dates shown in first column

that date,

Private

output—daily

production and other figures for the

cover

Year

INSTITUTE:

condensate

eacn)

Crude runs to
stills—daily average

Gasoline

Month

on

§87.4

Equivalent to—
Steel

month available.

month ended

or

Previous
r"

or

35

10

development-'

and

13
.

3

264

:

255

All other

public

61
9

IRON AGE COMPOSITE PRICES:
Finished

steel

Pig iron

(per

Scrap steel
METAL

Feb.

PRICES

Electrolytic

(E.

M. J.

Export
Lead

refinery

tin

(New

(St.

Zinc

4.797c

4.634c

$56.59

$56.59

$56.59

$35.50

$35.50

$34.17

$27.33

CONSUMER PRICE
Month
All

(East

St.

Feb.

32.700c

29.700c

29.700c

Feb.

at

31.750c

114.3

88.000c

85.000c

15.000c

15.000c

13.000c

14.800c

14.800c

14.800c

12.800c

11.500c

11.500c

11.500c

9.500c

and

Fruits

bakery

and

Other

foods

Housing

and

97 29

98.37

98.86

109.97

•110.52

108.70

113.70

114.66

114.08

Household

"

111.44

111.62

112.19

110.70

"Feb-

110.15

110.15

110.34

108.34

Men's

Feb.

104.83

104.83

105.00

101.97

108.16

107.98

108.70

106.92

_Feb.

110.70

110.70

111.07

108.52

Public

Feb.

Group

111.07

111.25

111.81

110.52

;

Utilities

Group
Group

Industrials

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds
Average corporate

Feb.

2.68

2.70

2.61

2.58

Fep.

3.17

3.17

3.14

3.24

Aaa

Feb.

2.97

2.96

2.92

2.95

Aa

Feb.

3.09

3.08

3.05

Feb.

3.16

3.16

3.15

Baa

'-

i

3.46

3.46

3.27

3.28

3.24

3.13

3.11

3.25

Orders received

Production

8

3.11

3.10

3.07

416.6

413.9

420.0

ASSOCIATION:
Jan. 29

Percentage

of activity
Unfilled orders (tons) at end of
period

=

100

;

Customers'

short

Customers'

other

240,413

94

93

47

92

360,787

363,024

330,839

4

106.75

106.75

106.54

106.95

sales

1

1,393,114

1,772,913

1,036,822

925,853

$71,651,552

$86,516,910

$50,161,993

$42,297,268

sales

1,281,172

1,474,801

1,173,155

828,804

jan. 22

sales

8,923

6,021

7,016

Jan. 22

1,272,249

1,468,780

1,166,139

__

—

—

—

—

_

--

-

__

$68,402,918

$52,646,036

$35,573,856

Jan.22

Short sales

353,220

368,980

398,980

240,540

3~53~220

368,980

398^980

240Z540

Jan.22

sales

Jan.22

shares

125.3

105.4

108.1

117.7

117.8

117.0

104.3

104.6

105.3

106.5

107.6

99.5

99.5

100.5

117.0

116.1

91.2
127.6

128.9

126.3

126.1

123.6

113.6

:

recreation
and

PRICES

Average
Copper

—

107.2

90.9

113.8

106.6

113.6

106.8

—119.9

—

_

_

services

(E.

for

(per

-120.0

,

108.9
120.3

M.

&

month

J.

of

QUOTATIONS)-

January:

pound)—

Electrolytic

domestic

Electrolytic

export

Lead—

29.783c

Jan.22

485,050

632,740

284,400

334,810

28.767c

15.000c

ttThree

months,

London

long

(per

ton)

—

Cobalt,

Sterling

Silver,

London

29.000c

29.000c

$78,250

$90,160

11.500c

11.500c

9.760c

£85.836

£82.722

£73.022

£84.432

£82.023

£71.666
$2.00000

$1.70000

(pence

$2.07500

$1.70000

$2.15000

$2.60000

$2.60000

85.250c

85.250c

74.238

Sterling Exchange (Check)
Tin, New York Straits
§§New York, 99% min
Gold (per ounce, U. S. price)
Quicksilver (per flask of 76 pounds)
Aluminum, 99% plus ingot (per pound)
Magnesium ingot (per pound)-

—

74.250

73.750

$2.78510

ounce)

per

$1.70000

$1.70000

85.250c

Exchange—
(per ounce)

York

31.970c
28.500c

29.000c

$2.60000

—

New

£85.794

31.970c
28.500c

$1.70000
—

97%
and

£103.202

$1.70000

(per pound)

Silver,

£103.702

$79,500

—

pound)

(per

13.060c

£86.453

31.970c

pound)

(per

14.800c

£104.216

28.500c

(per ounce)

refined

(.'Cadmium

gCadmium

13.260c

14.800c

£104.065

$2.78764

$2.81163

87.290c

88.649c

84.830c

86.290c

—

TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS

29.671c

31.036c

15.000C

([Antimony, New York Boxed—
-■
Antimony (per pound) bulk, Laredo
Antimony (per pound) Laredo

Silver

29.700c

32.574c

refinery

refinery

.

(per pound)
Common, St. Louis (per pound)
t % Prompt, London (per long ton)

820,252

$60,721,770

Round-lot purchases by dealers—

MEMBERS

METAL

8,552

Jan. 22

OF

_

_

care

tCadmium

22

by dealers—

ACCOUNT

__

-

girls'

Platinum, refined

Jan. 22

Number of shares—Total sales

FOR

__

Zinc (per pound)—East St. Louis
t+Zinc, London, prompt (per long ton)—ltZinc, London, three months (per long ton).

-1;

jan

value

of

232,351

140,640

jan. 22

Dollar value

Number

214.669
j

354,462

Feb.

Odd-lot purchases by dealers (customers' sales)—
Number of shares—Total sales

Other

252,346

Jan. 29

Odd-lot sales by dealers (customers'
purchases)!—
Number of shares

Dollar

226,971

INDEX—

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
ODDLOT DEALERS AND SPECIALISTS
ON
N.
Y.
STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:

Round-lot

244,391
257,931

Jan.29

PRICE

__

Common, New York

Jan.29

REPORTER

—

124.2

105.4

\

3.14

412.3

(tons)

AVERAGE

3.63

8

(tons)

OIL, PAINT AND DRUG
1949

3.45

_FebJ

INDEX.

PAPERBOARD

—

care

3.34

3.13

FebJ

COMMODITY

NATIONAL

_

_

_____

118.9

108.7

3.26

Feb

Group
Group

Industrials
MOODY'S

_

109.1

116.9

_

127.6

127.3

oil

_

and

113.5

119.5

3.13

,

;Feb.

Group

Utilities

and

goods

113.7

129.2

106.5

fuel

apparel
Transportation

Other

109.2

125.5

—

—

Reading

110.3

109.6

119.7

boys'-

Personal

107.8

106.6

*

Feb.

Railroad
Public

_

and

Medical

■«r.

A

Apparel

193.5

106.8

12.9.4

Other

_

Railroad

and

Footwear

Baa

120.9

112.0

operation

Women's

Feb'.

A

123.1

108,4

—

_

-

_

Housefurnishings

Feb.

112.3

111.7

123.3

91.1

97.55

fuels

-

-

electricity

109.97

113.89

114.9

111.1
110.1

102.2

_

—

_

_______

Feb-

Solid

_

—

_

Feb.

~~~

fish

home..

at

Fetr.

~

and

-

-

_

Gas

products

vegetables-

_

_

Rent
3?

114.6

110.4
109.2

-

Meats, poultry
Dairy products

28.875c

88.875c

15.000c

Feb.

at

32.850c

90.250c

Feb.

at

34.800c

Feb.

at.

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government
Bonds
Average corporate
Aa

1947-49=100

—

home

at

Cereals

29.700c

Feb.

Louis)

INDEX

December:

Food

QUOTATIONS):

at

Louis)

of

items

Food

York)

(New York)

Lead

4.7.97c

$56.59

1

cooper—

Domestic refinery at

Straits

4.797c

1

Feb.

ton)

&

1

Fej2.

(per lb.).
gross

(per gross ton).

87.649c

83.830c

$35,000

Bismuth

(per

(SHARES):

pound)

$187,360

22.880c

22.200c

21.500c

27.000c

27.000c

64.500c

60.000c

$2.25

$2.25

$2.25

$756,856

—

—

$35,000

$319,538

64.500c

—

♦♦Nickel

$35,000

$322,000
27.000c

—

$765,251

$564,200

Total Round-lot 6ales—

Short

sales

Other

Jan. 15

;

ROUND-LOT

TRANSACTIONS

FOR

ACCOUNT

OF

640,780

616,950

540,720

Jan. 15

17,858,980

23,458,400

15,402,950

7,624,580

AREAS

Jan. 15

sales

Total sales

18,499,760

24,075,350

15,943,670

7,950,900

BOARD—Month

326,320

of

specialists
Total purchases

in stocks in

which

Jan. 15

Short sales
Other
Total

on

purchases

147,840

3,194,850

1,709,580

825,970

634,980

868,160

543,970

banks

savings

Total

34,000

10,200

499,410

207,500

672,550

888,820

533,410

217,700

Jan.15

692,995

914,792

629,150

375,896

Jan.15

74,020

74,730

68,810

49,020

.Jan.15

1,054,116

977,270

694,921

326,276

Total

Jan.15

1,128,136

1,052,000

763,731

375,296

Market

value

of

listed

Market

value

of

listed

at

mills

NEW

-

—

Jan. 15

3,420,825

5,138,702

2,963,270

(000's

430,892

248,454

$2,155,543

$1,548,645

Jan. 15

466,320

454,170

Other

381,670

3,717,806

4,681,500

2,625,051

1,211,906

Jan. 15

4,184,126

5,135,670

3,006,721

nand

net

to

$2,429,218
41,459

$2,242,137
39,785
338,j21
972,323
160,985,783
109,139,204
1,141,803

$1,696,463
31,019
381,172

Dec.

debit

accounts—

balances

customers
in

and

customers'

of

Received

207,060

Jan. 15

extended

on

margin

carrying

customers*

Cash

of

omitted):

firms

Credit

1,445,206

Short sales

EXCHANGE—As

STOCK

YORK

31

Member
Total

Total sales

248,493

232,930

28,820

860,000

sales

218,978

246,276

-

38,300

off the floor—

113,180

420,438

——

institutions

lending

113,998
289,835

139,868

$2,147,578

Individuals
Miscellaneous

178,200
392,839

147,328

634,250

Total round-lot transactions for account of members—
Total purchases

banks

in

credit

free

U.

246,640

S

balances.-

1,018,933

169,148,544

shares

106,517,242

bonds

487,653

(tons)

_

712,792

117,257,208
'^na'ano

809,972

1,418,966

Total

sales

sales

WHOLESALE
LABOR

—

PRICES,
(1947-49

NEW
=

SERIES

—

U.

S.

DEPT.

OF

Member borrowings on U. S.
Member boi rowings on other

All

UNITED

Farm

Feb.

products

Processed

other than farm

♦Revised figure,
Jan.

1,

109.8

110.6

Feb.

(

commodities

♦110.1

and foods

93.7

93.0

91.2

97.3

Feb.

foods

Meats
All

110.2

103.2

103.7

103.3

105.2

Feb.

85.0

86.7

84.8

115.2

115.2

115.1

114.5

flncludes 695,000 barrels of foreign crude runs
§Based on new annual capacity of
1955, as against Jan. 1, 1954 basis of 124,330,410 tons. tAll-time new
high record.
of orders not reported since introduction of Monthly Investment Plan.

tNumber




Exports'
imports

93.1

Feb.

168,629
1,748,259

165,563
1,532,373

1,228,080-

$1,189,000
949,000

$1,219,000
847,000

$1,137,000
907,000

233,34.,

tons

as

°mltted):

♦Revised figure.

producers'

and
five

♦♦F.o.b.

Port

quotation
from

East

AND

IMPORTS

CENSUS—Month of December

<

"zzzzzzzzz—zzzzzzz—z:z

([Domestic

125,828,310

EXPORTS

STATES

BUREAU OF

commodities

Govt, issuescollateral

i

199):

Commodity Group—

of

177,204

399,476

companies

Jan. 15

purchases

omitted):

associations—

-Jan.15

transactions initiated

BANK

LOAN

(000's

Nov.

companies
trust

and

678,130

2,383,440

NON-FARM

IN

HOME

—

of

—Jan.15
—

Short sales

Other

836,380

278,860

1,430,720

—Jan.15

sales

Total sales
Total

1,790,150

350,620

2,844,230

the floor-

Short sales

Other

3,355,750

354,000

2,029,440

Jan. 15

sales

Other

2,092,850

Jan. 15

S.

loan

and

Mutual

Jan. 15

sales

Other transactions initiated
Total

Bank

U.

OF

Insurance

registered—

FINANCING

ESTATE

Savings

MEM¬

BERS, EXCEPT ODD-LOT DEALER8 AND SPECIALISTS:
Transactions

REAL

tBased

platers'
tens

or

Colbourne,

at
St.

morning
Louis

on

the producers' quotation. tBased on the average of the
§Average of quotation on special shares to plater,
than carload lot, boxed. §§Price for tin contained.

quotations.
more

but less

ttAverage of daily mean of bid and ask
Metal Exchange.
ttDelivered where freight

U. S. duty included.

session

exceeds

of
0.5c.

London

A

Thursday, February 10, 1955

The Commercial and Financial Chronicle...
CC

(732)

Continued

from

page

under way

34

coolant

in

tors, which aj*e needed

Utility Financing

Associates

the total costs of the nuclear plant.

.

electricity."

mw.

paid

be

the old plant.

on

these

groups are executives from par¬
ticipating companies): Legal Com¬
mittee; Economic Committee; Fi¬
nance Committee; Technical Committee; Public Information Com¬

conceive would have a

charges must still

Fixed

Executive

and

Committees (Membership in

plant which we
capacity of

The atomic power

100-150

the conventional fuel plant exceed ;

Management

a prac¬

producing installation.

tical steam

And Atomic Power

Atomic Power Development

and other similar fac¬

heat cycles,

be feasible if the variable costs of -;

Table of Organization

the fuel elements,
control, system,

on

system,

The

(4)

Commis¬

Regulatory

sion's attitude has been favorable.

Association of Rail¬

The National

Utility

and

way

Commissioners

AEC Invitation for Proposals
more advanced, more difficult
to
are
actively following develop¬
The AEC early in January re¬ mittee.
ments;
some
Commissions have
We real¬ engineer, and takes a larger in¬
quested that private industry un¬
ised it was a power problem. The vestment.
Project Manager, Director and issued orders, allowing atomic re¬
The following information along dertake large development reactor
Assistants (Full-time Staff): Ad¬ search and development expenses
electricity produced by this new
Its announcement laid vance Reactor Design Committee; to be charged operating expenses;
fuel must be transmitted over our this line is strictly cribbed from a projects.
recent paper on this subject by down more definite ground rules
existing power networks and dis¬
Physics
Group;
Fuel
Element regulatory precedent should allay
for
procedure.
Proposals
for Group; Blanket Group; Mechani¬ any fears as to the ability of most
tribution systems the same as elec¬ our President, Mr. Cisler:
Commission cooperation may be
"The project in which The De¬
tricity made from conventional
cal
Design
Group;
Materials utilities to recover from custom¬
up
to April
1, 1955.
fuel.
There are presently 33 firms troit Edison Company and its as¬ submitted
Group; Fuel Separations Group; ers any large write-offs of prop¬
sociates are engaged is directed Their announcement also estab¬
associated with us in the field of
Nuclear Instrumentation and Plant erty occasioned by the introduc¬
lished prices at which domesticControl Group; Mechanical Hand¬ tion of nuclear power.
developing atomic power under primarily toward the development
the leadership of our company's of a large liquid metal cooled fast licensees must pay the Commis¬ ling
Group;
Site
and
Safety

in

1950

iis

actual

determine

studies to

into

possibilities.

President,

Walter

Mr.

There

(APDA).

55

are

that can com¬

with the con¬

pete commercially

boilers

fuel-fired

ventional

now

u.'ied.

cause

Edison's

in the work cost
$320,000.
For 1955 the effort will
be further increased and the proj¬
ect

totals

share.

our

will

amounts

have

for
1955 to
Substantial

$750,000

budgeted
cover

Edison

Detroit

of

directors

The

$3,800,000.

be spent

in-provid¬

a test facility in which many
of: the components of the reactor

ing

under

development

can

be

do

not

BLS index of prices.

Controller

fabrication

"While

the

ing

is

reactor

more

of

a

produces

are

our

is

only loss will be the cost of
research, development and other

process

reactor

of

physics
well

are

under¬

Organization

I

believe

ciates.

We have

involves

for experimen¬

the

large

reactor-with

about

500

mw.

of

development

design
a

of

such

group

a

(1)

energy

around

to

and

the

its

of

scope

problems

to-day
table

of

is

to

that

engender

atomic

power

Area

boiler

total

of

Today,

op¬

are:

industry

assets

fuel

is

be

could

represents

obvi¬

limited

managements
are
possibilities of atomic

to

other groups work¬

numerous

this

problem, each
advocate of different:

an

same

replaced.

medium of production the investor
will

are

important

not

be

wiped out overnight

by obsolescence and

13%

only

be assured that his investment

can

opportunities
him to

able

—Existing plant has an advantage
in that a change-over would only

organization.

will

Now in

which he is

t

Feb.

Feb.

2

(letter

2

(letter of notification)' 50,000 shares of common

ADDITIONS

PREVIOUS
REVISED

ISSUE

-

.

©

★ American Scientific, Inc.

111.
of notification) $250,000 of 3% subordi¬

situation with

a

ITEMS

•

greater

presented

already familiar.

SINCE

Registration

Vf Allied Van Lines Terminal Co., Broadview,

even

be

rapidly increase his profit¬

holdings in

★ INDICATES

Securities

and

The great electric utilities of to¬
day have been built on research

revenues.

(3) "Sunk" costs

a

comfort

for

and private initiative. In this new*

change

of

14% of the total

used

type reactor designs.

obsolescence—

no

of

dis¬

as

Utility

ing on
being

plant and fuel—At best

total

of

day-

present

or

growth

motors

power—Aside from "APDA" there

only 8% (Boiler Plant Equipment)

something of its organi¬

you

to

as

(6)
alert

are

Little

(2)

to

way

rela¬

interested

the

of

and

In industry only

comparison with

are

lighting

tinguished from heat applications.

this event.

ates

the

as

Perhaps the best

zation

is

Work

which

in

factors

Rapid

the

realize

all

you

a

capacity of

heat.

of

Power

Atomic Power Development Asso¬

tell

work

Atomic

huge problems of organizing and

tation.

by-product to share the cost.
This type is important to you as
financial
analysts because it is

all

resources

The

of

a

to

corporations.

Development Associates

tended

a

the

association

our

points

minor

tively

timism

managing

"Our research and

of

prove

expenses

Association.

known, is a small unit—only
250 kw. of electricity—and is in¬

primarily

is in the

this time

terrible pun to be found

a

initials

the

not committed

are

a

well

develop¬

understanding that

my

make at

can

in

ing has been demonstrated by the
Experimental
Breeder
Reactor,
EBR—at Arco, Idaho.
This, as is

it

of

heat.

ment

nuclear

"The

energy

will

costs

"APDA"—Atomic Power Develop¬

velopment.

because

form

60% of his total requirements

boon to the industry

form of

de¬

effort to the longer range

copper
uses

the

I

felt

have

we

utility securities

by developments in the

field

electricity.

factory over a small
wire.
Today's customer

application.
The deadline is
April 1. The only announcement

that it is more desirable to devote

breeder reactor which
more
fissionable ma¬

terial than it consumes.

reactors,

atomic

Atomic

distributed

be

can

not

is

Associates
the

to

involved

fast

a

electric

—

the house or

government to file for an

It

the

have recognized that

problems

for

effect

as

which

to

popular

convenient

a

for

fuel

atomic

our

be.

reactor practical.

types

you

we

we

technical

a

is

general appraisal of the out¬

look

will know

we

Utility

Securities
A

is

Electricity

consider¬
able optimism and safety of in¬
vestment.
If atomic energy does

what

breeder reactor may be
difficult than
some
other

in

knowledge as to the technical as¬
pects of our studies.
I do know
that

such

make

the

expect a
contribute
much

to

For the first time

reprocessing and
systems are required

integrated

The

to

a

to

Boon

a

Future

and

converted

be

to

Present

bot¬

energy

energy

premises there would be
hurdles. It would still have

many

Will Be

Atomic Power

heat

a

dividual

Conclusion

be guaranteed during
seven-year
period
beginning

is

of

important

are

and if it
did become adaptable to in¬

ever

ministration

prices will

fissionable material requirements.

breeder

believe

the

has

material

stood, and the principle of breed¬

Power Reactor Development
I

heat

tlenecks
energy

Test Facility Group; Ad¬
Group.

Group;

material, such as
Plutonium, produced in the course
of the operation of reactors.
All

Utilization

(5)

and Steam
Economics

Metal
Group;

System

nuclear

July 1, 1955, save for adjustment
on
the basis of changes in
the

built

tested.

and

both

Liquid

Group;
Power

price that it will pay licensees for
special

re¬

a

possibility of being eco¬
nomically justified, and (2) that
an atomic power
industry should
be capable of supplying its own

part

budget

produces

which

that

greatest

Detroit

$2,000,000.

belief (1)

our

fissionable

and

Project work undertaken during
1054 cost about

of

actor

with

reactor

This type was chosen be¬

system.

persons

for the group full time
with the objective of the develop¬
ment of a nuclear reactor for the
power

sion for the lease of atomic fuels.

Perhaps even more important to
our
project the AEC fixed the

breeder

neutron

working

generation of

an

integrated fuel element and blan¬
ket reprocessing and fabrication

Cisler.

L.

organization is called Atomic
Power
Development
Associates
The

Arizona

Dec.

7

stock

Goldconda

Metals,

Inc.

(2/14-18)

(letter of notification) 2^2,000 shares

oi

curamoa

Price—$1 per share. Proceeds—For
purposes.
Office — Kingman, Ariz.

(par 10 cents).

Price—At par. Pro¬
ceeds—For completion of terminals and acquisition of
land. Office—25th and Rcosevelt Road, Broadview, 111.

stock

Underwriter—None.

equipment and apparatus.
Office—67 Wall St., New
York, N. Y. Underwriter — McCoy & Willard, Boston,

★ Atlantic City Electric Co.

Mass.

March

nated debentures due June

Amcrete Corp.,

1, 1980.

Briarcliff, N. Y.

To

(par

pay

current

Business—To

notification) 7,500 shares of 6% par¬
ticipating preferred stock.
Price — At par ($10 per
share).
Proceeds—For working capital. Business—Dis¬

Jan.

tributor

Price—$1

cent).

one

indebtedness

manufacture

share. Proceeds—
for working capital.

per

and

and

sell

scientific

products,

common

Dec.

6

tresses

(letter of

of

prefabricated concrete wall panels and but¬
concrete, etc. Un¬

made of steel reinforced dense

American

For

Jan. 20

Beauty Homes, Inc., Houston, Tex.

(letter of notification) 300,000 shares of common

(par 10 cents). Price—$1 per share. Proceeds—
For prefabrication and assembly of homes. Office—10509
South Main St., Houston, Tex. Underwriters — Hunter
slock

Securities Corp.,

Service

New York, and Continental Securities

Inc.

(letter of notification) 50,000 shares of class A
stock (par $1). Price—$5 per share. Proceeds—
working capital and general corporate purposes. Of¬
T.

Bldg., Washington, D. C. Underwriter
& Associates, Ltd., Washington,

Ludlum

D. C.

31

Exploitation

(par

Proceeds—For

cent).

one

mining

Newark, N. J.

6,000,000 shares of com¬
Price—Five cents per share.
Office—17

expenses.

Underwriter—Richard &

Academy

Co.,

same

city.

mon

9

(letter of notification)

stock

(par five cents).

•

1,500,000 shares of com¬

Price—20 cents per share.
Office—Judge

Proceeds—For uranium and oil activities.

Bldg., Salt Lake City, Utah. Underwriter—Northern Se¬
curities, Inc., Seattle, Wash.

American Water

Jan.

13

filed

Works

Inc.

Co.,

540,894 shares of

8;

one new

rights

Price—$9.50

per

share.

for additional

writers—W.

C.

(par $5)

stockholders at

share for each five shares held

expire

to

comon

stock

Feb.

23

(Northeastern

Co., owner of 1,625,000 of the 2,704,472
shares) will subscribe for 325.000 of the
and

Proceeds—To

investments

Langley

&

in

Co.

new

Water
shares.

bank loans

repay

The

of

outstanding

subsidiaries.

and

as

First

Under¬

Anticline Uranium,

Inc., San Francisco, Calif.

Oct. 28 (letter of notification) 2,970,000 shares of

class A
capital stock. Price—At par (10 cents per share). Pro¬
ceeds—For exploration and development expenses. Of¬
fice—995 Market St., San Francisco, Calif. Underwriter
—Coombs & Co., of Los Angeles, Inc., Los Angeles, Calil
Arctic

NeU'York
.

'

Boston

Philadelphia

Pittsburgh

San Francisco

Private Wires




to

all

offices

Chicago

Cleveland
.

Co., Inc.,

New York.

$10,000,000 of first mortgage bonds due
Proceeds—To retire bank loans and for

1, 1985.

Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); Union Securities Corp.; White,

Weld & Co.; Equitable Securities Corp.; Blair & Co. In¬

corporated; The First

Boston

Corp.

and

Drexel

&

Co,

(jointly); Lehman Brothers; Salomon Bros. & Hutzler;
Lynch, Pierce, Fenner & Beane. Bids—To be

Uranium

Mines

Ltd.

28

(Regulation "D") 1,500,000 shares of common
stock (no par value). Price—20 cents per share. Proceeds
—For general corporate purposes.
Office — 411 Child?
Bldg., Winnipeg, Manitoba, Canada.
Underwriter—De
Gaetano

Securities

Corp., New York.

to 11

up

a.m.

(EST)

Audio & Video Products

on

March 9.

Corp.

Jan. 17

(letter of notification) 450,000 shares of common
one cent). Price—30 cents per share. Proceeds
accounts payable, to maufacture new tape
recording machine, and for working capital. Office—73C

stock

(par

—To reduce

Ave., New York, N. Y.
Co., same city.

' *

'

Automatic

Underwriter

Canteen

Co.

of

—

Townsenc

America

Dec. 28 filed 97,481 shares of common stock

ing
Jan.

offered

27,

for

1955

six

shares

$17

per

subscription

on

held;

share.

Corp.

the

basis

rights

by

of

to

(par $5) be¬

stockholders

one

expire

new

on

of

share

Feb.

recorc

for

14.

each

Price—

Proceeds—Together with other funds, tc

purchase 262,500

Boston

Corp., both of New York.

Oct.

&

Graff &

common

being offered for subscription by
the rate of

Feb.

Brothers

construction.

Fifth

American Duchess Uranium & Oil Co.
Dec.

filed

4

received

Corp.

(letter of notification)

stock

mon

corporate

Merrill

★ American Uranium
Jan.

St.,

Corp., Houston, Tex.

Co.,

Publishing

11

—Theodore
American

Feb.

new

fice—400 Walker

derwriter—None.

general

Underwriter—Baruch

shares of

common

stock

of

the

Rowe

Underwriter—Glore, Forgan & Co., New York.

Automatic Remote Systems,
Inc., Baltimore
Aug. 4 filed 620,000 shares of common stock (par
cents), of which 540.000 shares are to be offered

public

and

Price

$3./5

80,000
per

shares

share.

to

be

issued

to

W
t<

underwriter

Proceeds—For manufacture

o

Telebet units and Teleac systems and additions
to work

ing capital.

Underwriter—Mitchell Securities

timore, Md.

"

Inc

Bal

'

Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of commoi
stpek. Price—At par (three cents per share). Proceed
—For mining expenses.
Salt Lake City, Utah.

Office—510 Newhouse Building
Underwriter
Call-Smoot: Co.

-Phillips Building,-same city.

—

Volume 181

Number 5402... The

Commercial and Financial

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of

Chronicle

amendment.

(733)

Proceeds—For expansion program.

Under¬

•

37

Chesapeake. &

ticipating

Colorado Uranium Corp. (2/23)
750,000 shares of common stock (par five
cents). Price—$1 per share. Proceeds—For exploration
and development program. Office — Washington, D. C.
Underwriter—Peter Morgan & Co., New York.

mon

Consolidated Oil & Gas Co., Ltd. at the rate of six
pre¬
ferred shares for each 17 Calvan shares.
The offer is

mon

fice

contingent to acceptance by not less than 51% of the
outstanding Calvan stock and will expire on Feb. 28,

ftock (par 10 cents). Price—25 cents per share.
—For mining operations. Address—Box

commoc

77, Provo, Utah
Underwriter—Weber Investment Co., 242 N. University
Ave., Provo, Utah.
Bikini Uranium

Oct.

Corp., Denver, Colo.

15

(letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price—10 cents per share.
Proceeds—For exploration and development costs. Of¬
705 First National Bank Bldg.,
Denver,
Underwriter—I. J. Schenin Co., New York.
—

Colo

Canyon Uranium,

Dec.

Canadian

Dec.'20

Petrofina, Ltd.

filed

1,751,428 shares of non-cumulative par¬
preferred stock (par $10—Canadian) being
offered in exchange for shares of
capital stock of Calvan

unless extended.

Underwriter—None.

Statement effec¬

tive Jan. 21.

★ Bingham-Herbrand Corp., Fremont, Ohio
Feb. 2 (letter of notification) 3,000 shares of common
stock (par $1). Price—At the market
(estimated at $10
per share).
Proceeds—To selling stockholder.
Under¬
writer—Wm. J. Mericka & Co., Inc.,
Cleveland, Ohio.
Blue

writer—White, Weld & Co., New York.

Proceeds

Carnotite

Development Corp.
(letter of notification) 16,000,000 shares of com¬
mon stock. Price—At
par (one cent per share). Proceeds
—For exploration and development
expenses.
Office—
317 Main St., Grand
Junction, Colo. Underwriter—West¬

filed

Circle Air
Nov.

Securities Corp., Salt Lake City, Utah.

Colonial Acceptance

Corp.
$2,500,000 of 6% junior subordinated sink¬
ing fund debentures, series B, due Dec. 1, 1968, of which
$1,529,550 principal amount are offered in exchange
for $1,390,500 of debentures due 1958 on the basis of
Dec. 20 filed

Offer

stock

terest.

tinental Bank Bldg., Salt Lake City,
Utah, and 618 Rood

par).

Ave., Grand Junction, Colo.

—From

James E.

—

•

Carolina

Elko, Nev.

(letter of notification)

1,000,000 shares of

com¬

stock. Price—25 cents per share. Proceeds—For ex¬
ploration and development costs. Office—402 Henderson

Power &

Light Co.

$550 of

(2/24)

(no par)

and 505,000 shares of common stock (no
Price—To be supplied by amendment. Proceeds
sale

of

shares, together with other funds, for
improvements to property. Underwriters
—Merrill Lynch, Pierce, Fenner &
Beane, New York,
and R. S. Dickson &
Co., Inc., Charlotte, N. C.
additions

Blue Jay Uranium Corp.,

Oct. 15

and

mon

Bank

Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
•

British

Western America

Uranium

Corp.

(2/16)

Jan. 13 (letter of notification)
298,400 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For
A.

exploration and
Johnson

Bldg.,

development

Denver,

Underwriter—S.

D.

Brothers, both of New York

California Tuna Fleet,
Inc., San Diego, Calif.
Sept. 29 filed $4,000,000 of 6% sinking fund debentures
160,000 shares of common stock (par five
cents) to be offered in units of a $500 debenture and 20

due 1966 and

shares

of

to certain

clippers, subject
tuna clip¬

liabilities; for construction

and the balance for working
Underwriter

corporate purposes.

of four

capital and
Barrett

—

general

Herri ok

&

Co., Inc., New York. Offering—May be effected in March
and registration statement
may be amended.
it Calumet & Hecla,
Feb.

7

tures

filed

Inc.

due

amount.

(3/1)

15, 1970.

Proceeds

Price

At 100%

—

of principal

For construction program.

—

Under¬
& Curtis and Stone &

Webster Securities Corp., both of New York.
Central

Eureka

Jan.

Colorado

(Baruch

(Monday)

(letter of notification) $300,000 of 5% convert¬
due Feb. 1, 1965.
Price—At par (de¬
nominations of $500 each).
Proceeds—For acquisition
of additional
properties and for working capital. Office
—Berryessa Road, San Jose, Calif. Underwriter—Shaw,

Brothers

&;

Co.,

Inc.)

Central & South West
Corp.
Feb.

2

filed

600,00O shares

of

(3/1)

common

stock

(par

$5).

Proceeds—To repay bank loans and loan from insurance
conipany, and to purchase
aries.
Underwriter—To be

shares

common

of

subsidi¬

determined by competitive
bidding. Probable bidders: Blyth & Co., Inc. and Smith,
Barney & Co. (jointly) The First Boston Corp. and
Merrill

Lynch, Pierce, Fenner & Beane

Brothers

—To

be

at

No.

20

and Lazard

Freres

(jointly); Leh¬

&

Co. (jointly). Bids
(CST) on March 1
Drive, Chicago 6, 111.

received

to

up

Wacker

10:30

a.m.

(Bids

noon

EST)

(Offering

by

company—no

underwriting)

General Homes, Inc
(S.

Misosuri

D.

Research
(P.

New Canaan

W.

&

Co.)

&

Co.,

Co

Common

Stewart

&

Uranium

Reynolds

&

Class B

Co.)

285,000

11

a.m.

Class A

Lehman

Hamlin

&

Lunt)

(Peabody

South

Georgia

Co.)

&

Natural

210,053

Gas

1

(letter of notification) $100,000 of 20-year 6%
sinking fund notes and 100 ten-year war¬
rants to purchase 20 shares of common stock to be sold
in units of

a
$1,000 note and one warrant. Price—$1,000
unit (each warrant is exercisable at $10 per share )

per

Proceeds

Sodak

D.

Fuller &

Co. and Vermilyea

.Common

Uranium

&

Central

&

&

Co.)

(Goldman,

West

10:30

Corp
CST)

a.m.

2

Sachs & Co.

Pacific Gas &

(Stone

Common

&.

Webster

Common

500,000 shares

Corp.)

Brothers)

$25,000,000

to

be

invited)

7

Bonds
$50,000,000

able

bidders; Halsey, Stuart & Co. Inc.; Morgan, Stanley

& Co.; The First Boston Corp.
Offering—Originally setfor May 11, but has been postponed because of market
conditions.
No new date set.

Consolidated Fenimore Iron Mines Ltd.

Molded

Arts

Common

$1,500,000

(Monday)

(Bids

Corp.-

Common

to

200,000

(Wednesday)

15

Texas

Morgan

Electric Service
(Bids

11:30

&

Co.)

(Tuesday)

(Bids

(Granbery,

Marache

&

Co.)

to

(Straus,

&

Co.,

Lynch, Pierre, Fenner
Inc.)

50,000

pfd.

shs.

&

Beane

and

and

505,000

First

Bank

<fe

Co.

Stock

(Offering

to
&

and

R.

Brothers)

Inc.)

S.

361,922

«

to




Blosser

&

Debentures

McDowell)

about

$1,500,000

(Friday)

Securities

May

by

296,050

Office—Toronto, Canada. Underwriter—None.

Consolidated

Sudbury
Toronto, Canada

by

(Bids

shs.

Corp.)

384,861

shares

10

(Tuesday)

to

through

underwriters

11

be

sold

on

or

shares

.

Toronto

selected

Stock

dealers

Underwriter
Exchange
in

or

United

Uranium

(letter of notification)

stock.

mon

Price—At

par

(one

—

Uranium, Mines, Inc., N. Y.
of notification) 500,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—100 West 42nd
St., New York. Underwriter—Justin Steppler, Inc., New
Dec.

7

(letter

ic Continental
filed

3

Baking Co.

(2/24)

$13,000,000 of 25-year subordinated

deben¬

1, 1980 (convertible into common stock
on
or
before Feb. 28, 1965).
Price—To be supplied by
amendment. Proceeds—Together with other funds, to re¬
at

$105

share 125,575 of the 253,575 outstand¬
Under¬

per

ing shares of $5.50 cumulative preferred stock.

11

Bonds
a.m.

EST)

* Continental Electric Equipment Co.
28

(letter of notification)

8,645 shares of common
stock¬
1, 1955 on the basis of one new
share for each five shares held; rights to expire on April
15. Price
$18.75 per share. Proceeds — For working
capital.
Office — 1 Green Hills Place, Cincinnati, O.
(no par)

be offered for subscription by

to

holders of record March

Underwriter—None.

$12,000,000

Power

11

a.m.

Bonds
EST)

$15,000,000

November 9

Southern
X

" *

Co.

M

{Bids

to

(Wednesday)
.k

be

invited) 500,000 shares

Dallas, Tex.
$150,000 of 4%

(letter of notification)

t

10-yeer

and

42,000 shares of common stock (par 10
cents) to be offered in units of $1,000 of debentures and
shares of

chased

Co.__

(Bids

22

debentures

200

Alabama

Brothers, both of

York.

Jan.

stock; remaining 12,000 shares to be pur¬

Price—$1,400 per unit; and §2
share. Proceeds—To buy common stock,
of Budget and Mutual and for working capital. Office—
per

815

Lynch,

Ltd.,

Corp., Denver, Colo.
1,000,000 shares of com¬
cent per share). Pro}ceeds
For exploration
and development expenses.
Office—206 Mercantile Bldg., Denver, Colo. Underwriter
—Petroleum Finance Corp., Oklahoma City, Okla.
Oct.

Dec.

May 31( Tuesday)

Blyth

Merrill

Mines,

Basin

Jan. 31 filed 3,000,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds—For

—

Common

Georgia Power Co

Common

stockholders^—underwritten

Fierce, Fenner- & Beane)

$6,000,000

(Wednesday)

shares

Maryland Casualty Co
(Offering

Dickson

.Common

stockholders—underwritten

•

writers—Wertheim & Co. and Lehman

Common

Union

$13,000,000

Corp

Co.,

be

Debentures

Lehman

treasury funds, to be
for geological surveys and metallurgical re¬
search, for drilling expenses and other general corporate

Continental Loan Co.,

common

Continental Baking Co
(Wertheim

16

April 15

(Thursday)

Carolina Power & Light Co.__Preferred & Common
(Merrill

Preferred

invited)

Westpan Hydrocarbon Co

shares

this stock, plus $440,000 to be available
200,000 shares to Alator Corp. Ltd. and

of

of

Securities Ltd., and $175,000

stock

(May

February 24

be

(Offering to stockholders—to be underwritten) 153,236 shares

Common
70,000

for

to pay

deem

$10,000,000

$17,000,000

United States Ceramic Tile Co

204,586 shares of

sale

sale

used

New

Bonds

EST)

Bonds

invited)

Trav-Ler Radio Corp._„

$750,000

Co

a.m.

be

Bishop Oil Co

Chesapeake & Colorado Uranium Corp.__Common

from

Feb.

shares

Kansas Gas & Electric Co

March

(Peter

filed

offered

tures due March

March

(Milton D. Blauner & Co., Inc.;
Hallowell, Sulzberger & Co.;
and Baruch Brothers & Co., Inc.)
$300,000

February 23

24

be

York.

(Monday)

Co

Kansas Ga3 & Electric Co
Plastics

/

Contact

Debentures

Lehman

(Courts & Co.)

Debentures

Securities

Wheat

writer—To be determined by competitive bidding. Prov¬

Constellation

(Wednesday)

and

March

(Thursday)

February 21

Wesst

C.

Common
600,000 shares

Electric Co.-

(Bids

$298,400

$300,000

Central Electric & Gas Co

221

York, Inc.
April 7, 1954, filed $50,000,000 first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and $25,000,000 West¬
chester Lighting Co. general mortgage bonds.
Under¬

—Stock

Preferred

^

New England Telephone & Telegraph Co._Commo.n
(Offering to stockholders—no underwriting) 511,205 shares

Atlantic Steel

February 17

—

Underwriter—J.

States.

South
(Bids

March

Mining Co., Inc

(Capper

Office

loan.

exploration and development of properties.

(Tuesday)

Bonds

Brothers)

bank

repay

St., Charlotte, N. C.
Co., Richmond, Va.

&

purposes.

Co

Calumet & Hecla, Inc.-

$16,000,000

(Wednesday)

To

—

Trade

Common
Kidder,

157,500 shares

(Blyth & Co., Inc.)

British Western America Uranium
Corp.__Common
(S.

Brothers;

$10,000,000

by
shares

May Department Stores Co

February 16

Co.

25

Yam

Debentures

Curtis;

Reliance Electric & Engineering Co

(Tuesday)

EST)

&

(Offering to stockholders—underwritten

shares

Kansas City Power & Light Co
(Bids

Jackson

(White, Weld & Co.) 50,000 shares

Investing Corp.) $250,000

February 15

Bonds

$10,000,000

South Carolina Electric & Gas Co

$99,940

Drilling Co., Inc..-

(General

Corp

EST)

a.m.

March

-Common
and

11

(Shields & Co.)

Class A &

Co.

Webber,

$300,000

Co.

(Allen

Electric

Inc._-Debentures

Inc.)

(Glidden, Morris & Co.)

Pittston

(Paine,

$1,500,000

Laboratories,

Brooks

&

(Bids

$300,000

;

Fuller

Gas

Hemphill, Noyes & Co.; and

$7,000,000

Uranium

common stock (par $7),
subscription by common stockholders
7, 1955 at the rate of one new share for
each five shares held.
Price—$2.20 per share. Proceeds

CALENDAR

Debentures

Gatling Mining & Development Co., Inc._Preferred

Plateau

of record Feb.

Sheraton Corp. of America

$292,000

in¬

Consol. Edison Co. of New

Common

Dallas Power & Light Co

and accrued

Consolidated Credit Corp., Charlotter N. C.

Co., San Francisco, Calif.

Rochester

Metals,. Inc

par

(letter of notification) 1,900,000 shares of commca,
stock (par one cent). Price—15 cents per share. Proceeds
—For mining activities.
Office — 824 Equitable Bldg..,
Denver 2, Colo. Underwriter—John L. Donahue, 430 16rfa
St., Denver, Colo.
;

—From

February 14
Arizona Goldconda

Price—At

To retire junior subordinated sinking

Dec. 1

to

ISSUE

—

Underwrite?^
—Straus, Blosser & McDowell and Fairman, Harris &
Co., Inc., both of Chicago, 111.

Jan.

NEW

Proceeds

subordinate

Corp., San Jose. Calif.

debentures

Hooker &

debentures for each $500 of debentures held.

new

expires Feb. 21.

fund debentures which mature Dec: 1,1958.

Oct.

18

ible

man

50,000 shares of $4.75 cumulative preferred
(no par).
Price — To be supplied by

stock, series A

(2/17)

$1,500,000 convertible subordinated deben¬

Feb.

writers—Paine, Webber, Jackson

stock.

Price—To be supplied by amendment.
Proceeds—For purchase from National Marine
Terminal,
Inc. of its undivided interest in 17 tuna

pers;

Central Electric & Gas Co.
Jan. 28 filed

Office—C.

expenses.

Colo.

Fuller & Co. and Vermilyea

Pro¬

machinery and equipment and working
capital. Name Change—Company was formerly known
as
Paley Manufacturing Corp.
Office—244 Herkimecf
Street, Brooklyn, N. Y. Underwriter—Allen E. Beeis
Co., Philadelphia, Pa.

Feb. 2 filed 50,000 shares of cumulative serial
preferred

Underwriter

com¬

ceeds— For

(letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining activities. Offices — 1003 Con¬

Reed Co., Reno, Nev.

Industries, Inc.
(letter of notification) 299,000 shares of
(par five cents). Price—$1 per share.

29

stock

Oct. 26

ern

Inc.

Nov. 29

7

by underwriter.

common

Fidelity Union Life Bldg., Dallas, Tex. Underwriter

—Securities Management Corp., same address.
Common
"

,

'

■

:.

.

Continued

on

page

SS

The Commercial and Financial Chronicle...Thursday,
38

February 10,

1955

(734)

Continued, from page

Credit Corp.,

Financial

37

electrical

New York

filed 250,000 shares of 7% cumulative sink¬
ing fund preferred stock. Price—At par ($2 per share).
Preceeds
For working caiptal. Underwriter — E. J.

Jan. 29, 1954

it CorpAmerica, Inc., Wilmington, Del.
(letter of notification) 2,272 shares of non-voting
common stock.
Price—$22 per share. Proceeds

Feb. 2

class A

general corporate purposes. Office — 1901
4th St., Wilmington, Del., Underwriter—None.

west

—For

&

it First

Co., Inc., New York.

Bank

Trust
65,040

participations.

offered

for

of capital stock (par $10) to
by stockholders of record

subscription

the rate of one new share for each eight
shares held. Price—To be supplied by amendment. Pro¬
ceeds—For investments in stocks of banking affiliates.

Feb. 24, 1955 at

Underwriter

—

Blyth & Co., Inc., New York, and San

Francicso.

(Republic of)
Jan. 7 filed $2,500,000 of Veterans, Courts and Public
Works 4% bonds due 1983.
Price—To be supplied by
amendment.
Proceeds — To Romenpower Electra Con¬
struction Co., which received the bonds in payment
for work preformed for the Republic or one of more
of its agencies. Underwriters—To be named by amend¬
ment.

• First Investors Corp., New York
2 filed
(by amendment) $6,000,000 additional in
Payment Plans (DM and DMM) and Single
Payment Plans (DMP).
Feb.

Periodic

Four States Uranium

mon

Dallas Power &

Light Co. (2/14)
Jan. 14 filed $7,000,000 of sinking fund debentures due
1980.

Proceeds—For construction program.

—To

be

determined

bidders:

by

Stuart

Halsey,

Underwriter

competitive bidding. Probable
& Co. Inc.; Salomon Bros &

Corp., Grand Junction, Colo.

(letter of notification) 300,000 shares of com¬
Price—At par ($1 per share). Proceeds—For

16

stock.

exploratory and development expenses.
Office — 618
Rood Avenue, Grand Junction, Colo.
Underwriter —
Joe Rosenthal, 1669 Broadway, Denver, Colo.
Frio Frozen Foods, Inc., Anthony, Texas
Jan. 25

St., New York 6, N. Y.

(10 cents per share). Pro¬
ceeds—For mining operations. Office—First State Bank

Marysvale,

Utah

(letter of notification) 150,000 shares of common
Price—At par (30 cents per share): Proceeds—

stock.

.

Desert Queen

stock

Uranium Co., Salt Lake City, Utah

Price—$1 per share. Proceeds—
Office—506 Judge Building, Salt
Underwriter — Selected Securities

(par two cents).

for mining

Lake

operations.

City,

Utah.

Frontier Uranium Co.,
Jan.

27

Ogden, Utah

(letter of notification)
Price—At

stock.

2,000,000 shares of com¬

par

Building, Ogden, Utah.
Ogden, same city.

Underwriter—Coombs & Co. of

Ltd., Los Vegas, Nev.

Underwriter—None.

Conn.

Gulf

States

Utilities Co.

Proceds—To redeem 50,000 shares of $4.50 divi¬
dend 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. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Stone & Webster Securities Corp.; Lehman
Equitable Securities Corp. (jointly); Kuhn,

Brothers and

Co.; Glore, Forgan & Co. and W. C. Langley

Loeb &

Gulf States Utilities Co.

May 14, 1954 filed $24,000,00 first mortgage

(Canada)

Aug. 10 (Regulation "D") 300,000 shares of common stock.
Price—At par ($1 per share).
Proceeds—For explora¬
tion and development costs.
Office— 100 Adelaide St.

and A. C.

& Co.

Allyn & Co., Inc. (jointly); Lee

Higginson 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,
York, N. Y., but offering has been postponed.

West, Toronto, Canada. Underwriter—McCoy & Willard,
Boston, Mass.

New

Gatling Mining & Development Co., Inc. (2/14)
28 (letter of notification) 1,200,000 shares of pre¬
ferred stock.
Price—At par (25 cents per share). Pro¬
ceeds—For drilling expenses and working capital.
Of¬

Jan. 27

it Gypsy

Mining

Queen

Co.

(letter of notification) 150,000 shares of common

Price—At par ($1 per share).

stock.

Proceeds—For min¬
Office—Deer Lodge, Powell County, Mont.

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 share.
Proceeds—For exploration and development costs.
Of¬

Dec. 9 (letter of notification) 11,000,000 shares of capital
stock (par one cent). Price—Two cents per share. Pro¬

Property Custodian, is the
at

competitive bidding.

ceeds—For exploration and

if

the

Main St.,
writer—Melvin F.
fice—21

ver,

Petersen Bldg., Maob, Utah. Under¬
Schroeder, 501 Kittredge Bldg., Den¬

Colo.

fice—79

Moab, Utah'**"*
Jan. 20 (letter of notification) 3,500,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses.
Office—M. I. C. Bldg.,
Moab, Utah. Underwriter—Security Uranium Service,
Inc., K. O. V. O. Bldg., P. O. Box 77, Provo, Utah.
East Tennessee Water Corp.

Main

St.,

South

River,

N.

Underwriter—

J.

None.

Co., Salt Lake City, Utah

General

Homes, Inc. (2/14)
300,000 shares of common stock (par $1).
Price—$5 per share. Proceeds—For plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.
•

15

filed

General

Motors

Corp., Detroit, Mich.
4,380,683 shares of common stock (par $5)
being offered for subscription by common stockholders
of record Feb. 8 at the rate of one new share for each

Jan. 20 filed

Dec. 20 (letter of notification) $160,000 of first mortgage

6% bonds dated Dec. 1,

expenses.

Underwriter—None.
•

Harvard

the

Brewing Co., Lowell, Mass.
345,760 shares of common stock

filed

1

which

development of oil and ura¬
nium properties.
Office — 414 Judge Bldg., Salt Lake
City, Utah. Underwriter—Utah Uranium Brokers, same
city.
Dec.

ing

Feb.

Gem Uranium & Oil

•

Diamond Uranium Corp.,

bonds due

Proceeds—To redeem $10,000,000 of 3%%
bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983, and for general corpo¬
rate purposes.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fen¬
ner &
Beane and White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities Corp.; Kuhn,
1, 1984.

June

first mortgage

Jan.

Devil

&

Co. (jointly). Bids—Had tentatively been expected to be
received up to 11:30 a.m. (EDT) on June 15 at The
Hanover Bank, 70 Broadway, New YorK., N. Y., but of¬

Co., Salt Lake City, Utah
Oct. 18 (letter of notification) 2,000,000 shares of com¬
mon stock Price—At par (15 cents per share). Proceedi
—For exploration and development expenses.
Office—
524 Atlas Bldg., Salt Lake City, Utah.
Underwriter—
Van Blerkom & Co.; same city.

Desert Uranium

of preferred stock (par

May 14, 1954 filed 160,800 shares

Loeb

Gatineau Uranium Mines Ltd.

(letter of notification) 259,500 shares of common

Jan. 26

El Paso, Tex.

Underwriter—None.

For mining expenses.

(no par). Price—$5 per share.

mon

it Deer Trail Mines,
Feb. 2

stock

working

fering has been postponed.

Proceeds—For con¬
struction of plant and refrigeration. Address—Box 306,
Anthony, Tex. Underwriter—Norman D. Patterson, Jr.,

First

For

(estimated at $15 per share). Proceeds—
capital. Office —16 Arbor St., Hartford,

market

—At

(letter of notification) 20,000 shares of common

Brothers;
Union
(jointly);
Kidder, Peabody & Co., Blyth & Co., Inc. and Merrill,
Lynch, Pierce, Fenner & Beane (jointly); Equitable Se¬
curities Corp.; Kuhn, Loeb & Co. Bids—To be received
up to noon (EST) on Feb. 14 at Room 2033, No. 2 Rector
Boston Corp.; Lehman
Securities Corp. and Wertheim & Co.
The

Hutzler;

1

$100).

Cuba

Aug.

Co., Hartford, Conn.

(letter of notification) 2,700 shares of capital
(par $1) to be sold to certain key employees pur¬
suant to stock options, who may reoffer at market. Price
Feb.

stock

Feb. 4 filed 361,922 shares
be

Office c/o
Long Island
& Co., Inc.,

New York.

it Gray Manufacturing

Minneapolis, Minn.

Stock Corp.,

(2/24)

Corporate Leaders of America, Inc., New York
Feb. 2 filed $25,000,000 of Corporate Leaders Trust Fund
Periodic Payment Series "B" Certificates and 1,014,375
4-

participations; and $1,500,000 Corporate Leaders
Fund Single Payment Series "B" Certificates and

—

Fountain

electro-mechaniacl products.

and

Henry Fogel, President, 36-17 20th Ave.,
City, N. Y. Underwriter—John R. Boland

the

Attorney General,

successful

bidder

will

company

successor

as

(par $1),

to the Alien

and proposes to offer

owner

If any such bid is accepted, and
plans to distribute the shares,

file

post-effective

amendments to
There are
Offering—Date expected to

supply the requisite additional information.
625,000 shares outstanding.
be set later in

February.

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.
Office—208 Turner-Cottman Bldg., Casper, Wyo. Under¬
writer
Casper Brokerage Co., Inc., Henning Hotel
Bldg., Casper, Wyo.
—

—

Hilton Hotels Corp.,

1954. Price — At par (in de¬
nominations of $1,000 each). Proceeds—For purchase of
real estate, capital improvements and contingencies. Of¬
fice—306 E. Main St., Johnson City, Tenn. Underwrite?

held; rights to expire on March 7. Price—$75
per share.
Procceeds — For capital expenditures and
working capital Subscription Agents—J. P. Morgan &

—D. T. McKee Investment

Co.

Hotels

Chicago, III.

'

year

East Texas Loan &

Co., Box 904, Bristol, Va.

Investment Co.

Jan. 20

(letter of notification) 25,000 shares of common
stock (no par). Price — $10 per share. Proceeds—For
working capital. Office—203 East Cotton St., Longview,
Tex.

Underwriter—D.

G.

Carter

Investment

Co.,

same

address.
El

Dec.

Enterprises, Inc., Las Vegas, Nev.
filed $6,000,000 of 8% sinking fund debenture

bonds due July 1,
stock

Incorporated, New York, N. Y.; National Bank of
Detroit, Detroit, Mich.; Continental Illinois National
Bank & Trust Co., Chicago,
111.; and Bank of America
N. T. & S. A., San Francisco and Los Angeles, Calif.
Underwriter—Morgan Stanley & Co., New York.
•

G.

M.

Shares,

Inc., Detroit, Mich.

Jan

Morocco
29

20 shares

1967, and 1,950,000 shares of

common

(par

20 filed 52,356 shares of class A stock (par
$1),
11,106 shares of class B stock (par $1) and 786 shares of
comon stock
(par $1) being offered for subscription by
holders of the respective shares at the rate of one new

share for each 20 shares of such stock held

10 cents), each purchaser of bonds to have
right to purchase common stock at par at rate of
10 shares for each $100 of bonds up to $9,900 of deben¬

Feb.

ture bonds

$134.06

the

purchased, with amount of shares increasing
in proportion to amount of bonds purchased. Price—
100% of principal amount for bonds. Proceeds—To pay
balance

of

purchase

price
construction

of Las Vegas Hotel, Inc.
of
main
hotel
building,

capital stock,
pavilions, swimming pool, furnishings, etc. Underwriter
—Company may sell debenture bonds and common stock
to dealers through brokers.
•
Electronics

Co. of

Ireland

6 filed 300,000 shares of capital stock.
Price—At
($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa. Underwriter—None.
par

Electronics

Investment Corp., San Diego, Calif.
14 filed 2,000,000 shares of
capital stock (par $1).

Dec.

Price—$5

per

Eula Belle

share.

Proceeds—For investment.

and

received

from

General

Sept.

(par $1).

1954,

G.

M.

shares

class

of

share.

A

common

stock

Proceeds—For

general

Office—Washington, D. C.

Under¬

per

General

Uranium Corp., Salt Lake City, Utah
(letter of notification) 1,200,000 shares of com¬
Price—At par (25 cents per share).
Pro¬
ceeds—For development and exploration expenses.
Of¬
Oct. 27
mon

stock.

fice—404 Boston

Building, Salt Lake City, Utah. Under¬
Co., same city.

writer—P. G. Christopulos &
Globe

Uranium, Inc.

Metallurgical Corp.
147,500 shares of
30,000 shares are to

Jan.
of

Office—506

parent, and

First

Security Bank Bldg., Salt Lake City,
Underwriter—Utah Securities Co., same city.

filed

18

which

common

be

stock

offered

(par $5),

to

a

group

composed largely of stockholders of Globe Iron Co, the
Price

—

117,500 shares

$10 per share.

ments and

stock

are

Proceeds

working capital.

derwriter—McDonald

(par 25 cents), 214,285 shares of class B common stock
(par 35 cents) and 300,000 shares of class C common
stock (par 50 cents). Price
At par. Proceeds — For
working capital. Office—Phoenix, Ariz. Underwriter—




31,

writer—None.

(letter of notification) 5,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For exploration and development
expenses.

_

50,000

Price—$10

stock

None.

Dec.

Services Life Insurance Co.

filed

14

18

common

At

company.

common.

Oct.

Farm & Home Loan & Discount Co.
Nov. 29 filed 320,000 shares of class A

that

Shares, Inc. owned 2,577,160 shares of General Motors

mon

Utah.

of record

8; rights to expire on March 1. Prices—For class
B stock, $150 per share; and for class C stock,
per share.
Proceeds—To purchase common stock
of General Motors Corp. through the exercise of rights

A

corporate purposes.

Jan.

as

&

to

be offered

to public.

holders

amount

share
—at

the

of

debentures

stock

common

basis

of

and

$10
$40

100%

of

principal

principal
common

of

offering will expire on Feb. 14. Price
principal amount (in denominations of

$100 and multiples thereof). Proceeds—To repay bank
lo'ah and for working capital. Underwriter—None. The
Marine Midland Trust Co. of New York, 120 Broadway,
New York, is warrant agent.

it, Hodgson Houses, Inc., Dover, Del.
F£b. 1 (letter of notification) 75,000 shares of common
stock
(par $1).
Price—$3.25 per share. Proceeds—To
reduce notes, complete manufacturing facilities and for
working capital.
Underwriter — Draper, Sears & Co.,

Boston,

Mass.

U International

Spa, Inc., Reno, Nev.
Nqv. 23 filed 12,000 shares of common stock (no par).
Pjrice—$500 per share.
Proceeds—For land, construc¬
tion, working capital, etc. Underwriter—None.

1/ 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¬
mon, stock (no par). Price—For preferred, $20 per share;
and for common. $2 per share. Proceeds—For working
capital. Office—3603 Broadway, San Antonio, Tex. Un¬
derwriter—Interior Securities, Inc., San Antonio, Tex.

/Jarmon Properties & Oil Development Corp.
17 (letter of notification) 30,000 shares of captal
stock. Price—At par ($10 per share). Proceeds—For fur¬
ther exploration and development.
Addres—P. O. Box
1109, Wichita Falls, Tex. Underwriter—John A. Aicholtz
& Associates, 505 Macon St., Fort Worth, Tex., and an¬
Jan.

other.

Justheim Petroleum Co., Salt Lake City, Utah
9

(N. Y.)
120,000 shares of common
stock (par 50 cents). Price—$2.50 per share. Proceeds
—For machinery and equipment, further development
and research, and working capital. Business—Electronic,

holders
on

The

held.

stock

(letter of notification)

Inc.

convertible

of

mon

Ohio.

former

Co.,

amount of non-convertible debentures for each

Dec.

Co., Cleveland,

and

Statler

For capital improve¬

—

15-year convertible de¬

bentures, due Jan. 1, 1970, and $31,915,600 of 4%% 15debentures due Jan. 1, 1970, being offered to cer¬

tain

Office—Beverly, Ohio. Un¬

it Granco Products, Inc.

Feb. 4

Dec. 23 filed $7,978,900 of 4^%

(letter of notification)

Proceeds

2,650,000

shares of

Phillips Petroleum Bldg., Salt Lake City, Utah.
writer—Hunter Securities Corp., New York.
Kansas City
Jan.
1985.

19

com¬

(par five cents). Price—10 cents per share.
For oil and mining expenses.
Office—318

—

filed

Under¬

Power & Light Co. (2/15)
of first mortgage bonds

$16,000,000

due

Proceeds—To repay bank loans and for new con-

Volume

181

Number

5402 ...The

Commercial

and

Financial Chronicle

(735)
struction.

Underwriters—To be determined by competi¬

not

tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers and Bear, Stearns & Co. (jointly);
Kuhn, Loeb & Co., Salomon Bros. & Hutzler and Union

Securities

Corp.

(jointly); Glore,

Securities

pected

to be received up to 11
change place, New York, N. Y.

at 20

Ex¬

,

for

of

properties, and for machinery and
equipment. Under¬
writers—Allan H.
Investments, Ltd.; Alator Corp., Ltd.;
Louis

it North American Television
Productions,

Inc.
(letter of notification)
100,000 shares of common
(par 10 cents). Price—$3
per share.
Proceeds—^
For production of
films, working capital, etc. Business
—Production and distribution of
motion- pictures for
stock

,

Co., Hialeah, Fla.

Frank

—

D.

Newman

-

,

&

,

^lEvlsl0n'

due five years from date of issue.

Price—At par.
for

&

,

Northwestern

Federal

working capital.

Bldg.,

•

Lehman

Jan.

20

Corp.,

New York

For

6

4zU,623 shares of capital stock (par $1)
being oferedTor subscription by stockholders of record
Feb. 8

held

ihe basis of

on

(with

pire

an

one

new

share for each

Missouri

oversubscription privilege); rights to ex¬
Price—$43.25 per share. Proceeds—For

—

investment.

Underwriter—None.

Liberty Uranium Corp., Salt take City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock
(par one cent).
Price—Three cents per share.
Proceeds—For mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
Strike

Oct.

-

-

stock (par one cent).

mon

Price—Three cents

share.
Proceeds—For exploration and development costs. Office
—239 Ness Bldg., Salt Lake City, Utah.
UnderwriterUtah Securities Co., same city.
per

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of
stock

mon

(par

com¬

one

writer—Mid-Coninent Securities, Inc., the same city.

it Marble Canyon Uranium, Inc.
(letter of notification)

20,900,000 shares of com¬
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining operations. Office—587
11th Ave.,
Salt Lake City, Utah.
Underwriter—Potter Investment
Co., same city.
—

Casualty

Co.,

Baltimore,

Md.

(2/24)

Feb. 3 filed 296,050 shares of common stock
(par $1) to
be offered for subscription
by common stockholders of
record Feb. 24 on the basis of one new share for each six
shares held; rights to expire March 10.
Price—To be
supplied by amendment. Proceeds — To retire 213,748
shares of $2.10 preferred stock at
$52.50 per share; and
for
working capital.
Underwriter
Merrill
Lynch,
—

Pierce, Fenner & Beane.

Trust.

(Boston, Mass.)

2,241,800 shares of beneficial interest

Price—At market.

on

the

(3/2-3)
$25,000,000 of sinking fund debentures due
1, 1980. Price — To be supplied by amendment.
Proceeds
For working capital and for current and
future expansion projects.
Underwriters
Goldman,
9

filed

March

—

—

Sachs

&

Co.

and

Lehman

Brothers, both of New York.

it McCormick & Co., Inc., Baltimore, Md.
Feb. 2 (letter of notification)
1,666 shares of non-voting
common

at

$30

stock

per

fice—414

(no

par). Price—At market (estimated
Proceeds—For working capital.
Of¬

share).
Light St.,

Baltimore

2,

Md.

Underwriter—

None.
•

Merritt-Chapman & Scott Corp.

Dec.

21 filed
3,018,567 shares of common stock (par
$12.50) being offered in exchange for
outstanding stock
of New York
Shipbuilding Corp., Devoe & Raynolds
Co., Inc.. Newport Steel Corp., Marion Power Shovel
Co., Osgood Co. and Tennessee Products & Chemical

Corp.
of the

$5)

the

following basis: 675,549 shares
540,439 outstanding shares of common

on

of Tennessee

Products

&

Chemical

to

holders

stock

Corp.,

at

(par
the

of 114 shares for each share of
common
stock of
Tennessee; 755,105 shares to holders of the
453,063 out¬
rate

standing shares of class A stock (par $2) of Devoe &
Raynolds Co., Inc. at the rate of 1% shares
for;r each
share of class A stock of
Devoe; 242,700 shares to holders
of the 182,025 outstanding shares of class B
common
stock (par $1) of
Devoe, at the rate of 1% shares for
each of class B

common

stock of Devoe;

1,290,252 shares
1,290,252 outstanding shares of common
of New York Shipbuilding
Corp., at the

to holders of the

stock

(par $1)

rate of

one

share for each share of

common

stock ofN. Y.

Shipbuilding; 27,907 shares to holders of the 58,605~outstanding shares of common stock (par $1) of Newport Steel
Corp., not owned
for each 2.1

shares

to

common

by Merritt, at the rate of

shares of

holders
stock

of

Business—To

form

Edward J. Brady,

17, N. Y.
•

New

Jan.

national

a

magazine.

Office—c/o

Secretary, 60 East 42nd St., New York

Underwriter—None.

Canaan

Co., Greenwich, Conn.

(2/14-18)

be

(letter of notification) 4,208 shares of class A
(no par) and 1,052 shares of class B stock (no par)
offered

in

units

of

four

class

A

shares

and

one

class B share.

Price—$95 per unit. Proceeds—To A. L.
Glidden, the selling stockholder. Address
Box 1069,
Greenwich, Conn. Underwriter—Glidden, Morris & Co.,

common

the

one

share

stock of

Newport; 26,114
outstanding shargg of

17,409
(par $10) of Marion Power Shovel Co.,




New York.

at the

rate of

one

At par

new

($100

share for each five shares

—

New

Pacific

Coal

per

&

Oils,

Ltd.,

Toronto, Canada

Dec. 28 (regulation "D") 275,000 shares of

common

stock

(no par), of which 120,000 shares are to be offered in
Canada and 155,000 shares in the United States. Price—
55 cents per share. Proceeds
To selling stockholders.
—

Underwriter—L. D. Friedman & Co., New York.
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.
Pro¬
ceeds—For exploration and

development costs. Under¬
writers—Percy Dale Lanphere and R. E. Nelson & Co.,
of Spokane, Wash.

both

New

York

Shipbuilding Corp.

Dec. 6 filed 74,925 shares of common stock

(par $1) be¬
ing offered in exchange for 374,624 shares of common
stock (par five cents) of
Highway Trailer Co. at rate of
share of

common

,
4

debentures;"
of

common

Co, New York.

of
—

selling

stockholders.

To reduce

bank

loans

Pittston
14

filed

ditional

assets

and

for

working capital. Underwriter—
Co, both of New York.

Allen & Co. and Reynolds &

it Plastics Molded Arts Corp. (2/21)
(letter of notification) 100,000 shares of common
stock (par 25 cents).
Price—$3 per share. Proceeds—
Feb. 4

To acquire stock of Abell Chair &
Novelty Co, Inc. and
general corporate purposes. Business—Manufacture

for
of

plastic

products

Office—12-01

44th

by

Ave,

the

injection
Long Island

molding

process.

City, N. Y. Un¬
derwriters—Milton D. Blauner & Co, Inc., New
York;
Hallowell, Sulzberger & Co, Philadelphia; and Baruch
Brothers & Co, Inc., New York.

Nipissing

Porter-Cable Machine Co.
Jan. 27
stock

(letter of notification)

(par $10).

Mines

Co.

Ltd.,

Toronto,

Canada

Jan. 3 filed

1,200,000 shares of common stock (par $1—
Canadian) being offered as "speculative" securities for
subscription by common stockholders of record Jan. 26,
1955, on a share-for-share basis; rights will expire on
Feb. 28.
Price—$2 (Canadian) and $2.06 (U. S.) per
Proceeds—For payment

of options, development

24,000 shares of

Price—$12.50

per

common

share. Proceeds—For

working capital, etc. Office—Syracuse, N. Y. Under¬
writer—George D. B. Bonbright & Co, Rochester, N. Y.
(T. Rowe)

Feb. 7 filed
Price—At

Growth Stock Fund, Inc.
(amendment) 20,000 shares of capital stock.

market.

Proceeds—For investment.

Office—

Baltimore, Md.
Public Service Electric & Gas Co.
Dec. 22 filed 250,000 shares of cumulative
preferred stock

(par $100).

Price—To be supplied by amendment. Pro¬

ceeds—To reduce bank loans

and

for

construction pro¬

Underwriters—Morgan Stanley & Co.; Drexel &
Co.; and Glore, Forgan & Co. Offering — Temporarily

gram.

delayed.

~r

Rapid Film Technique, Inc., N. Y. City
July 30 (letter of notification) 60,000 shares of com¬
mon
stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—For working capital. Office—21 West 46th
Street,
New York 36, N. Y.
Underwriter—Jerome Rosenberg,
Future Estate

Planning. 630 McLean Ave, Yonkers, N. Y.

Rainier

Telephone Co., Rainier, Wash.
Dec. 14 (letter of notification) $85,000 of 51/2% 20-year
sinking fund bonds due Dec. 1, 1979. Price—At par (in
denominations of $1,000 each).
Proceeds—To purchase
assets of Methow Valley Telephone Co, refund mort¬
gage debt, and for working capital. Underwriter—Wm.
P. Harper & Son & Co, Seattle, Wash.
Ranger Lake Uranium Mines, Ltd., Toronto,

Shipbuilding stock for each five shares of

stock of the Trailer company.

Offer will expire
on
Feb. 15, unless extended.
As of Jan. 26, a total of
312,350 shares (83.3%) of Highway common stock have
been deposited for exchange.

share.

1970/

(par $25) and
(par 10 cents) to be

Co, New York (2/14-18)
285,000 shares of common stock (par $1),
of which 75,000 shares are to be
sold by the company
and 210,000 shares-by the Englewood Corp. Price—To
be suppiled by amendment.
Proceeds—To purchase ad¬

held.

share). Proceeds—To repay
advances from American Telephone &
Telegraph Co.,
the parent, which owns
1,769,035 shares (69.21%) of the
outstanding stock. Underwriter—None.

one

♦

Jan.

it Price

★ New England Telephone & Telegraph Co. (3/1)
Feb. 4 filed 511,205 shares of
capital stock to be offered
for subscription by stockholders of record March
1, 1955
Price

due

stock

27

stock

—

Proceeds—For investment.

it May Department Stores Co.

Feb.

it National Weekly, Inc.
notification) $232,000 4% 10-year deben¬
tures and 58,000 shares of common stock to
be offered
in units of an $80 debenture and 20
shares of stock.
Price—$100 per unit. Proceeds—For working capital.
Feb. 1 (letter of

debentures

working capital. Business—Manufacturer of elec¬
tric panel, meters, electric test
instruments, precision
resistors, aircraft and sensitive miniature relays, and
special products. Underwriter—First California
Co, San
Francisco, Calif.

Associates, 602 Tribune Bldg., Salt Lake City,

^Mountain States Uranium Corp.
(letter of notification) 182,000 shares of common
Price—At
par
($1 per share).
Proceeds—For
mining oxpenses. Office—113 West Broadway,
Farmington, N. M. Underwriter—None.

4%

and for

(letter of notification) 10,000,000 shares of com¬
Price—At par (two cents per
share). Pro¬
mining operations.
Office—470 South 13th
East, Salt Lake City, Utah. Underwriter-^-M. C. Leon¬

Feb. 4

of

preferred

40,000 shares for account
Price—$6 per share. Proceeds

stock.

and

5%

and

Jan. 28

ard

of

Phaostron Co, South
Pasadena, Calif.
Jan. 19 filed 90,000 shares of common stock
(par $1), of
which 50,000 shares are for the account of the
company

it Mother Lode Uranium Co.

Utah.

$7,500,000

A. M. Burden &

Uranium, Inc., Denver, Colo.

city.

mon

filed

shares

city.

Inc., New York

Price—To be supplied by amendment. Proceeds
acquisition of properties. Underwriter—William

—For

(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For exploration and
development operations.
Office—Ernest and Cranmer
Bldg., Denver, Colo. Un¬
derwriter—Investment Service Co., same

to

^Massachusetts Investors Trust
Feb. 3 filed

•

stock.

5

stock.

mon

it Maryland

Montezuma

same

1,000,000 shares of common stock
offered in units of $75
principal amount of
one share of preferred stock and
10 shares

stock

Jan.

27

100,000

Corp., Moab, Utah

ceeds—For

cent). Price — 10 cents per share.
Proceeds—For exploration and development expenses.
Office—65 East 4th South, Salt Lake City, Utah. Under¬

Feb. 4

Dec.

(letter of notification) 3,000,000 shares of com¬
(par one cent). ~Price—10 cents per share.
Proceeds—For exploration and
development expenses.
Underwriter—James E. Reed Co., 139 North
Virginia
St., Reno, Nev.

Jan. 4

Mac Fos Uranium, Inc., Salt Lake
City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬

Uranium

par

Petroleum Reserves,

Dartmouth, Kansas City, Mo.
Cristo

Price—At

Underwriter Co.. the

5

mon

Uranium

Corp.
(letter of notification) 4,300,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining operations.
Office—38 South Main
St., Salt Lake City, Utah. Underwriter—Seaboard Se¬
curities Corp., Washington, D. C.

Corp., Kansas City, Mo.

Associates,

Monte

Commerce

6,000,000 shares of capital
(five cents per share). Proceeds—
Office—325 Main St, Moab, Utah.;.
Underwriters-Van Blerkom &
Co, Salt Lake City, Utah.
Pay Day Uranium Co., Las
Vegas, Nev.
Oct. 15 (letter of
notification) 2,500,000 shares of capital
stobk (par two cents). Price—10
cents per share.
Pro-i
ceeds—For exploration and
development costs. Office—
230 Fremont
St, Las Vegas, Nev. Underwriter—Allied
stock.

per unit.
Proceeds—For exploration and develop¬
ment, etc. Underwriter—Dale E. Klepinger &

203 W.

30

For mining
expenses.

—$5

.

Lucky

Uranium

Price—

short-term

Paramount Uranium
Corp., Moab, Utah
Oct. 7 (letter* of
notification)

Jan. 24 filed 150,000 shares of
preferred stock (par $5)
and 150,000 shares of common stock
(no par) to be of¬
fered in units of one share of each class
of stock. Price*

Feb. 23.

on

;

'

general corporate purposes. Office—23
10($Maih St.,5
Underwriter—Cobb & Co., Inc., same-

city.

of New York.

notes, and for Working capital. Office
St, "Stamford,' Conn.
Underwriter—None.

Houston, Texas.

10 shares

St„ New York, N. Y. Underwriters
Qo., Inc. and Baruch, Brothers

Blauner

At par

*

Dec. 1

filed

exhibitions.

of one new snare for
each six'shares held.
($1 per 'share). Proceeds—To retire

be

Military Investors Financial Corp.
(letter of notification) 150,000 shares of common
stock (par 25 cents).
Price^—$2 per share.''Proceeds—

Minneapolis,

non-theatrical

Olympic Development Co.,
Stamford, Conn.
13 (letter of
notification) 29,698 shares of common
stotfk; tit be offered for
subscription by stockholders* at '
rate

,

Office—305

Minn.- Underwriter—Daniels & Smith, Inc., same city.

D.

Co, Inc., both

and

Jan.

par

Pro¬

theatrical,

—222 East 46th

—Milton

Co..

(subordinated) due Feb. 1, 1965:
offered initially to stockholders.
Price—100%* of
(in units of $100 or multiples thereof). Proceeds—
For working capital, etc.
Office—22 Jericho Turnpike,
Mineola, N. Y. Underwriter—None.-1 \ ^
to

Chester; and Bradley Streit; all of Toronto,
'

Feb. 3

machinery, and for work¬

new

Underwriter

A.

Canada.

convertible debentures

ceeds—To

and

shares

Micro-Moisture Controls, Inc.
Jan. 13 (letter of notification)
$250*000 of 6%% income

Co., Minneapolis, Minn.
Nov. 3 (letter of notification) 13,000 shares of preferred
stock (par $10) and $170,000 of 8% subordinate notes
loans

materials and

raw

Miami, Fla.

Lea Finance

bank

1%

pur¬

chase

ing capital.

—

reduce

of

will

Mi-Ame Canned Beverages

Mines, Ltd., Toronto, Can.
Aug. 2 filed 660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be offered in
behalf of the company and 160,000 shares for account
of Percy E. Rivett. Price—40 cents per
share, U.S. funds.
Proceeds
For development and- exploration expenses.
■

rate

of

Oct. 28 (letter of notification)
200,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To

Lake Lauzon

Underwriter—To be named by amendment.

the

stock

common

common stock of
Osgood.
expire on Feb. 28. Dealer-Manager—A. C.
Allyn & Co., Inc. for Devoe & Raynolds exchange.

Offer

Bids—Ex¬

(EST)

a.m.

Corp.

at

of

holders

for each 1% shares of class B

Weld & Co. and Shields & Co. (jointly); Harriman Rip¬

Co., Inc.; Equitable

by Merritt,
of

Marion; and 940 shares
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

Forgan & Co.; Blyth
& Co., Inc. and The First Boston Corp.
(jointly); White,

ley &

owned

each share

to

39

Canada
Dec. 30 (regulation "D") 300,000

shares of common stock

(par 10 cents). Price—$1 per share. Proceeds—For gen¬
corporate purposes.
Underwriter—James Anthony

eral

Securities Corp, New York.
•

Rare

Earth

Ltd.
(Regulation "D") 242,850 shares of
common
stock.
Price—$1 per share.
Proceeds — For
general corporate purposes. Underwriter — James An¬
thony Securities Co, New York.
Nov.

18

Mining Corp. of Canada,

amendment

^

Continued

on

page

40

The Commercial and Financial Chronicle
40

...

Thursday, February

10, 1955

(736)

Slick Rock Uranium

Continued from page

Electric &

* Reliance
Feb.

of common stock

supplied by amendment
Proceeds—lo
Reeves Pulley Co., who with its subsidiary is selling
their operating assets for 80,000 shares of Reliance stock
and cash.
Office — Cleveland, Ohio. Underwriter —
be

Price—To

Blyth & Co., Inc.,

New York and

San Francisco.

3,000 shares of common

selected
employees. Price-$100 per share. Proceeds-For working capital.
Office—90 lairlie St., N.W., Atlanta, Ga.
to be offered

(no par)

stock

for subscription by

Underwriter—None.

Argentine Mining Co.

Rico

(letter of notification) 70,395 shares of common
stock (par 50 cents), being offered for subscription by
stockholders of record Jan. 14 on the basis of one new
shares for each 12Y2 shares held (with an oversubscrip¬
2

Dec

privilege); rights to expire on Feb. 28. Price—$4.25
per share.
Proceeds—-Toward payment of construction
of sulphuric acid plant at Rico, Colo. Office—132 South
Main St., Salt Lake.City, Utah. Underwriter—None, but
Bonneville-On-The-Hill Co., a stockholder will subscribe
for all shares not taken by other stockholders. Subscrip¬
tion

Guaranty Trust Co. of New York,
Broadway, New York 15, N. Y.
Agent

tion

—

140

Gas & Electric Corp. (2/24)
Feb. 3 filed $10,000,000 first mortgage bonds, series O,
due 1985.
Proceeds—For construction program, includ¬
ing the discharge of $9,200,000 short term obligations.
Underwriter—To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Salo¬
mon Bros.
& Hutzler and Stroud & Co., Inc. (jointly);
Shields & Co.; Union Securities Corp., Equitable Secu¬
rities Corp. and Glore, Forgan & Co. (jointly); Blyth &
Co., Inc.; The First Boston Corp. and Smith, Barney &
Co. (jointly).
Bids—Expected to be received up to 11
* Rochester

(EST)

а.m.

on

Feb. 24.

Rolon Tire Chain Corp.,

27

Oct.

stock.

(letter of notification) 60,000 shares of common
Price—$1 per share. Proceeds—For increased in¬

ventory, working capital, sales and production expenses,
Office—150 Tejon St., Denver, Colo. Underwriter-

etc.

city.

/ >

Cleveland, O.
Jan. 28 (letter of notification)
833 shares of common
stock. Price—$60 per share. Proceeds — For working
capital and general corporate purposes.
Office—26300
Lakeland Blvd., Cleveland 32, Ohio. Underwriter—None.
Rotor

subscription by common stockholders at the rate
new share for each 4%
shares held; and 70,000

city.

same

Inc. (2/16)
1,200,000 shares of com¬
mon stock
(par one cent). Price — 25 cents per share.
Proceeds—For mining expenses. Address—P. O. Box 330,
Edgemont, S. D. Underwriter—Capper & Co., New York.
Sodak Uranium & Mining Co.,

•

(letter of notification)

13

Solomon Uranium & Oil Corp.,
7

Bldg., Salt Lake City, Utah, and 1016 Baltimore Bldg.,
City, Mo. Underwriter—E. R. Bell & Co., Kansaj

Kansas

City, Mo.
it South Carolina Electric & Gas Co. (2/24)
Feb. 2 filed 210,053 shares of common stock (par $4.50)
be offered for subscription by common stockholders
ef record Feb. 24 on the basis of one new share for each

to

(with an oversubscription privilege);
rights to expire on March 10. Price—To be supplied by
amendment.
Proceeds—For new construction program
15

shares

held

and to furnish

portion of additional equity capital re¬

a

quired by South Carolina Generating Co., a subsidiary.
Underwriter—Kidder, Peabody & Co., New York.

it South

Natural

Georgia

filed

Gas

(2/24)

Co.

4

157,500

—

fice—Birmingham, Ala. Underwriter

Shields & Co.,

—

New York.

Jan. 24

stock

Public Service Co.

(letter of notification) 28,000 shares of common
10

(par

Tool Co.,

* Rowland Products, Inc., Berlin, Conn.
28 (letter of notification) 5,727 shares of common
-stock to be offered for subscription by stockholders of

stockholders owning not in excess of
Office—70 Pine St., New
Underwriter—None.

Hamilton

by

8,000 shares of Hamilton stock.
York

5, N. Y.

Star Uranium

Corp., Salt Lake City, Utah
Aug. 2 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds
For exploration
and development costs
—

Underwriter—Ned J. Bowman Co., Salt Lake City,

Utah

share of each class of stock. Price

Jan.

offered in units of

the rate of one new share for each
two shares held; rights to expire on March 4,1955.
Price
—At par ($25 per share).
Proceeds — For purchase of
machinery and equipment. Office—Fairview Place, Ber¬

construct and equip a luxury hotel. Underwriter—None.

record Feb. 1, 1955 at

Onderwriter—None.

lin, Conn.

jr Ruidoso Chinchilla Farms,

(letter of notification) 49,000 shares of capital
($1 per share). Proceeds—To buy
chinchillas and for working capital. Address—P. O. Box

Underwriter—None.

(letter of notification) $150,000 of 5% notes and

б.000 shares of common stock (par $1) to be offered first

in units of $1,000 of notes and 40 shares

to stockholders

Price—$1,000 per unit.

of stock.

capital.
writer

Proceeds—For working

Office — Asnebumskit, Paxton, Mass. Under¬
Kinsley & Adams, 6 Norwich St., Worcester,

Samicol Uranium Corp., Santa Fe, N. M.

14 filed 300,000 shares of common stock (par 10
cents).
Price—$2 per share.
Proceeds—For develop¬
Sept.

and

V.

Klein

New

exploration
Co.

and

etc.
Underwriters—R
Securities Corp., both of

expenses,

McGrath

York.

San
Jan. 6

(par

one

Jersey City, N. J.

it Sheraton Corp of America (2/24)
Feb. 4 filed $10,000,000 of 4%% convertible debentures
due March 1, 1967.
Price—To be supplied by amend¬
ment.
Proceeds—To be used principally to reduce short
term

bank

loans.

Underwriters—Paine, Webber, Jack¬
son
& Curtis; White, Weld & Co.; Lehman Brothers;
Hemphill, Noyes & Co.; and Hamlin & Lunt.
it Shumway Uranium Mining Corp.
Jan. 28 (letter of notification) 200,000 shares of capital
scock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—64 East 4th South St., Salt Lake
City, Utah.

par)

(no

Underwriter—Doxey Investment Co.,

same

city.
Silver Pick

to

be offered

to

and

general

employees.

Price—At

Montgomery

corporate

funds.

Philadelphia,

Ave.,

Office—Fifth St.
Pa. Underwriter

—None.

Stewart Uranium
3

Drilling Co., Inc.

(2/14-18)

A debentures due
Aug. 1, 1961, and $1,000,000
series B convertible debentures due serially from
Feb. 1, 1962 to Aug. 1, 1966. Price—To be supplied by
amendment. Proceds—To construct and operate a manu¬
facturing plant near Orange, Tex., for the purpose of
manufacturing
insulation building products.4;1 Under¬
writer—Emerson Cook Co., Palm Beach, Fla.
serially from Feb. 1, 1957 to

of 6%

Uranium,

Inc., Reno, Nev.
1
Nov. 22 (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
—Western Securities Corp., Las Vegas, Nev.
Silver Reef Uranium

Co., Salt Lake City, Utah
Jan. 17 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses. Office—130 South 13th
East, Salt Lake City, Utah. Underwriter—Peters, Writer
& Christensen, Inc., Denver, Colo.
.

Nev.

Thunderbird Uranium Co., Reno,

(letter of notification) 1,800,000
stock (par 10 cents). Price — 15

Aug. 3
mon

Proceeds—For mining

St., Reno, Neb.

shares of com¬

cents per share.
activities. Office—206 N. Virginia

Underwriter—Stock, Inc., Salt Lake City.

it Thunderbolt Uranium Corp., Salt Lake City, Utah
Jan. 31 (letter of notification) 22,000,000 shares of capi¬
tal stock. Price—At par (one cent per share). Proceeds

Office—2507 South State St., Salt
Underwriter—Melvin G. Flegal & Co.,

mining expenses.

For

City, Utah.

same

city.

.

^ Tip Top Uranium & Oil, Inc., Denver, Colo.
1 (letter of notification) 30,000,000 shares of com¬
stock.
Price—At par (one cent per share). Pro¬

Feb.
mon

expenses.
Office—1122 Mile High
Colo. Underwriter—Robert W. Wil¬
1717 East Colfax Ave., Denver, Colo.

mining

son,

Top Notch Uranium & Mining Corp.
(letter of notification) 4,000,000 shares

of common
Five cents per share.
development expenses.
Office—94
North Main St., Smithfield, Utah.
Under¬
writer—Lewellen-Bybee, Inc., 1627 K St., N. W., Wash¬
Jan. 5

stock

(par

Proceeds

Price

cents).

two

—

For exploration and

—

ington, D. C.

t

Trans-Continental

Uranium

Corp.

(letter of notification) 2,990,000 shares of com¬
Price—At par (10 cents per share). Pro¬

Oct.

1

mon

stock.

exploration and development costs.
Office
Salt Lake City, Utah. Underwriter
—Western Securities Corp., same city.

ceeds—For

Ucolo Uranium

Co., Salt Lake City, Utah

Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For exploration and development w«+q. Of-;
fice—906 Walker Bank Bldg., Salt Lake City, Utah. Un¬
derwriter—Western Securities Corp.,

the

same

city.

Uranium, Inc., Salt Lake City, Utah.

Uintah

(letter of notification) 15,000,000 shares of com¬
(par one cent). Price—Two cents per share.
For exploration and
development costs.

Oct.

5

mon

stock

Proceeds

—

Judge Bldg., Salt Lake City, Utah.
city.

Office—424

500,000 shares of class A
stock (par one cent).
Price—50 cents per share. Pro¬
ceeds—For mining expenses.
Office—Citizens National
Bank & Trust Bldg., Baytown, Texas.
Underwriter—
General Investing Corp., New York.

Superior Uranium Co., Las Vegas, Nev.
(letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds

Ceramic Tile Co.

States

United

(letter of notification)

Jan. 31 filed

which 8,538

Under¬

(2/23)

70,000 shares of common stock (par $5), of
shares are to be offered by the company and

61,462 shares by certain selling stockholders. Price—To
be supplied by amendment.
Proceeds — For working
capital and general corporate purposes. Office—Canton,
Ohio.
Underwriter — Granbery, Marache & Co., New

Sept. 1

York.

Jan.

Brokers, Inc., the
Swedes
Jan.

5

mon

same

Uranium

stock

(letter

of

city.

notification)

2,500,000

shares of

com¬

Price—10 cents per share.
and development expenses.

Office—Newhouse Bldg., Salt Lake City, Utah.
writer—Guss & Mednick Co., same city.

Under¬

Office —1406

Texas.
Lake

Life

Underwriter

—

of

America

Western

an

cents

offer of rescission to 37 shareholders at
share; and 2,000,000 shares are to be

per

at 10 cents per share. Proceeds—For
Underwriter—John L. Donahue, 430
Street, Denver 2, Colo.

publicly offered
mining
16th

expenses.

Universal Petroleum Exploration & Drilling Corp.
Oct. 4 (letter of

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.

mon

Uranium Corp., Denver, Colo.

(letter of notification) 4,133,329 shares of com¬
stock (par one cent), of which 2,133,329 shares are

26

three

(par three cents).

exploration

United

covered by

Corp., Salt Lake City, Utah

Building, Dallas,
Corp., Salt

Securities

City, Utah.

notification) 300,000 shares of common
($1 per share). Proceeds — For
cost of Driller Boy (drilling equipment which company
rents out), and working capital.
Office—c/o Edwin J,
Dotson, attorney-at-law, Simon Bldg., 230 Fremont St.,
Las Vegas, Nev.
Underwriter—Robert B. Fisher In¬
vestments, 510 South Pifth St., Las Vegas, Nev.
Price

stock.

—

At par

Urainbow, Inc., Salt Lake City, Utah

Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of com¬
mon
stock.
Price—10 cents per share.
Proceeds—For
exploration and development expenses.
Office — 317
Railway Exchange Building, Denver, Colo. Underwriter
—E. I. Shelley Co., Denver, Colo.

(letter of notification) 2,000,000 shares of com¬
(par two cents). Price—15 cents per share.

Aug. 31
mon

stock

Proceeds

—

For exploration and development expenses, f

Office—908 Kearns Bldg., Salt Lake City, Utah.
writer—Austin B. Smith Brokerage
Uranium

Oct.

7

mon

(letter of notification) 3,500,000 shares of com¬
(par 2^ cents). Price — 3 cents per share
exploration and development expenses

Office—39

Exchange Place, Salt Lake City/ Utah.
derwriter—Walter Sondrup, same city.
Texas
Jan.

1.9

$17,000,000

Proceeds—To

1985.

for

Electric Service Co.

filed

construction

mined
sey,

of

redeem

program.

Stuart

&

Co.

mortgage

$7,000,000 3%%

Underwriter—To

due

bonds and
be

deter¬

Probable bidders:

Hal¬

Inc.; The First Boston Corp.; Kuhn,

&
Co., Blyth Co., Inc. and Lehman Brothers
(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &
Co.
and
Merrill
Lynch,
Pierce,
Fenner
&
Beane

Union

Securities

Idaho

ceeds—For
claims.

drilling

core

Corp.,

program

upon

groups of
Underwriter

two

Address—Box 709, Wallace, Idaho.

—Wallace Brokerage Co., same city.

Denver, Colo.

(letter of notification) 30,000,000 shares of com¬
stock.
Price—At par (one cent per share).
Pro¬

Dec. 22

bonds

Loeb

(jointly);

city.

16

Uranium Shares, Inc.,

(2/23)

first

by competitive bidding.

Un¬

Under¬

same

(letter of notification) 1,000,000 shares of capi¬
tal stock.
Price—At par (five cents per share).
Pro¬
Nov.

stock

Co., the

Discovery & Development Co.,

Wallace,

Temple Mountain Uranium Co.

Proceeds—For




Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series

writer—James E. Reed Co., same

Proceeds—For

Miguel Uranium Mines, Inc.
(letter of notification) 2,000,000 shares of common

cent). Price—15 cents per share. Pro¬
ceeds— For mining operations. Office — Mineral Bldg.,
Grand Junction, Colo.
Underwriter — Tellier & Co.,

stock

stock

forts" basis.

—For development and exploration costs. Office—Medi¬
cal Arts Bldg., Las Vegas, Nev.
Underwriter—Uranium

—

Mass.

ment

it Stetson (John B.) Co., Philadelphia, Pa.
31 (letter of notification) 12,500 shares of common

Jan.

Salisbury Broadcasting Corp., Paxton, Mass.
Jan. 20

unit.. Proceeds—For purchase of land and to

Jan.

ceeds—For

Inc.

Price—At par

654, Ruidoso, N. M.

per

95% of fair market value (about $23.28 per share). Pro¬

31

Jan.

stock.

—$10.01

Proceeds—For exploration

payment of bank loans and advance.
York, on a "best ef¬

—358 S. 3rd St. East,

Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one cent) to be
one

shares
Price -To

Center, Denver 2,

cents) to be offered in exchange for
Hamilton Gas Corp. capital stock (par $1) on the basis
of 3Vz Southeastern shares for each Hamilton share. This
ed

supplied by amendment.

and drilling, and

ceeds—For

Southeastern

selling stockholders.

Underwriter—Vickers Brothers, New

Lake

shares of common stock (par $1).
Price
$6 per share.
Proceeds — Together with other
funds, to construct and operate a pipe line system. Of¬
Feb.

be

of one

Jan.

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
Oct.

for account of certain

are

offer shall terminate when offer shall have been accept¬

Denver, Colo.

Peters, Writer & Christensen, Inc., same

pected to be received up

of common
stock (par five 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.,

Jan.

Ga.

* Retail Credit Co., Atlanta,
Jan
28 (letter of notification)

(jointly). Bids—Tentatively ex¬
to 11:30 a.m. (EST) on Feb. 23.
Texas International Sulphur Co.
June 21 filed 455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered for
and Drexel & Co.

Co.

Development Corp.

notification) 2,900,000 shares

Oct. 8 (letter of

Engineering Co. (3/1-2)

500,000 shares

filed

8

39

Hemphill, Noyes

&

mon

ceeds—For

Denver,
ver,

Office—3038 Wyandot St.,
Underwriters—Kamp & Co., Fred W.
Mile High Securities Co., all of Den¬

mining expenses.

Colo.

Miller &

*

Co. and

Colo.

it Urvan Uraniiitn & Oil, Inc., Denver, Colo.
Feb. 1 (letter of notification) 30,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share). Pro-

|

Volume 181

Number 5402

...

The

Commercial and

\

Financial Chronicle

(737)
ceeds—For

mining expenses. Office—718 Symes Bldg.,
Denver, Colo. Underwriter—Not yet named.

company's

Oct.

7

stock (par one cent).
Proceeds—For exploration
mon

Price—Five cents
and

Securities

Corp.,

Vegas,

Las

Nev.

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. Proceed®—
For mining operations.
Underwriter—Sheehan & Co.,

Proceeds—For

exploration and development expenses.
Office—430 Judge Bldg., Salt Lake
City, Utah. Under¬

city.

same

Boston, Mass.

Utah Uranium Corp., Las
Vegas, Nev.
Aug. 20 (letter of notification) 10,000,000 shares of capi¬
tal stock (par 1 cent). Price — Three cents
per share.
Proceeds—For exploration and development expenses.
Office—1818 Beverly Way, Las Vegas, Nev. Underwriter
—First Western Securities, same
city.
Vada

Proceeds—For

St., Ely, Nev.
River, Mass.

mining expenses. Office—280 Aultman
Underwriter—Bristol Securities Co., Fall

Vulcan-Uranium Mines, Inc., Wallace, Idaho
Oct. 15 (letter of
notification) 1,500,000 shares of
mon stock.
Price—At par (five cents per share).

Pro¬

ceeds—For expenses .incident to
mining operations. Ad¬
dress—P. O. Box 289,
Wallace, Idaho. Underwriter—Alden

J. Teske, d/b/a Wallace
Hotel, Wallace, Idaho.

Brokerage

Co.,

Samuels

Webster. Uranium Mines, Ltd., Toronto, Canada
Dec. 30 (regulation "D")
300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For
gen¬

eral

corporate purposes.
Underwriter—James Anthony
Securities Corp., New York.

Wenga Copper Mines, Inc., N. Y.
Nov.

18

(Regulation "D") 900,000 shares of common
stock (par five cents). Price—30 cents
per share.
Pro¬
ceeds—For

general

corporate

Underwriter—

purposes.

Willis E. Burnside &
Co., New York.

West Coast Pipe Line
Co., Dallas, Tex.
Nov. 20, 1952 filed

ture and

one

amendment.

Weld

&

crude

Co.

oil

and

pipeline.

Union

to

Underwriters

build

a

White,
Corp., both of New

Securities

ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.
filed

Schwanz & Co., Inc.,
Aurora, 111.

Mestport Properties Corp., Kansas City, Mo.

Jan.
to

27

be

filed

479,158 shares of

offered

common

stock

subscription by stockholders of Chi¬
cago, Aurora & Elgin Ry. Co. at rate of one
Westport
share for each Chicago, Aurora &
Elgin share held. Price
■—$2

per

share.

Proceeds—To repay bank loans and for

working capital. Underwriter—George K. Baum &
Co.,
Kansas City, Mo.
it White

Canyon Mining Co., Dove Creek, Colo.
filed 3,000,000 shares of common stock
(par 33%

Feb. 4

cents).
and

Price—$1

share.

per

Proceeds—To

repay

and

Lake

City, Utah.

working capital. Underwriters—Joseph McManus & Co., New
York; and A. P. Kibbe & Co., Salt

Winfield Mining Co.,
Moab, Utah.
(letter of notification) 500,000 shares of common
stock (par five
cents). Price—20 cents per share. Pro¬
ceeds—For mining expenses.
Office—M. L.
Jan. 20

C.

Bldg.,
P. O. Box
648, Moab, Utah. Underwriter—Security Ura¬
nium Service, K. O. V. O.
Bldg., Provo, Utah.
,

Jan.

28

Fund, Inc., Baltimore, Md.

filed 500,000 shares of

market.
come

Income

Proceeds—For

capital stock.

investment.

Price—At

Managers Inc., New York, which is under the

rection

of

its

Consensus Inc.

di¬

President, Pierre A. DuVal, of DuVal's

Woodland Oil & Gas
Co., Inc.
(letter of notification) 299,900 shares of common
stock (par 10
cents). Price—$1 per share. Proceeds—
For equipment,
drilling expenses and working capital.
Office—42
Broadway, New York, N. Y. Underwriter—
E. M. North
Co., Inc., same address.
World Uranium
Dec. 21

July 21

(letter of

stock

mon

(par

it

was

announced

plans to

company

Mining Corp.
notification) 9,996,000 shares

one

cent).

share.

Price

—

Three

issue

and

1985. Proceeds

repay

and Drexel & Co.

(jointly); The First Boston
Corp.; Lehman Brothers; Harriman Ripley & Co.
Inc.;
Blyth & Co., Inc. and Kidder, Peabody & Co.
(jointly).
Bids—Expected to be received up to 11 a..m.
(EST) on
May 31. Registration—Scheduled for May 4.
it Arkansas
Feb.
to

4 it

Power

was

issue

and

&

of

cents

com¬

pel

Proceeds—For exploration and
development ex¬
Office—323 Newhouse
bldg., Salt Lake City,
Underwriter—P. G. Christopulos &
Co., same city.
Wynn Pharmacal Corp.

penses.

sell

company plans later this year
first mortgage bonds due 1985.

some

be determined

by competitive bidding.
Halsey, Stuart & Co. Inc.; Lehman
Brothers and Stone & Webster Securities
Corp. (jointly);
Blyth & Co., Inc. and Central Republic
Co., Inc. (joint¬
ly); Merrill Lynch, Pierce, Fenner &
Beane; Equitable
Securities Corp. and Union Securities
(jointly); White,
Weld & Co.; The First Boston
Probable

bidders:

Corp.

23

common

Proceeds

(letter
stock
—

of

notification)

(par

10

cents).

85,000 shares of class B

Price—$2.50 per share.
For
production, development and sale of




one

share for each two shares

new

share. Meeting—Stockholders will
approving offer.

Atlantic Steel Co., Atlanta, Ga.
(3/7)
was reported
company plans to issue and sell
200,000 shares of common stock (par $5). Proceeds—

capital expenditures.
Atlanta, Ga.

Underwriter—Courts

&

Co.,

19 company

bidding of

ceeds—For

up

sought ICC exemption from competi¬
to $345,000,000 of new securities. Pro¬

refunding.

sales

were

Underwriter—Previous

handled

cost

by

Kuhn,

Loeb

&

negoti¬

Co.,

York.

New

Barry Controls, Inc.
was

shares of

common

reported that early registration of 100,000
stock is planned
(including part for
selling stockholders account).

ber, Jackson & Curtis.

Underwriter—Paine, Web¬
Offering—Expected late in Feb¬

ruary.

Bishop Oil Co.
Jan.

31

31

it

was

(3/16)

announced

of two

shares

new

expire

March 30.

on

it Cafalin
Feb. 2 it

for

that directors

each

shares

approved

stock
14

on

(par $2)
the basis

financing.

issue

Underwriter—To be named later,

Corp. of America
reported that company plans to offer pub¬
shares of convertible preferred stock
(par

licly 50,000
$20). Registration—Expected late in
February.
writer—Fulton, Reid & Co., Cleveland, Ohio.

Under¬

31, W. F. Wyman, President, stated that company
plans to issue and sell some additional common
stock,
par $10 (probably to
stockholders). Proceeds—For con¬
struction program.
Underwriter—May be determined by
competitive bidding. Probable bidders: The First Boston
Corp. and Coffin & Burr, Inc.
(jointly); Harriman
Ripley & Co. Inc.; Blyth & Co., Inc. and

Kidder, Pea-

body & Co. (jointly).
Central
25

about

National

Bank
were

of Cleveland

171,875 additional shares of capital stock

on

basis

of

one

of

new

record

share

Jan.

Feb. 16.

(par $16)

for

approximately four
19; with rights to expire on

Price—$32.50 per share. Proceeds—To increase
capital and surplus.
Underwriter
McDonald & Co.,
Cleveland, Ohio.
•

Chicago & Eastern Illinois RR.
Jan. 25 the company's offer of
$15,336,480 of 5% income
debentures due Jan. 1, 2054, in
exchange, par for
par,

outstanding 383,412 shares of class A stock (par

extended to expire on March
1, 1955. City
National Bank & Trust Co.,
Chicago, 111., and City Bank
Farmers Trust Co., New York, are
exchange agents.
was

Chicago, Rock Island & Pacific RR.
Jan. 11, J. D.
Farrington, President, announced that

Stanley & Co.; Lehman Brothers, Lazard Freres & Co.
and Bear, Stearns & Co.
(jointly). Exemption from the
competitive bidding rule was asked on Jan. 20. If all
common
no

of

preferred

stock

on

a

stock

convert

share-for-share

their

basis

shares

into

there will

be

21

vote

on

it

was

Citizens National Trust &
Savings Bank of
Los
14

Angeles
stockholders

of

record

Jan.

announced

stockholders on May 2 will
authorizing about $60,000,000 of convertible de¬

bentures.

Previous offer of convertible
debentures
made to stockholders without
underwriting.
Erie

was

RR.

company asked ICC for authority to issue
$40,288,200 of 5% income debentures due Jan.
1, 2020, which
are to be offered in
exchange for 402,882 shares of out¬
standing series A preferred stock on basis of
$100 of

debentures for each share of stock.

11

'

+ Flo-Mix Fertilizers Corp.,
Houma, La.
Feb. 7 it was reported
company plans early registration
of 585,000 shares of common
stock.

Price—Expected

$5 per share.

Business—Distributes fertilizers

chanical applicators for their
W. Tschirn, Delta

use.

and

at

me¬

Underwriter—Charles

Bldg., New Orleans, La.

Georgia Power Co.
Dec.

30

sell

it

was

(5/10)

announced

company plans

$12,000,000 of first mortgage bonds

ceeds—To

retire

bank

loans

and

to

due

issue
1985.

and
Pro¬

for

construction pro¬
determined by competitive
Halsey, Stuart & Co. Inc.;
The First Boston
Corp.; Lehman Brothers; Union Securi¬
ties
Corp. and Equitable Securities
Corp.
(jointly);
Morgan Stanley & Co.; Kuhn, Loeb &
Co.; Shields &

Underwriter—To

be

bidding. Probable

bidders:

and Salomon Bros.

&

Co.

Hutzler
(jointly); Harriman Ripley
Inc.; Blyth & Co., Inc. and Kidder,
Peabody & Co.

(jointly). Bids—Expected
(EST)

to

be

received

up

to

11

a.m.

May 10. Registration—Scheduled for
April 13.

on

Giddings & Lewis Machine Tool Co.
Jan. 26 it
on

was

announced

stockholders will vote Feb. 15

increasing authorized
shares

(360,000

be

available

for

stock (par $2) from
outstanding) to 750,000

common

shares

have

additional shares which
of any business,

acquisition

would

increased

working capital, plant expansion

or exchange of shares
in other companies.
Underwriter
Previous financing
handled by Hornblower & Weeks
and associates. ♦
Giatfeiter Pulp Wood Co.

Jan. 31 it

;

,<

was

reported early registration is
expected of
of common stock. Under¬
writer—The First Boston
Corp., New York.
from

100,000 to 125,000 shares

Gulf Cities Gas

17,

D.

L.

Corp.

Alberty, Executive Vice-President,

an¬

nounced that the
company will have another stock issue
in the near future.
Proceeds—For

expansion.

writer—Eisele & King,
handled previous

Hanover
Jan. 12 it
on

Fire

was

part

Insurance

Co.

announced stockholders will vote
March 7

authorizing

latter

Under¬

Libaire, Stout & Co., New York,
financing.

of

an

offering

to stockholders during the
100,000 additional shares of

March

of

the

basis

on

of one new share for
each
Price—To be named later.
Proceeds—
expand activities in the
casualty and multiple line
fields. Underwriters—The
First Boston
Corp. and R. W.

To

Pressprich & Co., both of New York.
* Harris-Seybold Co.,
Feb.

4

vote

on

it

was

were

given

Cleveland, Ohio

announced

authorizing

a

stockholders

on

March

4

will

public

offering of 125,000 shares
Proceeds—For expansion and

of common stock

(par $1).

working capital.
land, O.

Underwriter—McDonald

&

Co., Cleve¬

Holly Uranium Corp., New York
Sept. 9 S. B. Harris, Jr., President of
Holly Corp., stated
that
preliminary financing by Holly Uranium Corp. has
been arranged to be followed
by a public offering early
1955 after which
Holly Corp. plans to distribute part
holdings of Holly Uranium Corp. stock to its stock¬
holders. Underwriter—Barrett Herrick
& Co., Inc., New
York.
in

Illinois Central
Telephone Co.
Jan. 26 it

was
reported company plans to sell in Illinois
only, 15,000 shares of 5%% cumulative preferred stock
(par $50).
Underwriter—Central Republic Co. (Inc.),
Chicago, 111.

Kansas Gas & Electric Co.

(3/15)
reported company plans to issue and sell
$10,000,000 of first mortgage bonds due 1985. Proceeds—
Dec.

23 it

was

For construction
program. Underwriter — To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co.
Inc.; Glore, Forgan & Co. and
Goldman,
Sachs & Co.
(jointly); Blyth &

debenture sale.

Jan.

planning to

of its

the
directors have authorized the issue and sale of
not more
than $65,000,000 of
40-year income debentures. Proceeds
—To redeem its
outstanding preferred stock (about 620,000 shares). Underwriters—If
by competitive bidding,
bidders may include: Halsey, Stuart & Co.
Inc.; Morgan

holders

be

may

it Detroit Edison Co.
Jan.

—

$40)

company

four shares held.

given the right to subscribe

for

shares held

reported

$1,750,000 of bonds

and about
$250,000 of
Underwriters—For bonds: P.'W. Brooks &
Co.,
Inc., New York. For stock: Baker, Simonds &
Co., De¬
troit, Mich.

capital stock

stockholders

/

stock.

Jan.

Maine Power Co.

Dec.

Jan.

was

—

held; rights to

was

Central

on

new

shares, in order to

have

common

five

14

construction, which, it is estimated,
$125,000,0000 in 1955. Underwriters—•
equity financing were The First Boston
Corp.

it

400,000

plan to offer 153,236 shares of

a

Feb.

about

last

& Co.

Jan. 27 it

Price—$50

vote

Glore, Forgan & Co.

gram.

Baltimore & Ohio RR.
Jan.

held.

Commonwealth Edison Co.
Jan. 24, Willis
Gale, Chairman, announced it should be
Fall before the
company undertakes its next

Jan. 24 it

Utah.

Dec.

of

Jan. 28

Light Co.

announced

Underwriter—To

for the

Underwriter—In¬

was

Crampton Manufacturing Co.

bank loans and for construction program.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; Union Securities Corp., Equitable Securi¬

loans

advances; for capital acquisitions; and for expendi¬

tures

Woman's

—To

(par $1)

for

it

per

Jan.

to common stockholders of record
March

Hills

Inn, Fort Worth, Texas
200,000 shares of capital stock (no par).
Price—$5 per share.
Proceeds—Together with other
funds,'to construct, furnish and equip hotel to be built
between Dallas and Fort
Worth, Texas. Underwriter—
31

3

announced company plans to offer to its
stockholders of record Jan. 31, 1955 the
right to subscribe
20,000 additional shares of capital stock on the basis

for

and

—

Offering—Postponed indefinitely.

Western

30

ated

private sales of
used

★ Colonial Trust Co., New York

For

(5/31)

$15,000,000 first mortgage bonds due

stock and

common

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¬

Jan.

sell

tive

$55,000,000 first mortgage bonds to be

York.

Alabama Power Co.

share of stock. Price—To be
supplied by
Proceeds—From sale of units and 1,125,000

additional shares of

1,030 mile

Prospective Offerings

For

$29,000,000 12-year 6% debentures
due Dec. 15,
1964, and 580,000 shares of common stock
(par 50 cents) to be offered in units of one
$50 deben¬

Calif.

will

ties Corp.

com¬

each

Proceeds—For

Dec.

Uranium Corp., Ely, Nev.

Jam 17. (letter of notification)
2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.

for

Feb.

purposes.

expenses.

Utah Apex Uranium Co.
18 (letter of notification) 3,000,000 shares of
capi¬
tal stock (par three cents). Price—Six cents
per share.

Oct.

writer—Mid-Continent Securities, Inc.,

corpo¬

Wyoming Uranium Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents per share.
Proceeds—For exploration and development

development costs. Of¬
fice—420 Felt Building, Salt Lake City, Utah. Under¬
writer—Western

other

five shares held; rights to
expire on Feb. 14.
Price—$33 per share. Proceeds—To increase
capital and
surplus. Underwriter—Blyth & Co.,
Inc., Los Angeles,

com¬

share.

per

and

Office—5119 West Stiles St., Philadel¬
phia, Pa. Underwriter—Charles A. Taggart &
Co., same
city.

rate

Utaco

Uranium, Inc., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of

products, working capital

41

the

rights to subscribe for 200,000 additional shares of new
common stock
(par $10) on the basis of two new shares

Boston

Co., Inc. and The First
Corp. (jointly); Union Securities Corp. and Stona

Continued

on

page

42

42

The Commercial and Financial Chronicle

(738)

...

Thursday, February 10, 1955

V

Continued

Co.

Co. (jointly); Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly).
Bids—Expected March 15.
reported

was

company

Jan. 27

it

additional shares

Jan.

it

31

issue and sell

rities in 1955.

Inc. "
announced that company plans this

ir New Orleans
Feb.

it

4

was

issue

to

first

some

able bidders:

bonds

mortgage

1985.

due

year

Halsey, Stuart & Co. Inc.; White, Weld &

Southern

Dec.

stock

To

Penn
was

(par $5)

be

announced

will

ir Northwest Plastics,
Feb.

7 it

•

Jan.

19

first

and

the

directors

common

To

be

determined

100,000 shares of preferred stock and $5,000,000 oi
bonded debt, and on increasing the authorized commor

new

Co.

&

Southern
12 it

Nov.

Witter & Co.

Dean

Power Co.

Nevada

announced

was

company

Jan.

and

sale

construction.

competitive

of

company

much

the recent reticence ap¬

of

to be fading from the scene.

pears

At

in the
field and

up

rate offerings brought to

any

the last fortnight have
better reception than their

market in

had

a

near-term

predecessors.

The change may be credited to

was

vote

on

perhaps two developments,
namely the splendid reception ac¬

on

corded

the

Treasury's debt re¬
operation,
particularly

in

the widespread
new

40-year

measure,

city of

of

new

acceptance of the

bond,
course,

and, in
to the

some
scar¬

material.

Undoubtedly the latter element
has been potent, especially at this
time of the year, when the search
for new investment outlets is es¬

pecially active. That phase of the
picture does not appear likely to




some

schedule

shows

issues,

Dallas

Monday; and Kansas

day.

its

5%

and

long

scores

of

Oil

Co.'s

houses

decision

to

brought a
"Amen" from
which partici¬

pated in the underwriting of the
issue back in 1937.

"All's

well

that

ends

well"

as

the saying goes, but, for a time on
that occasion,
the

stock

share

was

those who marketed

really sweated.
sold

on

anc

Underwriters—May be Dean Wittt
of Lincoln, Neb. Bond;
on marke~

First Trust Co.

The

be sold publicly or privately, depending

conditions.

Westpan Hydrocarbon Co. (4/15)
11 it was reported Sinclair Oil Corp. will ask fo:

Dec.

bids for

384,861 shares of Westpan stock about April 15

1955, if it has not been able to dispose of these holding
before that date. Underwriter—Union Securities Corp.

may

be included among the bidders.

Zapata Off-Shore Co.
Jan. 27 it was reported early registration is expected o!
315,000 shares of common stock of this company (a sub'
sidiary of Zapata Petroleum Co.). Underwriter—Under
wood, Neuhaus & Co., Houston, Tex.

ing, all specifying a 3%%
est coupon.

changed.

investors
shares and

the

dividends

regularly, will get the call price
of $105 on April 1.
This is one
case
where the investor did all

right, but where the underwrit¬
ers really took a lacing.
to round out that

And

lar

debentures

particu¬

Not

a

the initial of¬

fering day and the issue had to be

issuer

inter¬

paid

group

the

price of 101.893 and pro¬

a

reoffer at 102.384 for a

A rush of buyers

yield of 3.25%.

A matter of
a

the

and

but

$1.70

first

the

lowest

two

the

five

of

bond

under the

top.

a

(Special to The Financial Chronicle)

White is

111.

now

The

decision

General

stock

South

the

Truth

in

Securities

Act.

Out-the-Window
the

first

time

in

a

blue

deal.

Joins Elmer

operations
the involved capital
of partici¬
pants is tied-up for the duration
the

of

"standby," in this

this
week
came up with a new utility offer¬
ing that really caught fire and

to buyers on the exercise

BOSTON,
Elmer

H.

Mass.
now

—

Thomas y I

connected

wit

Bright & Co., 84 Stat

Street, members of the New Yor
and

Boston

a

Stock

Exchanges.

full month.

went out in a rush.

case

Bright *

(Special to The Financial Chronicle)

Campbell is

such

in

Sail

new

available

which participated in the

Ordinarily

La

Street.

the

make

to

Motors

Richard

—

with Lee Higginso

Corporation, 231
Easing the Pinch

these for delivery on a day-to-day basis
early brought a rousing cheer from
and
brokerage
houses
stages of the investment market banking

For

Co.

CHICAGO,

recalled,■. that
developed in the

of

&

be

will

events

joined

Maderia

only about 73 cents

separated

bond

bids

closely, fared little better, while a
New York State bond issue like¬

It

has

With Lee Higginson Corp.

ter of minutes.

Bethlehem

wise found hard-sledding.

Fla.—Edw. A. Chaz£
the .staff of Browr

TAMPA,

swept the counters clean in a mat¬

which followed

of

With Brown Madeira
(Special to The Financial Chronicle)

successful

ceeded to

was

issue

an

era,

Steel

The

years,

received

have

preferred

echoing

construc-

program.

and

Co.

may

"boxed," that is carried until con¬

ment

Amen

Pure

(par

plains to publicly offer

revival in the wake of the enact¬

The

Light & Telephone Co., Inc.
announced company plans to issue

was

ditions

change

Uity Power & Light's $16,000,000
of bonds, due up for bids on Tues¬

call

struction
&

financing.

approving

Power & Light's $7,000,000 of de¬

bentures,

it

$3,000,000 first mortgage bonds due 1985 and abou'

York,

announced company

who

small

24

New York, underwrote recent sale of Sinclair's holding
of Colorado Interstate Gas Co. White, Weld & Co., Ne?

weeks
ahead, that is so far as the cor¬
porate field is concerned. Taxexempts,
on
the
other
hand,
should begin to pick up volume
in the weeks ahead, what with
several large new toll-road proj¬
ects moving toward the public of¬
fering stage.
two

the

40,000 additional shares of common stock (the latter t<
stockholders on a l-for-10 basis).
Proceeds—For con¬

262,750 shares of common stock. Proceeds—To reduce
long-term debt and to redeem 15,000 shares of 7% pre¬
ferred stock (par $100). Underwriter—Reynolds & Co.,
New York. Meeting—Stockholders will meet Feb. 15 to

marked

one, or

funding

sell

Offering—Expected in April or

But, after 18
who
purchased

only

1,335,000 shares to 2,500,000 shares.
The
raise about $10,000,000 through the sale

may

Western

Nov.

^ Storer Broadcasting Co.
Feb. 7 it

re¬

week's

oi

Pierce Fenner & Beane, New York.

May, 1955.

immediate future.

Next

issue

preferred stock and $5,000,000 bonds tc
purchase of 140 retail stores owned bj
Gamble-Skogmo, Inc. Underwriter — Merrill Lynch

is planning to issue

of cumulative preferred stock

$6,000,000

Ripley & Co. Inc.

man

Probable

any

reported

March IE

an

$5,000,000

finance

iCq pauruiio;ap aq oj,—sjajiiauapufi 'uibjSoicI uoi;
petitive bididng. Probable bidders: White, Weld & Co.
and Kidder, Peabody & Co. (jointly); Lehman Brothers;
Merrill
Lynch, Pierce, Fenner & Beane and Union
Securities Corp. (jointly); W. C. Langley & Co.; Harri¬

Underwriter—

bidding.

sell

was

on

proposal to create

a

-uiOD

$50,000,000

Proceeds—To

dertakings stretching

looking
issue

of

(3/8-15)
plans to issue 75,000

$100). Proceeds—To prepay bank loans and for

(3/2)
the

it

17

glance at the new issue calen¬
dar reveals a paucity of new un¬

new

company

announced that stockholders

approving

from

stock

California Co.

A

are

Bear,

stock (par $30). Under¬
writers—Hornblower & Weeks, William R. Staats & Co.

common

undergo

Things

Inc.,

(jointly); Union

shares of convertible preferred
and First

the

corporate

Co.,

&

Blyth

(jointly);

and

& Co.

Southwestern Gas & Electric Co.

authorized

by

was
on

•

Underwriter—East¬

refunding mortgage bonds.

tire bank loans and for

12 it

Equitable Securities Corp. (jointly);
Lehman Brothers; Morgan Stanley & Co.; Kidder, Pea¬
body & Co., and Merrill Lynch, Pierce, Fenner & Beane.
Bids—Tentatively scheduled for Nov. 9. Registration—
Not expected until Oct. 12.

was

Pacific Gas & Electric Co.

(Mo.)

vote

be

Securities Corp. and

(Kingdom of)
reported this1 country may sell between
$30,000,000 and $40,000,000 of bonds in the Spring (prob¬
ably in April). Underwriters—May be Kuhn, Loeb &
Co., Harriman Ripley & Co. Inc., Lazard Freres & Co.
and Smith, Barney & Co.
it

,

Supply Co.

will

Stearns

^Norway
3

Western Auto
Jan.

Wertheim

stock, plus 8,316
shares reserved for conversion of outstanding debentures
which may soon be called for redemption. Underwriters
—May be Irving J. Rice & Co., St. Paul, Minn.; and M.
H. Bishop & Co., Minneapolis, Minn.

Feb.

The First Boston Corp.

bid¬

Inc.

shares of

Lynch, Pierce, Fenner & Beane; Equitable Se¬
Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co
(jointly); Kidder, Peabody & Co.

curities

burg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and

reported company plans to issue and sell

was

future 17,500

near

b

and Lehman Brothers

500,000 additional shares of common

by' tmnpetitive

determined

ding. Probable bidders: The First Boston Corp., Laden-

be offered to public. Price—
Proceeds—To The Post Publishing,

Co., publisher of The Boston Post.
man, Dillon & Co., New York.

in

of

Merrill

determined

be

competitive bidding. Probable bidders; Halsey, Stuart &
Co. Inc.; Blyth & Co., Inc. and Salomon Bros. & Hutzler

announced company plans to issue and

the public

Underwriter—To

construction.

new

Offering—

(11/9)

Co.

was

Underwriter—To

soon

later.

named

shares

420,000

to

5
it
was
reported company plans the sale of
$7,000,000 30-year first mortgage bonds (probably in
May, 1955). Proceeds—To retire bank loans and for

(par $5). Proceeds—To repay bank loans and for
investment in additional stock of subsidiary companies.

Co.

Gas

West Texas Utilities Co.

Smith, Barney &

(jointly);

to offer to its

Jan.

stock

Telephone Co.
Keith S. McHugh, President, announced that
the company will have to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
sion and improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For and bonds,
to be
determined by competitive bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.

it

it

30

sell

17,

17

Inc.

Co.

announced company plans

was

shares of common stock on a l-for-3
basis, plus a warrant to buy an additional share over a
10-year period.
Underwriter—Paine, Webber, Jackson
& Curtis. Offering—Expected before April 1.

was

Republic

Norman Co.

27 it

stockholders 124,667

of Oklahoma

Co.

(jointly); White, Weld & Co. and Shields
(jointly).

Van
Jan.

was

Co.; Kuhn, Loeb & Co.; Glore. Forgan & Co.
Expected in April or May, 1955.

competitive bidding. Prob¬

New York

North

it

Central

Under¬

(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.

Dec.

$4,500,000

reported that company plans to issue and
sell 100,000 shares of new preferred stock (par $100).
Underwriter—To be determined by competitive bidding.
Probable bidders:
Harriman Ripley & Co. Inc. and

Co.; Blair & Co. Incorporated; The First Boston Corp.;
Equitable Securities Corp. and Union Securities Corp.

Jan.

convertible debentures
Underwriter—Kuhn, Loeb & Co.
Loeb, Rhoades & Co., both of New York.

Public Service

Public "Service

writer—To be determined by

*

—

& Co.

Nov. 11 it

Co., Inc., New York.

sell about

to

Underwriter
To be determined by competiti^v
bidding. Probable bidders: .Halsey, Stuart & Co. Inc.^
Blyth & Co., Inc. and Union Securities Corp. (jointly);
The First Boston Corp.; Lehman Brothers and Bear,
tion.

Finance Corp., Denver, Colo.
reported company plans to issue and sell
about $500,000 of 6% convertible preferred stock. Pro¬
ceeds—For expansion. Underwriter—Paul C. Kimball &
Co., Chicago, 111. Offering—Expected in April.

(2/14-18)

Inc.

expects

company

30-year first mortgage bonds late in 1955.
repay bank loans and for new construe-

Proceeds—To

Sulphur Co.

about

reported

was

company

of Missouri

Electric Co.

it

24

reported

was

$30,000,000

reported company is considering offer late

of

it

Union

Jan.

^ People's

$300,000 of 6% debentures due 1970. Price—At par. Pro¬
ceeds—For new developments and working capital. Un¬
derwriter—P. W. Brooks &

(3/16-17)
is understood to be
planning the issue and sale of about $1,500,000 deben¬
tures (with warrants).
Underwriter—Straus, Blosser &
McDowell, Chicago, 111.
27

Stearns & Co.

Jan. 31

reported company plans to issue and sell

was

was

Radio Corp.

Trav-Ler

Jan.

and Carl M.

may

Research Laboratories,

Missouri

White, Weld & Co. and Stone & Webster Securities Corp.:

(first to stockholders).

and Alex. Brown & Sons.

Jan. 26 it

American

March

in

Paper Co.
company

Pan

Feb. 3 it

be planning to
from $12,000,000 to $15,000,000 senior secu¬
Underwriters—Probably Blyth & Co., Inc.
reported

was

for 1955 and replacement of bank!
borrowings made in 1954 wil require financing during
1955 of about $85,000,000. It is planned to offer publicly
in either March or April $10,000,000 to $12,000,000 of
preferred stock. About $60,000,000 of bonds wil be sold
later this year (may be done privately). Underwriter—

—

offering of 16,666 shares of common stock is presently
being made to residents of Georgia only at $3 per share.
Office—517 Stephens St., S.W., Atlanta, Ga.
Minnesota & Ontario

construction program

Pipe Line Corp.

stockholders who already own 700,000 shares.
Underwriter—White, Weld & Co.; Kidder, Peabody &

•

Pipe Line Corp.
announced that the

Tom P. Walker, President,

Nov. 24

Co.; Dominion Securities Corp.; Union Securities Corp.
Bids
Expected to be received late in February or
early in March.

An

nationally.

for sale

Gas

Transcontinental

Stuart &

Bids—Expected

Inc.

present

stated that the company plans at a later

was

offer

to

date

Co.,

&

funds, to finance construction of a 1,400-mile natural gas
pipeline between Ingancio, Colo., and Sumas, Wash., on
the Canadian
border. In addition, 1,659,200 shares of
common
stock would be offered for subscription by

Hardware Co., Atlanta, Ga.

Keystone Wholesale

Blyth

C. R. Williams, President, announced that it is
planned to offer publicly $16,800,000 of 6% interim notes
due May 1, 1956 (convertible into preferred stock at ma¬
turity) and 280,000 shares of common stock (par $1) in
units of $60 principal amount of notes and 10 shares of
stock. Price—$70 per unit. Proceeds—Together with other

(3/15)
plans sale of 60,000
shares of preferred stock (par $100). Proceeds—For new
construction.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Lehman Brothers;
Blyth & Co. Inc.; Union Securities Corp.; White, Weld &
Co. and Shields & Co. (jointly); Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Beane (jointly).
Bids—Tentatively expected March 15.
it

23

Corp. and Halsey,

Boston

Dec. 20,

Gas & Electric Co.

Kansas

First

(jointly);

Pacific Northwest

Bear, Stearns &

Dec.

Inc.

about March 2.

Lehman Brothers

Corp. (jointly);

& Webster Securities
and

The

bidders:

from page 41

moon,

underwriters

General Telephone

fornia,

on

Co. of Cali¬

Tuesday put up $12,-

000,000 of 30-year first mortgage
bonds

for

competitive bids.

banking groups bid for the

Five

offer¬

But the decision to deliver stock

"right,"

in

the whole

other
deal

on

"pay-as-you-go"

words

the need to "escrow" such

for

more

than

a

putting

pretty much

basis,

With Investors Planning
(Special to The Financial Chronicle)

of their

a

averted

capital

brief period.

BOSTON, Mass.—John F. Pow
ers,

Jr.

become

Planning

and

Philip Tanzer hav

affiliated

with

Corporation

England, Inc., 68

Investoi

of

Ne^

Devonshire S

Volume

181

Number 5402... The Commercial

Financial Chronicle

and

(739 )

Missouri Natural Gas
Common Stk. Offered
j

Straus, Blosser & McDowell,
Chicago, 111., and associates on
Feb.

9

publicly

shares

of

of

Co.

$8.50

total,

120,500

Associated
& McDowell

Cruttenden

BEVERLY

Straus,

Blosser
offering were

in the

&

Co.; A. G. Edwards
Sons; H. M. Byllesby & Co.
(Inc.); Central Republic Co.; and

E.

Shields

with

become

&

G. H. Walker & Co.

Joins Gresham & Co.

offered

Santa Monica

Boulevard.

NEW ULM, Minn.—Harold M.
Lightfoot is now with State Bond

(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.—Ken¬
neth

R.

Monte

has

become

and

Mortgage Co., 28 North Min¬

nesota

Street.

open.

es-

LARGEST

SUPPLIER

*

OF

ENGINEERING & DRAFTING EQUIPMENT

Trustees

Charles

P & S CLERKS

Dividend No.

53

openings

in

regular quarterly dividend of 50tf
per share has been declared, payable
March 21, 1955 to'holders of record

New

our

Good

ence.

Charles

salaries.

the close of business

at

holders

28,

Contact

1955

Atlas

Tucker,

of record

of

record

Corporation,----

Walter A.

1955.

President

•

5ERB0RRD
FINANCE

80th Consecutive

MANUFACTURING
COMPANY

COPYFLEX
FOR

COPYING

BUSINESS

PABPJCS

MACHINES

AND

DIVIDEND

DIgby 4-4970
A

Finance Co. declared

terly dividend of 45

Boston, January 28,1955

INDUSTRY

Allegheny Ludlunt Steel Corporation

NOTICES

Pittsburgh,

PATAU MANUFACTURING

EAIvN

Penna.

company

Common Stock
1955

NOTICE

cleveland

At

a
meeting of the Board of Directors
Allegheny Ludlum Steel Corporation held
today, February 3, 1955, a dividend of fifty
cents
(50c) per share was
declared., on
the
Common
Stock (iffif
the
Corporation,
payablejiMarch 31, 1955, to

Trust Company

AMERICAN
CAN COMPANY

Oommdh

PREFERRED

STOCK

record
ness

On

February 1, 19SS a quarterly dividend of
one and three-quarters per cent was declared
on the Preferred Stock of this Company,
pay¬
able April 1, 195S to Stockholders of record
at
the
close of business
March
17, 1955.
Transfer books will remain open. Checks will

a

dividend

eighths

of

cents

$4,375

stockholders

at

on

The

the

dollar

one

($1.09375)

of

1,

per

share
Stock

payable

March

15,

-

on

of

the
to
the

Preferred
stockholders
of
record
at
close of business on March
1, 1955.

be mailed.

shareholders of record at the close

the

1955

of business

Secretary

1955.
TECHNICAL OIL FIELD SERVICES

A.

January 27,1955

COMPANY

Secretary

Dividend No. 71

Manufacturing plants in
(five), Michigan (five),
Kenosha, Wis., Lackawanna,

Secretary

The Directors have declared

quarterly dividend of 40

and London, Ont,

share

ALUS-CHALMERS

ers

the

a

€sso

cents per

regular quarterly dividend of one dollar
($1.00) per share on the issued and outstand¬
ing common stock, $20.00 par value, of this
Company has been declared, payable March
31, 195-5 to shareholders of record at the close
of business March 4, 1955.

A
on

NO. 34

A

regular quarterly dividend of eighty-one
and one-quarter cents (8114c) per share on
the 3)4% Cumulative Convertible Preferred
Stock, $100 par value, of this Company has
been declared, payable March 5, 1955 to

of

stockholders
business

on

1,

March

payable

clared,

record

1955

the close

at

on

the

stockholders
on

Stock

of record

February

close of

23,

PHELPS

FRANK J. BERBERICH

regular quarterly dividend of 50c per
the

on

Common

Stock

of

the

Secretary

PREFERRED

DIVIDEND

regular quarterly dividend of

Company, payable

NO. 3

one

to

dollar

and two cents ($1.02) per share on the 4.08%
Cumulative
Convertible
Preferred
Stock,

$100

par

declared,
holders

of business

of

record

at

the

close

of

on

March 1, 1955

February 15, 1955.

GEORGE

value, of this Company has been
payable March 5, 1955 to share¬

on

stockholders of record at the close

SELLERS, Secretary

February 4, 1955

business

The Board

declared
dend of
per

A.

of

on

10, 1955

record

HAWKINSON,

part of
to

to

stockhold¬

a

February 14,

February

Standard

Company

Jersey)
per

of

The
a

communication

P. H.

OF ILLINOIS
Dividend Number 13

sn

88

97th

Manufacturers of
M. A

88*

K»

Wall &

888

88
m
K»

AMERICAN

R«
R«

>8
888
ea

888
Ha

M

Floor

9

DIVIDEND

lj|!

ENCAUSTIC

Iff
m

TILING

55

COMPANY, INC.

88

ip

888

K8
888

»»

»«

88

881
KB

COMMON STOCK DIVIDEND

gf

Declared

is
82

II
Km

88

February 4, 1955

818

88
818

88

15 cents per share

88
•88
88

»&

889
KM
889

B88
Rft

Payable March 3, 1955
Record Date

February 24,1955

||
651
88

888

888
88

America's OLDEST Name in Tile

**

<88

B8»8ft«tt0SS883&W»8»8»8««ff8ff98»*8

B8«SKaB8ea888t88888tt88S888tt*8«li




WS.

i

RICHFIELD

Regular Quarterly
Dividend

on

Common Stock

regular quar Icrly d ividend m

of 40

cents a

share

was

;||| clared on the common

Tile

4.40%

Cumulative Preferred Stock

B»

88

on

de-

slock,

payable March 1, 1955

lo

stockholders of record Feb-

ruary

|||f

|fp
ip
el

15,1955.
HARRY W. HARTLEY
Treasurer

fj
||||
MM

February 1,1955

1 Financing the Consumer through
gjp
tion-wide

|||

wrt

na-

subsidiaries—principally:

||p

Public Loan Corporation

Domestic Finance Corporation
Loan Service Corporation

Ohio Finance

Company

'4m
f
M

General Public Loan

|pj:

Corporation

||f|

dividend notice

The Directors of Diamond
Alkali

Company have on
February 3, 1955, declared a
dividend of $1.10 per share
for the quarter ending March
15, 1955, payable March 15,
1955, to holders of 4.40%
Cumulative Preferred Stock
of record

February 18, 1955,
regular quarterly divi¬
dend of 37% cents per share,
payable March 5, 1955, to
holders of Common Capital
Stock of record February 18,
and

The Board of

Directors,

29, 1955, declared
cents

per

share

a

on

at a

meeting held January

regular quarterly dividend of 75

stock of this Corporation for the

first quarter of the calendar
year 1955, payable March

15, 1955,

to

stockholders of record

at

the close of

a

1955.
donald

s.

carmichael,

Secretary
Cleveland, Ohio, February 4, 1955

DIAMOND ALKALI COMPANY

business

February 15, 1955.
Cleve B. Bonner, Secretary

RICHFIELD
Oil

1.74
will

accom¬

HUNTER, Secretary

February 3, 1955.

INVESTMENT COMPANY

CONSECUTIVE

of

disbursement

panying the check of March 11, 1955.

Treasurer.

i«

of

record

(Incorporated in

disbursement

a

share.

be explained in

February 2, 1955

ees

1955.

MINTON, Secretary

stockholders

Oil

New

25,

URQUIIART,

Secretary

eat

of

busi¬

Plan for its Liquidation will

the

cents

M. W.

Vice President and

of

CORPORATION

the capital stock

Corporation, payable

DIAMOND

February 2, 1955

close

AJAX PIPE LINE

Sixty-five Cents (65(f)

pay

ers

stockholders
the

at

11,

March

30 Rockefeller Plaza, New York 20, N. Y.

of Directors lias

as

March

on

to

on

C.

Febru-

on

1955. This dividend

first-quarter divi¬

1955.

Checks will be mailed.
E.

a

share

of this

February 21, 1955.
Transfer books will not be closed.

W.

ness

«>

a

a

capital stock of

share

per

payable

1955,

CORPORATION

The Board of Directors has declared

share

DODGE

the

on

record

130th Common Dividend

SANITARY CORPORATION

shareholders of record at the close of business

JERSEY)

NEW

declared

3,

ary

is

DAYTON, OHIO

1955.

AMERICAN RADIATOR & STANDARD

February 21, 1955.

I

AND LIGHT COMPANY

1955 to

the

at

has

Cash Dividend
$1.25

has been

24,

March

payable

declared,
business

Common

IN

The Board of Director*

THE DAYTON POWER

quarterly dividend of 32 cents per

share

(INCORPORATED

to
of

1955.

February 23,

STANDARD OIL COMPANY

(g)

quarterly dividend of $1.75 per share
the Preferred Stock has been de¬

A

4.08%

February 23, 1955.

Secretary-Treasurer

COMMON DIVIDEND

A

A

of record

common

WILLIAM A. MILLER

PREFERRED DIVIDEND

3va% PREFERRED DIVIDEND

on

AMERicAN-^tattdafd

DIVIDEND NO. 123

E. WEIDMAN

Treasurer

LAN i-WE LLS

stock, pay¬
able March 15, 1955, to stockhold¬

COMMON

preferre

are

Ohio

n. y.,

MFG. CO.

the $5.75 Sinkin

on

payable April 10, 1955
stockholders of record March 24,

to

February 10, 1955.

H. C. STUESSY,

S.^McCASKEY, JR.
EDMUND HOFFMAN,

$1.43%

Fund Preferred Stock. All

payable February 25, 1955, to

declared
and three-

nine

and

Secretary

dividends

of fifty cents (50c) per share on the
common shares of the
Company,

of

busi¬

1955.

also

Preferred

Cumulative

Corporation,

close

March

Board

on

dividend

a

STOCK DIVIDENDS

quarterly dividends of 53 cents a share
$2.12 Convertible Preferred Stock,

Colony
of Boston, Dividend Disburs¬

January 28,1955, the Board

of Directors declared

on

payable April 10,

The directors also declared regular

ing Agents.
Paul E. Crocker,

On

quar¬

share

stockholders of record March

to

PREFERRED

Checks will be mailed by the Old

10, ohio

DIVIDEND No. 135

regular

a

cents a

24, 1955.

regular quarterly dividend of Seventyper share has been declared

payable February 15, 1955, to stockholders of
record at the close of business February 8,
1955.

of

Quarterly Payment

The Board of Directors of Seaboard

five Cents (75

DIVIDEND

COMPANY

COMMON STOCK DIVIDEND

iPErPPC-HE-LLl PEPPERELL

McDonagh,

Peterson, Treasurer

February 3, 1955

Broadway, N. Y. 4

February 11,

DEATLY

Secretary

J. F. REILLY & CO.
42

IT.

February 15, 1955.

Vincent G.

the Common Stock of

on

Company have de¬
dividend of 30 cents

share

February

on

a

payable March 1, 1955, to holders

A

York and Jersey City offices for
men
with
background experi¬

Secretary.

of Title Guarantee

regular quarterly

dividend of 60c per common

Commo# Stock

on

STOCK RECEIVE CLERKS

J. E. IVINS,

NOTICE

and Trust

WILLIAM
a

t

as the first regular
quarter-annual dividend for 1955,
pay¬
able on February 25, 1955 to stock¬

Bruning Company, Inc.

have declared

on

share designated

per

The Board of Directors of

33 Pine Street, New York
5.N.Y.

Stock,

to

Company

DIVIDEND

clared

BOOKKEEPER

the Common

March 4, 1955.

GUARANTEE

and Trust

NOTICES

Atlas Corporation

on

stock holders of record

NOTICES

TITLE

DIVIDEND

regular quarterly dividend 1
share has been

of 35c
per

payable April 1, 1955

^{BRUN!ND)=
AMERICA'S

have

The

ATKINSON, Treasurer

February 8, 1955.

declared

DIVIDEND

IIELP WANTED

We

Company
DIVIDEND NO. 30

asso¬

with cash to be derived from
op¬

-

Transmission

Capital Stock of this Company,
pay¬
able March 16,
1955, to stockholders of
record
February 25, 1955. The stock
transfer books will remain
E. W.

j

Tennessee Gas

A
regular quarterly
dividend of 5G(t per share
has been declared on the

together levard.

second,

NOTICES

mm

ciated with Robert G. Gresham &

outstanding bank loans of Co., Ill North La Cienega Bou¬

erations, to defray the cost of

DIVIDEND

COMPANY

9500

(Special to The Financial Chronicle)

Of

NOTICES

LION OIL

affiliated

Company,

the

share.
shares are

per

and,

has

Fabian

With State Bond & Mtge.

Net proceeds to the
company of
stock sale will be used,
first,
pay

HILLS, Calif.—Merl

Gas

its

$200,000

DIVIDEND

(Special to The Financial Chronicle)

(par

issuing com¬
pany and the balance by certain
"selling stockholders."

to

Fabian & Co. Adds

made

&

for public sale by the

.

with

be

stock

Missouri

114,000

property additions to
during 1955 and 1956.

Natural

common

$2.50)
at

offered

timated expenditures for physical

43

Corporation

Executive Offices: 555 South Flower
Street,

lot Angelet 17, California

*■»

\

The Commercial and Financial Chronicle...
44

Thursday, February 10, 1955

(740)

ment

govern¬

"insur¬

its

note, en¬

the government, will

dorsed by

"sold"

be

•

•

within

money

fund." Then the

ance

on.

of

loan

mortgage

the

BUSINESS BUZZ

bank.

the

to

Comptroller

the

of

The

Currency
is mak¬

will rule that the bank

Behind-the-Scene Interpretation*

Capital

from the Nation's

ing

/j

y| /f

JL LP W

JLJL » rlv

(

investment

an

and

not

a

mortgage loan, and this will re¬

business

this

move

the

from

customary limits upon banks on
real

the amount of

WASHINGTON, D. C.—There
is much less than meets the eye
behind
the current chatter to
that the Adminis¬
tration
is scheming
up
what
kind of controls to have just in
effect

the

case.

that

This is not to imply

trols

not

are

serious

a

con¬

issue,

drive

present

the

both
the Administration and

within

of steam

head

low

a

will be a serious
project only if the good old
Commies, who have
done so
It

Congress.

much

boost full employment

to

expanding

the

and

economy,

the American
great deal more.
That excellent college Presi¬
dent
who is heading
up
the

really
people

Office

scare
a

Mobilization,

of Defense

Flemming, has been

Dr. Arthur

to mobilize
and protect the United States in
case
of all-out war.
He has,

.studying the

ways

got little recognition
attention from the rest of the

since

hierarchy

strate

the Communist world

the unity

in

repelling

of

world

free

the

in

new

contrasts

the

least

planning

at

the

supposed to be

with

a

and

dent to be

surrounded—and this

personal
— thinking he
would win teacher's smile, put
forward the argument the
President
should
get
himself
with

one

of

sense

a

control

this

of

some

power

Civil¬

abandoned two years ago.
ian defense officials

horned into

broad-gauge program of

a

avoid

of monetary infla¬

the creation

tion, then that is one thing. That

is

"Where?—Alaska!—Just

is nothing doing, for

thing

necessary,

down

a

bill of particulars for all

to

constituents

see,

price control stuff is passe. They
are
as
much interested in em¬

pocket books.

it in 1955 as a hand¬
some
popular young collegian
would
be
in
dating his high
school sweetheart who
in the

bracing

control situation
by the

This standby
further

complicated

intervention of the Civilian De¬

talking

about some kind

of price wage

control

will

just about murder
in
the
United

to

dare

life

national

those abstract
won't

another

is

This

States.

one

of

"iffy" things that
to
a
bunch of

appeal

Congressmen
innocently
en¬
gaged in their usual business of

Phelps, who rates highly
as
the former capable Deputy
Administrator of the Office of
Ed

Stabilization,

Price

dra¬

was

gooned back to Washington to
be the top staff man on this
undertaking.
Phelps is understood to hold
to the view that controls over
wages,
are

prices, rents, and credit

subordinate to the problem

to dam infla¬
With the

of finding a way
tion

its

at

source.

public debt at $278 billion and
the total tax burden in terms
of disposable

income at almost

police ac¬
tion, it is recognized that there

the

a

peak of the last

problem.

is how to avoid
the merry manufacture of credit
as in the second World War and
the late war in Korea. This in¬
The problem

meeting

volves

pretty
of

bitter
is

them

onerous

with

up

alternatives.

volume

One

and

fat

grown

changed twice, for years
struggled along on some $25
million a year to make mort¬

name

gage

loans

basis

of

impro¬

visation after the fact of emer¬

it is almost in¬

fact

In

gency.

that

variable

prior

elaborate

schemes

with

on

it

comes"

to

for

"if

an

basis,

wars

around in
think
up
dealing

gentlemen
stashed
Federal
buildings
war

Way

and

and

when

Bank

Tap

Money

Benson is

planning a
new
scheme
whereby
Uncle
Sam can evade the appropria¬
T.

Ezra

tions

and

process

for Federal pur¬
In fact, it is two schemes.

and get money
poses.

is

that

recalled

equally

passed

soil, planting woods, or improv¬
ing their pastures can be "in¬
sured"
by the Farmers Home
Administration. The farmer goes
FHA

to

approves

makes

and

out

should

before
a

few

•

China

latest

end

up

in

esoteric

of

United

the
men

best

and

incident

fighting in¬
maneuvering
Nations

an

and

occasional

ship get wiped out, then per¬
haps both the Eisenhower en¬
tourage and the Congress would
go
for
standby price, wage,
credit, and rent controls in the
form

of

some

Without
ness

war

an

kind of

a

however,

the

for

note

a

loan,

the

the

farmer. Uncle Sam puts a guar¬

the

of

note,

to

money.

do

on

the back

all the bank
to
provide the

and
is

Farm-FHA

even

collects

and otherwise services the loan.

in

Eisenhower

his

like

40

message

mortgage loans limited to 90%
of value. In this case a farmer

Inflation

Revolution

French

I rredeemable

of

Lesson

per

10

copy;

copies, $7.50;
—Frederick

get the loan. Farm-FHA would
"insure" the
loan, and at the
same
time enter
into a
firm

copies, $2.00; 50
100 copies, $10.00
G.
S h u 11,
2009

Conn.

with

contract

take

to

change

given period,
five years and

of the bank after a

which
now

was

was

once

a

farmer

left to

as

ture when

would

N. Y.

a

dim

and

President—John Nuveen & Co.,
135 South La Salle Street,

fu¬

distant

Highway Pro¬

Investment Impact of
General
Clay's report to the
gram:

cago

3, 111.

Chi-yt

(paper).

maybe the mortgages

come

home

to

the

gov¬

What Price Federal

ernment to roost.

The

Magazine"—$1.00—The

Ten Year National

got

the

—Investment booklet

10-year loan dis¬

40-year loan, the
the money, farmFHA
got
around asking
for
more
appropriations, and the
problem of raising the cash was

guised

Haven 15,

Exchange Magazine, Dept. E-l,
11
Wall Street, New York 5,

is 10. So the bank in effect

making

New

plus next 12 issues of "The Ex¬

the hands

off

Street,

"10 Best..

lending bank

the

loan

the

Chapel

new

—Raymond

scheme—which

Enterprise

will

1012

be

along shortly—provides that
Farmers Home will itself make

Reclamation?

Moley—American
Association,

Fourteenth

Street,

I n c.,
N. W.,

Washington 5, D. C. (paper) $1.

praised

beauties of this easy way to

We recommend at the market

W. L MtXSON CORPORATION

tions thereof.
Has Two

The

CAPITAL STOCK

Variations

first

of

these

is

in

re¬

spect to mortgage loans.
Farmers Home Administra¬

CAPITALIZATION: 330,397 shares Capital

This is

a

real

Stock

GROWTH Company (Electronics)
•Earnings
Net Earnings

Sales

per

share

to

1950

$3,229,917

$211,364

hit the pampered union workers,

1951

7,453,985

614,012

2.26

1952

15,923,380

526,494

1.82

1953

34,377,128

1,085,502

3.54

1,496.000

4.53

which

for

obviously

will

have

100% taxation of the
filthy rich will not begin to do
the job of avoiding extensive
even

manufacture

of

credit

money.

1954

The other is "forced savings" or
a

system like in Russia whereby

is

everybody

assigned

untary contribution" of
a

month

out

invested in
ury

of

some

his

a

"vol¬

so

pay

to

FOREIGN

be

kind of Treas¬

debt.

So the current

thinking is that

inflationary
to

base,
curb




it
the

will
be
further

SECURITIES

50 BROAD STREET

TEL:

in view of the present enormous

necessary

Carl Marks

&

Co. Inc.

much

HANOVER 2-0050

•

37,143,000

•On an Increasing

$0.81

number of shares yearly due to stock dividends

Trading Market for Brokers and Dealers

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

—.

Cur¬

rency—10 page study—25 cents
,

would, after being blessed by
farm-FHA, go to a bank, and

taxation

of

col¬

Economic

the
get
money, so Mr. Benson is going
ahead on two new large varia¬
Report

freeze.

honest-to-good-

scare,

The

version).

(farm

farm-FHA

has

stead

year

bill under which loans
building up their

a

actual hostilities.

the

last

farmers for

to

antor's endorsement

If

directly

go

strong rooms of banks

into the

laid
plans to be forgotten, come the
these

for

customary

the

of

got wise and concocted itself an
"insurance"
scheme, but with

Congress, aided and abetted by
Secretary of
Agriculture,

an

100%

at

something

for

lateral

on

farmers

to

loans

Under Truman the farm-FHA
New

the

be

io.

years.

Plans
To

It

will

probability

mm

touch

more

even

an

two

has

ugly.

getting reelected.

Hence the final outcome in all

Take Broad View

meantime

I

and then!"

now

tion, Rex Tugwell's old Resettle¬
ment Administration,
with its

at the city or

program

county level on the assumption
that the Reds somehow can and

Will Improvise

made.

this

attitude of Congress is that

to what

as

out of people's

take

would

war

because

couple of lousy bucks

it
is going to write

Congress one hour before

deal, and studies are being

the

is

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)

on

the character mentioned to

socialism,

(This column is intended to re¬

proposition of standby
prices, wages, credit,
rents is made inseparable

If the

from

be

not

however, for Mr. Eisenhower
says he is against socialism and
government in business.

000,000,000 ($1 trillion).
controls

will

This

of

pattern

the United States

fense officials. They are

social insecurity

Treasuries of the United States.

War II, and
would end up
national debt of $1,000,-

the

in

,

become de facto sub-

then will

that
the
war
with
Russia would be financed about

assuming

to have.

is the
Presi¬

with

fittings therein.

brass

The military are

is

sycophants with which it
inescapable curse of any

primarily in the business of dis¬
bursing funds "without risk and
guaranteed return" on be¬
half of the government.
They

of

Department, or

guaranteed hospital loans and

guaranteed loans of numerous
other kinds, the time is in sight
when
banks will
be engaged

is some¬

aggression. One of the doctor's
projects, of course, has been this
matter of what kind of controls
Meanwhile, one of the lesser

<

planning. It

war

with

Defense

the

no

of the war to demon¬
soundly and finally to

ft

j,

This broad approach

one

end

a

"i

_

Pentagon Plans Differently

or

governmental

^

(

banks by buying gov¬

Together with the suggestion
of

•

i

is to

ernment-guaranteed paper will
become mere disbursing agents
for Mr. Benson's boys.

effects of large

irresistible

»,

which

in

inflation.

however,

the

The

treat these

only by the inflation that slips
by the basic inflation-manufac¬
turing machine. The new con¬
trollers don't want to content
themselves
with playing with

thing

However,

loans.

like the soil conservation loans,

around loose.

has

production

controls. The latter are affected

the

*

Farm-FHA also makes liberal

7-year

second scheme

anybody gets
day-dreaming about how can
the government get some more
jjower it is something to reckon
with, like dynamite left lying
anytime

because

estate loans

they can make.

of that inflationary
potential before dealing with
price, wage, rent, and credit
expansion

LERNER & GO.
10 Post Office

Square, Boston, Mass.

Telephone HUbbard 2-1990

Teletype BS-69