Full text of Commercial and Financial Chronicle : February 17, 1955, Vol. 181, No. 5404

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ESTABLISHED 1S39

ft8

,9b5

13

The Commercial rmt
Reg. U. 8. Pat. Office

New York

Number 5404

Volume 181

EDITORIAL

be

studied

and

politics really should

By BENJAMIN F.

extensively against a back drop of history.
disappointments, the failures, the disillusion
they bring would be much better understood if
we
at all times realized how extensively, how
say

regularly,

our

ideas, our

us

course, a

positively and emphatically rele¬
gated a good deal of traditional thinking to the
scrap heap. It is well that we enter the scene with

which

same

we

I to

IN

minute.

a

We

in the electric power and light
months of 1954 increased by
25% over those of the previous quarter.
Investment
company managers thus clearly confirmed the trend to¬
ward
lightening
commitments
in
utilities which had been somewhat
in

behind

they

are

if at all.
the hydrogen bomb.
us,

lower

the George Putnam

and

single

Greater

11,

of

Chamber

Johnstown

ment

Annual

the

Commerce,

on

page

Dinner

Johnstown,

of

Fa.,

Fund

of Group

Company.

General

folio whose total valuation was $18

42

It should be noted,

the
Feb.

Continued

ISSUE—Candid pictures taken on the occasion of the 30th Annual
Securities Traders Association at the Parker House appear
on pages 25
to 32 incl.
Established

U. S. Government,

State and

Municipal

Securities

NATIONAL BANK
of INDIA. LIMITED
Bankers

to

the

telephone:

HAnover 2-3700

Government

CHEMICAL
CORN

EXCHANGE

BANK
department

30 BROAD

ST., N.Y

MUNICIPAL

AND

West

BONDS

Bishopsgate,

Zanzibar,

land

Protectorate.

£4,562,500
£2,851,562

Capital
Fund

The Bank conducts every

THE NATIONAL CITY BANK

undertaken

Chicago

OF NEW YORK

Miami

Net

To

Teletype: NY 1-708

Active

Banks

The

Maintained

Markets

Dealers,

and

Utility Bonds,

Preferred and

T.LWATSON&CO.

Common Stocks
FIRST

£0Ut/w€4t COMPANY

50 BROADWAY, N. Y.




PERTH

AMBOT

Executed

On

All

We

Regular Rates

NEW

BROADWAY

NEW

YORK

offer
at

to

the

CHASE

THE

NATIONAL BANK
OF THE CITY

OF HEW YORK

Beverly Hills, Cal.
Switzerland
Holland

Shawinigan
Power

Public Service Co.
of New

Company
1955

Hampshire

COMMON

buy the above Rights
current

maiket.

"Highlights"

upon■

request

DEPARTMENT

Dominion Securities

YORK

STOCK

EXCHANGE

1 NORTH LA SALLE ST.

CHICAGO

IRA HAUPT & CO.
York Stock Exchange
Principal Exchanges

Members New

MONTREAL AND TORONTO

Grporatioti

Goodbody & Co.
115

Gables

Rights expiring February 28,

Teletype NY 1-2270
DIRECT WIRES TO

MEMBERS
BRIDGEPORT

Dallas

CANADIAN

Members N. Y. Stock Exchange
Stock Exchange

Orders

Canadian Exchanges At

Pittsburgh

Coral

Water and

Our Customers

American

•

Brokers

CANADIAN
Commission

Public

Detroit •

Geneva,

SECURITIES

<£m(Awtdt

•

Beach

Hollywood, Fla. •

Bond Dept.

Bldg.

YORK 4, N. Y.

NEW

Amsterdam,

122 Years of Service
to

N. Y. Cotton Exchange

and

also

Bond Department

Exchange

and other exchanges

£3,104,687
description of

exchange business.
Trusteeships and Executorships
banking

Inc.

Trade

of

Cotton

Tanganyika,
and Somali-

Authorized Capital

Paid-Up

Orleans

Kenya,

Aden,

Uganda,

Bonds

Exchange

Exchange,

Board

Chicago
New

34

Exchange

Cotton

York

New

page

Municipal

Exchange

Stock
Stock

Commodity

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

1850

Members

York

New

American

London, E. C. 2.
End
(London) Branch:

Reserve

bond

STATE

in

Office:

26,

on

State and

H. Hentz & Co,

Kenya Colony and Uganda
Head

r

million.

however, that on an over-all basis,

1955.

THIS

$1

light shares out of a port¬

Winter Dinner of the Boston

,

Henry A. Long

Corporation sold

Capital

million of electric power and

.

Continued
at

Common Stock

Securities, and the Wisconsin Invest¬

link, so a nation is no stronger than its
of
production
.
than the "lifting

Fairless

Fund of Boston,

Fidelity Fund, Selected American
Shares, the Fully Administered Fund

Benjamin F. Fairless

stronger

Mr.

other funds "joined

States

a

by

In

several

parade." Among these sellers were
Lehman
Corporation,
United
and International Securities,

the

is obvious. It can be summed up in
"technology"; for just as a chain is no

address

has been noted in
the final quarter

as

surveys.

1954

the

course,

*An

prices

these
of

certainly not far
And they have

.

Investors

previously been selling off elec¬
tric issues purchased at considerably

word:

tools

Af¬
Business

year.

Fund,
American
and
Fundamental

had

Why, then, do they hesitate? What
they lack? What is the one in¬
dispensable weapon that still is ex¬
clusively
ours?
The
answer,
of

industrial

last

earlier

evidence

Shares

do

than its weakest

final three

the

in

filiated

the field

In

fourth quarter portfolio
35 and 36]

transactions

Selling

stocks

supply of raw materials
resources.

Cautious
indicated by

changes and cash position appear on pages

attack

to

Textile and retail equities liquidated.

[Mr. Long's tables detailing

the

are

t

plane manufacturers were subjected to profit-

attitude toward present stock market levels
several managements.

told that they command

natural

of science

39

PICTURES

situation for

our

additions

attracted enthusiastic buying, bu£

Air transports

taking.

new,

which threaten

are

vast

a

and

prompted by events in the Far East. We should
certainly not claim to know precisely what our
policies in these areas should have been at all
on page

shares of

great military strength and that they
more
planes and submarines
than we do. They have ready access

Such thoughts are, of course,

Continued

issues.

have

we

traditional thinking.

We

one.

in it if at all times we
awareness

as comprised in new ma¬
Says machines and tools have

jobs.

momentarily, In terms of man¬
power
they outnumber us five to

shall make better headway
choose our course in full
of how it does or does not conform to

live, and

I'

during the final quarter of 1954 *!

Oils remained favorite

sales.

over-balanced

us

world in

time this is still a real

look at

forces

ful

fresh mind and outlook.
At the

\£

along with the steels, rails and metals. Continued inter¬
est shown in the food, paper, natural gas and machinery

earth; and this, I submit, is probably the one and only
reason
why we have not already been plunged into a
devastating atomic war.
Across the seas, there are power¬

ing have very

a

ment company managers

strongest and most productive nation on the face of the

great deal in the history

of world politics for which we are glad not to be
responsible. No one in his right senses would sug¬
gest that we should accept as right and proper
all the procedures, all the policies and all the
traditional thinking that has characterized interna^onal dealings in the past. The fact is that the
devolution of mankind and events not of our mak¬

we are

weapon,

industry is nothing

Let's

diplomatic

cul-de-sacs from time to time.

of

this

though

of welfare and "automation"
but is an evolution. Indicates
in recent years jobs have increased more rapidly than
population. Denies profits grab lion's share in industry.

thinking would without much doubt
possibly from

There is,

by Funds

Steel Corporation

been the greatest source

in

from embarrassment—and

allowing ourselves to be drawn into

fear

Decries

chines will destroy

greater awareness of what has gone before in this
realm, and possibly at times a greater respect for
traditional

Copy

By HENRY ANSBACIIER LONG

the strongest and
most productive nation, Russia is not far behind us, and
we
must depend on
the one indispensable weapon,
namely, "technology," which still is exclusively ours.
Mr. Fairless points out,

programs and our policies do violence to all cus¬
tom and tradition in international dealings. A

save

a

Survey reveals that total security purchases by invest-

and

The

frequently, not to

Sold

FAIRLESS*

Chairman of the Board, United States

appraised much more regularly

Cents

Electric Utilities

Technology—Our One
Indispensable Weapon

As We See It
Our ventures into world

Price 40

7, N. Y., Thursday, February 17, 1955

and

other

111
40

Exchange Place, New York 5, N.Y.

Teletype NY 1-702-3.

WHitehall 4-8161

Broadway, N. Y. 6

WOrth 4-6000
Boston

Teletype NY 1-2708

Telephone:

Enterprise

1820

,c
2

(802)

-'Of

r

'/

-

''

For

The Commercial and Financial

,

''

1

y„t—

,:«i.

~~~\

*

Banks, Brokers, Dealers'

The

-

Holly Corp.

participate and give their

Investors Div. Services "A"

reasons

for favoring

(The articles contained in this forum

Kearney & Trecker

they to be regarded,

are

Laboratory for Electronics

ALBERT II.

Long-Bell Lumber of Mo.

offer

as an

SIDNEY

(non-voting)

General Cable

4.8% Debentures of 1987

Temco Aircraft

The

Swazey

&

Foreign Power has been acting
well during the last few

very

months.

ficulties

New York Hanseatic

G

Corporation
Established.

120

Broadway,

WOrth 4-2300

Private

Boston,

Wires

Chicago,

in

must

our

Cleveland,

in

the

of

giving

an

financed

f^CpONNELL&rO.

The

Exchange

Stock

H.

Exchange

&

Foreign
the

speculations

immediate
6%.

If

in

Latin
.

continue

BROADWAY, NEW YORK 5
REctor 2-7815

ment

the

bonds

bank

a

■

,

Trading Markets

getting

,

possible

is

could

in

since

the

.

.

_

country amounting

dustry

HAnover 2-0700

should

seasoned.

The junior

found

even

portfolios
panies.

LD 33

,

.

-

their

of

ing

Active

,

are

share

Morrison Knudsen

between

strong

a

+,

g
an

amount

around

ZilKA, SMITHER & CO.

88

of

the
tne

asoect
aspect

AW

the

most

whole

i

T,_

$50,000,000
due

iunior
junior

2030.

.

,

in

selling
Such

part

Power

a

every

debentures
debentures

interesting

Foreign

in

are
are

the

situation

and should be considered by
every
.

u

.

investor who

Trading Markets

market

as

nevertheless

.

is

.

,

suspicious

whole

a

to

but

and cable

show

may

ually becoming

an

of the prob-

aware

on

demand
be

American house-

if she has her way,

for

keep

his

electricity will

fulfilled.

believe

I

and

way,

wire

more

she

it

must
and

be

cable.

utilities

already

are

sponsoring

an,^ alert units in the wire and

cable field may be able to show

growth 0f 150%

or

more

period of the next 10
i

am

impressed with

agement

team

a

the

over

the

heading

man-

uo

Gen-

eral Cable Corporation and I have
therefore chosen General Cable
vehicle

this

as

field.

for

representation

in

Although there are
companies engaged in this

many

highly competitive business, there
are 0nly ab°ut 16 large 0neS' and
not

public.
the

these

0f

many

General

larger

to

report

Cable

producers

is

of

the

one

copper

electric

and

conductors.

It

largest in the

capital It

communications

is

probably

electric

also makes

field,

similar and allied

brass,

of

wire

the

bronze

and

aluminum.

Output ranges from
fine gauges, thin as huhair, up to heavy under-

very

ex-

man

op-

gr0"ni? and marine cables.

unities

p

But

are

the

,

,

tremendous.

aii

All

these countries
are—economically

speaking

"Foreign
most

x

x

important

(9ppenkei/m'i &

their

Members New York Stock Exchange

skeptical investor
.

...

^

from
.

•

the junior

Foreign Power.

one
x

of

Therefore,
may

of
,

and

the

x

instruments

some
.

march

is

progress.

switch
into

the

Power"

.

,

on

—

,

for

the

consider
his

a

stocks

.

debentures

,

of

or

write

Yamaichi

ex¬

Securities Co., Ltd

plants
111

1897

Office Tokyo—70 Branches

Brokers

N. Y., Perth
N. J., St.

Investment Bankers

&

Broadway,N.Y. 6 COrtlandt 7-5680

tors.

present

General

identified

Cable

with

most

important

outlets

are

The
elec-

^ric and telephone utilities, building, electric appliance and equipment, and automotive industries.

Duri.n- 1954 ?le company's pro-

duction

taken

was

approximately
38%

was

power

as

by industries
follows: About

absorbed by the electric

and

light

industry

and

manufacturers of equipment for
them.

followed by the
building industry which took 20%,
This

was

the telephone

is

industry 18%, gov-

General Dry

Batteries, Inc.

closely

American

Smelt¬

ing &

Refining through the latownership of a large stock

interest

well

as

•

Capitalization
date

of

as

about

was

Funded

debt

$4

1st

$2

conv.

pfd.

par)__:

—

on

Capital Gains

Request

LEWIS & ST0EHR, Inc.

None

($100

2r.d

Common

Data

recent

a

follows:

as

Yield

•

the board of directors.

on

Growth Situation

•

representation

as

Established

97,891 shs.

($50

1926

<'128,444 shs.

Telephone: DIgby 4-0985

par)

stock

■"Convertible

80 Broad St., New York 4

1,973,187 shs.

pfd.

into

approximately 2.55
shares
common
through
7-1-56 — into
approximately 2.07 shares thereafter.

i

i

The

financial

position

has improved

company

of

in

the

recent

despite substantial capital
outlays
and
the
repurchase
of
years

close

to

$5

amount

million
first

of

principal
shares.

preferred

At the close of 1954 estimated
rent
of

assets,

including

have totaled

to

mately $36.6 million

of

are

•

about

mobile, aircraft, construction
and other industries.

credit

•

7 Cash dividend increases in 8

2 substantial stock

of
years.

but

none

of this has been drawn upon. With

to

copper

and

inventories
to

of

materials,
that

note

it

is

ried

substantially

market

fact,
the
in

values.

valuing
present

raising

common

per
was

below

would

result

value

value

close

million.

of

major

portion

$16

per

over

the

more

Another

of

the

facilities

$2

efficient condition.
of

courses

action

company's
in

houses

also

being opened

are

the

service of

soon

ware¬

to

sup¬

those

ex¬

be 30 warehouses

compared to the 18
tion.

This

should

production

runs,

SHARE

straus, blosser
and

Mcdowell

Members New York Stock
Exchange

30 Pine St.

New York 5, N. Y.

Telephone: BOwling Green 9-1314-24
Teletype: NY 1-1385

been

isting at manufacturing locations.
There will

$20.00 A

for descriptive circular

Several other

have

At strategic points

plement

Ask

on

modern,

taken by the corporation in order
to improve its position in the in¬

dustry.

RECENT PRICE

be

to

books

per

to

believed

the

dollars

million plus will be spent in 1955.
I
understand
this
has
placed a

production

years.

Company

expenditures

$30

loss

threshold of accelerated
growth.

past nine years have totalled
than

no

current

share.

Capital

Company had

Current dividend $1.20.

at

book

The

share added to

of

a

shares by several

recently

a

capital since '49.

inventories

market

share.

•

matter

As

such

the

Over $6.00
earned

General

Cable went Lifo during 1940. This
results in inventories being car¬

dividends

since '47.

owned
•

other

interest

Diversified products for auto¬

•

bank

is available

regard

Industries, Inc.

(Capital Stock)

approxi¬

liabilities
A

Frontier

compared

as

TAKE A LOOK AT
A GROWTH STOCK!

YIELD

items

cash

approximately $15.3 million

believed

6%
CURRENT

cur¬

of

wire, rod and cable used primarily

products

x

vision-

knowledge

Japanese potential.

through 27
warehouses, as well
independent distribu¬

through

as

of

years.

change difficulties!

Tele: NY 1-3222

will

*n manY localities electric

Sure, Latin America is plagued the

Mills

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

the

never

by revolutions and sometimes

Pfd.

even

longer take
additional equipment items of

as

x,

of the
wishes

continuously at work.

Indian Head

As

stronger growth than the industries it supplies. People are grad-

The

$67,360,000. Pre-

spread is not justified. From

Portland-5-Oregon

wire

at

million.

outstanding

Knf

and

seems

a .matter of fact, I believe that

my

—

it

that the

assume

made

are

$17.3

a

with

with

Call

plant is
that ac¬

on

unusual appeal

investors

investors

Bayonne,

$10 million

5% Gold Bonds

t

are

at Rome,

and

therefore, believe that aggressive

base).

are

located

risks,

$14

have

may

Established

financing rewiring and adequate
wiring
installations.
I,

asset

and

Louis

company's principal

earn-

and

demand,

current

,

offices

SECURITIES

which

of

the St.

with

....

$13

in the amount of

Western Dept. Stores

j

branch

our

JAPANESE

to

the
of

and

especially
„

form

foregoing

strong growth characteristic.

with

-j

to

that

growth factor
It also has

being undertaken

ter's

years.

industry should, during
period, also demonstrate a

this

not

considered

Birmingham, Ala,

Louis, Missouri ard Los Angeles
Emeryville, California. Sales

an(j cat,le

done

businessman's

junior debentures

Portland Gas & Coke

the

From

com-

are

(more than 7 million shares

es

selling

to double within 15

her

,

and

expected

are

greater growth. And

telephone industry is expected

have

be

can

,

Trading Markets in
M & M Wood Working

industries

even

some

well protected by

power

.

to show

into

they

,

high-class but

They

electronics

Fund

Mutual

,

excellent

bonds have

way

Certainly,

,

equipappliance
and

electrical

ment,

the

electrical

on.f s?,jd
wife that

more

wires

offices and 18

The

years.

the

become

noted

supply cable to the

ten

convenience and necessity. Some-

,

NY 1-1357

-

and

the

■

better

the electric utility
will
again
double
its
productive capacity over the next

industry

meantime

the

In
...

be

companies

a

to

with

Amboy

householders

have passed.

even

contract

are

!em °.f [Adequate wiring. Many
can
no

share.

Direct

Home

that

Kxchanp*

Mobile, Ala.

it

The

Sidney R. Winters

In this country it has been

Stock

American Stock Ex
■-hangs
19 Hector St., New York
8V If, Y,

With regard to the telephone in¬

now

and

York

Members

count.

will

wire

New'

Members

City

12%, consumer goods 8%,
railroads, etc. about 4%.

pansion

of

securities have

new

York

ernment

up

ap¬

so

wire

.

Foreign
property

reorganization

company.

is

reason-

that

recover

that

mo-

Argentina

more

Almost three years

Company

PD 15S

a

Nixon

over.

New

Western
Electric Company.
In¬
deed, the company's facilities for
making this product cannot keep

these fields

forecast

should

At the

improve.

to between S15 and $20 a

Commonwealth Natural Gas




Co.,

New Orleans, La.

a

that

reasonable to

.

It

alone

Gas Company

America

things

Power

Alabama-Tennessee Natural

Pacific Coast Securities

are

loan

a

to

_

able.

American Furniture Company

.

to be

seems

Lynchburg, Va.

of

return

Vice-President

looking

Scott, Horner &.
Mason, Inc.

junior

(now selling

good

through

Power

4.8%

political and economic cli-

mate

Dan River Mills

Deuble

still higher return can be realized,

Members

be

grow.

as

than

to

cable industry

debentures due 1987

more

Ptoses HA 2-9768

&

than the Bell system.

having

can

the

the

76)

down

electricity,

as

especially

Steiner, Rouse

Corporation—Sid¬

General Cable is a leading pro¬
ducer of paper lead telephone ca¬
ble.
Here it serves primarily the

of

line

grow,

stock

around

Stock

it

Albert

Bought—Sold—Quoted

ad-

the gen-

preciated

a

American

and

Since 1917

&

most necessary

are

consumption

of

regard

Rights & Scrip

Common

with

of

Street

1987—Al¬

(Page 2)

juncts to the industries having to
do with electricity, being used in
every
field
from products

those

people

common

—

ham

Corporation

to do with the

not

neglect our
neighbors.

Specialists in

Tele. LY 62

cable

and

the

own

and

smart

TEL.

Cable

right

keep

of

R. Winters, Partner, Abra¬

ney

independent

number

120

General

Exchange
Leading Exchanges

have

Therefore,

American

WINTERS

elec t ric i ty

clean

Portland, Me., Providence, San Francisco

Yorlc

1

backyard

to

Hartford, Houston, Philadelphia

Hew

Debentures

Power

Deuble, President, York¬
ville Exchange Co.,
inc., New
York City. (Page 2)

concerned

and

we

Foreign

bert H.

eration

that

PHILADELPHIA

Direct

political dif-

Washington

5

Teletype NY 1 -40

BOSTON

4.8%

and

have shown to

York

Selections

Louisiana Securiii
American

Costa Rica

1920

Exchange

New

recent

temala,

it a

Panama

Member

Stock

The

Alabama &

When it is considered that wire

stock of American

common

R.

Week's

Participants and

Their

nor

Partner, Abraham & Co., N.'Y. City
and Other

Foreign Power

be,

to

Members New York Stock

Penobscot Chemical Fibre
American &

particular security.

a

intended

not

are

Members of N. A. S. D.

Associate

Forum

sell the securities discussed.)

to

DEUBLE

President, Yorkville Exchange Co., Inc.
New York City

Metal & Thermit

American

This

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

Cleveland Cliffs

Warner &

1

Security I Like Besl

Air Products
I

Chronicle... Thursday, February
17, 19;

J.V.

now

in opera¬

result

in

lower

better

freight

N. Q. B.
OVER-THE-COUNTER

1

INDUSTRIAL STOCK INDEX
14-Year Performance of
35 Industrial Stocks
POLDER

ON

REQUEST

charges, and prompt service to the
consumer.

ucts

for

also

been

.

Distribution

of

prod¬

the

building trades has
increased through the

Continued

National Quotation Bureau
Incorporated

46 Front Street
on

page

19

New York 4, N.

Y.

Volume 181

Number 5404

The Commercial and Financial Chronicle

...

(803)

The

INDEX

Impact of Postwar
Experience on Trust Investments

B. S.

Articles and News

itnsifin

Page

AW COMPANY

Electric Utilities Sold by

'

Funds—Henry Ansbacher Long ..Cover

By MARCUS NADLER*
Professor of Finance,

New

Technology: Our One Indispensable Weapon
—Benjamin F. Fairless

York University

Dr. Nadler points out that

commodity price movements, interest
rates, and taxation developments after World War II were so
radically different from what happened after every previous
major

influence

The Impact of Postwar Experience

—Marcus Nadler

trust

on

investment problems:

income-bearing

(1) to strike
and

securities

equities;

(2)

investment policies of

trust companies are based
sonable judgment, which

consideration of

a

all

on

ity prices

rea¬

cline

ate

opera-

dex

in

g

the

also

t

o p m e n

in

s

the past in or¬
der

to

tain

whether

basic

any

at

above

fact

that

occurrjed

the

decline

and

portant

bear¬

workers

ing

these

industries

com¬

increase

Nadler

policies.

modity

have

on

The movement

prices,

of

interest

of

rates,

opments after World War II

radically

part

pected
that

at

they

was

the

of

end

considerable

influence

policies

the

on

of

trust

this

Every major war has been fol¬
by a period of boom and

to

by

offer

increased

again

buying
was

reduced

in

of

time

value.

for only

is

it

ward

The

dollar

period

lieved
II.

that

the

develop

However,

of

prices

by

the

Bankers

Feb. 8,

Trust

Division

of

the

New

Association,

sponsored
American

York

City,

any

lower¬

fluctuate

may

con¬

commodity price

11

Estimated Supply and Demand for Investment Funds in 1955
—Girard L. Spencer
Canada's Program of Atomic Energy

that

uncertain
ficult.

A

World

definite con¬
post-World War

any

the

is

times

extremely dif¬
careful analysis of post-

War

II

various

developments

economic

forces

Uranium and

Its Commercial

Use—W. J. Bennett

14

Future—Floyd B. Odium..

14

in the

dollar

volume of

purchasing poWer of

is

not

in

the

picture.

place, the outstanding
debt—both

private—is

We Still Need More and Better Economic
Statistics
—Waiter E.

Hoadley,

"We Are

Jr

Ready to Finance

Plant"—Hudson

R.

very

public and

high.

Continued

Lessons—Roger W. Babson

years we

D D

Mrs. Mary

S.

G.

Chubb

(Letter

Comments

to

on

"What

A

Stock

Broadway, New York 4

DIgby 4-4970
Direct

Editor)

on

I

&

to

Salt

Co.

Philadelphia

Lake

33

'

BUY U. S.

As We

See It

Bank

and

SAVINGS BONDS

(Editorial)

Insurance

...Cover

Stocks....

24

Business Man's Bookshelf

Coming Events in the Investment Field
Dealer-Broker

Investment

Einzig: "American

—■

38
8

Recommendations

and British

Brown Allen

*

8

Instalment Financing"

Consol.

16

From Washington Ahead of the
News—Carlisle

Bargercn

Mutual

page

40

Uuilu

Steel

10

Our Reporter
Our

on

Reporter's

Public

Governments

Prospectus

23

...

Report

Utility

22

Railroad Securities

Securities Now

in

The

.

.

and

33

You—By Wallace Streete

FINANCIAL

56

Utilities

Sold

by

B.

DANA

Weekly

1

Funds"

hERBERT D.

Drapers'

Gardens,

London,

_

•

.

ary, 25-

COMPANY, Publishers

SEIBERT,

Chicago.. Los Angeles

Trading interest in

-

E.

C.

Cinerama Productions

Corp.

Eng-

B.

Dana

Cinerama Inc.

Cwnpany

.

as

second-class

matter

Febru-

1942- at the. P°st office at New
the Act <* Mareh «•18™-

Reeves Soundcraft

*>*• N' Y"

9576

President

_

Subscriptions

in

United

Territories
and
Pan-American Union, $55.00

States,

Other
Ba

k

d

per

year;

Record

request

in

year.

JohnR.Boland&Co.
INCORPORATED

Publications

Quotation

on

S.
of

of
Canada,
$58.00
per
Other Countries, $62.00 per year.

Thursday (general news and advertising Issue) and every Monday (complete statistical Issue — market quotation

*Memorandum
U.

Members

Dominion'

•.

Thursday, February 17, 1955

Corp.

Subscription Rates

SEIBERT, Editor & Publisher
DANA

.

.

Possessions,

WILLIAM

1-1826

to

Henry

Copyright 1955 by William

New York 7. N. Y.
to

by

land> c/0 Edwards & smith.

CHRONICLE

2-9570

Philadelphia.

*

Reentered

Park Place,

Exchange PL, N. Y.

2

Reg. U. S. Patent Office
WILLIAM

40

5

Ansbacher Long starting on cover
page.
Twice

—

Monthly

30

Broad Street,

New York 4, N. Y.

M

•

Boston

•

Chicago

•

Glens

Falls

records,
state

Nashville

•




Schenectady

•

Worcester

corporation

and city

Other

Chicago

news,

Offices:

3,

111.

135

news,

bank

clearings,

etc.).

(Telephone

$3™° P" year> <FoieJgn Postage
,

South

La

STate

more

18

Washington and You...
"Electric

in

securities

Singer, Bean
& MACKIE, Inc.
Direct Wires

Security I Like Best

article

over-the-counter

Teletype NY 1-1825 & NY

The State of Trade and Industry

*See

250

53

Securities Salesman's Corner..
.

Request

on

trading markets

HA 2-0270

49

Prospective Security Offerings

The Market

'

23

Registration

maintain

than

55

Securities

Eng.

'

5

.__

Products

'

We

Exchange

TELETYPE N. Y. 1-5

Hycon Mfg. Co. Pref'd*

10

May

Films, Inc.

-

*

Wilfred

Elec.*

Holly Corp.

48

Funds

Observations—A.

Diesel

Guild

12 '

Indications of Current Business
Activity

Every

Albany

&

City

*

Regular Features

ST., MEW YORK 4, N. Y.
•

Teletype: NY 1-4643

wires

33

sharp

Spencer Trask <Sl Go♦
TELEPHONE IIAnover 2-4300

42
33

Impact of $100 Billion National Highway
Building Program
on
Interest Rate Level Seen Negligible
by John Nuveen

f C C D D C f| CTflPKQ

Ml L I L II l\ L U O

New York

J. F. REILLY & CO.

Convertibility Means"

_

Members

r

Roebling Forecasts Sharp Increase in Women
,___

REctor

BROAD

HOLLY CORP.

20

Fulbright 20

Executives

25

25

-

24

New Data oh' Securities Market Released
by Senator

The COMMERCIAL and

specialized in

4 Corners Uranium

•

Electric

Today's Stock Market Wholly Unlike That of 1929,
Say
Charles E. Merrill and
Winthrop H. Smith

Published

have

21

22

Atomic Powered

an

Searing.:

A Tragic Story and Its

decline in the level of commodity

1955.

For.many

Federal Uranium

and
now

operating in our economy does,
however, lead to the conclusion
that a sharp break in
commodity
prices and thus a material in¬
crease

Sabre Uranium

12

News About Banks and Bankers..

the

Conference

of

not

decline in the general
level

a

In the first

Trust

do

wage

continuing moderate up¬
trend.
Although individual

the outbreak of the Korean War,
by Dr. Nadler before the 36th

The

period will not ultimately wit¬
a sharp break
in commodity
prices. Prediction in these highly,

as

Lisbon Uranium

Slichter..

NSTA Notes

the

..

a

August 1948, when it stood at 106.2
(1947-9 = 100) to 97.7 in December
1949, a decline of only 8%. After

talk

H.

mini¬

ness

declined from the postwar peak in

*A

the

II

the

published
by the Bureau of Labor Statistics

Midwinter

in

Hence the out¬

costs.

elapsed to reach

modity prices, and thus a mate¬
rial appreciation in the purchas¬
ing power of the dollar, is not
likely to take place.
The index
wholesale

continue?"

annual

wage

clusion

last few years has clearly demon¬
strated that a sharp break in com¬

of

.

9

pressed that not enough time has

pattern
World War

experience

McKinley
Foreign Industrial Relations

in the future is not to be expected.
The
opinion has been ex¬

same

after

will

prospect

any

wholesale

This

Civil War, and after World War I.
Until recently, it was widely be¬
would

ask
the
increased

may

increase

siderably,

a

time.

of

one

commodities

thus

relatively
hap¬
pened after the War of 1812, the

short

for

6

prices

look for commodity prices, because
of the high costs of
production,

purchasing

the

of

power

in

period

a

<

ultimately

commodity

wage rate and the emphasis
important labor unions on a

ing in

after

push

guaranteed

depression and deflation. This
during the boom
and the period of
inflation the
depreciated

rates, while in
by increased effi¬

wage

trend

meant that while

power,

in

absorbed

of

dollar

many
manufacturing
actually increased. An

mum

period

a

of

in

proposed

lowed

W.

and

—Sumner

question, "If wages were
in 1954, a year of downward busi¬
ness readjustment and
unemploy¬
ment, is it not fair to assume that

in¬

Commodity Prices

in

it

activity
unemploy¬
production

in

rates

Moreover,

com¬

STREET, NEW YORK

Telephone: WHitehali 4-6551

in 1948.

upward.

a

99 WALL

business

costs of production and

panies.

inflation which ended

in

increase

wage

tends

hostilities,

bound to exercise

are

vestment

what

major war,
generally ex¬

every

from wnat

«*nu

where

ciency and in part by a squeeze
on
the margin of profits, boosts

were

different from

happened after

level

'

Honest and Sound Currency

about

or

us!

during 1954, in spite of

the

ment,

and economic and taxation devel¬

so

the

110

the postwar peak

at

which may
have
an
im¬
Marcus

about

rose
considerably, the wholesale
commodity price index remained
practically stable. What is of per¬
haps greater significance is the

ascer¬

changes

moder-

during 1953 and
1954 are of particular interest. Al¬
though business activity during
this readjustment period declined
by about 10% and unemployment

devel-

American

de¬

Developments

careful analys i s
of eco¬
nomic

stands

was

involves

The

since then has been

"

Conventional Mortgages: A Look Into the Future

vs.

—Gordon

indeed, and currently the in¬

31/2%

economy. This

reached.

was

to

Obsolete Securities Dept.

Randolph Burgess..

.—Walter E. Spahr
Insured

peak in wholesale commod¬

new

known

forces
n

a

implies

the

t i

the

an

obsoletes

•

investment securities of individual companies in an
industry,
and (3) timing of purchases and sales of securities.
The

6

Why We Need

selection -for

.

enough

bring her

4

"Politics Is the Art of the Possible"—W.

balance between fixed-

a

4

trust officer

as

knows

Investment Aspects of Gold—B. Barret Griffith

must

nomic, social and political conditions, and lists

THE COUNTRY GIRL

3

;

Giving the Helicopters Another Whirl—Ira U. Cobleigh.

investment policies. Says trust
be adapted to changing eco¬

company

investment management

Cover

Trust Investments

on

to

that their impact is bound to exercise considerable

war,

3

Salle

St.,

2-0613);

Note

extra.)

On account of the fluctuations

in

the rate of
exchange, remittances for forelgn subscriptions and advertisements must
be snade in New York funds.

BOwling

Green

Teletype:

NY

9-3249

1-4487

4

The Commercial and Financial Chronicle

(804)

hammock.

Giving the Helicopters

Piescke

million in

1953.

$86.7

grossed

Investment Aspects of Gold

Its|common shares

(unlisted) sell around 35.
There
375,000 shares outstanding;
and followers of this equity are

are

Another Whirl

particularly
secki's

By IRA U. COBLEIGII

updated look at this secondary aircraft, with some estimate

of its present

us

sort of the

as

the step child, of

dustry.

Because

Cinderella,

the aviation in¬

it did not re¬
quire a pro¬
jectile
like
take-off, and
the

related

airport

i

a

strips;
land in

be¬
could

it

cause

r-

field,

a

forest clear¬

a

ing,

atop

or

a

skyscraper;
because

it

rise

could

vertically,

or

hover motion1
Ira

U.

Cobleigh

like
sized

bird it

in

e s s

space

an

out-

humming

was

The day

common,

of the 80 or 100 passenger

efficient

transportation

efficient of

is

co¬

a

capacity.

plant

Switching from the general to
specific, let's take a pano¬

the

ramic

at

look

Danbury, Conn., I believe, of¬
fers a 7-passenger helicopter. The

ing,

sells

the

of

some

com¬

however, not

bright aerial promises
completely fulfilled.
to deny,
however, a
The

is still

perform¬

impressive; in

ful dispatch

sea

of the wounded from

rain. These functions alone would
have more than justified the mil¬
lions of inventive

hours, and mil¬
development dollars de¬
rotary craft.

Peacetime

uses

have

included

prospecting

in the frozen North,
sometimes using skis for
landing
gear, serving as shuttles for
per¬
and

supplies

in

the

ex¬

panding offshore oil drilling

have

out

assignment altogether?

There

are

two

answers
basically: (1) certain
technical drawbacks and engineer¬

ing bugs and (2) lack
capacity.

in

application.
What
be

two?

type

bration?

design

and

power

Should there be
One motor

of

employed?

power

of carrying

The technical problems

been

or

I

that meeting I

out

$200,000

into

categories

big

—

major

well

in

tests

Navy

led

and

to

for

and

The biggest company in the field

James,

This

I.

L.

common

quoted

extant,

shares

50c,

at

un¬

ultimate

design

listed. John A. Roosevelt is Board

United

Aircraft,

whose

Chairman.

leader

is

Sikorsky division has, since 1942,
produced

1,000 helicopters.
proved a durable and

over

Its S-55 has

things to be ironed out.
This is
a two engine job.
Investors who

quotation,

NYSE,

with

87

a

$4

dividend.

market

sensation

partly to

a

recent

a

agement control, and partly to its
sensational

convertiplane

new

nounced last week.
from the

at

the

on

the

an¬

This starts off

ground like

blade

three

a

pas¬

at

vertible

dividends

No

Com¬

to now.

up

over-the-counter

8

there's also

and

issue

an

of

con¬

debentures.

McDonnell
builder

has

of

convertiplane

a

boards.

Donnell

as

a

American

on

Others
include

the draw¬

on

Stock Exchange.
in

interested
Cessna

rotowings

Aircraft,

through

its Seibel Helicopter Division; and
Barium
work

Steel Corp. is reported

at
convertiplane in its
Aircraft Engine Division.
a

on

helicopter

Jacobs

This

or

suspension
How

How

one

two?

should

overcome

apply

the

vi¬

new

systems of turbine, turbo¬

has sold

high

as

as

36.

It's

a

rep¬

resentative helicopter issue.

little

icopter specialist from the start,
working away since 1949 to per¬
fect a really sizable commercial
military

plane

to

carry
40
twin mo¬

persons or more.

It's

tor

rotor-unit

job

with

ward

and

cargo

in

one

the

other

between

a

aft

like

for¬

carrying
a

the

design

Piesecki has been strictly a hel¬

and

for

is

tract

flying

military) no one single
has emerged as the sure

fire, the ultimate, type.
the

pulsion, perhaps

a flock of small
units, the ether equivalent of for¬
eign midget cars; perhaps it's the

convertiplane.
for sure;
for

you

CORPORATE BONDS

you

may

a

knows,
a

or

say

can

want specula¬

not

may

soar

rotary, wings, you've
few to choose from.

on

give them

STATE AND MUNICIPAL BONDS

Nobody

but if

that

got quite
Who

3 ESTABLISHED 18941

Perhaps

is in gas turbine pro¬

answer

tions

you

may

decide

to

whirl.

Chicago Analysts to Hear
CHICAGO,

Grodinsky,

111.

—

Professor

Julius

Dr.

of

Finance

of the Wharton School of Finance

LOCAL STOCKS

and

as

Commerce

of

the

University

of

events

the
of

that

and

and

made

I

sincerely

status

hope

RHODES-HAVERTY BLDG.
.

WALNUT 0316




ATLANTA

1, GEORGIA

LONG DISTANCE 421

Factors

and

At the

on

Investment

Growth Stocks.

to

of

parallel

be

than

subject
of

gold

"how

than

look

from

the

we

at

the

the

the topic.

Since

approximately

current

a

reserve

$25

of less

things should

be"

things are," I
that it might be
discuss

to

reason

centuries

gold from

standpoint.
repeat how
has

man

of

the

Federal

Reserve

System, have increased frqntj less
than $6 billion to just unaeF $11
billion. Never the less, and this is
almost beyond explanation, there
is
the
fact
that,
as
everyone
knows, the United States has ex¬
ported more goods and services to
foreigners during those same five
years. At the same time our gov¬

al¬

sought

gold, measured his
wealth in gold, protected himself
against dictators,
isms, depres¬
sions, and declining currencies
ways

mone¬

$22 bililon.

ernors

view¬

"how

today

no

that

because

to

prone

of

thought

over

and

Strange indeed is the fact that
during the same interval, or over
last
five
years,
our
total
liabilities to foreigners, which can
be redeemed by them in gold, as
reported by the Board of Gov¬

and rail¬

now

1940—and

been

rather

the

mind—gold

in

roads

point

to

on

observa¬

the

Because

have

move

general

economic

from

billion to

that

ernment

private

debt,

debt,

and

individual debt, have mounted. If
we lose gold during times like the

with

last five years,

ernment's

can

into

tion and, as a matter of fact, re¬
main monetarily a powerful na¬
tion? From an investment stand¬

gold, and controlled his gov¬
fiscal policies by his
ability readily to convert currency
gold

whenever

he

believed

that his government should apply
brakes to
Federal
expenditures.
ment aspects of

Gold

for several years, yet the demand
for it has increased.

gold.

Mining Industry Deflated

Today there is

no

a

Other
other

thor¬

more

the

depression

a

of

industry has survived the

litical

attacks

it during the
Along with Ameri¬

citizens, the gold mining in¬

can

dustry

has

suffered
tragically
inability of Americans to

from the
redeem

their

paper

will.

dollars

in

Domestic

gold

gold

at

pro¬

that

who

A

case

World

in

evidence

the

same

position

foreigner who
dollars

can

can

the

as

lucky

redeem Ameri¬

which

we

have

so

grandiosely handed out, and the
American gold producers cannot
sell their product at world

prices.

disillusioned
temporarily at
believe that gold
our

point is Russia. Since
II, there is every

that

Russia

has

been

feverishly

seeking gold. She has
been attempting, and not without
success, to establish a Ruble Bloc.
She has built
is

trade

a

which

area

competing with the dollar

convinced

therefore not in

value.

have

V/ar

been

are

of

continue

has

is valueless.

The

legislated
against by our
Washington and White House in¬

people
to

gold

least been led to
>

ducers and American citizens have

cumbents and

and

appear

unlike

are

selves

po¬

upon

last 20 years.

They

20

some

Remarkable is the fact that

years.

nations

nations

believe

to

oughly deflated industry than the
gold mining industry. It has suf¬
fered, in this country and in Can¬

ada,

how in the world
our posi¬

expect to regain

we

point the fact to note is that our
supply of gold has been declining

However, let's look at the invest¬

in

men

the

that gold

best weapons
in

of

peacetime

for

is

seem

of the

one

nation, both

any

and

conclude

must

area.

Kremlin

wartime

that

the

We

demand

gold continues strong. Over¬
the margin between the

night,

demand for and the

supply of this

precious metal may be realized in
this

country.

Even

today,

unfor-

In

consequence,
American gold
miners have suffered a long-en¬

during

and

indeed

a

man-made depression.
The
offsetting

entry

over-all

economic

in

balance

the
sheet

has been the expensive but to date

successfully

propagandized

sorts

of

consequently
been

the

American

*A

talk

free

dollar.

Our

Wash-

by Mr. Griffith at Western
Mining Conference, Denver, Colo., Feb. 4,
1955.

SOLD

L. A. DARLING GO.
COMMON

STOCK

M0RELAND & G9.

products.

spending has
depreciating value of

the American

—

QUOTED

pol¬

icies, exemplified by the Full Em¬
all

BOUGHT

strange

March 10 meeting A3e-

gheny Ludlum Steel Corporation
will

clined

of

subsequent events will prove this
meeting and this talk to be as

came

and

tary factors related to gold.

con¬

the investment

railroads.

price, let's

the third quarter of 1949 the gold
stock of the United States has de¬

then

B. Barret Griffith

cerning

in

tions of the

recommenda¬

tions

conclu¬

companies in the indus¬

brief

some

sug¬

gestions

are

flated

study

the

investment

long depression, and the conclu¬
sion that gold stocks are well de¬

proved

ployment Act and high prices for

speak

to

try that remain solvent after the

timeliness

The net result of paper
money and

will

there

sequent

Thursday, Feb. 24. Dr. Grodin¬

sky

did

gold mining indus¬
try has survived depression, that

Sub-

Pennsylvania, will address the
luncheon meeting of the Invest¬
ment Analysts Society of Chicago
on

paper

they

as

sions that the

gold

today.

There is

Don't discount Mc¬
possible major factor

of

Solvent
the

From

dis¬

to

cuss

is

planes,

the field. Common sells around

35

it

subject

a

then

constructive to

fighter

Navy

managers

listen¬

are

whispers

Gold Mining Companies Remain

unpop¬

the realistic investors'

Banshee and Demon, is
researching in helicraft, and

ing

of
Be¬

me,

famous

Aircraft,

Voodoo,
also

then switches props 90 degrees in
mid air and makes like an ordin¬

a

tips.

common

sells

mon

out

is working on a
be powered by jet thrusts

craft to

due

perhaps
competition for man¬

turns

job, and

senger

in

Aircraft has been

Bell

Hiller Helicopters, a West Coast

the

Harry Dexter White (whose fiscal
policies we still follow).

timely.

company,

reoresentatives

to

money

assigned the

ular

esetate

real

easily $500,-

ing

At

was as

of

feature

A

use.

Five million

are

a

railroad

a

perhaps the

and

1940.

bonds.

awarded
light weight

a

ington

re¬

subject

contract

December

last

in

was

helicopter (Rotocycle) for Marine

two

am

before

gave

worked

surely no
op¬
erations (tidal drilling
rigs have ary plane. This hasn't been around compendium on helicopters but it
should
landing platforms topside); and long enough
give you a pretty good
yet to be widely
more recently we've seen
cross section
of the companies at
helicop¬ tested in actual operation but it
ter
work here, the designs they spon¬
airport commuter and mail does present a
unique, albeit hy¬
services installed in the New York
brid, solution to the problem of sor, and the hopes they offer for
and Los Angeles areas.
Midtown straight up flying, and eliminat¬ progress, profit, and mayhap capNew York is now five minutes
ital gain to shareholders.
ing the running start.
Bell, al¬
from Idlewild
Airport instead of ways a progressive
Helicopters comprise definitely
company, has
45 minutes
away by bus.
also been a leader in guided mis¬ the most speculative area in the
So much for general
uses, but siles.
Bell common is outstand¬ whole aircraft business, and while
what has kept the
whirlys from ing in the amount of 1,290,000 there are perhaps $500 million in
really taking over this short haul
shares, pays $2 in dividends and backlogged orders here (mostly

rotor

gold, I

on

talk

a

convention

the coaxial prin¬
helicopter design—craft
employing counter-rotating pro¬
pellers on the same shaft.
The

dedicating all, or a part,
production effort to heli¬
copters.
These
enterprises fall

battleground to field hospital; de¬ wish to share in the future of
livery of supplies; and manning helicopters here can buy United
and
provisioning battlezones in¬ Aircraft common, buttressed by a
accessible by road or
path, due to $1.1 billion backlog, current earn¬
mountainous, rugged or rocky ter¬ ings of around $8 a share. Today's

have

bankers'

to

panies,

ferry use. A larger craft, the S-56,
designed for commercial use to
carry 30 passengers, still has some

the

naval

to

speaking

minded of

contributed

turned

thoroughly

more

a heavy
increasing demand for gold. Con¬

an

lieve

models

a

cludes gold and gold mining stocks look safe.
In

Gyrodyne Company of America
has

today

U. S. gold reserve,
notwithstanding

511,792 shares outstand¬
at about 2% over-the-

of their

disaster; spotting sub¬
marines; and, on land, speedy and
low flying deployment and with¬
drawal of troops; swift and merci¬

rescue

in

in

export trade balance and

counter.

ciple

practical single motor model, and
has worked out well in airport

sonnel

Doman Helicopters with a

000.

windmills.

in

voted

all

wing-transport problem.

flying,

record

lions

voting rights).
The "A" sells around 14*/£.
carrying

at

craft for personnel
from plane, or

in

and

alone must be worth

not

as

or

single motor jobs that can carry at
most seven
or
eight passengers.
rotary wing commuter bus, or a
30-ton air truck, is still in the
future—and every one knows that

the decline

shares
82,218 "B" shares (closely held

ing beaverishly away at their own
special approach to the rotary-

been

fallen

and

here

Speculation

observation

broad field of usefulness for these

war

completely func¬
tional design; and
the most ef¬
ficient
performers are still the

$207,000.

is via either 214,808 class A

metropolises,
or
to
wilderness destinations.

is

ance

with

the ultimate and

net,

side).

each

on

$11.6 million

over

not

*;

Exchange

industry which has
years.
Ascribes this to
inability of Americans to redeem paper dollars in gold at their
will. Says gold mining stocks are deflated in
price, and cites

Gyrodyne is that it owns its land
(about 340 acres) and plant at St.

all of these

volant

has apparently come up

one

sales

the usually
much smaller independents work¬

actual

This

today no

even

(one

rotors

1953

copter divisions;

congested
roadless

have

to these and related quer¬

has meant that

ies

ing

for

Co., New York City
Stock

deflated industry than gold
mining, an
suffered depression during the last 20

Navy type, employing intermesh-

search

&

York

Mr. Griffith contends there is

far.

so

aircraft manufacturers, with heli¬

in

In

answers

The

dividends

No

paid

widely believed to of¬
basic advantages, espe¬
short haul flights over

fer many

cially

jet?

or

prop

been

Among the less heralded entries,
Kaman Aircraft has developed a

value, its future uses, and the profit potentials
for leading manufacturers. 't

The helicopter has for years ex¬
cited

have

Members New

Govern¬

secure

contracts.

ment

Enterprise Economist

An

ability to

By B. BARRET GRIFFITH*

Partner, John II. Lewis

by Pie-

impressed

Thursday, February 17, 1955

...

Members

Midwest
Detroit

1051

Stock Exchange
Stock

Exchange

Penobscot Building

DETROIT 26, MICH.
Woodward
Branch

DE

2-2855

Office—Bay

City,

75

Mich.

Volume 181

tunately,

Number 5404...The Commercial and Financial Chronicle

that

after

come

realization

unhappy facts
our gold stock
large as it was

some

which include that
is now only half as

and

with

Observations.

Auto

Industry

indeed

if

they

Production

CORPORATE GLADIATORS

securities

prices, commodity prices, and

our

business boom. On the other hand,

following
easier

the

policy

interest

rates

of

the

and

ex¬

There is a possibility, but it is only
that, that the money managers in
their

present

gold

in

After

the

and

mobile.
scared

demands

brakes

Most
to

of

death

auto¬

speedo¬

a

his

on

of

affairs.

sensible

every

mobile driver
meter

installation

monetary

our

all,

position

uneasy

for

auto¬

us' would

drive

to

be
car

any

equipped only with an accelerator.
Because our monetary affairs and
our
economy may have gone be¬
the

yond

available

control

from

pushing down on the accelerator,
or
letting up on it, there are
reasons for hoping for a return to
gold before a crash.
has

It

been

pleasant indeed to

have been here today and briefly
to discuss with you a few of the

aspects

of

gold.

My

conclusion

on

as

well

investment

the

Americans

Over-all industrial output in
of last week

in

rose

about 6%

the period ended

on

A Look at the Wolfson Record
[Midst the prevalent concentration

Wednesday

subject is that
gold looks safe. I wish that more

Ward, it

construc¬

seems

record, policies, and phi¬

1954.

losophy of the chief protagonists.

Reports of important developments in Soviet Russia relative
changes in high governmental officials at first resulted in de¬
clines on the New York Stock Exchange accompanied by heavy
trading. Later in the week optimism set in and losses were largely
regained. Many stocks reached new highs for the year.
New

The current Battle of the Mid-Century for Montgomery Ward
directing the public spotlight toward that newly-discovered star
on the financial horizon, Louis E.
Wolfson. But the fact is that
constantly since 1949, when he first entered the field of publiclyowned
corporations, has he
been growing from a virtual
unknown to a recognized fi¬
is

unemployment insurance in the week ended
were higher than the week preceding, but
period one year ago.
For the week under review initial
claims totaled
201,048,
a rise of 4,393 above the
196,655 filed in the week ended Jan. 28.
The comparable figure for a year ago stood at 238,779.
For the week ended Dec. 31, 1954, the United States Depart¬
ment of Labor reported new claims rose sharply to 399,100 from
303,500 in the previous period. The increase of 95,600, highest in
many months, reflected layoffs of temporary employees by retail
stores following the end of the Christmas shopping season, and
the dropping of part-time workers by some Federal agencies.
Steel consumers are taking a hard look at their inventories,
states "The Iron Age," national metalworking weekly, this week.
They don't like what they see. Demand for their own prouuets
has improved to the extent that their steel inventories are rela¬
tively too small in most cases.
4, it is reported,

under that of the similar

looked

November

comfortable

December

or

the

nancial power.

Montgomery

no

users.

Merritt-Chapman & Scott.
This giant marine salvage and

construction

nounced

of

operation,

is

and

President

has recently an¬
share exchange of¬

Chairman,
a

fer to the stockholders of New

|g| York Shipbuilding Corporation, Devoe and Raynolds Co.,

realistic

more

he

which

way

Because of this

Outside of the
siege, an

Ward

equally important venture ab¬
sorbing his effort is dynamic

of steel stocks last
longer produces that "safe" feeling

big section of steel

among a

in

column was

our

head, Mr. Avery;
detailing the record of the insurgent Mr. Wolfson.]

with this space

claims for

What

Accordingly,

last week devoted to the incumbent management

to

Feb.

the current aspects of

on

the proxy war for control of Montgomery
tive to inquire into the long-term past

above the level of the similar period

ever-

pansion of credit could nudge us
off into
flight from the dollar.

might ask

J

raise interest

can

without upsetting

§

By a. WILFRED may

Price Index

Business Failures

hand, it will be tricky

rates

•

Trade

Commodity Price Index
Food

and

dilemma.

a

Retail

State of Trade

Looking at our Federal financ¬
ing picture, we find our money
managers faced
On the one

Production

Electric Output

Carloadings

outstanding,

currency

Steel

The

national debt.

our

5

e

in the 1920s relative to total bank

deposits,

(805)

would

A. Wilfred

Inc.

May

and

Products

Tennessee

& Chemical Corp. As

look at steel stocks many consumers are trying to build up inven¬
tories as a hedge against better business, wage and price increases
and a sudden bad turn in international events.

Louis

Wolf son

E.

devised

drab,

they

today

as

gold bricks. Un¬
and unromantic
seem to be, gold

more

attractive,

bricks and coins still

be

prosperous

the

and al¬

are

good in peaceful,
trade
anywhere
in

will

ways

Treas¬

our

world.

items and has made

Wolfson, these acquisitions Will bring
Merritt's an¬
to the $400 million level and give the company a pri¬
six major markets: construction, shipbuilding,
steel, chemical, heavy machinery and paint.
Apparently evidencing the public stockholder's confidence in
the young industrialist is the rise in Merritt-Chapman's share¬
holder population from 1,500 in 1949 (Wolfson became a director

much addition to stocks impossible so far.

(2) Demand for autos,
appliances, farm implements and manufactured products has im¬
proved to such an extent that most steel deliveries are meeting

in May of that year) to more than 12,000 at the present time.
Furthermore, new offerings in each of the last three years have
been well oversubscribed—all handled through direct offers from

actual current needs

had

ury

as

the company

Steel

This has extended deliveries

Meyer

as

of directors of National Securities
&

Research

Corporation

nounced recently by H.

was

an¬

Mr.

He received
New

will

be

let-down

in

the

Securities

of the National

manager

Series

ties

of

Mutual

books

with

total

because

of

seasonal

requirements.

heavy foreign demand

Stockholder Gains

Irrespective of any other aspect of this protagonist's exploits
—some of them assuredly controversial—the dividend returns and
capital appreciation consistently accruing to his stockholders have

A $10,000 investment in Mer¬

undeniably been of the very best.

the

some

this

year.
They are taking that
best customers are trying to get on
quarter of this year, concludes this trade

of their

the third

,

was

scheduled

the

case

of Capital Transit,

who bought $10,000 worth of

anyone

Producers

are

aiming at 653,600 completions this month.

would be the highest number of cars ever produced in
But March may become the greatest production

Securi¬
of over

first

if current programs are met.

quarter

equal

an

production

W. Gardiner Young

1955

top

record

2,000,000

That

covers

that the

1949,

In the two years of
$10,000 invest¬

a

Analysis of the three
and improved

the past week at the highest rate in 81 weeks.
The Ford division had its plants slated for six-day
operations

last

&

Scott Picture

& S. offer, which also

the few remaining shares in three previous Merritt

sitions, will make the company one of the

acqui¬

largest in the country.

expected that annual sales should approximate $400 million;
worth

excess

will

of $78

A pro

Motors pushing toward a
Meanwhile Ford Motor Com¬

Merritt-Chapman

acceptance of the present M. C.

units and

cars

East 42nd St.,

in September,

Shipbuilding,

to approximately $19,000.

The
Full

net

vious week's production.

With Stetson & Co.

over

companies indicates that in each case the growth

It is

of

and the Chrysler Corporation have been paralleling the pre¬
The independents have been turning out

pany

took

Wolfson's leadership of New York
ment has grown

month

output found General

in weekly car volume.

the Wolfson interests

today would have shares worth over $42,000.

February.

"Ward's" estimated

would

1950

8,200,000-unit annual rate.

Last week's
new

for

when

stock

eanings picture justifies the rise in share value.

of 164,876 cars set during June 12-17,
1.7% higher than the prior week's 164,265 completions.

and

$230,000,000.

Stetson & Co., 41

of

previous record

and

Investment

assets

of

half

In

$30,000, including cash dividends received by the end of 1954i

are

second

have grown to

Scott made in May, 1949 would

ritt-Chapman &

Saturday operations and overtime during the week were ex¬
pected to push production for the period to 167,095 units, accord¬
ing to "Ward's Automotive Reports." This figure is 1.3% above

of

record

Funds

soon

Passenger car production in the United States
the past week to reach a record level.

Research

&

underwriter

is

steel

weekly.

1949.

School

the

in

attitude while

B.C.S. degree from

University,

Corporation

more

bracing themselves for a March demand
they feel will make a new record since the highs of 1953.
Some steel producers are still trying to read into the picture a

Commerce, Accounts and Finance.
National

in for

Smart steelmakers

a

a

York

without the benefit of underwriting.

which

Vice-President

a

or

rush

This situation will be aggravated because of
for sheets and semifinished steel.

became Treasurer in 1935 and was

elected

90%

backlogs because most steel firms are reluc¬
high cost steelmaking equipment into production
and (4) Steelmakers must save space for long-time customers who

J. Simon-

Vice-PrdSident and
member of the policy committee,
joined the corporation at its in¬
ception in 1930 as Assistant Sec¬
retary and Assistant Treasurer. He
Meyer,

ingot rate towards

It also builds

to

Jr., President.

son,

many

(3) The extension in deliveries of cold

only.

This factor is pushing the steel

more.

member of the board

a

on

position in

mary

their supplies and the

stocks.

Mr.

nual sales

are:

tant

Kenneth

H.

of

by

difficulty in building

some

reasons, according to this trade authority
(1) A low state of inventories has been the general rule
among steel users. Now, many have suddenly decided to build up

up

get.

Nat'l Sees. & Research
election

running into

are

rolled sheets and other flat rolled products has meant that deliv¬
eries of other items have automatically become a little harder to

Meyer Director of
The

customers

prospectus

be

about

$126

million,

and

capital in

working

million.

forma (unaudited) balance sheet which appears in the

the exchange

covering

financial position of

the

offers reflects

combined

Merritt, Newport, Marion, Osgood, New York

&

Raynolds and

Tennessee, as it would have been at Sept. 30, 1954

had there been

Ship

(including

Highway), Devoe

and

Nesco

week, while Lincoln-Mercury was working comparable sched¬
all final assembly facilities except in St. Louis.
Plymouth

Continued

on

page

43

ules at

New

York

City,

members of the

New

York

Stock

Exchange, have

appointed W.

increased

production

with daily

overtime

while

DeSoto

also

General Motors scheduled overtime

at

Gardiner Young as

plants.
assembly last week was estimated
That would be slightly under the

Buick,

Oldsmobile and

Combined

of their investment de¬

manager

its

planned Saturday operations.
car

and

"Ward's" to be 181,919.
preceding week's 182.690 cars and

by

partment.

trucks.

The

decline

reflects

■I

COMPLETE INVESTMENT SERVICE

Pontiac

truck

UNDERWRITERS

*

BROKERS

•

DEALERS

•

DISTRIBUTORS

changeovers with G. M. and Chevrolet, "Ward's" said, plus smaller
truck production at Dodge.
To

date

in

1955

about

1,080,028

built by United States producers.

cars and trucks have
That is almost one-third

been
more

than

in the comparable period in 1954.
Car output is up 42%
while truck building is trailing last year's pace by 12.6%.
~
With production reaching new heights, the automobile com¬

•

rmes

•

'•

Municipal Bunds

Commodities

panies

are also reporting record or near-record sales.- Ford and
General Motors said sales last month broke the January record.

Chrysler said
A

supervised portfolio of

securities, selected for
*

chemical

long-term

growth of capital and income.
Prospectus on request

F. Eberstadt ft Co. Inc.,
(

Manager mail

Distributor o( Chemical feed, lac.

39 Broadway,

New York 6, N. Y.




were
i

new passenger car deliveries at retail last
close to the record of January deliveries set in 1950.

Non-farm
of

housing starts last month, according to the Bureau

Labor Statistics

of

the

broke all January records.
December.
A

above

United States Department of Labor,
They dipped, however, some 3% below

January total of 88,000 home starts
the

like

1954

a

substantial

33%

month's

starts totaled
85,900, was hit in 195L

December,

was

66,400, the Bureau reports.
Last
91,000. The previous January record,
Continued

on

Dean Witter & Co.

month

page

41

New York Stock Exchange •

San Fratttfeco Stock

Midwest Stock Exchange •
and other

'

'

SAN FRANCISCO •' LOS
BOSTON

•

Exchange

•

Exchange

Los Angeles

Amer%a#^it Exchange • Chicago Board?||Jrade
and commodity exchanges

leading

ANOELES

SEATTLE

AND OTHER

•

•

¥|>

NEW YORIC '• CHICAGO

PORTLAND

•'HONOLULU

PACIFIC COAST CITIES

•

6

(806)

The Commercial and Financial

i

and

Of the Possible"
of the

brought

are

ment

in

tive,

Treasury

the

sible

and to achieve it, prominent
Treasury official and former
leading New York bank executive describes the background of
both Federal Budget and the new
3% Federal bond issue.
Says it is still a firm objective to achieve a balanced
budget
administratively as well as on a cash basis. Describes the

of

its

to the

success

whether government

The most important
discovery I
made since I
moved
from

have

bank chair among you to my

my

chair

in

the

Treasury is that the
200anilesfrom
New

York
of

is

the

longest

d i
in

tances
world.

s

-

the

As

make

I

the

journey about
two

every

weeks, I real¬
ize the

change

of climate.

The

morning
physical tem¬
peratures,
W.

R.

Burgess

reported
o'clock

about

are

mate

of

the

by 7
radio,

the

cli¬

is

mally,

the compromise which
placed

the
200

political

capital

progress

budget,

great

roadblocks

in the path of mutual understand¬

ing. We do
blocks

well to recognize these

and

learn

better

how

to

Fortunately, the intellectual dis¬
tance between the two centers
has
shortened

in

recent

Two

years.

World Wars and the great
depres¬
business men into gov¬

sion drew
ernment
to

think

vice

and

vital world center.

a

gap is still there.

hear

we

ment

he

government

about business, and
Washington has grown

more

versa.

into

taught

business

our

the

went

rate
to

"Potomac

But the

Time after

of

good

old

Washington

Fever"

And

we

hear

who

has

time,

friends

la¬

Bill;

and

with

got

the

rest.

business

still

cent

bureaucrat bewail
the selfish short
sightedness of his

former associates.

yet both
So

by

are

are

right;

wrong.

for this

my

Both

old

luncheon, sponsored
friends

of

the

New

York

Clearing House for represenatives from the nation's
banks,

I have taken for

a

text

a

political

truism: "Politics is the Art of
the
Possible."
This

seems

a

mean

ture the

are
brought up to ven¬
impossible and achieve it.

"The difficult

we

do immedi¬

can

ately; the impossible takes
longer" is a motto which
in

set

frame in many a
office.
a

little

a

hangs

Washington

goal.

ander

Constitution, Alex¬

Hamilton overcame fearful

opposition. There have been other
cases
in American
history.
But

that
the

we

back

must

of

the

Constitution

day-by-day

final
was

guidance

Washington.
way

always remember

Lincoln

success

present

of

George

picked

his

slowly step by step through

*Exceipts
from
an
address
Burgess before a Luncheon at

Mid-Winter^

Trust

of

the

Trust

Division

of

Association, New

Conference

by
the

of

Dr.
36th

the

the American
Bankers
York City, Feb.
9, 1955.




money

a

re¬

which

of

as

spending

expendi¬

Spending
tive

have

we

billion

fiscal

'54.

duced

to

$3

The
to

deficit

to

icit

for

'56.

should

billion

and

be

less

we

where

practical

ations, the "Art

the

of

be

consider¬

we

achieving. As the President
his

now

defense

bringing

peacetime
well

A

stated

Never

history

prepared

as

we

are

have
to

in

our

been

we

defend

our¬

now."

of the market as
maturities pour in on you,

practical
problem
in part from a
change in the
situation.

It

became

clear

We

:

start

314%

away,

and

readjust¬

appearing

and

delay recovery.
It was
therefore practical wisdom to use
a
large share of the savings in
expenditures to cut taxes.
Also,
in time of
recession, taxes yielded
less than the
estimates. The actual

balancing of the administrative
budget was thus delayed, though
budget

was

brought into

balance in 1953-54.
A

still

cation
was

of

that

the

economic

human

impli¬

recession

welfare

Then

we

long bonds faded

business turned

down.

features

the

placing of huge

ment

orders.

prices

turned

consideration

as

While

a

govern¬

this

made

spring

was

in production had

again the

and

of

due to

second

quite
1953.

inventory and

to

economic

stability.

of

was

of

1933,

in

when

are

in

protests

was

tion that

istration

into

by

the Eisenhower

found

itself

Three forms of

restraint

Continued

on

this

to

drug.

tion. They believe in its
alleged
virtues. Their Administration and

by

in¬
For

example,
ganized

o r-

tests
eral

Walter

Dr.

E.

the

United

Council;
economists; 37
members of the faculty of Colum¬
bia

Yale

University;

11

social

New

York

Chamber

of

Com¬

the National Association of
Manufacturers; the Association of
Life
Insurance
Presidents;
the
Chicago Association of Commerce;
merce;

the

San

Francisco

Commerce;

the

Chamber

Executive

of

Com¬

mittee of the Philadelphia Cham¬
ber
of
Commerce;
the
Sound

Money

Club

over

ing

of

Fort

Plain, New
signed by
200 of the community's lead¬
citizens; Representatives of

York,

in

San

resolution

a

Francisco

Labor, Business,
Agricultural
Interests;
the

and

Directors
ber

the

of

St.

Louis

Cham¬

of

Commerce;
the
Illinois
Manufacturers'
Association;
the

American delegation to the World
Economic Conference in 1933; the

representatives

Canada,
Union
in

of

the

tion

of

Great

Australia,
South

Britain,
Zealand,

New

Africa, and India

British

Imperial Declara¬
Monetary Policy in 1933;

on

Sub-Commission

II

of

the

Mone¬

tary and Financial Commission of
the

London

710

economists

Economic

Conference

1933;

American

(in

Febru¬

Economists'

National

Of

all

the

opponents

currency,

ap¬

Committee

on

Monetary

Policy remains, after 22 years, as
an
organized obstacle to the al¬
universal

most

terminate

their

technical
the

and

field

compelled to

efforts

popular

of

both

as

educators

because of
lack of support, then the last or¬
ganized voices of warning will
money

been

stilled; and that great

gulfment of

nation in

a

deadly

a

disease, will have surrounded

our

people like the still and ominous

.

j

•

in

for

be

to

the

aware

yThey have been in¬
endless

an

that the

by

use

number

of

us

an

of

ir¬

redeemable

currency is a case of
mastery, at least, of paper
money, just as we have learned to
fly or to split the atom. We seem

man's

to

believe

made

that

have

we

irredeemable
superior

pay

people.

Gold

to
as

last

at

promises

gold

to

for
we

money,

our
con¬

tend, belongs to the days of cruder

thinking and practices; today only
our

government

should

managers

have possession of it for such

use

they deem to be in the public

as

interest.

We

to

seem

granted that

take

it

for

experiment with
irredeemable promises to pay as
money has in it so many new and
our

modern elements that it is in fact

something
ready
tice

is

but

longer

of

seem

we
our

prac¬

experiment

an

from

escape

shackles

that

contend

no

an

Indeed,

new.

to

unworthy

the

past into a new
day which holds for us only hope
for

better

and

better

things

to

come.

behavior

*An

today

is

essen¬

address

by Dr. Spahr before the
Club
of
Baltimore
D'nner

University
.+:»

D

..

14-:

m

n

v

#-v

We

do

not

new

a

ing

with

turies

of

disaster.

entertain

1V4 /I

FDh

1

1

1 Q ^

1

the

is another

ours

idea
case

generation experiment¬
a
device that has cen¬

history

of

failure

and

We

laugh at, or frown
regard as antiquarians,
who point, for example, to

upon,

or

those

Andrew

D.

j^Vntion

White's

Fiat

Money

in

France,
written
in
1896 and referring to the French
experiment of 1790 to the end of

that

century,

able

lessons

recognize

containing valu¬

as

for

any

We

us.

refuse

to

parallel state of af¬

fairs in this country when we are
reminded by White that the ma¬

jority of Frenchmen in those days,
shortly after they got their taste
of the drug of irredeemable cur¬
rency,

became,

words,

"desperate

claring

that

to

White's

use

optimists,

inflation

is

de¬

prosper¬

ity." We refuse to recognize that
there

are

any

important parallels

in his illustration of

tially that of the drug addict. Pro¬

^,

not

seem

seriously that

organized

irredeemable

tional

iv /i

people,

our

fact.

formed

of

parently only the Economists' Na¬

in

part,

old story in human

on

But

that

ways

Committee

Monetary Policy.

of

importance
longer understood.

no

history.
of

disap¬

currency.

vital

and

All this is

most

and

redeemable

a

virtues

are

fitting
and
they wear.

as

clothes

general fear

proval of
Its

and

gen¬

regard it

1934); the 92 members of the

ary,

on

the

in

Association

in

is

Our

new

a

members

the

as

There

science

professors at Swarthmore College;
the

proper

have

now

natural

it.

and banking
defend
and

money

whose

Spahr
as

Board;

of

such

Economics

eration

rea-

group

on

praise it. We

Reserve

with

advocates

press

in

and

Advisory

States Chamber of Commerce; the
National Foreign Trade
a

Our

textbooks

Council of the

(tnenj

associated

Congress in Washington believe in
it.

pro¬

came

from the Fed¬

at

39

respect

and

dividuals.

Admin¬

page

thoroughly condi¬

now

addic¬

Our

were

par¬

symp¬

storm.

plunged.

as

political

toms

situa¬

critical

than

organizations

air which sometimes precedes the
this

of

They reveal all the major

—

have

came.

rather

field

themselves

pro-socialist

a

tioned

silence, marking the complete en-

turn

of

people

in¬

the

in

conduct

scientists

many

were

the

buying

the

who

there

the

collapse

scientists

died

experi¬

movement, are largely ignored or
given the silent treatment. Our

them

upon

and

If
on

economic

threatened

finally

Much

government

an

bulge

dangerous

was

ventory pile-up went

continued,

a

half

overaccumulation

of

crescendo

and

enced

almost

tisans

of that Committee be

up

1951

and

notorious

1952, primarily due to farm price

in

away.

as

this

drops, the boom

down

an

of irredeem¬

have
Well-trained

currency

money,

currency.

acquiescence, by
the people of this nation, in such
a
currency. Should the members

wholesale

ac¬

tivities of the government
needed

sympathetic

'78-'83.

a

of

flation which began with Korea.
This inflation had carried the
cost
of
living up 12% in less than
three years.
One of its

It

further practical
the

that

spring of 1953 marked; in
belief, an economic turning
point, a culmination of the in¬

the

the cash

correct

The

in

would

of

market for

1952

was

to

driven into the bomb shelter.

were

The

bonds

of

which

worse

gradually. We made
selling $1V2 billion

by

would
ment

still

managed economy. In

about

situation

started

the

a

set

during 1953 that huge cuts
in spending without cuts in
taxes
accentuate

adopt the

you

of maturities to be refunded.

mass

was

second

economic

a

are

my

expenditures are
about
a
steadily

growing strength.

selves

are

Budget Message:

"Our

or

You

mercy

unless

Possible,"

This

individual,

country.

any emergency, the raising of new
funds would be hampered
by the

on the horizon, there
steady increase in our

a

defense capabilities.

as

the

an

a

for

inflationary price-pegging mach-

always

must

in

of

arrangement

bil¬

enter the picture. The first
hurdle
is the defense
budget. The cuts
so
far have squeezed out
most of
the water.
But with the threat of
war

ex¬

Right

faster?

go

safe

or

anisms of

Why don't

into

the

the

or

your

lion.

here is

with

years,

3's

debt

at

is

than $2.5

15

business,

A

budg¬
year's def¬

next

huge

SWs sold in 1953
just sold. When the
Administration came in

the

the

ex¬

billion.

Our

two years ago, 50% of the market¬
able
debt
was
due
or
callable
within one year.
That is not a

in

the current

$63.5

further cut of $1

next

sensible
in

move

debt.

was

of

drug thrust

for

objectives

And

able

found

eral

term
the

spread

and

re¬

year—'54-'55—reduces

penditures
eted

was

long

present

prospec¬

billion

foundation

progress.

ception of

already

a

$68

firm

a

$278-billion debt is crowded

tax

billion.

The second
fiscal

to

The

as

really want sound

we

ples and short term necessities.

this objective.

cut from

was

$78

if

Canal 3's sold in 1911.
This issue and its
timing illustrate
mixture of long term princi¬

something

substantial

far towards

like

the

the

Actually,

people
vision not

Panama

reduction."

moved

where

as

Treasury has just issued
succesfully a 40-year 3% bond
issue, the longest bond since the

like $60 billion within four
years.
a
cut would eliminate the
deficit in the budget and would
a

well

implications

tests against the use

they
thorough-going addicts. When
tney suddenly

balanced

as

and

nature

drug of

are

we

Long Term Financing

Such

for

a

victims of the

are

irredeemable

The

The

a

to

is still

is

that

goal.

a

he

'cold war' gets no
worse, is to cut

way

Here

standard

Ex¬

recalled

in

reduction

a

objective

the

who understand the

Today the people of the United
States

achieve¬

forget

of

j

the

irredeemable currency.

and

us and the people that
country is committed to bal¬
anced budgets.
History tells us
we
must
stand
by this rigorous

four-year
"My goal, assuming that the

arose

Achievement against odds finds
many exemplars in American his¬
tory. In cajoling,
persuading, and
driving the New York Convention
to ratify the

speech

tures to $60 billion

objective.

Americans

conference

press

pre-election

not

us

in

of

victims

are

emerge

this

this

came

in

pride

Monetary Policy

on

with the statement, "the people of the

able currency, and says the
urgent need is for statesmen to

reduced

short

dynamic

Eisenhower

to

By
war

reminding

rising.

President

the
cash

a

you,
with your
de¬
flected by political
considerations,
may properly and helpfully keep

current

a

let

cash.

penditures and prospective deficits

man

gone

the

faced

the

transition

cold

budget—administrative

new

budget deficit of 9.5 billion.

make

them.

surmount

it

the

to

our

still

firm

bond

Administration

power,

huge

ment,

The Budget in Practice

into

on

situation.

war

in

are

,

Federal

put

the

3%

in

is

spending,

action,

hot

But

-

When this

in

pride

spending
was carried
through without any¬
thing remotely approaching eco¬
nomic collapse.

by slowly

projects:
the new

and

the

other

from

moves

issue.

ital.

They

and

of

from

of talking
in abstrac¬
tions, let me illustrate by describ¬
ing the background of two recent

had

cap¬

an

overshot

Instead

from the financial capital
(as it turned out), they did more
than inconvenience
many people
with business in the
political

miles

slaves,

far

fashioned from many
trends of facts and opinion.

government

take

reduction

ments

built stages

founding fathers made

country's

the

our

accomplishment

may

States

go¬

basis, while at the same time
meeting the practical require¬

political action, the sudden
leap is the exception, arising from
exceptional circumstances.
Nor¬

were

different.

our

for

which

prevented

out

United
drug of irredeemable currency,"
and are therefore not impressed with the
experiences of man¬
kind with monetary inflation, Dr.
Spahr points out the dangers
and evils in our system of irredeemable
currency.
Follows
this up with a recital of the benefits to be had from a redeem¬

strong practi¬

were

great
we

huge

In

a s

interests and emotions

noticeably
When

but

same;

freedom

Economists' National Committee

Starting

achievement of balance

his first objective.

Washington to
one

The

which

institutions.

achievement

Professor of Economics, New York University
Executive Vice-President,

private

On this point

which

reasons

Currency

By WALTER E. SPAHR*

super¬

stimulate

ing further and faster towards
objective.

won

and

to

Thus, there

sticky political morass before he
the preservation of the
Union,

a

acts

or

Honest

an

And Sound

position of this Administration

cal

extraordinary cooperation

bankers, dealers, and investment

Why We Need

has been clear-cut.

financial situation which resulted in the
long-term 3% bond

issue, and ascribes

is

country

aspects of human

many

and local initiative.

to venture the impos¬

up

This

welfare. The practical question re¬
lates to the extent and the objec¬
sedes

Pointing out Americans

helping to maintain hope

confidence.

emotionally committed to par¬
ticipation of the Federal Govern¬

By W. RANDOLPH BURGESS*
Under Secretary

of

means

"Politics Is the Art

Chronicle...Thursday, February 17, 1955

when
that
came

he

an

reminded

"throughout

temporary

that "the nation

old lesson

his

readers

France

good

was

there

feeling,"

becoming in-

Volume 181

Number 5404

...

The Commercial and Financial Chronicle

ebriated with paper
money," that
"the good
feeling was that-' of a
drunkard just after his

draught."

We

shrug

shoulders

our

at

White's statement that "it is to
noted

as

a

be

simple historical fact,

corresponding to a physiological
fact, that, as draughts of paper
money came faster the successive
periods
of
good
feeling
grew
shorter." We refuse to see
any

parallel in this country to
statement that "France had
gone

beyond

statesmen
in

her

and

unwavering

thoughtful

had

taken

culties

refuge
giving

optimism,

any explanation of the

in

the
now

new

diffi¬

[arising from depreciation
purchasing power of the

the

currency]

rather

than

the

right

one." i It may be doubted that

recognize
in

the

any

we

lack of discernment

proposal

of

the

government

cultivates

money policies. We are not
impressed when it is pointed out
easy

in White's little book that
journal¬

ists

then,

as

now,

"caught it

tion of redemption in this

paper

country

on Jan. 2,
1879, or of the fact that
the longest business depression in

him

that the French people,
being warned of her severe
experiences with such currency

history—that of October, 1873
March, 1879—came during the
period when we were employing

under John

irredeemable

by

our

after

Law, 70

years

to

earlier,

that they were "now

contended

after

a

constitutional

We

trolled

their

today

government,
con¬
by an enlightened, patri¬
otic people" who knew how
to
profit from earlier
experiences
and

could

now

operations—best

tary

reposes

the

on

will

of

A

the

with

with

result of that experiment

by

"man

mous

when

are
we

impressed

we

way,

today

1 D.

Appleton
pp.

printing

Ibid.,

p.

3

Ibid.,

pp.

our¬

of

irredeemable

We are confirmed ad¬
have relatively little

in

what

the

experienced

optimistic, and

as

as

of

ognized
confirms

7.

a

our

learned

to

so-called

prosperity

production

upon

manage

our

The fact that much of
rests

for

destruction,
waste, give-away programs, and a
huge volume of debt is in high
degree ignored. The fact that we
lost 57%
of

of the purchasing power
between 1939 and

March, 1951,
1939

and

or

54 % of it between

is

now,

not

regarded

with any great amount of serious¬
The fact that

ness.

the

investing in United States
savings bonds, time deposits in all
in

the

United

States,

and

life insurance policies—this
group
alone—amounted to $123,068,133,998 for the period

1945-1951, is
understood or ignored.

either not

our

equal to 65 times

loss

for

those

six

the

years

901,000,000 in bank deposits, be¬
cause
of bank failures, for the
13-year
period,
1921-1933.
Col.
E. C. Harwood, Director of the
American

Institute

for

Research,

recently

computed

belief that

we

have

is

loss of $1,-

ex¬

is

of

losses

savers

banks

losses for
for

December, 1952, at approximately
$158 billion. That is 83 times the
losses of
failed

the

a

Economic

the

similar group of savers

period,

December,

depositors in banks which
during the years 1921-1933.

Our

Treasury officials assure
people that it proposes to keep
price level stable for an in¬

our

the

definite

dollar

our

generally rec¬
major catastrophe

what

as

last

economy.

This

enjoy the blessing of our
discovery"
as
were
the

perienced

at

our

va¬

deter¬

French people 165 years ago.
The fact that we have not

2.

3,

drug

we

"new

22-23.

2

up

Century

-

have provided

mined to

nounced business expansion which
followed promptly after
resump¬

1933,

irredeemable

an

doctors, of the non-socialist
riety, have to say; we are on

reminded of the pro¬

are

years.

granted

experiences of mankind

the

interest

dictator, Napoleon.
Nor

for

strong
protection
another severe business

the

dicts;

horseback"—the

on

we

currency.

"enlightened, patriotic peo¬
was
the coming of the fa¬

ple"

with

dozen

a

it

recession and depression.
; ;
In short, we are not impressed

"it

people." 3
that

for

take

and

with

against

mone¬

because

that

selves

Greenbacks

use

to

seem

currency

and enjoy

manage

the benefits of this best of

Senate

a

Committee to investigate the rise
in
prices in the stock market
while

[that is, irredeemable

money]-and displayed its beau¬
ties," 2 or when we are reminded

period

stable

a

of

price

sound currency.

of

unaware

the

same

the

fact

Interest

of

the

tinuation

and

aware

index

ized to
or

levy, if

necessary,

upon

before

the

business

wise

of

Andrew

"desperate
eral

of

is

D.

Coupons

to

(March 1 and September 1)

principal only.

as

to rate

$263,000 each March 1, 1958-94, inclusive

Due

Coupons

to

Yield.

Yield

Due

1958

5%

1.25%

1966

5%

1.90%

1975

1959

5

1.35

1967

5

2.00

1960

5

1.45

1968

5

2.10

1961

5

1.50

1969

5

2.25

1962

5

1.60

Coupons

1970

5

5

1976

1.70

1972

5

5

1.75

1973

5

1965

5

1.80

1974

to be

The National City

offered subject to

prior sale before

and if issued and received by

Case of Messrs.

Bank of New York

2.60

us,

2'/2
2.60

100 (price)

2.70

2.65

1986-89

2.70

100 (price)

added)

„

$1,584,000 1/4% and 1/10% Bonds due 1990-95, inclusive,

Mr. Richard W.

2.55

1984-85

2.35

2%
(Accrued interest

as

100 (price)

21/2

1983

2.60

are

2.45

2 '/2

1980-81

2.50

1964

delivery when,

2'/2

1977-79

1

1982

5

The above Bonds

2.40%

2.45

1963

for

Price

21/2%

2.35

1971

or

or

after

are not

being reoffered.

appearance

of this

advertisement,

and subject to the approval of legality by

Clark, Smith & Prendergast, Attorneys, Baltimore, Maryland.

Halsey, Stuart & Co. Inc.

Kidder, Peabody & Co.

Mercantile-Safe Deposit
and Trust

The Northern Trust Company

Chemical Corn Exchange Bank

Continental Illinois National Bank

1

Blair & Co.

and Trust

Equitable Securities Corporation

Baker, Watts & Co.

Stein Bros. & Boyce

Incorporated

Company

The

Philadelphia National Bank

W. E. Hutton & Co.

Francis I. duPont & Co.

Company of Chicago

«

Roosevelt & Cross

Laidlaw & Co.

Incorporated

F. W.
February 17, 1955.




Andrews & Wells, Inc.

King, Quirk & Co.
Incorporated

Craigie & Co.

Scott, Horner & Mason, Inc.

Robert Winthrop & Co.

what

White

Our

in

the

called
gen¬

that past experi¬
have no valu¬

Continued

1939-

Prices

Yield

our

are

mankind

$269,000 March 1, 1995
Prices

Due

1929.

able lessons for us; that elemental
principles of economics are mere-

all taxable property within the entire corporate limits of the County without limitation

Due
.•

We

being

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICE
■*

of

optimists."

attitude

ences

con¬

stable

a

dangers of

huge volume of debt.
the

the

of

crash

We minimize the

amount.

•

that

virtue

Exempt from Federal Income Taxes under Existing Statutes and Decisions

ad valorem taxes

is;

made

prices were widely-ac¬
official
doctrine
in
the

cepted
1920s

fact

County Commissioners of Baltimore County and said
irrevocably pledged to the payment of the maturing principal and interest of said Bonds. For this purpose, the County is author¬

are

that

was

of

These Bonds, for Metropolitan District purposes, are issued upon the faith and credit of the
faith and credit

a

to our people in 1933 by PresidentRoosevelt, just as they seem un¬

5%, 2'A%, 2.60%, 2.70%, 1/4% and 1/10% Bonds
as to

that

promise that

$10,000,000

payable in Baltimore, Maryland. Coupon Bonds in denomination of $1,000, registerable

means

Our people seem

New Issue

Dated March 1, 1955. Due each March 1, 1958-95, inclusive.
Principal and semi-annual interest

time and that

level

William Blair & Company

Folger, Nolan-W. B. Hibbs & Co. Inc.

on

page

44

?
8

The Commercial and Financial Chronicle...

(808)

Inc.—Memorandum—C. E. Unterberg, Towbin

Baird Associates,

Lawrence S. Pulliam

Co., 61 Broadway, New York 6, N. Y.
Trust

Bankers

Dealer-Broker Investment

Mason

It

understood

is

—

Island

Rock

S.

Lawrence

Loewi & Co., 225 East

Angeles,

Co.,

&

&

of

President

16

Feb.

Pulliam,
Vice& Co., Los

Weeden

passed
following

Mr.

Treasurer

of

the

tional

Na¬

Security

Traders

15 Broad Street, New York 5, N. Y. Also available is
on Tecumseh Products Co.

& Co.,

Pulliam

was

Copeland Refrigeration Corp.—Memorandum—Eastman, Dillon

Asso¬

ciation.

menordanum

a

heart attack.

a

Corp.—Analysis—John R. Boland & Co.,
Broad Street, New York 4, N. Y.

30

suddenly

away

Cinerama Productions

the following literature:

send interested parties

to

Report

Pacific—Bulletin—Dreyfus
Broadway, New York 4, N. Y,

50

will he pleased

firms mentioned

the

that

—

Street, Milwaukee 2, Wis.

Chicago,

Recommendations & Literature

Company

Thursday, February 17, 1955

Mr.

Pulliam
Resources—Booklet

Area

Fairbanks, Morse—Analysis—J. R. Williston & Co., 115 Broad¬

describing the Utah area—Dept. M.,
Box 899, Salt Lake City 10, Utah.

Canadian

—

Favorable

and

&

Economy

Company,

Inc.,

Analysis—Kippen

unlsvorable

607

St.

trends

James

Industrial

Canadian

Richardson

Canada,

&

Package

Sons,

Royal

and

the

industries

same

is

Broad
General

—

package

of

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

Bank
v

Building,

Ont.,

Toronto,

Also

available

he

New York 5, N. Y,

report—Cohu

&

Also available is

data

15 pulp and
Limited, 220

on

Canada

Lawrence

John
Boston, Mass.

is

Life

Mutual

Hancock

port

Street, Toronto

Bay

Electric Utilities in Japan—In current
with

particular

Ont., Canada.

1,

Hancock

—

Insurance

Mutual

Company—Annual

Life

Insurance

Chugoku

to

New York 6, N. Y. and

way,

Chome, Nihonbashi-Tori,

1-1

Pubco

Facts—Tables

of

listed

stocks

which

have

paid

Public
&

illustrated

an

York

Stock

booklet

entitled

"Understanding

Exchange," giving the history and

a

rities

New

in

Winnipeg & Central Gas
&

at

Earnings

power—bulletin—Francis
New York

New

York

I.

du

in

Pont

terms

&

and

Trust

Companies

—

91

consecutive

York

City Banks—Breakdown of government bond port¬
and sources of gross income of 16 New York
City

Banks—Laird,
5, New York.

Bissell

&

Meeds,

120

Broadway, New

York

New York City

Banks—Analysis of U. S. Government portfolio
distribution—First Boston Corporation, 100 Broadway, N'ew

York

5, N. Y.

Over-the-Counter Index—Folder showing an
up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial
stocks
used, in the National Quotation Bureau
Averages, both as to
National

York 4,

Quotation

Bureau,

over

Inc.,

of

—in

Post-War

current

Co., 60 Beaver Street,
a

tabulation

of

stocks

Tokyo Stock

issue

Co., Ltd.,
Tokyo, Japan.

of

4,

Market—Comparative figures

"Weekly

Stock

1-chome,

Bulletin"—Nikko

Marunouchi,

Se¬

Chiyoda-ku,

March—Opportunities for investment in South¬
ern
companies—tabulation—Thomson & McKinnon, 11 Wall
Street, New York 5, N, Y. Also available is a bulletin on
ACF Industries Incorporated.

Stocks for
way,

Feb. 21,

Co., 120 Broad¬

New York 5, N. Y.

.

.

Energy Is and IIow It Is Applied—4-color sheet
with listing of 100 atomic
stocks—Atomic Development Se¬

Co.,

1033

Thirtieth

Street,

#

*

N.

W.,

become

associated

Angeles,

Street.

Mr.

the

in

with

was

(St. Louis, Mo.)

Dealers

Butler-Huff &

Co., and

Cruttenden & Co., in Los Angeles.
Edwin A. McDonald and Mori
Nakashima

have

also

joined

the

Coombs staff.

Astoria.

National

cocktail party for members and

cial

their

wives

Yacht

Committee Chairmen

Federation

of

Finan¬

Analysts

Societies
Hotel Commodore.

tht

at

Club.

Feb.

the

at

Chicago

21, 1955 (Milwaukee, Wis.)

Milwaukee

Bond

meeting
and
Skyroom
of

Club

election
the

annual

at

the

Plankinton

May

18-21,

1955

Sulphur

Springs)
Investment Bankers Association

Spring

meeting

of

(Philadelphia, Pa.)

of
at

Feb.

Traders Association

Philadelphia annual dinner
the Benjamin Franklin Hotel.

of

Board

Governors.

28, 1955

(Philadelphia, Pa.)

Municipal Bond Club of Phila¬
delphia luncheon at the Union
League.

(New York City)
Municipal Forum of New York

(Connecticut)
Security Traders Association of
and

Connecticut

Investment Bankers Association

meeting

at

the

Waverly

highway financ¬

on

ing.
June

10, 1955

Municipal
York
the

(New York City)

Bond

22nd

Club

Annual

Westchester

of

New York

sociation 29th Annual Dinner at

Country

at

Club

11-14, 1955
land, Mich.)

(Mackinac

Traders

Associa¬

tion Annual Dinner at the

King

Washington

7,

March

23-25,
Pa.)

Association

Stock

Exchange

Firms meeting of Board of Gov¬

♦

Angeles; Attendance,
Lindstrom, of American
Distributors, Inc.; Publicity,
David
C.
Pearson, of Bingham,
Walter & Hurry, Inc.

Wall Street Broker
Is Honored On

80th

National Security Traders Asso¬
ciation annual convention.

16-17

(Chicago, 111.)

Fall

meeting of Board of Gov¬

ernors.

Sept. 21-23, 1955
Association

of

(Denver, Colo.)
Stock

Exchange

Firms meeting of Board of Gov¬

Nov. 16-18

(New York, N. Y.)
of

Stock

Exchange

Birthday

Partners of Walston & Company

reprensentative of the New

a

York

Investment Bankers Association

Association
of

for
Los

Bank of Los

at

Stock

Exchange

luncheon

a

Feb.

on

honored

Ike

II

Hess-

berg, one of Walston's registered
representatives, who was 80 years
old Feb.

Mr. Hessberg, one of
registered representa¬
tives working for a member firm

the

of

12.

oldest

the

Exchange, has been in the

securities

(Pittsburgh,

of

Robert L.

ernors.

1955

Club

Is¬

the Biltmore Hotel.

(Toronto, Canada)

Bond

Curtis;
Entertainment,
Wm.
D.
Witherspoon, of Witherspoon &
Co., Inc.; Finance, Franklin Stockbridge, of Security-First National

Club, Rye, N. Y.

Sept.

Sept.

Security Dealers As¬

The

Chairmen for this year, as fol¬
lows: Program, George M. Forrest,
of
Paine,
Webber,
Jackson
&

and

(New York, N. Y.)

Bond

1955,

With

—

planned

New

Outing

Inn, Cheshire, Conn.
11, 1955

ANGELES, Calif.

Funds

and Beach

March 2, 1955

joint

June 8, 1955

conference

LOS

extensive, activities

Angeles has appointed committee

(White

Hotel.

Investment

Los Angeles Bond Club

May 8-10, 1955 (New York City)

Edward Hotel.

13. C.

has

Chronicle)

Calif.—Pierce

past was in the
trading department of DempseyTegeler & Co. and prior thereto

What Atomic

curities

Financial

Inc., 602 West Sixth

Wall

New York annual Dinner at the

Municipal Bond Club of Chicago

Toronto
&

17

Apr. 29, 1955 (New York City)
Security Traders Association of

Field

1955 (Chicago, III.)

March 11, 1955

Appreciation—Bulletin—Walston

Garrett

Garrett

Waldorf

Mar.

the

on

Investment

Connecticut

,

curities

South

Front

N. Y.

appreciation.

Scale

13-year period —
Street, New

a

46

Railroad Progress—Review—H. Hentz &
New York 4, N. Y.
Also available is
lor

In

Feb. 25, 1955

yieljl *and market performance

Co.,

Louis
Municipal
Group annual outing.

EVENTS

quarterly comparison of leading banks and trust companies—
Corporation, 120 Broadway, New York
5, N. Y.

folios

&

St.

purchasing
Wall Street,

New York Hanseatic

New

Peabody

Co.—Memorandum—Fairman, Harris

5, N. Y.
Banks

The

Sec-

of

Co., 1

R.

to

ANGELES,

with Coombs & Co. of Los

Co., 209 South La Salle Street, Chicago 4, 111.

COMING

Dividends

—

Coombs & Go. in L. A.

19

Hampshire—Highlights—Ira Haupt

Apr. 28-29, 1955

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

Look

Co. of New

Service

description

Japan—Circular—Yamaichi

Co.,

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

New

the

&

15

Pierce R. Garrett With
(Special

Inc.—Memorandum—Kidder,
Street, N'ew York 5, N. Y.

of the operation of the Exchange.

Investment Opportunities

Inc.—Report—Hodgdon

for

32nd de¬

MalaikahTemple" (A.A.O.N.M.S.),
Angeles.

Street, Boston 9, Mass.

Time,

dividends from 25 to 107 years—New York Stock Exchange,
Broad and Wall Streets, New York 5, N. Y.
Also available
is

Co.,

was a

Los

Company,

LOS

Chuo-ku, Tokyo, Japan.
Investment

Development

State

of

California

Pulliam

gree Mason and a member of "A1

re¬

Hegarty & Asso¬
ciates, Inc., 52 Broadway, New York 4, N. Y.

"Monthly Stock Digest"

Electric Power Co.,
Ltd., Hokuriku Electric Power Co., Ltd. and Hokkaido Elec¬
tric Power Co., Ltd.—Nomura Securities Co., Ltd., 61 Broad¬
reference

S.

Mr. Pulliam

years.

Oxford Paper Company—Brochure—D. M. S.

companies—Equitable Securities

paper

Se¬
De¬

Bank

John

been

the

partment

bulletin

a

Company.

data on Holly Corporation.

Canadian Pulp and Paper Industry—Analytical brochure with

had

curities

Co.,- 1

River Steel Corporation—Analysis—Clark, Landstreet
Kirkpatrick, 315 Fourth Avenue, North, Nashville 3, Tenn.

&

& Company, Dominion

Canada.

80

Inc.,

Green

ties

Canadian Market—Review—E. T. Lynch

Stoehr,

1937.

thereto

with

Corporation—Progress

Gas

Budd

on

&

Street, New York 4, N. Y.

Wall Street,

stocks

basic needs of growing population.

Canadian

Batteries Inc.—Data—Lewis

Dry

James

Winnipeg,
Canada. Also

East,

Toronto,

"Population"

a

supplying

Avenue,

Building,

Bank

bulletin

in

of

Suggested portfolio

—

since
Prior

General

Portage

173

Inc.—Descriptive Circular—Straus, Blosser
McDowell, 30 Pine Street, New Ycrk 5, N. Y.

and

Street,

West, Montreal, Que., Canada.

with

Weeden & Co.

Frontier Industries,

—

assopi-

ated

New York 6, N. Y.

way,

Power & Light Co.,

Utah

had

been

business

for

65

over

He has been with Walston

years.

& Co. since

1949.

Firms meeting of Board of Gov¬
ernors.

With Hecker & Co.

ernors.

Aldens,
way,

Inc.—Bulletin—Bregman, Cummings
New York 5, N. Y.

Associates Investment
Company
ciates Investment

—

& Co., 100 Broad¬

1954 annual report

—

Asso¬

Company, South Bendf Ind.

Nov.

April 24-27, 1955 (Houston, Tex.)
Texas Group Investment Bank¬
ers

Association

spring meeting

at the Shamrock Hotel.

27-Dec. 2,
Florida)

1955

(Hollywood,

PHILADELPHIA, Pa.—Hecker
&
Co.,
Liberty Trust Building,

Investment Bankers Association

members

annual

changes,

Convention

at

Holly¬

wood Beach Hotel.

B.

Toll

with

of

leading stock
ex¬
that Bernard

announces

has

them

as

become

associated

registered

a

repre¬

sentative.

Dependable Markets in

2fomura Securities

DEPENDABLE MARKETS

Two With Richard Harrison

(Co., %Xd.

Over-the-Counter

Member

(Special

Germain
Broker and Dealer

Material and Consultation

Both

HA

2-

2400

74




Y.

Security Dealers

Association

Trinity Place, New York 6, N. Y.

Financial

Chronicle)

Calif.—Jay

Donald

C.

C.

Holmes

Harrison, 2200 16th Street.
formerly with Mutual

Associates.

Japanese Stocks and Bonds

Truster, Singer & Co.
N.

and

were

Fund

on

Members:

The

have become affiliated with Rich¬
ard A.

Securities

to

SACRAMENTO,

N.A.S.D

without
NY

1-

376

61

Charles E. Haydock

obligation

Charles

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

BOwlinp-

Gr»«n

0-0187

Head Office Tokyo

DEMPSEY-TEGELER & CO.

Haydock,
Watts,
of

74.

E.

Haydock, partner of
Schreiber, Mitchel &

passed

away

at

the

age

Volume 181

Number 5404...The Commercial and Financial Chronicle

-

(809)

r^s^en^a.J construction such

(Table I). I have already pointed
that, on a number rather than
amount basis, FHA-VA loans ac-

out

Mortgages—A Look Into the Future

counted for about 45% of all loans
on

residential

new

By GORDON W. McKINLEY*
These

or guaranteed loans, compared
looking mto the future, he discusses
likely to happen to the factors which influence the

what is

Urges

unsound

FHA-VA

have, for a number of years,
attempted to forecast the over-all

Finally:

the

United

over-all

and

the
,

loans,
Since I cannot

gage

that

have

.

-

i

r

conclusions

can '

Following the initiation of the

FHA

I

in-

been

in

program

ment insured

the

1935,

govern¬

mortgages accounted

next

few

for

years

a

steadily growing proportion of all

.astoundingly
successful in

new

residential mortgages. By the

these

late

'30's,

tempts,

it

with

that
the

-

I

During

tackle

all

War

II,

this

two-thirds,

ratio

reaching

The VA program was started in
as the war drew
to a close.

Gordon W. McKinley

In

fu-

1945

sured
of

government

in-

and

and

fell to

1946, government in¬

guaranteed

mortgages
low point, the com-

o

It

should

be

FHA

an

loan

importance has

relationship between

postwar

period,

there

the borrower pays the inpremium in addition to
interest on the loan, so that

the cost of the

money to the boris higher than the contract
rate. In addition, the true rate to
rower

the borrower

be raised above
the
contract
rate
by
service
charges. Even though the true rate
may

the same as under a conventional
loan, • the borrower is seldom

two

couraged from applying for FHAVA

loans

because

of

financed through VA mortgages

as

VA loan

through FHA mortgages. Aside
from these two years, FHA has
been considerably more important
than VA, accounting for between

more

two-thirds and_ three-quarters

and

the

total

units.

of

FHA-VA

Except

for

1947

of

financed

" "e

a,3le to secure

1S

one*

(2)

Government

insurance

guarantee has made

many

or

lenders

willing to extend maturities

to

reduce

Since

a

terms

down

1954,

loans. Thd present situation

With

to

respect

residential financing

new

total

includ-

ing

conventional
mortgages,
FHA's have accounted in recent

abnormal. But even in normal
times
there
is
sufficient
extra
work

and time involved

ing government
anteed

loans

years

for about 30%

VA's for about

the

of

total

15%.!

in

Althmiffh

so

With this brief history in
what factors

mind,

be

singled out as
having affected the relative proportion of FHA, VA, and convencan

seek government insured

mortgages, there
which

or

guar-

are

other
wuww

"for"

account

the

large volume of conventionals
Among these factors are the fol¬
lowing:
(a)

the

conventional^

most

loan

do

nerhaos

not

government insured

side—to
times

a

}?

.

forces

nature

sometimes

of

011 ney 5efide?construction accounted for by
VA

the

FHA

depress

other

times

soaring upward to boom levels.
I

should

like

to

divide

my

of all

re¬

marks into four parts:

First:

What

torical

place
or

of

the

the

his¬

government

Second:

are

have

the

are

similar

factors

compare

in

the past affected
the relative proportion of govern¬
ment insured or guaranteed loans

factors

which

in¬

rise

gages?

loans

on

Dr.

McKinley

A

of

we
con¬

in

1947

to

level

a

tently

before

maintained
ever

fairly

As far as VA's are con¬
the market is obviously

cerned,

since. In

a

search

study,

tial

counted for about 50% of all loans

Conference

for

Execu¬

tives

Insurance

estimates

1951,

Company of America.

TABLE

that

FHA

of

Economic

Dr.

Leo

VA

a4-

trAliitvxA

l

aciivaa

guaranteed loans have been the

following:
(1) In
rate

many

which

,

cases,

the

A

This

is

the interest

borrower

_r.

partly

,

cejijng placed

due

.

to

pays
,

.

is lower
the legal

contract rates

on

is

have

still

on

much

should

be

not

concluded

from

these

figures that the 2-1 ratio between
FHA-VA
mortgages which
has charac¬
most

necessarily
of

the

of

hold

postwar

the

in

postwar

the

period,

will

period

future.

there

has

In

most

been

a

yield advantage to the lender in FHA's.
The importance of such interest rate dif¬

their

large potential-for
there is

course

a

larger

announcement

pool

of

potential

buyers who have had no
military
service
and
who
are
therefore not eligible for VA loans.
(b) In the past, there have been
many small communities, located
at

some

center,
been

distance from

where

on

financial

a

funds

available

have

other

not

than

a

The

has

been

of

taken.

(c)

is not

Finally,

Reduced

Risk

builders

are

of

There is
VA

or

one

aspect of

loan which

tive to

1947

the

insurance

government

or

is
the
larger amount of paper
work, most lenders would prefer
FHA

VA

or

the

were

loans.

loans

same

The

value

ment

with

the

the

Dallas Power and
3W/o Sinking

the

type

institution such

govern-

guarantee

or

as

of

as

VA

% of Tot.

Privately
Financed

1935

Dated

FHA

^an]^ which must emphasize
liquidity because of the nature of
bank's

liabilities

fbilX of

insurance

the

morteases

from

«

Tot.

Financed

6%

__

Privately

J

Tot. Privately

thevbecome

the

standpoint

of the bank. A further inducement

jn

cage

jg

f0und

0£

a

in

commercial bank

the

exemption

FHA and VA loans from the

limits

which

amount

the

of

relate

the

conventional

bank's time

Financed

loans

deposits

or

1936

16

16

A

life

insurance

the other

company,

18

18

the safety attached to government

insurance

quite
is

a

as

or
guarantee, is
not
interested in liquidity as

commercial

bank.

Continued

on

This

30

30

Light Company

Fund Debentures due 1980
Due February 1, 1980

100

1939

35

35

100

1940

34

34

100

1941

36

36

100

1942

55

55

100

1943

79

79

100

100

The

1944

67

67

1945

23

20

87

3

23

10

45

13

52

27

52

25

48

1948

43

32

74

11

such State.

55

1947

only such
in

13

1946

Prospectus be obtained may
in any State in which this announcement is
of the undersigned and other dealers as may lawfully offer these securities

26

1949

47

36

78

11

51

36

71

15

29

1951

41

26

64

15

36

1952

39

26

67

13

34

1953

38

24

62

15

HALSEY, STUART &. CO. INC.

22

1950

38

1954 (11 mos.)
Source:
struction"

cators"

Leo

(National

23

48

Grebler,

"The

Bureau

of

Role

48
Federal

Economic

(U. S. Government Printing




of

25

Credit

Aids

Research,

1953),

Office, January,

1955).

STERN BROTHERS & CO.

COURTS &, CO.

DALLAS UNION SECURITIES COMPANY
THOMAS &. COMPANY

52

in

Residential

Con¬

and

"Economic

Indi¬

February 15, 1955,

does

page

100

1938

on

hand, although it values

Price 102.15% and accrued interest

100

1937

to

capi-

tal funds,

FIIA-VA

100%

of

legal

over-all

Combined

FHA-VA

6%

or

market-

«

Combined

place

on*gov-

or guarantee,

imDroVes

liquid

more

should

value

government

euarantee

dis-

February 1, 1955

lender.

commer-

a

Dwelling Units, 1935-1954
FHA and VA

terms

conventional

of

insurance

varies

if

as

$7,000,000

I

guar-

antee- Since the only out-ofP°cket costto the lender associated
Wlth this insurance or guarantee

ac¬

New Nonfarm Dwelling Units Financed Under FHA &
VA Programs
As a Percent of AH Privately Financed
New Nonfarm

FHA

an

is very attrac¬

lender. This is, of
course,
lessened risk because of the

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

and

FHA

a

Re¬

loans

onlj

why there is someshortage of money for

an

The

nnlv

be

availmoney avail¬
monev

and VA Loans

basis.

Although this
some
signifi¬
cance
in the past, it will become
less and less important now that
the
Voluntary
Home
Mortgage
Credit Program has been under¬
factor

ferentials is discussed later in this paper.

This

used

home

conventional

1 It

a

not

•

rfntrAYin»viAnr

volume of government insured

or

who

VA loans. But of

Grebler

between

and

t

several million Korean War veterans

hp

may

recent Na¬

in
Mortgage Banking, New York
City, Jan. 26, 1955. The views expressed
in this paper are those of Dr.
McKinley
and not necessarily those of The Pruden¬

Annual

standpQmt

lion World War II veterans plus

there

..

consis¬

Bureau

Tenth

.

which has

tional

tbe

Loans

.

k°rr°wer, the factors influencing
the

terized

amount

an

,

*rom

,

very

mortgages
'30's, the peak propor¬

been
by

number

financed.

reached during World War
II, the decline to a very low level
in the years
immediately follow¬
ing the war, and the subsequent

fluence the volume of government
and
guaranteed
mort¬

address

of

citing

tions

insured

•An

basis

„

under FHA or VA loans

...

been

picture emerges
if
FHA-VA loans with

in the late

What is likely to be the
situation in the future with re¬

the

*

or

basis. Once again, we find the rise
in government insured

Third:

to

u.

I have

units

ventional

compared to conventional loans?

spect

the

on

dwelling

What

t

~

The f Suies

mortgage
mortgage picture

insured and Guaranteed

has been fi¬

year

by government insured
guaranteed mortgages.

country?

which

residential construction

new

nanced

guaranteed

over-all

in this

0

during the past

been

the

the

in,

fir,

insured
in

has

are

one-

final figures for
they will probably
show that very close to one-half

it

send

When

1954

...

at

Factors Influencing Volume of

mortgages has flue-

half.

..

and

or

tuated between one-third and

the residential construction indus-

try

fluenced the lender.

V be just !?°r 01 to,tal !oans
am con- Ual

exact

which

in

k as I

a

the

cerning

comfort

ac-

guaranteed

mav

see

a

nrnn1popt: at a11
Prir+ie?eS at alh Many of a particularly high
purchase their own nomes, so tnat e™ment insurance
purcnase ineir ownhome™sc^that
glnce

conventional

only

very

or

FHA and VA loans.

such loans. Since 1947, the propor-

to

My

a

bined FHA and VA programs

a

the

type of loan.
We
must, therefore, turn to the other
side of the picture—to the lender's

people in the home-building and

compared

mortgages.

mortgages

the

or

prefer

rekson why borinvariably secure

important

rowers

borrower

actually

may

undertaking this task is the
knowledge that the best informed

as

guaranteed

guar-

discourage
.

limited by the fact that not all
home buyers are veterans. It is
tfue that there are almost 12 mil-

and

secur-

or

thu«

tional mortgages? In singling out
these factors, it may be well to
counting for only one quarter of consider first the factors which
all loans on new residential con- have
been important from the
struction. In 1947, however, FHA- standpoint of the borrower, and
VA loans rose to one-half of all second, the factors which have in-

sured

to

as

thprp

whv

reasons

SS

these

(3) Although there are therefore potent reasons why borrowers

factors

in

insured

builders.

many

is

anteed

with

backlogs running to two months,
is

FHA

mortgages.

greater

payments

liberalization

obviously attractive to
mortgages have thus been many borrowers, this factor has
employed
in
the
financing
of also influenced borrowers to preabout twice as many units as VA fer FHA or VA loans,
and

the

trouble, and considerably greater
time, necessary to secure such

years—1947 and 1954— aware of this fact, and he
is ioans ;s
+hat there
loans is that therp
approximately the same iwrmally influenced by the lower a limited amount
of
number of new dwelling units was contract rate to prefer an FHA or able for
this

and

1945

mating the
volume

World

above

rose

difficult prob¬
lem of esti¬

ture

of

79% in 1943.

more

relative

one-third

new

vings

even

about

nonfarm dwelling units were
being financed with FHA loans.

is

some

i sg i

m

t

a

terms.

-

in which

The FHA Program

,

guaranteed

guaranteed mortgages?

or

the

were

guaranteed mortgage?

or

mort¬

claim

In

vol¬

of

ume

States,

and

th!?e, tW.0JyP?S.,

sured

no

be drawn regarding the probable
future of the government insured

dimensions of the housing market

the

against

warns

What

insured

standard

borrowing and lending practices.

I

in

loans, and

insur-

surance

been due to FHA loans, and how
much to VA loans? Is there any

volume of government insured and guaranteed mortgages, and
what conclusions can be drawn regarding their future.
of

figures illustrate the
importance of the gov-

how much of this

In

further liberalization

favorable

noted, however, that in

-

mortgage in residential financing
during the postwar period. But

portion of government insured

government

guarantee
reduces
the
risk of the loan and thus makes
the lender willing to lend on more

■

mortgages and the factors that have affected the relative pro¬

the

or

ernment

McKinley discusses the history of government insured

to conventional leans.

Is. Perl°d*

that

ance

over-all

Chief Economist, Prudential Insurance Company of America

Dr.

construction

loans, and partly due to the

fact

9

•

ROTAN, MOSLE &. CO.

13

10

The Commercial and Financial Chronicle...

(810)

Les

Thursday, February 17, 1955

The National City Bank of New

Barbier, G. A. Saxton & Co., Inc.; Charles Zingraf, Laurence
Marks & Co.; Sam

York

ard J. Buck &

Park Avenue Branch to

John

&

Jr., & Co.; Ed Tatro, Edwin L.
Mullins, White, Weld & Co.; Ely Batkin.
Co.; Joe Donadio, Wm. V. Frankel & Co., Inc.

Co.;

Nathan A.

Krumholz, Liaison, Siegel & Co.

Security

Connecticut

Association

Traders

of

Connecticut

Association

Bankers

Investment

the

at

will

hold

its 31st annual dinner

member-guest

Feb.

Reservations

Clifford

the

at

Warwick

G.

Remington, Woodcock, Hess & Co., Inc.
F. Klingler, The First Boston Corporation.

57

"

t *-

,

"

-

foreign branches

Opposite

57th

on

a

a

had; been

bank.

a

main entrance

was

in

north

Street

terrestrial

globe, three feet
in diameter, symbolizing National
City's world-wide activities. The

Hotel

indicated

are

by synthetic jewels through which

John

or

Branch

is

be placed early

calls should

so

the

which

transformed into
the

has

construction

blocks

theatre

on

bank

While

1925.

Avenue

two

movie

OF PHILADELPHIA

held

be

limited

are

Park

20-

new

erected

the

under

was

located

25,' at the Benjamin Franklin Hotel.

luncheon-will

since

building
the

that

site

same*

occupied

joint

a

The Investment Traders Association of Philadelphia will hold

with

The

floor, lower level, and part

the

the

and

Inn.,

Waverly

INVESTMENT TRADERS ASSOCIATION

at noon.

57th

expanded offices occuoy the

story Davies Building

.

Aj

of

Avenus.

of the second floor in the

Cheshire, Conn., on Wednesday,
March 2. Discussion of mutual problems will follow dinner. Furinformation may be obtained from E. J. Bezkey, Eddy Brothers
& Co., Hartford.
*
/
'
" •
i
meeting

its

location

a

new,

SECURITY TRADERS ASSOCIATION OF CONNECTICUT

NATIONAL SECURITY TRADERS ASSOCIATION

Park

and

returned

corner

main

Batkin &

The

14,

northwest

Street

Tom

Feb.

on

the

at

J. O'Kane,

O'Kane, John

Tatro

Notes

NSTA

Gold, Lapham & Co.; Joe Mcrrissey, Rich¬
Co.; Sol Bass, Bear, Stearns & Co.

lights, concealed in the interior of

"

.

.

INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA

the

globe, shine

volves.

A

the globe

as

private elevator

re¬

serves

the bank's quarters and two esca¬

Harold

B.

Smith

H.

Welch

William

J.

Burke

t

lators and

The

.'

Edward

the

31st- Annual

Investment

Dinner

Association

Traders

deiphia will be held

:

Mid-Winter

of

Phila-

of

Friday, Feb. 25, 1955

on

lower

President

of

suite

a

John

W.

the

be

On

safe

the second

consisting

de¬

of

floor,
foyer,

a

Security

Traders

honor.

guest of

paneled in pine.-

room,

,

*

Frederic
elected

Association, will

the

private dining room and confer¬

Stifel, Nicolaus & Co., Inc.,
National

the

located.

are

ence

John W. Bunn,

where

posit, personal credit, and special
checking and savings departments
is

;at the Benjamin Franklin Hotel.

staircase lead to that

a

floor

R.

has

Pratt

been

Trustee of The Williams-

a

burgh Savings Bank of Brooklyn,
N. Y., according to an announce¬
ment

Bunn

made

Feb.

16 by

Joseph A.

Kaiser, President of the bank. Mr.
Pratt

is

Chairman

ordination

the i Co¬

of

Committee

the

of

So-

cony-Vacuum Oil Co., Inc.
*

Charles

C.

Walter G. Mason

King

News About Banks

John J. Zollinger, Jr.

The

CONSOLIDATIONS
BRANCHES

NEW

OFFICERS, ETC.

REVISED

-

Crestwood

Tuckahoe,

NEW

"

%

*

Ralph B. Feriola, President of
National Bank

N.

Y.

and

Ralph

in

T.

.

Tyner, Jr., President of National

Bankers

and

-

...

Bank

CAPITALIZATIONS

of_ Westchester,

Plains,

N.

White

at

have

Y.,

announced

jointly that the directors of each
bank
have approved
a
plan to
as

Monday, March 28 has been set
the date of the special meetings

at which the

Chase.
Bank
of

New

Feb.
E.

Smith

10.

John W. Bunn, President, National Security

Traders Associa¬
tion, Inc., following the recent successful meetings in Chicago has
announced the appointment of the
,

following Committee Chairmen:

Advertising—Harold B. Smith, Pershing & Co., New York, N. Y.
Convention—Edward EI. Welch, Sincere & Co., Chicago, 111.
Corporate & Legislative—William J. Burke, Jr., May & Gan¬

in

the

Newburger

&

Co.,

feature

of the

annual dinner

a

Security Traders Association of New York

on

Hotel, will be

Apirl 29, at the Astor Galleries, Waldorl Astoria
bond market. Members of the Committee are:

l

Joe

COMMITTEE

Stanley E. Dawson-Smith, Chairman, Cruttenden & Co.

Eagan,

Frank

C. Masterson & Co.; Hans Kuehner, Joyce,
Co.; Joe Werkmeister, Vilas & Hickey; Mike
Growney, Joseph McManus & Co.; Sol Raschkind, Goldman
Kuehner

&

Sachs & Co.
Bill

Meyers, Gordon Graves & Co.; Harry Peiser, Ira Haupt &
Co.; John Cusack, Amott, Baker & Co., Inc.; Jim Durnin,
H. D. Knox & Co., Inc.; George
Collins, American Securities
Corp.

Hoy Meyer, Joseph Faroll & Co.; Jack Blockley, Harris, Uoham
& Co.; Edward A. Harvey, L. A.
Matiiey & Co.; Harry Orloff,
Troster, Singer & Co.; Wilber Krisam, John C. Legg & Co.
Vic

Reid, Eisele & King, Libaire, Stout & Co.; Joe Craig, Goodbody & Co.; Julie Bean, Singer, Bean & Mackie, Inc.; A1
Lopato, Allen & Company; Larry Dolan, J. B. Boucher & Co.

Harold

Murphy,

Bonner

&

Gregory;

John Danemeyer, Merrill
John DeMaye, Sutro Bros.

Lynch, Pierce, Fenner & Beane;
& Co.; John Ohlandt, N. Y. Hanseatic
Corp.; George Higgins,
Clarke Dodge & Co.
Carl

Swenson, G. H. Walker & Co.; Jerry Monahan, E. A. Purcell;
Joe Guiton,
Craigmyle, Pinney & Co.; Ken Murphy, Blyth &
Co.; Dick Roberts, R. C. Roberts & Co.




Avenue

on • Avenue

head

facturers

that date

office

Office

27th

at

Trust

At

the

of

tional

City

head

office

at

Wall

40

Formal notice of the spe¬

cial meetings, with copies of the
plan of merger and supplementary

New

of

the

to the

ence

the

the
10

two

banks

days.

Bank

of

of

of

The

New

the
Na¬

York

held Feb. 15, Alexander B. Dewar

Bank

of

Chase

the

was

Man-

referred

in

to

The

Sjt

as

-

of

to

the

it

proved

is

nounced
chester

fore

?

1916,

Mr.'

In

Colbert

joined

Phenix

and Trust

Company which mergsd

National

Manufacturers

Bank

Trust

in

February, 1932. He-was appointed
.an Assistant
Secretary at the time
of

the

and

merger

Vice-President
Mr.

in

Colbert has

the

Branch

1948.

assigned to

Administration

De¬

partment and will supervise 20 of
the bank's 41 offices in
Brooklyn.
On

Feb.

14

announced

President

that

Vice-President

Popular
has
the

Ralph
and

Science

been

Flanigan
H.

Flynn,

Treasurer

Publishing

appointed

a

of

Co.,

tire

"

Office

and

(386

Fourth

of Manu¬

McCarthy

appointed

Vice-Presidents, were
Vice-Presidents.
M r.

Dewar and Mr.

erations

McCarthy

officers at

Mr. Dewar is

American
and

of

a

head

op¬

of

of

Graduate

School

of

Banking, Rutgers University. He
joined
the
bank
in
1916
and
in

served

various

until 1936 when he
an

departments

Assistant Cazhier.

was

appointed

an

appointed

was

In

1948, he
Assistant Vice-

Mr.
New
in

McCarthy who
York

July,

was

born in

publishing

last

20

years,

publications

dustry.

of

business

for

trading

mainly with trade
the

electrical

in¬

Novemebr

Trust

in

area

the

all
of

The

of

Company
The

new

and

around

benefits

of

1911,

and

in

January,

Lieutenant

in

the

Royal

as

Air

Forces, returning to the bank in

July, 1919.
was

an

In 1935 Mr. McCarthy

appointed

ier and

the

large banking in¬

a

and

National

Crestwood

local

occupies and

immediately

owns

Bank

in 1933

founded

was

building

a

adjacent

the

to

Crestwood Railroad Station
Central
This

the

on

Railroad.

consolidation

will

bring

the number of offices operated

by

National Bank of Westchester by
the end of March to 12. In addi¬

tion

plans

made

for

ditional
which

the

currently

are

the

erection

office

in

of

being
ad¬

an

Tarrytown

for

approval has already been
the

Currency.

have

offices

town,

Comptroller of

On April 1,

an

Assistant Cash¬

in 1945, he was appointed

Assistant Vice-President.

in

Peekskill,

Valhalla,

1955,

White

Tarry-

Plains,

Crestwood, Tuckahoe, Eastehester
and

New

Rochelle.

statement

the

that

National Bank of Westchester will

City, joined the bank

a

the

com¬

joined with National

received from

President.

uate of the

in

In

&

Westchester.

in Tuckahoe

Banking

1918, he entered World War I

University of Southern

this
area

Harlem Division of the New York

office.

graduate of The

Institute

the

are

facturers Trust Company. A grad¬

California, Mr. Flynn has been

of

atmosphere.
Joseph G.

Joseph G. McCarthy, formerly

Assistant

member of

Avenue at 27th Street)

in

stitution while retaining the
Alexander B. Dewar

Advisory Board of the Fourth

Avenue

Bank

consolidation will give to the en¬

*

Assistant

an

January,

been

an¬

West¬

consolidation

new

available.

Bank

the

Chatham

National

and

National Bank

•

Feb.

July,-

of

1954, the two offices of The First

-

16, by Horace C. Flanigan, Presi¬
company.

effected

be

previously

National Bank in

County

Peekskill

resources

the

will

both

Westchester.

announced

of

expected

the

of

If ap¬
that the

consolidated

Tuckahoe

dent

stockholders

with

Trust Company of
on

will'

approval to the
Comptroller of the Currency and

Manufacturers
was

consolidation

part of the county than ever be¬

*

Vice-President

a

the

of Tuckahoe

Sfe

appointment of Edward J.

Colbert

for

This

issue of Jan. 20, page 273.
*

or

submitted for

heavily populated Tuckahoe
will, it is stated, afford more
plete banking facilities to

•

Refer¬

proposed merger, un-

name

hattan
our

of

next

be

along

meeting

Directors

on

institutions during March.

*

regular

banks

then

information, will be mailed to the !
shareholders

Plans

consolidation
*

two

Fourth

Company

*

18

at

the

of Manu¬

(386
Street)

York.

Board

its

with
STANY BOND

the Advisory Board of the Fourth

in¬

meeting will
on

Dillon

consolidate

about March 31, under the charter
of National Bank of Westchester.

New York

SECURITY TRADERS ASSOCIATION OF NEW YORK
A

that

11)

C.

C.

J.

in

Street.

der

Smith,

/

Stret, and the Manhattan
meeting will be held at 3 o'clock

Municipal—Chairman, Walter G. Mason, Scott, Horner & Ma¬

Philadelphia, Pa.; Joseph E.
Philadelphia, Pa.

Chase
o'clock

11

bank's

within

Lynchburg, Va.; Vice-Chairman, John J. Zollinger,
Jr., Scharlf & Jones, Inc., New Orleans, La.
Public Relations—Hugh Schlicting, Wm. P. Harper & Son &
Co., Seattle 1, Wash.
Publicity—Co-Chairmen: George J. Muller, Janney & Co.,

John

(as of Feb.

the

on

announced

was

The

vote

of the *two

merger

it

the

and

"

Pine

non, Inc., Boston, Mass.
Membership—Charles C- King, Bankers Bond Co., Louisville,
Kentucky.

son,

Bank

will

York

be held at
Joseph

Flanigan has likev/ise

made known

Dillon, Jr., President of
Company, Inc., has
of the Manhattan Company - also been appointed a member of

stitutions,

George J. Muller

'

shareholders of The

National

proposed

Hugh R. Schlicting

President

ployees

The

indicated

that

will

be

joint
all

retained.

em¬

The

combined assets of National Bank
of

Westchester

dation

on

after

March

the

31,

Continued

consoli¬

1955,

on

with

page

47

J

"Volume 181

Number 5404

The Commercial and-Financial Chronicle

...

\

;

(811)

.

"The

American and Foreign
Industrial Relations

ish

University

are

of

some

industrial

Britain,

or

in this country,

we,

possess

developments in the
dustrial

important

saw

field

jurisprudence.

;York arbitrator

in¬

of

A

groups of components.

v

permissible to
fire

because

writing
book

the

unions

is

he

consists

and

a

about

those

I

agement.

customers

the

from

man-

intend

not

considerable

a

subject

to

allowed

initiative and

negotiated

say

these

know,

Su¬

Court

held

that

collect
Slichter

a

c o m

pensation.
tribunal

United

required

were
.

of Waterloo,

eat

to

and

7

it might

developments

jurisprudence.

President

wisely
from

that

knows

to

competent,

I

this

do

in

But
am

in¬
not

few

a

the

going to dis¬

am

aspects of the Ameri¬

system of industrial relations

can

and

them

contrast

ponding parts of
tems

words

of

sys¬

relations.

But

this mainly

do

to

foreign

in the
to the

visitors

be

States, because an under¬
standing of how our industrial
relations impress foreigners is in
itself worth having.
11

tive

not care to argue

that point, which
seems
to me to be unimportant.
Our arrangements in the field of
relations
a

that

of

each

in the
more

re¬

sense

or

less

affects
each
of
the
that they constitute a

intimately
others

them

be

may

system

so

group of arrangements for

dealing

with certain matters and are col¬

lectively

responsible

for

certain

The American system of indus¬

trial

relations,

like

♦An

address

National

by

Prof.

Academy

I
was

in

deter¬

disabled

persons.

In

not

the

which

of

final

unions

one'

the

shift

to

those

in

on

the

some

shop

to

and

terms

collec¬

to

the

of

The

American

dustrial
trade
wish

pressed

employers.

briefly

visitors

by

too

the

were

I

2

of

some

Trades Union

extent

and

Ibid.,

p.

Productivity,

nearly




another

British

lowing

employer
I

team

de¬

large

some

paying

hiring

was

look

to

am

sure

would

surprising

way

"Companies
ficials

in

called

attention

the

to

was

fact

Contents

the

advantages of
clear,

seems

kind

after
of

been

this

oiie

relating

The

be

that

national

British

introduced

not

of

built

undermining

up

creating

a

sort

of

industrial

serf¬

dom.
-

4 British

Trades Union

Congress, Trade
Unions and Productivity, p. 57.

17.

us

the

look

now

briefly at

distinctive

look

at

employers.
the

Let

activities

begin

me

of

lar

usefulness

productivity

the British team

report of

dustrial

the

engineers

which

announcement

is neither

United States in 1953 under
the auspices of the
Anglo-Ameri¬
can

Productivity;

members
many

of the

Council.?

features of American

agement

which
less

that

or

of

most

tween

they
unique.

the

American

managements

Ibid.,

cussed
6

in

Ibid.,

7 The

are

United

the

(1)

relatively high devel¬
opment of local unions including
considerable

the

of

degree

same

of

the

on

(2)

The prevalence

eering
and
through the
Department

industry-wide
(3)

the

by

of

terms

a

agements

15-23.

to

buy

any

of these Shares.

.■

Common Stock
($1 Par Value)

are

agreements,

between unions and employers.

These

differences

larly marked if
dustrial

in

relations
with

States

one

in

not

gone

local

where.-

These

points
of differences,
however,
also impressed union visitors from
Britain

Great

much
than

more

tinent.

A

unions

unions

team

of

ten

to

the

in

United

Trades

Union

Allen &

1949.

Of local unions in

Company

Reynolds & Co.
Incorporated

Con¬

the United States the British team
said:

compliance with the securities laws thereof.

union, of¬

the

by the General Council of

in

such

Con¬

was

British

sent

of

ficers

the

Copies of the Prospectus may be obtained from the undersigned only in
States where the undersigned may legally offer these Securities

are

like American unions

the

are

where

$28 per Share

unions-

far.

very

Price

in¬

United

relations

countries

development of

has

the

industrial

continental

the

particu¬

are

compares

February 15, 1955

on

p.

18.

of
Commerce, Washington.
good description of European man¬
as seen by American observers
see
the article by F. H. Harbison and E.
W.
Burgess,
"Modern
Management
Western Europe" in the American Jour¬
nal of Sociology, July,
1954, Vol. LX, po.
For

bargaining;

rights of workers

la

report of the team is

203,000 Shares

The considerable degree tor

page

in

on Industrial Engin¬
copies
may
be
obtained
Office of Technical Services,

or

than'

rather

bargaining

company

of local

be¬

European

differences

publication

The Pittston Company

local

autonomy.

true

Productivity Report

offer to sell nor a solicitation of an offer
off er is made only by the Prospectus.

'

The

is

11.

p.

title

is com-4
States:

It

57. This matter is also dis¬

p.

relations stand ouf

the

with

pared

considered

and

The

what country

matter

saw

man¬

differences

Continued
5

The

British team

characteristics of Ameri-'

industrial

can

no

an

of in¬
visited

the

with*
This

practices

Of particu¬

eyes.

is

unions.

in

Three

-

some

characteristics

American

through foreign

at

the processing
procedures could

the

day-to-day inter¬
individual worker.

to

require

to

that

were

and

management
that
have great significance for indus¬
trial relations.
Again it is useful

difference

agreement,

without

re¬

American

of look¬

they

team

the

the

the

of

a

in American plants.
But
ways are needed to introduce some flex¬
ibility into these rights and to prevent

to

of

most

p. 16.
In
pointed out some of the
the British procedures. It

a

to

IV

Let

Ill, No. 1, 1938,

however,

of

British
as

point

unionists

vigilance

ests

Collective Agreements
Hindsight," Journal of
the Society for the Advancement of Man¬

seme

the

confused

struck by
initiative with,
which unions in the United
States
the

of

agement, Vol.
this
article
I

fol¬
same

find it
employ union of¬

important

British

of

Wisdom

report

the

the

on

manner."6

that

bit

a

and

between British and American procedures
some
years
ago
in
an
article
entitled
"The

its

obviously

to

this

more
3 I

in

added

comment

worth while

after

that

find

the

the important seniority rights which have

im¬

point

team

the activities of trade unions and

of

Boston, Mass., Jan. 28, 1954.

At

the

ing at the practice. Here is what

now

17.

all

Slichter before
Arbitrators,

called

a specified number
chairmen. To the British¬

and

new

cases.

Congress, Trade
p.

be

management's

managements

their

of

1 British

Unions

and

discuss

to

the roles

are

British

affecting
employer
is at stake.

of'.in¬

system

relations

unions

employers,

or

on retaining the trust and
confidence of the members."5

•

the

becomes

'

British

chairmen

least

of agreement,
peculiarly
the local union and its

countries

government

of

the

ers

national unions from time to time

impose

their

employers should not obscure

trade unionists

the

i.»

lationship between shop chairmen

of

which

The

when

to

members

by the fact that the

elected annually and
continued stewardship

are

depends

The

for the time of

of the control which

or

British

of shop

employers is taken over by na¬
tional vice-presidents and repre¬
sentatives

has

in

need

no

problem

•

stage of negotia¬
local

between

that

on

im¬

outside

anyone
a

-

plants

asso¬

extent

with

is

scribed the practice in

exer¬

Brtish team

the

dealt

there

and

grievances.

aware

be

can

Any

officials

union

union-com¬

Problems

.

.

the

big that the international union

in

team:

distinct from
basis
as
in

that the

suspect

considerably\ tions

does

The two most interesting aspects*

gress

the

govern¬

States

results.
-

it-

bargaining.

defined

Perhaps it is wrong to designate
as a "system" a group of arrange¬
ments that has grown up Without
being planned as a whole. I do

as

our

hand,

desirable

which

garded

and

decisions

from

United

industrial

Perhaps

do

now

other(

most

into
.

in

are

looking after the
employees and pro¬
cessing their grievances. You will
be surprised, I think, at the
way

."2

.

whole

,

corres¬

foreign

some

industrial

of

I intend

with

it

other

the

not

he

not
too
painfully reveal
ignorance of arbitration was
What
he
suggested.
Well,
the
broadest topic that I can think of
in the labor field is comparisons
between the systems of industrial

Consequently, I

of

.

written

interests

the practice of col¬
bargaining on a plant or

than- Britain.

Britain

plant.

such

matter:

com¬

all of their time

with

basis, as
industry-wide

officials

look

.

would

cuss

British

autonomy
Locals is directly

in

consultative

of

cancelled out

impressed by the fact that
in
many
American plants shop
chairmen spend all or virtually

auton¬

the

joint

A.

The

that locals
looks
at
the
activities of some may accept. But even when • the
other governments, such as those local
negotiators give way to a
in France and Italy, one is in-' representative sent out by the na¬
clined
to ask whether it would; tional office, a local or company

me

countries.

to

were

than

many-

employment

countries.

sick

On

my

different

of

the

agreements.

the

of

of

by

here- lective

mining the incomes going to re¬
tired
persons,
unemployed per¬

problems that you are so expert
at handling. Something broad and
general that might give you what
he called "background" and that

of

countries.

government

governments

more

suggested that I refrain
talking about the kind of

relations

words

"Much

an

ment

your

and

the

would be desirable if

these and other impor¬

recent

dustrial

other

most

industrial

this

appropriate for

seem

to discuss

the

impor¬

local

company

the

a.m.

as

less

ciated

in

sons,

audience such

of

related

confidence

British;

following words:

the

that

dealing with management lose the

and

prac¬

inside

suggestion

were

States to the American practice of

negotiating

cised

conditions

Neb., forbade barbers

an

is

British

The

American

impressed

practice in many plants

matters

United

interpreta¬

agreement

the

about

say

greatly

fairs of the union with
particular
regard to day-to-day production

large extent matters dealt

a

by

in."4

the

of local unions in the United

omy

govern¬

the

representative

one

that

country.

The

setting of compensation and

take

7

in this

gov¬

has less to do with the immediate

town

between

States

Certainly,

p.m.

Before

tant

to

The

oaths.

onions

so

autonomy still left to local unions

all

you

ment

that

proper

appearing in professional bouts in
non-Communist

funds

right in being im¬
pressed with the large amount of

tance than the role of the govern¬

administrative orders. Boxers

Indiana

As

are.

activities, of the

ment in industrial relations in the

-

in the
case
of a dislocated jaw suffered
while yawning
at work. There
were
also
important new laws

and

the

however, the role of the

An

held

differences

as >

States have increased enormously
in the last 20 years.
Even today,

work¬

men's

systems of

relations—important

ernment in this field in the United

bartender, hit
by flying beer
steins,
may

was

government in

in

to report to
plant unless

pre¬

locals,

conclusion

the

reason.3

mediately

were

industrial

in

welfare

their

by

the

British

preme

Australian

in

abuses

reaches

restau¬

of

described

S.

the

difficulties

unions

trade

pany agreements.

Furthermore,
the

national

venting

U.

tne

given consider¬

are

recalls

one

some

of

rant. The New

compensation

rule

"To

considerable

discretion.

much about differences in the role

Jersey

H.

de¬

rules,

in

involve

bound by specific rules but which
make a decision on the basis of

Although

national

to

are

stub¬

unsettled, would often
umpire, are taken in

an

mittees

of
.

the

if

to

go

a

veto by the national

a

of the

Sumner

locals

considerable

a

time

Britain to joint district or
joint
national committees which are not

the

measure

autonomy.

and the owner

the

of

which,

the

which

-

would

with

when

with

group'rep-.

coming

Questions
States

would

the

kpown,

to

were

companies engaging union of¬
ficials or shop stewards on a fulltime basis, looking after the
af¬

matters,
they

well

time

unionists

of

bornly challenged the right of the
employer to dilute skilled labor.

national

unions,

is

as

from

tions

limit

and

describe

not

of

able

trade

relations

third

do

sec¬

arrange-';

the

have

"We

with

on

to pay somewhat
to
these

seem

attention

subject to

principal

of

from

their

employers;
resents

less

though,

In

with

which

local

possess

locals

coming

the whole

tices

or

ments

waiter

a

of union members. The
British

American local unions usually act

One group

by the government; the
group

in

matter:

specific rules to protect the rights

1

.

British

the

team

vided
ond

.

the
'v

Of autonomy, but everything
is
relative, and to British unions our

represents the arrangements pro¬

New

held that it is not

agreements negotiated by
American
unions
contain
many

locals

that, in its basic characteristics, fits
conditions here reasonably well.

1954

of

having

as

gree,

year

which

the

companies.

influence

probably

system

a

'tneir'

ways

unions

relations

other systems, has three

The

is

locals determine much

policy.
Americans, familiar

policies

Holds despite strikes and disrup- >
tions in industrial relations in the U. S. are more severe than *
Sweden

branches

own

various

-

in industrial relations.

of

their

'

two most

in

with

many cases

foreign systems covering the same field.
interesting aspects of the American system
the important roles played
by trade unions and by employ¬

ers

union

be¬
Brit¬

and

officers and full-time clerical

tions

some
aspects of the American system
of industrial relations and makes
comparisons with correspond¬

Finds the

locals

staffs, do their own administra¬
tion, handle disputes and griev¬
ances
insofar as they
are
able,
and frequently conduct negotia¬

Dr. Slichter discusses

ing parts of

trade

own

Professor of Economics

Harvard

difference

American

degree of autonomy exercised by
the former. They often have their

By SUMNER H. SLICHTER*
Lamont University

essential

tween

11

12

(812)

The Commercial and Financial Chronicle...

Thursday, February 17, 1955
t

is

Estimated

little

chance

any public fi¬
nancing for this project in 1955.
Any serious change in the in¬

Supply and Demand

For Investment Funds in 1955

ternational political picture
of

invalidate

course,
A

current

seems

to indicate an increase in

ings for capital

political picture, that the supply of long-term investment
funds in 1955 will be about $33.6 billions, whereas the de*

-

for such funds will

mand

billions, indicating
deficiency of about $1.6 billions.

<

forecast

The

-supply

exceed $35

of

for

the

and

"long-term

the

demand

investment
herewith.

presented

of

1955

In

randum

lows the

those

as

of

the

of

invest-

ment

again
sisted
in

the
Spencer

in

the

United

States

whether to raise

; refund

expected
*

years,

of

not

the

and

money or to

to

the

which

Announces Promotions

hazardous

Officer,

debt

of

compiling

these

*

f
-*>

^

\

£ /
/

highway

it is believed that there

as

TABLE

I
.

ment

of the

accumulation

of long-term

invest¬

funds, including repaid funds that will seek reinvestment;
by private and non-U. S. Treasury

and the demand for such funds

public

sources

except for the exclusions noted.

Crevis

M.

John

John

S.

Evans

Life Insurance Companies
A&sets

of

billion

but

invested

life
it

in

$5.4

insurance

companies are
anticipated that of this

is

real

estate

and

$0.2

billion

estimated
amount

used

to

increase

$6.0

with

State and Local
Assets

be

must

are

expected

to increase

is

in

U.

because of legal
Treasury issues.

S.

these

of

must be

0.9

billion

other

but

it

is

the

personal

estimate

trust

U.

in

of

funds,

S.

Treasury issues.

Funds

5.2

long-term funds accumulated

and

charitable

and

by

individuals,

'

endowments.
this total, $1.8 billion is
expected to be put in savings or time
deposits in commercial banks; $1.0 billion in
tax-exempt securities;
billion in corporate
bonds, stocks, and foreign securities; and
in

real

estate

about

8%

of

Repayments

$8.7

1955, amortizations and repayments will equal
$75 billion of 1-4 family residential
mortgages,

the

$30 billion of multi-family, commercial and other
similar
mortgages, and 8% of the $8 billion of farm
mortgages
outstanding at the end of 1954.

repayments

maturities

of

to

themselves

of

estimated

an

„

$0.2

billion

and

a

includes

commercial

(Deduction

State and

of

money

(Deduction
new

18-

money

the

and

family
other

that

new

residential

multi-family

Includes

a

the

repayment

requirement

to

of

their

$8.7

of

$12.3

billion

Can you imagine

Second

young

or

elected As¬

in, and make

the

of

recently Man¬

Methods

Division

of

Tinkler, Jr., has been

Profit-Sharing plans.

Company and after ex¬
perience in the Credit Department
Economic

and

Investment

Analysis Department, he

policies.

But the subordinates who would

policies,

but carry on with their own ideas.

This is responsible today for a lot of Mr. Eisenhower's
trouble
with his own party. Men in his
party sound off bitterly about his

being too New Dealish but when
their complaint

tom

publicans.

him

around

in

The

seem

in

you

get right down to rock bot¬

is

reason

that he hasn't given jobs to enough
in most instances, although he and the

many

cases

to have taken

a

was

Re¬
men

devilish delight

appointing so-called Eisenhower Democrats, is that he can't.

;

Truman, before he left office, went about willy-nilly blanket¬
ing Government employees under Civil Service.
Perhaps, the
darnest thing he did was to give life tenures to
postmasters. They
now have the same security as a Federal
Judge and there is no
possible justification for it. Since time immemorial they had been

considered political patronage. Had Eisenhower had a more
prac¬
tical knowledge of politics when he took
office, one of the first
been to

un-

blanket these people. This late he doesn't have the
political power
to do it.
He got into further trouble when he
brought down a
scholastic friend from Columbia University and made him Chair¬
of

man

all

the Civil

Service Commission

and

instructed

him

to

go

to

out

uphold the integrity of the Civil Service Commission.
His friend hasn't had any more sense than to do
just that.
You

may say that this is all to the good, that our vast Bu¬
should be made up of civil servants dedicated to the
public weal, as, for example, in Britain, and aloof from partisan
politics.

reaucracy

Senior Administrative Assistant in
the Trust Department of the' Trust
Pension and

new

carry out those policies have come to be "career'*
in most instances pay no attention to
the new

and

men

things he would undoubtedly have done would have

1953.

M.

more

But the subordinates of that
repudiated Govern¬
the job. New Cabinet officers
may come in, do

pro¬

What is

being done, however, is the destruction of the

two-

party

system and the loss of the hold over their Government
which the people have had. These
employees, more than 2 million
of them, the ones who really make the wheels of Government
turn,

incapable of being fired, beholdened to nobody, are inclined to do
as
they please.
'
And in spite of

the propaganda of their Washington columnists
organizations to which they belong, they are well
paid, lead an easy life and have attractive retirement benefits. A

of

money

the

Investment Analy¬
He had been a

Department.

Security Analyst

prior

to

to Assistant Secre¬

funds.

repayment
from outside

of

$2.0

sources

billion
of

indicates

$4.8

requirement of

repayment of
$4.9

$1.9

billion

Bank,

private

indicates

billion.)

of

money

the

Canadian

issues,

and

other

foreign

requirement

of

repayment of
$0.5

$0.1

billion

as

can

indicates

men.

To

Hold




are
no

Outing

$18,000

as

a

year.

This in order that the Government

no

trouble

holding these

Neither does it have any trouble holding Congressmen who

threatening to increase their salaries to $25,000 a year. I mean
disrespect to the legislative body in the slightest wnen I say

that not

LOUIS, Mo.—On Thursday,
April 28, and Friday, April 29,
1955,
the
St.
Louis
Municipal
Dealers Group will hold its "An¬
nual Outing" in St. Louis.

more

$1.6

3 With

than 10% are worth that much.

GREENVILLE, S. C.
Carver, Sr. is with Joe

—

T.

E.

McAIister

Co., 318 East Coffee Street.

Investors Realty

(Special to The Financial Chronicle)

LOS
C.

(Special to The Financial Chronicle)

$35.2
in 1955

a

hold them.

billion.)

Deficiency of Long-Term Investm't F"unds

high

get

With Joe McAIister Co.

securities.

estimated

than

stenographer in private employment in Washington.

tary.

0.6

and

Government stenographer, for example, is far better
paid

ST.

billion.)

(j.8

estimated

the labor

The fact is that the Government has

billion.)

Demand for Long-Term Funds
Indicated

was

on

St. Louis Mun. Dealers

indicates

6.8

own

estimated

requirement

International

new

a

It is a commentary on the various groups which make studies
of the Government that the Hoover Commission has
just come up
with a report that certain technical men in Government should

refunding.

(Deduction

or

be expected to

dwelling,

Foreign Loans
government

man

he

ment remain

business mortgages.

estimated

mortgage

sales
of

money

(Deduction
a

kid enlisted

sis

an estimated $4.8 billion of fixed
interest obligations
billion of preferred and common
stocks issued both for new

and

19-year-old

or

Lieutenant

Economic and

1.9

0.1

comprises

and $2.0

Carlisle Bargeroa

and

$21.0
1-4

Corporate Financing
This

He

his promotion

Municipal Securities

Excluding direct
a

cite at least

can

Therefore, I get
„awful kick out of Secretary of Defense
Wilson's marching up to Congress and
saying
an

Security Analyst.
.James E. Ledbetter joined the
Trust Company in 1951 and has
been assigned the entire time to

USES

Mortgages

new

Pres¬

Comptroller's Department.

Senior

and

the sponge and go back

up

$33.6

Supply of Long-Term Funds

a

•

$12.7

Total

iarm

was

moted to Senior

temporary borrowings.

estimate

Artillery.; He
before

William C. Henry in 1947 joined

2.0

Maturities, Refundings, and Sinking Fund Payments of
Corporate Long-Term Indebtedness and Preferred Stocks
Foreign Debt Retirements

This

in

Crevis, new Assistant
Comptroller, has been with the
Trust Company since 1941 and has
wide banking experience.
He was
Manager of the Tabulating De¬

and

Municipal Maturities and Repayments

Excludes

Colonel

the Trust

of

State and

16

com¬

Company, where he specializes in
and

that in

the

for

reserve

Lieutenant

Samuel A.

$20.9

Mortgage Amortizations

7V2%

of

types

of

ment in 1951.

ager

mortgages.

Total

It is estimated

a

Company of
joining the Trust
Company in the Banking Departr

the

Funds Requiring Reinvestment:

Real Estate

Theatre

and holds

partment, and

educational

Of

billion

years

European

Marietta

John

1.0

$1.6

$0.8

six

Humphrey

sistant Treasurer in

requirements,

are
expected to increase $1.2 billion but
that $0.2 billion, because of legal or other
require¬

invested

Other Accumulations of
Long-Term
is

the

-

the Field

companies

anticipated

ments,

This

$1.4

or

Assistant

ident of Evans-Glenn

2.0

Casualty Insurance Companies

Assets
it

invested

to

1.9

anticipated that $0.5 billion,

Fire and

Ledbetter

4.5

insurance companies.

funds

in

mission

Funds, including Pension Plans

these

of

E.

with
Company
and Industrial Arts, before enter¬
ing the armed services.
He was
months

will

Savings and Loan Associations
Private Pension Plans
funded

James

provide policy loans.

to

Mutual Savings Banks

Not

Vice-President, John M. Crevis to
Assistant Comptroller, Samuel A.
Tinkler, Jr., to Assistant Trust
Officer, and William C. Henry and

be

billion

$0.4

throw

to

and vote it out.
promo¬
tion of John S. Evans to Assistant

Mr. Evans spent

Billion

Public

Washington representa¬

in this country, or at least a new vested
interest. It has become
almost impossible to fire a Government
employee. These column¬
ists in the Washington newspapers
immediately go to his defense.
The result is that the American
people may tire of a Government

President, announced the

Robinson

New Long-Term Investment Funds:

Relations

York

should have a Government
Employees' column, a
department devoted to the Government employees, around whom
Washington's economy turns. The young man's column caught on
and the other Washington
newspapers quickly followed suit.
;
Through these columns there has developed a new

Secretary.

SUPPLY

its

as

Public

New

aristocracy

to

pro¬

firm

a

a

Within my narrow ken I
dozen examples like this.

idea

...

distinct

a

of

joined

being able to make the money, his board and
clothing included, which he makes in the Armed Forces?
In
the early 30's, shortly after Eugene
Meyer bought the
Washington "Post" on the auction block, a young man sold him the

to

moves

estimates

the newly proposed
gram,

decided

First

Treasury

further

had

came

during which he had the

experience

he

back

that when he

into the Service."

an

is.'

management

present

make

was

member

a

called

"They expected me to get business here,"
friend explained. "It didn't work out. I

come

1955

The fact

been

a
straight face that it is necessary to
raise the pay of the Armed Forces to hold them,

No consideration has been given
in

through this type of fi¬
nancing is note(J as part of the

hadn't

and

Reserves," I said.

with

possibility.

raised

Estimates for

replied that, no, he wasn't
Reserves

training.

my

operation

lengthen debt maturity

be

may

Georgia

take

climate

refunding

basic

officials

funds

for

however,

mean,

economic

philosophy

-

of

the

'

;

..

tive.

Trust Co. of

and

long-term

Equity financing is expected to
.be of major importance in
1955;
therefore, an
estimate
of
the
amount

important sectors of

more

•

*

t

the

the

monetary policy is in
accord, further long-term offer¬
ings by the Treasury will not take
place. The success of the current

maturing debt, have been

excluded.

also

does

if

right

Treasury,

new

is

This
that

practice

past

operations

He

of

Relations

its

As has been
L.

corporate
*

-

similar form.

as¬

preparation.

Girard

considerably before the end
A slackening in some

vary

•

didn't know you were a member of the
"You been called back for training?"
'

theless, economic conditions could

of

the other day to run
all dressed up in the uni¬

"I

Administration's

needs

problem

has

period ahead. Never¬

ATLANTA, Ga. — Following a
calendar 1955; i.e., the first half meeting of the Board of Directors
of the Trust Company of Georgia
of fiscal 1956.
Treasury borrow¬
ing this spring to meet its cash held recently, Marshall B. Hall,

in

field

interest

of the year.

largely of temporary is¬
sues—mostly tax anticipation se¬
curities—during the last half of

group

experts

this

>

made up

pre¬

vious years. A
small

a

Treasury cash requirements raised
through public offerings should be

same

of

rates for the

firmness in

a

fol¬

pattern

Your correspondent was quite surprised

small cash surplus for that year.
If this projection proves
accurate,

memo¬

*

The

-

general,

.

from

toward

trend

of the News

into his fellow Country Club member
form of a Colonel of the Air Force.

out of World War II

sources.

is

.

demand

borrow¬

from the

purposes

«V".L

By CARLISLE BARGERON

economy later in 1955 could
budget alter the current outlook for the
pattern of interest rates.
projection for fiscal 1956 indicates

for

funds

this

.

over-all

li

appear

commercial banking system and a

tional

t

Ahead

probable in the

This would

year.

Washington

esti¬

shortage of long-term invest¬

ment funds

Mr. Spencer estimates, barring serious change in the interna¬

From

would,

these

mates.

By GIRARD L. SPENCER

Partner, Salomon Bros. & Hutzler, New York City
Members of the New York Stock Exchange

j',

of

ANGELES,

Flanagan,

and
come

Alfred

Calif.—James

George F. Rogers,
Young have be¬

W.

associated

with

Investors

Realty Fund, Inc. Mr. Flanagan
was formerly with First California
Company
ment

and

Standard

Co. of California.

Invest¬

Walston & Co. Adds
(Special to The Financial Chronicle)

SAN FRANCISCO, Calif.—Ben¬

jamin M. Ichiyasu has been added
to the staff of Walston

Montgomery

Street,

the New York

Stock

and San

Exchanges.

&

Co., 265

members

of

Francisco

Volume 181

Number 5404... The Commercial and Financial Chronicle

Continued from page 9

1960, housing demand

years to

tually

entering

will be lower

the

Outlook

ac¬

marketplace
it is

than

at

presr

me that we may
difficulty
even
in
maintaining home building at the

It seems to

,ent.

have

Mortgages—A Look Into the Future
not

mean

not

heavy purchasers of

VA

that life companies are

mortgages.

occupy

These

mortgages
proportion
of

higher

a

FHA and

of

FHA-VA's

is

quite

apparent.

In the first half of

1953, as an ex¬
situation de¬
proportion of gov¬

tremely tight

money

veloped,

the

ernment

insured

total life company
mortgage hold¬
ings than is true of any other

mortgages fell to the lowest level

type

since 1946.

of

lending

the..value

of

institution.

the

guarantee itself to

But

insurance

or

life company

a

came

of

and

guaranteed

Finally, as money be¬
easy after the middle

very

FHA's and VA's rose
consists
primarily in the greater rapidly, and during the extremely
safety and only to a much smaller easy situation in 1954, they have
extent-in the improved liquidity soared to the highest proportion
of the mortgage.
of the postwar period.
From

analysis thus far it
would appear that most borrowers
our

and

most

sons

for

loan

to

view

of

have

accounted

lenders have good

preferring

FHA

an

or

VA

loan.

conventional

a

rea¬

In

this

fact, it would seem
logical to ask why FHA-VA loans
in

the

past

only 40-50% of all loans
residential

question

on

construction.

brings

important

to

us

factor

for
new

This

the

most

affecting

the

1953,

During the period 1948-54,
changes in1 interest rates were
not, of course, the only factor af¬
fecting the relative volume ' of
FHA-VA and

to

money

has been

inated. The institution and subse¬

quent rescinding of Regulation X

Although all of these, and

demand

for

mortgage
strong. Al¬

very

in

volume

the

period

w^ith of

5%,

money

mar¬

ceiling. This relationship was usu¬
ally changed through a move¬
ment in the general money mar¬

course some regional

although

one

at least
1953—when
encouraged

there

period—the

FHA-VA's

was

year

were

through both a raising of the con¬
tract rate ceiling and an easing in
followed the practice, however, of the general money market.
imposing an artificial maximum
variation and

the

on

some

to year.

year

VA

contract

rate

of

FHA

and

mum

and

market

been that

price, the result has

artificial preference
has been created for conventional
an

What,

then,

the

loan.

VA

and

into

the
on

guaran¬

therefore

money away

channels

rate

of

maximum

insured
has

loans

mortgage

possible

soundness

artificial

The

government
teed

best

with

forced

from FHA-

conventional

channels.
Since
FHA

borrowers

loans because of

VA

or

usually prefer

lenders

toward

service charges are
available, thus forcing the builder
where

only

the

or

borrowers

difference

But

to

take

the

between

the

and

rate

up

the

FHA-VA

conventional

rate.

lenders are,

ested

in

of course, inter¬
maintaining volume, in

preserving- favorable relationships
with* brokers, bankers, and build^
and in serving the mortgage
needs of the country as well as

ers,

We

possible.

therefore

find

all

sorts of combination arrangements

under which lenders agree to take

certain

a

loans

amount

along with

a

It

of:

FHA-VA

given amount

of conventional loans.

<

«

relative vol¬
to

Effect

different
factors, bearing on both borrow¬
ers
and lenders, which influence
the proportion of FHA-VA loans.
There

(1)

Some

these

of

many

are

favor

factors

con¬

Changing:

Credit

ings

volume

the

on

of

FHA-VA

is

loans

particularly apparent as
the general credit situation in >the
country tightens or eases. In 1948,
as credit tightened
and the rates
on

the

alternative

investments

rose,

proportion of FHA-VA loans

fell.

In

eased,

1949

the

and 1950, as credit
proportion of FHA-

their

of

field, there

also many other

are

institutions

the

have

which

latitude

in

market

they

enter.

includes commercial banks,

group

life insurance companies, and also

savings banks. The mort¬
market is not, therefore,
isolated money market, but in¬

an

stead is tied into all the other loan
markets

funds from
In

one

market to another.

estimating the likely future
of

course

is

(2)

mortgage loan rates,

factors

fer

lender

the

most

both the

influence

would

borrower and

to pre¬

government insured or guar¬

a

anteed

loan.

(3) The major stumbling block
to

VA

the

is

loans

legal
If

the contract rate.
rate

of

volume

increased

an

ceiling

therefore necessary to consider

not

only the conditions which will

housing
market, but also the general con¬
obtain

probably

ditions
Here

quite

a

It

the

funds.

loanable

all

for

emerges.

in

picture

different

seems

to

that the

me

over-all demand for funds during
five years

next

I

simply

also

on

estimate

the assumption

both

the

governments

Federal

state

and
over

rate

of

to

'borrower,

would still

cause

case

standpoint

the

to

mentally
which

ket

will be heavy. I call
particular attention to the new
Federally - encouraged
highway

program.

ognized

It is not generally
that

this

about

the

to

two

depend

annual

long-term-funds

10%.

the

next

people in school and college
also increase tremendously,

will
so

that

school
will

we

have

building

call

for

only begun

in

reducing the proportion




our

This

program.

further

state

and

I

would

there

conclude

will

be

from

this

when

ernment insurance.
the

sound

artificial curbs and distinctions in

will

the

is

maintained,

tinued

yield

conventionals,

government insured
share

the

of

that

so

No

one

can

dict what the government
but

I

believe

creasing

oppose

is

in¬

and

encourage¬

that

Lee

contract rate
or

differentials

effect

N.

ceil¬

in

Chairman.
had been

these

much

program

and

the

the firm for 54
years.

Charles

to

legislation.

present

be

ensured

at

low

for

preference

Cotting, f

A .dent

conven¬

And

the

benefits

insurance

be

made

much wider group

the

of

to

of

than

persons

a

at present.

has already
gone
as
far as is desirable in
lengthening maturities, and down
payments on lower priced homes
have dropped further than is de¬
sirable.
The
housing
market
not

therefore

be

stimu¬

These Notes have not been and are not being
This announcement appears as a matter

offered

to

rate

$25,000,000 3lA% Promissory Notes due

Direct

these

turn

outlook

to

for

or

remove

the

ly

a

the

the-future

ease

or

for

tightness

in

the mortgage market.
over

the next five

February 17, 1955

was

elected

Vice-President.

Roland

syndicate
Norman,

Merrell,

head

of

the

department,
John
A.
of the institutional de¬

partment, and John H. Stafford,
Jr., head of the municipal depart¬
ment, were elected Vice-Presi¬
dents of the

firm.

the public.

Company
February 15,1970

placement of the above Notes has been negotiated

Salomon Bros. & Hutzler

some

Treasurer.

Vice-President, was elected to
newly-created post of Execu¬

con¬

principles in mind,

I believe that

Vice-President,

a

by the undersigned at 100

ceiling-in these mort¬

and

Chapelle, former¬

Frederick H. Schroeder, former¬

$12,000,000 3%% Subordinated Notes due October

gages.
With

Board

of record only.

Associates Investment

dje La Chapelle

President.

tight or easy.
And
second, the decision of the govern¬
tract

the

Richard de La

ly

R.

Chair¬

of

man
-

be

ment to retain

and

elected

tive

government

-

Treasurer, was

program

available

E.
o r

Presi-

merly

down

mortgages would be elim¬

mortgage

He

asso¬

with

ciated

to

stimulus

more

of

Honorary

payments and long maturities. The

The

i

elected

was

plentiful supply of loanable funds

would

Penrose

loan

priced

housing demand than is provided

inated.

40

have

changes

the Board and

raised,

different

of

guaranteed

artificial

Corporation,

following

in management:

changes
would be to greatly widen the
scope of the government insured

tional

the

as

the

the

provide

Higginson

announced

homes would be lessened.

would

can

expanding and

re¬

between

under

mortgages

an

Wall Street, New York City,

.

or

of

future.

Hallowell

ings would be removed

The

guaranty

original conception of
signed
insurance.
This would
.Chairman

that

value

di¬

Higginsen Corp. !
Official Appointments

its

mortgage

and

If the fu¬
sound

Lee

particular types of
building, or to favor particular
types of
home buyers.
As the
housing market begins to show
some
sign of weakness—as 1 be¬
lieve it may well do during the
next five years—it would be quite
logical for the government to re¬
encourage

mean

■

this

the

to

turn to

in

look forward to
prosperous

housing industry in
general, and did not have the
provisions which were later added
to

' course

rection, I am confident that the
building industry, the mortgage
loan industry, and the whole pro¬
gram
of government
insura :ce

ceiling. As I pointed out
earlier, the government program
of mortgage insurance was orig¬
as an

insurance,

ture

the rate

ment

en¬

industry will
lowering of

unsound

an

of mortgage

on

sentiment for removing

inally conceived

time

further

the

to

standards and will instead urge a
to the original conception

pre¬

be

people.

the

return

will do,

will

there

when

associated with that

will

probably remain between 45 and
50%.
But
is -the
government
FHA-VA rates?

benefits

important
home-building industry, all those

the

market

its

more

introduce

to

couragement

guaranteed

or

total

that

hope

comes

for the higher

preference

that

so

available to

be

I

we

therefore likely to see a con¬

are

program

will

If the legal ceiling on FHA-VA

rates

The future of

program,

to me,

rise above the present level.

contract

FHA-VA

it seems
lies not in encouraging un¬
borrowing
and
lending
practices, but in eliminating the

that

rates

and

practices

in

engage

ardize the whole program of gov¬

no

intervals

some

to

likely to put them into financial
difficulties, but would also jeop¬

construc¬

softening
in
mortgage loan rates in the period
ahead, and that there may be

should

local borrowing.

general observations regarding the

rates

by
five

the number of children and

years

be expected in coming
That is, whether the mar¬

let's

the effect of rising interest

home

new

tion, there is likely to be a shift
in funds out of the mortgage mar¬
ket into other lending markets.

factors:

the

serve,

in

liberaliza¬

borrowers

encourage

funda¬

related

VA's

climbed sharply.
Following
March, 1951, "accord" between
the Treasury and the Federal Re¬

rec¬

alone

program

can

will

decline

only

some

therefore

First,' the general credit situation
years.

lenders

strength, plus

be attractive be¬

loans

me

on

this

-FHA-VA

of conventional loans.

guaranteed

moves

if the

conven¬

government insurance
or guraantee
would induce lend¬
ers to agree to lower
down pay¬
ments and longer maturities than

or

in the next five years will there¬
fore remain strong.
Because of
over-all

further

existing coverage. Further
along this line would "not

on

the

in the

the

From, the

rate.

the

loan

closer

were

tional

and

years

climb

attractive to the lender

be

of

the next

in the future
to perhaps 75% of all residential
mortgage loans. There is no ques¬
tion that this type of loan would
might

of

general prosperity, but

the fact that borrowings

on

five

will be quite

predicate this

through

tion of

maximum

no

government insured or guaranteed
loans

lated

demand for funds

FHA-

imposed, I believe that

were

it

young

hand,

other

the

On

loan.

States be¬

ability of many lend¬
shift a portion
of their

to

ers

the United

in

of the

cause

Over

conventional

wide

a

of lending
This latter

type

therefore

the

this

in

funds

increase

seems

The effect of contract rate ceil¬

all

most

loans, even from1 the is likely to
standpoint of the borrower. It is ;demand for

unlikely that FHA-VA
loans will ever entirely supplant

Mortgage Funds

likely to maintain the ceiling

Although many mortgage lend¬
ing institutions are specialists in
the mortgage market, placing al¬

ventional

.

Situation

r
.

of

not

local

that

me

follows:

as

are

The future of government insured
The

that this conclusion
necessarily follow.,.

the

seems

Fur¬

indicate, how¬
does

thought will

strong.

concluded

of FHA-VA and conventional

ume

to

seem

inevitable.

rates

ever,

be

conventional

loans, a bargaining process has in¬
evitably followed.
Lenders are
willing to take FHA-VA loans

ther

would

supply

forecast of some softening

a

interest

continued

the

lower down payments and longer
maturities, since builders realize
the sales potential in this type of
loan, and since rate ceilings force

in

factors affecting the

the conclusions

secure

make

not

mortgages?

consistent

higher

and

demand

lower

forces of

from this discussion of the various

may

to

two

Loans

can

mortgages.

Even though lenders
actually prefer FHA or VA
loans, it is of course their duty

Volume

Regarding

FHA-VA

of

since this maxi¬
has usually been below the

loans,

free

variation from

The government has

Conclusions

construction,
I
surprised if there
is not some decline in mortgage
loan demand in the years follow¬
ing 1955, At the same time, there
will be a slowly rising volume of
savings seeking investment
through institutions which nor¬
mally are interested in the mort¬
gage market. At first glance, these
should be very

many

ket situation and the contract rate

ket,

home

new

as

gage loan

relationship

was

million starts per year level.
Although the demand for mort¬
gage funds will not drop as much

for

The over-all

one

relative

mortgages,
throughout

factor

the
between the general

of mort¬

the price

FHA-VA

of

dominant

some

encour¬

or

the

has hovered around

market

important

an

factors at times
discouraged the

aged

money

free

had

other,

the demand has been such that in

gage

also

course

and

mortgages, the rela¬
tionship, between the supply and

a

elim¬

borrower

though there has also been a large
supply of money available for in¬
vestment

later

effect.

the

the

housing law

and

in¬

Throughout most of the postwar

•

introduced

were

loans—the

the yield to the lender.

period

were

whole sections of the

of

cost

mort¬

changes in
down payment and maturity pro¬
visions during these years, and

and

terest

There

gages.

relative volume of FHA-VA loans
conventional

conventional

13

(813)

1,1968

,

14

The Commercial and Financial Chronicle

(814)

quently,

Canada's Program of
Atomic

ment

Energy Use

kets
the

the

of uranium, and the

earlier

The

first,
in

ga n

with

third,

a

military
recognized

be-

join

with

United
dom

King¬
the

States

the

bomb.

and

Our

two

method of
one

find

to

a

struction

Chalk

atomic

the

of

This

reactor

at

will

of

this,

and

it is

the

by

the

second

part

began late in
failure
reach
of

of

stage of
of
the

United

raw

United

Nations

the

on

weapons.

time partnership

to

is

impossible

to

say

at

this

be

after

March

31, 1962, the

for

also

purpose

and

peaceful
into

took

to

—

power

programs in the

of

cause

the

reactor's

size

high neutron flux, should
finest
is

in

the

world.

expected to go
June of 1956.

in

This

second

the

be

This

into

and

reactor

operation
the

of

stage

com¬

hopes for
tion of

the

industrial

applica¬

atomic energy had

a

to tell you

why

think this is

we

so.

When the nucleus of the uranium
atom

is

in

split

reactor,
of
heat

a

quantities

mous

energy

released.

are

designed

In

exclusively

enor¬

and

reactors

for

which

must

be

early sixties. It is

of

source

its

cost,

will

power

translated

kilowatt

for uranium in the early stages of

generated.

hour

of

cost

electric

Canadian atomic power program

will
our

take

up

only

potential

a

small part of

production.

Conse¬

economic

ISSUE

2,000,000 Shares

energy

raises

second

a

consideration

the

—

bomb

creasing

twofold

economic

consideration,
we believe that atomic
power, if it
is
to be used for large
central
power stations, must be produced
cost

a

of

not

greater

producing

than

the

in

power

a

to

come

pend

on

will

I

on

military
First

let

somewhere between

5

a

and

7

mills per kilowatt hour.

STOCK

Let

us

with respect to

solve

in

problems

which
these

and

the

taking

are

we

to

problems.

all

the

of

reactors

now

The

other

than

say

fuel.

as

fissioning of uranium

is

vast

pro-

and

these

conventional

used

this

in

coun.ry

in

increasing
quantities,
mostly in the form of coal, oil and
gas. Uranium will compete with
will

fuels

give the customer

when

more

heat
cus-

tomer

can

pound

of

tains

get in other ways. A
natural uranium conalmost

an

amount of energy

unbelievable

convertible into

heat, if and when most of it
be

it

dollar of cost than such

per

can

converted.

so

Today we must
deal with the pro-

realistically

ducible heat from the isotope 235,

constituting about 7/10 of 1%
the

whole

In

the

reactor

chemical

tendant

tary

Company was formed to explore, develop and oper¬
mining properties. The Company is now in
exploratory stage.

the
The

Company

holds

by

assignment

4,226.48

acres,

of which 3,266.48

and 960

acres

are

in

leases

acres are

programme

mental

the

tion

in Colorado

question

Utah.

that

producing

Copies of the Offering Circular may be obtained in
any State only from the undersigned and others as
may lawfully offer these securities in such State.

heat
a

with

ficiency.

nuclear

a

and

be achieved,
degree of ef¬

Therefore,

space

of

14

of
at-

and

treatment

and

c

=

even

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

Please
Green

the

Genti.emen:
send

e
me

a

Mountain

free

copy

Uranium

of

the

Offering Circular

relating to

Mines, Inc.

E

known

is

this business
from

ideal

have

the

nuclear

a

it

on

yet

does

to

be

that

mean

information

~
now

K U

available

to

prepare

us

for

We

Fuel

as

that

know

the

competitive

.

.

point tor uranium as fuel compared with other fuel, considering
cost

alone,

mately 3 mills
of
electricity.
uranium

is

approxi¬

kilowatt-hour

per

We

know

that

give a considerably
operating result than that
rignt now. We aiso know tnat the
can

competitive

point

for

uranium,

compared with other fuel, taking
generating costs into account

ajj

c;UCh

interest

as

investment

on

(including investment in the full
SUppiy 0f uranium needed to fill
the

reactors

start

at

tions), is about
owatt-hour

country
io

of

as

of

mills

of

but

average

an

kil-

fuels

are

about

important

where

country

our

yentional

operaper

electricity for the

11 mills in certain

or

argas

more

con-

expen-

sjve

On the one end of he uranium

..

lln<; m "?ls st"dy of competitive
T^W?rhnT the ™
wfh? gltS
h

$o.00 pei

out

we

pound to

the

use
of some of the isotope 238,
multiply the heat value of the 235

bv

tween

better than

two times

from about

In

Other

we can

words, the heat that

£££?£«

with

today

as

"we* ca'nUget

100 barrels of average

crade crude oil
giade etude on

or
or

sav
say

25 tons of
a tons 01

soon

arrangements

as

can

be

milling. I expect we will
mining
ore
from Hidden

Splendor
than

the rate of not less
per day. From this

at

600

tons

daily amount of
duced by

ore

be

can

pro-

present methods enough
the central power

heat to fuel all

plants in New York City for one
day.
The
isotopes
235 in
that
production would
few refrigerator

a

ice cubes in size but would do the

take

fueling
about

with

do

line

to

that
18

an

or

with

do

oil

do
do

with
with

to
to

would

it

railroad

9,000

coal

nincline
pipeiine

job

cars

inch

no

multiplication by two

eas
gas.

by

the

of

use

more

or

converter

reactor.

S
Preclatl0n

°n the excess amount
of P°wer Plant facilities needed

for

uranium

,

■

The fuel

the

large

ing

,

impact of

central

stations

future

involving

as

built

in

the

tremendous,

facilities,

smoke nuisance from

any

coal, and the

like.

"in-between"
ments

0f

rado,

corner

Utah,

Mexico

eraj

0f

barrels

of

oil

about

in

competi-

can

dollars

pay sev-

pound

per

jsotope 235 and, competitively,
certainly pay on the order of

$20.00

more

or

tural

costs

steadily
art

jn

due

the

These

to

horse

and

we

down

in

progress

that

na-

"in-be-

coming

are

Remember

of

pound

per

uranium.

tween"

the
still

are

buggy

stage

of

the uranium business,
A

I

Look at the Future

have

diligently

Jation> growth
sumption,
cost
cost

of

coal,

and

•

con-

prospective

and
gas

P°PU~

electric

of

other factors.. It is

the

studied

basic data as to Srowth of

oil,

and

conclusion

my

fhat' by the fueled1960 there will
year
uranium
central station
merely

New

and

per

in

barrel,

experimental

as

plants

like the Duquesne Light Company
plant

now

tion,

but

volved,
basis

1,200,000,000

$1.00

ele-

can

opinion

place, worth

the ground about

this

these

for

because,

thousand

Colo-

states of

Arizona

have

field

cost

fuels.

in

spread

tively, the customer

v

The four

wide

a

on

it does elimination of

transportation

is

{acilities

conventional

power
plants in course of congenerat-, struction in the United States, not

power

be

to

uranium

therefore

is

There

the

over

for

.be

-

m

costs

to

inch

natural
natural

and

ctemica7proce^^

pipe¬

36

a

or

losses

covers

needed
As

of

cores"—

standpoint

has

sufficient

to

abandon

jargon

"reactor

reactor

designed—but
we

now

not

development
in

as

is

Uranium

Point of

natural "ran'T ln hls °fe: ,°n the
°ih?.r ead ,we have w^at 'he user
°f the„fuel can
The 'm-be-

already, in conjunction

can

over

are

This

years.
we can

what

«

we

the main hurdle--and in the brief

suggest that

*.Z

reaction

can

high

research

:z

experi¬

experience

gained in their design and opera¬
has
demonstrated
beyond

covering

tellier & Co.

for

or

purposes,

:

The Competitive

better

duces heat. Fuel for production of

heat

reserves.

operating

uranium

to produce

ate Uranium

>

tion factor of only two for "conversion" but without the effects
of breeding, contains more than
20% of the heat in all such oil

the

operation were-designed either, No effects of breeding are taken
plutonium for the mili¬ into account in this statement and

This

of uranium.

military

its heat producing

qualities, that is to

same

look at some of the

now

While

1

or

;.j

amount of the isotope
235 in such ore, with a multiplica-i

strength.

discuss

me

amount of daily

ton,

per

benefi¬

a

the small

de¬

of uranium.

only amount to

$8.00

engineering

~

pres-

provides

discuss

y

uses

using

steps

|

our

greatest assortment of fire power,

for

cost

Price 15 Cents per Share

all
time

peace

military

Uranium

in-

some

Fire power is the heart of

coal

COMMON

with

We

uses.

unstable

our

all

at

and

safety and

our

somewhat

ent

various
and for

now

conventional thermal station
at

generating stations,

power

capacity of 4 million kws. will

a

the hydrogen

or

military

knew that

deal

to

connection

in

bomb

other;

or

start

cost

URANIUM MINES, INC

plants having

going

uranium

mand

be met, and their prob¬
cost.
On the basis
of this

|

economy.

fu¬

can

source

large central

on

made for

for

MOUNTAIN

with

the atomic

ture demand for power in Canada,
the sources from which this de¬
able

"jiiuimimiiiiiiimiiiiiiiiimiiiiimitmmtuiimiEimiiimmiiimiimiiiiiiiiiiE:

This

on

per

competitive

a

future, is tremendous and will have

our

power

not

am

over¬

depend

into

1

of
of fuel. Holds the full
use

•,

I

pluto¬

other words, it is a waste product,
the main purpose of our work at
Chalk River is to find a way of

concern

'

very

good chance of being realized. My
main purpose this evening will be

whose

be fueled by uranium. Foresees no excess reserves

strength.

bined program, which might be
described as the transitionaLstage,
came to an end late in
1953 with
the
realization that our
earlier

evident, however, that the demand

GREEN

plu¬

experimental facilities.
These experimental facilities, be¬

war¬

with the United

1965^

,

,

Concludes, by 1960, there will be
central station power plants in U. S., and by

on

fuel

uranium

pur¬

produce

be built in the

cial effect

account

to provide larger and

as

V*'

executive,

company

large uranium mine, describes the

a

impact of uranium
to

energy

improved

difficulties

govern¬

Jan. 24, 1955.

NEW

used

atomic

buying but on a re¬
come
in
designing a power re¬
happens, it
actor, perhaps I should state the
can be safely predicted that there
problem in its economic context.
will
be 1 some
requirement for
The importance of atomic fuel as a
uranium for use in atomic

by Mr. Bennett before the
of Trade, Toronto, Ont.,

Board

ap¬

government

a

Toronto

income

will be

control

Our

ment decided to continue its

•An address

market

profit incentive
The results" have

production

uranium fission

the

of

-

duced scale. Whatever

program

1947, following the

the

agreement

atomic

the

that

confirmation
that

investment

recently acquired

re¬

using this heat. The obvious use
present expiry date of the guar¬ is the
making of steam to drive
anteed market. The military de¬
a
turbo-generator
in
a
power
mand may continue at the present
plant. This is what we mean when
rate or may cease altogether. On
v/e speak
of atomic power.
the other hand, we may have a
Before I discuss the engineering
situation in which there is still

found

not

are

extensively

States

materials

characteristic

time what the demand for uranium

Kingdom.
The

its

guaranteed

a

The annual gross

war.

It

still

reactor

Because

used

our

Canada.

con¬

facilities for experiment

elsewhere.
United

and

NRX

This

testing which

being

bombs.

design

the

River.

provides

was

decision

4

'.■■■■

,

Prominent

supply..

proximately $100 million, ranking nium production — that
is, for
uranium in fourth place
in the military purposes—the heat is ex¬
gross dollar of metal production in hausted in the reactor
coolant. In

producing plutonium—

in

if

provided.

from

undertook

is needed for

and

the

Bennett

of the fissile materials which

resulted

It

production
in
Canada
will be something over 12 times
as
great as it was at the end of

bomb.
we

It

uranium

material

the

any

confirmed this. By the end of 1957

First,
supplied

uranium, the
of

be

reasonable

a

were

kinds.

Second,

with

vigour,

contribution

raw

would

conviction that the industry would

respond

we

for

uranium.

of

sources

de¬

of

we

adequate

an

material

raw

velopment
of
the atomic

was

of

supply
future
peacetime program. Early in 1948
the mining industry was asked to
participate in the search for new
of

the

and

United

that

guaranteeing

to

be

dual

although it was
by
increasing

one,

■

metals

continuing demands of the
military program. Hence, the new
reactor has been designed for a

production

uranium production

Canada's

decision

in

entering

wartime stage,

or

the

This

belief

poses.

uranium. Again the objective was

1942

the

tonium
in

prevail

base

in short

not

River.

could

other categories.
States

President, Atlas Corporation

the

concludes private enterprise in Canada should be allowed the
maximum freedom in the application of atomic energy, as in

a

other

of

case

Chalk

powered electricity at from five to seven
mills per kilowatt, but notes there are problems still to be
solved. Discusses probable demand of Canada for power, and

two

By FLOYD B. ODLUM*

meet

and

create atomic

pro¬

Uranium and Its Commercial Future

in 1951 with the decision to design
construct a second reactor at

Aims to

now

sub¬

to

expect

conditions which

are

flected

stages and is

require¬

back

cut

The second stage of the research
and development program began

way

Canada's atomic energy
gram
has
passed
through

is

„

in

for the peaceful use of atomic energy.
Says hopes for the industrial application of atomic energy are
on the
way to realization, as "we are over the main hurdle."
under

program

military

or

should

and

same

which

President, Atomic Energy of Canada, Ltd.
resources

the

stantially,
Canadian
producers
may have to look to export mar¬

By W. J. BENNETT*

Mr. Bennett describes Canada's

if

ceases

.Thursday, February 17, 1955

..

on

with

power

in

a

the

economies

strictly

other

that,

a

in-

competitive

fuels.

by

stations

States having

of construc-

course

for

It

is

my

1965,

central

the

United

in

generating

capac-

ity of not less than 4 million kilowatts will be in operation fueled

mm

«

getting

Name

the

t~rm
MM

«

*

Address

E

*

1
mm

City.

State

~

cifmmjHiHiiiniiiiiiiiiiiifiiuiiiiiiiiiiiiiiiiiiiiimmgimiimmHHmimMiuimTi




the

over

second

hurdle—

engineering

of a power
actor. To put it another way,
are

now

able

to

define

the

re¬

we

This

I

regard as the most

Continued

on

page

46

hundred

thousand

fairly good grade
heat

engi¬

neering problems which must be
solved.

Six

producing

ore,

tons

of

taking the

content

of

only

with

uranium,

new

plants

be in-

stalled thereafter
ascending

•From
fore

the

an

address

National

by

Mr.

Western

Odium

Mining

ference, Denver, Col., Feb. 5, 1955.

beCon-

that

fueled with uranium will

year

ig75>

scale

on a

cumulative

that,

so

by

the

plants having at least
.

,

Continued

Afy

OTl page

46

Volume 181

Number 5404

...

The Commercial and Financial Chronicle

,

(815)

\ >■
t
»

t •

'■it

...AND A WAY OF LIFE
An

of

era

unprecedented high living standards has

developed during the last half century with the automobile
its

as

symbol,

mass

financing

other

its provider and installment

as

its moving force. Our American

as

credit system

production

has converted the automobile

consumer

and countless

products from glamorous luxuries into universally

owned necessities. Associates has done its share.
Thousands
of automobile dealers the nation
services

to

over

use

Associates

expand their sales. Thousands of buyers
utilize Associates time sales

financing

to

pay

In
car

Cash

Receivables:
Retail

Wholesale
Direct and

$460,027,358

motor

vehicle short

term

loans

personal installment loans

.

$434,574,458

38,290,322

..

38,289,138

.

.

38,227,746
35,043,194

$563,904,692

Less: Unearned discounts.
Reserve for losses

$552,455,935

possible

13,604,172
.$515,806,707

Other Assets

8,832,220

$600,051,382

4

consolidated

income

maintain

.

$508,083,034

Provision for Federal income

..

6,668,544

tax

Net income
Consolidated
stock after

can

way to

buy

balance

a

billion dollar

financing.

sheets

Dec. 31,1954

Notes

Payable, short

Dec. 31,1953

$262,574,200

$285,592,300

36,270,000

11,700,000

1,562,736

1,406,462

...

33,530,390

33,192,386

..........

25,689,566

25,970,185

107,735,000

109,455,000

41,500,000

35,000,000

term
one

Common Stock Dividends

year

payable Jan. 3,1955..

Accounts Payable, Accruals

and

Unearned Insurance Premiums

Reserves.

Long Term Notes.

.

.-

12,500,000

Common Stock.

Surplus

9,700,000

31,254,720

.......

31,254,720

47,434,770

38,165,301

$600,051,382

$581,436,354

statements

63,719,419

tax

people

as

during 1954 with

volume of automotive and related

Associates Investment

$91,014,968

.

production is the

$581,436,354

Discount, interest,premiums and other income.. $94,199,209
.

credit.

automobiles, prosperity will continue. Associates helped keep
the nation
prosperous

11,890,358

Dec. 31,1953

expenses

would have

consumer

Subordinated Long Term Notes

Dec. 31.1954

Net income before Federal income

mass

high living standards. So long

Preferred Stock

Year Ended

'

Operating

production. And

mass

never

to

possible by this type of financing in turn make

32,482,543;

34,493,813
.

Total receivables, net........

Condensed

44,610,537

27,297,874

.

•

,

automobile without the aid of

an

The sales made

Term Notes due within

vehicle installment receivables

Commercial and other receivables

,

$ 66,684,776

v

motor

ownership—-many of them families who

Dec. 31,1953

$' 75,412,455

Marketable Securities

and

half-million families

a

LIABILITIES

Dec. 31,1954

•

from income rather than savings.:

cars

1954, Associates helped nearly

possessed

Condensed consolidated

ASSETS

for their

62,360,906

$30,479,790

$28,654,062

14,800.000

$13,504,062

$4.85

Company

Corporation

15,150,000

$15,679,790

Associates Discount

$4.19

Emmco Insurance

.

SOUTH

Company

BEND, INDIANA

net

earnings per share of common
payment of preferred dividends




COPIES

OF

THE 1954 ANNUAL

REPORT ARE AVAILABLE

ON

REQUEST

15

16

The Commercial and Financial Chronicle..

(816)

non-banking

American and British

increase

the

credits without
total

Instalment

Financing

PAUL JEINZIC

By

credits

in

there

is

with

of

the

THE MARKET... AND YOU

the

busi¬

bank

increase

an

an

To

instalment

is financed

ness

its

deposits.

which

to

is

volume

increase in

an

volume of

extent

there

total

cred¬

By WALLACE STREETE

both

in

.Thursday, February 17, 1955

credits and deposits.

inflationary effects of instalment sell¬

Dr. Einzig discusses the

Hitherto

and points out, whereas in the U. S. 50% of instal¬

ing,

the sake

selling is financed by banks, British banking institutions
engaging directly in this business. Says

ment

stalment

bulk of instalment selling in England is financed

the

generally out
their liquid resources, and thus instalment selling in Britain
does not create bank deposits, which are inflationary.

of

LONDON,
been

lately

cussion
lantic

a

of the At¬

inflationary

the

about

—

sides

both

on

has
dis¬

There
great deal of

Eng.

ef¬
the

of

fects

into

it

pay

lending the

increasing

¥.vv w,..

self

duction

of'in¬
sell-

stalment

Every-

body is vague¬

ly

of

aware

the inflation¬

character

ary

the

trend,

few

but

peo¬

1 y zin g

in

way

which that ef¬
is

fect

pro¬

duced. In view

growing importance of. the

system,

the

of

and

troversial nature of

question in
There

detail.

some

two

are

expansion

an

highly con¬
the. subject, it

be of interest to go into the

may

which

in

instalment

sell¬

ing is liable to produce inflation¬
ary

of

(1) Through bringing

effects:

about

expansion in the volume

an

bank

and (2) through
direct expansion of the

money;

causing

a

demand

for

that,

reason

in

a

in¬

increases the de¬

an

expansion of pro¬

competitive bid¬
limited number of

the

for

workers available.

Let

disregard

concentrate

which

for the

us

this

compara¬

to

the

on

instalment

the

liable

cause

in

way

is

expansion

an.

system

in

the volume of bank money.
From

is

a

the

point of view there
considerable difference
system as it operates

United

Britain.

of

deposit which is withdrawn
an
individual
depositor re¬

in the banking system.
It
merely changes hands and possi¬
bly changes banks, but the with¬
drawal

of

The

States
for

reason

not reduce the

This

and

this

in

dif¬

50%

instal¬

of

selling

is financed by the
banks, in Britain the

commercial

commercial

banks

insignificant

have

—

with

exception—re¬

frained from engaging directly in
that type of business.
It is true
the
hire purchase finance com¬

get

a

overdraft

certain

facilities

and

merchants
from

amount

from

be

of

their

manufacturers

cannot

using

and

prevented

of

their

bank

financing

their

sales

some

credits

for

against

deferred

payments.

But,
generally speaking, the bulk of
the British instalment business is
financed

and

of

of

out

of

sources

the

companies.

the

the

firms

hire

liquid

re¬

themselves

purchase finance

The latter also attract

deposits from the public by pay¬
ing much higher deposit rates
than the banks.
Now it is

under

commercial

ing, credits granted by

bank¬

commer¬

cial banks tend to create
deposits.
is not so

is that if

grand total of bank

the

of

time

of

them
not

between

goods

and

the produc¬

for

payment

the ultimate buyer does

by

necessitate

credits.

It

additional

is

financed

bank

generally known
holders of deposits with

commercial banks choose to with¬
draw their money and lend it, the

transaction
volume of

does

not

affect

bank, deposits,

the

simply

because the borrowers either de¬

posit the proceeds of the loan with
their banks

or

else they spend it,

in which latter
case, the recipients




to

tends
of

non-banking credit is
on

the unchanged
credits, but only

the extent to which the length¬

to

ening

of

maturities

through

the

of demand for goods remains

ume

unchanged,

the

operation

the

of

British system of instalment sell¬

ing does not produce

inflation¬

an

Even

the

on

an

for

goods,

the

United

assumption of the
increase in demand

instalment
States

selling

does

is

because

proportion

business

credits

of

a

very

instalment

is financed by the
banks.
Instalment

from this point of view
to
other types of bank

are

They tend to

create

financing is

it

lends

is

for

longer

in

usual

other

periods
types

of

bank credits. While

credits

ordinary bank
deposits, when in

create

three months time the credits

repaid

these

celled. This

deposits

credits

are

volume

This

that

of

be

to

granted
not

old

If,

for

credits

is

which

however,

instalment

repaid

there

deposits,

in

no

credits

financing

three

months

cancellation

of

and
the
new
credits
by the bank create new

ing amount.
cide

to

Unless the banks de¬

curtail

their

credits

to

non-instalment

business, the
maturity
of
instalment

longer
credits

does

tend

to

increase

This
ume

volume
means an

of

of

bank

deposits.

increase in the vol¬

monetary

tends to be
To

in

Britain

than

in

States, because of the
higher degree of employment pre¬
vailing in the former country. On
the

other

hand

the

fact

that

the United States instalment

financed

is

ing

largely

its

effect

monetary

in

sell¬

by

com¬

to

make

mercial banks does tend

resources

and

inflationary.

summarize the above

ment, to the extent to which in¬
stalment business is financed with

the list had General Electric,
which announced

fected

in

the

it had per¬

Steels

and

Cement issues had the

stantial
to

news

sub¬

help of stock split
keep them in the

a

process

na¬

production

once

It

shaved.

solidated Mines, the diamond

monopoly,
ket

in London's
domestic

in

and

mar¬

counter

markets and a new high on
thoroughly respectable gains
General

for

❖

*

Steels weren't

-t-

particularly

outstanding although Repub¬
lic's stock split served to lift
of the doldrums

them out
bit.

an

acute

a

which

Steel,

Bethlehem

was

Electric.

infla¬

more

Penn-Dixie, General Portland

and Marquette Cement par¬
brought
ticularly.
upheavals in De Beers Con¬
if
if
if
•

than in Britain.
Under
equal degree of employment

disappointment

when it didn't

join the stock

Unruly Atomic Submarine

split circle at the last direc¬
Dynamics not only tors'
instalment selling would tend to
meeting, was among the
was
a
feature on its atomic
produce a
stronger inflationary
better-acting issues in the di¬
submarine work but put on
effect under the
American
sys¬
vision, the action of the stock
tem than under the British
proportion of increase in

same

sys¬

tem.
From this point of view the un¬
willingness of British commercial

banks

to

take

nancing is
is,

General

however,

The

instalment

up

advantage.

an

another

fi¬

There

side

banks

to

it.

participation

large-scale

of

in

instalment fi¬

makes it easier for the
American monetary authorities to
the

control

volume of instalment

by

of

power

of

means

the

conven¬

monetary

authori¬

ties to influence the volume of in¬

actions that

some

close

came

indicating rather clearly that
unruly. the traders hadn't
given up
The issue, which had gained
all hope of such action coming
14 points last week, extended
along sooner or later. In fact,
the rise by 17 more in a cou¬
the preoccupation over stock
ple of sessions this week be¬
splits was spell that the more
fore the reaction set in on
to

definitely

being

substantial and

hints

official

that

attention

would be attracted to the
cessive

alone

ex¬

gains. In one session
stock

the

ran

ahead

ate

comforts

dend

immedi¬

higher divi¬

payouts were all but lost

in the shuffle.
if

if

12 Vs

more

of

points, but by the clos¬

if

A

couple of the top-grade
ing gong had lost all of it ex¬
stalwarts of the stock market
cept the meager fraction.
American Telephone and
3§C
if
if
—

stalment

selling

by

conventional

devices of

effective.

General Motors—were on the

monetary policy is not

nearly

as

Chance

true, if the bank credits to

the

they

own

be

hire

purchase.

they

are,

to

available
To

draw

more

extent

some

in

position

a

liquid

are

As

was

an¬

of

defense

the

issues

vorite, to gentle easing

10% in value.

for

finance companies
position to maintain
their resources by raising
their
interest rates on deposits.

in

a

Admittedly

the

Britain

tween

difference

and

the

be¬

United

States in respect of the effective¬

of

ness

conventional

monetary

is only one of degree, but
degree is quite considerable.

control

the
It

means

extent

to

in

practice that to

which

the

the

providers of

-Y-

❖

the best when
■>

General
The

issue in the
atomic energy field was Babcock & Wilcox on hopes of
strong

able

are

a

new

t

drastic

ities

conventional

in order to achieve the

result

as

are

to

in

in

inflict

order

take
mea¬

same

the United States author¬
in a position to achieve

by less drastic
words,

a

to

In other

measures.

Britain

c-powered elec¬

value last week and added
bit
a

more

a

than that amount in

couple of trading sessions

this

it

is

necessary

trade

restrain

financing to the same
in the United States.

in

general

instalment

Motors

had

all the

appearances

ports from the underwriters
of the stock issue indicated
that the exercise of

rights was

proceeding satisfactorily.
if

if

if

week.
❖

Bath

*

DuPont, which is exercising

Iron

*

Works

was

the

rights for a million of the
4,380,000 shares being offered

destroyer representative since
by GM, was able to pursue an
is one of its principal
independent course apart
chores, but more of the
from GM and even, as a mat¬
strength was due to some of
its other diversified activities ter of fact, apart from the
that

than

higher degree of in¬
on

i

and

montary authorities have to
more

o m

tricity plant. It added 10% in

willing to
disregard the official policy, the

sures

from

neglect sets in.

of suffering from
some
pressure on the rights
in connection with its gigantic
participating in Con Edison's stock flotation, although re¬

non-banking instalment credit in
Britain

easy

that

purchase

they

than

resources

investments.

hire

less

financing

extensively

their

on

more

and

for

however,

realizable

policy,

empioy

to

resources

will

result

a

monetary

forced

are

their

of

cut as

are

official

Vought

side with conviction, al¬
though the damage wasn't
sprinted with the help drastic in either case. Ameri¬
of a full share of tips to where
can Telephone appeared to be
even
those best
acquainted
in the nether half of its fre¬
with
the
company
and its
quent
cycles from fair
prospects were somewhat
strength as investment atten¬
aghast, particularly since its tion turns to this market fa¬
daily gains ran as much as
other

It is

convenience
argu¬

interest

tionary

the

total
volume
of
bank
credits,
which again tends to increase the
total

heavier

the United

credits is equal

new

the

repaid.

granted

and

as

repaid, the
deposits1 remains un¬
always assuming
that

the volume of

then

by

inflationary trend is liable

before

are

sprinting

Cements

diamond

are

or

of

changed,

are

granted

ones

its

*

*

the

costs

are

new

*

For

stones

can¬

that when

means

when the old

are

tinued
the

early weeks of this year
rise to a new quarter-century before quieting down.
If
if
If.
high and confirm the recent
strength in the industrials.
Splitting Helps

powerful competition for

of

bank

a

to

tural

business firms

What actually happens if
takes up instalment

wonder star of 1954 and con¬

electrons

ing eventually from the expanded

de¬

posits.

are

the

financing

there

commercial

short

if

even

is satisfied

tional devices of monetary policy.
Under
the
British
system
the

This

to

demand

to

credit.

than

inflation¬

in

tend

inflationary expansion of

that

produce

because

Electronics which was a

and

expansion

nancing

absence of

large

It

cement.

Despite these momentary fea¬
tures, the general list did
little, waiting for the rails to

ers

production.

American

credit expansion.

ary

to

effects,

the

bank

net

a

The stock market had vari¬
Remington Rand was the
ety to respond to this week skyrocketing issue in the elec¬
ranging from diamonds to tronics field, taking over the
submarines, atoms to destroy¬ mantle from Consolidated

for man-made
limelight. Good earnings re¬
the increase in the output there diamonds, a dream of the al¬
ports helped the work along
is always a time lag between the chemists
through the cen¬ and multi-point gains in a
purchasing power created through turies.
The
process,
while
expanding production and the in¬
couple hours of trading were
still expensive, promised
creasing supply of goods result¬
common
to
such
issues as

The

of

instalment

on

instalment.

on

create

tends

ary

latter do

volume

do

merely divert demand

additional

an

deposits.

States during
expansion of in¬

an

sold

to

This

The

of

for

aggregate demand, calling for
net
expansion of production.

creation of non-bank credits.

superimposed

ai'fect

both in Britain

goods not sold

goods

the

volume

not

demand

selling does tend to

than

from

by

not create

years,

stalment

cir¬

deposits in addition to the exist¬

generally known that

modern

What

such

that the lengthening

means

similar

bankers,

in

deposits.

credits.

than

more

panies

deposits

cumstances—always provided that
the money is not hoarded—does

States

one

re¬

the volume
credit increases.

non-banking

The

ference is that while in the United

ment

banking system it is
our cake and keep

The volume of bank credit

cause an

this

very

between the

in

sound, un¬

may

mains unchanged and

tively simple aspect of the subject
and

it

operation of the instalment system

means

present

deposits.

has increased credit requirements.
On the assumption that the vol¬

that

so

those

on

bank

cause

goods, it tends to

a

duction

ding

the

as

to

in

there is

of

prices, especially
if
high degree of employ¬

for

rise

ment,

stands

far

so

stalment system

mand

It

goods.

recent

re¬

possible to eat
it.

tion

ways

oi'

the

volume

as

modern

der

by

the

of the

based

of

mains

trouble of

ana

n.uizig

purpose

necessitate

the

Paradoxical

the

r'aui

This

this fact in it¬

money,

not
of

credits

ple have taken

Dr.

those prevailing
and in the United

a

ii g.

of

does

does

total

as

banks.

for the

of

goods and that of total production.
practice, in circumstances such

a
large number of
choose
to
withdraw

deposits

operation of the in¬

system

volume

more

their

for

In

that if

means

depositors

volume

<

their

assumed

simplifying the argu¬

ment that the

have refrained from

have

we

of

its

prime ship work. It,

too, joined the issues able to
carve

extent than
a

spectacular gains out of

single day's work.

of chemicals

gen¬

erally. Allied Chemical

con¬

easy

tone

tinued

being

its
more

recent

pattern of

willing to recede

Volume 181

on

Number 5404;.. The Commercial and Financial Chronicle

general

easiness than to target aren't too clear but the tics than to business

surge ahead on
*

belief

strength.

*

from

it has been built up;

ditions.

the

vears

f.

picture

far

was

tion

market

has naid far

in

recent

Mt

'

T

psychology and poll- presented

as

]'

"

(Special to The Financial Chronicle)

Harry E. Jack and Bernar d.

LOS

ANGELES, Calif. — Herman Jaeobson is now with Samuel
B. Franklin & Company, 215 West
Seventh Street.

those of the author only.] shire Boulevard.

an

encouraging one un¬
less some of the
strength in
Northern Pacific occasionally
is attributed to

its

oil

lands

rather than to its carrier busi¬
Sun Oil

ness.

ahead for

was

able to

push

New horizons, nation-wide, through John Hancock payments

change and Hous¬
was a bit
conspicuous

ton Oil

a

\

'

.

;v

•

wider losses at times. The

on

standard

presented

issues, however,
pattern of hack¬

a

ing

and filling at its most
interpretation.
Sunray and Mid-Continent

averaging

more

than *1,000,000

charitable

Petroleum continued to back
away quietly
each reached

from the peaks
the optimism
prior to arrangements for a
merger of the two.
*

*

*

Despite the high level of
business generally there are
still a few companies around
not entirely in the clear and
market reflection of this

was a

working day

on

•

one

every
For thousands of American families and

individuals, life

smoothly and securely as a result of benefits
received through John Hancock payments. Nation-wide,
an
average of more than one million dollars in benefits
flows out from John Hancock every working day.
And
John Hancock's rugged, growing assets — over
four billion dollars
soundly invested to guarantee ful¬
fillment of its
pledges to over nine million policy owners
moves more

helping to build homes, industries, railroads, high¬
public utility services, hospitals and schools all
through the land.
Life insurance
more available now than ever
through,
John Hancock's great new program of lower costs — is
good for the individual, and it's good, too, for these
—

are

ways,

—

United States.

•

rather unusual block of

10,000 shares of Westinghouse
Air Brake

which

appeared

when directors found it feasi¬

STATEMENT

FINANCIAL

OF

1954

31,

DECEMBER

CONDITION,

ble to shave the dividend. The

stock,

far from joining the
casualty ranks in a rush,
mostly indicated only that the
recent runup in it had been
The

stalled.
of

one
a

nearly

half

daily

issue

had

.$2,768,473,117

Treasury bonds

been

Treasury bills

hundred and
post new highs
until the dour an¬
a

division

highly "tipped"

characteristic

sharp one-day
followed by an equal¬
sharp retreat, including

such diverse shares

Foster-Wheeler,

146,265,918

,

246,060,672

,

1,108,713,809

utility

or

on

real estate
.

Other

Farm

;

additional

854,221,292

693,856,453

.

73,948,574

Other

properties

Total

payable in 1955

.

.

16,017,000

.

.

3,852,240,255

31,594,454

Obligations.

253,119

.

.

90,128,557

obligations, including accrued

expenses

73,695,455

.

83,594,587

of Insurance Commissioners.

properties acquired
.

yet

Mandatory security valuation reserve
.
As required by the National Association

;;;;;;;;;

for investment

not

paid in advance of due date
$38,094,587 and reserve for ultimate
changes in policy valuation standards
$45,500,000.

office, Housing and

other

for claims

policy obligations

Accrtied taxes
Home

sum

30,282,218

Premiums

160,364,839

Real estate

an

60,430,924

reported.

75,212,161

.

payable to policy owners in 1955

.

.

.

.

.

*

*

on

technical

standpoint
were
mostly

neutral, while the rail aver¬

dawdled around its previ¬
ous
high posted on the first
trading session of this year.
Largely due to the play in
age

Edison

Consolidated

267,967,439

Residential and Business

and above the

indications

287,417,149

.

en¬

Policy benefits in process of payment
.
Including claims in process of settlement

192,755,278

Loans and liens

the

matured

terest.

Dividends

841,120,041

,

Guaranteed

Mortgage loans

Foreclosed

a

.

.

Common

border.

From

...

•

■

.

.

Preferred

Ex-

and

Dynam¬
ics also fits in this category
since it was given plenty of
attention in the tip slieets

*

Proceeds from death claims,

dowments and other payments, including
dividends left with the Company at in¬

and

Stocks

Cell-O. Even General

locally

,

....

those

as

Briggs & Stratton, Rheem,

both

Policy owners' and beneficiaries' funds

6,402,538

....

Miscellaneous

runups,

of

67,833,001

.

Industrial and

issues of this week had their

ly

ment

*

Public

Some of the

legal requirements which will, with
premiums and interest, assure pay¬
of all future policy benefits.

in

future

State and other civil

Railroad
%

accordance

amount

with

.

.

reserves
determined

The

$ 352,077,138

.

Dominion of Canada

nouncement.
*

.

$3,252,775,366

Statutory policy

United States of America

that

up

OBLIGATIONS

ASSETS
Bonds

on

Company's policies :

Cash in banks and offices

;

Premiums due and deferred

•

;

)

S

:

51,866,524

S

S

59,089,517

Contingency reserve for fluctuation in
security values

:

;

34,816,002

General

reserve

surplus

.

Total

Surplus

.$4,232,743,607
are

Total

Obligations and Surplus

valued in conformity with the laws of the several States and
Securities carried

at

$710,672 in the above

as

12,211,000

62,100,000
306,192,352

.

10,006,042

All securities

OWNERS

;

assets

its

POLICY

;

Total Assets

plans for atomic energy, the
utility average was able to
expand its breakthrough into
new
high postings for a cou¬
ple of dozen years, making it
the brightest spot in the

TO

for Group Insurance

Contingency

Interest and rents due and accrued
Other

SURPLUS

112,355,100

380,503,352
.

.$4,232,743,607

.

prescribed by the National Association of Insurance Commissioners.

statement are

deposited for

purposes

required by law.

DIRECTORS
Edward B. Hanify

Merrill Griswold

William M. Rand

John M. Hancock

Samuel Pinanski

Georges F. Doriot

Carl P. Dennett

Edward Dane

Ralph Lowell

Philip H. Theopold

Lloyd D. Brace

Albert M.
*

Byron K. Elliott

Guy W. Cox

averages.
*

Paul F. Clark

Daniel L. Marsh

Thomas D. Cabot

E.

Charles L.

*

Ayling

Creighton

Taylor Chewning

Lee P. Stack

Earl P. Stevenson

Joseph E. O'Connell

Majority opinion still is ex¬
tremely cautious, not at all
that

sure

an

correction isn't

intermediate

lurking

near¬

by. The fact that industrials
have

come

points

of

which

was

within half

the

a

420-25

dozen

mutual/life

level,

the immediate ob¬
■

jective of the upswing, has in¬
creased

the

caution

company

MASSACHUSETTS

I

'

,

(

around.

Apart from the neat, round
figures involved, the reasons
for selecting this zone as a




insurance

BOSTON,

A

COPY

OF

THE

COMPLETE

ANNUAL

REPORT

WILL

BE

17

With Samuel Franklin

,

„

(Special to The Financial Chronicle)

do not necessarily at anytime coincide Kahn have become affiliated with
with those of the Chronicle. They are California Investors, 3924 Wil-

t

i

Two With Calif. Investors

[The views expressed in this article

atten-

more

,

to

con-

'

1

.

Oils Lag
oil

in

*

And

The

(817)

SENT

ON

REQUEST

18

The Commercial and Financial Chronicle... Thursday, February 17, 1955

(818)

Continued

jrom

ductivity is particularly interest¬
The British unionists reached
the
paradoxical conclusions
(1)

11

page

ing.

American and Foreign

kind,

specialist team on
engineering was par¬

ticularly impressed by the interest

team stressed the
fact that American enterprises do
The

a

and

development here

high

described

team

in

"much more" than

by routine. If managers
frequently
suffer
from
ulcers, at least these ulcers have

What

re¬

the

are

of

consequences

system of industrial relations
which
I have selected
for dis¬
can

It would be tempting to

cussion?

willing to take are calculated
based on complete cost in¬

attempt to explain differences in
of

movements

the

and real wages between

accountant

tween the United States

into

only

project

a

after

be¬

of differences

1950, for

Between 1900 and

example, output per capita in the
United
States
rose
about three

settled, checks that the
the

are

or

and other

of industrial rela¬

system

tions.

invariably brought in at the time
of the first discussions, and, when

plans

the

in

times

expenditure does not exceed

rapidly

as

as

the

in

because

main

rely on management to
progressive." 12

they can

be sufficiently

The practice of

bargaining com¬
pany by company, in the view of
the British unionists, explains the

influence
of
American
productivity. The Brit¬

strong
unions
ish

on

unionists

"Unions

the

state

thus:

case

that some
will always, be ahead
recognize

companies

continually im¬

of others and will

their efficiency to increase

prove

profits. They (the unions) contend
that

if

they bargained on an in¬
dustry-wide
basis,
they
would
have to accept

the wage rates and

This would enable ef¬
ficient companies to make unrea¬
sonably high profits, remove part
of the pressure on them to con¬
tinue
to
improve
their
effi¬
companies.

.

.

bar¬

union-company

and
piece
between companies in
rates

wage

vary

Theoretically,

industries.

similar

striving toward
throughout its indus¬

union is always

similar rates

the

with

rates

[the

only

where

managements']

plans
affect workers'

they

interests."18
To

the

British

the

lack

for

unionists

trade

matter

arrangements
efficiency was a
surprise. The British

of

.

unionists
"A

formal

of

fact

therefore

found

we

surprising

unions'

was

lack

in¬

of

terest in formal

joint consultative
machinery, especially as many of
them seem well qualified to make
a contribution to plant efficiency
through
such
machinery.
The
truth

is

expect

that

or,

the

plant.

it

if
of

is

the

about
.

running 01
There is nothing
this attitude, even

.

restrictive

cooperative. The job

is

managing

left

to

manage¬

ment."17
Tne

British

added

the

unionists

trade

following

interesting

comment:

"The absence of joint consulta¬
tive

machinery does not mean
union-management relations

that

'distant.' In fact,
got the impression that rela¬
tions generally are better than in
many British factories."18
necessarily

are
we

Interest

of

of the

in the

workers

suc¬

is, of course,
the
practice
of

company

"stimulated

by

promoting

from

The

ranks.

tne

rather than

on

the

question cannot

production
of

is

bargaining.

strikes

ingly

and

poor

orate

figures than

conditions
and

in

One

would

of

rate

larly

the

the

is

concerns,

of top
becoming

success

avoiding

in

managers

overwhelmed

April, 1947 and April, 1954
9.8%.11 Comparisons of this

tween
was

by routine and de¬

sort, however, would be meaning¬

tail, and their success in reserv¬
ing a considerable part of their

less

time for planning innovations and

Changes in productivity and wages
are
the result of a multitude of

expansion.

I suspect that funda¬

mentally the scale and

misleading.

indeed,

and,

influences of which the system of

structure

relations

industrial

of management is an effect of the

only

is

one.

be

inclined

more

of the activities
that grew up in the early days of of the British system of industrial
the postwar period
the country. But there is an inter¬ relations of
action between cause and effect. was to impose on the country a
•conscious policy of wage restraint,
Today the
fact
that
managers
Furthermore,

interest of managers in expansion

have

provided themselves with

a

an

interest

in

sion.

or

the

shop

be

the situation

quite different.

servers

small

number

sitions

the

in

limited

.

.

to

with

the

managerial

of

most

and

American ob¬
po¬

impressed

are

.

seems

European

firms,

delegation of author¬

ity, the absence of staff, the ab¬
sorption of top managers in rou¬
tine

detail,

that

the

all

small

with
and

the

result

overworked

top managements have little time
or

other

and

expansion.
to

this

hand,

the lavish

devote

to

energy

tions

observers

are

use

to

innova¬

European

country, on the
impressed with

of staff to help line

management, and the considerable
amount

time

of

and

effort

de¬

voted to planning change and de¬

velopment.
ever,

to

It is of interest, how¬
note that the great use

of staff to assist line management
in the United States has been a

development of the last 50
There

were

almost

tions in American
1900.

Even

large

no

staff

years.

posi¬

industry before
banks

did

not

8 Anglo-American
Council on Produc¬
tivity, Productivity Report on Industrial
Engineering, p. 2.
9 Ibid., pp.
17, 19, 20, 22.

10

Ibid^

p.

22.




and

ambitions

the

limited

have

nomic

of

effect-of

the

considerations

policies.

wage

Lewis

Mr.

upon

eco¬

union

posi¬

to

rise

from

senior

to

ments

The

team

"recognize

also

was

and

ambitious attitude

im¬

encourage

although

one

the

of Amer¬
bargaining prac¬

collective

cannot isolate
of the

effects

might reasonably ex¬
pect to follow from the systems

"Local

quences one

of

relations.

industrial

It is par¬

ticularly illuminating to note what

negotiation oLwages and

conditions

adds

the

to

interest

taken by

employees in the activi¬
ties of their own company, since

attribute

their

to conditions in the United States

in

wage

results foreign observers

they

which

pick

out

as

being

quite different from conditions in
their

own

Two

important

ascribed
the

by

foreign

distinctive

American

effects

are

observers to
of

characteristics

industrial

relations-

greater pressure on management
to
increase
the productivity of
labor and greater interest by the

employees of each enterprise in
the prosperity of the concern.
The

analysis by the British trade
impact of Ameri¬

unionists of the
can

trade

industrial relations upon pro¬

earnings in the
United States is based upon the weighted
average
of hourly earnings in manufac¬
turing, bituminous coal mining, building
construction, class I railroads, the tele¬
phone industry, wholesale trade, retail,
trade, laundries, and agriculture, weight¬
ed by employment in April, 1954.
The average hourly earnings in Great
Britain are derived from the Ministry of
rise

Labor Gazette,

in

success

negotiation is closely related
to the success of the company."14
The British industrial engineers
can

unions accept

hourly

September, 1954,

p.

3rl.

the view "that

higher benefits for their members
can only be .obtained if they sup¬
port
management
in
measures
which will increase the efficiency
of

production and strengthen the
position of the company."15
The British industrial

noted,
the

however,

United

unions

tion

the

States

of

engineers

absence
formal

in
ar¬

participation by
in promoting efficiency:

rangements
"We

11 The

union's

also added, the belief that Ameri¬

countries.

worker."29

the part

for

found

that

committees

Britain

are

not

as

joint

ship
in

of

workers

United

"often

ference

produc¬

in

If

Trade
13

Unions

Ibid.,

p.

and

Productivity,

Congress,
p.

10-11.

53.

14

Anglo-American Productivity Coun¬
cil, Productivity Report on Industrial En¬
gineering, p. 73.
15

Ibid.,

p.

47.

to

part

unions

the

industries1

is

the

"the

dif¬

lack

American

of

indus-

life."21

benefits

count

for

their

gaining

on

members

the

of

success

would

from

company,

one

expect them to be aggres¬

sive in their demands. The British

the

.unions

engineering
that

are

The

in

pushing

British

that British

States

de¬

stated

team

working in

managers

United

was

American

aggressive than

more

unions

mands.

the

team

opinion

British

"argued

that

the main difference between Brit¬

and

ish

American

Foreign

unions

observers

commented

is

the

have

large

amount

of

not

industrial

how

on

lations have been affected

re¬

by the

attention

given

by top managements in the United
States to plans for innovation and

•expansion. Sometimes innovations
have

conflict

created

of

'groups
ments.
have

workers

These

effects

expansion

however,
funda¬

innovation

of

have

The

been

dustrial

relations.

tunities

have .been

to

manage¬

conflicts,

importance.

mental

men

between

and

the whole been of super¬

on

ficial

and

better

On

the

Many

oppor¬

created

for

into better jobs. The

move

the

in

fact

that

skilled

less

extent

pro¬

workers

coming

larger proportion of the

a

been

labor force. The attention of

agements

innovation

to

be¬

man¬

has been

fundamentally responsible for the
rapid growth in output per manhour.

The

in

increase

outnut

ner

manhour has meant

(1) there has

been

bargain

quite

and

"(2)

not

been

16

Ibid.,

bit to

a

that managements

p.

17 Bri:ish

disposed

to

resist

over

have
too

45.
Trades

Union

Congress,

Production, p. 57.
Ibid., p. 57.
19 Anglo-American Council on Produc¬
tivity, Productivity Report on Industrial
18

Engineering,
20
„

Ibid.,

21 Ibid.,
Ibid.,

22

p.

p.
p.

p.

6.

But

the

principal

would

one

under

expect

under

rate

page

reason why
higher stop¬
the American

a

bargaining than under

British

Swedish

or

shutting down

that

is

the
a locality is not par¬
ticularly serious to the economy
as
a
whole,
whereas
shutting
down an industry or a group of
a

company

or

companies in

industries

be

may

too serious

to

be tolerated. Deadlocks

frequently
occur in industry-wide bargaining
in Britain, but, if the industry is
an important one, the result is hot
usually a stoppage but govern¬
ment intervention, a court of in¬
quiry, further bargaining on the
basis

of

tions,

the

court's

recommenda¬

usually

and

further

con¬

cessions.25
The

of the last year in
illuminating on this
point, particularly the experience
in the engineering industry and
the railroad industry. Incidentally,
an
important change seems to be
occurring in the operation of the
British arrangements for handling
major disputes and the British are
confronted with the question of
how
seriously the operation of
boards of inquiry will be under¬
mined by the growing disposition
of the unions to reject the awards
record

Britain

the

of

is

23

boards.28

Although

reduces

the

ployers,

resistance

petitor

industry-wide
of

cost

it

greatly
because

from

bargaining

concessions

reduces
it

taking

the

prevents

away

by

the

em¬

cost

one

of

com¬

customers

other firms.
24 When

—when

the risk of conflict greatest

is

the

negotiated

pattern

or

settlement

is

being

when the union is attempt¬

ing to spread it to high-cost plants which
cannot afford to pay it?
I think that the
recent history of strikes in the steel and
automobile
pages

industries
most

are

terms

of

would

'ike

this

the

shows

likely

to

that

arise

stop¬

over

the

settlement, but I
statistical study of

pattern

to

see

a

point.

25 In spite of the prevalence of indus¬
try-wide bargaining in Britain and Swed¬
en,
the average number of workers per

strike

or

lockout

in

those

countries

is

usually less than in the United States—
for the period 1927 to 1953 inclusive it
was
239 in Sweden, 448 in Britain, and
507 in the United States. Of course, these
figures simply reflect the fact that in¬
dustry-wide strikes rarely occur in Brit¬
ain

or

Sweden.

26 One

is

reminded

in

the

of

46.

occurred

46.

labor act in this country

72.

locali¬

by

hand, unions

the likelihood of conflict.24

crease

of

and

fessional

have

even

in¬

growth of opportunity is reflected

understood in

Union

union

bargaining is

bargaining and to
locality bar¬
gaining are likely to make stiff
demands because they will not
be held back by those of their
members who work for high-cost
employers. The stiff demands in¬
a

management

attributed

barriers in

trial

popular. The at-

Trades

team

significantly different from
team

class

to

States

Trade Unions and

12 British

This

thought that the general relation¬

A second consequence

ican

measure

the

of

on

aggressive American attitude."22

*

•

be

under company

managerial

Britain

floor

industrial

tices, particularly company-union
agreements, is to .stimulate the in¬
systems of industrial relations, terest of employees in the pros¬
one's common sense tells one that perity of the company. On this
there must be effects. Hence, one point the British
industrial, en¬
is justified in asking what conse¬ gineering team said:
But

expan¬
.

In Europe

during the

Korean War.

kept themselves free to think and
to engage in long-range planning
undoubtedly helps to sustain and
their

policy not found in the United

States, except briefly

abundance of personnel and have

increase

one

resist

to

other

of

the special position of
the captive mines has enabled the
union to whipsaw the employers,

of

the industry-wide
bargaining of Britain or Sweden.
I grant that under industry-wide
bargaining employers will usually

by companies

be

however,

kind

one

ties.23

bituminous coal industry seems to

exception to the above gen¬
eralization. As a matter of .fact,

the

expect

with

compared

level.

an

strikes

by

employers, but
they are correct that unions begin
negotiations with
the company
that is most likely to yield and
that this practice raises the pres¬
sure on managements to improve
technology. Experience under in¬
dustry-wide
bargaining
in
the

rapidly as in
Great Britain where the rise be¬

various

stoppages than would

produced

make

as

of

com¬

far in

finds in the
United States to produce a higher

They increased about 18.5% here
between 1947 and April, 1954, or
twice

now

very

producing

bargaining that

about

ulmost

little

of

lockouts.

projects.

management, particu¬
management of large

are

piled, one cannot get
isolating
the
effect

the risks of starting new

American

on

shock¬

are

admit

opportunities

pressed by the fact that manage¬

with

figures

classification. Until Congress pro¬
vides funds for much more elab¬

demands than when

tions."19

settlements

-Our

lockouts

and

the

different

be¬

interruptions to
affected by many

industrial engineering team men¬
tioned
"the
undoubted
greater

wage

similarly situated

company

be given

conditions other than the methods

system of

thing

or

the scale of

cause

.The

unique

local

a

basis? A truly scientific answer to

•that found in factories in Britain."

most

of

more

interruption to production

the United States than in Britain.

The

to

systems where bargaining is
usually on an industry-wide basis

opinion that the de¬
velopment of the planning of new
projects in the United States sub¬
stantially affected the willingness
of American enterprises to take

team

the

of

was

British

The

system

lead

than

.

in

not

not

do

suspect, want to be

we

consulted

unions

most

less

or

American

relations

industrial

an

set."19

innovations

VI

the

Meanwhile,
the
efficient com¬
ain—though from 1948 to 1954
panies have again increased their
the increase in output per capita
output per manhour and profita¬
in Great Britain has been sligntly
bility, and the unions then start
greater than in the United States. the rounds again."18
Real hourly earnings in the United
The British exaggerate the will¬
States have been rising faster in
ingness of American unions to

limits

to

gaining work more or less satis¬
factorily to both sides, but par¬
ticularly to the employees.

Does

that

to

managements

increased the importance of
collective bargaining and has
tended
to
make collective
bar¬
has

said:

profitable

in Great Brit¬

of

even

promoting

lift

-

to

others

in

rates

most

tries

it

company

good

secured

that having

in

try

their

.

"Under

a

trade unions. Hence, the attention

cess

ciency.

rates

Britain

terms

in

countries

has

it

begun, in the U. S. he is almost

Great

and

States

often is brought

Britain

productivity
gaining
the United

formation, which is analyzed be¬
fore any project is started. Where¬
as in the United Kingdom the cost
very

t^ade unionists

productivity than

working conditions obtainable in
the
worst, or at most, average

characteristics of the Ameri¬

the

planning to estimate risks.9

"the risks American business men
are

tr.e

expansion.

and to plan

In the words of the British team,

and

acquired as

largely

been

sult of efforts to make innovations

as

Kingdom, and "emphasis of cost¬
ing as a tool of management" and
the use of cost analyses in ad¬
vance

sub¬

quite

United

the

becoming

not

merged

of prep¬

managements "at all levels" which
British

in

whole

the

aratory planning, "the aggressive
cost
consciousness" of American
the

high. But the Amer¬
managers have succeeded on

ican

management which impressed the
British team were the relatively

and members,

officials

spite of their engineering de¬
partments and activities, less con¬
cerned about the need to increase
in

strongly

problems should be settled by
mangement alone and that the
unions' function is to investigate

"We

union

can

and worry is

American

of

features

excessive

and

The incidence of ulcers
and other symptoms of overwork
worry.

market" for manufactures.8
Other

overwork

against

fact creating

in

class have not suc¬
protecting themselves

in

ceeded

merely attempt "to fill a mar¬
ket" but that they were engaged

"finding

man¬

managers as a

not

in

American

top

public or private, in any other
part of the world the importance
of having time to think and. to
make long-range plans, American

of American managements in ex¬

pansion.

productivity is con¬
found," said the
British union team, "most Ameri¬

agements as a group have realized
far
better
than
administrators,

British

The

in

siderable.

in

Although

great as to amount to
differences in kind.
are so

industrial

increase

ago.

in de¬

the differences

but

gree

production is weak but

that their influence upon the

(2)

credit departments 50 years

have

in

American

of

interest

unions in

Industrial Relations
degree rather than differences

the

that

stiff demands from

titude of unions is that managerial

about

1941.

the change that
of the railway
before and after

operation

f'
Volume 181

Number 5404

•,

•

The Commercial and Financial Chronicle

...

(819)
Whatever

be

may

the result

is what

pect—the

rate

flict

in

the

the

United

Sweden.

able

Of the

con¬

Britain

various

the

of

measures

ex¬

con¬

States is

siderably greater than in
or

My belief is that the principal

reasons,

would

one

industrial

of

avail¬

rate

of

explanation
strike

rate

of

the

low

Canadian

that most Canadian

is

unions and employers are content
to follow employers in the United
States

in

making

changes.

wage

in¬

In
other words, the
low strike
conflict, I think that by rate in Canada reflects the fact
far the most meaningful is work-'
that Canada is a pattern follower
ing days lost as a multiple of rather than a
pattern maker, and
union membership. This measure
it brings out one of the advan¬

dustrial

allows

for

the

fact

that

strikes

among
unorganized workers are
few and short. Hence, the measure

is

fairly satisfactory indication
of the propensity of union mem-,
a

bers
of

to

strike

and

collective

ducing

of

the

bargaining

in

pro¬

Ross

agreements.27

Irwin's

success

and

interesting comparison of

strike experience in five countries
found that the time lost per union
member during the period 19271947

far greater in the United

was

States

than

Sweden

in

either

Britain

or

3.2

working days per
member per year in the United
States, 2.2 days in Sweden and
0.5 days in Britain.23 I have had
the

—

Ross-Irwin

table

extended

through
1952.
For
the
entire
period 1927 to 1952 inclusive the
working

days lost as a multiple
membership were 3.1 in
the United States, 1.8 in Sweden

of union

and 0.4 in Britain.
I

do

that the

suggest
local

of

contrast

with

industry-wide bargaining in Brit¬
or Sweden
solely explains the
in

time

from

lost

union

per

stoppages.

Other

important differences, such as the
strong rivalry between unions inthe

by

in strikes

the

and Sweden have

under

unions

to

raise

much

it

gives unions

the

objectives.

United

more

The

States

concerned

are

with

raising

frequently

all with

concerned

the

general

level

For the period

great advantages under

strikes

as

tions.

percent¬

a

union

membership were
18.3 in the United
States, 11.7 in
Canada, 5.9 in Britain, and 2.9 in
Swecen. 31

All of this

ficiency,

in

than

one-fourth

or

under

ing. 33

industry-wide

There

long as

ers

can

the

under

United

States,

■■'■r

the

vigorous

Let

ST.

that

time v." lost

from

strikes

and

to

in

have':

Sweden :or

regarded

as

Britain

might

reflection

a

be

of

industrial

and

conditions

Britain

and

ing

exceptionally

existed

in

of legal
(such
as

strikes

on

Britain

from

1940

to

an

with

which

Sweden

world

and

Britain, all help

ac¬

positions

differences in the
time-lost rates between the United

States, Sweden,

trade

the

Britain.20

and

> The
case
of
Canada deserves
brief comment.
Although the sys¬

tem

of

bargaining

virtually
United

the

in

Canada

same

.

States

in

as

and

is
the

-

although

the

Canadian system of industrial
lations in most respects is

re¬

quite

similar

to

that

of

the

United

States, working days lost from
stoppages per' union member in
Canada for the period 1927 to 1952

only about one-third that of

was

the

United

ably

States

below

and

that

of

consider¬

Sweden.

It

slightly
more
than
three
times as high as the extraordi¬
narily low British rate.30 How is
was

the very low Canadian rate to be

of

of

their

the

economies

of

markets,

made

for

rate

district
have

national

or

broad

'

du,stry-wide
does

of

unions

of

stoppages
importance. The

considerable
in

both

Britain

Sweden have

developed
accept central

to

ness

which

enables

cooperating

them

with

governments

ations

national

that

the

unions

British

have

also unions in other

Just

(and

cluding Denmark and the Nether¬
lands)

of

in

be

of

out

the United States.

question

tions here lack the influence
national

unions

u n

The federa¬

possessed

the

national

doubt
rates

the

the

on

in

view

Britain

result

of

cast

that

and

the

low
are

prevalence

of

31 For
used

32
'

27 It would

be desirable lo

Working days lost
in stoppages
28 A.

only the

use

union members

among

called by unions.

M.

Ross

and

Donald

Irwin,
Countries,
1927T1947 — An Interpretation," Indus¬
trial and Labor Relations
Review, Apr-il,
"Strike

Experience

Five

in

1951, Vol. 4,-p. 332. The figure Ross and
Irwin give for the United States is
3.0
days per member-per year, but-they use

Working days lost

workers

involved

1927

1952

to

as

strikes

in

inclusive

so-called

sanction

in

the
18.4

were

period
in

the

by

a

"unofficial"

;

strikes—not

time

ference

prevents
between

unsatisfactory
figures for. membership.
They accept the estimates of the Bureau

States.

of

member

in

1927

to

Steel)

cover

plants than

or

system

has

the

of

the

Labor

Statistics

which/

1947

are

for

based

1945,

1946, and
badly inflated

on

estimates

of
the CIO membership
and
they fail to subtract the Canadian mem¬
bership of unions with headquarters in

the United
made

for

3.2

out

States.

these

instead

When

corrections

.the

errors,

figure

are

comes

of 3.0.

The Ross-Irwin article'also contains aq
error in the Swedish figure* whi^h
seems
i

be

to

the

This

due

year

lo

a

1928

error

misprint.
should

seems

computations.

be

and

figure for

10J,

have

to

Ross

The

not

0.3.

affected

the

Irwin

get

1.7

working days lost per union member for
the period 1927-1947. The figure should

British

industrial

American

than

unions

British

engineering
are

more

team

that

aggressive

ones.

Australia

has

lost

l

per

union

been low—from l

been

well

below

in Australia)

Canada

movement

year

but, of

by

supplementary
recent

seems" to

years

a

impeding
in

But

workers

involved

period
16.7,

in

strikes

as

ing

the

days

member in

period 1927 to 1952
lost in stoppages per
Canada

were

13.




work¬

size
for

the

to

1947,

was

show

a

there

not

or

is

Dividends

.

been

opinion

in

recent

1954.

have

years

moderately conservative. The

present rate is $0.20 quarterly plus

aluminum

ex-

vear-end extra

Recentlv

there

indications that payout polmay run around 50% to 60%

jCy

soon.

appended
tabulation,
sales totaled $116.5
million.

ings results.
One

.

the

conjecture

may

company

may

how

to

as

handle

an

ex-

After

for

In view of the fact that

military

cable

industry

showed

a

culated

that

drop

of

generally
5%, it is cal-

General

Cable

gained about 10%

year

on

last

the in-

finance
0f

such

temporary

retired

as

earnings.
also

appear

to

securities

mon

shares.

indicates

to

the

strength in the

about the

whereas

most

same

companies

1953,

as

in

the

industry showed declines in net.
"•

For 1955 sale? of General Cable

relations

are

to

estimated

rise

some

20%

25%, with government business

down
total.

without

to

to

perhaps only 5%

Should

such

a

of the

result

be

to

eliminate
the

com-

persistent repurchase of

Indeed, this is borne out

1954,- esti-

be

would

After all, the record

earnings

for

to

it

management's

senior

by

the

be

ultimately

dustry.

national

means

possible out of

as

Meanwhile,

intention
all

expansion by
bank loans,

soon

first

preferred,

further

and

common

may

well

ke accompanied by conversion of
the second preferred. I can, there-

fore, ultimately visualize a company with a one stock capitalization, much higher per share earnings, and a larger dividend. Based
upon these prospects, I therefore
believe that the common shares,

listed on the New York Stock Exchange, should command a sub-

stantially

higher

price

recent level of around

1927 to 1952,
for the period

than

the

19.

Net per

Net Income;

Sales

But

Com. Sh.

Dividend

1954

t$100,000,000

f$5,150,000

t$2.30

*$1.10

1953

116,520,000

5,090,000

2.29

*1.00

1952

116,350,000

5,280,000

2.38

1.00

1951

115,940,000

.5,500,000

2.48

1.00

1950

80,720,000

3,350,000

1.36

.

-

'

union

con-

a

share results would
sizable improvement over
per

sheathing cable

15.0,

24.2.

)

very

the $2.29 figure of 1953 and

com-

1953

company's

and

to

problems rather than the expres¬
and for the period sion of
a plan which might faiththe high propen¬
fully reflect certain principles but
sity to strike in Australia is coupled with
very
short strikes.
Australian
strikes -which, because of that very
fact,
are
about as short as the British, and
might not very well fit conditions.
seem
to be getting shorter.
For the pe¬
Our system of industrial relations
riod
1927-1947, the average Austra'ian
striker
lost
8.8
working days; for the
33 The conditions which make bitumi¬
period 1948-1952, 3.9 days. The extreme¬
nous
coal
mining an exception
ly short strikes in Australia keep down
to
the
above generalization should be kept in
the time lost rate in spite of the high
vmind.
propensity to strike.
percentage

1948-1952,

version,

activities
The

a

whether

•

new

lows that civilian business gained
about $8 million.
Since the wire

By and large, however, I think

veloped

and

the

In

mated at

industrial

Research,

business
declined about $24 million it fol-

course,

,

30 For

large
press

business.

pension plan.

of

stands

a

license.

equal to $5.1

the

much-needed
the

dis-

panded volume of operations such
preferred dividend.. as is envisaged a few
years hence,
requirements this was equal to a jn the first
place, present facilities
profit of $2.29 per common share, can
satisfactorily produce some
Sales for
1954 are
estimated to
additional volume.
Beyond that,
have declined to about $100 milnew
facilities will definitely be
lion.
This was due to both lower
Required. It would appear to be
selling prices and smaller military present management's
policy to

badly overdone and is

improvements

resumed.

order and expected

on

was

plans
me

additional

million and net income after taxes

racketeers.

pension

2

being planned.
dollar
earnings
Perhaps that is why it represents accomplished,
percentage of union membership in Aus¬
would
tralia are high—almost as high as in the
probably rise about the
a
pretty good adaptation to con¬
United
States
and
well
above
same
Canada, ditions—it
percentage.
From a profit
is simply the sum to¬
and, of course, far above Sweden or Brit¬
point of
view,
therefore, 1955
tal
of
various
efforts
to
ain.
For the entire
solve
rate.

Christopher
Building.

were

new

During

is

system

(0.9

C.

Grain Exchange

Co.

a

from

far
-that, in its basic characteristics,
above
the
very
low
postwar
rates
of
conditions
here
Sweden.
On the whole, arbitration ma¬ I fits
reasonably
chinery of Australia seems to do a pretty -well.
The system has been de¬
good job of producing a low time-lost
per

1927

29 A. M. Ross and Donald Irwin, Ibid.,
p. 338.
Incidentally, Ross and Irwin ex¬
press the belief that "unions are less ag¬
gressive where bargaining on a multi-em¬
ployer basis," thus agreeing with
the
,

days

Sullivan have become

with B.

0f earnings.
On this basis it is
anticipated that the quarterly rate
The company's earnings record -may be
upped to $0.25 before long
over the past few years has been
—again to be supplemented by a
most satisfactory as can be seen
year-end extra in line with earn-

local

becomes

of

is promoting

trusion

degree

permitted

slightly less than in Can¬ I that the United States
should con¬
ada but considerably less than in Sweden.
The figure has changed little, and since sider itself lucky.
It possesses a

the

be 2.2.

Working

an(j j0hn j
connected

mineral insulated cable to which it has the

is

United

sometimes

n^s

'probably

dif¬ ')

OMAHA, Neb.—Stanley Searles

j

&

page

development

A

are

considerable

The

have been

Australia, and the United

her

H.

ticularly interesting potentialities.

Motors

1947,

1948

discussing

my

of

Street.

Two Join Christ

of the writer this item offers par-

used for dealing
with
which, in my judgment at
least, might be more appropri¬
ately handled by legislation. For
example, the great development
in

union.

The fifth country included by Ross and
Irwin in their article was Australia. Lack
of

General

States

from

improvement,

exclusive
.

This problem is serious in several
cities at the present time.
Fur¬

ment

"

.

Security I Like Best

been

pany

;

United

the United States that this instru¬

United
States, 11.9 in Canada, 46.7 in
Sweden, and 6.9 in Britain. In recent
years virtually all strikes in Britain have

been

of

the

matters

multiple of

a

—

.

product

the
period
1927-1947
I have
thermore, conditions are so favorfigures in Ross and Irwin's ex¬ -able for collective
bargaining in

the

cellent article making appropriate correc¬
tions
in
their
figures x>n.«trade union

membership in the United States.

industry-wide bargaining?

o

labor

here

serious

the

Sweden

receive

has

of abuse and opens the op¬
:
providing
portunity, for the invasion of the

the

by

unions

+

,

have been accelerated.

mat¬

source

over

federations in Britain and Sweden,
and

all

perhaps
in

autonomy
i

Christopher Adds

McCOOK, NEB.
Merlin L.
Smith has been added to the staff
of B- c- Christopher & Co., 420V2

Christopher & Co. of Kansas

products

industry in Sweden.
industry-wide bargain¬

as

States.

would

with

:

any

relations

countries, in¬

C.

(Special to The Financial Chronicle)

'

ing carriers with it certain prob¬
lems, so also does the industrial

and

done

•

Some single-enter-

workers

more

found in

extent

it

.

the

p.m.

good chance of betributors. The sales force has been' ing the best year in the
company's
enlarged and strengthened by ad--history.
Per share earnings estidition of trained men in the field, mates are not so
easily calculated,
Manufacture of a number of prodhowever, since the second prefucts discontinued due to military ferred
issue may be converted,
requirements or other restrictions either all or in part. In any event,

.

(those

Qualifying
bargaining by consider¬

Swedish

but

effective

as

under

deal

should

United

or

the entire community.

to

be

local

or

bargains

States

to

•

explained? Does it not

that

collective

interest

to

negotiated

easily

prise

far in

go

«■ v

appointment

of agreements which

consideration.

direction

to

;

B.

Robert

—

u

The

toi

singlebargaining.
Even
in
single-enterprise
bargaining the bargaining unit may
be so large that the negotiators
ters

willing¬

a

be

cannot

and

safeguard the economic interest of

of

u

boards

authority

agreements,

seem

kind

enterprise

in

have

course,

avoidance

not

the

can

the

(Special to The Financial Chronicle)

Neb.

Continued

-

-as

sense.

Christopher

City.

a

attempted
problem, as I
indicated,
by

this

previously

joint

maintain¬

low

Street, 10th
York, N. Y., at 5:30

consider¬

at

Bank, 30
floor,
New

many"
ought to be consid-.

that

deal

our

lost from industrial disputes
recent years.
The competitive

1952), the longer use of an official
of wage restraint in

count

in

invited to the meet¬

are

Broad

-+u
Towne has become affiliated with

relations

time
in

policy

Sweden

op¬

Slayton & Company, Inc.,

LINCOLN,

Swedish5

restraints

Martin's

which will be held
Chemical Corn Exchange

ffinpniftl t.rv The ftnanr.tat. flHrRnMTPi.f^
(Special to The Financial Chronicle)

decide cases by rule of reason.
efforts of American unions to ex-J
should not be judged solely by -There is much to be said for this
tend
their
membership in con-~ their success in
maintaining peace. method of protecting the interests
trast with the more passive
poli¬
One must admire the success of of individual workers under incies
of
British
and

unions, the absence here

with

Mr.

The British have

But"

on

system of industrial relations.
systems

ered.

pursued

17.

ing,

modest

LOUIS, Mo.—Carl E. Brooks

^

matters

policies

Joins B. C.

B. C.

lockouts per union member in the
United States is far higher than

have

Feb.

on

Guests

Main

to

the bargainers can discuss
only
small
proportion
of
the

few words of appraisal. The fact

a

we

taking

Development,

of Nations."

my

we

408 Olive Street.

bargain applies to a whole in¬
dustry comprising many plants,

close these remarks with

me

in

of

for

topic will be "The World Bank—
The Role It Plays in The
Econo¬

justi¬

that

flexibility and good

that ought to be considered. When

vn

also

that

is with

bargain¬

attention

proper

issues

many

program

great advantages

are

give

of

Joins Slayton Co.

having the bargaining unit
small enough so that the
bargain¬

but they are longer
on the average than the
extremely
short strikes in Britain. 32 1

seem

have

the speaker for the next
session
the current year's educational

as

(Special to The Financial Chkonicle)

also in

Sweden,

we

grateful

Women's

will

Martin,
director
International Bank

Reconstruction and

op¬

advan¬

when

are

Hence,

Bond

York

L.

markets,

whipsaw employers,

being

portunist
able

enterprise

-

country

wonderful

a

New

else¬

bargaining
local bargaining, but less

even

so

as

as

work

great

are

pride

pretend that

would

they

as

individual

long
in the United
States, only little

more

would

one

in

perhaps

have

condi¬

our

to

big price.
fied

tages in having employers under
strong pressure to increase ef¬

that,
are quite
frequent, they are also quite short
—as
one would
expect in a pat¬
tern-following
country.
They
as

No

States

other

any

Municipal
of

George

have been favored
by fortune and

bargaining that

United

where.- There

means

only slightly half

the

methods

our

though strikes in Canada

average

in

The

Club

the

which they seem
willing to pay a

of

The methods of

N.Y. Mun. Bond Women

gives employers a freedom to
bargain which they like and for

at

exist

Seo. Martin to Address

of

productivity, and, though

it

here

not

either

of

portunity

than the unions in Britain

Sweden, and the unions

than

pressure

different

—well above Britain and Sweden.

of

greater

employers

in

protection

else, it pjuts American employers

employment or the competitive
position of the country.

age

better

in the several countries somewhat

membership (rather than by days
lost per union member), Canada
is only second to the United States

involved in

worker

day-to-day interests than is
received by the workers
anywhere

given the unions

are

1927-1952 workers

probably not work any¬
else, but it gives the Amer¬

' his

States, Britain,

and

involved

percentage of union

a

as

workers

ican

differences in the economic situa¬
tions of the United

wages

the propensity to

measures

pre-

ain

member

one

strike

single-firm

or

bargaining here in

difference

If

pattern follower.

a

of the country as a whole.
All of
this is a way of
saying that the

a

not

valance

tages of being

usually see no particular reason- would
being concerned with interests where

for

19

"Including

year-end

dividend

paid

in

January

of

following

year.

tEstimate.
,

20-

The Commercial and Financial Chronicle...

(820)

now

includes

can

Today's Stock Market Wholly

farmers

of

many

Unlike That of 1929

millions
and

whom

shunned

are

individuals

Comparison with earlier period not valid because "nation is
infinitely sounder and more realistic today than 25 years ago,"
Charles E. Merrill, Directing Partner, and Winthrop H. Smith,
Managing Partner, of Merrill Lynch, Pierce, Fenner & Beane
point out in annual report. Attribute nation's economic prog¬
ress to lower Federal taxes, less government in business and

(the

14
the
annual
of
Merrill Lynch, Pierce, Fenner &
Beane,
nationwide
investment
Feb.
1954

growing

invest

plants

billion

in

processes

new

one.

namic

results

world's

world's

the

services.

citi¬
half

our

consume

think

the

Economic Policy

will

do

not

the

resolve

woes

of

fears

peoples around the
are hopeful that
foreign nations will be more will¬
ing to join our team when they
globe.

have
of

But

we

benefits

the

used

and

seen

factories, machines, high¬

new

Merrill

E.

banking

and

Charles

E.

Winthrop H. Smith

brokerage
house,
Merrill,
Directing

Partner, and Winthrop H. Smith,
Managing Partner, expressed the
view

that

is

there

basis

no

comparison of today's stock

of

mar¬

ket with the situation which pre¬
vailed in 1929. Such comparisons
are
not valid, they declared,
"simply because our nation is
infinitely sounder and more real¬
istic today than 25 years ago."
By way of contrast, it was noted

that

whereas

in

1929

value

one-tenth of

and

at

in-business
to

and

create

businessmen

for

"The

pockets of

decade

a

value

the

eroded

rampant

threatened

our

economic

and

the

1.4%

of

total market value."

life

dollar

the

of

the

inflation

As

in "our entire history,"
adding that "We think it highly
important that this progress co¬

sys¬

tem.
*

.*

.

!

•,.»

1 '

•

i' *

1

H

'*

v

f

perous

taxes,

vorable

climate'

create

for

of

letter

a

the

past

Smith noted

as

nificant

visited

of

group

New

our

18

the
and

ters for two weeks.

sig¬

a

young

men

headquar¬

We call them

'significant' because their assign¬
is to help spread the
gospel
of American-type enterprise
throughout the Free World. Offi¬
ants'

of

are

the

'investment assist¬

Foreign

Administration
ment

asked

to

us

Operations

the

and

Govern¬

teach

them

a

few fundamentals of corporate fi¬

securities research and

nance,

un¬

derwriting procedure.
"The FOA

newly-conceived World Economic
Policy through which our coun¬

try

will

combat

Communism.
hower
trate

put
'we

are

gunfire and
"We

inroads

of

As President Eisen¬

it,

must

we

economic

on

cause

the

be¬

weapons

less

with

agree

concen¬

going to hear less

see

blood

this

flow.'

new

ap¬

proach to world problems because
we

have

wisely
are

far

always

believed

'capital dollars'
effective than

pump-priming dollars. In
Government
to

create

perity

a

essence

pump-primers
false

sense

merely by
pie into

economic

without

that

invested
more

of

seek
pros¬

dividing
more

necessarily

larger.

the

pieces

making

it

On the other hand,
pri¬
vate investors and
capitalists seek




of

1954

almost

ten

of

pressure

highest

the

were

highest

without

years

shooting

a

the

war

or

patriotic appeal.
"Individual enterprise has been
stimulated
fact that

illustrated

as

115,000

started

were

days

much

'urge

to

the

the

employees'

than $2 billion of in¬
capital for industry (the
exact figure is $2,015,000,000). In

These

against

but

all

of

1%

headed

we

or

and

ups

downs,

main

which
or

for optimism is the

has

amount

been

modernized

ment

in

the

total is $202
in

"As

the

vestment,

billion,

in

new

rities.

New Data

produc¬

better

more

tomers through higher and

that this

paid

for

important

vast

and

expansion

cus¬

higher

thing
was

is
not

with

taxpayer dollars
or Government
largess — it was
paid for by the reserves of in¬
dustry
lions

plus

of

the

savings of

American

mil¬

investors.

"We think it especially signifi¬
that the family of investors

cant

the land.

across

After estimated individual Fed¬
eral income taxes of

$13,400,000,

the
ners

107 general and limited
part¬
of the firm had left approxi¬

mately $4,861,000 last year com¬
pared with $2,079,000 in 1953. j
Managing Partner Winthrop
Smith pointed out the firm's final

the

net

sharing

profits

gross

represented

6.6% ;o£

revenues.

Reserve Board which indicate that total
amount of ail member
bank loans secured
by stocks and bonds is estimated at $7*/4
billion or 12% of all loans of all member
banks.

V

"The

firm

helped
through industrial underwritings went for an incredible
variety of things—an emergency
money

our

Securities Market Credit

on

raise

Senator J.
W.
Fulbright (D.,
Ark.), Chairman of the Senate
Banking and Currency Committee,
'hurricane
proof' high - tension which will soon start its
study of
line for a Southern utility, extra
the stock marcash for a guided missile maker,
ket, released
new

(whether

automatic

calculators

for

supermarket chain, added

ing capital for
tomatic

producer of

a

machinery,

a

and

buying

is

estimated

things 1 make

Market

America

Wall

Street, of

outstanding
dramatic
few

a

in

stocks

the

believe such comparisons are
valid simply because our nation

is

infinitely

sounder

and

more

realistic today than 25 years ago.
We do not dote on statistics but
feel

set of figures is per¬
tinent: in 1929 many stock buyers

were

one

10-or-20%

on

broker

margin

borrowings
ket

loans

60%

are

and

represented

and

total

1.4% of total

mar¬

or

are

more

value.

"As
to

write

this

annual

our

and

report, we re-read
statement
for
1940.

published by
"In the

14 years

number of

since 1940 the

offices has

our

total

fold

assets

and

almost

than

nothing
figure.

have

risen

from

an

our

proclaimed

Wall

firm

At

that

bureaucratic
also

said

-

the

roads would
—with

all

Street

and

purpose

die.

is

loans

time

those

minded

utilities

soon

had

a

loans

in

contained

line with

in

the

questionnaire.
made available

respondence

brokers

securities

"others."

and

The

and

on

dealers

The

indicated

purpose of purchasing or
carrying securities but secured by

the

totaled

total

Dear
In

$3.0

amount

stocks

and

letters

in

same

pessimists
and

next

full

text follow:

Mr.

Martin:

connection with its study of
stock
market, it would be

the

of

helpful to the Committee to have

all member bank loans apparently

by

indication

some

bonds

which

loans

of

by

the

banks

extent

to

Investment

MEMBER BANK LOANS ON SECURITIES

(Estimates based

spot survey made February 1-8, 1955)

on a

—Amounts in Millions—

Percentage

All Member

Sampled

Coverage of

Banks

Sampled Banks

Number
Total

of

6,660
$60,240

$36,812

banks

loans

Loans for

purchasing
ing securities:!

Totals
not

for

the

$2,881
1,364

$2,686

93.2

1,044

76.5

$4,245

sees.

others

Loans

4.1%
6i.i

or carry¬

To brokers & dealers in

To

271

$3,730

of

purpose

purchasing

or carrying securities, but secured by:

<

Stocks
Stocks

$742
and

bonds!

1,017

Combined

*$3,000

$1,759

the
of reported "nonpurpose"
loans§ secured by stocks, or
by stocks and bonds, to total

Plans

conference

with

held

distribution

in
of

annual

report, Winthrop H.
enthusiastically endorsed
Monthly
Investment
Plan

loans

Ratio

4.8%

of

all

Smith

(whether
pose

which

loans

apparently

secured by stocks and

the

was inaugurated
in Janu¬
1954.
The plan,
he
said,
"provides a systematic method of
investing for citizens of all types,

i.e.,

whether

agency

or not for

of purchasing

bonds

the pur¬

or carry¬

ing securities) to total loans 12.0%

14.9%

ary,

as

or

(anyone

means

much

rich

of
can

moderate

invest

as

♦Rounded

estimate.

tlncludes loans

for

purchasing

corporate stocks
securities,

and

and

bonds,

State

and

^Segregation between stocks

carrying

or

U.

S.

and

all kinds of

any and

Government

municipal

and

U.

S.

securities,

Government

obligations.

bonds not

available

with

respect to these

loans.

as

$999

a

month

or

as

$40 every three months).

to

busi-

rail¬

on

cor¬

'Senator

Reserve System
Washington 25, D. C.

for the

bonds"

between

Federal

that loans by member banks "not

and

were

January 28, 1955
Mr. William McChesney Martin
Chairman, Board of Governors

to

data

data

result of

a

eral Reserve Board.

in

billion

$1.4

new

committee's

The
as

mar¬

questions

Fulbright and William McChesney
Martin, Jr., Chairman of the Fed¬

by

was

to

be nationalized

industry

press

connection
the

levels

Ratio

Monthly
At

Reserve

buying or carrying se¬
already available, the
latest figures being $2.9 billion in

no

doomed

was

students of

helpful in appraising present

for

curities

our

N

list."

data because of the wide¬

ket

Fed¬

cured

impressive

refutation of all those cynics and
critics who 10 and 15 years ago

to

new

spread feeling among

of

stocks and bonds." Information

less

to

useful

the

that

^

"ap¬
parently se-

J. W. Fulbright

ten¬

profits

our

were

Banks

tripled, the number of our em¬
ployees has increased five times,
our

ities

brokerage firm.

a

se¬

bonds

on
the extent of such
loans has not been
compiled since
1946. Senator Fulbright released

the

prepared

As many of you will recall, ours
was
the
first such report ever

loans

non-purpose

member banks

secured

studied

we

on

by stocks and

were

not

all

the stock market that it would bo

been

"The present situation has often
been compared with 1929. We do

of

loans

In

has

loans

eral

the

steep it has caused

so

all

nearly oneeighth of all

the

was

rise

in

e cur

dicated

prices.

stock

of

banks.

developed at Fulbright's request
by the Federal Reserve Board. In¬

in¬

market. It in¬

course,

of 1954

news

rise

cured

on

purpose

formation

s

1929

vs

12%

Data

the

the amount of

.

Today's

is

member

for

carrying securities)
to
be $7y4
billion.

or

credit

au¬

many

volved

"These

This

14,

data

new

others.

"In

Feb.

on

work¬

not

or

of

-

out

products

institutions

Fulbright, Chairman of Senate Banking and Cur¬
Committee, releases figures furnished by the Federal

rency

puts us comfortably
the top ten U. S. under¬

years.

factories turn

our

The

than

charitable

Sen. J. W.

This

among

writers.

this capital in¬

simultaneously create
wages.

new

or more

preceding 50

and

more

money

invested

result of

a

of

plant and equip¬
past decade.
The

everything spent for
tion

this
One of the

expect

we

to continue.

reasons

tremendous

free¬

normal

for

and

co-man¬

aged syndicates which sold $367,142,000 of new investment secu¬

"The record of

by ambitious and
dom-loving individuals.
allowance

of

businesses

new

started

"With

the

mergers

less than

are

profit

and

more

$2,750,000 to various educa¬

ities

salaries

addition,

the firm

more

1954 alone

by

year.

heard

merge'

number

the
corporations

new

last

is

put together

progress

is part of America's

the

especially note¬
worthy that sales of Government
Savings
Bonds
in
the
closing

ment

cially they

all

are

In

stated

which

billion. Thus

months

York

cash.

$19,267,000

in 1954 spread among 250 schools
and colleges and almost 900 char¬

partners contributed $2,273,000 to

gins

in

Merrill

Christmas

$5,258,000

was

Smith

tional

*

represented

stocks

We think it

the previ¬

other
compensation to the
firm's 4,600 employees. Last year
the firm's employees received a
record Christmas
bonus totaling

one-tenth of the market value of
all Big Board stocks. Today mar¬

ever.

than

and

total

follows:

before

or

$28,028,000-

before

charitable

year.

Mr.

expenses
rose
20%
to $46,516,000 of which

last year

vestment

we

savings bank deposits,
policies and home

as

insurance

in

"Just

raised

has headed

syndicates

ceding

$73,314,000

was

and

its partners had contributed

In 1942 total in¬

$9,442,000.

things

accompanying report
operations

ten years our firm

was

which

vidual thrift and enterprise. Such

businessmen

Messrs.

Individual

"Today there is a decided and
encouraging resumption of indi¬

ownership

firm's

year,

proud that in the past

co-managed

1953

income

taxes

compared with $6,657,000 the pre¬

last year compared with
$47,679,-

'fa¬

a

and investors."

In

reached

and

government-in-business
effort to

Gains for the

operations

concern.

economic

our

1955.
are

us

ernment

marked

in

"We

savings,

noted

a

lion

the

—

declined, so did the
faith of many people in our Gov¬

less

Exchange Commis¬
private capital ex¬
pansion will total about $26 bil¬

fast and

dollar

and

and

so

cies of millions of Americans.

that the past year was one
of the most progressive and pros¬

industry

estimate

base of

pensions, the insurance poli¬

the

by

The U. S. Depart¬
Commerce and the Se¬

of

very

discussing the national econ¬
omy, Messrs. Merrill and Smith

In

incides with lower Federal

expansion

great.

citizens. Barely

our

ago,

Operating Results

income of Merrill Lynch,
Pierce, Fenner & Beane from all

Operating

capi¬
is by

operating

contributions
Firm's

climate

this

the

rep¬

Industry

means over.

go

and

are

of

.

Our

tal

ment

climate'

investors.

and

benefits

effort

marked

a

'favourable

a

mar¬

the market

borrowings

has

this nation

home

just completed one of the most
progressive and prosperous years
in our entire history.
We think
it
highly
important
that
this
progress
coincides
with
lower
Federal taxes, less Government-

Big Board stocks,
"today margins are 60% or more
total

investment

enterprise.

"Here

increas¬

are

is quite apparent this

no

Net

Total

high figure.

far beyond simply rising busi¬
ness
indices or more money in

all

of

schools and hospitals built
American-type

stock

many

buyers were on 10-or-20%
gin and total broker loans
resented

ways,
with

Charles

$20

Since the plan was started
contributions total $8,-

1945

estimated

in

of the

supply of goods and

automatically
and

6%

yet

and

We

World

new

than

population

produce

zens

'dy¬

plain to see

are

less

have

and

rate.

over

.

sion

America's

of

capitalism'

we

—

assets

for

in

158,000.

ous

curities
Gains for Our Nation

"The

astounding

an

year.

plan.

States.

000

a

it was noted,
Lynch, Pierce,

Fenner & Beane had opened 48%
of all plans started in the United

come

techniques

or

1954,

ing at the rate of almost $3 bil¬

wealth for every¬

more

of

lion

in

funds

their

or

create

to

at

Gains

to

as

close

Monthly Invest¬

Today these plans have

"It

public on
report for

investors both

Plan
has
helped)
and
through pension plans which are

investors.

making

far

securities.

the

the firm of Merrill

ment

marked effort to create "favorable climate" for business and

In

thus

have

investment

Today they

Ameri¬

of

workingmen,

Thursday, February 17, 1955

low

At

$Loans

ties,

which

are

but nevertheless

not
are

for

the

secured

purpose

of

by stocks

purchasing
and

bonds.

or

carrying securi¬

:

Number 5404... The Commercial and Financial Chronicle

Volume 181

individuals, which

and

nesses

not for the purpose

theless

secured

Governors of

of

Federal

By WALTER E. HOADLEY, JR.*

Re¬

System, with such coopera¬

serve

tion

the

other

the

of

Federal

quality

agencies as may be
necessary,
would make a spotcheck or survey of representative

-

loans

by

and

bonds

not

stocks

It

..

is

,

readily

.

,

the

if

avail¬

that statis-

understood

.

individ¬

and

,

,

,

showing loans to brokers and

ics

aea ers

in

otners

securities, ana

tor

tne

loans

or

purpose

o

pur-

chasing or carrying securities, are
regularly collected and are al¬
ready available.
The

Committee

will

appreciate

nomic

statis¬

if

this

information

could

be

at

furnished by Feb. 7, if practicable.
It is understood, of course, that

the

the

information

collect

you

will

be

supplied
to
the
Committee
only in aggregates and that you
will not disclose

information

showing loans of individual banks.
Sincerely

yours,

Chairman
on

Banking and Currency
GOVERNORS

OF

SYSTEM

infor¬

what

first

arises,

adopt

the

adeW. E. Hoadley, Jr.

most

business
become

and

Fulbright,

Banking and

on

Currency,
United States Senate

Washington 25, D. C.
Dear Senator Fulbright:
In response to your
letter of
Jan. 28, the Board of Governors
Federal

telegraphed

Reserve

the

System

Reserve

Banks

requesting a spot check or survey
of leading banks which would inthe

volume

of

loans

to

interest

Is it

t

conclusion

J"
j

let

statisti

+vT

oTte'dynSaSTrl
construction

field

in

Government's

.

Ply

because

those

in

businesses

chasing

individuals

and

the

for

not

which

of

purpose

pur-

carrying securities, but
are secured by stocks

or

nevertheless

the

of

some

most

providing additional funds for the
Business

authority

pr0Vement in the public

been

bonds.

or

As

table

the

271

sampled held

the

in

attached

leading

61%

banks

of total

loans

of all member banks, 93% of loans
to

brokers

for

the

dealers

and

ties, and 77%

in

loans

of

securi-

to

of purchasing or
securities
The figures

from which the last two

percent-

critical

leaders in

policy decisions

corporate bonds and securities issued

by the

and

United States

its agencies,

ernment

States

and

political subdivisions; -

.The*

requested

estimated)

closely

statistics

scrutinized

commented

states

Report

Economic

"Economic

are

a n

by
different

d

now

widely
and

men

upon

to

and individuals which

(partly

businesses
not for

are

Nevertheless,
the
words
"closely scrutinized"
just quoted
certainly must be
ing

25

years

"scanned"

ago.

to

mean

rather

"read"

than

or

purchasing or car- by government would disclose to
rying securities, but-are neverthe- almost anyone major deficiencies
less
secured
by' stocks,
or
by which are neither widely known
stocks
and
bonds, amounted to—nor; understood. There has been
approximately $1.8 billion at the a definite advance in economic
leading banks sampled,
their

loans.

to

or

4.8%

of

same

relationship obtained at the

total

If

approximately 6,400 other
ber

such
was

banks,
loans

the
at

total

all

Board's
Reserve

member

of

the

replies

Banks

were

one

suggested.
Reserve
of

district

the

7

not

have

of

Mr.

Huson

of

until

the

report

of

that

in

its

data

your

was

complete.

.

Sincerely yours,
/s/ WM. McC. MARTIN, JR.,
Chairman




are

the

needs

summarized

gram

in

to

be

at-

hv

the

Statists thai

Labor

housing starts

0|

rate

hil

ing

builders

the

are

1400 000

over

being accepted

"official"
and hence
seemingly almost by definition "precisely : accurate."
Government,
therefore, has increasing respon-

as

easy?

homebuild-

new

trouble?

jn

future

jies

the

in

new

nation

Is

credit

respects, the

many

key to

the

of

less lhan 800 000

now

facjng serious
^00

esti-

as

Bureau

Is the

year?

an

homebuilding
rate

vacancy

jn

and

the trend of value of older homes,

Yet,

almost

formation
now

trustworthy insubject
is

no

either

on

available.

matter

fiuence

UDOn

SS

as

How

and

should

concern

which has

ernment

jaws

This

of grave

a

well

a

greatest inas

stake

present

credit

be

for gov—
in

Just

as more

nrooerlv

and

Defense

Services

American Exchange
John J. Mann, former
page

time

Chairman

the

of

extensive and pre-

tion

m

to

open

question

highly fragmentary and unrecently almost complete

cise measurement devices have
become a necessary part of in-

til

creasingly complex industrial machinery, there is increased need
for more comprehensive and accurate measures of what the Economic Report has termed "our
complex and industrialized society" (p. 2). I wholeheartedly en-

important and quite evidently expanding home "fix-up" (i.e., repair and modernization) market
unquestionably causes undue em-

7—

.«««*_.,

.

f

very

absence

1955.

•

information

on

the

phasis on "new homes" in public
policies pertaining to residential
construction. Until the size and

characteristics
™rtet

Report, Washington, D. C., Feb. 9,

of

hardly

of

become

the

incom-

industries,

"Scrambled"
or
overlapping industry data, moreover, often used
by
government
and
others
to

"productivity"

measure

or

so-

called ' concentration ratios
the

percentage

or

one

(i.e.,
few

a

firms have of total "industry

in-

vestment, etc.) obviously are misleading when applied to any spe-

industry group
highly essential
that tabulation procedures for the
It

industry

would

or

full

before
a n u

any

f

further
should
the

a c

t

of

this

cording

given to the report of

Watkins

"Intensive

Review"

Committee which studied

the

tire

year

well

Census

by

as

program

last

en-

as

to the recommendations of

appointed
subcommittee of the Advisory Council
on Federal Reports.
In

"fix-up"

known,

to

an

Edward T.

M.cCormick,
Exchange
President. A
stock

ist,

special¬

Mr. Mann

has

been

1933,

a

since

member

and

has

on

the

g o v e r n

i ng

served

John

board

J. Mann

since

1950.

The entire slate proposed by the

exchange's nominating committee
received member approval
annual election.

terms

year

at the

Elected to three-

regular-member-

as

Charles J.

governors ,were

Bock-

iet; George C. Donelon; Harry P.

Henrique^, Jr., Walston & Co.{ A.
Philip
&

Megna,

Co.;

and

Francis

Co

wag

term

elected

A

I.

duPont

H>

charles

Samuel Weiner of j

Phelps>

Ludlow &

to

tw0.year

regular-member-gov-

as

ernor

Non-regular-member-governors

,

Alstyne, Noel &

Redpath,

G.

& Redpath.

Co.;

Albert

and

Auchincloss,

Parker

John J. Miles, Jr. of

Adriance & Finn

two-year term

was

as

a

elected to

a

non-regular-

member-governor,

subsequently

a

ac¬

industrial

consideration

careful
be

t's

e

elected to three-year terms mproblem. Moreover, elude Albert DeJong, Hirsch &
future
Census
of Co.; Joseph Gimma, Hornblower
u r e s is undertaken,
& Weeks; Richard C. Noel, Van

cognizance

classification

k

r

announcement

seem

1954 Census of Manufactures take

the

by

a

members,

Messrs. Henriques,

jong>
time

Noel

and

governors.

Weiner, DeMiles are first
The others have

brief

opening statement served in the past,
covering such a broad field as
Elected to three-year terms as
Economic Statistics, it is natural to
trustees of the gratuity fund were
stress
areas
requiring attention Charles M.
a

and

improvement

strides

of

The

Federal

forward

Finn, Adriance & Finn;

and

E

,E<

Government

certainly must not be overlooked.

ieast

very

or

of

be

can

in the face

is

>phe

plete

inexact

.

Spencer,

statistics in recent years, however,

these statistica! deficiencies
a

uses

definitions

American

,

„

Stock Exchange upon his re-elec-

making the most
and what types of homes

tures

Exchange
first five-

boy, became the

are

housing

policies

administered

serious

program warrants very

consideration and approval.

that the U. S. Census of Manufac¬

M

^Dy

Census

at

are

households

mated

d

reDorts

current

of

annuai

d

tn

the Budget

by the Congress- In my °Pini° b

heated questions concern¬
whether
large
or
small

cific

signi{icance is

™u

per

evtent

being met?

to

nonfarm

Rut

avail_

now

me

Committee staff, our response was

delayed

government--figures,

often,

what
tached

af

available until Feb. 8. At the sug-

gestion

too

are

grow.

in

one

the

all

is

the housj

mands

reliability of its economic statis*ICS as tbeir ,use continues to

Federal

banks

each month

indicate

t

which

the

reported

nonfarm homes

new

information

hl

sibility for greater accuracy and

deadline date

largest

literacy but

what

c

received

However,

Banks

would

of

banks

to

telegram- to the

time for the Feb.

the

mem-

amount

approximately $3.0 billion,

Most

you

the

ol^'Labor'statfsto

gurcau

carefully jng incjustry and hence the

appraised.
Detailed analysis of
many economic statistics provided

the purpose of

271

Congres-

possible to know with.con-

started

The

intended

-

figure

of loans

Gov-

favorable

mtjon tobe con^dered worthy of ^wmany
separate study and analysis.

derived

were

of

*

^^e

include,
of women
in
walks
of
course, not only loans for the pur- life"
(p. 65).
Such a statement
pose
of purchasing or carrying would have been far less true
stocks, but also those for the pur- f,ve years ago and certainly would
pose
of purchasing or carrying have had considerably less mean-

ages

Because

government, busi-

ness> labor, and agriculture have n°w
achieved sufficient official recog-

others

purpose

carrying

by

in

can be achieved Provided the pro-

well as in several previous activ- upon wmerfw to-base their judgare in greatest demand.
ities, plus the new feature in the ments. Letf me illustrate this point
One other phase of Federal eco¬
Budget message drawing specific;«with regard to home building acnomic statistics, namely, industrial
attention for the first time to the tivity.
merits
at
least
Federal program in economic sta•As everyone here today knows, classification,
tistics are commendable develop- Jf16 Postwar building boom con- passing attention. This problem is
highly important to the extent
ments. It is encouraging to know linues with_ renewed vigor, despite

influence

indicated

interest.

mentioned

to many

progress

™any earlier and some current
^ears or an imminent collapse,

I have

Purposes.

ony Clted two illustrations of areas

serious

statistical gaps and deficiencies in
construction
mentioned
here
by

in
economic
statistics, as evi- r.'.ayr-not have adequate or trustdenced in the hearing today as •w °r khy information available

that at long last important Federal economic statistics which now

and

DroD0^d eco^mics statistics tfro
£™m for both Sublic and Private

-

are

Fed

current

1955

provided and used by government

Committee

aeain

me

importance of^Rie

the

" Message receives favorable action

inate

vitally

about the quality and
availability of economic statistics

of this

as

planning.

"public policy" decisions, and

The

sound

necessary

proposed in the President's Budget
Message,! if adopted, will elim¬

man¬

basis for impor-

^

i

The expanded statistics program

concerned

a

policies

in government economic statistics

oAhat th!f statist

and 1956.

has

statistical
to

course" mit.tee and no doubt wil1 receive
to mean' attention today- Mai°r corrections

bf

interpreted
p, ®

bad

flung

critical

now

statistics

economic
as

that

have

agements

present

being used

the

of

wonder

any

of

q u a c y

frankly,

pursue,

one

aspects of business planning.

concern

over

and

become

because

are

ments

business

This

broad

essential

Others have

™

statistica? oroLam

the management of any
enterprise.
Forecasting
policies
government
will

nomic

for

general rectuiring P™mpt statistical im-

general

e it
current statistical program simrdv
simply

larly by

eco-

government
information

"benchmarks" for private business

nptpnt

life, however, can
minimized, and particu¬

be

to

own

public

accurately

of

rfj

o

economic

never

statistics
•

produc¬
data

accept

pnn~ earlier hearings before this Com-

oll

t

with

the
provide
their
detailed, market-type statistics, but they properly look to

responsibility

rposes^— \*n policy_makinS
are

course

nf

struction

organizations
familiar

am

-

Committee

dicate

t e

organized

the

should not be

in¬

government in current and fu¬

mation.

tant

Chairman,

the

ture

adeade-

morp

q u a

of

in

business
etui

adenuarv

consumption." The im¬
portant—at times dominant—role

in

t

e re s

for

sense

I

in-

deplorable

ThPw'nKcoru^innc

are

efficient

real

measuring

which

ac-

of

FprivaiP1 pol^cy

any

business

Administration,
the
Bureau
of
in making and administering pub- Labor
Statistics, and the Bureau
second, because of the recognized'lie policies?
«...
of the Census. The new program
need for more satisfactory
ecoIn my opinion, one of the great- also will provide badly needed
nomic data to help guide future est risks facing business organiza- "benchmark"
information as well
business planning, which has ob- tions today is to be found in pos- as
up-to-date facts on labor and
vious implications for the entire sible unsound
public policies — material requirements in construe-^
economy.
both as to scope and timing—sim- tion and make available an answer

February 9, 1955

of

t

Federal

FEDERAL RESERVE

Honorable J. W.

n

many

of the

'

,.

i

of

Senate Committee

ami

directives,

most

construction

the

on

directly into the national product
statistics, there is serious reason
to
question whether the latter

and

tion

noticeable

interest

/s/ J. W. FULBRIGHT

BOARD

s

the

struments

pres¬

ent time there
i

government
rule

a

the
now

many current estiit is recognized that
these deficiencies are transmitted

t.
.

it

than
as

information

whole. Many—perhaps most

as a
—

mates. When

One of the most significant de- dorse the "Basic Economic Tenets"
yelopments afiecxing ooui private or guides to policy outlined in tne
and pukiic decision-making in reEconomic Report (p. 2), and parcent yearg jias been tEe
growing ticularly the first proposition tnat
use
of
eco¬
"competitive
markets,
rather
tics. Moreover

investigates

the

knows

adequacy

/

possible unsound public policies, simply because adequate *
or trustworthy information is not available upon which to base
judgments. Says business needs for economic statistics are
mounting, and business properly looks to government for
statistical information essential to sound public policies.

of such

who

of

fi01?~residential
•tivity

in

secured by stocks,

are

segregation is
able.

volume

businesses

to

uals, which
or

the

of

work

being released by government

Though admitting there has been great improvement in and a
growing use of economic statistics, Mr. Hoadley holds one of
the greatest risks facing business organizations today is found

banks and obtain appropriate data
which would provide a
general

indication

Anyone

Treasurer, Armstrong Cork Company, Lancaster, Pa.

bank

supervisory

"fix-up"

probably offers the greatest single
opportunity to stabilize the vast
but always vulnerable new homebuilding industry.

Better Economic Statistics!

the Committee
appreciate it if the Board

would

expanded

I

stocks.

by

For this purpose

ity
and
growth
of, individual
enterprises and hence the country

,

We Still Need More and

.

never¬

are

any
welLconceived program to
develop this market will emerge,

are

of purchasing

carrying securities,

or

21

(821)

it

is

reasonable to expect that

J. A.

A

number of gains in coverage,
timeliness,
and
statistical
ac¬
curacy have been achieved despite
many
sharp cutbacks in appro¬
priations. Nevertheless, the cur¬
rent
general economic statistics
program of the Federal Govern¬
ment
has
many
serious short¬
comings for policy-making as well

LOS ANGELES,
A.

Business

statistics
order to

needs

E.

F.

clearly are mounting in
help insure future stabil-

Hutton

&

Company.

Joins E. F. Hutton
(Special to The Financial Chronic: e)

economic

for

LOS ANGELES,

li"s

J-

Special Analysis I—Federal Economic
Statistical
Programs — Budget of the
United
Year

States

Government

ending June 30, 1956

for

the

Fiscal

(pp. 1203-4).

Calif.—Corne-

Jesse

Charles L. Stone
1

Calif.—Maurice

has joined the staff of
J. A. Hogle & Co., 507 West Sixth
Street.
He was previously
with
Levy

other purposes.

as

Hogle Adds

(Special to The Financial Chronicle)

are

and

Tavlor
now

with E.

623 South
Spring street. Mr. List was form-

F#

Hutton

& Company,
tt* 11

r>:„u

u

r

erly with Hill Richards & CO.

22

The Commercial and Financial Chronicle

(822)

Problem of Liability

"We Are

Ready to Finance

One topic which
of

Atomic Powered Electric Plant"

surance.

We do

question

By II. R. SEARING*

a

case

and

from

lieve

As

today in response to a

evidence

terest

of

tained

Dec.

in

letter of Jan. 27 to

my

commit¬

tue
tee

and

sent

pre¬

views

our

the

on

lems
we

prob¬

which
ahead

see

in

these
vice

talks and

was

reasons.

the

17

such

indus¬

with

t

of

atomic

en¬

Consolidated
Edison

Searing

is

public

utility

company

plying electricity,
in

the

City

of

and

gas

New

Westchester County.

sup¬

steam

York

It

a

and

serves ap¬

rates

and

services

of

pany's operations
by the New York

are

the

Public

Service Commission.
In my

two

means

by which

our company

is

continuing and increasing
activity in the field of atomic

as

This

meant

The

ciple
the

Edison

time
active

Group.

have

we

S.'nce

that

was

not

sistance.

in

seek

A

that

we

government

as¬

tacit

thinking

our

and

assumption in
that we should

was

Commission

an

the

re¬

search program of that
group, now
known as Atomic Power

used

our

or

tion

have

the

area

reactor

a

In that

had

fact

conventional
York

established

for

produced in the

of

producer.

we

mind

prices

or

Accordingly
we
have
principal attention to

economics

power

prin¬

would finance

we

the

that

maintained

participation

fundamental

plant ourselves

given

troit

if possible at

en¬

Chemical-De¬

of

one

as

a

connec¬

Associates.

spent

Our

approximately

company

$200,bOO

One of

officers

our

serves

the

on

Executive Committee of the A. P.
D. A.

We are also
furnishing one
continuously to the working

man

group in Detroit and several of

employees
of

the

are

other

acting

as

of

the

group.
I think

our

experience with his

group has been beneficial.

given

us

mation
f

a

on

It

relatively high.

helped

to

us

which
the

While

on

we

a

and

have

the

to

a

though

they

months

over

period

a

have

involved

different equipment manu¬
facturers who were asked to give

proposals for a reactor of about
100,000 to 200,000 kw which could

us

suitably fitted into
retained

America

consultants, to
in evaluating proposals.

us

been

as

assist

our

Since

negotiations have not

completed, I think it would
be

appropirate

to

ex¬

may

the

that

is

combines

it

and
a

proposals

a

conservative

substantial

One

us.

attractive

in

technique, with

ods not at present

the

fuel

sult

sufficiently de¬

veloped.
The Enactment of the
Atomic

Energy Act of 1954
enactment

of

the

Atomic

Energy Act of 1954 encouraged us
begin discussions with several

to

equipment
with

manufacturers
and
members of the staff of the

Atomic Energy Commission to de¬
termine if there was a reactor
which

could
build now and
which would accelerate the
devel¬
we

opment of the art.

Committee

on

mission

before




1955.

for

licenses

and

in

hope

we

the

to

near

do

so

smaller

Of

course, many problems re¬
to be worked out before a
reactor can

actually

structed
In

any

this

and

new

there

be

operate

rent

to

as

their

reactor

are

error

over

an

a

going

ahead

construction

and

with

be

con¬

various

kinds

only

by

trial

and

extended period of

repre¬

quarters,
in

there

in

sales

trend

which

was

the

is

up¬

an

last

quarter,

continuing into

1955.

Share

earnings

stock in 1954

with

$2.82

based

the

shares

on

common

$2.88 compared
previous year,

were

in

the

on

outstanding

at

the end of each year. However,

if
higher gas rates (which went into

effect

toward

year) had
full
year

the

been

of

for

in effect

the

1954, earnings would
approximated $3.10 a share.
Moreover, the companv did not
get the benefit of a full year's
consolidated

earnings of proper¬
ties acquired during the year. Also
the

1953-54

winter

than

warmer

gas

was

season

normal, depriving
of about $3 million
In the current

company

in

revenues.

the

season

3

has

weather

to

up

colder

been

than

normal, affording the prospects of
imoroved
The

gas

business in 1955.

quarterly dividend rate

dispensable

sented

participation.

So

concerned

their active

intend

present

plans

in

the

we

line

with

our

have

not

considered

question

any

that

regarding

availability of special nuclear
for

reactor.

a

understanding
that

have

time

ficient
for

from

been

that there

the

that

the

mission

We

for

of

suf¬

a

material

the

number

by the

special

be

further

assume

set

time

likely to

are

prices

be

such

operation

reactors

from

will

of

our

statements

made

amount

is

It

Com¬

nuclear

ma¬

fairly represent the costs
of production to the
government,
and hence that they will be rel¬
atively stable.
have

will

the

be

are

think

now

last

development.
we

illusions

no

we

it

On
to

in

word

will

that

the

reactor

other

represent
the

the

considering
hand
real

a

advancement

of the art.

normally

on

our

business..

.

/.

tion

based

on

the

including

deliveries "for the ac¬
count
of
others," sales to cus¬
tomers really gained 5%. Also, if
sales were adjusted to
properly
reflect acquired properties on a
consolidated

American

Stock

Exchange,

on March
1 will also
become members of the New York

Exchange.
hold

the

Joseph A. Zock
firm's

Exchange

membership.

dential

.

.

customers

Carlisle & Jacquelin, 120 Broad¬
the

New York City, members of
New

March

Muller to

York
1

Stock

will admit

Exchange,
George F.

partnership.

in

Toplitt

&

Kaufman, Savoy Plaza Hotel, New
City, members of the New

York

York Stock Exchange.

ward D.

Lyman has been added to

North

decline

Bedford

the

industrial

in

activity during most of 1954.
The

000,

increased
the
by 244,-

company

number

of

but
as

its customers

of

these

were

result of

a

properties. It
cessive

140,000

acquiring
the eighth

was

in which

year

new

customers

the

company's

new
suc¬

100,000

over

connected

were

lines.

The

to

com¬

expects to connect its 3-mil-

pany

lionth

customer

of 50%

during the first
year—reflecting a gain

since 1947.

The

company's huge construc¬
program—probably the larg¬
private electric utility
—is now tapering off somewhat.
Expenditures in 1954 were $171

some

.y

The company also incurred $3&
in bank loans, but these

million
will

be refunded

soon

issue

of

through

an

$50 million bonds, prob¬

ably around March 2 if regulatory
is obtained and market

clearance

conditions

favorable.

are

will raise the total

sue

This

new

is¬

money

financing by the company during
the
postwar
period to over $1
billion. Bonds issued during this
period have an average maturity
about

of

cost

of

issues

30

carrying

a

stock

common

on

a

rights basis,

prices to stockholders.has no definite

company

plans
the

All

sold

were

The

and

years

3.08%.

for
$50

placed.

future

financing

million

But

it

bond

after
is

issue

looks

now

if

as

equity financing can be avoided
this year as it was in 1954. This
will

mean

that

dilution

of

earn¬

ings will again be avoided.
One

by

means

financing

be

can

which
deferred

extra amount of cash

equity
is the

generated by

"deferred" income taxes, resulting
five
years'
accelerated

from

amortization.

Projects

estimated

cost

lion

been

have

amortization.

of

with

mil¬

for

such

certified

Thus

an

$1.00

over

far

deferred

taxes amount
to
only about $3
million, but eventually the amount
will

increase to about $50 million.

decision has yet been reached
to whether accelerated depre¬

ciation will also be claimed under

the

special provisions of the

Internal

Revenue

Generating

capacitv

mates 4 million kw

the U. S. total)

540,000
About
now

kw

new

Code.

with
under

two-thirds

approxi¬

(about 4%
an

of

additional

construction.

of

capacity is
only

in steam compared with

37% in 1945. Last year the output
of

steam

plants only slightly ex¬
hydro output but in future
years the proportion will increase,
particularly if atomic reactors are
installed.
The
companv
is con¬
sidering the latter possibility.
ceeded

tion

in

about

or

1953,

$26 million

and

1955

may

less

be

down by another $40 million. This

decline

is due to the fact

Kalb, Voorhis

that

John Kalb
come

a

on

*-vrtner

'n

Admit

to

March

1

will be¬

Kalh

Voorhis

&

Co., 25 Broad Street, New York
City, members of the New York
Stock Exchange.

re¬

capacity for both electric
operations has now been
brought up to a satisfactory level

serve

and

gas

that

so

new

construction

reserves

is

now

less

to

im¬

neces¬

sary.

The number of stockholders has

increased for 15 consecutive years
and at the end of 1954 the number
was

for

217,336,

increase of 10.253
The company ranks

an

the year.

Drive.

publicly-owned com¬
the number of stock¬

in

California,

and

they

hold

nearly

half the outstanding stock.

E)uring
1954
Pacific
Public
Service Company and its principal
subsidiary, Coast Counties Gas &
Company,

Pacific

G.

were

&

E.

merged
Coast

Counties, with some 140,000 cus¬
tomers, was the last privately-

Calif.—Ed¬

to the staff of T. R. Peirsol &

468

considering

nationwide

into

(Special to The Financial Chronicle)

HILLS,

about

refunded

year.

as

Electric

With T. R. Peirsol
BEVERLY

two

construction.

new

holders. Nearly two-thirds live in

March 1 will

on

partner

gained

for

company

sixth among

Toplitt Kaufman Partner
a

a

creased 2V2%. The latter gain was

satisfactory

panies
Carlos T. Lewin

sold

the

bonds, which had
been
sold during the
period of
temporary high money rates in
1953, with an issue of 3Vs% bonds,
thus effecting a saving of $400,000

No

;

Carlisle & Jacquelin Admit

on

the

for

not

was

million 4%

$6*5

9% and industrial power sales in¬

prove

way,

basis

sales of electricity to resi¬

years,

million

the

the

with

contract

a

of

Reclamation, distorted
comparison of electric sales;

Zock, Shields & Co., 20 Ex¬
than
change Place, New York City,
of

last

2%

up

stock

common

acquired companies). $85 mil¬
bonds
and
preferred stock

were

est for any

To Be NYSE Members

members

were

However,
arrangements for disposi¬
of
Central
Valley
Power,

half of this

We want to get on with the
job,
and as far as possible we want to
do it in the same
way we
carry

sales

new

added

We

reactor

the

in

55c

and gas sales 7%.

year,

the

to

50c

payout of 76%.

a

Bureau

is

from

Electric

are

ahead

go

of

material

of

as

to

area.

7
We
there

to

far

thinking despite the ex¬
possible problems in

istence
this

we

our

for

lion

was

third
quarter of 1953,
and
the
$2.20 rate effective in 1954 repre¬

to enlist

of

offered for cash (some was issued

at attractive

companies, some government in¬
protection might be in¬

surance

issue

the

close

have

the

Capital structure at the end of
was approximately 47%
debt,
preferred
stock
and
33%
common
stock equity. Last year
was the first in eight years that an
1954

20%

Also

increased

of

which

three

opera¬

into

difficulties

This

1954.

tion. With respect to such smaller

operation.
development such as

solved

operation.

put

companies it
serious deter¬

in

gain of about 6% over
the previous year. After showing
only moderate gains in the first

Feb.

become

main

the

Energy,

re¬

prior of April 1.

can

Atomic

Washington, D. C., Feb. 10,

overall

consequence, we have every ex¬
pectation of applying to the Com¬

technological

^Statement by Mr. Searing

Joint

an

which we hope will be rea¬
sonably competitive with conven¬
tional
plants
in
our
area.
In

future,

as

demonstrated

advance in

element, producing

do

is >the

a

winter

of

case

of

to

sented

the

long

submitted

We

understood

as

underestimating the general
problem of liability. Certainly in

will

been

be

to

ad¬

more

types of reactors.

want

Stock

felt

development of

vanced
not

have

fast

con¬

damage law will

war

also be necessary, especially to en¬

Vitro Corporation of

eventually be outmoded by meth¬

The

tained in the

system.

our

liabil¬

excess

ity insurance similar to that

car¬

rpnge effort, we have also
that other avenues must be
even

of government

give de¬
tails regarding cost estimates that

the
as

kind

of
on

basis.

negotiations

several

not

study being

ob¬

three

be

construction

by A. P. D. A.

plored

it

reactor.

support

reactor

the

visualize

will

actual

operation of

breeder
ried

Our
of

some

to
the
problems.
It
well be, however, that some

contribution

We

problems
and

commercial

developments

in

chief

our

only by actual construction
projects can the art be placed

be

faced

in

has

words

out

terial

Objective—To Get Some¬

other

a

solutions

constructed.

New

the

know

may

that

the

that

will

and will work

in

jective has been to get something
done, for we firmly bel'eve that

steady flow of infor¬

jeld of reactor technology

has

In

a

involved

or

about the hazards

more

of

thing Done"

our

members

committees

"Our

on

that program last year and we ex¬
pect to spend $400,000 in 1955.

great deal

three

In that in¬

now.

confident

are

costs

in

finished

industry

much

Develop¬

ment

we

insurance

the

fuels

are

is

reactor

Electric

&

electric and
gas
measured by revenues of

million

$386*

a

not arise until

Gas

largest

utility

turn

very

that

our

,

four years from
terval

Pacific
second

f

event, the additional
resulting from the operation

with

second

the

the Dow

from

product

order

firm price.

the

as

would

we

reactor

have in

we

man¬

other addi¬

any

from

be¬

disproportionate to
k

may

accept whatever charges

then

con¬

same

our

joined

to

was

the

usual suppliers

our

reactor.

known

that

finished

material

group

tried

we

our system and to
go about
purchasing of a reactor in the
same way we would go about the
purchase of any other addition.

Our effort in this area
began in
the fall of 1952 when we

study

it

We bel.eved that

approach
would

we

ergy.

industrial

that

discussions

our

on

manufacturers

reactor in

a

would

letter of Jan. 27 I stated

and

further.

tion to

com¬

regulated

State

that

us

the

a

The

the

proper

ner

and

customers.

told

future
us

carrying

sider

a

steam

the

in

advise

ciples in mind.

proximately 2,800,000 electric cus¬
tomers, 1,350,000 gas customers
4,000

or

keep certain fundamental prin¬

the

ergy.

Hudson R.

to

security

letter of Dec.

a

the

The

not

any

courage

developn

for
In

Commission

a

In

the

e

formal

more

a

relationship v/ould be de¬

would

rn

on

having

were

requested ad¬

we

necessary

other

sirable

trial

letter

by

we

relationship with the Commission

tives
to

In

risk

Chairman

the

to whether

as

risks

the
are

other risks which

specific in¬

our

7, 1954 that

attaining
our
objec¬
relating

of

Commission

the

that

do

we

of the reactor will

notified

we

as¬

Further¬

standpoint.

that

is

system. '

seek government assist¬
problem in liability and insurance.

by this Committee that I
supplement the information con¬

can

we

risks.

safety

operation

finance the plant ourselves and not

appear

the

result

net

getting something done, in the belief that only
by actual construction of projects can the art be placed on a
commercial basis. Says, as a fundamental principle, "we would

I

accordingly

Pacific Gas & Electric Company

a

the reactor we are con¬
sidering has certain advantages

is desirous of

request

Utility Securities
By OWEN ELY

in our
large

deterrent
system is

more,

has maintained active participation in the research

a

real

substantial

sume

of the Atomic Power Development Associates, and

Sees, however,

Public

consider this

not

Our

now.

one

Chief executive of largest metropolitan light and power pro¬
ducer tells Congressional Committee on Atomic Energy that his

ance."

is the subject

great deal of discussion cur¬

a

rently is that of liability and in¬

President, Consolidated Edison Company of New York, Inc.

company

and

Insurance

an

program

Thursday, February 17, 1955

...

Co.,

owned

electric utility
system, of importance in northern
gas

California

G. & E.

•

■,

AREA

RESOURCES

explains why
tremendous

area

we

BOOK
serve

offers

opportunity to industry.

Write for free copy
P. 0. Box E99, Dept. M, Salt Lake

City 10, Utah

and

other

than

Pacific

UTAH POWER
& LIGHT CO.

Volume 181

Number 5404

...

The Commercial and Financial Chronicle

(823)

23

E. A. Pierce Heads
Our

Reporter

Governments

on

Circus Committee
Edward Allen

Pierce, partner of
Lynch, Pierce, Fenner &
Beane, has accepted the chairman¬

By JOHN T. CHIPPENDALE, JK.
The

Transportation Ratios:
:

1954

1953

vs.

It is axiomatic in the railroad
industry that when volume goes
down transportation ratios
go up. This ratio represents the actual
cost of handling and
moving freight and passengers, and if the
passenger business or freight movement
drops 10%, for example,
it is generally not
feasible, or indeed possible, to curtail service

sufficiently to completely offset the revenue loss. It
acteristic of the
industry that caused some concern
to tee

a

ago

year

time

:

not

are

yet available,

transportation ratios for

1955
of

it

be given to a Federal

can

question

about the

Bailey
M

high

1954

There will

-

be

never

satisfactory rate of return for such

,

Edward

,

-

rise in their ratios to less tnan

There

'

>

point.

one

'

;

;

was

only one road, Virginian, with a ratio below 30%
last year, compared with six in that
category in 1953. Relatively s
the poorest performers in that
group were Western Maryland 'and

or

less of

A.

Pierce

become

•

"The

of

On the unfavorable side of the
picture there were nine roads,
that had transportation ratios 3.5
points, or more, above 1953 levels
in 1954. The poorest relative
showings were by Lackawanna: Erie,
and Lehigh Valley, with the first two

extension

of the

bond

one

special circus event," Mr.

"will constitute one;
largest single fund-raising
said,

the

the

of

events

1955

Showman
produce
a

will

that

co¬

"Stock Exchange Section."

the

Pierce

Humphrey Expresses Pleasure
indicated

C.

Mr. Pierce's committee will

paign.

Humphrey

by

operate by selling blocs of tickets
for the event which it is hoped
will be identified that evening as

a

Although Treasury Secretary

was

eral Chairman of the benefit.

large enough one to give it the size
that some money market specialists believe all
outstanding gov¬
ernment bonds should have.
'
v

Western Pacific both of which suffered rises of more than
three
points. The others, Rio Grande; Gulf, Mobile &
Ohio, and Kansas
City Southern all remained below the 31% level.

it

announced

Patterson,
Jr.,
former
United
States Ambassador, who is Gen¬

a

itr would no doubt

Founda¬

Richard

air, since it might eventually turn out to be
curiosity because of the limited amount of the
original subscription. This has happened in the past, and could
occur again.
y
However,.if this issue should be reopened at some later date,

more

e w

Rheuma-?:

tion,

throw his hat in the

3s is

new

30,!

tism

a

To be sure, an issue of Treasury bonds the size
nothing to get so'- excited about that one would

,

the

n!

and

security.
'V
Treasury announcement that $1,917,000,000 of the 3%
bonds due Feb. 15, 1995, were taken in exchange for the call 2%s
was considered a favorable development as far as the
money mar¬
of

at

o

York Arthritis ^

grade

ket is concerned.

s

for the benefit3

The

i

i

March

on

payment

vestors because of the very

held

d

of the N

of interest and principal: The
should also make this bond attractive to in¬

rate of 3%

coupon

be
a

and

Circus

Square Garden

good issue for the institu¬

obligation;

Ring-,

Barnum

rating

which

the

to

a

the

premiere

ling Bros, and

tional investor and in time will be well digested
by these buyers.
is a. long-term non-callable obligation, with' the highest

gross revenues for the year were off about 13%
in tne face of this
decline, it is indicated that the in- /'

and 1953 and the increase in
points
for t-e latter period. It will be noted that two of the roads
covered, Soo Line and. Virginian, actually reduced their
transportation
ratios last year, with Virginian
having by far the lowest ratio of
.the group. Another six, Atlantic Coast
Line; Central of Georgia;
St. Paul; Rio Grande; Missouri Pacific
and Union Pacific held the
.

mittee for

Highly Rated

It

dustiy transportation ratio was up less than 2.5 points and held
below 39%.-Individual
railroads, as usual, fared differently. In
the following tabulation we show for 42 of
the major carriers*

-

ship of the Stock Exchange Com¬

•

The 3% bond due Feb. 15, 1995 is

*

,

likely tnat

from

of

process

operation by

well enough settled in permanent homes,

are

well placed.

as

New 3s

any

roads

they

as

these transportation expenses.

While figures for all Class I

before

to be classified

ratios

seems

the

of a not too significant floating supply in each issue. On the
other
hand, it is evident that the 3s of 1995 will have to be given more

tended to soar
sharply. Now that the 1954 figures are in,
there is much greater confidence on the
part of investors in the'
effectiveness of the huge postwar
capital expenditures as a con¬
over

in

irtasujy. The short-term obligations, that is the 1%% and '2%
notes, seem to have been fairly well digested in spite of reports

likely level of rail earnings in 1954. In the past it had been
found that on a drop in business of as much
as 10% transportation

trol

still

out of the recent

came

tne

this char¬

was

government securities market is

assimilating the issues which

Merrill

arthritis

cam¬

Michael Todd
star - studded

"Dream Circus" which will be in¬

the

40-year 3%

corporated into the regular circus.
This is the only time this produc-:

named

important features of the recent refunding
operation, it seems to be the opinion of certain money market
specialists that the more important accomplishments of the "re¬
cent Treasury undertaking will be the effects that should be felt

39%

sometime in the future in the stock and
mortgage markets. There
is no question but what an extension in maturities of the

to $50

ernment debt

Circus

for such

and

4.2 points and the last

up

,

4.0 points higher. All in all, there were 15 railroads with
transportation ratios above the indicated industry figure of around
and

most

of

these

in

were

the

The

east.

highest ratio

was

maturity

of

of

the called

2%s

into

a

the

tion will be

one

that of Chicago

& North Western (46.5%), followed
fairly closely
by Boston & Maine; New York Central, and
Pennsylvania, all of
which lad ratios above 45%.

it

a

tasks which must be carried out by

1

Reserve Still

Points

15)54

1953

Increase

Atchison, Topeka & Sante Fe___

33.2%

30.7%

2.5

Atlantic Coast Line

37.6

36.9

0.7

the monetary authorities.

Baltimore

42.4

38.5

3.9

&

Ohio,

Bos.on & Maine

45.4

41.9

38.8

38.6

been

0.2

of

Georgia

Central Railroad of New

Jersey

42.5

41.0

34.0

31.5.

Chicago, Burlington & Quincy
Chicago & Eastern Illinois
Chicago Great Western

37.9

35.2

2.7

39.7

35.9

3.8

32.4

30.4

in

2.5

2.0

Chicago, Milwaukee, St. Paul & Pacific
Chicago & North Westernj
;

39.9
44.2

the

future

37.1

34.3

Board

Denver & Rio Grande Western

30.1

rather

43.8

Great

39.6

Northern

-

0.6

39.6

33.4

32.1
28.6

2.3

Illinois Central

36.9

34.5

2.4

Kansas City Southern..
Lehigh Valley

43.6

Louisville & Nashville

36.5

'

1.3

30.9

30.6

Minneapolis, St. Paul & S. S. Marie.-,

39.5

*1.2

34.6

'1.1

36.5

0.9

New Orleans, Texas & Mexico...

33.8

New

45.3

New

New

York

Central

York, Cnicago & St. Louis.i...
York, New Haven & Hartford..

Norfolk

Northern

40.9

38.1

•

41.8

Reading Company

40.3

36.9

St. Louis-San Francisco..

38.4

35.2
31.8
37.2

30.7

1.2

Seaboard Air Line
Southern

Southern
Texas &
Union

...

Pacific.;

'.

Railway
Pacific

3.5

"
;

'

\

the 3s

fornia

of Feb.

that the

market

many money

monetary authorities

are

•

going to

Maryland

Western

Pacific..

:

32.2

•

York

York

New

March

•

U. S. TREASURY

carry

(Special to The Financial Chronicle)

curities
a

111.

—

Northern

Corporation

securities

is

business

engaging

C.

from

with

of¬

Barnes

fices at 135 South La Salle Street.

Board
bers

President

and

F. deNinno,
ence

R.

Hugh

S.

Treasurer;

Brogan,

Joseph

Secretary, and Clar¬

Serb, Assistant Secretary.




of

of

west

Barnes

has
C.

B.

become

Trade

the

associated

Christopher

&

Building,

New

York

and

1

Stock

will

Exchange,

admit

Herbert

on

W.

Keller Adds

to

Staff

r

BEVERLY
S.

BOSTON, Mass.—Bernard A. G.
Taradash

has

been

added

to

was

Exchanges.

Mart

the

staff of Keller & Co., 53 State St.

Turovsky

the

staff

of

HILLS, Cal.—David
has

been

Boren

added

&

Co.,

to

186

North Canon Drive.

Aubrey G. Lanston
8c Co.
INCORPORATED

Co.,

mem¬

Mid¬

Mrs.

previously with E. F.

Hutton & Co.

Boren

(Special to The Financial Chronicle)

Hentz Adds to Staff
With Renyx,

Field

(Special to The Financial Chronicle)

Stock

PUBLIC REVENUE

111 Broadway,
LONG BEACH, Calif.—Phillip
City, members of the E. Sperry has formed Phillip E.

(Special to The Financial Chronicle)

KANSAS CITY, Mo.—Mrs. Anne

Officers

are

Christopher Adds

(Special to The Financial Chronicle)

Se¬

and

«

Leeds,

.

CHICAGO,

pre¬

viously
with
Investors
Realty
Fund, Inc.; Mr. Harris was with
King Merritt & Co., Inc.

P. E. Sperry Forms Co.

Joins

B. C.

Wilshire
was

Sperry & Co. with offices in the
Security Building, to engage in
Sierck, member of the Exchange, the securities business,
to partnership.

♦Decline.

Northern Sees. Formed

3924

Mr. Gaston

Harris

they are now embarked upon in a much **
delicate and less blundersome fashion than was the case in"'

Spear &
New

3.8
•

Investors,

B.

STATE, MUNICIPAL

3.5

28.4
28.1

Robert

SECURITIES

*2.9

31.6

J

and

the program which

Spear & Leeds Admit

0.7

25.5

ANGELES, Calif.—Wilbur

Gaston

Boulevard.

sure
here and there will bring about the desired results
without
repeating the 1953 performance.

1.9

35.8

22.6

Western

31.1

36.5

\

(Special to Thb Financial Chronicle)

LOS

enough pres¬

3.4

•

33.0

Pacific

Virginian

in

education.

a

2.1

31.9

at

It is indicated that the powers that be do not want to
throw
economic scales too far out of balance in their efforts to curtail some of the excesses which have come into the
stock market
and the mortgage market.
Evidently, it is hoped that

1.1

39.3

ahead

move

the

3.2

32.9

pational rehabilitation of arthritis
victims, and. medical and public

1953.

2.8

45.3

to

clinics, research in rheu¬
disease, physical and occu¬

matic

appears as though
margins by the Federal Re¬

continue

for

used

support of

have become affiliated with Cali¬

out

1.2

Pennsylvania

prices

be

and

T.

more

2.6

30.4

stock

will

arthritis

enough to

refunding.

Following the margin increase, came the announcement by
Treasury that a 3% bond due in 40 years would be offered
exchange for the called: 27/8s. This showed that the
monetary
authorities were working together in an effort to limit the fund's
which were going into the mortgage market.
The $1,917,000,000

It is evident

2.2

42.2

31.6

Pacific

34.3

because

Funds

establishment

in

1.2

44.8

had

time

longest Treasury obligation are believed by
specialists to be mainly mortgage money.

2.9

36.5

Western

&

32.6

42.4

*

-

has

out of the recent

15, 1995 which came out of the exchange offer
for the 2%s did beyond
any doubt take some money from the
mortgage market.
The extent of this limitation of mortgage
money by the recent government bond issue will
always be a
point of discussion, but, nevertheless, the funds that went into the

1.7

38.3

Pacific

market
came

the

continued

Two With Calif. Investors

of

3.2

*38.7

-

.

4.0

33.3

r

37.4

Missouri-Kansas-Texas.
Missouri

28.9

39.3

,

money

dation.

through the
be

the

4.2

Gulf, Mobile & Onio.

the

securities which

doubt

no

Funds Taken from Mortgage Market

4.2

29.5

-

43.8

—

the money markets

donating the entire

rapid rate.

2.8

Erie

when

new

on

This process will

Margin requirements have been raised and it

2.3

Chicago, Rock Island & Pacific
Delaware, Lackawanna & Western

pressure

Mr. North is

proceeds of the event to the Foun¬

The Federal Reserve Banks have

there might be additional increases in

0.4

46.5

'

some

Rheumatism

miere.

it seems, are to limit
which have been going into the stock

mortgage market.

Treasury Bills.

digest the

serve

40.3

and

putting
of

sale

1.5

Chesapeake & Ohio

t

market

3.5

Central

availability of funds

up

ticipating committees for the pre¬

Applying Pressure

The present aims of the powers that
be,

the

from $2

be obtained at the

may

Fourth

Transportation Ratios
Y.

priced

are

and

Desk, fifth floor, Arthritis
Foundation, 432
Avenue, LE 2-1742.
All
phases of the business, industrial
and labor world are forming par¬

is a desirable thing, provided conditions are
right
development. On the other hand, there are times when
necessary to shorten maturities because there are certain

is

a

Tickets

gov¬

was

presented. / It's going

wonderful night for every¬
who attends."

to be

PITTSFIELD, Mass. — Donald
L. Merrill has joined the staff of
Renyx, Field & Co., Inc.

15 BROAD

(Special to The Financial Chronicle)

BEVERLY

HILLS,

Cal.—Allan

H. Rockier has been added to the
staff

of

H.

Hentz

&

Co.,

Santa Monica Boulevard.

9680

ST., NEW YORK 5

WHitehall 3-1200
231 So. La Salle St.

45 Milk St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

24

(824)

A

The Commercial and Financial Chronicle...

Bankand Insurance Stocks

By ROGER W. BABSON

..

Mr. Babson tells the story of a
tragedy arising out of situation
in which an attorney was
permitted to draw wills, wherein he
made himself both principal heir and executor.
Poses five

I

here

back

am

winter

again

wish

and

to

for

tell

the

of

Attorney

a

Owing

tragedy occurring during my ab¬
sence,
although you may have
read

of

it

shot,

in

(1)

sure, I

A well-known
and

At

able law¬

our

(2)

very

table

Two;

respec¬

in¬

and

Of

friends

mine;

Two
Roger W. Babson

murder,,

apparently

had

WILLS
When

for

these

submitted

he

two

The law¬
up

friends.

them

the

to

they suggested certain
corrections, asking the lawyer to

makers,
have

the. WILLS

they would

come

retyped,

Lessons

were

these

intelligent

apparently

to

Be

attorney

I

the

made

people

for

by

WILL, collected
and
legally closed

money,

He

case.

supposed

was

to

again reading the WILLS before
final signing and witnessing,
and for not initialing each page.
Nor
did
they take the
signed

leave

1954

I tell this story
many

readers

God

to

these

five

important

very

have

compared

the

to

trouble

which

(1)

Should I

Bonds
Real

(2)

Should

slipped

been

after, the

in

I

Should

possession

sign

of

balance
make

of

attorney

common

executor

practice

an

where

-with.Trust Departments
easily available.

is

a

banks
not

are

paper

no

.the

WILLS ,had

allegedly,
been "fixed" to leave the attorney
large sums of money and he was
to be executor, he needed only to
wait

until

one

of my

two friends

should die to get his money.

Both

apparently in good health.
Hence, if the lawyer were in a
hurry for his money, a murderer
were

would

seem
necessary.
To com¬
the story, I now depend
witnesses at the trial just

plete
upon

ended.

in

every

single

the

attorney

to

and

in

In

individ¬

I fail

teach

year

to

pass

posedly

respectable

one

This

a

or

both

of

contractor

sup¬

contractor

the "trigger man" to

secure

der

employed

my

who

Wills

the

pealed,

gro

claiming

alleged

negro

friends.

The

93.5%,

was

This

to

have

employed

to do the killing.

•

.

•

.

This

State's

w.




valuations

were

on

CHICAGO, 111.—Tri
Corporation

a

with

1953

resulting
well in

the

in

combined

State

the

we

Shr.

in the
are

and

Robert

J.

Condon

has been President and Treasurer
of

& Condon, Inc. for

McDougal

many

years.

profit

of the average of 5.38%

McCormick & Go. Wiii
Admit Three Partners

severe

by all writers of extended coverage

on

111. —On

CHICAGO,

.

Charles

for

only

the

stock,
this

the
per

101-102

the

area,

share gain.

since

Dec.

cash

31,

1944

dividends

in

(adjusted)

the

decade,

priced

are

„

March

1,

Gerhard

the ten

„

B.

It is here in
are

resulting

gain

the expense

favorably

ratio

%

some

time.1

^

-

—.■

D. T. Moore Partner

Y

On March

1, Hervey L. Kimball,

member of. the

in

D.

T.

Moore

Street, New

Stock

New.York

Exchange, will become

influenced.

TEN-YEAR STATISTICAL RECORD—PER-SHARE

petroleum

a

ne¬

evi¬

.

Exchanges.

Stock

Midwest

firm for

years

that under¬

unfavorably

or

Mc¬

to4 this the
to the stock¬

ten-year average expense ratio of 38.1% is low among
the leading
companies, and is an indication of the high calibre
management.

in

Adding

The

writing profit margins

partnership

All have been associated with the

about 2.2 times the liquidating value at "the
and about 2.7 times the price at that date.
The price of Continental appreciated about
175% in this timer
Investment income increased 144%.
<
>

of jthe

to

Street, members of the New York
and

at

holder of $101.39 is
start of the period,

.

Lundfelt,

Cormick & Co., 231 South La Salle

—_

.

stock ^in

$79.14.

was

the

shares

;

,

The increase in the equity of this

^

admitted

assets,

times

1.4

E.

Noll and Harold E. Splon will be

war,

of

company

of

South

208

Officers

Secretary. Mr.

Dempsey,

inflation and the rest) we find that the gain in
including realized profits and losses, was
$179,669,000, or about $71 per share. At about the present

price

are

distribution

at

engage

business.

Treasurer

and

back

go

value

some

a

Stre'et to

Se¬
been

has

Joseph P. Condon, Vice-President

loss, and

underwriting

an

excess

Salle

La

offices

with

formed

securities

coast.

depression,

Company
is
a
with various op¬
erating subsidiaries engaged prin¬
.

was

Pittston

holding

stock

twenty years to test the management's longterm handling of its investments (the
twenty-year period being
selected to subject management to all manner of economic
swings,

being sold on
behalf
of a
selling stockholder,
the Englewood Corp.

&

a

partner

Co., 50

-

Broad

York City, members"

of the New York Stock Exchange.

■

Liq.

Und.

Invest.

Federal

(primarily fuel oils), in

Value

Profit

Income

Taxes

Earned

Dividend

High

Low

the production and distribution of
bituminous coal, in transportation

1945___. $54.52
1946___' 53.49

$1.57

$2.27

$0.95

$2.89

$1.00

47%

36%

1.31

2.45

0.39

3,37

1.60

50%

1.74

2.88

D.22

4.40

1.60

44%

3.30

0.91

5.96

1.76 "

51%

38%";

4.77

3.71

9.92

2.00

62%

2.74

45%-

T. 4.58

2.05

5.27

2.50

70%

0.64

50%

4.71

products

and

warehousing,

in

exploration

;

-1947__J
-

ural

gas,

and

in

exploration

1949__r
•1950

for

gross
revenues
the first nine months of 1954

from

sales

28%

distributed,

portation

and

of

from

~

•

1954__ii'

mined

■

Net

„

Price Range

1.48

3.8T

2.50.

78

2.79

4.90

1.91

5.78

2.80

81%

5.10

1.38

6.40

2.95 >

82%

67-

5.31

1.03

5.24

3.00

97%

organization
dividend
the

102

years

It

ago.

is

at

present

rate, payable 75 cents quarterly.

New

York

on

ner
-*

to

Mo.—John R. Gard¬

March

will be admitted

1

in

"partnership

Reinholdt

Gardner, 400 Locust Street,

&

mem¬

72

.

This company's dividend record has been
i

ST. LOUIS,

.

35%

0.96

124.90

Reinholdt Gardner Partner
*

36%,
*

2.68

/'

97.25

for

6% from trans¬
warehousing and

2% from miscellaneous

'

'

was

petroleum

coal

3.57
.8.86

81:43 '

s_

1952_._

consolidated

•

68.98

.

1953_^_

Approximately 64% of Pittston's

"

58.28

1951—89.39
T 98.07

uranium.

derived

54.33

1948___

for and production and sale of nat¬

Stock

-

'

64%-

bers

of the

New

York

and

Mid¬

68%

west Stock Exchanges.

-

.

■

-

uninterrupted since
on

a

BREAKDOWN OF—

$3.00 annual

The stock is listed

Govt. Bond Portfolios

on

Exchange.

Sources of Gross Income

sources.

16 N.Y. C. Bank Stocks

Gwynn Shields Co. Opens
(Special to The Financial Chronicle)

been

his .innocence)

suddenly turned

dence.

shares

and

their

.company

the

bond

ended

years

ratio

east
If

Offered at $28

sale

(Special to The Financial Chronicle)

to

found guilty (although he has ap¬

is

ten

hurricane losses suffered

centers

and

the

writing profit margin down to 5.9%, partly because of the

Pittslon Co. Stock

as

Formed in Chicago
269,023,286

twenty-nine leading fire companies in the same period. The
ten
years
through 1954 brought Continental's average under¬

banks,

newspapers,

mur¬

has

surplus

liab.

for

encourage

information

about

the

expense
a

great importance?

and

Prosecutor claimed

$25,000,000

244,023,286

all

by $789,444, and the policyholders' surplus by a like amount.
Net premium writings of the
Company increased in the past
ten years from $29,468,000 to
$66,775,000, or about 126%. Surplus
was
up about 140%
in the same period.
And there are other
impressive growth factors in Continental's operations:

in¬

will

statement

margin of 6.5%.

let

I

way

and

products,

The County

2,167,781

Capital

Tri State Securities

3,390,000

other

for

basis approved by the National Association of Insurance Commis¬
sioners.
Actual market values would have increased the
figure

one

out

my

this

cipally in the storage and whole¬

A Murderer Is Now Needed

As

expenses

Reserve

$362,299,179

.

controlling the
the"money.. Yet, to

1,490,736

Reserve—Taxes,

5,684,986

assets.

Ohio.

Co., Cleveland,

17,407,506

6,880,037

:

F. Linch

$68,819,870

adjust.

ques¬

a

that

so

taken

any

Should

colleges,

If,'

willed him and for

&

process of

Reserve—Reinsurance

503,173

i

Liabilities—

Policyholders' surplus

Allen & Company and Reynolds
thel tragedy would'
& Co. Incorporated on Feb. 15 of¬
not have taken place.
- - ."
;
fered 203,000 shares of The PittsThe lawyer also made himselfton Company common stock at a
the .executor of the two WILLS..
price of $28 per share. None of
This would give him advantage in
the proceeds from the sale of the
collecting the
money
allegedly stock will accrue to the

\

accrued

i

■

Unearned premiums

11,437,721

home,

,

f
i

$362,299,179

typewritten

I leave

Should

(5)

however, each WILL had been:
read
again,.; finally sighed, and;
taken

share of

per

,

Losses in

118,875

balances

Interest

ual, however honest?

an.<T

signing.

$337,674,387
:

Cash

without rereading my will?

rewritten

stocks

estate

In

sign

ever

be

can

(3)

The

could I have

31, 1954
'

and

Agents'

fi¬

documents without signing or

(4)

lawyer, or someone, al¬
legedly slipped into the WILLS
a clause leaving him a large sum
of money.
This could have been
done during the retyping before
the parties finally signed; or, be¬
ing typewritten WILLS, a. page

about $29.20

to

Dale

Fred W. Hudson,
Ball, Burge & Kraus, Cleveland,
Ohio;
W.
R.
Hunter,
Hunter,
Prugh, Ball & Davidson, Dayton,
Ohio; John B. Joyce, John B.
Joyce
&
Company,
Columbus,
Ohio; Charles A. Richards, Field,
Richards & Co., Cincinnati, Ohio;
Walter
Trinkle,
The
Kentucky
Company,
Louisville,
Ky.;
Elbridge S. Warner, Hayden, Miller

'

Dec.

followed.

Importance of Executors

equal
'
/'

\

(Parent Company)

changed?

would

Cleve¬

Co.,

land, Ohio; L.
W.
Hoefing-

other than" auto, auto liability,

Assets—

without reading it before signing?

some

Asbeck

erman,

curities

each

this

$73 million,

r

the

the

M.

Old-

Asbeck,

ANNUAL STATEMENT

a

%y.

Committee:
Frederick

all

tions:

itialing each sheet

This would

about

outstanding.

in order that my
ask themselves

sheet

bother, but
been
nothing

in

.

ville, Ky.

&

business

may

them to a place of
that they might be re¬
year.

do

to

T

Louis¬

p a n y,

other

.

was,

stock

verdict.

with

entailed

now

other.

each

to

licensed

Linch,
y n

Co., Inc., Cin¬
cinnati, Ohio;

All other

so

once

is

1955.

Moore & Com-

one-

a

e r w

outstanding

present

Net

nal

I

deposit,
have

at

are

B

portion of the business, the company holds,
categories, large amounts of common stocks of
industrials, utilities, rails and banks, generally of very high qual¬
ity. The net increase in the market value of its bonds and stocks in

lawyer in our commun¬
ity and, of course, may have been
innocent.

Dale F.

In the investment

brilliant

WILLS

read

relationship

the
be

parent units owning

There

affiliates.

21,

Chairman:

and

Eagle Insurance Company,

each of the two

the

and

its

:

hoff, L. W.
Hoefinghoff &

not

the

in

pro¬

the

Fire;

20

of

held

elected:

were

it acquired

1929

Niagara

Jan.

on

Inc.

following

workmen's compensation, liability,
auto property damage, etc.

the

have

In

and

Association

Dealers,

states, Canada,
Alaska, Hawaii and District of Columbia, being represented by
over 9,000 agents.
Its premium writings include fire, ocean ma¬
rine, inland navigation, extended coverage, auto physical damage,

Learned

would

Fidelity & Casualty Company

Continental

killed, without in any way
connecting the attorney therewith,
the

of

of

constant

and

before

fleet

capital of $100,000.

a

The

par $10 per share, of Continental, and 2,000,000
Fidelity Phenix; and because of this ownership ar¬
rangement the statistics of the two top companies bear a fairly

been

and

in again shortly
Fatal mis¬

thereafter for singing.
takes

recently

Fore

with

the fleet,

up

shares

Apparently my two friends had
very close call.
If one had first

b y

drawn

two

here

of

1853

election

of New York, a member of
insurance companies, began

2,500,000 shares,

upon

the status when

was

America

in

interest

among

bated
yer

half

WILLS

above

tragedy.

make

elimi¬

concentrated

This

arrived

friends.
Now for the

death

the "trigger man"
others connected
with

any

a

my

this

rate

finding

(3)

orciared

of

home

convictions.

and (4) A "trig¬
allegedly employed to

one

his

i

the said lawyer;

man"

of

Insurance Company

National

the

of

10

Securities

Insurance Stocks

—

These companies, with American

attorney from the pic¬
Thereupon the able County

deal.

telligent wellto-do

found

was

do not know.

Prosecutor

commun¬

ity;

other

or

Week

it combined with Fidelity Phenix Fire Insurance Company which
had been founded in 1910 as a consolidation of two companies.

the

ture.

in

many years

door

control

Babson

any

nated

living for

yer

above

large

business

Dead

attorney

the

Continental
the

Park, on
the
morning of June 9, 1954. Whether
he committed suicide, or was shot
by someone who
feared expo¬

story

involved:

in

Found

the

the

near

here

newspaper.

This

to

reasons,

local

your

ger

This

Elects Officers

:

COLUMBUS, Ohio—District No.

By ARTHUR B. WALLACE;

important questions relating to the making and reading
of wills, and the
signing of documents.

very

-

NASD District No. 10

Tragic Story and Its Lessons

.

Thursday, February 17, 1955

Joins Stern Brothers
(Special to The Financial Chronicle)

OAKLAND, Calif. — GwynnCompany is engaging in

Morrow
with

offices

at

306

G.

Gwynn is President and Wil¬

liam
urer

B.

Fifteenth

Street.

Charles

Shields, Secretary-Treas-*

and Vice-President.

CITY,

has

Stern

Baltimore

Mo. —Allen

become

Brothers

Avenue,

-

&

associated

Co.,

1009

members

of

the Midwest Stock Exchange. Mr.

Morrow

Circular

on

request

(Special to The Financial Chronicle)

KANSAS

securities business from

Shields
a

Joins Arthur B. Hogan

previously with Mer¬
rill
Lynch,
Pierce,
Fenner
&
Beane and City National Bank.

HOLLYWOOD,
Garat

has

Arthur B.
wood

joined

Calif.
the

—

Anton

staff

of

Hogan, Inc., 6757 Holly¬

Boulevard.

Mr.

Garat

was

was

formerly
Co. and

with

Daniel

Reeves

Hill Richards & Co.

&
!

'•

Laird, Bissell & Meeds
Members New Tork Stock Exchange
Members
120

American Stock Exchange

BROADWAY, NEW YORK 5, N. X.
Telephone: BArclay
Bell

Teletype—NY

7-3600

1-1248-49

(L. A. Gibbs, Manager Trading Dept.)

Specialists in Bank Stocks

-

*

Volume 181

Number 5404

...

(825)

The Commercial and Financial Chronicle

MEMBERS

OF

THE BOSTON SECURITIES TRADERS

ASSOCIATION

At The Parker House

31st ANNUAL

%

DINNER

"

February 11, 1955

President

Corresponding
Secretary

Recording
V ice-President

Treasurer

Secretary

*
jj^p

u

James E.

Moynihan

J. B. Maguire & Co..
Inc.

W.

Lothrop

E. Hutton

&

Co

Whiteside,

Chace,
West

&

Carl V. Wells

Frederick V. McVey

Edward Hines
Gilbert M.

J

Winslow,

Inc.

Paine,

Childs, Jeffries &
Thorndike,
Inc.

Jackson

Webber,
<£

Curtis

GOVERNORS

Francis R.
White,

Cogghill

Weld & Co.




John A. McCue
May & Gannon, Inc.

Lewis D. McDowell
Chas. A. Day
Inc.

<& Co.

Leo F. Newman
Securities
Corporation

American

Joseph F. Robbins
F.

S.

Moseley

& Co

John L.

Shea, Jr.

Shea & Co.,

Inc.

25

26

(826)

The Commercial and Financial Chronicle... Thursday, February 17, 1955

in new england
for

than 100 years

more

Estabrook & Co.
15 STATE

Boston

Boston

New York

STREET, BOSTON

Phil

Kendrick, Securities & Exchange Commission, Boston;
Purcell, Securities <& Exchange Commission, New York
City; Hal G. Hovt, Director of Securities Division, Maine,
Securities Commission, Augusta, Maine

Frank

Telephone LAfayette 3-2400

Hartford

Teletype BS-288

Poughkeepsie

Providence

Members New York and Boston Stock

& Company, Inc., New York City;
Hall, Supervisor of Securities, State of Connecticut

Alfred F. Tisch, Fitzgerald
M.

Springfield

Exchanges

Kidder, Peabody & Co.
Founded

in

1865

Members New York, Boston, Midwest and
American Stock

Exchanges

Trading markets in
New

England Bank, Utility and Industrial Stocks
75

Federal

Securities

Coppcns, Blair & Co., Incorporated, Boston;
Sheehan, Sheehan & Co., Boston

Dai

Administrators

CHICAGO

PHILADELPHIA
New
New Bedford

:

SAN

England

Newport

FRANCISCO

Branches:

Providence

:

:

Springfield

PUBLIC

PRIMARY

Ray

Teletype: BS 338

NEW YORK

:

C. White, Securities Division, State of Massachusetts,
Boston; Nicholas E. Fon Eisen, Fahnestoch & Co., Hartford.
Conn.; Simon M. Sheldon, Securities Administrator from New
Hampshire, President of the National Association of

Street, Boston

Telephone: Liberty 2-6200

Lowell

Harold

UTILITIES

:

Taunton

MARKETS
INDUSTRIALS

WITH

COMPLETE
RAILROADS
Charles Smith,

TRADING FACILITIES

BONDS

PREFERRED

•

STOCKS

Blyth
NEW YORK

BOSTON

SAN FRANCISCO

SPRINGFIELD

■

LOUISVILLE

EUREKA

■

•

•

•

DETROIT

CHICAGO




•

•

AND

INSURANCE

French, A. C. Allyn & Co., New York C:ty; Wilfred
Conary, G. H. Walker & Co., Providence, R. I.; Wilfred
Perham, Townsend, Dabney & Tyson

COMMON

•

STOCKS

Co.. Inc.

PHILADELPHIA

SACRAMENTO

John

Moors & Cabot; Bob McCook,
& Co., Philadelphia

ticcker

BANK

•

LOS ANGELES

PITTSBURGH

•

MINNEAPOLIS

FRESNO

*

SAN JOSE

•

•

SEATTLE

CLEVELAND

SPOKANE

*

PASADENA

'

PORTLAND

INDIANAPOLIS

•

OAKLAND

•

•

SAN DIEGO

Dave

Haley,

Arthur Engdahl, and Lee
Goldman, Sachs & Co.

Hallett,

all

of

Herman

J.

Keller,
all

of

Norton
Keller

N.

Keller,

Brothers

and

Harvey

Securities

Co.

L.

Keller,

Volume 181

Number 5404.

.

.

V.

The Commercial and Financial Chronicle

\

(827)

■■

TEXTILES
DEALERS..

INDUSTRIALS

.

PUBLIC UTILITIES
BANKS

INSURANCE

Hotchkin Co.

Telephone
'Duke"

Hunter,

Wellington Hunter Associates, Jersey City,
J.; Sumner Wc.lley, Coffin & Burr, Incorporated; Ed
Christian, Stroud & Company, Incorporated, Philadephia
N.

Fred

McVey, Childs, Jeffries & Thorndike, Inc.; Carl Wells,
Paine, Webber, Jackson & Curtis, Boston; Ed Hiues,
Chace, Whiteside, West & Winslow, Inc.

Dealers in

LAfayette 3-0460

Unlisted Securities

Established

1908

Cable Address
STATE

53

"Tockin"

STREET

BOSTON 9, MASS.

Pf
ImI

'

i

ili

'

.

m

JANUARY

1929

JANUARY

/

1955

Our 26th Year
Ralph Carr, Carr & Thompson, Inc., Boston; George W.
Cunningham, George W. Cunningham & Co., Westfield,
N. J.; Arthur C. Murphy, A. C. Allyn & Co., Boston

Specializing in New England Securities
Jerry

Burr, Incorporated;

Ingalls, Coffin &
.

Coffin

Harry

Crockett,

General Market Stocks

& Burr, Incorpora.ed

Bonds

9

MA¥& fiAlVJIOS™
161 DEVONSHIRE
William F. May

STREET, BOSTON, MASS.
William J. Burke, Jr.

Joseph Gannon

President

Vice-President

Treasurer

BOSTON
HU

NEW
CA

2-8360

HARTFORD

Enterprise

PORTLAND

9830
ATT

PROVIDENCE

Enterprise 9830

Enterprise 9830

Teletype

PRIMARY
James

Moynihan, J. B. Maguire & Co., Inc.; Lewis McDowell,
Chas. A. Day & Co., Inc.

Rod

YORK

6-2610

BS

568-569

MARKETS

Darling, du, Pont, Homsey & Company; Ray Doheny,
Thompson, Carr & Thompson, Inc.

Bache & Co.; William

UTILITY and INDUSTRIAL

STOCKS

NEW ENGLAND SECURITIES

-I':,'.

BOSTON
A.

M.

CORRESPONDENT

KIDDER

&

CO., NEW

YORK

'I
for

BANK and INSURANCE STOCKS

J. B. MAGUIRE & CO., INC.
31

Milk Street, Boston 9,

Massachusetts

Open-end Telephone Wire to New York
New

York—CAnal 6-1613

Bell System Teletype—BS 142

Boston—HUbbard 2-5500

Providence, R. I.—-Enterprise 2904

Hartford,
Bill Burke, May & Gannon, Inc.; Ed Knob, Drexel &
Philadelphia; James B. Maguire, J. B. Maguire & Co.,




Co.,
Inc.

F. S.

Emery, F. S. Emery & Co., Inc.; Joseph
Lerner

&

Co.

Rinaldi,

Portland, Maine—Enterprise 2904

Conn.—Enterprise 6800

27

T'
28

Jim

The Commercial and Financial Chronicle

(828)

Torpie, Tcrpie & Saltzman, New York City; Jim

...

Thursday, February 17, 1955

Concagh, Nesbitt, Thomson &
Conn.;

Co., New York City; Tom MeKa, R. F. Griggs Company, Waterbury,
A1 Pazera, R. F. Griggs Company, Waterbury, Conn.

Larkin, First Boston Corporation; Joseph Slifer, American Securities
Webber, Jackson & Curtis; Hal Murphy, Commercial & Financial
Curt Townsend, Weeden & Co.

lire,

Corporation; Jim Duffy,
Chronicle, New York;

Underwriters and Distributors

Industrial, Public Utility and
Railroad Securities

Municipal Bonds
Bank and

Insurance Stocks

Unlisted Securities

Laird, Bissell & Meeds
MEMBERS

YORK

NEW

120

AND

AMERICAN

PONT

BUILDING

WILMINGTON,
44

WHITNEY

NEW HAVEN,

EXCHANGES
Elmer

Myers, George B. Wallace & Co., New York City; Barney Bernard, Schirmer, Athcrtcr & Co.;
Woglom, Goodbody & Co.; Carroll Wi'Iiams, Laird, Bissell & Meeds, New York City;
Walter Bradley, B. W. Pizzini & Co., Inc., New York Ci.y

Bert

Bell Teletype NY 1-1248-49

Telephone HArclay 7-3500
DU

STOCK

BROADWAY, NEW YORK 5, N. Y.

LINCOLN

LIBERTY

BUILDING

PHILADELPHIA,

DEL.

AVE.

CONN.

1G0

BASLE,
SWITZERLAND

PA.

W.

BROADWAY

SALEM, N. J.

Dealers and Brokers

in

General Market Issues
James

Specializing in

E.

Sullivan, Baldwin, White & Co.; John D'Arcy, F. L. Putnam & Co., Inc.; Crandon Leahy,
Quotation Bureau; F. E. Maguire, Stroud & Company, Incorporated, Philadelphia;
Jack Christian, Janney & Co., Philadelphia

National

New England Securities

Carr & Thompson, Inc.
MILk

31

BOSTON

STREET

9, MASS.

BOSTON
HUbbard

NEW YORK

2-6442

WHitehall 3-9029

Bell System

Teletype BS 328
Gene

Hussey, First Boston Corporation; John Butler, First Boston Corporation, New York City;
Barney Nieman, Carl Marks & Co., New York City; Burt Whitcomb, Harriman
Ripley & Co.,
Incorporated, Boston; Frank Breen, Schirmer, Atherton & Co.

|9 0

4(Jp~* 51 YEARS OF SERVICE

*

Primary Markets

Chas. A. Day & Co.

Institutional Securities

Incorporated

Listed and Unlisted Bonds and Stocks

HELP

particularly of

THE

U. S. Governments

Municipals

Public Utilities
/

New

England Corporations
Retail Department
with Distribution in New England

Equipment Trusts
Preferred Stocks

Canadians
Bank

and Financial Institutions

a

Railroads

RED

Inquiries invited from Dealers

Maintaining

Industrials

Finance

Acceptances

Salomon Bros.

&

Members New York Stock




Exchanger

Hutzler
Exchange

Sixty Wall Street, New York 5, N.Y,

WASHINGTON AT COURT STREET
Member Boston Stock

Paper

CROSS

Boston

Philadelphia

Cleveland

Chicago

San Francisco

^Volume 181

Number 5404

...

(829)

The Commercial and Financial Chronicle

29

F. S. MOSELEY & CO.
ESTABLISHED

1879

MEMBERS
New York Slock Exchange

American Stock Exchange

Boston Slock Exchange

Midwest Stock Exchange

Underwriters and Distributors of
CORPORATE

MUNICIPAL

AND

SECURITIES
Dick

Chamberlain, A. E. Ames & Co., Inc.; Tom Jones, Keystone Company cf Bcston; Chas.
Bruggeman, Dean Witter & Co., New York City; A. H. Monsen,
Keystone Company of
Boston; Reginald M. Whitcomb, Spencer Trash & Co.

COMMERCIAL

BOSTON

•

NEW YORK

CHICAGO

•

SPRINGFIELD

•

PAPER

INDIANAPOLIS

•

•

WORCESTER

PHILADELPHIA

White, Weld & Co.
Members

111

of the New York Stock Exchange

Devonshire Street,

Boston 9

We maintain active markets
in securities

Natural Qas
A.

of

Companies

A.

GeBer, Alien & Company, New York City; Bob Torpie, J. C. Bradford <£ Co., New York City;
Harry Woollard, Coburn & Middlebrooh, Incorporated, Boston; Eddie Opper, J. B. Maguire <£ Co.,
Inc.; Francis Cogghill, White, Weld & Co.

New

York
Los

New

Haven

Philadelphia

Chicago

San Francisco

Angeles

Providence

Minneapolis

Hagerstown

Amsterdam

London

1

■

=

Investment Bonds and Stocks

Philip

Rearick, New
J.

B.

York Hanseatic Corporation; Thomas Noonan, R. L. Day & Co.; John
Co., Inc.; Dick Grimm, New York Hanseatic Corporation;
Hart, New York Hanseatic Corporation, New York

Daley,

Maguire <fi
Maurice

Securities of the United States Government
and its Instrumentalities

State, Municipal and Revenue Securities
Bonds, Preferred and Common Stocks of Industrial,
Public

Utility and Railroad Corporations

Bank and Insurance

Company Stocks

Bankers' Acceptances

Securities of the International Bank for
Reconstruction and

Canadian Bonds

Underwriter
New York
Philadelphia
Don

Wilfred N. Day, Chas. A. Day & Co. Inc.; Wallace L,
Company, Providence, R. I.; Joe Gannon, May & Gannon, Inc.;
John Maguire, May A Gannon, Inc.

Homsey, du Pont, Homsey & Company;

Mossop, Barrett &




•

Development

Foreign Dollar Bonds

Distributor

•

Boston

Pittsburgh

Cleveland

•

Dealer
Chicago

San Francisco

30

The Commercial and Financial Chronicle

(830)

...

Thursday, February 17, 1955

Minot, Kendall & Co., Inc.
established

MEMBER

New

BOSTON

EXCHANGE

England Securities
15

CONGRESS

BOSTON
La

1921

STOCK

9,

3-41 30

ST.

MASS.
Teletype

BS

221

Providence

Worcester

Jerry McCue, G. H. Walker & Co., Providence, R. I.; Ray Coppens, Blair & Co. Incorporated, Boston;
N. Irving Maxfield, Cohu & Co., New York City; John Hudson,
Thayer, Baker & Co., Philadelphia

RHODE ISLAND SECURITIES
Our

Trading Department Invites Your Inquiries
On All Rhode Island Securities

Open-end Phone to Boston

—

Lafayette 3-0610

G. H. WALKER & CO.
1900

Established
members
new

york

15

WESTMINSTER

midwest

&

american

stock

stock

exchanges

exchange

ST.

(assoc.)

PROVIDENCE

3,

R.

1.
Joe

Telephone

UNion

1-4000

Bell

direct
new

york,

st.

louis,
and

private

wires

bridgeport,

white

plains

Teletype

PR

43

Dorsey, Bache & Co., New York City; Lou.Walker, National Quotation Bureau, New York City;
Joseph Smith, Newburger & Co., Philadelphia; Lowell Warren, Dominion Securities Corporation

to

hartford,

waterbury

offices

UNDERWRITERS, BROKERS and DEALERS
(

distributing
CORPORATE and MUNICIPAL SECURITIES

since 1886
Elmer

Myers, George B. Wallace & Co., New York City; Irving LeBeau, May & Gannon, Inc.; Harold
Scattergood, Boenning & Co., Philadelphia; John A. McCue, May & Gannon, Inc.

W. E. HUTTON & CO.
Members New York Stock

and other

Exchange

leading exchanges

NEW YORK

CINCINNATI

Philadelphia
Burlington, Vt.

Baltimore

Columbus, 0.

Hartford, Conn.

Lewiston, Me.

Boston

Dayton, 0.

Easton, Pa.

Lexington, Ky.

Portland, Me.

Townsend, Dabney and Tyson
ESTABLISHED
Members New

1887

York and Boston Stock Exchanges

Tom

Associate Members American Stock Exchange

Brown, W. E. Hutton & Co., New York City; Peter Burnett, Minot, Kendall & Co., Inc.;

Gilbert Lothrop, W. E. Hutton <ft

Co., Boston; Pete Cline, W. E. Hutton & Co., New York City

30 STATE STREET, BOSTON 5

Dealers in

New

England

Corporate and Municipal
Securities

New York

Telephone CAnal 6-1540

Teletype BS-346 for Trading Dept.

BS-430 for Municipal Dept.

Branches!

Portland, Me.

Lewiston, Me,

Greenfield, Mass.

Augusta, Me.

Lawrence, Mass.




Bangor, Me.

Keene, N. H.

Fitchburg, Mass.
Manchester, N. H.
A1

Dykes, du Pont, Hbmsey & Compariyr Frank- Walters-, Cosg'robe,■•Miller -& >Whi*eh("*dt N*w York
City; Rodney Kent, R. W. Presspriek-dt^Coi; •,Walter-Johns<hv6. A. Saxton & Co., New York

Volume 181

Number 5404

...

(831)

The Commercial and Financial Chronicle

Coffin & Burr
Incorporated

Founded 1898

Trading Markets in

New England Securities
BOSTON
BANGOR

HARTFORD

PORTLAND

NEW YORK

MEMBERS

Midwest Stock Exchange

Stock Exchange

Boston

American Stock Exchange
M.ke

Growney, Joseph McManus & Co., New Ycrk City; Bert Pike. Troste*. Singer
City; Frank Laird, Stroud & Company, Incorporated, Philadelphia; Bob
Stroud

&

Company, Incorporated,

(Associate)

& Co., New York
Greene,

Philadelphia

PRIMARY TRADING MARKETS IN

UNLISTED SECURITIES
Direct

Telephone to
Trading

Canadian

our

Domestic and

Departments

in

New

York

GOODBODY & CO.
Established

1891

Members
New

Stock

York

American

York Cotton Exchange
Chicago Board of Trade

New

Exchange

Stock

Exchange
Stock

Midwest

Exchange

principal Stock and Commodity Exchanges

and other

140 FEDERAL STREET, BOSTON 10, MASS.

Teletype BS 189

Telephone HUbbard 2-9070
Edward F. Powers,

Coggeshall

&

Hodgdon & Co.; Leo Newman, American Securities Corporation; J. William Kumm,
New York City; John C. Mathis, Jr., American Securities Corporation

Direct New

York to Boston

Hicks,

Telephone BArclay 7-0183

■TZS&t&r U"

Underwriters, Dealers and Brokers
State and

Municipal

Corporate Bonds
and Stocks

Bonds

Retail Distribution in New

York Hanseatic Corporation, New York City; Charles A. Bodie, Stein
Boyce, Baltimore, Md.; James J. Lynch, Paul D. Sheeline & Co.; Leslie Swan,
Charles W. Scranton & Co., Naw1 Haven

Frank Ronan, New

England

Bros. &

Chace, Whiteside, West & Winslow
INCORPORATED
/

"

;

24

Federal

Street, Boston 10

Phoenix Bank

New

Bldg., Providence 3

England Markets
Underwriters and Distributors

Laurence

Frazier, Laurence

York;

Harry L.

Frazier & Co., New York; Ed Kelly, Carl M. Lceb, Rhoades & Co., New
Arnold, Goldman, Sachs & Co., New York City; Joe Krasowlcli,
Bonner & Gregory, New York City

Secondary Distributions
•

•

Banks

and

Insurance

Industrials

Inactive

—

Stocks

Utilities

Securities

F. L. PUTNAM & COMPANY, INC.
Member

77 Franklin
Tel.

Boston

Stock Exchange

Street, Boston 10, Mass.

Liberty 2-2340

Teletype BS 497

Hospital Trust Bldg., Providence, R. I.
James A. Kelly, Tifft

City;




Brothers, Springfield, Mass.; Carroll Williams, Laird, Bissell & Meeas, New York
Wm. E. Creamer, Schirmer, Atherton & Co.; Walter F. Saunders,
Dominion Securities Corporation, New York City

31

32

The Commercial and Financial Chronicle

(832)

...

Thursday, February 17, 1955

Specializing in
New Hampshire

Maine

Stylon

Massachusetts

Vermont

Bank Stocks

Kopp Scientific

Firm Markets

Reeves Soundcraft

Cinerama, Inc.
Cons.

Estey Organ

Power

Elco

Corp.

Southwestern States Tel.

Rendering

Condenser &

Electronics Corp.

Paul D. Sheeline & Co.
31

Suntide Refining

Calvin

Clayton,
New

Clayton Securities Corp.; Gordon Davis, Vilas &
City; Henry Tabb, Townsend, Dabney & Tyson;
Wilfred N. Day, Cbas. A. Day & Co. inc.

Hickey,

MILK

STREET, BOSTON 9, MASS.

Teletype BS-51

Telephone HAncock 6-0170

York

Pubco

McCOY & WILLARD

Development Co. Inc.

Investment Securities

30

FEDERAL

ST.,

HUbbard
A.

T.

T.

&

BOSTON

Report

on

request

2-3790

Teletype

—-

Boston

128

Hodgdon & Co
19

State

Street, Boston 9, Mass.

Telephone CApitol 7-4235

Walter Swift,

Co.;

Kidder, Peabody & Co., Boston;
Haigney, Dayton Haigney &

Dayton

State

Street

I rust

Henry Griff n, A. C. A'.lyn &
Co., Inc.; Elliott Gerrisn,

Company

Underwriters, Dealers and Brokers

State and

Corporate Bonds

Municipal

and Stocks

Bonds

Retail Distribution in New

England

Clayton Securities Corporation
Members

79

Milk

Midwest

HUbbard

Specialists in

PORTLAND,

OVER-THE-

Galvin, F. L. Putnam & Co., Inc.; Frank Harrington, H. D. Knox
Co., Inc.; Bill MacDonald, McCoy & Willard; John V. Chapman,
Chapman & Co. Inc.

Exchange

2-6065

WELLESLEY, MASS.

ME.
Bell

James

Stock

Street, Boston 9, Mass.

System Teletype BS 30

&

COUNTER
KELLER BROTHERS

SECURITIES

CO
now

located at

ZERO COURT STREET
BOSTON 9, MASS.
TELEPHONE RICHMOND
TELETYPE

H. D. KNOX & CO.
INC.

Fred

2-2530

BS 630

Harson, F. L. Harson & Co., Providence, R. I.; Ed Williams, HooperKimball, Inc.; Louis Zucchelli, J. B. Maguire & Co., Inc.; Sheldon
Meisenberg, Ira Haupt & Co., New York City

Members
New

York

27

Security Dealers Ass'n

STATE

BOSTON

DIRECT

System
WIRE

Bachman-Uxbridge Co.

9

Telephone CApitol
Bell

Trading Markets in

STREET

Crompton & Knowles Loom Works

7-8950

Teletype BS
BETWEEN

169

Collyer Insulated Wire Co.

OFFICES

Bird &
11

Son, inc.

BROADWAY

NEW

YORK

Telephone DIgby

4

duPONT, NOMSEY &■ COMPANY

4-13S8

Members
Bell System

New

York

and

Boston

Stock

Exchanges

Teletype NY 1-86




31 Milk Street, Boston
Telephone HAncock 6-8200
Walter Weldon,

Boston Herald; Fred Moore, New York Hanseatic

Corporation; Frank Doyle, National Association of Securities
Dealers; Vic Dugal, J. B. Maguire & Co., Inc.

9, Mass.

Teletype BS 424

Number 5404

Volume 181

.

..

The Commercial and Financial

Chronicle
they are interested and use the
telephone to inquire as to their
The

welfare.

who

man

takes

LETTER TO EDITOR:

More

only do more business with them

By JOHN BUTTON

The "In Between" Calls
there is anything else you can
do for him. Offer him quotations,

Convertibility Means"
S. G.

Chubb, of A. F. Francis & Co., Ltd., Toronto, Investment
Securities, points out neither the gold nor any other standard
operates in a vacuum, and under the economies of the leading
countries today it is one question of
returning to convertible

clients from friendly, loyal,
who have done well
they have made the first sale or suggestions for further
invest- with you. The investment busitwo, their interest is turned to ment, statistical reports, or just ness is not, and should not be a
some other prospect and off they
find out the state of his health, "one sale" proposition. Start to
go chasing what they think are Show your interest in others by sell AFTER YOU HAVE MADE
greener
pastures.
Someone re- taking notes of things in which SALE NUMBER ONE.
Many salesmen work like beavto open an account, then after

ers

as

new

customers

firm

critically

and

service, of new

to
The

me

in

the

known,

next

decade

anything

surpass

will

previously

achievement

of

the

of

Co., predicted,

Board

(N.

Feb.

on

they put my name on their
books something happened.
Al¬

and

Trust

J.)

8

forum

a

ducted

pleasant likable fellow, I have to
call him now when I want some¬

American

thing in the way of service or in¬
I guess he's out look¬

business
—

I

different

is

Mrs.

than

thought

that

always

customer
was
your
best
but it doesn't seem so
far as my experience goes with

prospect

this broker."

When

Sale

first

he

order

like

"I

his

customer gives you

a

to

you,

I will

I believe

and

you

saying

is

this transaction, but

benefit from

show me."
That is the sort of thinking that
the rest is up to you

is

going

he is

—

Each man knows

pie is the same.

nth^r npunlp

who rnnlrJ

also

other people who could also
be your clients.
Don't overlook
the fact that it is what you do and
munv

many

mms

fSL^SJSn^SSL
Order
that
either
tnat will
will eirner

convince
convinc

praer

him

that

hi? investment
will cause him to look

you

advisor, or

are

somewhere else^

"

Several months a-geiavaaild

t

of

told

into

came

man

he had

me

a

small amount of

He said he

funds for investment.
wanted

sort

office and

my

buy some A. T. & T.
and asked me what I

to

common

of

him

if

as

had

he

been

and, I forgot the incident:^Just the
day he reappeared and-he

W§Ils,

which he laid orrmy- desk. He told
had

he

me

because

him

treat

"In

Roebling

G.

Mary

nublic

h??/£'

back to

met

see

right.

.

,

told tme tha^fre-.was sending*

-fairly substantial-sum that
was
llivebieu
invested
in
111
low
luw
yielding,
.yacuuxjg,
fixed-income securities, and government bortds^and when he re«

«

■.

■

ceived these funds he wantdd"
Tto

handle

*

.

you^re

where

be

that

certain

self

to

only
you

,

,

matorafues.
mayoralties,

Government,
Government,

directorship of the

^"mstresses directorships^ol the

V- S.

Mint, and many others

Tracing women's progress over
the centuries of the Christian era,
Mrs. Roebling declared: "Women
have entered this

Call

and

on

new

atomic

see

tomer

age

tunities

that. will

appre-

places

able to

men.

"Engineers

Physi-

arcnitects>

^g,ers'

.

nhvsi

cists, chemists and other scientific
experts
have

are

Miss

to

Ranson

Harris

Trust
xluai

issued.

ever

likely

as

not

as

before

Mrs.

or

ii

that

THINKING OF HIM.

you

Follow

sale.

n^w

YOU

up

cus-

v.uo-

ARE

Ask him if




try

on the
of the debtor coun-

reserves

be

must

rate

count

stemmed

"at

the

risk

and

by

To

*

;n

rhot

^ba^

familir

normal

a

tn<a

mnn

man

ily unit.
her

T

say

that

kolico

cHll

nno/4

cnmim

fv»r\

sb°uld head the fam-

The

historic

woman

place

household

of

going to

the

as

illness,

their

The

New

Brokers

York,

Club

Square

Inc.,

hold

will

Masonic Temple Bldg., Room

welcome. An

entertaining

interesting and
has

evening

present-

resul*. Failure in that regard
would brin6 Breat misery, would
WGaben the democratic bases of
our society where they are strong

ought to show, too,
establishment; of a gold
not only appears within

Shull

Mr.

that

the

standard

the

possibility—almost

of

range

but that of

anythinS is possible
probability as well.
I

-,H

;

,

-

with Mr. Bauer that it
as involved
a subject
as

agree

"is

not

labyrinth of words would make
it appear," but I think it is far
more complicated than Mr. Shull's

a

rp^rvp^

the

t

.

Shull's

Mr.

far

a

model

•

r

in

its

for

u

simpler world

in which

one

,

might work

i

functioning

proper

the

than

It requires

live.

we

free

•

„I1T.

__

to open our minds on

continue

v

.

„

a

question about which it is difficult not to be assertive and dog-

a

an

Eden,

in

Sergio

J.

Calif.

.BARBARA,

Tosi

is

engaging

Program
Despite
10-year,

Carrillo

17

under the
*

firm

on

in

in

King Street West,
Toronto 1, Ontario, Canada,
Feb. 8, 1955.

Interest Rale Level Held Negligible

$101

National
analysis of
project indicates that the fi¬
nancing can be "taken in stride,"
Committee

on

a

an

the

—

a

name

that

hot

more

than

of Federal highway

$2J/2

billion

financing

would come to market in any one
year
jcai

Federal National Mortgage Association and the Commodity Credit

Corporation,

1

Barbara.

n

With D. N. Silverman
(Special to The Financial Chronicle)

declare
NEW

ORLEANS, La.—Lorraine

Girard

have

N.

been

and
added

Silverman

Royal
to

Co.,

B.

the

Kraft

staff

Inc.,

of

Shell

leaning-

i

_

be

upset

i

by

the

fi-

in

a

special

study

just

made available to those interested.

Contrary to some opinions ex¬

the time of the pro¬
posal, the Nuveen conclusion is
that the project can be carried out
pressed

"with

(Special to The Financial Chronicle)

the march and

a

not

nancing, John Nuveen & Co., 135
S. La Salle
St., Chicago 3, 111.,
underwriters of municipal bonds,

'nomal'

at

little

disturbance

financing

pace

to

to

the

which

the nation has become accustomed

taxable

fully

it is likely
the
specified, says the
for and

report

calls

that

will take

10

it

years

longer than

Nuveen study.

and that the established inanui uiai uic totawxxom-u

would

with

Federal highway corporation
bonds guaranteed by the Treasury.
But the program probably could
not be initiated as quickly as the

As

/\s

for
lor

of The Trust Deed Mart of Santa terest rate level of recent years Federal
*
11

the

F. Francis & Co., Ltd.

A.

?

66

But

magnitude of the
billion national

the

Highway Program,

securities business from offices at
■**

world

a

re¬

Impact of $100 Billion National Highway Biding

visory

Trust Deed Mart Formed
SANTA

a

which

echo in many hearts.

realizable

it

^lament

a

CHUBB,:

and Treasurer,

"crie du coeur" for

to

G.

Vice-President, Secretary

;

program proposed to the Presidenfby His Ad-

With Founders Mutual
on

would work

under

exoerience what

°been highway building

planned.

post.
are

well

of

its

regular monthly meeting on Fri-

arbiter

in time of

nurse

emotional

reasonably

of ^molovme^it
the climate of employment. In the
e
p
e Pl0yment.
present state of affairs we all
Today, matters would probably Know which of these would be
be worse since the economies of neglected—no matter how regretall the leading countries are fuuy—at a pinch.
clogged by rigidities of all sorts—
Th_r_,nr_
T
„idp
with
Mr
wages fixed by contract, pricefheietore, 1 s e
.
fixing and resale price mainte- Heatherington when he says that
nance, tariffs and their punitive it all "depends on whether the
applications by local officials, to WOrld is ready." I hope that both
a
mention only - ie™\
" ~
he, Mr. Shull and Mr. Bauer, will

is

is entitled to

expenditures,

full gold standard

or

brief comments suggest. It is not
exclusively an economic or finanJ"
ciai question but involves a rec-,
ostasnS'onciliation of promises to redeem
wp/p nrntPrtpH it on demand with responsibility for

f

?ke expense

finds

(Special to Tme Financial Chronicle)

being called 'old-

am

appro-

market

open

can°mean° EvenTn

It is

;

of

fashioned,' I

by

operations

turn

Club
Hold Meeting

to

their

longer

over a

future.

Building.

telephone after

equilibrium

been

Brokers Square

velopment, their

it that your new

knows

brightest

'.'In family life," she continued,

"Women

the

gold

various

only avail- 710, 71 West 23rd St., New York
City. Masons in good standing are

architects

demonstrate

.

0311 capably fill which were
as

exports

the short term,

over

day, Feb. 18, 1955, at 7:30 p.m., at

formerly considered

should

return to either the bullion

a

B™kl.cl™n °f.the trade and perfect competition, matic.
rviot. Pr^rYYittoo"
.a® ai;a
competinon,
Bond Crier Committee promises neither of which exist today or is
SIDNEY
likely #n exist
th,;t the 1955 edition will be the 1iIrp1v. to pviBt in the immediate
thp imlT;pdialp

D.

your-

equating

*

them

to

come

M

ing and spiritual and physical de-

expose

,

the

made

have

Chairmen of the

municJipal

James

anything, fully prepared to take advantage of oppor-

can

you

is to never
possibility that the
other fellow is IMPORTANT, not
only as a possible client but as a

have

following

as

cal Corn Exchange Bank; Myles
G. Walsh, Blyth & Co., Inc.;
Robert M. Goodwin, National City
Bank, and William P. McKay, The
Blue List> compose a Chairman
committee.

ready. for

the

human being.

has been appointed
Chairman of the outing

M.

way

opportunities

overlook

week-end.

°ne of the hiShBghts of the

DOSfm;S4:resges

that

fixed

the

about

weak.;

viewpoint it

Kubn> term, the resulting drain

ummpi hl y^L,iht

nf

in-

an

all.

of

for

imports

is not in

Field Day will be the appearance
of "The Daily Bond Crier," -the

Mrs

have

but when the balance of payments

inc.,

to^d" bus L ^efon of education of children,
the leadership of their up-bring-

going

the

ness—but

for

reinvestment

the

me

the

over

device

a

and

Roe-

service"

"nnnroni'a+,™

given names."

for-a

4nderseP>

livelihoods

^

townsh^p^offiees to ambassadorlj
Cabinet nosts in the Fed-

first

good.

West¬

ability of WOmen has brought humerous journal of activities in
LIimorn,lt, ^rmrnol
nf oofiwi+ioo
£em appointments :rangmg from the
bond fratemity.

era?
eral

nations

of

Wells, Jr., Andrews & priate manipulation of the dis-

the

and

named

panel

coin

aV

knjaression had been
Much toi my surprise he

My
also

come

he believed that I would

9;

general

ington, D. C.; E. Roberta Durham,
Consumer Credit
Department,
First National Bank of Chicago;
and Mr. Harold E. Randall, VicePresident, First National Bank of
Boston, who served as Moderator,

other

had two small checks in his hand

the

at

is

Co., President of the club,

iTra(r

«r*

a

large investor instead of an oddlot buyer of Telephone.
He left

held

be

announced

in

I gave him consid- because of society's fuller
time and was.just as pleas-- datlon of the muUitude o{

to

ant

will

'
Loeb &

thought of it.
erable

Bond

r

Roebling

mine*

the

Shull

Mr.

gold

their currencies in

From the economic

discussion of "New Horizons for committees to assist him: arrangeWomen" were Helen R. Feil, Per- ments, Gilbert White, R. D. White
sonnel Director, Book-of-the- & Company; sports, William H.
Month
Club,
New York
City; Urell, F. S. Smithers & Co.; prizes,
Daphne Robert Leeds, Assistant Richard N. Rand, Rand & Co.; fiCommissioner of Patents, Wash- nance, William H. Mears, Chemi-

Even if

in his mind.

on

small account, the princi-

a

outing of the
Club
of
New

Country Club and Beach
Club, Rye, N. Y. on Friday, June

In¬

e

the

in

your

Don't Stop After the First

t

u

the

attraction

Unfortunately
this
does
not
take matters far enough. Neither
the gold nor any other standard

chester

Joining with

—or

ment

York

Newark, N. J.

ing for more profitable customers
could it be that the invest¬

best."'

annual

Municipal

County

Banking

formation.

others

at

22nd

Chapter,
st i t

All

do is to fix

and

con¬

Essex

the

services

revolve

to

Municipal Bond Club operates in
It is
AnilUal Out'g JllltG 18'sbumGI1'' Which affects the lives and ^ cr ush them where they are
; The

by the

though I still hear from the same
salesman occasionally and he's a

of

model

has

a vacuum.

'

investment ^through

price of one?

Shull's1

and

price

the

terms of specific weights of gold, day conditions. And he should
guarantee to redeem them on that show, as perhaps he can, that no
basis, and all will be well.
large-scale unemployment would

in

and

Chairman

After I made my
them

•

that

made

to

business, science
and
the
professions,
with
no
apologies, seeking no favors and

Trenton

top service.

com-

goods

simplicity.

Mrs. Mary G. Roebling, determined to do her

President

pressed that here was a firm that
wanted my business and would
show: its appreciation by giving
first

desirable

Is it ever*
of all
should
be

employment at home?

Bauer's

Heatherington's

Mr.

Ambassadorships and Cabinet posts.

gains that will be made by

women

regularly.
Their
salesman telephoned me
whence
had information he thought might
be of interest to me.
I was im¬
to

.

great interest

and

upon-Mr.

standard

me.

tive investment opportunities were
mailed

i

ity Means."

Mary G. Roebling, Chairman and President of the Trenton
Trust Company, says appreciation of the availability of women
has brought them appointments ranging from township offices

Offers of
issues, of attrac-

to

sent

•

v

Financial which governmentsabroad but of
must think
not only of credit

articles about "What Convertibil¬

Mrs.

they could know, but afterward I
was the forgotten man.
Before I
became a customer their mail was
regularly

with

Shull's

ments

a

r

have read

Messrs.

Sharp Increase in Women Executives Forecast

marked, "Until they had my first
you would have thought I
was
the
most
important person

as

unronicie.

I

re¬

order

me

UhilSJ?

first time customer of an in¬

a

vestment

and another question to maintain it in operation.

currency

r„

experience

his

mentioned

cently

"What

on

time goes on,

but he can count
on their loyalty as well.
Not only
will you build small accounts into
larger ones by following this pro¬
cedure, but you can also obtain

as

^fTTrafl'

an

his customers will not

-interest in

Securities Salesman's Corner

33

(833)

pj^es

the
uie

.

program on

over

>

..

of the hew
ui u1c new

impact
lllipacl

present turnht
,

,%

the country, the Nu-

report says that all of "them
likely would be included in the
veep

proposed

national system

of inr>'

highways. All turnpikes,
adds,
have
been
conceived,

terstate
it

and

planned
careful

and

of traffic
'While

all

fit

built

based

upon

scientific conclusions

density and use.

present turnipkes would
proposed network

into the

very
well, it seems likely that
planning for many future projects
.

.

of this type may be deferred until
a better idea can be secured as
Founders Mutual Depositor Cor- nanced, following the pattern of to just how the Federal program
part in today's woman who cour- p0ration, First National Bank other Federal agencies, such as will fare with Congress and how
ageously enters
new
fields of Building.
the public housing authorities, the soon it can get underway.
the

pioneering

grandmothers

spirit

finds

of

its

,

their

counter-

K.

DENVER, Colo.—Mrs. Florence
Lawrie has joined the staff of

in recent years." Actually, it adds,
the program probably will be fi-

34

The Commercial and Financial Chronicle... Thursday,

(834)

Electric Utilities Sold

INCOME

SERIES
in

over

hold

CurrenUy invested

stocks, selected

pos¬

sibilities.

For

and

tributors

pri¬

marily for income

integrated

a

tional

Association

SECURITIES

&

CORPORATION

Established 1930

Broadway,

New

of

New York

5,

York

followers

the

the

in

ATOMIC SCIENCE
through

a

this

of

the

over

last

half

designed to provide

Power,

Du-

Light and Gulf States Util¬

small

offsetting
Duquesne, but in
Ohio

resulting

from Atomic Science.

acquisitions
the

of

none

UOHIC DEVELOPMENT SECURITIES CO.
U»3 THIRTIETH STREET, N. W.

WASHINGTON 7. D. C

ings

and

which

along

in

decreased

a

sold, each by four trusts,
Ohio

were

Edison

Public

and

Service of

Colorado, liquidation of
the former equaling 16,000 shares
and of the Colorado utility, 24,700
shares.
Three managements each
commitments in Amer¬

ican

and

Gas

Electric, Common¬
Edison, Consolidated E'di-

wealth

of

New

Iowa-Illinois
Gas and Electric and Kansas City
Power and Light.
Pairs of sales
son

made

York,

Minnesota

in

Power

and

Light, New York State Elec¬

tric

and

Gas, Oklahoma

Electric

Gas and

Electric

Union

and

The

of

those

of

ever,

Republic

Telephone

of

Favorites

Telephone,

not

course

issue,

a

although
and

power

light

the utility favorite,

was

the

as

quarter of 1954.
investment companies pur¬

Four

chased

last

total

a

half of these

of

20,800

shares,
making initial com¬

mitments. International Telephone
and

Telegraph,

ests

of

which

the varied inter¬
might cause some

to

question
its
being
with the utilities, was
three

National Distributor

trusts.

15,000

shares,

Incorporated

Power

and

cently

was

grouped

liked

Purchases
one

acquisition.

new

Coffin & Burr

by

equaled

representing a
Puget Sound

Light, which

very

re¬

admitted to trading on

the Big Board and had been

Founded 1898

a

top

fund favorite for the previous half

BOSTON

the

the

pre¬

third

States Steel
this

quarter. How¬
nosed out United

the top

as

favorite in
investment

Thirteen

group.

managements purchased a total of
56,100 shares of Republic, half a

making
full

A

commit¬

initial

trusts

dozen

were

year,

A

was

like

added to two portfolios.

number

of

ward C. Johnson 2nd's annual

port

to

shareholders

"In

HARTFORD

•

BANGOR

business

has

been

1953-4,
de¬

The

advanced

by

thought
and

some,

Refractories,

a

United

and

States

and
Outside of four sales in

Foundry.

Pipe

Bethlehem

nomic disturbances

likely to be
inventory readjust¬
ment type of trouble.
We confess
to
being skeptical of any .such
assumption. We suspect that, due
to
the
dynamic nature of our
economy
and
the
enthusiastic
are

limited to this

nature

of

(including

people

our

businessmen) overbuilding of
capital facilities- will take place
our

as

in

financial structures

or

which

Ten

stress.

a

business

be

may

or

be

of

war

liqui¬

after the

so

in

our

activity, now
in order."

apparent,

Douglas T. Johnston, President
the Fund
bearing his name,
in

states

his

acquired

Auto

earlier in

as

1954.

shares

(specfically General
auto parts, machin¬
ery, paper and natural gas issues
also
retained
their approximate
previous ranking as management
preferences.
The food and bank
Motors)

stocks

and

ranking
purchases during

stock

common

this

the only top

were

final

1954

modicum

some

cellar

storm

the

event

versed

providing

period,
of

traditional

protection

economic

annual

to

message

machine

re¬

gears.

rants

its

having

entire

value

a

assets.

In

war¬

8.7%

of

of

spite of this

general

picture,
discriminating
profit-taking appeared scattered
among

our

management

transactions.

(a)

the excessive speculation and

abuse

of

from

over-confidence,

the

credit

/'

maintained."

be

And in similar vein the trustees
New

Fund

England

report:.

senior se-:
for about 33%,

"Holdings of cash and
accounted

curities

England Fund's total net

New

of

throughout 1954, and com¬

assets

While-

stocks for about 67%.

mon

business

are:

existing -cur-#'

under

appropriate
rent

proportions

these

believe

we

and

market

condi->

tions, especially since investment
income is one of the threefold ob¬

statement:

"The

securities

ment

fund

of

caution."
manage¬

executives.

state:

"While

nomic

the

structure

Trust

Trustees
of

Boston

underlying

eco¬

sound,

appears

justifying investment in carefully
selected equities, consideration
should be

the

given to solidifying the
gains recorded in
Trust's
investments
by the

substantial

of

a

to

ident

of

Line

Value

Fund,

whe

states

unhesitatingly in his com¬
pany's annual report: "For some
time
past, your Managers have
been of the opinion that stocks in
general were priced too high.
They have, accordingly, carried a
strongly defensive position.
The
advantage of the defensive posi¬
tion will be revealed only if the
in

stocks

for

market

general

should

readjust to a lower level in
relation
to
earnings
and
divi¬
dends."

Off-the-Beaten-Path
Mr.

Bernhard, however, is not
interestingly dif¬

loath to invest in

situations

ferent

the

in

common

stock portion

of his portfolio.
In
1954
quarter,
Hycon

the

with

Shareholders

of

finally it is of interest to
Arnold Bernhard, Pres¬

And
listen

Manufacturing and Official Films,

policy to the current market
are
presented
by several

other

move

sharply."

up

(b)

conform

to

to'

our

management

markets

Proposals

prices continue

stock

of

Fund continues to watch the

your

if

and

state

foreign affairs." And Kenneth S.
Van Strum, President of Bowline
Fund, notes in his annual

restoration

pur¬

stem

may

Green

chases of the airlines.

stepped-up

which

unpredictable

contrast

the

stock values

subject to interruption due to

17,600 shares

to

should

and

progress

common

are

risks

Tri-Continental

...

the trend of

the

in

One management retained in its

portfolio

vestment

Electric

and

years

major

bought 19.250 shares of San Diego

managements

jnust

economic

be

level,-and under the circum-,
it appears to
us that a
investment policy

low

power,-

reared

are

both

to

posi¬

past; and such over¬
jectives of the Fund and of many
eventually is balanced shareholders, we may decide to;
by subsequent underbuilding.^ increase
your Fund's holdings of'
Moreover, in boom times many' senior issues for
capital stability;
unsound business and government
and for reserve purchasing

necessary

and

fairly heavy stock

the

uously light.
oils

a

would, we think, be justified.
However, the market is not at a

building

formulating in¬
policy
it is still
to bear in .mind that

the

level,
tion

present from the past, future eco-/ of

Shareholders: "In

to

part of the year, and we do not
anticipate a serious drop later on.
If the market were at a lower

vices supposed to differentiate the

totaling 8,500 shares,
selling in the group was conspic¬
addition

activity will rise during the fore¬

stances

couple each of Jones and Laugh-

lin

Harry H. Hagey, Jr.,
believe
business

"We

conservative

history,
Steel, which aroused
and following
a
long period of
only very slight trust interest in,
the September quarter, currently business boom, a period of im¬
portant economic difficulties has
was newly acquired by four funds
occurred.
Therefore,
an
and added to the holdings of three often
careful
look
at
the
others.
Four purchases each were especially
of the increasing
made of Allegheny Ludlum and underpinnings
Walker

„

ceptance,
that
due
to
'built-in
safeguards' and other modern de¬

end of

three of Inland and Wheeling, and

income-bearing securities."
*■
>
Stein Roe and Farnham Fund's

is apparently gaining in public ac¬

the

Carolina

and

recessions

over-accumulation.

For example, plane manufacturers
were sold
which was in marked

South

1949

re¬

Fidelity

veloped stemming mainly, it would
seem, from temporary inventory

of

PORTLAND

both

of

dated under general conditions of

Harbison

new

President,

portion of Ed¬

a

preserved

National

by

observes:

read

us

Gas and Electric and

NEW YORK

which

managements,

by nine funds, acquisitions of the

In

Two

during

1931

continued

of

steels, rails and metals continued
American

ORGANIZED

Oils

status

three months' period, but
offsetting profit-taking increased
substantially. Steels also retained
their second ranking position in
fund management's esteem, in fact
purchases
increased
25%
over

Missouri.

Fund

favorite

man¬

cur¬

former equaling 27,100 shares and
of the latter, 43,600 shares.

fourth.

Sales totaled 38,300 shares.

were

New England

over-all group

company

balance.

on

California

decreased
$n THE FAGS AND FREE PROSPECTUS

during the final
an

investment

bought issue in the group during;* still interested in Big Steel, addi¬
the
previous 1954 quarter, was tions totaling 54,800 shares. Armco
now
eliminated from three port¬ and Bethlehem were each bought

Also

companies participating

sold

light

and

power

quarter, on

Edison, dozen
had been the second most heavily ments.

variety of

in activities

Electric,

Southern

folios

managed investment

Holdings

vious

Mohawk

lightened in the largest
number of fund portfolios.
Five
managements sold 49,000 shares of
Niagara, 32,820 of Duquesne and
14,825 of Gulf States. There were

with

Inc.

1954

the

were

basis

dozen

were

ern

FUND,

Although
issues

in

obscure the

expressed by several

lines

tion of

First let

Fund:

their

of

ATOMIC DEVELOPMENT

Increase

be made along these
investing a larger por¬
funds, as they become
available to the Trust, in fixed-;
progress can

of

should be also weighed along with
the actual portfolio transactions.

minor

regular

other issues. Columbus and South¬

a

were

agements added to portfolio hold¬

two

MUTUAL FUND.

in

Power

and

ently

quesne

•

Vir¬

Utilities, and

quarterly survey of
fund
portfolio operations, these
had been acquired quite consist¬

ities

is

Association,

the exercise of rights.

Overall

Na¬

"Chronicle"

Niagara

MUTUAL

South

Electric

aided by

Investment

years.

invest

ginia

As is well known by

Companies.

and mail with your name and address.

120

Middle

compa¬

recent study of

ing to
CFC

prospectus, clip this ad

RESEARCH

land Gas and Electric

in

Caution

composite,

to

tends

individual

nies, totals over $1 billion accord¬

Free

information folder and

NATIONAL

by Funds

of

over-all

rent caution

Purchases of the New Eng¬

Gas.

still

investment

utility industry, which
the natural gas dis¬

with

along

common

companies

substantial

a

the electric

135 bonds, pre¬

and

investment

the

•

ferred

The
course,

NATIONAL

,

Words

Continued from flrst Pa9e

A MUTUAL INVESTMENT FUND

February 17, 1955

more

conserva¬

tively balanced portfolio.

Definite

final

Inc.

were

miliar

Other

added.

to

names

appear

less

fa¬

among

holdings during the period under
review, included Coastal Carib¬
bean Oils in the portfolio of Gen¬
eral

Public

Service;

Ltd. among Lehman

Geco Mines,
Corporation's

holdings; Copper Range Company
with the securities of Axe-Houghton Fund "A"; Pan

American Sul¬

phur in the Axe "B" list; and two
insurance

stocks

Confederation

—

Life Association and
ers

Life

deVegh

Mutual

Manufactur¬

Co.—with

Insurance

Fund's

The increase in

the

assets.

holdings of the

petroleum issues during the quar->
ter

under

review

was

fairly

well

scattered among

the several funds
although Eaton and Howard Stock

*
DIVIDEND

m

Fundamental Investors, Inc..

eystone

eystone
Diversified Investment

SHARES

Fund, Inc.

Custodian Funds

Manhattan Bond Fund, Inc.
fa

a

mutual

investment in
mon

investment
a

fund

WiJ, lie

diversified list of

INCOME:

com¬

Diversified Growth Stock

quality and income possibilities.
a free
copy of the booklet-pros¬
pectus by mailing this advertisement to

Fund, Inc.

Send for

BULLOCK

PROSPECTUSES

AVAILABLE

FROM

YOUR

ON

LOCAL

THESE

MUTUAL

INVESTMENT

Chicago
Los

San Francisco




Incorporated

Westminstei

at

certain

5eries K-2, 5-3, 5-4

pour

Company seeking

long-term CAPITAL

GROWTH and

TAX BENEFITS

under

Canadian Laws

local

investment

dealer

or

OR

Tlie Keystone

Hugh w. Long and Company

Angeles

fully managed Canadian

Investment

Series B-2, B-3, B-4,

Prospectus from

FUNDS

DEALER,

Cleveland

ONE WALL STREET, NEW YORK 5

Address

A

objectives of

.Series b-l

K-l, iS-1 and 5-2
GROWTH:

Established 1894

Name

ofC arra da, Ltd.:

offering

stocks selected for their investment

CALVIN

investment

RESERVES:

fund

Company of Boston

1

Parser, Elizabeth 3, Hew Jersey

50

c (ingress Otreet

Boston 9, M ass.

Volume 181

Number 5404

...

The Commercial and Financial Chronicle

35

(835)

nd and

Massachusetts Investors acquired stock of
Jersey Standard
fairly substantial ad¬ in addition to stock received
in
Sinclair, second ranking exchange for
holdings of Humble.
popularity during the previous Louisiana Land and

Trust

and eliminated from

made

by two trusts each

ditions.
in

three

best

liked

ments

oil,

shares,

seven

One lone

sented

by

Phillips

manage¬
total of 67,700

a

making initial
sale

was

added

was

dozen

a

acquiring

chases.

the

was

In

to

to

each

5%

a

Oil

and

Gas

"A"

to

added to

Partially
sales

seven

offsetting

in

portfolios.

the

In

addition

totaled

28,575

4%

a

were

four

purchases

Also

1,192

ings of Standard
9,775 shares.

5%

stock

divi¬

of

Six

four

California by

trusts

Line

a

A

Skelly

of

were

the

as

offsetting
of

tal

Producing.

showed

and

acquired.

Union

Pacific

These included

the

Illinois Central

favorite

funds

in

the

acquiring

chases.

five

a

making

Four

of

and

by three trusts each
Santa Fe, Chesapeake arid

were

Ohio, Kansas City

Selling
to

sales

three
a

popularity along

decreased in two lists

ing

the

previous

three

Louisville
eliminated

was

and

portfolios and lightened in

fourth.

Sales

equaled

Continued

months,

28,000.
Copies

Net Cash & Governments

Thousands of Dollars

Open-End Balanced Funds:

page

American

Business

Axe-Houghton
Axe-Houghton

Shares

Fund

23.3

55.4

2,506

12.2

5.8

32.2

29.8

56.1

64.4

2,299

4.7

5.5

27.2

21.9

68.1

72.6

4,462

0.6

3.6

28.1

24.0

71.3

72.4

7,965

11.8

8.9

18.1

17.1

70.1

74.0

1,981

4.6

3.9

27.1

348

25.6

68.3

70.5

337

9.9

8.8

25.2

21.1

34.9

70.1

0.5

4.2

None

None

99.5

95.8

7.7

6.2

29.6

27.5

62.7

66.3

1326

Wide

1,115

19.0

14.8

10.5

9.9

70.5

75.3

The

subscription price is

12.0

the

net

236

■

8.7

9.8

11.2

79.3

4.6

3.4

30.5

28.8

64.9

67.8

304

7.9

8.7

24.0

21.2

68.1

and

70.1

-

value

asset

per

share, without the addi¬

829

1,153

2.0

2.4

14.6

13.2

83.4

84.4

tion of any sales load or

3,814

3,737

17.3

15.9

29.2

29.5

53.5

54.6

commission.

4,425

3,044

4.9

3.0

24.0

23.2

71.1

73.8

2,134

1,253

4.6

2.5

38.7

37.4

56.7

60.1

288

634

2.4

4.5

18.7

17.1

78.9

78.4

1.711.

2 208

18.1

20.6

30.3

26.0

51.6

53.4

326

2,036

4.1

20.8

17.6

None

78.3

79.2

39 035

35,734

67.5

Boston

Farnham Fund

.

Fund
—,

'
Co

10.8

8.9

24.1

23.6

65.1

94

70

1.7

1.2

41.0

38.-3

57.3

692

2.6

8.7

None

None

97.4

de

Vegh

Income Fund, Inc.

60.2

181

___.

Whitehall Fund

Wisconsin Investment

Capital Stock

79.0

24,817

242

Securities-

Wellington Fund

■

294

30,364

I
Fund.

Shareholders Trust of
Line

Mutual Fund, Inc.

98

9,230

Trust_„

George Putnam Fund—
Scudder, Stevens & Clark_.

Value

Vegh

10,055

_

Securities—Income.

Roe

de

7

Balanced

Investors

Johnston Mutual

Stein

Broadway, Camden 3, N. J.

56.1

2'o75

Investors Mutual

<

300

23.0

.

Howard

Nation

undersigned.

Dec.

20.6

Securities

-

Sept.

674

Fully Administered Fund—Group

National

Dec.

9,585

^Dreyfus Fund

0-

from

Delaware Distributors, Inc.

Per Cent

End of

Sept.

21.6

""II

Dodge and Cox Fund

General

Dec.

1,731

Fund, Inc

Fa+on

Sept.

6,887

"B"

Commonwealth Investment
Diversified Investment

:i

Grade Bonds & Pfds.

-End of

4,723

"A"

request

the

7,276

Boston Fund

(p r

available

on

Per Cent *

-End ofDec.

FACT

spectus)

37

Com. Stks. Plus Lower

Preferred Stocks

Per Cent

End of

Sept.

of

BOOK

on

and December 1954

Investment Bonds and

Net Cash & Governments

se¬

from

Balance Between Cash and Investments of 63
Investment Companies
End of
Quarterly Periods September

di¬

a

*V

|

One portfolio elimination and an-

dur¬

owns

supervises

balance was confined

two 1 issues.

second carrier in

with Santa Fe and Seaboard

on

Nashville

equaled 6,400 shares. Nickel Plate,

thousand

Southern and

Western Pacific.

investment
which

versified group of
curities.
:

was

pur¬

offsetting

mutual

company

14,800

initial

A

pur¬

totaling 7,6,500.

Acquired

group; "eight

total

former

500 shares and of the latter

Axe-Houghton
"A"
and
Stock
funds,' Selected
American Shares, the Stock Fund
of Group Securities and
Bowling
Green Fund.

the

of

Fund

each

were

chases

-

of

managers

shares,

Pipe

was

companies added

bought by four managements,

the

by

Interprovincial

79,000 shares

29,600 shares of Southern, two in¬
itially introducing the issue into
their portfolios.
Great Northern

Interest

managements

of

A like number of

ing the quarter.

lightened in

Ten

Gulf

bought by seven trusts, two
new commitments.
A to¬

was

making

particular interest in the rails dur¬

9,200

holdings

total

was

period.

received

few

increased

portfolios.

shares

likewise

shares

shares.

shares of

increased hold¬

to

dividend,

totaling 1,886 shares.

disregarding the
dend, eight funds

during

group

I Several

Signal

1,000-share block. Ten shares.J,Three
managements also
25,240 shares of So- made
initial
commitments
in
co"y Vacuum, two
initially com¬ Union Sulphur and Oil "A."
mitting the stock to their hold¬
Five trusts sold 39,694 shares of
ings.
Excluding new shares re¬ Gulf
Oil, the least popular issue
ceived as a 7%
ice were

Texas
Rail

-

of

a

Sold

American

four.

funds added

capital distribu¬
tion, 13,913 shares of Cities Serv¬

and

share distri¬

bution, three increases

pur¬

repre¬

Ohio

portfolios and

Texas

and

addition

five

third.

Republics, Anderson Prichard Oil,
Hancock
Oil
"A," Standard of

Exploration

months, currently

a

were

91.3

Capital Stock
The
the

Open-End Stock FundsAffiliated Fund

9,916
133

Bowling Green

,

34

1,293

2.1

None

None

2.2

1.9

34.8

23.6

6.0

6.2

13.4

13.3

5.4

None

None

1,992

2.6

3.1

8.3

8.0

89.1

13.5

0.2

0.1

84.6

6.0

1.4

4.6

4.6

89.4

18.4

11.1

1.4

None

80.2

18.4

None

0.2

81.6

81.4

2,932

10.6

7.7

0.7

0.8

88.7

91.5

4,755

2.0

2.9

0.4

0.3

97.6

5 174

2.9

2.0

None

None

97.1

19.2

22.4

None

None

80.8

284

1.9

1.8

7,423

6,436

4.5

3.3

None
•

None

None

None

98.1

obtained from

de

Vegh 8C Company

One Wall

Street, New York 5

98.2

95.5

96.7

12.7

85.7

83.4

None

90.5

91.6

65.0

91.9

24.3

55.9

56.5

175

1.7

3.9

12.-3

3,745

4,087

9.5

8.4

None

4,481

748

29.3

4.7

5.7

3.4

7,398

7,978

19.2

19.2

24.9

13,957

5,882

2.0

0.7

None

858

1,843

1.6

2.9

None

911

633

19.2

Massachusetts Investors Growth StockInvestment Fund

-

'

u

,

None

98.0

98.4

97.1

14.4

of Boston

99.3

None

••

Shareholders'Trust

16.6

64.2

74.3

652

1.3

1.4

None

None

98.7*

98.6

A Balanced

2,775

2.0

2.3

None

None

98.0

97.7

1,373

Securities—Stock

11.3

532

2,010

841

Mutual

23.8

29.2

62.4

63.1

None

97.8

96.4

Investors

National

ffNew England Fund
Stevens

&

Stock Fund

Clark

7.7.

1

;

299

2.2

OQ to

None

16.0

15.0

None

1.7

1.2

2.2

,

*

5,522

5,931

17

15

Sovereign Investors

*

Street Investment Corp.
Street Investing Corp

-

None

84.0

85.0'

96X

96.7

None

81.8r

82.9

\

77.9.

2.1
'

24,075

24,967

18.2

17.1

None

1,112

,

Fund

if

'

153

^

_.

13.8

.

Common

Selected American Shares—

Wall

be

77.6

Investment Co. of America

State

may

98.0

4,097

Knickerbocker Fund

National

or

96.8

234

Trust

Prospectuses

88.9

18.4

65

Investors

sales load

94.0

678

30,284

6.3*0

Loomis-Sayles Mutual Fund

tion of any

86.4

341

3,266

'

per

commission.

88.9

15.2

2,655
.1

value

asset

94.6

3.J81

Stock

General Capital Corp
;
Group Securities—Common Stock Fund
Incorporated Investors
Institutional Foundation Fund

Scudder,

97.9

860

Fundamental Investors

Mutual

64.5

80.5

28,432

Howard

Massachusetts

63.0
80.6

-

net

share, without the addi¬

97.0

1,284

Fidelity Fund

■

96.5

2,987

Vegh Mutual Fund
&

3.0

1,440

——

Dividend Shares
Eaton

3.5

2,985

Fund

Delaware Fund
de

41

Fund

Blue Ridge Mutual Fund
Broad Street Investing

Bullock

121

455

§ Axe-Houghton Stock Fund

9,391

subscription price is

1,160

21.2

20.0

0.9

•

1.0;/-

*

Blue

Closed-End Companies:

Ridge

'

Adams

.4*^

Express

American

•American

3,758

International

Public

Tri-Continental
&

0.8

0.4

93.6

93.6

7.9

5.1

88.8

1,032

4.3

3.4

0.7

0.7

95.0,

95.9*

8,899

18.9

15.2

None

-Ndhe

81.1

84.8

732

8.4

4.1

None

None

91.-3

95.9r

12,822

6.7

6.7

0.4

0.4

92.9

92.9

1,300

12.3

8.0

0.1

None

87.6

92.0

542

0.5

0.2

13.4

12.5

86.1

87.3

2,064

2,182

3.3

3.2

None

None

96.7

96.8

4.741

Securities--——

Mutual Fund, Inc.

94.1

1,102

Corp.

International

0.4
..

11,289
1,851

fU. S. & Foreign Securities.—
S.

6.0

3.3

1,190

Service

Lehman Corporation
National Shares Corp.

U.

6.0

118

10,467
1,444

General American Investors.
General

4,105

436

L'uropean Securities

"

1,580

6.9

2.3

None

None

93.1

97.7

A Common
»

Stock
Fund

Prospectuses

may

be obtained

from authorized dealers

or

SUMMARY
♦Investment
Ba for bonds;
for

bonds

preferreds.

associated

{Formerly

and

preferred

stocks:

Moody's

Aaa

through

Fitch's AAA through BB and approximate equivalents
jPortfolio

company.

§Name

Nesbettv Fund;

ttFlexible fund with

exclusive

changed

flexible

current

of

fund

securities

from
with

balanced policy.




in

subsidiary

Republic
current

or

Investors-

stock

policy.

,

Harriman

Changes in Cash Position of 64 Investment Companies

Open-End Companies:

Plus

Minus

Balanced Funds

10

8

5

23

Stocks

14

9

7

Ripley & Co.

30

Funds

Closed-End

Companies

2

8

Unchanged

1

Total

11,

Incorporated

National Distributor
63 Wall
BOSTON

Totals

26

25

13

64

•

Street, New York 5, N. Y.
PHILADELPHIA

•

CHICAGO

33

Chronicle... Thursday, February 17, 1955

The Commercial and Financial

(836)

Changes in Common Stock Holdings of 47 Investment Management Groups
\

ABERDEEN

Transactions
more

FUND

new

in

which

managements

purchases

(September 30

bought

are

in

italics.

Trusts

/

management groups. Issues which
Numerals in parentheses indicate number of managements making entirely

completely eliminating the stock from their portfolios.

or

-Sold-

—Bought—
No. of

No. of

No. of

No. of

No. of

No. of

No. of

Shares

Shares

Trusts

Trusts

Shares

Shares

Trusts

Machinery and Industrial Equipment

Agricultural Equipment

6(2)
I

Deere

39,750
27,600

and

J. I. Case.—

1,000

3,800

American Machine and Foundry

4(2)

7,500

Caterpillar Tractor

3(2)

4(1)

34,555

Chain

4,000

1(1)

45,500

Halliburton Oil Well Cementing

None

None

4,000

Ingersoll Rand 1

None

None

2(2)

3,100

Thew Shovel

None

None

None

None

4,100
7,700

2(1)

GROWTH
Auto

FUND

2

and

Auto

Parts

Ford Motor of Canada,

General

21,000

Kelsey-Hayes Wheel

2(1)

dealer

4,495
51,800

2(1)
your

Federal

9(1)

Prospectus from

5,900

3(1)

2,000

Motor Products

Mogul

2(1)

25,000

Murray

Boston, Mass.

•

Broadway

New York 5, N. Y..

*

300

Timken

None

3(2)

1(1)

4,800
None

Bullard Company

None

None

None

None

Link Belt

None

None
200

None
1

4

8(4)

200,600

6(3)

23,000

37,200

United

2,200

Boeing

Airlines

Chance-Vought

Anaconda

18,400
25,099

Magma Copper 9

3(1)

4(1)

3,200

Newmont Mining

5,575

Reynolds Metals 10
St. Joseph Lead

6,000

2

3(1)

5(2)

5

21,000

________________

None

Pan American World Airways

7(6)

2(1)

None

None

Sperry Corp.

9,000
11,900

______

17,200

1,300

Vanadium Corp.

lRusy

^5%

r

//

5(3)

3(3)

5,252

4(2)

12,500

None

None

None

3(1)

2(1)

2,800

Devoe and Raynolds "A"_______

None

None

2

5,700

None

None

3

None

HUDSON FUND, INC.
mutual, open-end, diver¬

sified

investment

full

with

None

None

None
None
500

stocks.

and

prospectus

«...

'

Information

from your investment dealer
mail coupon to

or

TELEVISION

— — — __

SHARES

MANAGEMENT CORP.

135 S. LaSalle St.

115 Broadway

New York 6, N.Y.

Chicago 3, III.

2(1)

6,000

2,200

Lily

None

2(1)

None

Marathon

3(2)
2(1)

None

None

Mead Corporation

"

2,654

31,200

2

7,423

Aztec

3

2

4,409

Canadian

2(2)
5

20,000

None

None

4

3.500

5(2)

6(2)

11,500

Olin

None

4

32,258

Rohm and Haas4

Signal Oil and Gas "A" 10

67,700

Sinclair Oil Corp

2(1)

10(2)

25.240

Socony

Victor Chemical 4a

12,800

8

4(1)
4

2(1)

Procter

4,300

CITY

and

None

17,000

Gamble

None

3(1)

2(1)

6(6)

3(1)

83,900
; 7,900

4

2

177,800
17,700
13,000

3(3)

Beckman

None

None

Anderson-Prichard

2(1)

3

None

None

9,500

None

None

None

None

Texas

3,300

Zenith

1

3,500

General

None

Radio

17,500
None

3

18,400

2,200

1,900

2

2

5,400

2(1)

2

2,700

1,600

3(1)

3

21,100
1,000

Tecumseh Products

2,375

2(1)

2

None

ELECTRONICS
os

an

Investment Medium?

10,300

2

2,900
13,500

2

"

4(1)

44,000

2

8,200

Aetna

Life

None

None

Beneficial Loan Corp._
_

None

3(1)
invest in

can

a

diversified group

of electronics securities

through

the shares of

dealer

or

2

.

investment

mail coupon

f

23,400
8,350

5,000

2

11,000
516

1

None

3,500
None

Co

Chicago 3, III.

3

New York 6, N.Y.

34,800

9(5)
3(1)
4

2
2

2,500

Utilities

International

National

Fuel

None

Corp

None

350
12

Panhandle Eastern Pipe Line—

None

Southern

None

12,700

Western Natural Gas

Corporation
Co...

Production

1(1)
None

Gas 16

None

3,000
53,917

1
1

4(1)
2

2(1)

Public Utilities

None

None

None-

4(2)

None,

None

Commercial Credit

None

American

3(1)

15,000

None

7(2)

28,856

Middle

93.298

New

Connecticut Gen'l Life

None

None

9(1)

Industrial Acceptance Corp
Lincoln National Life.^

None

None

2

None

None

2(1)

Marine Midland5

None

None

2(1)

.None

None

National City Bank, N.

Y. ^....

6(2)

5,800

South

&

None

Pacific Finance Corporation—..

None

None

Fireman's Fund Insurance

4,228

Guaranty Trust Co. of N. Y

565

None

San

Diego Gas and Electric____

None

None

South Carolina Electric and Gas

None

None

42,320

Virginia Electric and Power !9__

10,500

Co.

Armour

2(2)

5,500

Best

5(1)

12,400

3

19,375

3(1)

Columbus & South. Ohio Elec.

38J00

4(3)

Commonwealth

15,000

3(3)

16,500

3(2).

14,825

5(1)

8,500

5,000

Electric

American Gas and

Edison

'None
None

Consolidated Edison of N. Y

None

Gulf

-

\

None
2

2
None

1,200
None

States

Utilities

32,800

5(2)

13,000

3(2)

Power & Light

9,000

3(1)

Light

3,400

2(1)

Duquesne Light

-----

Iowa-Illinois Gas &

Electric

None

and

None

Kansas City

1(1)

None

None

Minnesota

Power

None

Co

2,200

1
None

None

None

None

New

State

Electric & Gas

16,869

2

None

Armour and

3(3)

•.

17,600

None

3(3)

1

12,900

None

None

1

20

England Electric System !8

None

Fidelity and Guaranty

.

Puget Sound Power & Light—

1

None

2(2)

700

19,250
-

None

Transamerica

i.

Utilities 17__

2(1)

Northwest Bancorporation

U. S.

800f

International Tel. and Tel._____

~

Tel.

Tel—

20,800

CORP.

115 Broadway

2

None

Hugoton Production Co

Chicago

None

Food Products
135 S. La Salle St.

5(1)

5,500

None

4(1)

2(2)

13,900

.

Natural Gas

Paso

None

Chase National Bank, N. Y
C.I.T. Financial
1
I

to

TELEVISION SHARES
MANAGEMENT

700

51,950

3

booklef-prospectus about the
your

3(1).

2(1)

FUND, INC.

Company from

9,650

4(1)

TELEVISION-ELECTRONICS

Get the

700

2(1)

14,200

None

Boston Insurance

J

You

El

None

Financial, Banking and Insurance
975

1(1)

2(1)

Natural Gas

7

Sylvania Electric

None

1(1)
None

1

Raytheon Manufacturing
Square "D"

3,200

of Ohio

Gulf Producing

None

95,300

Electric

None

6,300

79,300
10,000

Skelly Oil
Standard Oil

Gloeilampenfabrieken__
Radio Corporation

6,000

9,200

None
None

Instruments

3

5,300

lnterprovincial Pipe Line

Philip's

None

___

Oil14

None

23,900

3

Humble

None

None

Oil

Oil "A"

Hancock

2

774

10,300

Gulf Oil"

None

1

2

39,694

None

1,192

None

None

None

Sulphur and Oil Corp."A"

None

3(1)

Have You Considered

Union

____

California

of

1(1)

8(1)

2

Oil

None

800

None

Union

2(1)
V None

None

Corp.15

9,000

2(2)

1

Oil

None

24,100

None

TXL

None

None

Jersey 14__

Company

Philco

5,500

5(1)

None

Texas

."J ,000

None

4(2)

3,250

California 10

of

Standard Oil of New

American Republics Corp

1

2

Oil

Standard

1,886

1,000

None

Electrical Equipment

None

20,000

Vacuum

None

Gillette Company
Pfizer

12,900
31,600

9,775

14(5)

^

5

Del

Seaboard. Oil. of

28,575

539.20

2

None

—._

3(1)

24,800

2(1)

None

Phillips Petroleum

12(7)

2,300

6(1)

None

Oil-Co.,.Ltd

Louisiana Land and Exploration,

None

Drug Products

2(1)

:2,500

'

—

None

18.800

Chemical3

Pittsburgh Coke and Chemical__

932

1

Mathieson

-18,767 V2

None

Petroleum

8,500

Union Carbide and Carbon

6,925

2

•

Gas

Delhi

Service12

Cities
Lion

and

Oil

None

37,500(new)Hooker Electrochemical 2
13,400
Monsanto Chemical

None

None

11

None

35,200

3(1)

None

5,700

2(2)

2(1)

1

13,913

8.800

1

—

4,613

t___——*

Corporation

2

2(1)

8,000

'-None

Petroleum

8,500

4,200

American Cyanamid
Columbian Carbon

1

500
'

7,000

Paper 10

International

None

American Agricultural Chemical

600

Tulip Cup___
Virginia Pulp and Paper__

West

5(1)

Allied Chemical and Dye

NAME....

ADDRESS.

16,600

2(1)

Chemicals

6(1)

None

1,300

1

United States Gypsum

6,600

2

None

None

3

7(1)
4(3)

None

Gair

8,500
11,500

Sherwin-Williams

1

Zellerbach

17,100

National Lead

None

Crown

None
1

4

1(1)

6,000

Champion Paper and Fibre—__
Robert

12,800.

...

management dis¬

common

.

Armstrong Cork
:
Carrier Corp.
Georgia Pacific Plywood
MacMillan and Bloedel, Ltd

company

cretion, currently empha¬

sizing

None

2

6,000
5,500

None

Company1

Yale and Towne_____

None

None

None
1,000

Flintkote

4,400

3(1)

Paper, Pulp and Printing

Bridgeport Brass

4(2)

International Business Machine.

19,500

American Radiator

Trane

5(3)

1,800

Phelps Dodge

4

5,430

1--

International Nickel

3,400

6,500

/

None

20.500

13,840

4,500

15,700

14,300

1(1)

None

______

Office Equipment

Coca-Cola

24,000

140

1

2

3(2)

1

417
—

2(1)

3

4(1)

1

None

None

2(1)

Building Construction and Equipment

V*

None

96

_______

4(1)

Beverages

/V

None

None

Kaiser Aluminum and Chemical

6(2)

27,700

None

4,000

None

4(1)

__.

1

2,000

and Refining

Copper

3(3)

____________

Eastern Airlines

608

American Smelting

23,000

Airplane

1

9,000

14,000

Airlines

2(1)

15,700

2

Bearing

2(2)

Metals and Mining

Aviation

American

Worthington Corp.

None

2(1)

1,200

._

None

Holler

None

Belt 8

2

1,200

4(2)

Broad St.

Ltd. "A"

Corp

3,000

DAVID L. BABSON

DISTRIBUTING CORPORATION

None

...

Motors

4(1)

or

A

None

2

2(1)

-

Harvester

5(2)
4(3)

49,100

Company

International

12,800
89,600

4(2)

8(3)

INVESTMENT

120

-Sold-

—Bought—

No. of

A MUTUAL

40

.

December 31, 1954)

buyers exceed sellers—or sellers exceed buyers—by two or more

than

sold

—

None

None

None

Niagara Mohawk Power Corp...

49,000

5(2)

16,000

4(2)

17,000
warrants7.-

Foods

York

and

NAME....
ADDRESS

CITY




2

None
3

1,900
None

800

Swift

and

Co..

Standard

.__

Brands

United Fruit

r"

■

...

_

2(2)

None

None

Ohio

None

None

None

None

Oklahoma

3,500

2(1)

None

None

Public Service Co. of

8,300

._

Wrigley

5(4)

None

None

Union Electric of

1,700

Edison
Gas

T
and

—

Electric

Colorado..

Missouri

6,580

2(2)

24,700

4(2)

21,500

2(2)

•

Volume 181,

Number 5404...The Commercial and Financial Chronicle

—Bought—

Sold

Continued

No. of

No. of

No. of

Shares

Shares

3(2)

5,500
1,500

3

Amer. Broadcasting-Paramount
Paramount Pictures, Inc

None

4,500

Natural

Electzic Utilities Sold by Funds

1

15,400

Technicolor

None

None

2(2)

14,000

Twentieth Century-Fox
Universal Pictures Co

None

None

None

None

3,400

Railroads

other

2,100

Atchison, Topeka & Santa Fe

None

Metals
St.

Baltimore

None

3(2)

None
None

None

6,400 •*

4(2):

None

None

24,200
Chesapeake and Ohio
7,500
Great Northern
•8(5)" 14,800 " Tlliriois Central
3(2 )
2,500 .' Kansas City Southern
7(2)
.79,000
New York, Chicago & St. Louis
7(2) ; 29,600/ ; Southern Railway
4(1)
6,500
Union Pacific
3(2) ; - 11,400
Western Pacific
None

None

'2(1)

None
None

3

16,000

6,100

■

Pullman

of

None

4

4,100;

Allied

7,600

Marshall Field

None

National Tea 12

None

None

3(3)
1

3,500

"

None

None

Roebuck

200

1

.1

23,000

2(2)

but

10,000

4(1)

12,800

Simpson's Ltd.

5(3)

12,700

2(1)

6,000

2,000

Steels

4(1)

5,300

9(1)

27,100

9(2 )

43,600

4(1)

9,900

Steel

2(1)

;

None

1

—

were

on

over-all

balance

in

transactions

group,

distributed.

showed
common

8,500

4(1)

None

None

investment
and

two

United Fruit,
year

four

ago,

in

a

and

Inland Steel20'

None

None

another.

Jones

None

None

shares; three small offsetting

7(4)

15,500

National Steel

None

None

13(6)

56,100

Republic Steel

300

2(2)

3,400

12(1)

54,800

3(1)

8,500

chases

totaled

Brands

also

General

United States Steel

300

the

8,300

Motors

had

the

U.

S.

Utilities

during the period. Eight

tions

portfolio
purchase

additions

National

itself

and

Eastern

fund

among

one

new

totaled
51,800
shares.
Transactions in Chrysler were in¬

American Viscose

71,400

7(5)

30,000

15J500

amounting

to

Air

previous three months.
a slight favorite over
stocks

in

the

4,200

2(2)

12,000

MUTUAL DISTRIBUTORS, U
Baltimore

1016
.

None

were

made

Fuel

to

holdings

Gas,

PLEASE SEND

None

None

None

New York Shipbuilding

None

Na m e

State_

of

portion
rights. Four

through the use of
of Chicago Corporation to¬
taled 12,700 shares and two man¬

one

Address^
City

FOUNDERS

INCOME PLAN

TEXAS* FUND

None

shares

received

in

Excludes

shares

acquired

through 3

3

New

4

Additions

for

2

1

split-up.
for 1 split-up and those converted

Prospectus may be obtained

A MUTUAL FUND INVESTING IN SECURITIES OF THE SOUTHWEST
prospectus may

he obtained from

your

&

investment dealer

from

represent conversion of preferred
received as 4% stock dividend.

COMPANY

"

New common received in exchange for $4
5 21,950 shares converted from preferred.
6 Part
purchased through rights.
7 Exchanged for prior preferred issue.
8

New

9

2,674

additions

in

5%

represent

part

Excludes

11

2VZ %

stock

received

7%
as

stock

5%

2%

share

13

4%

capital

14

68,450

distribution

Building

Teletype DN 249
DENVER

COLORADO

2

Q

stock

dividend

and

conversi

in

from

CmmiiieMi

dividend.

distribution.

INVESTMENT

15

Received

16

9,610

of

of

from

omitted.

Standard

Humble.

A balanced mutual fund

excluded.

declarations

shares

shares

COMPANY

of

Basis:

over

New
9

Jersey
Jersey for

received in exchange
10 Humble.

for

76,055

common

provide reasonable current

income with conservation and the
of

for 10.

1

investing in

bonds, preferred and

stocks selected to

holdings of Texas Pacific Land Trust. Basis: 4 for 1.

shares purchased through rights. Basis:

300

possibility

long-term growth of principal.

financial
industrial

11,197 shares acquired with rights.

Basis: 1 for 15.
shares bought through exercise of rights. Basis:
purchased through rights.
9,500 shares received on conversion of bonds.
i

18

28,320

19

fund, inc.

Part

20

CORPORATION

share dividend not included.

12

17

as

Teletype ITO—566

336—1st National Bank

-

received

shares

10
'

UNION NATIONAL BANK BLDG., HOUSTON 2, TEXAS

PReston 0211

or

MUTUAL DEPOSITOR

cumulative preferred,

preferred.

|

fronri

dealers

FOUNDERS

General Distributors

stock.

authorized

or

issue.

shares

4a

•

REQUEST

PROSPECTUS

ACCUMULATIVE PLAN

None

General Shoe Corp

2

•

ME

a

sales

BRADSCHAMP

j

City 5, Mo.

and Distributor
PROSPECTUS ON

Corp.
and
Panhandle
Pipe Line.
Three addi¬

None

Brown Shoe

Excludes

preferred

Ktimi

•

Principal Underwriter

FOOTNOTES
1

^

SYSTEMATIC PAYMENT PLAN

American Tobacco

600

Offered by

MUTUAL FUND

Miscellaneous

2(1)

Full

2(2)

1,600

2(1)

with

Discretion.

group,

Tobaccos
2

Fund

Management

shown for

was

Open-End, Diversified,

Investment

issues than dur¬

4(2)

Duplan

conclusive,

United

adding 18,400 shares
existing holdings. A couple of
purchases
each
were
made
of
Hugoton Production, International

managers

to

Mutual,

pur¬

trusts

1

None

field

gas

A

shares;

initial

was

!

•4MPTimii«rlK

to

balance.

on

dealer or

com¬

was

other

three

pur¬

Standard

sold

the

El Paso

auto

Celanese Corp

None

800.

your

Selected Investments Co.
135 S. La Salle St., Chicago 3, ill.

shares.

23,000

made

enthusiasm

None

200

Wheeling Steel

was

equaled

these

Neither

None

Textiles

None

Sales

Prospectus Jrom

bought,

investment

acquiring

natural

ing

in

1

None

dozen

of

Less
the

from

lightened

INC.

repre¬

these
well

neglected, two portfolio ad¬
ditions and two new acquisitions
amounting to 37,200 shares.

Armour

eliminated

was

portfolios

shares

in

Purchases

Investors

of
also

was

chases.

Wrigley.
trust favorite over

41,800

U. S. Pipe and Foundry

120,000

panies

liked

25,900

Laughlin

shown

was

Fundamental

one-half

companies

interest

an

american

in

Lines

'

1

for

10.

CommimMi

NOTE—This survey covers 64 investment companies, but purchases or
sales of funds sponsored by the same management are treated as a unit. For
example, the four companies sponsored by J. and W. Seligman are considered
as
having the weight of one manager.
Individual portfolio changes in the
Loomis-Sayles Mutual Fund are not surveyed but those of Overseas Securities,
which does not appear in the companion table, are included.

STOCK

A mutual fund
common

SYSTEMATIC INVESTMENT
PLAN

FUND

investing in diversified

SUMMARY
of Net Portfolio

PLAN

long-term growth of income and principal.

Purchases

or

Bought

Balanced Funds
Stock Funds

5

Sold

Matched

5

13

Total

Managed and Distributed by NORTH AMERICAN
Russ

23

15

_

4

11

4

7

13

31

64

SECURITIES

COMPANY

San Francisco 4, California
or

tjie above

11

20

•

Prospectuses available from Investment Dealers

30

0

Building

"Investment Company Managers since 1925" ~
Closed-End Companies

—




Prospectus

be obtained upon

fit
management corporation
Principal Underwriter
444 Sherman Street

Denver 9,
Wholesale

Totals

INCOME PLAN

request f
your investment
dealer or from

Sales of

64 Investment Companies

Open-End Companies:

CAPITAL ACCUMULATION

stocks of well-established

companies selected for the possibility of
Excess

38

Selected

was

commitments.

new

issue, five trusts acquir¬
ing a total of 12,400 shares, one
making an initial commitment.

was

two

page

the

taken

were

interest

Eastern

fairly

were

Swift

2

7,900

of

food

4(1)

1(1)

ing

made

the

sold

managements, half of these mak¬

three

a

4(2)

Unusual

the

2(1)

Harbison Walker Refractories—

Airways

sented
were

' /

.

stock
they had
spin-off from United

a

Profits

on

Corp.:

'•

managements
as

instance

American Airlines, a total of 200,600 shares being bought by eight

Kennecott.

Although purchases

'

A

disposed of
by two trusts. However, the latter
was
contrary to the general ex¬
perience among air carriers dur¬
ing the quarter under
review.

four managements,
opinion was evenly divided on

None

17,000

Bethlehem Steel

and

World

also sold

was

''

•

each

Wheel,

totaling 27,700
Sperry was sold by four
managements and Pan American

America.

Anaconda

*

In

favorites, four
7,500 shares of
shares of

45,500

Federal

of

; Hayes

and

shares.

balance by

Three

Allegheny Ludlum Steel
Armco

and

of

made

were

Western

Continued

Boeing, two portfolio eliminations

favorite

United States Rubber

latter.

and three decreases

issue

well

Rubber and Tires
4

the

Tim-

Chance-Vought

interesting transaction

Co.

♦

Aircraft.

sale

International Nickel

G. C. Murphy
Stores

former

; 4
*
'
*
Some Aircraft Liquidation

received

in
the
group,
three
eliminating and two more
lightening a total of 13,840 shares.

Montgomery Ward

None

An

the

ular

on

Safeway

the

Kelsey

Seven

shares,

3,200

funds

4(3)

None

None

-

20,500

8,000

and

Aluminum

Gimbel Brothers

None

1

Stores

Sears

20,000

25,099

'

t

acquired by a pair of trusts.
But another big copper producer,
Phelps Dodge, was the least pop¬

None

1,400

~'

Its
Newmont

and

each purchased by
Additions
equaled

were

Vanadium

2(1)

5,500.

two

Motor Products and Murray

Magma-(excluding

were

acquiring

holdings of Ford of

in

each

Mogul,

each

2

*2

block

American

by Boston Fund of
Aluminium, Ltd. and the purchase

Retail Trade

Cementing
funds

ken Roller

metal

small

a

sold.

was

trusts.

ments.

1(1)

None

—

shares;

dividend)

15,700,

was

2,500

and

Canada totaled 4,495 shares.

best

respectively. Two aluminum com¬
panies, Kaiser and Reynolds, were
each
bought by three manage¬

4(3)

General American Transport'n__

non-ferrous

increases

commitment

tions

17,200

four,

"

Railroad Equipment

3(1)

the

was

initial

Southern

and

machinery and industrial

Bearing was purchased
by four funds, while two acquisi¬

Mining

2(1)

28,000

Louisville and Nashville

'

the

Smelting;

1

1,600

of

stock

None

7,200

Atlantic Coast Line

3,500

2(1)

purchase and two sales, although
the latter equaled 49,100 shares.

Balance

on

Lead

of 140 shares

None

1,100

Coast

sold

Co.

equipment
group,
Caterpillar
Tractor and Halliburton Oil Well

ing

None

4

each

Gas.

In the

shares, five managements acquir¬

None

Ohio

and

Atlantic

Bought

Joseph

liked

None

7,100

in

1,600 shares.

One

1;_

3

decrease

Line totaled

2(1)

.

2(1)

,

agements
Production

None

2(1)

•

35

page

Trusts

Radio and Amusement

•

jrom

No. of

Trusts

;

(837)

,

Representatives: Boston •Chicago •Dallas* Los Angeles* New York 'Washington, D.C.

Colorado

38

The Commercial and Financial Chronicle

(838)

Continued

from

chases

37

page

totaling

Philco

23,900

shares.

well liked, five acqui¬

was

sitions equaling 24,100 shares.

Electric Utilities Sold By
of these trusts
commitments.

liked

in

were
Worthington,
Ingersoll Rand and

group

Belt,

Shovel.
of

Also

Chain
Thew

Bullard and Link

division

of

with

opinion

division,

three

total

tional

Tulip.

2,200

shares

and

Crown

of

the

of

Zellerbach,

West

and

Guaranty
ance

Lily

Robert

ber

Virginia Pulp and

each

were

purchased

by

disposing

managements

four

were

additions

of

well

an

ficial

initial commitment.
Loan

in

tribution.

the

capital

5%

Marathon

also

each

by

a

dis¬

Hooker

while two trusts added

ical

by

and

Marine

as during the previous
months, was one of the fa¬
bank
stocks, four trusts
purchasing 51,950 shades.
Transamerica was also liked by four
managements and there were two

each

Chase,

of

chasers
With

FUHO

there

earlier

than

extremely
little

was

acquired

was

shares.

BLDG., PHILA. 10, PA.

bought

each

Coke

Issues

the

Century

Deere

equipment

3eorq«

latter

PUTNAM

had

in

the

been

the

shares

lone

liquidation,
eliminating

ter.

and

third

a

New
25c.

<f -Jjo-iton

American
mount

Putnam Fund Distributors. Inc.

lightened

Street, Boston

and
■■■■■■■■■■■■■■■■■■■■•■■■■■■■■■■■■■■■■■■a

Paramount

on

disposed of
Stores was the

Century

electronics
Radio

Fox.

interest

Corp.

with

which

made

A

centered

light

year,

balance

Robert

N. Y.

in

Viscose

was

sold

—

of

Law

and

Joseph

P.

The

(Notes

concept

S.

of

"

of

on

total

the
co¬

all

weapons)—
Byfield—The Book-

(paper), $1.

Much

To

.

Pay

For

Home—Frederick W.
The

Bureau

Research,

the

New

261

York

16,

Economic

Madison Ave.,
N. Y. (paper),

$1.50.

ness—Edwin B. Flippo—Bureau
of Business Research, College of

dent

[*

«

*

*

*

*

»

*

*

are

Prospectus

upon

request

i

Lamborn
maintain

LINE

-

—

Chicago

v—

Atlanta

ALUE

—

Company,
in

Inc.

New

York,
Philadelphia, Savannah, New Or¬
leans, Chicago, Saginaw and De¬
troit, with associate brokers in
many other cities.
At

the

chaux

time,

same

Mr.

announced that

local Godchaux
as

all

God¬

present

brokers will

con¬

associates.

Cashiers

Association

Elects
Sam

New

elected

President

Association

of

of

Wall

the
-

Other officers elected
W.

Officers

Minsky, who is associated
Hardy &
Co.,
has
been

Sumner

Cashiers

Street 'Inc.
are

Howard

of

Halsey, Stuart &
Co., First Vice-President; C. Rus¬
Treasurer,
man

of

Joseph

and

D,

A.

Lomasney

Co.,

Cash-

T.

&

Co.,

Secretary.

fc

-

i?"*" k **•

"

'•>-*-

objective

.

INCOME

24 Federal Street

Los Angeles

FUND
INC.

NEW YORK;

NEW

,

' C V

ESTABLISHED

DISTRIBUTORS, INC.

your

A mutual fund
whose

objective

Investment Dealer

YORK

INVESTORS
A

'

mutual

fund

with

or

the above.'

IlfCOME
A

a

diversified

portfolio of

securities

selected for

The Parker

mutual

FDNB;

fund

whose

prime objective is to re¬
turn as large an INCOME
as

obtainable without

undue risk of

principal.

Corporation, 200 Berkeley St., Boston, Mass.
Established 1925

Please send
CITY_

a

Prospectus

on

Q Incorporated Income Fund
Q Incorporated Investors

*

Name

Q Value Line Income Fund

Montgomery Street

SAN FRANCISCO

INCOItPOUTED

ADDRESS-

Gentlemen:

without obligation, Prospectus checked

'

NAME.

Dept. CF-2

New York 17, New York

'

333

19M

long-term GROWTH of
capital and income
5 East 44th Street

..

*1

HOWARD

BOSTON

BOSTON

is income

INC

Vf

&

;

LINE

A mutual fund
whose

is appreciation




and

offices

INCORPORATED

Lord, Abbett & -Co.
New York

3, -PA.

ALUE

□ Value Line Fund

firm.

sugar

Managed by
'

.^^.^EATON

Prospectuses from

below:

by

STOCK FUND

•

investment dealer

Please send me,

in

EATON & HOWARD

Prospectus from

FUND

announced

Godchaux, Vice-Presi¬
charge of sales for the

BALANCEUFUNO

objectives of this Fund long-term
capital
and
income /
growth for its shareholders.

.

LINE

been

A.

EATON & HOWARD

Investment

FOU*DMa?2#;3

VALUE

brok¬

Sugars, Inc., in

Fund
^

THE

Street,

general

sell Berger of G. A. Saxton &

by

Affiliated
A Common Stock Investment Fund

PHILADELPHIA

has

Justin

Jackson—

of

as

territories where it does busi¬

with

National

Wall

99

Godchaux

Dime

Ownership Of Tax Exempt Secu¬
rities, The — George E. Lent—

b <<■■■■

or

all

Savings
Bank
of
Brooklyn, 9 DeKalb Avenue,
Brooklyn 1, N. Y.—free.

■Minri
UIIIVI

your

for

ers

Lamborn ^ and

of

Inc.,
City,

New York

Your

Profit Sharing in American Busi¬

WELLINGTON
4HGNI).

Appointment

Company,

tinue
How

currently in disfavor.

were

American

pur¬

earlier

Appointed
By Godchaux Sugars

Guide

Gordon-

mailer, Box 101, New York 16,

Textiles, which had been bought
on

&

A.

by

Survey

Fifth Weapon,

new

by two.

Radio

eight

of

Lamborn

(paper)

University
Press,
2960
Broadway,
New
York 27, N. Y. (cloth) $4.75.

over

commitments) and Marshall Field

Pictures, Inc. were each bought
by three managements while
two
acquired
Technicolor
and
Twentieth

Year Book

Administration

4,100

(all

Y.

Crockett—Columbia

merchandiser, four trusts
shares. Sears Roe¬
buck was liked by three manage¬

ments

Affairs

ness,

1954 quar¬

were

history and operations of
Exchange—New York Stock
Exchange, New York 5, N. Y.
the

Temporary

on

Company,
950
University Avenue, New
York 52, NV Y. (cloth) $3.

by four funds
Montgomery Ward and

buying

Understanding
The
New
York
Stock Exchange — Booklet on

—

Brown—H. W. Wilson

sold

each

Simpson's Ltd.
by two. Allied

shares,
Broadcasting-Para¬
and

Y.

Trouble

N.

16,

Edited

Kremlin's

while

amusement

Theatres

—

ordination

Were

College, Hanover, N. H.
(paper), copies on request.*

~

Popularity

about 30%

—

mouth

•

1955

favorite

the

York

East Africa:

merchandise

the September

Benefits
Prof.
Clyde E.
Dankert—Amos Tuck School of
Business Administration, Dart¬

Pamphlets, 22 East 38th Street,

,

eliminating the stock from their
portfolios.
Gimbel and Murphy

favorite

holdings.
Among

N.

Care —Public

,

ing 12,800 shares, three completely

the

in

Children

for

States:

Lose

—

42nd

Federal Tax System of the United

Safeway was the least popu¬
issue, five managements sell¬

lar

two
managements
it from their port¬

while

36,

Dictionary

Williams—Henry

indexed.

20th

West

York

Child

the

of

increased

that of

were

which

New

B.

Technological Change—Who Gets

Summary of Report of the Cali¬

and

Selling

Wilson

& Co., New York
(cloth)
$7.50 plain edges; $8.50 thumb-

Buchanan

S.

fornia Committee

1954/ Devoe

Merchandisers

agricultural

in

group,

on

English

&

Edwin

the

330

building

and Sherwin Williams.

Lead

during the earlier September
quarter. Case, however, met with

folios

FUND

Harvester

and

Fund,

previous

Carrier, Georgia Pacific Ply¬
wood and United States Gypsum.
Two
trusts
each
also lightened
holdings of Armstrong Cork, MacMillan and Bloedel, Ltd., National

31,600

W.

A.

Holt

Devel¬

Ellis—The

the

were

each

&

by

the

Care

Radia¬

Bridgeport Brass
were
also
each
bought by two
managements.
Sold
on
balance

fairly evenly dividend. Sell¬
ing practically dried up in the
tobaccos,
and
two trusts liked
American Tobacco on light vol¬
favored

S.

liked

best

during

as

Raynolds

pur¬

and Procter and
Transactions in Merck

both

Howard

and

and

Popular

American

three months of

manage¬

also

prices

Economic

to

opment—Norman

was

Street,

were

stocks

year.

totaling

funds

Poirot

cy;**-

Approaches

Olin-Mathieson

on

Gillette

ume.

50 State

balance

on

Pittsburgh

tor

Na¬

exceptions

five

L.

copy

were

RIttenhouse 6-9242

U/te

the

Reform—Paul

free—quantity
request.

four,

Carbon

Selling

Building

sales. Pfizer

or

by

Two

Gamble.
General Distributor

by five

by

by three
Agricultural Chem¬

Flintkote and

concentration

puiehases

ments,

CO.

&

BAILEY

A.

045 LAND TITLE

in

few

either in additions

GEORGE

Agarian

(cloth) $5.

City Bank of New York and
Northwest Bancorporation.

INVESTORS

.

Dr.

Chemical.

Drug Products found fewer

request

purchased
Chemical

Columbian

and

acquisitions

upon

and

two.

concentrated

tional

Prospectus

Spanish

Electrochemical

and American

man¬

Midland,

of funds.

A MUTUAL INVESTMENT

Fa¬

Cyanamid

Monsanto

was

Book

(1955)—Edited

Company, 950 University Av¬
enue,
New
York
52,
N.
Y.
(cloth) $3.

—Foundation for Economic Ed¬

Allied

request.

Year

concen¬

issues.

Union

trusts,

on

Africa:

Guide

vorite

couple

SOVEREIGN

quantity prices
Southern

fairly well

were

American

Pla¬

New York 20, N. Y. (paper),
single copies without charge;

za,

transactions

were

Tax

—

Foundation, 30 Rockefeller

ucation, Inc., Irvington-on-Hudson, New York
(paper), single

Commercial

Acceptance.

School Teachers' Salaries in
Large
Cities
1954-1955
The

were

.Carbide, six manage¬
acquiring 31,200 shares of
Cyanamid and 11,500 of Carbide.

Finance

Credit

were

Administration,

University, Colum¬

(cloth).

Gordon-Brown—H.

over-all

individual

three

Mead

and

sold

Pacific

and

16,200 shares.

ments

agements
Industrial

received

vorites
and

Bene¬

acquired by three

were

sales equaling

Westing-

on

purchases

in

trated

three

shares of

shares

the

as

from

four

and

State

bus, Ohio

during the Sep¬

as

chemicals

divided,

quarter, four trusts acquiring

each

srriall

comparatively

as

in the

pur¬

Insur¬

total of 44,000 shares, one mak¬

ing

shares. Partially offsetting

18,767

eliminated

was

two

Fund

divided

Electric

Although

portfolios. C. I. T. Financial was
better bought than in the Septem¬
a

Paper

found

each

Fireman's

Stevens, three purchases
20,900 shares offsetting

totaling

Ohio

tember quarter.

were

Co.

ance

and pulp

shares

Na¬

managements

purchasing

6,000

house

acquired
by three
and Boston Insur¬
and U. S. Fidelity and

and

sold

J. P.

on

Commerce

Raytheon,

continued

Connecticut
Lincoln

Life

chasers.

of

former

funds

and

the

Also

seven funds, Celanese
Corporation
by four
and
Duplan
by
two.
Opinion was fairly well divided

Square "D"
Tecumseh Products. Opinion

Sylvania,

an

in

shares.

300

bought

were

contrasted

as

Genefal

liked issues in the paper

were

Insurance

previous quarter.

Champion Paper and Fibre and
Tulip Cup were the best-

six

balance

even

Lily

Gair

issues

Insurance
on

Belt.

a

of

Stocks

this

Two trusts each disposed

holdings in

Funds

Buying

Steady

making initial

were

Also
bought on balance were Zenith,
Beckman Instruments and Philip's
Gloeilampenfabrieken.
Profittaking continued in General Elec¬
tric with seven sales totaling 95,-

Thursday, February 17, 1955

...

ZONE.

.STATEL

Address

City

\

Volume 181

Continued

Number 5404

from first

...

The Commercial and Financial Chronicle

and,

r

page

(839)

suspect,

we

be true that

As

We See

few hundred

It

defend San

knowledge of the facts is insufficient for any
such judgment even if there were no other
difficulty.
Neither are we
attempting to advise the Administration
as to what current
program should be adopted. The exist¬
ing situation is complex and includes certain imponderables.
Our Present Situation
•

'

We do not think it amiss,
the

position

our

we

previous

■

,
?

~

•

<

however,- to ponder in print

find ourselves in at present as a result of
from formerly well accepted

deviations

principles of international custom. First of all, there is a
de facto regime in China which, whatever the 'reason or
whose-so-ever the fault, is firmly entrenched. So far as the
ordinary man can see or surmise, there is little or no like¬

miles

occupy

of

the

penalty for it. It may
and fortify bases within a

Asiatic

mainland

think of

we can

in order

other

no

investment

to

coun¬

We sometimes wonder if we should not.
profit by
sitting down and rethinking all these matters with the

It

apparently has the full backing of powerful Soviet.
along its border for thousands of miles.
By. steadfastly refusing to acknowledge its existence and
its apparently secure position we have
acquired (we avoid
the word earned) the
deep resentment and settled enmity
of that regime.
This Chinese

—doubtless

government—that is what it is, of

determined

course

good while ago to gobble up
Korea. That little country,
geographically an appendage'
attached to the mainland of Asia, has a
long and troubled
history. By what right Communist China is able to claim
it as really Chinese
territory we do not know, but in the
history of such situations abstract justice never has been
vital. After much vacillation we
finally decided to halt
the advance of Communism (or
Peiping or the Kremlin,
as
you prefer) down this peninsula. We succeeded in doing
so for the time
being at least—at the price of much treas¬
ure
and many American lives. But to what end? Who
a

doubts

that Northern Korea is by now inhabited mostly
by Chinese and others acceptable to Peiping? Who doubts
the intention of these patient and determined orientals to

take the remainder of Korea when the time
At the moment it is the

so-called

seems

ripe?

"offshore islands"

lying along the coast of the Chinese mainland that claim
attention. The whole world

the

whole

regards them as Chinese, and
United States, apparently

world, except the

regards the Communist regime in China

as

ment of China. Our recent actions
appear

to concede this

status

they

for

are

the govern¬

these

islands, practically speaking, at least if
not in actual use as stepping stones to an attack

Formosa. But they have been evacuated, so far as
they have been evacuated, only in the presence of very

upon

real Communist pressure. Unfortunately, our tacit consent
to their occupation and control
by Peiping may not, there¬

fore, much reduce the hostility felt by that regime toward
the United States.

world, including the United States,

that Formosa
belongs to China. But who or what is China? For us China
is Formosa—at present at least—and he would hardly be a
realist who supposes for one moment that in the foresee¬
able future the forces

on

Formosa

agrees

can

land

on

the main¬

Continued

boom

in

(1)

™

see

done—but the outlook

certainly is not bright.

„

Formosa

really have
the strategic military value often attributed to them—
particularly Formosa—we should not undertake to say.
The question is certainly debatable, and is debated in mili¬
tary circles. But it is certain that both have become in¬
volved

.

in

or

the

psychology of the Far East. It would not
be easy for us to yield either of them without losing what
is known as "face" seriously in the Far East. We can not
avoid the feeling that this embarrassing impasse could
somehow have been avoided
as
Britain has largely
avoided it except for her entanglements with us—by a
more
forward looking and realistic policy toward the
—

countries of the Far East. We havfe

rules of the game nor
rules of our own.

neither followed the

succeeded in setting up effective

new

powers.

In still other ways we have been and still are scorn¬
traditions in this field of international relations,

of




most

are

man

helpful.
that these are

say

just talk-fests.

Ideas

potent force in the

are

the most

world.

To

be

given the opportunity to share in
the

formation

of

ideas is to. par¬

ticipate creatively in government
at the most effective point.
Your

of
to

own

recent

Association, through
series

snendine

was

spending was

1T>

,

.

freedom

to

its

use

j

est

most

in making the E and H Bonds
eligible for purchase by personal
t accounts beginning the first
of January this year. We believe
s^.ep meet,s a substantial need

avoid

further

increases

in

bank

of long term objectives

blending
and

bonds issue

practical short term require-

neriod

part

was

readiustment

of

was

'inevifableWhenit became reallv
c?ear that the turn had come, tne
the
ciear

mat

problem

tne

of

tuin

naa

fiscal

and

come

monetary

policy was abruptly changed. The
problem then was to cushion the

and

useful.

For

giving

are

great

us

encouragement in our difficult
tasks, both in helping us solve our
Problems and m explaining them
° your own members and others,
thus makmg significant progress

tbe vital work of broadening
the base of mutual understanding,
To avoid misinterpretation and

the

of

illustrations

these

To

ments many more could be added,
of this program.
In a quite different field, the
The policies appeared to be ef- farm
program is a particularly
fective.
The inventory boom be- striking case. It has as its objecgan to flatten off
The bulge in tive tbe restoration of freer marconsumer credit was checked. Dekats and the reduction in governfense orders were brought under ment intervention, in supporting
control.
Prices and regulating production.
A

Treasury. You

restricted ownership.

credit.

The 3*4%

violating the principle of

without

welcome

program, I wish to express
the appreciation felt
by us in the

is the action

this audience

to

bringing state banking leaders
Washington each spring is also

this

Of special inter-

the regulations.

(3) Debt management sought to

keep

the

balance

of

the

scales

even, let me return to an earlier

thought.

We must

never

under-

rate the chances of attaining long
term aims, even against heavy
odds. In politics, it is all too easy
to blot out the forest with trees. >■
It is too easy to yield to the temptation to outbid the opposition at
the sacrifice of principle,
A

relentless

determination

to

ASt a Practlcal matter, thls cpujd achieve great aims is just as neconkbe, don? gradV.ally> £or both essai'y for Progress as a wise purP°lltlcal To have made the
and Practical economic suit of the "Art of the Possible."
reasons.
change

nll

onop

much

of

w

„tatP

it

annth*»r

nrav.

another way.

would have Droved too

The

reasonable man adapts himself to

shock

a

m^ison just this kind of issue XStffn teytefthe
tot!ke thaJ Washington and New York Urld to himself® Therefore, all
bfMonfn derstan^^ach'-other's3 language"
—a-

courage" private'ac
tions

in

the

Mtv'

spending and reducTherefore,

government

inventories.

Federal

Reserve

System

turned its money

policy to

active

reductions

Tax

ease.

one

of

were

nut into force.
put into force.

On

the

offer

interference to

no

managewas

the

to

stim-

spending.
good

a

and

good

a

market

curity issues.
with

tion
the

was

for

To avoid

new

se-

competi-

these

markets, most of
in the summer of

financing

1953

lack of agreement and dilution of
influence

those

of

who

agree

on

What can be done about it?
Agreement would be easier if the
leaders of business and the lead-

politics and all our other
building and business leaders lived in the same town
This meant the need and met each other in the daily
market for mortgages course of events at lunch, at din-

ulating forces in the economy-in

for

"Why don't they stop pussyfooting?" says the business man. Of
such misunderstanding is bred the

high principles.
debt

of

side

ment, the important thing

done

short

in

term

is-

,.

Al

,

,

These_were the practical aspects
situation.

from

a

It

was

not

a

situation
ttealWsaituaa«on JU

" P

tical

ner, and at

w

,

,,

»°Pe that our friends in

,

lnyj Wld understand

sympa-

2,

ly °Yr dadY practical
P^°.Dlems- We hope, also, with
Hleir greater detachment from
wi.u steadilyf th
undlr1v?n«
*tbehfrc;at ™
™Jflch lon^ term progress degreat

Elected Director

golf. We need the best

'

substitute.
?t"TMilton Mo¬
My principal suggestion is that
7'
r *s> Upham & Co.,
business and banking as well as Kansas City has been elected to
other important elements in our the board of directors of Bramff
^

gesti0ns

re-

term objective

long

ers of

society give further attention to
developing their constructive sug-

'

to government.

jn

encjeavor

going through

we

wholesome

a

are

revo-

international Airways, it

was an-

nounced by Chas. E. Beard, President, following a meeting of the
airline's directorate here,
Mr.

McGreevy's

return

the

to

~ ago when trade was, not so pres- airline>s boartof
luti01\Thet day asociations long

absence of 17 months due to
the pressure of other business. He

an

Gradually, beginning in September,
1953,
the
intermediate

ented to

market

and further
distributing

nothing more than a list of what
the members of the association

the debt in the 2- to 9- year ma-

wanted from government in their

steps

opened

were

up;

in

taken

period,

ability

without

pressure

of funds.

any

un-

the availOn eight occaon

sions in late 1953 and during 1954,
the debt

extended, but always

was

within the bank

month, with a stronger
business situation, it became clear
that long bonds could be issued
without doing damage to recovery.
Hence, it was possible to
move more boldly toward the fundamental objective, and
the 3%
40-year bond was floated successfullyDuring this whole period when
the

market

freely

for

bonds

was

of

viduals.
eral

we

Savings
To

Bonds

encourage

to

sales,

indi¬
sev¬

changes have been made in

the government

recommendations

a

series

which

were

selfish interest. This still happens
now and again,
But, fortunately, we have been
moving
away
from this futile
piece of self-service. A number
business

and

banking

co^foaod respect for objectivity,

reahsm, and devotion to the pub®rfy*

T,

*

IA

special tribute to
Sioups of bankers, investment

bankers, and insurance executives
who, several times

first

a year, come

to

was

elected

the

to

board

of

Mid-Continent Airlines in March,
1940, and continued to serve as a
director

of Braniff

merger

of

the

following the

two

airlines

in

August, 1952, until his resignation
in September, 1953.

groups

are now developing policies that

Hirsch Adds Two
Hirsch

& Co.,

New

York

New

25 Broad Street,
City, members of the

York

nounce

that

Stock

C.

Exchange,

Wesley

Lee

an¬

has

become associated with the firm's

Bond

Department and that G. V.
Westernhagen has joined the firm
as a registered
representative.

Washington and spend hours with
jn discussing Treasury financ-

us

not

made
steady
progress toward a broader distri¬
bution of the debt by increased
open,

of

of

area.

This

sales

ful

,

allowed

was

desirable

Whether either South Korea

the

avoid

The Federal Reserve System

turity

To Save Face

keep

thus

collapse.

checked

7,
(2)

to

and

Government

treat

any

play

bounds

eventual

an

of the

such venture.
Without question we can deny Formosa to the Com¬
munists indefinitely, but to what end? Possibly some
peaceful "settlement" of this issue can be found which
will yield two Chinas—as it is said the British would like
to

into

put

once

lend

and treasure to

no

House discussions, is sup¬
plementing the valuable work its
Washington committees have been
doing. Your Association's program

6

page

Of the Possible"

land and take any substantial part of continental China.
It is unthinkable that we should find it to our interest to
man-power

Let

Arden

from

"Politics Is the Art

gue

our

and

purposes

of reports on
monetary policy and through the

particular,

Then there is the Island of Formosa itself. The whole

sev¬

to the Federal Reserve Board, the
Adviscory Council of the Depart¬
ment of Commerce, and the Ad¬
vertising
Council serve
similar

the

lihood that it will be overthrown in the foreseeable future.
Russia which lies

On

days, the turnover was $2*4
billion in getting the $15 billion
of ne\v issues into the right hands.
The Federal Advisory Council

'

care.

institutions.

eral

erally accepted had they been made. Policies of this sort
in the past have
invariably been part and parcel of im¬
perialistic plans and ambitions. We hardly need be sur¬
prised therefore, if Asiatic countries—long victims of im¬
perialism of the West — find it difficult to believe our
protestations of imperialistic disinterestedness so long as
we insist
upon this type of defense, of our coasts.

utmost

co¬

operation of bankers, dealers, and

made such claims in the past—and it is

ever

extraordinary

to the

measure

pay a

than doubtful if such claims would have been
gen¬

more

'

having to

must

Francisco, but

try that has

times. Our

are

we

39

ing

and,

Their counsel

in

serve

to

addition,

the

meetings

bridge many gaps in

un¬

derstanding.
The

success

nancing

was

Seaboard Securities

... invaluab!e>

WASHINGTON, D. C. — Sea¬
board
Securities Corporation
is
engaging in the securities business
from

of

due

the

in

recent
no

*

fi-

small

offices in

the Tower Build-

ing. Paul L. Badger is a principal

of the firm.

^

40

The Commercial and Financial Chronicle..

(840)

Continued

from

page

est

Equities

3

The movement of equity

prices
during the postwar period has
also not performed according to
previous standards.
The equitv

The

Impact of Postwar
Experience on Trust Investments
and

indebtedness

con¬

cause

Developments in the money and

public capital markets in 1953-54 offer a
and private borrowers. Secondly, valuable lesson to
those inter¬
wage rates are high and costs of ested in buying a fixed-incomeproduction are still increasing. As bearing security. First, the credit
stated before, a decline in wage policies of the Reserve author¬
rates is not likely; hence costs of ities are
guided primarily by the
production are bound to remain trend of business activity. Should
high. Thirdly, the government is inflationary
pressures
develop,
a

policy of full em¬

expansion,

economic

ployment,

and maintaining

farm prices.

all

factors

probability continue

to inch

upward, thereby further slowly
decreasing the purchasing power
of the dollar.

development. His¬
World War II did not
repeat itself. Since the end of
World War II, we have witnessed
the greatest boom and the great¬
est inflation. However, this boom
This is

a new

tory after

inflation

of

period

and

as

ex¬

pressed in terms of commodity
prices have not been followed by
a
period of depression and de¬
flation.
Naturally, the invest¬
ment officer who is mindful not
the need to maintain a
trust
fund
intact in terms of
money but also as far as possible
preserve the purchasing power of
the trust will have to take this
development into account. It adds
a new experience
to his fund of
of

only

the

moment

The

inflation

of

forces

give

and

way

elements of deflation appear,

some

the monetary policies

will under¬
change and money rates will

go a

lower.

become
.

Experience during 1953-54 also
securities

ernment

that

that

such

to

have

do

liquidity which

attributed

gov¬

not

demonstrated

clearly

generally

was

obligations up

beginning of 1953, and they

to the

subject to the same degree of
fluctuation as other high grade
are

While

bonds.

remain

they

the

prime investment throughout the
world

while

and

abso¬

is

there

risk attached to them,
they fluctuate like other money
bonds
with
the
money
market.
lutely

no

factor

has

particularly
looked
term

to

be

considered

by

This

those who have
medium and longer

upon

obligations

government

as

liquid assets which could
at any time without any risk be
converted into other types of se¬
curities, stocks or other bonds.
highly

The Outlook

for Money

pegging of government
definitely
abandoned
rightfully so) and with a

securities

(and

flexible

credit

policy

in

Interest Rates |

interest rates
World War II also did not

The

force,

rates and bond prices will

{hence

of

interest

of

movement

bond

prices,

rates,

will

be

of previ¬ guided primarily by demand and
ous postwar periods.
After World supply factors, which will reflect
War I, for example, interest rates the influence of business condi¬
rose sharply, particularly
during tions and the credit and debt
the initial period of the inflation management policies of the mone¬
repeat the performance

and

only

declined

then

in

slow

After World War II, in¬
terest rates remained at exceed¬

stages.

ingly low levels until 1951 when
the accord between the Treasury
and the Federal Reserve

occurred

pegging of government
security prices was abandoned.
After the accord in March, 1951,
until the middle of 1953, money
and

the

but the rate of return
peak remained low

rates rose;

at

even

the

with previous periods.
rates from
1951 to 1953 resulted primarily
from a coincidence in that the de¬
mand
for funds from both the

tary

authorities.

The

the trust officer.

when

business

either

sell

to

to

assume

boom, it is time

a

refrain

to

or

from

fixed-income-bearing

buying

se¬

curities.

Only after the boom has
passed its peak is it time to con¬

dicates

policies of the Reserve
in the

now

that

has

ease

making in¬
policy of active

the

been

abandoned

and

is

being replaced by one of flexible
neutrality.
Should the boom in
the

equity

market

continue

and

should the supply of home mort¬
gages

high

gear,

been

tures

of the Federal Government

it

impossible to

balance the budget

but forced the

only

made

Treasury to appear as an impor¬
tant borrower in the open market.
Since inflationary pressures were

present, the policies of both the
Reserve authorities and the Treas¬
ury

underwent

considerable

a

change.

However, this policy
change
was only short-lived.
As soon as
business activity began to show
signs of decreasing, the credit pol¬
icy of the Reserve authorities and
the debt management policy of
the Treasury underwent a consid¬
erable change.
Money rates in
first

half

siderably

of

and

1954

continue

large

as

one

to

of

restraint

higher

bond

which

it has

money

will

rates and lower

have
The

acceptance

by investors of the fact that the
inflation
a

in

result

of

the
the

character.

in

resent

of

United

States

as

is permanent

war

Since

equities

rep¬

tangible values, the belief
investors

many

in

crease

the

tangible

that

dollar

the

in¬

valuation

of

underlying

properties

equities is permanent in character
bound

was

to

have

effect

an

develop¬

political

ments after World War II also dif¬

materially from any similar
After
every
major
in the past, the armies of the
United States were disbanded and
fer

experience.
war

military expenditures were dras¬
tically reduced. After World War
II, however, as a result of the ag¬
gressive attitude of international
Communism and the outbreak of

United States
spend billions of

the Korean War, the
forced

was

dollars

to

at

defense

national

on

the econ¬

home and to strengthen

establishments

omies and military

which

research

on

created

new

products and new methods of pro¬
duction, and by the large outlays
by corporations for new plant and
equipment. A dynamic economy
the creation of

means

and the destruction of

It

leads

to

a

to

an

increased

to

older

ones.

competition,

large number of failures, and
accentuation

such

In

movement.

of the
an

The

widespread belief that a
depression is not in the
making in the United States and
business

pattern

merger

economy,

becomes of prime
importance, since the quality of
management, more than anything
else, determines the success and
failure of

after

a

company.

The dynamism of the

American
increases the burdens
and responsibilities of the trust
ence
has
also
affected
equity, officer in some respects, but in
prices.
Other contributing factors others it makes his task easier.
War

II

been

have

low

will

major

previous

the

from

the

and

capital gams tax rates.

economy

experi¬

maintenance

rates

money

differ

postwar

of

high

Hence, in

A

growth

more

tends

economy

be

to

in character.

stable

It goes

have to consider factors which in
the

moderate.

future

timing his

in

the trust officer, in
equity purchases, will

past played only

the movement of

minor role

a

equity prices.

This

development

is

favorable effect
the dividend policy of some
Taxation
corporations and thus make the
Developments in taxation after equities of such companies more
likely to have

a

on

World

War II
the

in

also

differed

past.

major war, taxes
but the moment

from

attractive

During every Similarly, the creation of larger
increased; economic units through mergers

were

hostilities

were

Ffdend expenditures

were

drastically reduced, followed by

normal and at the
surtax
are

corporations

the

only, relief granted to corporations

^moval of the excess
reduction

nfnrf61?

social

conditions.

which

practices

Traditions

decade

a

suitable

bearing

The

to

to

of

in

bonds

unless

lower

than

ment,

is

future.

securities

market,

may

and

and

the

such

the

the

demand

—

large

very

increase

supply

available

fixed-income-

obligations

mortgages—is
bound

in

while

not be equal to
the

govern¬

through its refunding

op¬

prior to the adoption of the credit

erations,

restraint policies.

long term government obligations.

increases

the

supply of

information

phases

movement

efen^idi remai? high; and for"
one form or another
wpiThnue' pos.sibly at a lowe'
level. The expensive farm
support

in

ago

be

not

may

advisable

or

today.

The

of

influenced

pri¬
activity and
demand for

both

on

enable

to

formed

officer

of

the

to

these

well

in¬

formulate

an

opinion.
As regards

equities, the timing
extremely difficult and per¬
haps more so now than before be¬
cause
experience sinee the war
is

has demonstrated that the equity
market does not forecast business

activity in general

does

nor

the

movement of

equity prices always
reflect prevailing business condi¬
tions
or
earnings of individual
companies.

likely
even

to

Since

play

in

officer will
sider

equities
the future

are
an

important role in trust

more

investments than

before, the trust

be compelled

to

con¬

not only

the old and tested
measuring rods but will also have
to develop new ones based on the
postwar

economic

developments.
In

and

financial

..

respects, these changes

some

have made the task of the invest¬
ment

officer
more
difficult; in
important, perhaps the most
important, aspect, they have made

one

it

easier.

The economy has become
stable, and the wide swings

(1)
more

in

production

such

and employment
experienced in the past
anticipated. While a free

as we

not

are

dynamic
have

the

is bound to>
downs, a major

economy

its ups and

depression

the

of

1930's will

proportion

be

of

avoided.

(2) The economy of the coun¬
try is sound, its productive capac¬
ity is great, efficiency and produc¬
tivity

are rising, the economic se¬
curity of the people is high and

increasing,

living

standards

are

rising, and the population is grow¬

ing faster than
ble

a

was

thought possi¬

few years ago.

(3) The forces of inflation have
their course, and there are no
signs of serious deflationary pres¬

run

sures.

(4) The international political
situation, while still abnormal, has
improved; and the economic re¬
Western

of

covery

has

Europe

been remarkable indeed.

(5)

The

longer range outlook
for the United States is favorable1
indeed.

A

$500 billion

gross

potentialities.

our

All

na¬

definitely

these

factors

make

it

feasible to adopt longer range in¬
vestment policies without fear of
crises and violent fluctuations.
gives

assurance

rities

are

that while

It

secu¬

bound

to fluctuate, a
well managed company will find a
growing market for its products,

which

will

be

reflected

in

its

earnings.

gards

f,!m

*•

program

these

will

be

maintained.

expenditures

All

impose

a

<5 °n the- Trea?ury and do
offer

not

immediate prospect

any

material

a

accounts.

outlet

the
is

basic

fn thl
Ual*a?d corP°rate taxes
nJ? near future is will likely.
Defense expenditures not in all

considered
generation or

were

sound and proven a
even

and

war

marily by business
by the supply and
capital. There is ample statistical

(6)

reduction

of

the

principles, however, as re¬
trust
investments,
never
change. They are preservation of
principal, both as to the amount
terms

possible
of

the

of

as

far

purchasing

dollar.

power

stead¬

who

supply
of
taxexempt securities will be large for
quite some time to come since the
pent-up

as

demand

for

works

The

ing.
an

is

even

as

all

the

kinds

current

of

large and is still
revenue
more

the future
cause

well

than

bond

will

play

important role in
in

of the large

the

past.

Be¬

supply of tax-

exempt securities in prospect, the
rate

of

interest

they will

carry,

irrespective of the trend of inter¬

Langen
Adolph

has
G.

joined

the

Thorsen,

staff

735

of

North

Water
Street.
Mr. Langen
was
previously with Bingham, Sheldon

in

& Co. and Cruttenden & Co.

terms

function

of
of

is

money

trust

fund

the

sole

manage¬

caused the beneficiary not
only to lose half of the real value
ment

the

trust

The

fund

since

1940

trust

real

problems

officer

and

before

his

General Funds Co. Formed
PHILADELPHIA, Pa.—General

but

the

Funds

Co.

has

offices

at

1518

in

engage

a

been formed

Walnut

securities

Max Fischer is

a

with

Street

to

business.

principal of the

firm.

committee

E. W. McWhood Opens

are:

(1) To strike

public fixed
grow¬

(Special to The Financial Chronicle)

MILWAUKEE, Wis.—Victor O.

fastly adhered to the principle
that maintaining the corpus intact

of

The

Joins Adolph Thorsen

as

Those

to

as

and

money

In the long run, however, and
This in turn means that tax- also affected adversely the trust
eliminating
temporary
cyclical
exempt securities are likely to fund income because of the low
fluctuations, the trend of money
a
more
important role in rates on prime fixed-income secu¬
rates is not up, primarily because play
trust investment even in smaller rities.
the supply of funds which will
an

that

rates

within

profits tax. A material

tax burden.

seek

interest

able for trust investment.

Conclusions

the

since the abandonment

as

onstrated

a

Trust
investment management
rates, as far as individuals must be adapted to the rapidly
cbncerhed, has been moderate changing economic, political, and
f
of

well

as

of equities

tional product in 1965 is

tax

are

case

before

adds to the list of securities suit¬

substantial reduction in tax rates.
After World War II, the reduction
in

investments.

trust

as

bonds, this is not

in the

as

experience

of the practice of pegging govern*
ment securities has clearly dem¬

without

saying that a free econ¬
omy is bound to have its ups and
downs; but in a growth economy,
the
swings
tend
to
be
more

the

as

values

new

management

major

the

period has been marked by great
dynamism based on the growth of
population, the huge expenditures

on

equity prices.

ot

considerable,




equity market
been
discussed.

?i?oe^ent „of equity Prices in
1953-o4 reflected the

lead

prices.

con¬

were

as

in the immediate past, it is
probable that the policy of flex¬
ible neutrality will give way to

declined

the second half of 1953 and in the

the

highest level in history, and

ing this period was

not

fecting

already

rat?
rates

authorities

International

As regards

difficult
since

penditures for national defense
equity will continue to play an impor¬
prices, particularly those that can¬ tant role in the economy of the
not be quantitatively determined,
country.
such as the psychology of the peo¬
Economic Trends
ple, will therefore have to take
The
place.
economy
of the
United
Some of the newer forces af¬ States during the entire postwar

bearing securities.
the credit

bracket.

lower income

a

influence the movement of

sider investment in fixed-income-

The change in

even

reconsideration of the forces that

It indicates that

begins

the character of

compared

operating in
the defense expendi¬

is

1953-54

therefore of considerable value to

The increase in money

public and private sector of the
economy was very large.
In spite
of the fact that the economy dur¬

of

in

are

likely to be satis¬
to individuals who

is

rates,

factory

of its allies.
This does not seem
ing weight in the future to these
to be a passing phase, and in all
newer
factors, particularly since
probability these large expendi¬
equities promise to play an even
tures will continue in one form
more important role in
trust in¬ or
another for an indefinite period
vestment than in
the past.
A of time.
Hence, government ex¬

those

experience

1948

to

the fact that business
activity in 1947 and 1948 was at
a high
level. During the period
of readjustment in 1953-54, the
equity market rose rather sharply
in spite of the decline in business
activity, the lowering of profit
margins of some companies, and
the increase in
unemployment.
The equity
market was appar¬
ently influenced by factors other
than business activity. The trust
officer will have to give increas¬

World

Rates

With the

fluctuate perhaps more in the fu¬
ture than in the immediate past.

The movement of
after

money

somewhat

and

interest.

of

which will result
market condi¬
higher rates

policies

tighter

tions

money

knowledge.

expect the adoption of

may

credit
in

combined
therefore — and many others can
be mentioned—lead to the con¬
clusion that the commodity price
inflation which has taken place as
a result of World War II and its
aftermath is permanent in char¬
acter. An appreciation in the pur¬
chasing power of the dollar, which
naturally would help holders of
fixed - income - bearing securities,
is unlikely. On the contrary, the
trend of commodity prices will in
these

All

one

1946

in

in spite of

siderable difficulty both to

committed to

declined

market

prices would increase the burden The Experience of 1953 and 1954
of

.Thursday, February 17, 1955

t

-

income

-

a

balance between

bearing

securities

BLOOMFIELD, N. J.

—

Edward

W. McWhood

is conducting a se¬
business from offices at

and equities.

curities

(2) The selection^ of the indus¬
try groups and of individual com¬

49 Vernon Terrace.

pany equities, which because of
the dynamic
changes in the

American
more

economy

has

Reynolds-Raynolds Co.
SALT LAKE CITY, Utah.—Rey¬

become

nolds-Raynolds Co. is engaging in

complicated.

(3) Timing of purchases
sales of securities.

and

a

securities business

in the

from

Judge Building.

offices

Volume 181

Number 5404

Continued from

..The Commercial and Financial Chronicle

.

5

were

slightly below the

cerns

page

succumbed with liabilities in

21

The State of Trade and

last

On

a

seasonally adjusted basis, private home starts in January
at an annual rate of
1,424,000, which compares with an annual
rate in December of
1,473,000.

Steel

Output Scheduled This Week to Rise to
88.2% of Capacity

The second half ought to
bring pretty good business to the
steel market, despite what
may happen in the auto industry, says

"Steel," the weekly magazine of metalworking.
monly

that

assumed

much of their

After

that

the

auto

producers

It has been

trying

are

to

com¬

pack

as

remaining months

17

points from the present rate, you have a 71-point rate,
points higher than the rate in many weeks of
last year. Of
course, if the auto industry dropped completely out
of the market for steel for a
long time the effects would be so
widespread that other steel consumers would need less
and that is several

and the steel rate would

drop by

more

cut, declares this trade weekly.

steel, too.
than what the auto industry

purchases by half, it would knock only nine
current

steel

rate.

That

would

leave

capacity.
It is possible there won't be much of

a

a

10 points out of

or

rate

of

around

78%

drop in the automotive

industry's steel
General
mind

sharply last week to stand at $6.77

to

demand, since Harlow H. Curtice, President of
Corp., states that "at no time have we had in
provide inventory against a. possible work
interruption."
if

auto

demand

for

steel

consuming groups that will make
is one, "Steel" points out.

slows

down,

there

seasonal increases.

other

are

Construction

The American Iron and Steel Institute
announced that the op¬
erating rate of steel companies having

96.1%

of the steelmaking
average of 88.2% of

capacity of the entire industry will be at an
capacity for the week beginning Feb. 14, 1955, equivalent to
2.129.000 tons of ingots and steel for
castings as compared with 86.8%

before.

annual

capacity of

For the like
duction

week

a

2,080,000 tons.

placed at

was

comparable

125,828,310

month ago

A

year

1,779,000 tons

or

ago

the

rate

the

74.6%.

tons

of

as
was

actual

The

weeks in

Jan.

1955 is

1,

1955.

83.2% and

weekly

pro¬

production

operating

rate

is

not

the

The

Electric Output Shows Moderate
Recession From the
Ail-Time High Record of the Previous Week
of

amount

light and

electric

energy

distributed

by

the

electric

industry for the week ended Saturday, Feb. 12
estimated at 9,922,000,000 kwh., a decline from the alltime high record established in the
previous week, according to
1955,

power

first

the

Loadings Drop 0.2% Below Prior

Week

the Association

of American

Railroads.

on

to

Ruddick

Loadings for the week ended Feb. 5, 1955 totaled 640,735
cars,
increase of 16,350 cars or 2.6% above the
corresponding 1954
week, but a decrease of 49,878 cars or 7.2% below the correspond¬
ing week in 1953.

vertising

Capacity Rises 1.3% Above
Set in June

The automobile

1955,

according

estimated

previous

to

167,095

cated

week.

"Ward's
cars,

The

output of 771

manufacture "Ward's"

Automotive

The Past Week

and

with

compared

past

week's

units,

164,265

production

assembled

(revised)
total

of

in

The

commodity

general

lower the past

level trended

price

of

&

wholesale commodity price index, compiled

daily

Bradstreet,

in

ence

the

the

bread

in

merchandising,
public

He

is

II

cars

and

decrease below the preceding
units, states "Ward's."
Current weekly car

notes, is 1.3% above the previous record of
1950 week and 1.7% higher
than the previous week's
164,265 completions.
164,876

cars

Last

set during the June 12-17,

week, the agency reported there

in the United

States.

This compared

14,822 trucks made
18,425 in the previous

were

with

week.

as

the

was

Commercial
ended

Feb.

and

10

industrial
from

Bradstreet, Inc.," reports.

264

failures
in

declined

to

238

the

preceding week, "Dun &
Although casualties were down mod¬

erately from the 277 which occurred last year, they exceeded the
comparable 1953 toll of 200.
Failures were 25% lower than the
1939 level of 318.

Failures with liabilities of $5,000 or more
dipped to 207 from
in the previous week and 244 in the
corresponding week of
A decline also took

place among small casualties,* those in¬

volving liabilities under $5,000, which




fell

to

31

from

40,

and

Dartmouth

Captain in the Air Force.

a

duties he will direct

new

Exchange's

advertising

enlarged national
in

program

broaden

stock

sound basis.

542

daily

ownership

He will also

on

a

concen¬

trate

on an expanded program to
help Members and Member Firms

ago.

of the

The

world

market developed

sugar

firmer tone

a

New York Stock Exchange
develop their advertising and sales

trading

as

expanded sharply at mid-week.
Cocoa

under pressure

was

Warehouse
for

promotion activities.

in late trading and prices worked

largely by the sharp break in the coffee market.

lower influenced

of

stocks

cocoa

at

showed little change

94,323 bags,

78,658

the week and compared with

a year

Dallas Power &

ago.

during
the week. The sharp break followed action over the week-end by
Brazil to bring prices down to the world competitive level by
increasing bonus payments to exporters.
coffee

Brazil

trended

prices

held in

a

toward

downward

about

dropped

7

cents

a

pound

Halsey, Stuart
associates

sales of the staple in

Reported

decline and totaled

Co. 314%
due

at

entries

in

the

week

ended

Jan.

28

were

of

the

reported

mon

of

Registered Slight Declines For Week

from

the

be

Weather Earlier in the Week

the

shares

bid

a

company's
for

the

that

for

of

with

of

operations,
for

other

The company
construction

will

of

com¬

derived

construction

and

its

1955

expenditures

sale

funds

facilities

program

shopping in the latter part of the period ended on
Wednesday of last week was insufficient to make up for very
light sales accompanying cold weather earlier in the week. The
dollar volume of trade was slightly below the level of both the
preceding week and the corresponding period a year ago.

com¬

on

earlier sale of

and

used

new

estimates

Heavy

was

the

corporate purposes.

Due to Light Shopping and Cold

by

won

at

together

additional

stock,

from

will

Trade Volume

was

from

proceeds

39,182

of Jan. 28.

as

issue

debentures,

proceeds

4,999,800 bales of 1953 cotton

and

101.70%.

pre¬

43,400 bales, against 68,202 a week earlier. Repayments during
latest period were 20,400 bales, leaving loans outsianding on
on

the

underwriting group
petitive sale on Feb. 14

the

1,880,700 bales of 1954 cotton, and

of

the

Net

loan

Inc.

offered $7,Power & Light

interest, to yield 3.125%.

Award

ceding week.
CCC

Co.

15

sinking fund debentures
1, 1980, at 102.15% and

Feb.

accrued

14 markets continued to

the

194,300 bales, against 314,100 bales in the

&

Feb.

on

000,000 of Dallas

range most of the week and
close.
Bearish factors included

narrow

the

Light

Debentures Offered

profit-taking, hedge selling and liquidation influenced by a fur¬
ther drop in loan entries. Domestic mill demand was less active,
while export sales continued in limited volume and consisted of
numerous small lots for immediate and nearby shipment.

result

in

approximately

$20,000,000.
The debentures will be redeem¬

able at general redemption prices

ranging from 105.15% to par, and
at special redemption prices re¬

esti¬

mated by "Dun

ceding from 102.15% to

par,

a

accrued interest in each

case.

& Bradstreet, Inc.," to be 3% below to 1% above
Regional estimates varied from the comparable year-

year ago.

levels

by the following percentages: East —4 to —8; New
England and Midwest —2 to —6; Northwest —2 to -f2; South -f 1
to +5; Pacific Coast +2 to +6; and Southwest -f-4 to -j-8.
Although total apparel sales were considerably lower than
in

the

previous week, the demand for higher-priced Spring

women's coats,

and

suits and furs
men's

of

Most

buyers

Dallas

were among

apparel

were

reported

the

more

greatly

is

mer¬

Reserve

index

for

the

light

ended Feb. 5,
In the preceding

the

1955,

trade

previous

Howpver, sales

period

in

week

were

only

York

with

last

the

slightly

week

advent

showed

of

improvement

warmer

weather.

higher than those of the like

a year ago.

all
of
>

in

was

of

for

the

reported.

1953.

four

weeks

ended

Feb.

5,

1955,

an

increase of 1%

For the year 1954 the index advanced 2% from that

Electric
is

and

in

trans¬
sale .of

and

power

supplied

Dallas

the

County.

the?

to

territory

For the year

areas,

Population

served

is

mated by the company at

1953, the

esti-

622,000.

company

reported total operating revenues
of

$27,918,000

$4,989,000.

In

and

net

income

of

unaudited report

an

for the twelve months ended Nov.

30, 1954, total operating revenues
shown

were

According to the Federal Reserve Board's index department
store sales in New York City for the weekly period ended Feb.
5, 1955. registered a decrease of 9% below the like period of last
year.
In the preceding week, Jan. 29, 1955, a decline of 1%
(revised) was reported from that of the similar week in 1953;
while

distribution

service

engaged

surrounding unincorporated

an

New

is

purchase,

Greater Dallas area, and adjacent

week

year.

increase of 2% (revised) was registered
iiom
that of the similar period in 1954, and for the four weeks
ended Feb. 5, 1955, an increase of 7% was recorded. For the year
1954, a gain of 8% was registered above that of 1953.
week, Jan. 29,

company

electricity.

unwilling to place heavy, long-term orders

Board's

The

generation,

mission,

trade

past

Federal

subsidiary of Texas Utilities

the

Spring stocks.

1955, declined 1% from the like period last

a

Co.

week, and the dollar volume of wholesale trade was
moderately smaller than the week previous. Total commitments
were considerably
greater than a year ago.
Department store sales on a country-wide basis as taken from
the

plus

&

Light Co., a
utility company operating
wholly within the State of Texas,

popular items.

decreased

Power

public

Clearances of Winter clothing continued, and

preparations for increasing

over

in

the

capacities.

of

newspapers,
national
magazines
and
financial
publications
to

Chicago Board of Trade last week declined sharply to 160,353,000
bushels.
This represented a daily average of 32,100,000 bushels,
against 44,800,000 in the previous week, and 41,000,000 bushels a

Retail

Business Failures Register Moderate Decline

graduate

a

In his

fairly steady and although receipts declined sharply they
were ample for the demand.
Stocks of corn in all positions on
Jan. 1, 1955 were reported at 2,799,000,000 bushels, the largest of
record and 4% above a year ago.
Sales of grain futures on the

the

a

management

relations

College and served in World War

greatly improved the condition of Winter wheat in many of the
drought-stricken areas.
Substantial export trade in wheat was
reported with large quantities sold to Greece and Japan.
Cash

year

Prior to that he

Merry Mites, Incorporated,

and

is said to have

in the Southwest which

publicity.

pro¬

institu¬

and

Advertising Agency, and
spent
eight years with Macy's New York

cereal, aside from political developments, was

receipt of moisture

product

ac¬
count executive at John A. Cairns

by "Dun
Inc.," finished at 278.73 on Feb. 8, down slightly
from 280.08 a week earlier, and comparing with 276.45 a year ago.
Leading grain markets were dull with prices mostly lower.
Demand for wheat was less active.
The main depressing influ¬
The

advertising, sales

and

sales and promotion
manager

was

the international situation lessened somewhat.

tension in

as

an

the

was

tional
week

ad¬

as

Mills, Inc., Mr. Wood¬
in charge of national

trade

motion

Far Eastern Tension Diminished

as

resigning

1950.

Cone

ward

Retailers

Reports"

Vice-

and

since

At

wholesale level.

Wholesale Commodity Price Index Receded Slightly

12-17, 1950 Week

industry for the latest week, ended Feb. 11,

trucks amounted to 181,919
week's

Previous Record

Lawrence,

sales
promotion
Cone Mills, Inc., New
York City, where he has been lo¬

total of the price per pound of
general use and its cnief function

foodstuffs and meats in

raw

is to show the general trend of food prices at the

chandise .increased.

U. S. Car

C.

Mr. Woodward is

The index represents the sum
31

ago

an

Wood¬

manager of

The total dollar volume of retail trade in the week

Loadings of revenue freight for the week ended Feb.
5, 1955,
decreased 1,244 cars, or 0.2% below the
preceding week, according

H.

raisins, currants, prunes, steers and lambs.

week's

Car

1954.

since

the

047,000,000 kwh., but

224

lowest

past week's dip

And Year Ago

output reflects a loss of 125,000,000 kwh. below
previous week, when the actual
output stood at 10,an increase of 1,238,000,000
kwh., or 14 3%
above the comparable 1954 week and
1,775,000,000 kwh. over the
like week in 1953.
of

week

the

was

This

to

is

number

Daniel

President in charge of Public Re¬
lations and Market Development.

the iIAiison Electric Institute.

that

current

appointed

ward, Jr. as director of advertis¬
ing and sales promotion, effective
Feb. 21, G. Keith,
Funston, Pres¬
ident, announced. He will report

Feb. 8, as against $6.85 the

on

reflected sharp declines in coffee and
cocoa, as well as lower prices for flour, wheat, corn, rye, oats,
barley, bellies, butter, sugar and hogs.
Commodities showing
advances in the week included hams, cottonseed oil, eggs, potatoes,

because

capacity was lower than capacity in 1955.
The percentage figures for 1954 are
based on annual capacity of
124,330,410 tons as of Jan. 1, 1954.

The

The New York Stock Exchange
has

when it was $6.75. It compares with $7.09
corresponding date a year ago, or a drop of 4.5%.

Cotton prices

a week ago.
The industry's ingot production
rate for the
on

Woodward Adv. Dir.
For NY Stock Exck

of this year

(revised)^ and 2,095,000 tons
based

The

week

week

Motors

Even

con¬

against

Sharply in Past Week

corn

It's not likely,
however, that the auto industry would be out
of the steel market for
long. If anything, the auto industry would
only reduce its take. If the auto industry were to cut its steel
the

as

The "Dun & Bradstreet" wholesale food price index fell quite

as possible.
continues this

uncertain,

are

ingot production rate is high enough now that it
could lose several points and still be
pretty good. In the week
ended Feb. 13 the rate was 88% of
capacity.
Annually, the auto industry uses about one-fifth of the
nation's steel, but right now it's
probably taking somewhat more
than that. So, at least 17
points (and maybe a few more) of the
current ingot rate stem from automotive demand. If
you subtract

of

$100,000,

1955 production in the first five months

the

trade paper.
The steel

those

Twenty-four

of

excess

"Wholesale Food Price Index Breaks

m

ran

toll of 33.

year-ago

week.

Industry

Private home starts in
January totaled 87,800, against 89,600
December and 65,100 in
January, 1954.
Public housing
starts, however, sank to only 200 in January,
compared with 1,400 a month earlier and 1,300 a year earlier.

41

(841)

net income

Also

ing

at

at

Courts

Brothers & Co.;

Thomas

and

participating in the offer¬

are:

curities

$31,811,000

$6,162,000.

&

Co.;

Stern

Dallas Union Se¬

Co.; Rotan, Mosle & Co.;
&

Co.

*

40

The Commercial and Financial Chronicle...

(840)

Continued from page

est

Equities

3

The movement of

equity prices

the postwar period has
performed according to
previous standards.
The equity

during

The Impact

also

of Postwai
Experience on Tiust Investments
prices would increase the burden
of indebtedness and cause
con¬

both to. public

siderable difficulty

Secondly,
wage rates are high and costs of
production are still increasing. As
and

private borrowers.

decline in wage
hence costs of
production are bound to remain
high. Thirdly, the government is
stated

before,

a

rates is not likely;

committed to

a

policy of full em¬

ployment,
economic expansion,
and maintaining farm prices.
these

All

therefore
be

—

combined
and many others can
factors

mentioned—lead

the

to

clusion that the commodity
inflation which has taken
a

War

of World

result

con¬

price

place as

II and its

is permanent in char¬
appreciation in the pur¬
chasing power of the dollar, which
naturally would help holders of
fixed
income - bearing securities,
is unlikely. On the contrary, the
trend of commodity prices will in
aftermath

-

probability continue to inch
upward, thereby further slowly
decreasing the purchasing power
ail

of the dollar.
This is

a new

development. His¬

War II did not
Since the end of

tory after World

itself.

repeat

have witnessed

World War II, we
the

greatest boom and the great¬
However, this boom

est inflation.

of inflation as ex¬
pressed in terms of commodity
prices have not been followed by
a
period of depression and de¬
flation.
Naturally, the invest¬
ment officer who is mindful not
and

capital markets in 1953-54 offer a

period

lesson

buying
bearing security.

inter¬

those

to

in

ested

fixed-incomeFirst, the credit

a

officer

tions

somewhat

and

The

interest.

of

inflation give

of

forces

and

way

elements of deflation appear,

some

policies will under¬

the monetary

change and money rates will

go a

lower.

become
.

higher rates
moment
the

1953-54 also
demonstrated that gov¬

Experience during

clearly

securities

ernment

do

beginning of 1953, and they

to the

subject to the same degree of
fluctuation as other high grade

are

While

bonds.

remain

they

the

prime investment throughout the
world

lutely

they'

abso¬

risk attached to them,
fluctuate like other money
the

with

looked
term

upon

market.

money

has

factor

particularly

be

to

considered

by those who have
medium and longer

obligations as
liquid assets which could
time without any risk be

government

highly
at

is

there

no

bonds

This

while

and

any

converted

into other

types of

se¬

rates and bond prices will

money

Interest Rates

War

World

after

ture

interest rates

II also did not

previ¬
periods. After World

repeat the performance of

postwar
War I, for example, interest rates
rose
sharply, particularly during

ous

the

of the inflation
then declined only in slow

initial period

and

After World War II, in¬
terest rates remained at exceed¬

stages.

ingly low levels until 1951 when
the accord between the Treasury
and the Federal Reserve

occurred

pegging of government
security prices was abandoned.
After the accord in March, 1951,
and

the

until

middle

the

1953, money

of

but the rate of return
the peak remained low

rates rose;

at

oven

compared with previous periods.
The increase in money rates from
1951

primarily
coincidence in that the de¬
for funds from
both the

to

from

a

mand

1953

resulted

than

The

movement

in

the

immediate

of

past.

interest

rates,
will be

[hence of bond prices,
guided primarily by demand and

supply factors, which will reflect
the

influence

tions

of

the

and

business

credit

of

mone¬

is

1953-54

therefore of considerable value to
the trust officer.
when

business

either

to

sell

It indicates that

begins

the character of

a

or

to

assume

boom, it is time
to

refrain

from

buying fixed-income-bearing

se¬

curities.

only

made

impossible

it

to

forced the
Treasury to appear as an impor¬
tant borrower in the open market.
balance the budget but

Since inflationary

pressures were

present, the policies

of both the

Reserve authorities and the Treas¬
ury

underwent

considerable

a

change.

past, the armies of the
United States were disbanded and
military expenditures were dras¬
II, however, as a result of the ag¬
gressive attitude of international
Communism and the outbreak of

important role
than

vestment

in

in trust

the

in¬

past.

A

of the forces

reconsideration

that

influence the movement of equity
prices, particularly those that can¬
be quantitatively determined,
such as the psychology of the peo¬
ple, will therefore have to take
place.
of

fecting

the

forces

newer

the

equity market
been
discussed.

already

of

movement

1953-54

equity

reflected

af¬

have
The

prices

the

in

acceptance

national

defense

of its

This does not seem

allies.

be

to

passing phase, and in all

a

another for

or

time.

of

in

continue

will

tures

expendi¬

large

these

probability

form

one

indefinite period

an

government ex¬
national defense
continue to play an impor¬
role in the economy of the
Hence,

for

penditures
will
tant

a

result

in

of the

character.

as

is permanent

war

Since

equities rep¬
tangible values, the belief
many
investors that the in¬

resent

of

in

crease

the

tangible

valuation

of

underlying
equities is permanent in character
bound

was

have

to

effect

an

which

research

on

of

economy

during the

created

new

methods of pro¬

The

the

World

business

that
in

War

will

II

It

leads to
a

to

an

major

has

ence

prices.
have

postwar

also

been

a

the

from

maintenance

rates

of

the high
Hence, in
the future the
trust officer, in
timing his equity purchases, will

and

have to consider factors which in
the past

played only

in the movement of

minor role

a

equity prices.

of the merger

accentuation

such

In

an

economy,

becomes

prime

of

quality of
management, more than anything
else, determines the success and
failure of

since

a

the

company.

The dynamism of the

increases

economy

American

the

A

growth

War
in

major

the

past.

taxes

war,

the

also

II

moment

During

likely to have

be

goes

the

favorable effect

a

dividend

from

attractive

every

and

trust

as

Similarly, the creation of larger
units through mergers

economic

hostilities

were

adds to the list of securities

were

able for trust investment.

drastically reduced, followed by

far

as

as

suit¬

individuals

Conclusions
Trust

investment

management
the rapidly
changing economic, political, and
be

must

bearing securities. The change in
the credit policies of the Reserve

highest

only relief granted to corporations

even

authorities

has been the removal of the

adapted

to

suitable

dicates

has

ease

now

that

in the

the

been

making in¬
policy of active

abandoned

and

is

in the immediate past, it is
probable that the policy of flex¬
ible neutrality will give way to
one

to

of

restraint

higher

money

which

will

lead

rates and lower

of

normal

and

surtax

in

the

near

Defense

future

is

not

expenditures will

long run, however, and
eliminating
temporary
cyclical
fluctuations, the trend of money
rates is not up, primarily because
the supply of funds which will

Traditions

and

practices

the

sound and proven a generation or

excess

likely.
in

all

probability remain high; and for¬
eign aid in one form or another

which
decade

a

were

ago

considered

may

not

be

or
advisable today.
The
principles, however, as re¬
gards
trust
investments,
never
change. They are preservation of
principal, both as to the amount
in terms of money and as far as
possible as to purchasing power

possibly at a lower of the dollar. Those who stead¬
level. The expensive farm support
fastly adhered to the principle
program

these

be

maintained.

All

expenditures

burden
not

will

impose
a
Treasury and do function of
immediate prospect ment caused

material

a

This

exempt

in

that maintaining the corpus intact
in
terms of money
is the sole

the

on

offer any

reduction

the

of

turn

means

play

a

trust

investment

more

are

that

likely

important
even

tax-

in

role

the

also

to
in

trust

affected

fund
rates

smaller

trust

fund

income
on

fund

since

1940

adversely the
because

of

trust

the

prime fixed-income

low

secu¬

rities.

-

first

half

of

and

1954

declined

con¬

the

lower

than

ment,

were

demand

unless

through

its

the

govern¬

refunding

op¬

prior to the adoption of the credit

erations, increases the supply of

restraint policies.

long term government obligations.




cause

of the

large supply of tax-

exempt securities in prospect, the
rate

of

interest

they will

carry,

to

these

well

in¬

formulate

an

has demonstrated that

the

equity

market does not forecast business

in

activity

general

does

nor

the

movement of

equity prices always
prevailing business condi¬

reflect
tions

earnings
Since

or

individual

of

companies.

equities
are
likely to play in the future an
even more important role in trust

before, the trust

be compelled to

not only the

con¬

old and tested

measuring rods but will also have
to

develop

In

based

new ones

postwar economic
developments.

and

the

on

financial

respects, these changes

some

have made the task of the invest¬
officer
more
difficult; in
important, perhaps the most
important, aspect, they have made
ment

one

easier.

it

The economy has become
stable, and the wide swings
in
production
and
employment
such as we experienced in the past
(1)

more

not

are

anticipated.

dynamic
have

the

free

a

bound

to

and downs, a major
the proportion of

ups

of

1930's will

The

(2)

While

is

economy

its

depression

be

avoided.

of the

economy

coun¬

try is sound, its productive capac¬
ity is great, efficiency and produc¬

tivity

are rising, the economic se¬
curity of the people is high and

increasing, living standards are
rising, and the population is grow¬
ing faster than
ble

a

was

thought possi¬

few years ago.

(3) The forces of inflation have
run

their course, and there are no-

signs of serious deflationary pres¬
sures.

(4) The international political
situation, while still abnormal, has
improved; and the economic re¬
of

covery

Western

Europe

has

been remarkable indeed.

The

(5)

longer

outlook

range

for the United States is favorable

indeed.

A

$500 billion

gross

tional product in 1965 is

na¬

definitely

potentialities.

our

*

(6) All these factors make it
feasible to adopt longer range in¬
vestment policies without fear of
crises and violent fluctuations. It
gives

that

assurance

rities

bound

are

to

while

secu¬

fluctuate,

a

well managed company will find

a

growing market for its products,
which

will

be

reflected

in

its

earnings.

the

more

-

dynamic

American

Joins

Adolph Thorsen

(Special to The Financial Chronicle)

MILWAUKEE,
Langen
Adolph

Wis.—Victor
joined the staff

has
G.

Thorsen,

735

O.
of

North

Water
Street.
Mr.
Langen was
previously with Bingham, Sheldon
& Co. and Cruttenden & Co.

General Funds Co. Formed
PHILADELPHIA, Pa.—General

but

accounts.
The
supply
of
taxThe real problems before the
However, this
policy change seek an outlet in fixed-incomeexempt securities will be large for trust officer and his committee
was only short-lived.
As soon as
obligations — bonds and quite some time to come since the are:
business activity began to show bearing
pent-up as well as the current
signs of decreasing, the credit pol¬ mortgages—is very large and is
(1) To strike a balance between
demand for all kinds of public
icy of the Reserve authorities and bound to increase in the future.
fixed
income
bearing securities
works is large and is still grow¬
the debt management policy of
and equities.
The
supply
of such
securities ing. The revenue bond will
play
the Treasury underwent a consid¬
(2) The selection of the indus¬
available
to
the
market, while an even more important role in
erable
change.
Money rates in
try groups and of individual com¬
the second half of 1953 and in the considerable, may not be equal to the future than in the past. Be¬ pany equities, which because of

siderably

of

the

manage¬

the beneficiary not
only to lose half of the real value

of

securities

both

basic

will continue,

tax burden.

the

conditions.

social

the

profits tax. A material reduction
of individual and corporate taxes

of

bond prices.
In

concerned, has been moderate

of

influenced

on

officer

formed

v/ithin

a

substantial reduction in tax rates.
After World War II, the reduction

is

movement

enable

to

phases

investments.

expenditures

Federal

tax rates,

to
It

policy of some
thus make the
equities of such companies more

increased;

were

tends

in character.

saying that a free econ¬
omy is bound to have its ups and
downs; but in a growth economy,
the
swings
tend
to
be
more
moderate.
This
development is

corporations

differed

information

without

on

World

economy

stable

more

after

Taxation

Developments in taxation

in

large number of failures, and

affected

the

money

but

ones.

competition,

experi¬

capital gains tax rates.

over,

increased

movement.

after

differ

values

burdens
and
responsibilities of the trust
equity, officer in some respects, but in
Other contributing factors others it makes his task easier.

previous

low

pattern

economy

new

the destruction of older

and

importance,

making in the United States and
that

dynamic

A

the creation of

means

management

widespread belief
depression is not

major

equipment.

new

on

equity prices.

war

pri¬
marily by business activity and
by the supply and demand for
capital. There is ample statistical

sider

the United
entire postwar
period has been marked by great
dynamism based on the growth of
population, the huge expenditures
The

States

to

dollar

properties

the

clearly dem¬

the

rates

interest

has

that

onstrated

officer will

Economic Trends

products and

States

securities

ment

investments than

country.

duction, and by the large outlays
by corporations for new plant and

United

before

since the abandonment

as

of the practice of pegging govern¬

haps more so now than before be¬
cause
experience since the war

to

on

home and to strengthen

by investors of the fact that the
the

as

equities

at

the United States
spend billions of

inflation

in

of

case

the econ¬
omies and military establishments

forced

was

dollars

not

Some

experience

well

as

bonds, this is not

in the

as

opinion.
As regards equities, the timing
is extremely
difficult and per¬

the Korean War,

newer

more

After World War

tically reduced.

corporations are at
level in history, and

been

not

in the

war

The

of the

Federal Government

fer
materially from any similar
experience.
After
every
major

rates

gear,

in
the defense expendi¬

political develop¬
ments after World War II also dif¬

indeed.

high

dur¬

factors, particularly since
equities promise to play an even

bracket.

lower income

a

As regards

diffieuLt
since

International

sider investment in fixed-income-

tures

economy

of the fact that the economy

give increas¬

in

are

are

ing this period was operating

private sector of the
was very large.
In spite

and

to

trust

even

Only after the boom has
passed its peak is it time to con¬

being replaced by one of flexible
neutrality. Should the boom in
the equity market continue and
should the supply of home mort¬
gages continue as large as it has

public

will have

The

ing weight in the future to these

those

experience

activity.

debt

authorities.

The

business

condi¬

and

management policies of the

tary

than

have

not

liquidity which was generally
attributed to such obligations up
that

fluctuate perhaps more in the fu¬

The movement of

activity in 1947 and 1948 was at
a
high level. During the period
of readjustment in
1953-54, the
equity market rose rather sharply
in spite of the decline in business
activity, the lowering of profit
margins of some companies, and
the
increase
in
unemployment.

pressuresdevelop,
one
may expect the adoption of
credit policies which will result
in tighter money market condi¬
inflationary

to maintain a curities, stocks or other bonds.
trust
fund
intact
in terms of
The Outlook for Money Rates
money but also as far as possible
With the pegging of government
preserve the purchasing power of
securities
definitely
abandoned
the trust will have to take this
development into account. It adds (and rightfully so) and with a
flexible
credit
policy in force,
a
new experience
to his fund of

knowledge.

1948

to

The
equity market was appar¬
ently influenced by factors other

are

need

the

of

only

1946

in

spite of the fact that business

of the Reserve author¬
guided primarily by the
trend of business activity. Should

policies

ities

An

acter.

in

Developments in the money and
valuable

declined

market

1954

of 1953 and

The Experience

not

likely to be satis¬
to individuals who

is

rates,

factory

Thursday, February 17, 1955

Funds

Co.

has

offices

at

1518

formed

Walnut

with

Street

to

securities business.
Max Fischer is a principal of the

engage

a

firm.

E. W. McWhood Opens
BLOOMFIELD, N. J.
W.

McWhood

curities

is

business

—

Edward

conducting
from

a

se¬

offices

at

49 Vernon Terrace.

Reynolds-Raynolds Co.

changes in the
has become

SALT LAKE

economy

CITY, Utah.—Rey¬

nolds-Raynolds Co. is engaging in

complicated.

(3) Timing of purchases
irrespective of the trend of inter¬ sales of securities.

in

been

and

a

in

securities

the

business

from

Judge Building.

offices

Volume 181

Number 5404 .The Commercial and Financial Chronicle

Continued from page 5

were

slightly below the year-ago toll of 33.

cerns

succumbed with liabilities in

21

The State ol Trade and

On

a

seasonally adjusted basis, private home starts in January
ran at an annual
rate of 1,424,000, which compares with an annual
rate in December of
1,473,000.
Steel

Output Scheduled This Week to Rise to
88.2% of Capacity

The

second

half

ought to bring pretty good business to the
steel market, despite what may happen in the auto
industry, says

"Steel," the weekly magazine of metalworking.
monly

that

assumed

the

auto

producers

It has been

trying

are

to

much of their 1955
production in the first five months
that the remaining months are

After

uncertain,

trade paper.
The steel
could

lose

ingot production

several

ended Feb.

points

13 the rate

rate

and still
88%

was

pack

as

as

than that.

So, at least 17 points (and maybe a few more) of the
ingot rate stem from automotive demand. If you subtract

17

points from the present rate, you

have a 71-point rate,
points higher than the rate in many weeks of
Of course, if the auto industry dropped
completely out

and that is several

last year.
of the market

for

steel for

widespread that other

and the steel rate would

long time the effects would be

a

steel

would

consumers

drop by

need

so

less steel, too.

than what the auto industry

more

cut, declares this trade weekly.
It's not

likely, however, that the auto industry would be out
If anything, the auto industry would
only reduce its take. If the auto industry were to cut its steel
purchases by half, it would knock
only nine or 10 points out of
of the steel market for
long.

the

of

steel

current

rate.

That

would

leave

rate

a

of

around

78%

capacity.
It is possible there won't be much of

industry's steel
General

Motors

mind

provide

to

Even

if

a

drop in the automotive

demand, since Harlow H. Curtice, President of
Corp., states that "at no time have we had in
inventory against a possible work interruption.''

auto

demand

for

steel

consuming groups that will make
is one, "Steel" points out.

slows

down,

there

seasonal increases.

other

are

Construction

The American Iron and

Steel Institute announced that the
op¬
erating rate of steel companies having
96.1% of the steelmaking
capacity of the entire industry will be at an
average of 88.2% of
capacity for the week beginning Feb. 14,
1955, equivalent to 2.129.€00 tons of ingots and steel for
castings as compared with 86.8%
(revised) and 2,095,000 tons a week ago.
The

based

industry's ingot production rate for the weeks in 1955 is
annual

on

For the
duction

capacity

like

week

2,080,000

a

tons.

of

125,828,310

month

A

ago

tons

the rate

as

of

was

Jan.

1,

1955.

83.2% and

pro¬

ago the actual weekly production
placed at 1,779,000 tons or
74.6%. The operating rate is not
comparable because capacity was lower than
capacity in 1955
The percentage figures for 1954
are
based on annual capacity of
124,330,410 tons as of Jan. 1, 1954.
year

was

1955,

of

amount

electric

energy distributed
week ended

industry for the

power

The

by

This

the

electric

Saturday, Feb

12

is to show the general trend of food

1953.

Loadings Drop 0.2% Below Prior Week

Association

of American

increase of 16,350 cars

U. S. Car

The

1955 totaled 640,735 cars,

above

cars or

the

corresponding 1954
7.2% below the correspond¬

The
&

to

167,095
week.

Record

"Ward's

The

Automotive

compared

past

week's

Reports"

from 280.08

lower the past

trended

in the international situation lessened

somewhat.

commodity price index, compiled by "Dun
Inc.," finished at 278.73 on Feb. 8, down slightly

week

Demand

in

a

wheat

for

The main

active.

less

was

depressing influ¬

the bread

cereal, aside from political developments, was
receipt of moisture in the Southwest which is said to have

ence

the

greatly improved the condition of Winter wheat in many of the
drought-stricken areas.
Substantial export trade in wheat was
with large quantities sold to Greece and Japan.
Cash
corn was fairly steady and although receipts declined sharply they
were ample for the demand.
Stocks of corn in all positions on
1, 1955

reported at 2,799,000,000 bushels, the largest of

were

and 4%

record

a year ago.
Sales of grain futures on the
Chicago Board of Trade last week declined sharply to 160,353,000
bushels.
This represented a daily average of 32,100,000 bushels,
against 44,800,000 in the previous week, and 41,000,000 bushels a

above

'

ago.

year

164,265 (revised) in
production total of cars

market developed

sugar

a

firmer tone

trading

as

and

to

than the previous week's

164,265 completions.

Last

week, the agency reported there were 14,822 trucks made
United States.
This compared with
18,425 in the previous

week.

Business

Cocoa

under

was

ended

coffee

Brazil

and

10

industrial
from

Bradstreet, Inc.," reports.

264

failures
in

the

Brazil

to

bring

1953

Although casualties

toll of 200.

Failures

to

238

in

the

year,

were

were

down

&

mod¬

they exceeded the

25%

lower than

the

1939 level of 318.

Failures with liabilities of $5,000 or more
dipped to 207 from
in the previous week and 244 in the
corresponding week of
A decline also took

volving

liabilities

under




place among small casualties, those in¬

$5,000,

which fell

to

31

from

40,

and

cated

since

At

ad¬

as

promotion

1950.

Cone

Mills, Inc., Mr. Wood¬
in charge of national

was

trade

advertising, sales

and

product

publicity.

and

pro¬

institu¬

Prior to that he

sales and promotion
manager
Merry Mites, Incorporated, ac¬

was

of

count executive at John A. Cairn3

Advertising
Agency,
and
spent
eight years with Macy's New York
in

merchandising,

and

public

He

is

management

relations

graduate

a

capacities.

of

Dartmouth

College and served in World War
II

as

Captain in the Air Force.

a

In his

duties he will

new

direct

the

Exchange's enlarged national
advertising program in 542 daily
newspapers,
national
magazines
and

financial

broaden

publications

stock

sound basis.

ownership

He will also

to

on

a

concen¬

trate

on an expanded
program to
help Members and Member Firm3

York Stock Exchange
develop their advertising and sales

promotion

prices

about

dropped

7

cents

activities.

prices

the

to

down

Cotton prices held
trended

Dallas Power &

during

pound

a

world

competitive

downward

in

a

toward

range most
close.
Bearish

the

of the week and
factors

included

profit-taking, hedge selling and liquidation influenced by a fur¬
ther drop in loan entries.
Domestic mill demand was less active,
while export sales continued in limited volume and consisted of
small

numerous

Reported

lots

for immediate and

sales of the

staple in the

Halsey,

14

markets

000,000 of

continued

to

the

week

ended

Jan.

28

reported

were

43,400 bales, against 66,202 a week earlier. Repayments during
latest period were 20,400 bales, leaving loans outstanding on

1,880,700 bales of 1954 cotton, and
of Jan. 28.

as

'

4,999,800 bales of 1953 cotton

on

sinking fund debentures
1,

Feb.

1980, at 102.15% and
interest, to yield 3.125%.

Award

of

the

issue

was

underwriting group
petitive sale on Feb. 14
of

the

proceeds from

debentures,

proceeds

39,182

stock,

mon

the

the

of

-

Earlier in the Week

in

Heavy shopping

the

latter part

of

the

ended

on

Wednesday of last week was insufficient to make up for very
light sales accompanying cold weather earlier in the week. The
dollar volume of trade was slightly below the level of both the
preceding week and the corresponding period a year ago.
total dollar volume of

be

shares

and

facilities

estimates

that

for

retail trade in the week

was

esti¬

construction
for

result

The debentures will be redeem¬
able at general redemption

ranging from 105.15% to
at

special

and
re¬

accrued interest in each

ago levels by the following percentages: East —4 to —8; New
England and Midwest —2 to —6; Northwest —2 to -f2; South -fl
-f5; Pacific Coast +2 to +6; and Southwest -f4 to +8.
Although total apparel sales were considerably lower than

of

men's

apparel

preparations for increasing
Most

buyers

were

reported

greatly

decreased

trade

Spring stocks.

is

past week, and the dollar volume of wholesale trade was
moderately smaller than the week previous. Total commitments

considerably greater than a year ago.
Department store sales on a country-wide basis
Federal

Reserve

Board's

index

for

the

week

1955, declined 1% from the like period last year.

week, Jan. 29,
from

1955,

increase of 2%

generation,

mission,

as

taken from

ended

Feb.

5,
In the preceding

(revised)

light

5, 1955,
gain of 8%

a

the

trade

was

registered

previous

However, sales

period

a

year

period in 1954, and for the four weeks
increase of 7% was recorded. For the year
was registered above that of 1953.
an

in

New

week

were

only

York

with

last

the

week

advent

showed

of

slightly higher than

ago.

improvement

warmer

those

weather.

of the

was

of

reported.

1953.

four

distribution
Electric

service

all

in

of

the

engaged

and

supplied

is

in

trans¬

sale .of

power

like

Dallas

to

and
the*

Population

County.

territory

served

mated by the company
For the year

is

esti¬

at 622,000.

1953, the company

reported total operating revenues
of

$27,918,000 and net

$4,989,000.

In

income of

unaudited report

an

for the twelve months ended Nov.

30, 1954, total operating revenues
shown

were

the

is

purchase,

„

According to the Federal Reserve Board's index department
store sales in New York City for the weekly period ended Feb.
5, 1955, registered a decrease of 9% below the like period of last
year.
In the preceding week, Jan. 29, 1955, a decline of 1%
(revised) was reported from that of the similar week in 1953;
while for

company

Greater Dallas area, and adjacent

that of the similar

ended Feb.

1954,

an

The

the

surrounding unincorporated areas,

were

the

case.

subsidiary of Texas Utilities

a

Co.

electricity.

unwilling to place heavy, long-term orders

to par, plus

Dallas Power & Light Co., a
public utility company operating
wholly within the State of Texas,

the

previous week, the demand for higher-priced Spring mer¬
increased. Clearances of Winter clothing continued, and
women's coats, suits and furs were among the more popular items.

prices

par,

prices

redemption

a

to

in

approximately

$20,000,000.

ceding from 102.15%

year ago.

other

construction

will

mated by "Dun

& Bradstreet, Inc.," to be 3% below to 1% above
Regional estimates varied from the comparable year-

derived

The company

its

of

of

com¬

operations,

and

1955

expenditures

of

with
sale

of

funds

company's

used for the

new

program

period

bid

a

sale

earlier

corporate purposes.

Shopping and Cold

by

com¬

on

together

from the

additional

from
will

Weather

won

at

101.70%.

■

Registered Slight Declines For Week

$7,Light

Dallas Power &

,

Trade Volume

and

offered

due

accrued

Net

in

15

Co. 3V4%

ceding week.
entries

Co. Inc.

&

Feb.

on

the

nearby shipment.

decline and totaled 194,300 bales, against 314,100 bales in the pre¬

loan

Stuart

associates

narrow

Light

Debentures Offered

by

level

increasing bonus payments to exporters.

Retail

preceding week, "Dun

erately from the 277 which occurred last

comparable

declined

resigning

sales

manager of Cone Mills, Inc., New
York City, where he has been lo¬

The sharp break followed action over the week-end by

the week.

Failures Register Moderate Decline

Feb.

and

in late trading and prices worked

pressure

largely by the sharp break in the coffee market.
Warehouse stocks of cocoa at 94,323 bags, showed little change
for the week and compared with 78,658 a year ago.

over

Commercial

Vice-

lower influenced

the

the

Lawrence,

of the New

world

The

expanded sharply at mid-week.

an

with

vertising

reported

Jan.

C.

Mr. Woodward is

motion

earlier, and comparing with 276.45 a year ago.
Leading grain markets were dull with prices mostly lower.

11,

assembled

Ruddick

President in charge of Public Re¬
lations and Market Development.

and

Far Eastern Tension Diminished

as

commodity price level

general
tension

as

Retailers

181,919 units, a decrease below the preceding
output of 771 units, states "Ward's."
Current weekly car
manufacture "Ward's"
notes, is 1.3% above the previous record of
164,876 cars set during the June 12-17, 1950 week and 1.7%
higher

1954.

and its cnief function

daily wholesale

and

industry for the latest week, ended Feb

cars,

trucks amounted

224

to

Commodity Price Index Receded Slightly

Bradstreet,

in

Capacity Rises 1.3% Above Previous
Set in June 12-17, 1950 Week

according

previous

week

use

ing and sales promotion, effective
Feb. 21, G. Keith,
Funston, Pres¬
ident, announced. He will report

tional

The

week's

the

drop of 4.5%.

a

chandise

automobile

estimated

Feb. 5,

2.6%

or

week, but a decrease of 49,878
ing week in 1953.

in

first

ward

Wholesale

The

Railroads.

Loadings for the week ended

1955,

the

with $7.09 on

appointed Daniel H. Wood¬
ward, Jr. as director of advertis¬

prices at the wholesale level.

And Year Ago Due to Light

Loadings of revenue freight for the week ended Feb.
5, 1955,
decreased 1,244 cars, or 0.2% below the
preceding week, according

an

since

past week's

week's

Car

the

lowest

compares

the

like week in

to

the

It

the

output reflects a loss of 125,000,000 kwh. below
previous week, when the actual
output stood at 10,047,000,000 kwh., but an increase of
1,238,000,000 kwh., or 14 3%
above the comparable 1954 week and
1,775,000,000 kwh. over the
of

is

foodstuffs and meats in general

raw

the iL'Jison Electric Institute.

that

number

The index represents the sum total of the price per pound of
31

was estimated at 9,922,000,000
kwh., a decline from the allhigh record established in the previous
week, according to

time

current

dip reflected sharp declines in coffee and
cocoa, as well as lower prices for flour, wheat, corn, rye, oats,
barley, bellies, butter, sugar and hogs.
Commodities showing
advances in the week included hams, cottonseed oil, eggs, potatoes,
raisins, currants, prunes, steers and lambs.

at

Week

The

The

before.

price index fell quite

Feb. 8, as against $6.85 the

on

week of this year when it was $6.75.
the corresponding date a year ago, or

CCC

Electric Output Shows Moderate
Recession From the
Ail-Time High Record of the Previous
light and

week

week

capacity.

Annually, the auto industry uses about one-fifth of the
steel, but right now it's probably taking somewhat more

those

sharply last week to stand at $6.77

this

nation's

current

The New York Stock Exchange
has

that it

now

Woodward Adv. Dir.
For NY Stock Exck

Sharply in Past Week
The "Dun & Bradstreet" wholesale food

In the week

good.

con¬

against

as

possible.

continues

enough

Twenty-four

$100,000,

Wholesale Food Price Index Breaks

The Past Week

is high

be pretty

of

com¬

of

excess

last week.

Industry

Private home starts in
January totaled 87,800, against 89,600
in December and
65,100 in January, 1954.
Public housing starts, however, sank to only 200 in
January,
compared with 1,400 a month earlier and 1,300 a year eanier.

41

(841)

weeks

ended

Feb.

5, 1955, an increase of 1%
For the year 1954 the index advanced 2% from that

net

Also

ing

at

$31,811,000

and

income at $6,162,000.

participating in the offer¬
Courts

are:

Brothers & Co.;
curities
Thomas

&

Co.;

Stern

Dallas Union Se¬

Co.; Rotan, Mosle & Co.;
&

Co.

•

12

The Commercial and Financial Chronicle... Thursday, February 17,

(842)

Continued from

first

tablished

page

Evans
Red

And

workers

workers com¬
America s

its

which

mand.

today,

outnumbered

—

they

as

the greatest lift¬

are—still possess

ing power in the world.
That is

It is the

salvation.

our

great advantage that we have;
and we must, I think, preserve, it
at all costs; for our native ability
one

build and to use the
productive machines,

to design, to

world's most

provides, today, our last, best hope
enjoying a peaceful tomorrow!

of

recently, I have been much

But

II

the

technological prog¬

which

on

safety of

and

freedom,

our

homes, depend.
wholly on

our

This campaign is based
the

It is de¬

psychology of fear.

signed to frighten our people into
belief that the new machines

the

which

developed

being

are

will destroy

leave them desti¬

of workers and

And unless I

tute.

now,

the jobs of thousands

badly mis¬
hope I am—
this propaganda is proving effec¬

mili¬

most

American

because

were won

investors

continued

Labor

had

the

use

to

those

there

Now

fear

we

of

machines

among
us;
and
thing about this

most curious

campaign

to

of

that

This

propaganda

few

time,

tion"

of

of

is

the

three

cen¬

webs at once,

six

weave

and the authorities

promptly suppressed it in order to
protect the poor.
But the "poor"
not appeased.

were
no

seized

the

called

they
and

but

same

it

thing.
who

outset

industrial

of

the

into

revolution

mills

in

tried

and

to

destroy the new automatic ma¬
chinery which they feared would
leave them jobless.
And in those
days, of course, such fears were
entirely understandable.
machine

did

the

pose

livelihood of

of

didn't,

as

a

many
sud-

the

Today, from our vantage point
history, we can look back upon

those

early

truth:

That

times
it

and

the

read

the

was

machine

alone

—and

not

like

mechanization

standard

of

did

not

subsistence

levels, and the

lation

decimated

'was

the

occur,

living fell far below
by

popu¬

starva¬

brand

mean¬

had

before

himself

man

rise,
monster,
to
may

Thus

enough

class

new

they

all.

us

visions of

to

the

word

conjure

up

168

hours

a
week, without
payroll whatever.

human

And these fears, of
just plain silly. There
factories
nor

will

my

and

time

there

ganda is
is

course,

are

such

machines;
be, either in

ever

But

propa¬

powerful thing; and it

a

growing louder.

A

Fear

recent

York

of

headline

the

in

had

all

beyond

single

in

of

man's

Leaders

material welfare; but this fear of
them has
persisted, right down to
the present
day; and some of
you

will

recall

years ago,

that

about

such fears

prevalent

here

25

or

were

in

30

are

set

even

up

to

more

vast

a

relieve

automation

must

guaranteed

annual

wel¬

the

suf¬

be

offset

widely

the

United

In those

plays

days,

of the popu¬

one

on

Broadway was a
thing called "R. U. R." and it
brought the word "robot" into our
language. That word frightened
Us

for

quite

a

while.

cal

unemployment
subject of national

in

and

out

economic

known
>

as

a

of

Technologi¬
became

the

wage,

of

An

thought,

"Technocracy," enjoyed
publicity.

gentleman

who

And
is

later

still

a

member of the United
States Sen¬

ate,
publicly
"Science and

declared
invention




are

that
to

has

become

a

effective.

Index
than

thousand

a

asked

did

first,
more

few

factory workers,

them

they

two

favor

and

new

A

th'e Public Opinion
a
poll among more

ago,
took

to

questions:
the

use

"improved"

of

ma¬

They did, but about three
Then
they were asked
they felt about more "auto¬

one.

how

mation."
three

to

Yet
are

But

the

nothing

they opposed that,

two

things,

indentical.

new

the

of

than

American
Back

course,

There

is
ex¬

The facts of

automation—and
older

we've
things
ever

tnermo-

a

and

better,

a

self

with

but

has

luxuries, and
his hours of

has

he

that

made

greatly
leisure;
de¬

ever

humans

us

ob¬

solete.

think for a moment
three
outstanding
ex¬

Suppose
of

the

amples

we

automation

of
in

seen

that

we

lifetime:

our

mechanics
our

own

Republic.

in

1784—before

stitutional

Government

our
was

fast

as

of

The

first

that

one

that

sume

it

Con¬
es¬

comes

have

must

to

thrown

of

telephone operators
out of work; and some of the cur¬
rent propaganda
on
the subject
would

to

seem

sumption
the

confirm

completely.

that

But

as¬

what

in

The

building of ma¬
themselves—plus their in¬
stallation, maintenance, and the
construction

of

factories

new

to

house them—has opened up thou¬
sands
of
job opportunities that

electrical

ple, has

in

the

machinery,

field

for

of

exam¬

than trebled during

more

this

period.

the

specialized

tion

itself, the

In

other

machinery
it has increased by 150%. And in

of

the

field

and

mushroomed

which

As

that

is

$3

a

already

as

of
has

billion

employs

the auto industry

in the middle

But

control

into

many men

automa¬

instruments

necessary

business

of

manufacture

mere

measurement

as

the latest

taken

in

Federal

1950,

number

Census,
that the

shows

of

telephone operators,
in this country, increased by 159,79%—in

And

the

still

Company keeps

the

on

previous 10
Telephone

advertising for

only the beginning.

mechanization

has

enlarged
purchasing
it has also

output and the
power of our people,

multiplied

enormously

mand

services.

for

their

de¬

So
they, in
employ more doctors
and dentists, more engineers and
scientists, and more teachers and
clergymen. They send out more

of

turn,

their

laundry,

often

in

and

they

restaurants.

eat

Then next

electronic

we

need

still

brains

number
tors

that

we

any

shows

71%

seen

don't
But

more.

of accountants

10-year

new

we've

Census

increased

And

fabulous

Surely

accountants

the

to business

come

these

television.

on

in

that

the

and

audi¬

this

how

about

these

thought

up?

was

Are the automobile

Well, not by

long shot. Their number doubled
14 years.

Automobile mechan¬

ics and repairmen have increased

75%.

And

auto

that five

for every new job in
industry it is estimated
new jobs are created
in

allied fields which supply the raw
materials and components that go
into

than

the

ment of

manufacture
new

cars.

and

equip¬

than

more

Theatres, movies,

formerly.

The

amuse¬

purchase

books

has

doubled," and

tures

for

home

trebled.

And

in

music
it goes.

so

the

service

of

expendi¬
have

the

has come,

time

1

think,

vicious

this

nail

propaganda
for the miserable fraud that it is.
The facts show that only
the widest
better

possible

machines

the

of

use

through
new and

hope

we

can

fullest

to
of

measure

higher stand¬

a

ard of living.

!

Advanced More

Wages

Than

And

Profits

while

we

at this busi¬

are

of

nailing,- let's tackle an¬
dangerous deception that

other
the

busy propagandists are per¬
petrating these days: That is the
charge that the greedy owners of

industry have grabbed the lion's
share of the fruits of technology,
while

the

robbed

of the rightful rewards of

their

have

workers

been

mounting, mechanized

pro¬

duction.

Now

fortunately, the true facts

this

of

able

matter

in

readily avail¬

are

study which

a

The

same

Allen W. Rucker, and pub¬
lished
by
the
Eddy-RuckerNickels

Company
This

Mass.

of

study

who^

1914 to

generation

the two great

Cambridge,
the 33-

covers

period from

ye°r

1947—a

during

which

of this country

wars

fought, and when American

were

industry

undoubtedly mak¬
the most imoortant

was

of

some

and

fundamental

in

progress

Mr.

over.

technological
history.
More¬

its

Rucker's

based

entirely

States

Census

analysis
the

on

of

ports;

do

I

so

is

United

Manufacturers

and other official Government

not

re¬

that

suppose

will challenge the authen¬
ticity of the facts which he pre¬
anyone

And

sents.

this

is

They show that

on

what

they

show:

basis,

in

American

whole,

period, the

the

real

rplative

machines,
as

161%:

the

of

terms

a

that

workers,

of

purchasing
157%; and that

increased

oower.

the

by

wages

in

and

men

manufacturing,

increased

measured

man-hour

a

this entire

over

output of the

prices

of

manufac¬

tured

products, measured in terms
hourly wages, declined 61%.

of

Employ¬

thing has happened,

made

was

by

In

industries

alone has risen by more than two
million during these 14
years. And
that is a jump of 65%.

its

findings,

report

states

of

worker

the

almost

that

therefore,
the

have

the

exactly

real

the

wages

advanced

"at

rate

same

as

the improvement in nroductivitv."

too, in the general field of trade.

It

the volume of production has
increased, it has taken more work¬

System of Manufacturing, the ad¬

As

to

sell

goods.

and

to

handle

these

And thus six million

new

adds

that

vance

in

whohy

upon

tivity."

under

such

the

American

"derwnds

wages

advances in produc¬

And

it

declares

in

con¬

jobs have been opened up bv the
growing employment demands of

clusion, that the manufacturing
industry on the whole has passed

department

"virtually

lines,

stores, shops, offices,
bankers, utilities, bus
trucking
companies,
and

on

builders,

increased

others

in

this

in

technology, has
industries,

new

ad¬

created

and

vast

fields of opportunity, in tele¬

vision, antibiotics, air condition¬
ing. many new branches of elec¬
tronics.

and

now,

in

atomic

ergy—just to mention

en¬

few.

So

a

with each

passing year, and with
new invention, our people

every

have

a

today,
are

it

more

ways
a

wider

is

choice

reported

than

iobs; and

that

40,000

whereby Americans

living!,.

,

-But suppose,
all

of

to its customers and emnlovees

the 'savings' from
productivity" — that

all

rarely, and only temporarily, have

category.

finallv, of course, our

And

whole

Detroit,

has

jobs

so-called

in

camps

ment parks and similar establish¬
ments
provide
75%
more

new

factories

and

tripled.

vance

where the word "automation"

the

courts

same

period.

automatic

in

for

that

course,

free and independent people.

So

Even

they have more lei¬
time, has created more jobs
others. Employment in tourist

ers

more!

machines and

of

had been able to survive at all
a

ing

1930's.

the

their

the

existed before.

never

ment

facts?

Well

as

sure

mind, probably, is the dial tele¬
phone.
We would naturally as¬
thousands

world—provided,
we

ness

it!

idle, and

among

so-called backward nations of the

the

as

because of mechanization—not
spite

more

The Dial Telephone

rank

more

chines

ac¬

him¬

surrounded

machine

no

vised

has

man

amazing industrial

an

or

clearly shows more¬
that this rapid increase in
employment has occurred chiefly

did

He

73%,

times

Employment

evolution—

would

America

rapidly—employ¬
up

over,

music

It is only another

the centuries

miracle.

a

of

about automation

cept the word itself.
it—are

three

freer world.

complished

manufactur¬

than

step in the slow and plod¬
ding progress of man towards a

Over

of

population.

in

thing called

simply

life,

field

the

most

the

homes

own

workers losing out?

two!

really

But

"automated"

filler

in

wopld
in the oil

of our workers would be

emplovment and

gone

and

How many jobs

there be in Detroit, and

achieve

has

little

riphpr.

num¬

ment

is described

installed

is

But the total

advanced

up

alarming

revolution.

not

chines.

debate—both

Washington.

school

widespread
on,

proving

and

States.
lar

"automation"

is

which

our

first

22%.

The record

So let's face it. This

are

menacing word—a kind of mod¬
ern
bogey-man with which to
frighten our people. And as I say,
months

set

principle."

automation

by a
which

would

it

in¬

has

And

player-piano; and
George Gobel would say: "You
can't hardly find them no more,
these days!"

New

a

They demand that the

program

So

States

jobs has grown by 35%—
more than half again as much.

And

suppressed
Eleven thou¬

were

have?

we

ing itself—where automation has

as

"Automa¬

says:

fering that they think automation
will bring.
They also declare that

doubt, to be the
source

Employment

United

How

would there be on the
road? And how many roads would

or

'»•-

those

had

even

years.

greatest

the

cost

$65,000!

cars

many

the

are

that

stat to regulate the furnace! We've

000—or

proved,

looms

"feedback

America.

have

in

would

all,
of

ber of

in

"servomechanisms"

as

labor-saving devices and thus re¬
tard all technological
progress in

tools

of

creased

all

jargon of my fellow Engi¬
by such mystifying words

neers

The Value of Machines and Tools
and

as

During .this period the popula¬

not

was

of automation

presumably impose heavy
penalties on the installation of

machines

Increase

if it could

car,

a

at

excess

fields, and in the tire-making in¬

picture

Well, here

in

well

dustry—or even in our steel mills
for that matter?
Why, millions

for ourselves just

see

produced

be

to

the fact that

tion Putting Humans in Outfield."
And statements from some of our

Government

wove

patterns

instructions

alone!

tion and disease.

So

the

at

then. Such

used

for

men

really has happened in the

The

ago, 'a

Automation

newspaper

alarming.

look

that we were to try to
build a 1955 car, at today's wages,
with the tools and machines we
1908, and

to

Then there is still another form

have

The

years

authorities.

lengthened

are no

yours!

or

any

such

no

with

such

France

wholly-automatic fac¬

a

tory where machines with superbrains
will
grind out products,

fare

China, where

prin¬

people,

our

ever

Frankenstein's

ing standard of living.
tries like India and

—

have

superior to

is

refining,
these

are

through 1953.

Jacquard built

the form of the

understand its

ultimately,

Labor

coun¬

mechanical

thousands of

so

that,

the

in

a

which enabled England to
support her rapidly-growing pop¬
ulation and provide it with a ris¬

In

by

sand

we

the

we

oil

a

had stopped back in

auto industry

facts:

ma-

also punched in paper.

were

different from any

which

evidence of

last 15 years or sor—say from 1939

tion

150

that invention

right

of machines

know.

we

do

Let's

what

keeps

automatically
punched paper

complicated

accordance

since

ing, it suggests

number of

equal

an

it

But

men.

in

Since

work

it was only natural to
that it would destroy

men,

who

so-

England, mobs of angry workers
broke

But to

of

frightening about it;
anything basically

about

in

where

whole and

a

.

than

There

processes.

ciples to which it applies.

alone

the

and

is

there

destroy

nearby creek.

a

the

at

So

invpntor

hapless

drowned him in
Then

They wanted

such machines.

more

is

new

kinds

that

it, the word automation

nothing

nor

change from

That has been

recent

decline

be?

of punch-

automatic loom which

an

"automa¬

engineers

tne

controls

is

inventor in Banzig

loom that could

a

of

new,

man's

Nearly

ages.

turies ago, an
built

nothing
a

instances,

some

go?
Has "automation" made it
tougher for them than it used to

by a
But is this really new? Oh,

More

the

is

"robot";

just about the

Among

it

'production

our

Frenchman named

new

understand.

us

the word

instead

means

and

there is

Now

machine

use

in

do have to

example.

we

wonderful

are

at all.

not

is

frightened—not by
the advance of
technology itself
—but once again by a strange new
word

on

other

which

tape.

being

are

checks

controlled

and

facilities

And
are

chnes

possible advantage.
the same old blind,

today,

unreasoning
reappearing

cal

fear of
It has existed through¬

machines.
out

is

about

course,

cards.

business

Disloca¬

occupation.

occur

air¬

in

mild

marvel ^at

we

not

industry

every

job to another.

and

manu¬

and

in

farming for nearly 40
years.
With the falling demand
for coal, employment in the mines
has also dropped off substantially,

a

new,

is

course,

^

the greatest

Yet

wisdom

tive

the

too,

modern

lines

production; and because Amer¬

merely
a
term
which
conven¬
iently describes certain mechani¬

in

Nowadays,

courageously to pour their sav¬
ings into the best available tools

am

ranks and

something

do

men

true

us.

through the

skill

one

plant
blocks in

writes

They

coined

both in the

it's

worries

were

taken—as I sincerely

leadership of Labor.

think

builds

which

of

and

handles, engine
the
same
manner,

exactly

battles of World

auto

an

Detroit

records

ican

and retard the

which

in

industry.

the

ress

because

when

But

facturer

of

case

every

tions

as

con¬

A system of

the

also been—by the

doubt, have
sudden appear¬
ance, in this country, of a great
propaganda campaign which
is
clearly calculated to discourage

be.

fought and won on
the production lines of American

disturbed—as you, no

.

indeed,

the decisive

War

automatic

as

this,
the

ways

and

by" water
power,
the grain, carried it

up

flour.

American

tary experts now agree, I believe,
that

But

of

run

picked

people re¬
fused to accept this fatal philoso¬
phy of fear; and this'was fortu¬
nate

banks

Creek near Philadel¬
built a flour mill that

can

vey ors,

America!"

the

But

mill

any

the

to

through all the grinding opera¬
present unemploy¬
tions, and delivered the finished

the

blame for
ment in

Clay

Oliver

named

man

out

phia, .and
was
just about

Technology—Our One
Indispensable Weapon
power"

a

—

went

1955

there

different
can earn

.

for example, that
technological progress in the

the

retained

owners

whatever from
Ard

this

further

in

gains

any

source.

sumxmt

of

Mr.

Rucker's statements, I should like
to call your attention to one ad¬
ditional

f^ct

which

tained in his report:

is

not

con¬

That back in

1914, the share of the national in¬
come

which went to th°

business in
about

was

over

owners

of

6%; but in 1947, their

share amounted
So

owners

the form of dividends

this
who

only to about 3%.

33-year

period,

put

the

up

the

money

for all the machines that made in¬
creased production

that

their

slice

of

possible, found
our

total

eco-

Volume 181

Number 5404

The Commercial and Financial Chronicle

...

nomic pie had been- cut approxi¬
mately in half.
;

-

It may well be asked, of course,

why

industry continues to spend

billions

of

dollars

velopment

and

that,
in

im¬
these

answer,

to

we

A Business Bust Be Kept Modern
'

When
fails

business

any

to

keep

in

in

business is
less5 it

the

minds

of

strong;

And
it

comes

much

his

of

ment

life

side

of

That

the

is

simp'v

th°

from

are

on

if

I should
about the
;

like

to

ti"~e

but happily for
haps, it doesn't.

all

100%

acceptance of the exchange offers at that time.

some

director in 1949.

a

agement

,

Cash

and

marketable

thoroughly a'ert
sibilities—that

to

$18,792

9,457

39,841

325

74,547

130

Less:

Bank

$13,476

$135,297

None

$19,263

Est'd.

talked

payable——

$4,694

28,585

contracts (less costs incur.)

2,542

you

—

notes

and

on

Fed.

Total

and

foreign income

taxes

515

Current

Liabilities

——

are

I

since

most

cussed

wish

the

the

on

the

20

I

might

similar

part

of

$78,151
5-3,290

(346)

liabilities

Long-term debt

jobs

them

as

that

will

be

technological

open

progress

continues.

Beyond
to

that

the

urge

lightened
combat,

I should like

too,

responsible

leaders

by

of

every

and

en¬

Labor
at

means

to

their

command, this false campaign of
propaganda
which
threatens to
destroy not only the economic
welfare
also

of their

the

membership, but
security of our

very

that it has

$11,374

834

Common

*These
Merritt

Sept.

figures

do

Nov.

on

for

20

reflect

not

10,

1954,

Canadian

million

$14
do

nor

loan

agreement

they, include

82,474

$137,335

entered

shares

into

issued

by

after

subsidiaries.

The proposed new acquisitions represent

Chapman &

which

program

Scott.

In

has

it

1949

been

a

further step in the

under

way

Mejrritt-

at

moderate-sized

heavy con¬
confining its operations to
the United States. Now it has interests in several
fields, is active
in many parts of the world and is far less sensitive to
cyclical
influences.
Several acquisitions have contributed to this growth.
They include: FitzSimons & Connell Dredge & Dock
struction and marine

salvage

was

a

company,

heavy

construction

firm;

Industrial

Will
But

since

Go

together isshall merely point out

limited, I

march

will

ress

perhaps,
ever

of

peril

stop

solute

like

we

it

not

or

industrial

prog¬

always go on. We can,
delay it—to our grave

,

national

time

our

that—whether
—the

Progress

On

but

—

it;

for

of

nature

law

cannot

we

is

it

ab¬

an

that

every'

living
change

thing
must
grow
so long as life itself

tlnues.

That

is true of

and:
con-%

and-L

men,

that

our
economy stops growing.,
changing is the day that our

nation will have started to

^So
of

here

two

life,

conclude

by

vear-old

but

stood

be

One

of

ever,

knew

walks

and

these

men

who

was

of

under¬

great

a

often

was

His

Murray,

and

convention

months

name

of

the CIO,

before

his

"I

do

not

stock

dividends

Philip
before a

not

many

unfortunate

of

where

single,

a

a

were

New York
Louis
York

Wolfson. and

Shipbuilding

it—I

am

not

paid

been

under

the. Wolfson

companies
as

Shipbuilding Corporation
his

associates

obtained

control ;of

January, 1953.
(This is also
covered by the Merritt proposal for

now

one

New
the

of

At that time (1952) the company had just shown
operating loss of $194,804 on gross billings of $68,380,274. The

an

management

1953, although
On
sumed

1950.

the

stock

able

of

1953

none

of

net

income

of

$3,217,757

in

down $2.6 million.

were

the

payments,
distribution

show

to

billings

strength

dividend
A

was

gross

showing,
of

50%

which
was

the

I do not know of

aware

of it—because




1,059,322

1.10

5,700,000

22,779,347

960,258

1.00

4,700,000

had

made

been

made

early in

lent to $3 a share
Prior

the

to

on

the old stock.

advent

ing

Founders

Shares.

of

Wolfson

group,

New

York

Ship

non-voting Participating Shares and vot¬
on
equal rights for all share¬
with his family and friends owned the
Insistent

Wolfson, who
majority of the voting stock, went before the Board of Governors

of

the

New

York

Stock

Exchange last spring and asked to

re¬

now

although

the

under

a

other

and

increase

wage

level,

1953

still

considerably

are

Chiefly responsible for the decline from

the 1949 rate.

on

outstanding.

benefits put

employee

July 1, 1954 were not compensated for by any fare
the Capital management has been

It is interesting that

despite the fact

satisfactory earnings record

a

with other transit lines, the company has been
by shrinking passenger traffic.

common

income

was

$4

the

on

the

and

rose

felt

company

from

emerged

shareholders

The

stock.

old

that

the

debt,

were

1950; 1951 payments were equal

stock

four-for-one

split

was

in

but, by agreement with the Public 'Utilities Commission, this was
to $1.20 in 1954 and it is indicated that this $1.20 rate
This is almost two and a half times the 1949 rate.

reduced

will continue.

An extra dividend of
,

in

1952.

Payment

which it

years,

was

was

$2.50

a

made

felt

share

were

on

the

stock

new

was

paid

retained in prior
not necessary for the company's

out

of

earnings

operations.
Far-Flung Enterprises

y

its non-transit properties in a sep¬
Continental Enterprises, Inc. This
corporation now owns a financially successful amusement park,
and two large pieces of real estate.
Shares in the ngw company
were distributed on a share-for-share basis, tax-free, to the stock¬
1954

In

arate

Capital

corporation,

placed

known

as

holders of.Capital; these shares have
counter market for 214.
number

The

of

recently sold in the over-the*

-

miles

of

service

per

*

passenger,

provides

a

and bus service.
Capital has increased this figure by 6% in the last five years—in
1949 11.02 miles were operated for each 100 passengers carried; in
measurement of the quality of street car

good

11.69 miles were so
For

top

of

four

the

operated.

last

five

years,

Capital

has

been

It has
more

one

Total

received

has

award in its class for maintenance
cited every year for its outstanding

national

the

efficiency, and
safety

of the most modern fleets in the country,

record.

consisting of

1,300 vehicles.
To maintain its high standards, the
purchased 97 new buses in 1952, and 107 more in 1953.
of the new equipment was $3.6 million, which was

than

company

the

shares

figures are not yet available, it is understood that

November, 1951, and regular dividends on the new shares totaled
A $1.60 annual rate was in effect in 1953

re¬

In

1954

$1.40 the following year.

since

1954.

!)(>(),000

on

raised to $3 annually in

to

1953

management

addition, two cash payments of $1 each were made in March
September, making total cash dividends for the year equiva¬

great

peo¬

7,000,000

22,987,962

rate

acquisition

stated above.)

holders,

ple out of work.

have

in

that

actually thrown

1.15
1.49

entitled to a
higner return man the $2 rate (old shares) in effect in 1949. The

con¬

40% on Oct..-16, 1950; 5% in December, 1951, and
January, 1954.
Cash dividends paid since Jan. 1, 1950
equivalent to $8.79 a share, adjusted for stock dividends.

had two classes of stock,

has

the

The increase will

8,000,000

1,104,640

management

in the

technological gain has taken place
in the United States of America
it

earnings of

and

know

instance

the

that

higher for 1954.

in

new

death, he said:solitary

25%

was

standing

even

management;

my

adversary, but always, I think, my
friend.

is expected

company's consolidated net income, how¬
since it will be offset by losses in the steel operations,

Three

who

question thoroughly.

Labor Leader

company.^ It

reflected

$9,000,000

1,431,668

maintain

to

As

same

argu¬

Americans,

differing

who

this

my

L

about the

struction division will be
not

quotipg the words

famous

from

came

'

shall

I

ment

die.

at

Debt

$0.51

$492,997

21,243,806

Wolfson

level, but net after taxes had
been brought up to $3,007,475.
By 1953, gross revenues reached
$70,509,235
(rot including costs
under cost-plus-fixed-l'ee
contracts); net income was $3,494,688, a new record for the 94-

it is true of nations.. And the
day.
and.

remained

enues

-

21,743,563

that

is

affected

Along with broadening its earnings base through acquisitions,
Merritt-Chapman & Scott has been steadily increasing its con¬
struction business. In 1949, when the Wolfson management came
in, gross revenues were $38,979,081 and net income amounted to
$1,032,753, of which $976,596 was available to the common stock
(after preferred dividends). In the following year, gross rev¬

Funded

Share

None

earnings,

able

per

28,441,633

increase.

Company and The Osgood Company.

Expense

$23,144,402

through 1953.

28,765,577

higher^han
1953

Net
Income

29,139,745

into effect

Expanding Construction Business
of

im¬

27,375,794

that, in

March

substantial

*Earned

Operating

$28,042,520

While

C. A. Pitts General Con¬
tractor Limited of Toronto; Milton, Steel Products of
Milton, Pa.;
Newport Steel Corporation and its subsidiary, Utah Radio prod¬
ucts
Company; Shoup
Voting Machine
Corporation; Marion
Power Shovel

in

close to the million dollar level

or

Revenue

*Based

Company,^

Chicago

a

resulted

has

management

Operating

l>eo. oi

nation.

.

Wolfson

1951—.-

diversification

enviable position.

an

«er>tember. 1949, there were

funded debt and the 960,000 shares of common stock

no

Years Ended

$8,178

the Wolfson group contends that it has placed

area

maintained above

125,961

7,344

Devoe & Raynolds, well-known

provement in earnings. For the year 1949, net income was $492,997; in 1950, the first year under the new management, this
figure was increased by more than 120% to $1,104,640. A glance
at the company's operating statistics shows that earnings were

Shareholders:
Preferred

stock.

common

represent the sole equity.

$137,335

None

were

Capital Transit

The

to

more-highly-

to

2,894

$8,178

utility companies.

When Mr. Wolfson puroutstanding $9 mil¬
lion in 4% First Mortgage Bonds, maturing in 1964. These bonds
were reduced each year beginning with 1950, and the balance paid
off in 1954. Capital is now in a unique position in its industry, in

dis¬

workers

one-

the

rbaspd epnttvvl in

Provided by:.

responsibility

our

additional

an

1954, New York Ship acquired controlling interest
purchase of 80,945 shares of that

June,

Capital Transit in

2,799

last 20.-

prepare themselves for upgrading
into
the
better,

skilled

9,298

years

have

1955

quality of its paints and varnishes, is also very active in
the development of resins and chemicals.

$5,725

—

Total assets less

experts

next

On Jan. 10,

(including NESCO from April 23)

1954

company's class B

these respon¬

they have been in the
also

outstanding

earnings of New York Ship for the nine months

September,

In

$57,146

,

agree, I believe, that the disloca¬
tions themselves will be no more

than

the

in Devoe & Raynolds through its

$7,751

Working Capital
Land, bldgs., plant & equip., net book value
Other assets (or liabilities)

tion in the
past, and that you will
to do so in the future—

in

acquired

other items for telephone and

In another

continue

numerous

Ship

$3,849,679 before taxes. This was substantially ahead of the com¬
parative earnings figure for 1953 when no tax payment was re¬
quired. (Net income after taxes for the 1954 period was $1,981,679.)

for

loans

Accounts

per¬

1954320

2,117

taxes—

with great success and considera¬

especially

ended

$3,564

Total Current Assets—

/

have met them

you

l

Inventories —

which may result from the instal¬
lation of new, automatic
machines.I know,

that

1:

securities

Due from customers and others..——,

ques¬

us,

share-exchange basis.

a

Consolidated

discuss

have

however,

(Pro forma)

In Thousands

•

to

*9/30/54

(Actual)

responsibility of man¬
in anticipating, and in
with,
any
dislocations

dealing

1954, New York

October,

ment and

12/31/4!)

nermitted,
of

It provides

interesting comparisons with the standing of Merritt-Chapwhen Wolfson became

man

Billings

like

was provided in April, 1954,
into New York Ship. N'esco is a

merged

was

exchange offer was made for Highway Trailer common
: stock; more .than
83% of outstanding Highway common shares
-were exchanged under this offer.
Highway is a manufacturer of
"various types of truck trailers and allied products.
The company
also makes a line of telephone and power line construction equip¬

other

many

challenging

should

I

Inc.

leading manufacturer of household electrical appliances, galvanized and lithographed tin housewares, kerosene heaters, and comIn

Prepaid insurance and

tonight,

Nesco,

.for-five

security of every indus¬

that

here

•,

when

preferred stock of Highway Trailer Company of Edgerton, Wis.,

worker.

Now,
there
phases of this

ship building by making its metal working facilities
production of heavy weldments, tanks, pressure
a wide variety of other products for industry.

Important further diversification
i

5

page

orocess

by which we protect, not only the
investment of the owners, but also

:

in

vessels and

^jnercial drums.

Continued

its employees.
So in a very
important sense, technological im¬
provement

tuations

truer

never

.

of

tion

was

God,

never

Merritt-Chapman & Scott, New York Shipbuilding has

available for the

statment

The money

of course, will the jobs of all

job

can

recover

its owners have invested in
it will be largely
wiped out—and

the

be

can

strong

to surrender control,

'

that

trial

the

timely than it is today.
that our people may
forget it!

Pray

manage¬
fence.
His

productive

only

one common

wished

he

diversifying its business. Third largest builder of ships in the
country, its chief output of vessels is for the government although
efforts now are being made to interest private operators too. The
company has been providing a cushion against the constant fluc¬

more

or

the

on

Like

free!"

be

for my other
quotation,
from a man who
spent

as

and

He said

been

prophetic warning:

the

place, then that

quickly, it is through.

so,

and

rights.

length and
land, repeat¬
whistle-stop
his

the way out.
Un¬
its lost ground

on

can

hearts

and

"Only

American Labor.

stock issue, with equal voting
and to rely on
the approval and confidence of all shareholders.

classify all shares into

this

of

every

a

solemn

and

modern,

competitors to undersell its prod¬
ucts in the market

the

ing

Willkie;

stumped the

breadth

America

plants

its

thus allows its more-efficient

and

the

people."

That

:

one

word:

bor—he

statement, of course, was
both wise and
true; and I ear¬
nestly hope it will always live on,

million

the autumn of 1940—not
months before Pearl Har¬

many

ad¬

an

of

know, is all bound up
simple and
compelling
"competition."

as

employment field

was

during

past 25 years has brought

into the

Wendell

name

States

ditional, 20

gains from

And the

that has

de¬

purchase

direct

no

expenditures.

revolution

place in the United

in.the

the

upon

proved machines if its owners re¬

ceive

the industrial

taken

43

(843)

cost

paid in cash.
While

the

stockholders'

Wolfson

right to

a

been solicitous for the
fair return, the record substantiates the

management has

Continued

on

page

44

44

(844)

The Commercial and Financial
Chronicle...

Continued

from

THE

43

page

INVESTOR

RECORD

MERRITT-CHAPMAN

Observations
new

195

management's claim of conscientiously fulfilling its obliga¬
enterprise as a model operating company.

to

reason

be

would

well

satisfied

with

Wolf-

that

personal

my

future could

be

not

similar situation exists at
have

creases

ranged

from 20%

more

than

100%.

the habitual kudos from his
executives, J. P. Ecker,
dent who has been in the
company's employ for

In

are

better

than

Powell, Secretary of the
and

of

one

its

while I did
well

treated."

administrative

assistant

feel that I

me

Ralph

I would

Uhl,

with Capital
1945, has summed

since

was

be properly

the

rewarded

since

the

up

T.

and

general

working with him instead of for him,
helpful. The association has

L.

stantially

that

Frank

when

he has turned

other companies, some of them
at sub¬
than the salary he was then
receiving.

Bloomenstiel, also with

NESCO when Wolfson

came

in

and now
Secretary of New York Shipbuilding, adds: "What I
par¬
ticularly like about Wolfson is that he delegates
authority. When
he gives you a job to
do, he lets you do it. Of course, he'll
chop
your ears off if you don't come
through, but if you have faith in
yourself you want it that way."

That
In

some

quarters,

has

been

of

a

any

ap¬

when

bond itself.

an

source

recently turned down

an

which would have meant

necessary
that Wolfson

a

vately owned, whicn

were

wartime

Wolfson

shipyard properties, both
disposed off back in 1949. Both

emergency operations, and their
different from that of
many other such

postwar

fate

are

has

prir

was

no

after

he

purchased

it.

to bid

competitively

governments.
was

on

postwar shipping orders,
mostly for foreign

When these contracts

were

disposed off profitably.

completed, the property

The other

shipyard in which Wolfson had an interest was the
St. John's
Shipyard, purchased from the Maritime Commission.
to

this

Yard

familiar with

for

Far

licly that in
reflection

on

was

accordingly,

he

was

thoroughly

was able to estimate
its-value
the winning bid when it was
sold by the

liquidation

from

active had been
selling supplies

was

time;

the property and

closely that his
ernment for

some

so

gov¬

purposes.

being liquidation-minded, Wolfson has
stated pub¬
his opinion "liquidation of
any going concern is a
management, which may be

for the failure of the
he would

business."

considered

Meanwhile, it
and

New

Income

York

has

services and
been

would

Ship

been

seem

increased;

products

have

that the records of
a

sound

trade
been

broadened; shareholders

building

positions

and

for
the

the

future.

quality

improved; earnings bases

of

have

and employees have been
accorded
equitable treatment.
Will the Wolfson
policies be equally productive when
applied
to
Montgomery Ward, should he succeed in

of that




York

Stock

on

after

the

Jan.

-

system

Our

of

irre¬

and

why

from

category of money
irredeemable currency.

the

Jan.

on

stock

1953

was

30,

$20

distribution),

it?

this

of

share

the

(50% stock distribution)

to

Dec.

cash

Income

on

$2.00

(2)

$1,500

would

of

have

$10,000.
1954

received

The

return

12,

plus

new

were

is

for

value

of

$20
so

per

the

original

this

apparently

the

of

the

a

by

gain and

people.

It

device, by

one

that

means

can

of

government

control,

obtain

can

elicits

almost

taste and effects.

share

(3)

pur¬

to

the

on

Its
Cash

Dividend

existence

of

irre¬

an

be

Income

part

of

the

government.

in this country might well
labled
"The
Shame
of
the

use

Dividend

per share

The

deemable currency is evidence of
either fiscal or moral bankruptcy

invest¬

Government of the United States."

(4)

Its

involves

use

double

a

500

$0.50

$250

500

3.00

1,500

respect to
responsibility for promises to pay:

3.00

1,500

one

500

(stock split, 4-for-l)

1,500

standard

for

eral

<

2,000

3.90

7,800

2,000

1.20

2,400

our

in

government and Fed¬

people.

cused

500

2,000
—

.25

,

morals

of

Reserve

our

—

[

approval of the people
they are subjected to its

onee

investment

Cash

shares

there
irredeemable cur¬

universal

split),

his

dictatorship,
one

control

a

currency

of

government

a

which
such

was

stock

through stock split

(after Sept. 12)—

we

currency.

government
Wherever one sees

sees

It is

maintain

Sept. 12, 1949

1949

Shares purchased

during

also

which

Exchange)

shares
and

the

dollar

economic

while

irredeemable

government

COMPANY

Stock

on

in

our

irredeemable

instrument

an

one

89%

500

better

irredeemable

longest

came

An

is

shown in the following table.

are

an

rency.

Sept.

of

an

our

totalitarianism.

TRANSIT

man's

of

depreciation

power

under

using

$18,937

approximate price

greatest

depression

750

American

is

abuse

—

plus

CAPITAL

his

It

currency;

—

dividends

(Listed

the

promise.

the

occurred

Dec. 31,

investment

his

currency
to

purchasing

17,437
of

in

The

share

the

of

the

Cash

per

fulfill

paper

leads to deprecia¬
purchasing power of
monetary
unit
and/or,
to
severe
economic
maladjustments
and, finally, economic collapse.
tion

pur¬

Dividend

250

-

to

currencies.

investment

investment

500

a

than

willingness

redeemable

1953

Cash

tribution

and

currency
can
de¬
preciate in value to any depth; a
redeemable currency cannot.
Ir¬

Dividend

plus stuck dis-

—

and

as

Paper is

better

no

evil

as

Irredeemable

per

so

is gold;

is

promisor

following table.

during

,

gold

promise

CORPORATION

19o4

banks,
The

another

former

are

for
ex¬

from

redeeming their bills
credit—except when presented

of

by
non-enemy
foreign
central
banks and governments. The latare bound by our
body of con-v,

1954

—

——

—

2,000

*1.40

'

ter

2,800'

tract

law;

redeem
one

shars

Dividend

Continental

Enterprises in May.

income

face

~

use

Capital

Transit

Company

Continental Enterprises

10%

(unlisted)—

Percentage

a

people permit the

'

-

of irredeemable currency
they
control over the govern¬

gain

on

initial

$10,W6

in-

This

4,500

of

the

public

purse* *

illustrated
our

by the spends
government since

1932.

(6)

~

The

infliction

of

an

irre-

deprived them of

a

valuable and

far-reaching property in gold, a
right in a commodity having the
quality of most universal accept¬

request, we have compared the fig¬
column, "CORPORATE GLADIATORS—
Wolfson Record" with those appearing in published
your

ability.

your

reports, current prospectuses filed with the Securities and
Commission, published financial periodicals, and find
that such figures have been
accurately reproduced.
Yours very

truly,

rSigned] PRICE WATERHOUSE & CO.
City, Feb. 15, 1955.

Possession

of

that

and preservation of human

have

annual

Exchange

•

deemable currency on our people

325%

To Mr. A. Wilfred May:

appearing in

use

is

ing orgy of

$42,500

vestment

New York

When

ment's

21,250

2Yi (bid)

Value of investment plus cash dividends

A Look at the

toor

courts.

forfeit

31, 1954:
.

they are required
promises to pay

their

our

(5)

$16,750

Value of 2,000 shares at
closing price Dec.

ures

in

the dangers

are

our

currency,
be rescued

monument

value

and

on

1953

_

Evils

no

Exchange)

30,

(after Jan. 30)_

ousting Mr. Avery and

company?

in

we

ability

price

In accordance with

Merritt, Capital

more

obtaining control

22,170

interests obtained control

return

1952

.

pursuing.

and

(1) Though there are varieties
of irredeemable
currency, there is

responsible

a

indicate

should

He

has also said,
however, that
business if he believed it
imperative
for the protection of
stockholders' interest.

definitely dissolve

evils

paper;

SHIPBUILDING

shown in

are

*Also-

Other companies in which he

1,838

206%

New

ing price of 23%

1951

'

now

Currency

initial

1950

The

property was sold to
him in 1946 by
prominent Tampa citizens who saw that
liquidation
was inevitable and felt
that they did not want to
appear respon¬
sible for the closing of the Yard and
the attendant
unemployment.
More efficient control and
operating economics enabled Wolfson

are

What, precisely,
and

plus

calendar years:

Ironically enough, instead of rushing into
liquidation, Wolfson
the Tampa Snipbuilding
Company operating for two and

for

reasons

System of Irredeemable

$30,645

$13.33

The

Dividends paid

kept

years

we

Dangers

1,837

2.00

Shares purchased

1949

others

devoted to repair work
only.

one-half

195

1954

Dec. 31,

were

that

can, and
should, con¬
with
confidence
on
the

The

$8,475

on

YORK

to

$10,000.

ment

believing

we

—

(equivalent to $5 after the four-for-one

country.

now

gain

approximate

The

facilities in various parts
A recent tabulation shows that 53 out of 121
ship¬
yards operating in 1945 have since been
closed; while three

of the

2.50

184

for

demonstrable

no

rived

1,470

,

dividends

(Listed:

chaser

It appears that the
only liquidations with which
been connected were two Florida

2.00

The Wolfson interests purchased
control

offer for his

interest in Capital
Transit,
very substantial profit.

grounds

tinue

Percentage gain on initial
$10,000 investment

the

a

supposing that evil days can over¬
take
us
until
they arrive;^ and
that since they have not
yet ar¬

840

919

investment

NEW

Value

Agreement
$18 million bid submitted by Merritt at

that company was not able to
secure
It is also reported
by a reliable

by

the penalties for
error; that there
are

1,190

$10,000 investment

1954

liquidation. One example of Louis Wolfson's
personal concern for
Merritt-Chapman & Scott was his arranging to have U. S. Wolfson
Brothers (a privately-owned
family enterprise) sign an

Indemnity covering

of

cash

1953

pears to lie more in making
money over the long term by provid¬
ing efficient management than in realizing
quick profits through

time

1.20

1.70

735

calendar years:

and

group

of

900

Value of 750 shares at clos¬

being

liquidator. But actually there has been no
liquidation of
publicly-owned corporation under the Wolfson
management,
none seems
contemplated. The interest of the Wolfson

a

$400

1.80

J

Dividends paid

*

accused

*

.

1954

Liquidating Charge

Wolfson

$0.80
*

1954

(equivalent

31,

*

t

ped¬

controlled

special Providence protects the
people of the United States from

Income

chaser would have received 500 shares for his
original
of

be

can

"practical politics"; that there-are
good

35

-

i

economic

a

ing price of 24 %, Dec. 31,

The

Purcell, Executive Vice-President of Nesco

more

—

The Wolfson

stimulating."

Wolfson bought into the
company, has stated

and

of

government responsive to popular
of what is said to be

Cash

700

stock dividend)__

Percentage

beginning, Mr. Wolfson

down several offers from

ants

of

Dividend

per share

735

Value

and that my work was
important and
been extremely pleasant and

Robert

Cash

Dividend

700

dividend)

concoctions

Value of 919 shares at clos¬

and

1927

investment

ly

deemable

company, has spent 26 years with Capital
he states:
"I have felt certain that

employee attitude by saying: "From
has made

Mr.

purchaser

200

———

(25%

Currency
f

the

Dividend Income

predecessors;

worthwhile job
Miss Augusta

a

him."

so

course

1954

time I have never seen
greater consideration and approval for
well done than that experienced since Mr.
Wolfson became
Chairman of the Board of
Capital Transit. It has been a rewarding

with

stock dividend)..

.<

concepts

500

stock

And Sound

share

per

investment to Dec. 31,

500

—

—_

1954

work

work

of this

———————

(5%

$20

was

original

dend shares

1953

community and the employees. "Along with this," he adds, "there
has been an improvement in the
morale of all the employees,
practically all of whom I direct." The same attitude is shared
by
another Vice-President, E. Cleveland
Giddings, who has been con¬
nected with transit companies for 25
years, and says: "In all that

his

plus stock divi-

,

1952

has stated that the Wolfson management has succeeded in
integrating the company's operations to the best interests of the

satisfactory experience to

(40%

1951

25

1949

following table.

1950

years,

and

value

and

on

:

Why We Need Honest

.<

..

May 6, 194S

dividends),

for

—

1950

Vice-Presi¬

a

shares

during

(after May 6)

1950

ex¬

6,

Shares purchased

1949

line with

more

500

stock

calendar years:

Capital Transit where salary in¬

to

received

Dividends paid

enhanced with any other organization."
A

are

May

on

on

•

The return

working conditions are good and employee morale
is high.
Salary levels generally are higher than they were in
1949, with typical increases averaging between 30 and 40%. In
the opinion
of William Denny, Executive
Vice-President, the

I feel

have

price

shown in the

that

excellent and

Continued from page 7

CORPORATION

elected Director

was

after the

1954

management, it appears that employees of the companies have
almost fared equally well. Inquiries at
Merritt-Chapman & Scott

company's progress under Mr. Wolfson has been marked by
pansion and growth; he added, "the prospects for the future

approximate

$10,000.

son

reveal

Wolfson

(equivalent to 10%

Employee Morale
have

Louis E.

The

.

shareholders

SPELLED-OLT

SCOTT

(Listed: New York Stock Exchange)

tion to continue the

If

&

Thursday, February 17, 1955

been

natural

and

right
liberty

insepa-»

rable companions.
-

-

(7) Our system of irredeemable

currency

because

rests

our

upon

dishonesty

United States govern¬

ment is not

fiscally bankrupt and
because, while it declares that our
standard

monetary unit is

a

gold

.

Volume 181

Number 5404

The Commercial and Financial Chronicle

...

dollar

redeemable in

weighing
15 5'/21 grains,
fine, it forces irredeemable
bills of credit on our people and
prohibits the use domestically of

foreign

standard

tional

9/10

ment

gold

of

This

money.

ele¬

dishonesty in our cur¬
is generally ignored

rency system

brushed

or

cles.

A

in

aside

cir¬

official

fairly typical attitude in

respect

to

manifestation

this

of

Multiple
tion's

1949:

'

the

kind

most
appropriate for
varying needs.
(9) It reduces our people to the

their

level

of

those

third-class
not

in

second-

a

nation

whose

accustomed

throughout

standard

who

gold for

the

national

the

to

use,

settlement of inter¬

It

people in favor of

©ur

list

of

against
selected

a

foreign central banks and

governments

whose

©ur

gold

much

and

often

are

much

demands

for

more erratic,
higher, than do¬

mestic demands.

the

Benefits

that

field

de-

is

of

to

Be

from

What

from

a

the benefits to be had

are

known"to tmane1tt^eh™^t7t
has

integrity in itself and its

istence

part

indicates

of

integrity

central banks in

so

tnre of the neonle's

ex--

the

on

officials

government

far

and

the

as

monev

i<;

(2)

Redeemable

deor^ate

For

example, in
1931, foreign demands reached a
monthly level of 15.83% of our

cannot

eo?d

bills

and

contains
extent

in

which it

credit
of

currencv

limitations

great

the

on

depreciate

can

in

purchasing power in terms of
goods and services.
(3) Under such a system all
types of dollars are freely convertible

into

another

one

and

individual can choose the
variety that best meets his needs
every

Such

desires.

or

a

would

currency

provide the maximum of convenifor

ence

people.

our

With the right to
restored to our people,

gold
every inthe smallest

(4)

own

Domestic
demands
including
reached the low monthly level of dividual,
1.44%.
For the ten-year period, saver, is provided with the safest
1923-1932, the common top means, known to man, to guard
the value of his savings. He can
monthly percentage of domestic
invest in a commodity of universal
withdrawals
was. approximately
acceptability if he is seeking the
3%.
'
maximum of safety.
Since Jan. 31, 1934, non-enemy
(5) A redeemable currency is a
foreign central banks.and govern¬
basic and inseparable instrument
ments have had the right to con¬
gold

stock.

T

.

vert their dollar claims into

gold.
they took $1,743,300,000
©f our gold;
in 1953, they took
$1,161,000,000. Our people, during
the years since Jan. 31, 1934, have
been compelled to sit on the side¬
In

1950,

lines with their irredeemable

over-valued

and

per

in

un¬

preservation

of
human
oppressive govern¬

ment.

The existence of

(6)

the

to

our

currency

our

variety of

any

globe

without

terms of gold and,

re-

dol-

our

discount, in

maximum of honor.

Such

invites

currency

a

or

in

of

and

our

its

continuation

to

to

be

tinue in business.

able

to

sup-

intro-

deserve

are

ex-

Chairman

letters

J.

W.

of

Ful-

Banking and CurCommittee of the Senate

Chairman Brent Spence of
Banking and Currency Committee- of the House should bet
urged to hold hearings on these
and

the

con-

Such pressures *

observable all around

are

to

be

of the

rency

keep selling prices above
order

will

Still others

men

approval.

bright

universal effort in business cir-

costs in

bill

again.

These

progressive depression of our
dollar—become endless. There is
cles

his

pected to introduce such bills,

—

for

a

reasonable

seems

that

duced

pursuing, the

for

pressures

jt

pose

on

us as we

betv/een

race

w«S

^resume^ redempUorft at^the
earliest^^Dortun^
^ ^

'

ftft?

,

'"-"v*' 1"*

currency.

:;'V'

-

co„

J
Urgent Need

TT

Ine

Q

ft 11

_T

;

,

more saving' more investment> a people of this
better market for g°ve™ment se" a statesman to
ble

cu"tieis, outside banks

Problems
of
credit
control
would still be with us. But our

nation

is

do all

find

machinery of credit control would
no
longer be operating like a

to

locomotive without automatic

that

would

him

the

women

to

their

issue,
power

help him.

It

reasonable to suppose

seem

5,000

within

and

devoted

men,

that

to

brakes. A redeemable currency- task, could succeed. This would be
Provides an ultimate brake on an undertaking of supreme imporma5.® recklessness in the use of tance; its sole purpose would be to

credit. No nation

safe when its

is

this nation from serious dis-

save

money managers can operate free tress, possibly revolution, in the

from tiic restrictions on human
foolishness which a redeemable
currency can, and ultimately does,
suPPly- A gold standard exists be.cause men are ft 1 ,e and wftn
*bey recognize that fact. Its ab-

?*ncereveals fiscal bankruptcy, or
the
desire

central

of

bank

officials

restraints

of

government

under

and

be

to

free

which

they

™ust operate if the people are to
bave an honest and sound cur-

face of

the fact that

either possi-

bility is generally regarded today
as highly improbable.
Wise
nature

of

men

teach

should

two

expect

would

and

the

clearly

undesirable

There

5,000

when

course

past

we

of

abilities.
be

the

what

either

its

take

lessons
that

do not consent to let

men

is

prob-

appear

to

in this

women

who
understand
these
lessons and who have the qualities

to

find and

to

support

freedom from government oppres¬

in

sion.

ator, Representative, Secretary of
the Treasury, or President, who,
like the good physician, will conduct the fight necessary to remove
our
drug of irredeemable
currency
and
to
provide
our

With

facts such

...

avail-

these

as

.

from

irredeemable

an

currency? The answer would seem
while we have had the
istortune to become the victims
0 a deadly drug we have also
su^ered from an additional misfortune:

an

effective

the

manner

Sen-

requires

that

men

and

be correctly informed and

sufficiently ' strong
not
to
be
by the tide around them,
That tide is running strong these
days; and it seems to be gaining
in momentum. The pro-irredeemable
currency
people have reshaken

vealed
hold
last

a

confidence

new

in their

government since the

our

on

election.

The

nature

of

the

witnesses

they are calling in to-*
support their theories should send
chills up the backs

But of

course

the

of

people,

our

general public

do not understand what is taking

place.
Though the movements toward
Socialism
in
this
country
art>
many and complex, the fact deserves emphasis that each citizen
can line up for or against socialization of this nation by simply
supporting or opposing the use of
irredeemable currency,

nation

necessary

citizerv.

currency

such

for

responsible

and

A stand in behalf of„a redeemable

ac-

Responsiand women, who under-

men

veal to him and to others-hist
character and capacity as an in-

the

emerge.

stand the seriousness of this

should

-

telligent

It
should
be
growth of well-grounded con¬
obvious, if
fidence in our future, a sounder preceding observations are
variety of business expansion, curate, that the urgent need of

rescued

(7)

decline

power

could' selling

It

the public purse

assures

progressive

a

purchasing

money. Once a nation embarks
the course we are

therefore, with* note the

able to our lawmakers and leading
citizens, why are not our people

currency

lowing
the

costs and bills, and Secretary of the Treasprices." (2)' We may yet' ary,: George M. Humphrey, and
be expected that multiple quota-- have "the good" fortune to be' res-' 1 he - President should be urged to
tions for the dollar would dis¬
cued, before catastrophe overtakes ' support-them. •
appear and that a great encourus, by a statesman, or statesmen,1
Each one of us can make himwho understand the nature and self helpful or non-helpful as he
given
implications of an irredeemable" chooses. That " choice should re-

redeem-

a

restore

the people
that they have ultimate control o£

able

pa¬

silver,

the

freedom from

deemable,

narrm-

terms

redeemable

a

to

of

Were

(14)

the

redeemable currency?

a

would

lar could travel over the face of

money.

Had

Redeemable Currency

a

obligations.
discriminates

(10)

world

a

in

It

people the device without which
human freedom cannot long be
preserved. A redeemable currency
and the growth and preservation
of human freedom from government oppression have been natural
companions in human history,

currencies

cerned

afford

cannot

or

resort

such

■'

people

to

by

or

gold
it, and
domestic¬
ally, of a money made of cheap
materials, reserving the use of
are

crippled

irredeemable

of

*

the standard dollar and to choose

is

We, at least, could
adding to the chaos
which prevails because of the use

"I perceive no moral problem in¬
volved in this question of cgold

convertibility." *
(8) Our'system deprives our
people of the right to convert the
various types of our dollars into

(13)

na-

impediments.

The

in

a

have avoided

Reserve

said

for

are

trade

moralized

who

fixed rate.

a

impediments in
exchange; and interna-

money

dishonesty was revealed by the
president of one of our Federal
banks

gold at

quotations

nation

No

can

be

socialized

if

the people have a redeemable cur-

No

rency.

person

is

justified

in

insisting that he opposes socialization of the United States if
he advocates or acquiesces in the
use of an irredeemable currency,

Apparently
munist
other

every

and

identified Com"

Socialist,

advocate

of

a

and

every

governmen-

people with an honest and sound tally-managed economy, in and out
economy
on
the part of
money.
Until
such
men
and of our government, opposes a regovernment; and it provides the
women can formulate a workable
deemable currency. Wherever one
atmosphere conducive to the balprogram, they can at least supporrt, looks and finds a government dicancing
of government
budgets.
we
have not had in our and uphold the hands of the memtatorship, there he finds an irreDuring the 21 fiscal years, 1934000. The surplus gold certificate
government a sufficient number of bers of the Economists' National deemable
currency.
But that fact,
reserves
in our Federal Reserve 1954, under an irredeemable curCommittee
on
Monetary Policy which should be thoroughly obbanks on that date amounted to rency, the Federal budget yielded good students of this drug and ot
who have been fighting for an vious to our
a
people, seems not to
surplus in only three years— Pe°Plf s reactions to it to be reover $9,568,000,000.;
honest and sound money for 22 be
comprehended,
1947, 1948, and 1951. During the ne^ea 01 «•
.
,
(11) Under our system, the re¬
preceding 21 fiscal years, 1912Such relief, if it is to be had, years and who as technicians in
The
p]e f the United States
serves
in
our
Federal
Reserve
the
field
of
money
could
be .:are
1932
(with 1933 eliminated be- can be expected to come without
marching aiong on a broad
banks are usable only by foreign
counted upon to aid such a group
cause of its dual nature in respect
?? ftft demand for it.
Iront toward Socialism, as though
central
banks and
governments,
to the existence of redeemable and
Manifesting all the major charevtry Pos
;ay:
.
.
' in a trance. Our economic illitalthough these reserves are set up
Each of us needs to examine
irredeemable currency), the budgeraty
and proneness to become,
we
against all notes and deposits of
himsek with the utmost care to
et yielded a surplus 14 times.
add ct, we marshal all the argu
vicUJms of a mania would appear
Federal
Reserve banks
most
of
determine whether he understands
(8)
A
redeemable
currency ments+
agaJnst relinquishing our the nature ot an honest and t have been established beyond
which are held domestically.
In would
reestablish
one
common
monetary drug
able

utilize their usual 3%

to

less of

or

forces

gold stock. 3% of our
$21,714,000,000 of gold stock (as
©f Jan. 19) amounts to $651,000,our

^

far

domestic claims

as

cerned,

these

are

con¬

are

reserves

not

usable except among the Reserve

banks

and

portion

the

government.

of

them may
mestic circulation.

(12)

Our

No

eral

Reserve

held

to the

to convert their dollar claims into

This state of

affairs raises

the question of whether
considers

ernment

the

our

gov¬

people

of

people
bility

officials

Reserve

would

level

raise
of

war

with

our

no

in

those

rnmnpllpH

*•

currency

second-

a

who

fn

cheap'

proper

*

people from the

our

third-class nation

it is

at

has

place in this country.
(9)
A
redeemable

arp

fact

be

of ob-

in this nation. Privilege
corresponding responsifor Treasury and Federal

made of

in

would

standard

me

or

choose,
a

or

mnnPv

materials the vol-

been made by Treasury and Fed¬
eral Reserve officials to the ef¬

of which ean be expanded
easily by a corrupt government.
(10) It would eliminate the dis-

fect

crimination

people.

Various

that

trusted

people

our

with

statements have

a

be

cannot

redeemable

cur¬

ume

in

and

against

favor

of

a

people

our

select

that if they had it they foreign central banks and
might injure the Federal Reserve men^
'
banks or Treasury or both.
rency,

list

of

govern-

,,

T,

rency,

As

an

except

irredeemable
for

a

cur¬

selected

list

[hese
tnese

ft

,

..

£ would make the reserves

of the Federal Reserve banks and

usable by our people,
merely by a select list of for¬
eign central banks and govern-

Treasury

of central banks and governments,
©ur dollar circulates abroad with

diminished honor.

The

ments-

lar

or

count

it

is

bank
in

not

deposit goes at

various markets

maintained

on

a

dis¬

because

AT

not

a

parity

which

enemies

$35 per fine ounce through free¬
dom of redemption.
Our dollars

eliminate

are

therefore

subjected to multi¬

ple quotations because one is
longer as
good
as
another
should be the

case

were




no
as

tion the

whether
our

it

government places the

our

with gold at the statutory rate of

of

this

from

is

in

It

would

justifiable question as to
government considers

our

people its

they all people.

nation.

serious considera-

fact

enemy

at

and whether

war

with

our

f h

because

A

the

would
w»

act

A+

A aa

of

mass

be-

AAV\

I

A

people

would understand or applaud his
Pr°grarn. The applause could be
******* to ft0™5 ftnly afft\he
acted and after the people beSan to

realize the great benefits

flowin£5 from such statesmanship,
Secretary
Treasury John
Sherman
was

in

1878

before

berated
the

and

booed

institution

of

ademption on Jan 2, 1879I, After

ademption was made effective, he
wa? wlned- fined and painted,
and a year later his name was
in

nomination

for

the

presidency. He went down in history

as one

men

of his day_as

honest

and

sound

of the greatest states-

of the

indeed he

was.

answer

to

Future?

ir¬

be

an

currency;

nation

from

the

the

we

should

consequences

which should be expected to await
because we are disposed to defy

us

the

lessons

which

non-socialist

monetary economists recognize

as

irredeemable currency fosters,

in

some sort of revolution fol¬

for

granted

people
that our

government is to be our manager;

and not. only that, it is to manag©
rnajor affairs of the people oi
great areas of the world. We call
such meddling in the affairs of
°thers our llew leadership in the
world. Our Treasury is to be used,
and our people are to be taxed,

write when and where he

sertion can make it so.

He

can.

help organize what he hopes
may be an effective bloc of pa-

can

triotic

men

and

and

Robert

Hale

Representative

of

Edgar

Hiestand of California have, each,
introduced two gold standard bills
in this Congress.
has

stated

introduce

that

his

Senator Bridges

he intends

gold

which

hearings
March-April, - 1954.
on

to

standard

ard

bill

gress

in

each

were

re-

bill

held

in

Representaa

gold stand-

session

tional

state of madness in w
are living.
Every

women.

faithfully introduced

or

it

and peoples outside our naboundaries. Our currency
he can do something—to help save
must therefore be irredeemable
this
nation
from
what
history paper, it is assumed, so it can
teaches us we should expect un- expand as the desires of our govless we change our course to the ernment
to spend dictate. Our
proper one. He can write or visit
officials no longer deal seriously
with his Congressman and Sena- with the question of lack of hontors, or Secretary of the Treasury, esty ln our currency. They simply
or
the President.
He can write
our Peoplc oyer and over, like
letters to editors of newspapers
hypnotizer, that our curren y
and magazines. He can speak and is sound, as though repeated as-

tive Daniel Reed of New York has

an

take

areas

economic

which

to

Every informed, concerned, and
patriotic man can do his best—

expect to end
either in a business collapse arising from the growth of serious

maladjustments

doubt.

This madness causes our

for the benefit of a multitude of

valid>

Maine

question,
What of our future?, is a relatively simple one if we may rely
upon past experience for guidance:
(1) We can continue on our course
which

an

whether, if he decides in the negaas he should, he proposes to
do nothing to help to save this

Representative
What
The

(12)
It
would
remove
our
people from the same category in

statesman

cause of his wisdom and integrity

n

reasonable

sound
currency; whether
redeemable currency can

arguments are a measure of tive,

economic illiteracy and of the
degree of danger in which we are

not

The paper dol¬

Ire^measur^ot

arguments

placed

.

£

(13)

v^hich the human
mind can dfvise. These arguments
^re. natural consequences of the
^eais which an irredeemable cur-

without

this nation its enemy and whether
not

officials

same

ligation that is applied to all other

of

able

gold.

of honesty in respect to
obligation to redeem bills of
credit. Our government and Fed-

do¬

enter

irredeem¬
currency puts our people in
the same class as enemy nations
and
their
central
banks which,
like our people, are not permitted
system

standard

the

,

^arshaTall^fte areu?

^dfet

so

,

„

of

Con-

during the last several years,

buc

is

we

thoughtful citizen needs

consciously to choose the

ground

which he will stand. The gfcat
majority of our people, as in other
nations, can be expected to float
with the tide. Every person who
has considered the evidence and
on

argument produced here
be able to decide whether

should
he will
oppose or aid socialization in this
country. All he need do is to decide whether he will oppose or
aid

the

rency

use

of irredeemable cur-

in this nation.

46

(846)

The Commercial and Financial Chronicle..

\

from

total installed

14

page

the

imately

40

1975

Continued

against

would still be carried by the gov¬
ernment.

as

watts.

contribution

past two years.
Our

and

five

cost

kilowatt

of a

target

between

mills

seven

re¬

quires that certain conditions be
First, the cost of the moder¬
and the uranium fuel must
not be excessive. We see no dif¬
met.

ator

this score. Second, we
must achieve an efficient utiliza¬
tion of the natural uranium fuel

ficulty

on

order

In

have

this

In

irradiation.

undergo long

must

elements

fuel

reactor.

this, the uranium

do

to

the

to

entered

is

which

respect

established

already

we

some

records with the NRX reactor. We

able to re-cycle the

must also be

Plutonium and depleted uranium
which

Finally,

elements.

fuel

radiated

ir¬

from the

extracted

are

reactor must be capable
producing the kind of tempera¬

the power

of

tures in

production of steam. These

mit the

give

you

indication of the wide range

some

of

will

conditions

several
►,

coolant which will per¬

a

which

problems

engineering

solved. I will mention a

be

must

all

Use

The reactor materials,

especially

the

uranium

the

for

sheathing

fuel, must be resistant to high
temperatures and corrosion, and
at the same time must have the

optimum neutron-capture charac¬
teristics. Sheathing materials now
in

in the NRX reactor will not

use

perform satisfactorily at tempera¬
excess of 250° F. A cheap
and
efficient
chemical
process
tures in

extracting

for

found

be

must

Plutonium, depleted uranium, and
fission

products from the irradi¬
While the gen¬

ated fuel elements.

equipment in the power
reactor
can
be
designed
along
conventional lines, the handling of
erating

the reactor and the

the coolant in

of steam
from
coolant will require a broad

the

production

of engineering

gramme

fields

ment in such

pro¬

develop¬

heat trans¬

as

fer, fluid flow, and steam cycles.
As

Chalk
of

have

we

River,

know

at

the

will

reactor

be

rods

tubes

or

the

utilities

to have one

like

will

we

instru¬

tric. This will involve research
reactor

and

capital cost of an atomic sta¬
will undoubtedly Exceed the

capital

of

cost

conventional

a

station.

thermal

Experience
to
capital costs
must be reduced very greatly, if
that

indicates

date

the

benefits

are

not

offset

be

to

lower

of

fuel

entirely

by

seemed obvious that
at some stage we should apply the
nuclear technology which we have
First,

it

developed

Chalk

at

1947.

We

know

of

this
building

doing

and

of

River

no

better

since
way

by

than

designing
power
reactor

a

using existing nuclear data. Early
in 1954

study

a

power

was

reactor feasibility

started at Chalk River.

The

resources

be available

small power reactor with an
electric output of somewhere be¬
tween

and

of

to

5,000

10,000 kilowatts,

and

prepare

rough estimate

a

its cost.
As

now

a

been

construct
power

of the

study, it has
decided to design and
small

a

or

prototype

reactor.

Proposals
have
a group of com¬
have available the

been invited from

panies

which

design and development
experience and shop capacity. The
necessary

prime contractor will be respon¬
sible for designing and building
the

reactor

and

for

mechanical

performance. The contractor will




thermal

rate

of

power

for

the

been

past

assume

that

this

will

continue

years,

put

a

at

the

in

economic

same

giving

evaluation

time

to

the

of

While

growth

this

region—a

represents

1975

the

in

wish

to

make

it

be

give

the

you,

I wish

assistance

to acknowledge
we
have received

from the members of the commit¬
tee

in

compiling the statistics

which the forecast is based.

on

These

statistics show that the annual in¬
crease

in

1959

Ontario ' in

about

approximately
of
capacity,,
approximately 5,000,000
kilowatts

leaving
kilowatts
vided

of

capacity to

between

With

the

1960

Lawrence

be

pro¬

and

completion

1975.

the

of

development,

tional

their
the

in

power

Canada

view that

my

hydro

fuels

those

which

is

design

Ontario

*

St..

results

of

this

and

excessive.

I
a

in

use

in tnis
the

suggest
pacKage

the

re¬

North.

Tne

partnership of

business is not peculiar
A similar trend is now

to Canada.

under

in

way

govern¬

the United

States

and in the United

Kingdom.
that I have been

Over the years
in Ottawa I have had occasion

of

read many

the

where

it

might
small

a,

ment and

to

resolutions concerning

relations

of

government

and

industry

which are passed from
time by Boards of Trade
throughout Canada.
Underlying

thermal

see

new

1

of

proposed

time to

also

industry

most

which will be capable

of

these

resolutions

principle—with

supplying the commercial

ket

for

The

reactors,

mar¬

com¬

reactor

concur

should

that

which

is

the

I

wholly
enterprise

be

private

allowed

the

maximum

materials, - and re¬ freedom in developing our coun¬
actor fuels, here and abroad. ■" '
■
try. A corollary of this principle
Because of this, I believe the m.rst be
the willingness of private
utilities

when

industry and

enterprise to risk capital in

accept

should

fields.

some

share of the responsibility for the

reactor program.

power

As I

I

more

know

neatly

tion

see

it, the future role of Chalk River

than

tion of

Continued

from

of

satisfies this

the

new

field which

no

industrial

condi¬

applica¬

atomic energy.

14

page

Uranium and Its Commercial Future
million

40

will have

been

be met from

stallations

installed

thermal in¬

of

reserve

country.

uranium

industrial

develop

so

that

will

1975

year

fueled. These conclusions

be

are

so

we

tional

sup¬

dustrial

ing authorities in both the electric

were

A

plant

power

fueled

energy industries..

with

that

uranium

its reactor with

have

also

to

be

have

we

had

supply
for its chemical or recycling
sys¬
tem.
Once in
operation in the

lion

generation

that

up

replaced.
depends

reactor
or

How

the

fast

whether

on

or

such

type

to

another.
The

year

grade

.using

reserves

we

in reserve, oil

at the

up

barrels

a

rate

day,

all

domestic

our

needs

uranium with

fissionable

Output

ore

are

few bil¬

a

oil

billions

plenty to spare
for export in the form of finished

Probable Increase in

of average

we

meet

for

Uranium

total

many

and are replenishing through new
prospecting and development? We
should get ourselves in a
position

not the

one

of

than

of about 6 million

inventory is used

being used is of

gotten in this respect if

have produced and

of

uranium in
up

na¬

present

our

developed only

barrels

rather

electricity it uses
fissionable material which must

be

a

alone, even if there
military requirements to

We have built

we

It

extra

an

be faced with

industrial growth on fuel—mostly
oil and its products. Where would

load

operations.

will

uses

no

meet.

full fuel supply

a

at the very start of
must

is

must

uranium

fast that the danger is

shortage of uranium for in¬

ported by the views of outstand¬
and the atomic

for

uses

plants built
will

the

this

in

ore

Rather I think that the

after

product, reactors

and

the like.

We will have to be mining per
5,-_.
year more than a half million tons

portion of this
kilowatts will, therefore,-

have to

of

central station electric

fully de¬

major

000,000

kilowatts

generating capacity will be oper¬
ating with uranium as fuel. Most

large-

veloped.

Neither do I fear that the price
of uranium to the miner will

drop

when

prior to the

It' is

1960 in order to furnish the

the year 1962 arrives.

more likely to go up. The cost of
of uranium for
of hydro power which
tho finished product will drop be¬
may be' the uranium
fueled power plants cause the art of
available elsewhere at competimilling and re¬
that will be in course of construe-'
tive costs.
fining will develop rapidly. But
Bearing in mind that tion
by that time. For the new the market for
Ontario has no indigenous
the product will
sup¬
atom
powered
plants
that
are
also
increase
plies
of
conventional
thermal
rapidly and pay¬

fuels

or

and

.from

that

power

I

have

resources

country

meet

particular

other

must

be

that

dis¬

atomic

southern

On¬

needs.
the

inventory

built thereafter, as well as to re¬
plenish the uranium fuel that* is

ment

only

used

up in the old plants during
operations, the scale of production

of

ily.

I expect

be

production, for
alone, will have

ore-

these-purposes

the

miner for

comparatively

his

ore

small

is

part

of the cost of the final
product of

usuable uranium. There may
need, because of increasing

pure

will have to increase stead¬

ore

to
a

a

demand,
ore

not

to

get

now

uranium

out ;of

of mineable

grades.
increase in

a year

This will require an
over 3 million
price or other like special induce¬
within three to five ments. 1
Nevertheless I believe the
this audi-.
years thereafter. The scale of in¬
conditions crease thereafter will
government's assured price should,
have to be

example
to

similar

other

initial

to be close to 1 million tons

since

interest

Where
in

un¬

great

very

used

ence.

exist

in

Ontario

<

blocks

from

believe

can

southern

large

power

for

we

it

of

is

by 1965 and well

of_ tons

a

year

.

parts

of

Canada,.

beeause

enormous

most

at an

power

atomic power will be available to

early date, be extended be¬

plants built after the year 1975: yond 1962 to avoid
possibility of
supply
the deficiency of
com-, will be uranium fueled.
By 1975 a fear of the future on
the prospetitive power from other sources. I believe more than 17
million

The plans for the third
stage of
the

program

described
to the

which

reflect

our

I

have

tons of

just, mined

thinking

as

respective roles of the gov¬
and
industry in the

ernment

atomic energy program. The
gov¬
ernment
got into this business

during the

fuel

ore

for

the

single purpose of
public
utility
power
production and under

for

plants

will have to have been

in

construction.
It

would

,

pector's part and consequent fall¬

ing

self,

gave

war years.

the

This, in it¬

government

the

be bad for

military objective
was

was

still para¬

to be expected that

This is

fear

that

prospecting

and

new

our

over-all

mill

a

capacity
tons per

economy.

Thorium has not yet reached its

ore

to

have

place in the scheme of

milled in time for

think
can

position. Likewise, in- the cumulative requirement prior
just
the period of transition when the
to the year 1975.

mount, it

of

•

take

of approximately 3,000
day starting right now

that much

off

discoveries. Such falling off would

dominant

1960,,5% for the period 1960-1965,
and 4 V2 % for the period 1965-1975.
ouch an increase will require a

the

and

for

actor

exhausted

conventional

the creation of

in Canada

areas

have

resources

of

cost

scale hydro resources in southern-

demand for the
whole will be at the

power

as a

power

there will be

4,600,000

for the Period 1955-

country

On

years.

9,500,000
kilowatts.
On the completion of
the St. Lawrence development in

pro¬

clear

doubling

estimated

southern

would

-

rf13* 1 accept the sole responsibil¬

growth

proposi¬

a

12 V2

every

basis,

demand

-

I

of

during the next 20

this

of

in demand

may

'

gram.

rate

to

which will hardly be enter-,
tained by this audience. This rate

by

correct

per

unless we are prepared to
limit on the future develop¬

ment

our prog¬

the

has

years

5.7%

reasonable

tion

which those in the power business

us

30

seems

tario's future

and

apply

not

are

in southern On¬

It

mittee

kept abreast of

fuels

approximately

tances,

may be

made

growth in the de-"

for

transmitted

medium

be

so

corporations
and
provincial power
commis¬
sions, was appointed. This com¬
the

be

un¬

extremely
high
costs, or where con¬

annum.

power

as

only

can

the

serves

in

power

power

with

tario

Early in

ity for the forecast which. I shall

result

or

Advisory
Committee,
consisting of representatives of

assist

a

It

The

an

various

It is

come

tapped hydro
parts of the

1954

It will

different line of approach,

the probability that atomic power
will meet the demand for addi¬

the

mand

which will

probable cost.

to

wilt connection

program

the continued expenditure of large
amounts
of
government
money

time has

atomic

future

happens that southern
Ontario is such a region.'

to meet the demand,

and their

also be costly.

re¬

of

the

available or, if available, at a high

factor

Canada, the

The projected

de¬

role

cost.

are

ities

research

field.

new

industry and the util¬

arid

ventional

ning the power reactor program
the future power demand in

ress

for

economic

second

which

this

the role of

this has been done at considerable
cost.

resources, in

hydro-power

transmission

is

determine

outline specification

which

—

some

in

tion

development effort.
carry out a research andj While the program at Chalk Rxver
development program of a qual¬ for the present will be concen¬
ity quite comparable with that in trated on the small reactor project
the
United
States
and
in
the and the
preliminary design study
United Kingdom, is an acnieve- for a
large reactor, we will co¬
ment
of
which
we
can
all
be operate fully with
any company
proud. But let us recognize that which is interested in
pursuing a

ponents

available

which must be considered in plan¬

The objective of this study was to
an

reactors

In

to

abundance, and at a low cost
Therefore, in assessing the prob¬

available

ideally suited for this purpose—
and engineering development. It
is our hope
that a large part of
the engineering development will
be undertaken by industry.

costs

capital charges.
How are we going about solving
these problems?

NRU

large

are

mand, we must look at those
gions where hydro-power is

the testing of fuel
systems and materials in the NRX

tion

available

research and

a

development center which will
permit Canada to hold her posi¬

to

of

meeting

on

the low annual fuel bill. However,

be

their

and

sources,

yet untapped.

as

able

cores,

will be to maintain

enter upon the

as we

in

con¬

effort

third stage of the program, some
modification of policy is desirable;
That we have been able in Can¬

In other re¬
gions thermal fuels are available

research and develop¬
ment. Its main objective will be a
preliminary design study for a
large power reactor capable of
producing 100,000 kilowatts elec¬

a

power

which will

economic

are

of

the

*

of

of

gram

the

regions there

join

River

con¬

appraisal

an

meet the future demand.

tinue and expand the present pro¬

prime necessity.
Amongest other things, the ad¬
vantage of an atomic power sta¬
tion, as compared with a conven¬
tional thermal power station, is
■>

of

cost,

with us in the
We envisage
an
arrangement whereby the
utility would provide the power
plant and site, and would under¬
take to purchase steam from the
reactor at some agreed price. The
reactor and the power plant would
be operated by the utility and the
power generated would be fed to
an existing power system.
Chalk

attempt to make

any

small reactor project.

At

The wide variation of

ditions from region to region also
must
be
taken into account in

competitive costs but it will pro¬
duce the kind of design, operating
and
cost experience
which will
permit a scale-up to a large and
economic power reactor. The de-.
tailed design of the reactor will
begin in the second quarter of
1955, with a view to the comple¬
tion of construction early in 1958.

adequate

Consequently,

hour to

alloy. It is not expected that this
reactor
will
produce power at

We would

with

the

some justification be¬
regional costs vary yond enhancing Canada's reputa¬
in
high of 3.97c per kilowatt tion
international - scientific
a low of 0.5c per kilowatt- circles.
That justification I see in

a

hour.

de¬

However,

of

v

cost,

erage
from

zirconium

in

clad

Similarly,

burden

the fig¬
for the present national av-. should have

ures

be in the form of metal

fuel will

tfte

over

varies considerably

region to region.
In the
five-year period, 1955-1961,
the estimated average annual in-,
crease is
as high
as 8% in some
regions and as low as 4% in

uranium

The

reactor.

increase

of

years

others.

full

ada

from

in
the main, natural
uranium, but some separated plutonium may also be used as a fuel
in order to reduce the physical
the

per

first

be,

of

0.69c

now

figures

percentage

signed to produce steam sufficient
to generate 20,000 kilowatts elec¬
tric. It will use heavy water as a
moderator and possibly also as a
primary coolant. The heavy water
will be pressurized and will raise
steam from ordinary water in a
heat exchanger. The nuclear fuel
will

the

that

need

next 20

can provide the full range
engineering resources needed
for the job,
it is expected that
other companies.with engineering
experience in special fields will
be employed by the prime con¬
tractor. In this way the participa¬
tion of industry will be on the
broadest possible scale.
While final specifications have
not been determined, it is prob¬

that

show

is

consumers

these

the

pany

able

also

hardly point out that
require careful in¬
terpretation. First, the estimated

some

of

matter of seconds.

a

mentation and control mechanisms
are

make
cost

of

reactor can get out

a

in

control

to

reason

the

to

They

kilowatt hour.

project. The nuclear data will be
supplied by Chalk River. Since it
is unlikely that any single com¬

size

of these.

few

to

expected

be

also

in¬

present

average national cost of power to

I

the

of

achievement

the

stalled capacity of 15 million kilo¬

Canada^s Program of
Atomic Energy
significant

capacity of approx¬
million kilowatts by

.Thursday, February 17, 1955

one
we

reason

will

why I do not

get

too

much

it

be
as

will.

made

by

we

thorium

fissionable

uranium 238

fissionable, I
roll

things.: I

Because

think

may

can

as

need

in

the
to

part,

be made
years

supple-

>
Volume 181

Number 5404 ...The Commercial and Financial Chronicle

(847)

ment

uranium

our

supplies with

thorium.

.

And

I

Uses

have been

present

of

to the

up

ontiy about

be produced by uranium

cheaper than it

with

can

fuels, uranium will

used.

I

not

am

heat

for

even

•

conven-;

tional

be

so

referring to *

now

tory
*

and in the diagnosis and

processes

ura-

nium as fuel for generation
of
electricity. Uranium produces heat
and so long as heat for any purpose can

medicine

of

products of the split-

are increasing in use by
the day, in the study of biological

Uranium

speaking

moment

field

the

ting atom

.

Non-Fuel

in

radioactive

<*"

_

treatment
of disease in
many
forms. I give as^xamples radioactive iodine fti connection with
diseases of the thyroid and in
certain heart ailments, radioactive
phosphorus for treatment of certain blood diseases, and radioactive rays in the treatment of can-

the

who started the

in high office
widespread use of

the fuel fields will supplement oil
as
the
years
roll by and will

nuclear

for peaceful

thereafter

as

rather than

poses

the

man

energy

forces

allied

Hitler's
shores

armies
of

which

back

Europe.

pur¬

the leader of

as

drove

from

He,

the

home

Effect of

Uranium

Fuel

on

Will these commercial applica¬

t

-

-

Educatipn

and

lie utility plant which is located an
quite a distance away from the; we

!

apartment.
This

all

the

on

has

commercial

uranium

^cobalt bomb successfully at work.
bearing And within tl^^fast month we
^

nuclear

;

But uranium for

only

which

.4

North

has

perfected for hospital

its commercial

part of

a

buyihg^ a

reactor

considering
small sized

American Aviation Company

its heat value

future.

ancjj^&re

of

means

or

two.

is

looked ' at

for

prospects

the next decade

over

already haveotfhe. radioactive.,

.:

decided

a

Research located - in AlbuNew Mexico. „We. have'
associated mbSicat clinic and '

querque,

: off

.

use. It gives
whole department store like

a

cpsts will be a boon to it. Not a
single-plant based on water power
conventional fuels will be dis¬

Of

carded.

They- will work usefully
throughout their physical lives. It
is the

will be met with uranium

fuel.

as

.".Does this spell the doom of the

commercial

The

lie

breakup
is

atom

of

selves

fragments
born

new

elements

and

radiowill
get

we

While
presently

products.

most of these radiations

represent

will

and

can

poisonous waste, they

a

be

applied to useful

purposes

Considerable

food

new

industry

processing

byproducts.

fresh meat

on

inaicatea

is

at

.

a .valuable by

y

.

.

ine

u

seem

to

unlimited.

almost

of

much

what

"breeding"

has

have

said

been

not

nomic

be

consequences

multi^lied

field the char-

altered

Gf careful
-

reactor

times

are

uranium

of

over.

well in

study whereby
switch

can

from

Al-

Westchester

com-

a

now

produc-

radioactive

products of fission are permitting
the fabrication of new important

When different kinds of

oil products are
same

between
is

flow

being sent through.

pipeline, the interface
such products in t.ieir

already being accurately

indicated

ed in the same plant,

can

be

corn-

mercially sold elsewhere
for military purposes,

or

used

oil companies

already using radioactive material in well logging and in oil.
are

the

own

plutonium which, when not needthe

National

County

I

domestic situation,

,

Samuel

N.~ Comly,

Uranium

as

fuel

Executive

Vice-President of Russell Burdsall
and Ward Bolt and Nut

in

Port

Chester,

director

at

Company

elected a
County
Trust

was

The

of

of White

Company

Plains, N. Y,,

board meeting on Feb. 9,

a

cording

ac¬

announcement

by

Wilson,
Chairman.
addition, boards of associate

Corporation
concern

an

rectors

will

elected for the

were

of

potentials,
heart

Katonah

and

ciate

and

director

be

added

last

ing

about

as

cheap in all parts of the world

as

because the transportation

costs of the fuei wm be

negligible,
England is already building
atomic power plants and must im-

asso¬

the

to

According to Mr.

Ossining board.

stockholders

new

one

was

the

stock

will

to

stockholders of record at the close
business

of

tificates will
after

that

Feb.

on

The

16.

mailed

be

A

date.

of
there

important in aircraft manuses

electricity

twice

as

much

product
When the problem
pound of

in

our

the by-product
isotopes in their ap-

country,

radioactive

will improve
as aluminum.
living conditions immensely. And
of shielding against the radioac-- those same isotopes will be at use
tive emanations at not too great helping the sick in hospitals all
a

has

cost

have

per

been

atomic

powered

foods

over

boats

and

with increasing raw material supplies in the form of ore
and with the advanced techniques

self

like

lead

against the radioactive rays and
uses
only about one-eighth the
volume

to

will

Interestmetal it-

airplanes.
enough, uranium
provides shielding
range

plication

we

solved,

ingly

long

going

a

it

as

full

so

in

is

Colorado

mine,

it

is

the

mine

of space used by

lead.

It

will therefore be used for shield-

ing when the cost is less or when
space
occupied by shielding is
economically important.




Investment

Longden

of that

that

1

"Hidden

Splendor"?

Officer.

John

J.

Carroll

Eleven

elected

was

an

Assistant Treasurers

new

They are Stuart B.
James
J.
Gallagher,

Andrews,

John
D.
Hildebrandt, Daniel B.
Kelly,
Edward
H.
Kohlmeyer,
George L. Lambert, Victor A.
Leszczynski, I. Earl Lind, Jr.,
Danield
A.
Morris, Jr., Joseph

Smith and Edward J. Wilhelm.
annual

At

meeting of stockhold¬

earlier, Isaac W. Roberts,
G.
Berwind, David H.
Harshaw, Morris Wolf and Albert
Charles

J.

Nesbitt

re-elected

were

direc¬

tors of the company.
*

The

*

Second

Uniontown

*

National

at

Bank

Uniontown,

has changed its name

of

Pa.,

of Jan. 21

as

to

the
Gallatin
National
Bank,
Uniontown, according to the Jan.
of the

Comptroller of

Currency.
*

of

record
to

promptly

regular

quar¬

terly dividend of 12 xk cents per
on the capital stock of The

County Trust Company

also
declared, and will be paid April
15, to stockholders of record at
Joseph E. Hughes,
that

month

were

*

its'

to

*

Commercial National Bank

of Peoria, 111.,

has added $500,000

capital

dividend,

bank. The

March 1G.

the' best

the

for

history

member of

new

any

of

the

County

Trust's board, Mr. Comly, entered
the employ
of Russell Burdsall
Ward

and

after his

soon

the world,

we,

regarding reactors, processes and
use for isotopes, have a great op¬

portunity not only in our own
trade position with the world but
aiSo to help the world to a higher
standard of living. President
Eisenhower

saw

this and acted. I

believe he will be marked in his¬

*

First

The

#

from

>|:

A

a

to

capital

will

funds

then

as

through a stock
result of which the
is now $2,500,000,

a

capital

with

compared

of

in

Bank

i<«

to the

the

$5,000,000

capital funds of the Marine

Trust
York

approximately

Company
was

taken

mailing

bank's

of

Western

of

Feb.

on

a

notice

stockholders

of

10

to

New
with

the

sepcial
meeting to be held in Buffalo on
Feb. 21, to vote upon the proposal
recommended
by the Board
of
Directors. Under the proposal the
a

stockholders would be entitled
subscribe to

85,000

capital stock
new
on

on

new

to

shares of

the basis of

one

share for each 9.1 shares held

Feb. 21.

Marine Midland Cor¬

poration, the owner of over 98.5%
of

/the

agreed

outstanding
to

purchase

en¬

$2,000,000

previ¬

and

the

of

of

excess

the

bank
$46,-

shares,
any

ously.
Hi

has

unsub¬

scribed shares at the subscription

*

*

A

capital of $1,000,000 is now,
as of Dec. 8, reported
by The First
National Bank of Appleton, Wis.,
the

increase
from
the
previous
amount, viz. $750,000 having been
brought about by a stock dividend
of

$250,000.

'
Hs

H:

*

A stock dividend of

000,000.
$

He

An increase in the
Canal National

capital of the
of Portland,

Bank

$250,000 ef¬

fective Jan. 17, has brought about

%

an

enlargement in the capital of

the

Waukesha

National

Bank

of

Maine, is announced by the Comp¬

Waukesha, Wis., from $750,000 to

troller of the

$1,000,000.

$1,125,000
14,

Currency; previously
capital as of Jan.

raised to $1,187,500 by

was

*

The

J.,

(as

now

capital

Phillipsburg,

of Jan.

$300,000,

of

has

17)

the

as

result of

a

a

*

annual

the

stockholders of
Title

Bank

meeting

Tradesmens

and

Trust

Philadelphia,

of

change

of

Land

Company,

Feb.

on

the

14,

the

to Tradesmens
Bank and Trust Company was ap¬
of

name

directors

All

proved.

were

re¬

elected. Reference to the proposed

from

Jan.

27, page 530.

new

Hs

included in

National

Bank

of

at Bessemer, Ala.,

capital $200,000

a

list of 27 executive

approved on Feb. 14
the annual organization meet¬

at

ing of the board of directors of
The
Pennsylvania Company for
Banking and Trusts of Philadel¬
They are J. Melber Clarke,

phia.

Theodore

S.

Halteman

and

former As¬
sistant Vice-P residents, and
Vaughn

R.

Anthony

J.

Jackson,

McFadden,

Officer.

Trust

The

former

board

also

announced the retirement of Rich¬

ard

E.

Hanson, Vice-President in

the Commercial

Department, who

has been associated with the

com¬

Re-elected were
William Fulton Kurtz, Chairman
and Chief Executive Officer; Wil¬
since 1926.

pany

liam

L.

Day, President and Chief

Administrative

liam

F.

Officer, and Wil¬
Kelly, Executive Vice-

President.

ingham

Nov. 2.

on

to

were

Assistant

Vice-

Rudolph A. Bibo-

A. Roy Hall, J. Lawrence
Keyser and Hiram G. Rheiner,

rosch,

*

*

The

capital of the Colorado Na¬
tional Bank of Denver, Colo., be¬
$3,000,000
of

on

Jan.

Previously

500,000.

18,

as

a

dividend of $1,-

stock

a

the

bank's

capital had stood at $1,500,000.
*

The

*

$

Bank

Royal

Canada

of

(head office Montreal) announced
on Feb. 9, that A. F. Mayne has
been appointed Associate General
Manager, a new position, and that
R. W. Shannon has been appointed
Assistant
General Manager.
As
Associate General Manager Mr.

heretofore an Assistant
will be respon¬
the management of the
bank's operations in the foreign
field. Mr. Shannon, who has been
a
General
Inspector, will have
Mayne,*

General Manager,

sible

for

over
non-domestic
The bank stated that

jurisdiction
business.

creation

the

of

the

new

post

of

Associate General Manager serves
to

emphasize the increasing

portance of the Royal

Promoted

Presidents

merged with

was

the First National Bank of Birm¬

were

promotions

$9,000,000

of

by a
$1,630,000. In¬
cident to the increase in the capi¬
tal, it was noted in our issue of
Dec. 2, page 2261, that the First

came

H«

Vice-Presidents

of

12,

$7,370,000

*

change in the name of the com¬
pany
appeared in our issue of

Bank

of Jan.

as

capital

a

dividend

stock

At

it

new

*

National

Birmingham, Ala.,
increased

%

Florida,

$450,000 of

*

First

The

reported
s't

Hs

Miami,

capital, increasing

stock.

a

of $100,000.

of

its

sult of the sale of

amount

stock dividend

*

from $450,000 to $900,000 as a re¬

having been increased from $200,000

*

7 the Industrial Na¬

Bank

doubled

Phillipsburg National Bank

& Trust Company of

N.

tional

*

*

As of Dec.

a

dividend of $62,500.

stock

Hi

the

result

step preliminary to the addi¬

tion

in

be

Ht

stock dividend

>;:

856,200

771,200

book

Four

a capital
$750,000, increased

$300,000 by
of $450,000.

be

meeting.

completed it is the inten¬
of management to add $1,-

gradua¬

Y., reports

of Jan. 19 of

as

the

700,000 to capital, $2,600,003 to
surplus and the balance of $715,000
to
undivided
profits.
Out¬
standing shares will be increased

*

National

Yor.kers, N.

will

7

at

was

President, re¬
earnings
last

the

in

January

on

Feb.

vote

v

held

ers

The

share. Stockhold¬

E.

elected.

were

the

per

Thomas

Secretary.

24 Bulletin

price of $59

Jackson

advanced from As¬

was

Assistant

atoms

wonder

any

that

named

of

the rock

in

away

cer¬

share

economies.

cost

—

the

hearts

by

paid

be

from

so

as

Atlas

Esther

sistant Trust Investment Officer to
Trust
Investment
Officer
and

the

mine

located

of

the

buried

annual meet¬

the

at

month

5%

approved

uranium fueled by
heat
from
nuclear
energy,
electricity
will be an in-. Argentina, with short domestic
creasing
demand
from
heavy supply of oil and coal, is definitely
power users in the electro-metal- in that category now. In the many
lurgical and electro-chemical in- countries where food refrigeration
dustries. The new metal titanium has not been developed as it has
ufacture

meet

And, having some pri¬
knowledge of what is going

in

on

di¬

com¬

Ardsley

Tarrytown,

p0rf here uranium fuel for such
There, plants. Japan is now at the point
are presently more than 1,000 in^th respect to the cost of condustrial firms using isotopes for ventional fuels where her added
measuring devices.
With a de- power facilities should be fueled

creasing

with

that

that

acquired

uranium

a

In

to

ported

isotopes

radioactive

resulting

with,

States

wonder

any

tion from Princeton in 1919.

by

blessed

see

the

said four corners?
it

Is

tion

$

the close of business

Also I have spoken only about
our

$

$

already

fuel supply through production of

research.

at

up

the

as

a

Treasurer; Victor *

and

liams, from Trust Officer, and
Henry McK. Baggs, from Trust

bank's

statement

peak periods, can renew its

The

corners"

News About Banks and Bankeis

Wilson's

polythylene is right
mercial product.

alloys.

dry battery.
wonder that I look

*

a

that

and

an

Bean

Krewson, from Assistant Secre¬
tary; Roger L. Hubbert, Harry D.
Livingston and G. Ellwood Wil¬

an

or

good yester¬
wonderful tomorrow

abundance

mary

dividend

needed for sterilization. Irradiated

metal

automobile

"four

and

plants. Such fuel oil is largely the
by-product of refining. Oil is get¬
ting more costly to find.and that

large

improved

and

pas¬

Plateau?

course
a

by radio-; tion of heat and power to the pro¬
active treatment. Polythylene, for auction
of
plutonium,
or
vice
example, is the plastic used to versa, at will. Such a reactor can
make
squeezable
bottles which carry the electric load on the sysmelt
or
creep
at
temperatures tern when needed and, during off

Uraqium

day

produced is used in central power

Andrew

I

vSment ^'breedi^^th^eco-

sim-

a

ready projects

greatly

the

upon

of

.

horizons

uranium

above,

can

in

acteristics of plastic can be

and

freight and

Assistant

W.

When

can

plastics

and

crossroads between

will be about $129,000,000.

In

ilar way.
the

air

atomic

any

titled

me

be in-

can

trichinosis removed

In

it

ers

p

of

life

The

the shelf

t

Is

wood National Bank in Tuckahoe

jllpt

isrefndLbted50that p^rlfcan°have
porK
its

1

the

munities
is

atomic

the

transport,

Bank in Peekskill and The Crest-

likely to develop around uranium
fission

only

power

also

in

powered

economical

costly waste to be dis-

as

^TmaVTe^buCa"valuab^bv"
®

being
of the sterilization and ^
preservation of food. A
is

progress

in the way

made

but

planes

atomic powered

posed of as a parjt of the cost of
the heat recovered. This waste is
fast becoming a valuable byproduct, and if I don't miss my
guess, the time will arrive when
these present byproducts of the
fissioning of the atom will be the

sidered

other

of

hignly

them

radiation

atom

are

atoms

are

With

active.

235'blast possibilities in .bombs and
other weapons.- Presently we are
looking at it principally for its
beat and power possibilities, with
them- the radioactive emanations con-

land

on

not

see

atomic

senger ships at sea, even though
I may not live to
see, as an eco¬
nomical means
of

a* very

-

that, in addifragments, neurays are emitted,

trons and gamma

fission

.

intoler¬

uranium

a

violent

so

tion to the fission

The

potentials of
or perhaps

not alone

be

industry and for
generally.

station

plants

burden

oil

I expect to live to

oil industry? decidedly not. Only

small part of the crude oil

the

on

otherwise

the

central

increasing demand that

new

assortment of Radiations and
products that can ^be screened out which is being found is becoming
in the long run even principally"fr°m each-other^ha used individmore
valuable for
its
chemical
in its heat and consequent power
ually^for parti6$la"r needs,.^Prar products. Uranium in certain of
proaucing capacities. The atomic. nium may have/fcancer well on
radiation products are finding use the run. *
in manifold growing ways in inTo date all bfrus have looked Continued from page 10
dustry, agriculture and medicine. .uranium
principally for its
The

uranium

for

economy

atomic

Electric Power Industry

units or perhaps'., cer. -There are nearly 1,0Q0 inthp electric
building units, but - stitutional
users
of
radioactive* .power industry? No. That indus¬
try is always trying to reduce its
mind, among other * isotopes for medical purposes. I
costs so-as to*give cheap, efficient
things,; central heating stations. * am Chairman of the Lovelace
public
service.
Low
For
generating
example, my apartment in; Foundation for Medical:

New York City right now receives
its steam heat from a central pub-

able

powered

tions of uranium hurt

have ; in

carry

would

our

soldier,

a

led the way in turning the sword
into a ploughshare.

for office

1

that

from

47

im¬

Bank's or¬

ganization outside Canada. Of the
bank's
nvpr

more

700

arp

than
in

800

branches,

the foreien field.

-

48

(848)

The Commercial and Financial

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

AMERICAN

IRON

Indicated steel

AND

AMERICAN
Crude

and

-Feb. 20
.Feb. 20

Week

(bbls.

*86.8

(bbls.)

*2,095,000

2,008,000

6,574,400

6,271,250

117,418,000

7,402,000

7,389,000

(bbls.)
fuel

24,546.000

25,392,000

2,707,000

2,724,000

2,844,000

2,573,000

-Feb.

12,539,000

11,920,000

12,444,000

10,934.000

Feb.

8,452,000

8,369,000

8,876,000

8,549,000

Feb.

171,331,000

169,612,000

160,956,000

170,056,000

23,200,000

24,532.000

28.465,000

20.671,000

Feb,

Residual

82,001,000

89,032.000

105,132,000

78,014,000

—Fe)b.

(bbie.j

gasoline

(bbls.)

47,770,000

48,537,000

52,065,000

45,885,000

at

(bbls.)

fuel, oil

at

at.

of quotations,

MINES):

primary aluminum in the

are as

of

Total gas

November

AMERICAN
Steel

AND

and

for

30,052

5.307,012

5,670,200

6,125,943

5,035,333

5,367,900

51,145

:

therms)

STEEL

steel

105,636

35,740

44,688

59,100

297,910

(M

therms)

(M

IRON

ingots

sales

125,089

28,367

6,475,003
therms)

(M

gas

Mixed gas sales

Ago

229,986

243,200

of

(M therms

Manufactured

Year

Month

121,252

(short tons) end of Nov.

Natural gas sales

Previous

INSTITUTE:

castings

produced

(net

tons)—Month of January
Shipments
of
steel
(net
products

8,838,000

7,951,486

5,240,209

5,684,920

212,101,000

211,687,000

208,846,000

190,367,000

190,198,000

188,315,000

21,686,000

21,446,000

20,493,000

48,000

43,000

38,000

19,082,000

19,893,000

19,444,000

14,040,000

13,112,000

14,147,000

241,337,000

243,510,000

13,504,000

tons)

*8,287,073

5,448,649

258,727,000

Month of

3,355,000

1,073,000

—

December

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

freight loaded

Feb.

640,735

641,979

602,203

freight received from connections (no. of cars)—Feb.

625,133

609,286

565,545

AMERICAN

624,385

Revenue

611,993

CIVIL

ENGINEERING

(number

of

cars).

CONSTRUCTION

—

of

U.

Domestic
Feb.10

152,424,000

Federal

(U.

coal

S. BUREAU

Natural

132,020,000

$196,885,000

(barrels)——

(barrels)

145,509,000

97.148.000

115,638,000

64,865,000

Crude oil Imports

66,705,000

87,817,000

48,227,000

26,708,000

30,443,000

27,821,000

16,638,000

Refined products imports (barrels i
Indicated consumption
domestic and

STORE

SALES

=

export

(barrels)
8,700.000

8,835,000

8,510.000

609,000

608,000

489,000

651,000

85

*87

106

86

(barrels)

-----

7,835,000

Feb.

AMERICAN

109

ZINC

INSTITUTE

INC.—Month

of

grades

of

January:

INDEX—FEDERAL RESERVE

AVERAGE

(barrels)

Increase all stock

.—Feb.

Slab

zinc smelter output
pounds)
Shipments (tons of 2,000

*

SYSTEM—1947-49

gasoline output
output (barrels)

Benzol

OF MINES)*

and

lignite (tons)
Pennsylvania anthracite (tons)
DEPARTMENT

182,713,000

249,096,000

(barrels of 42 gal-

output

119,801,000

Feb. 10

Bituminous

$364,734,000

oil

Feb. 10

municipal—

COAL OUTPUT

$279,861,000

crude

Feb.10

Public construction
State and

$298,933,000

Feb. 10

construction

INSTITUTE—Month

domestic production
loans each)

ENGINEERING

construction

S.

Private

PETROLEUM

November:

Total

NEWS-RECORD:
Total

Feb.

all

(tons

2,000

BDISON ELECTRIC

Electric

output

FAILURES

INSTITUTE:

(In

..Feb. 12

kwh.)„

000

(COMMERCIAL

DUN

INDUSTRIAL)

AND

UO,047,000

9,922,000

9,928,000

8,684,000

.Feb.10

238

264

200

277

Pig Iron

.Feb.

8

Feb.

8

$56.59

$56.59

$56.59

$35.83

$35.50

$34.33

METAL PRICES

Electrolytic

(E.

A

M. J.

4.797c

4.797c

4.634c

Feb.

32.700c

32.700c

29.700c

35.300c

34.800c

31.525c

Feb.

91,750c

90.250c

86.250c

Feb.

15.000c

15.000c

15.000c

Feb.

14.800c

14.800c

14.800c

Feo.

11.500c

11.500c

11.500c

of

12.800c
9.500c

Zinc

(East St. Louis)

at_

at

85.000c

Feb. 15

97.13

97.55

97.81

109.60

109.97

110.34

Feb. 15

113.31

113.70

114.66

Bituminous

Aa

Feb.15

111.07

111.44

112.00

Feb.15

109.97

110.15

Feb. 15

104.66

104.83

105.00

107.80

108.16

108.52

106.74

Feb.15

110.34

110.70

111.07

109.06

Feb. 15

110.88

111.07

111.62

111.07

Group

Utilities

Group.Group

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds

Feb.15

corporate

110.34

COTTON

108.52

2.71

Feb.15

2.63

2.65

stock

SEED

Received
~

2.GO

Crude

3.17

3.15

3.23

Stocks

2.99

2.97

2.92

2.93

Produced

3.11

3.09

3.06

3.11

Shipped

3.17

3.16

3.15

3.25

3.46

3.45

3.61

Stocks

3.27

3.25

3.35

Produced

3.15

3.13

3.11

3.22

Consumption

3.12

3.11

3.03

3.11

407.8

412.3

414.4

422.0

Production

5

259.402

-Feb.

of period

at end

350,995

—Feb.

(tons)

Cake

AVERAGE

—

5

94

94

86

89

5

450,660

354,462

406,002

377,082

244.391

249,382

257,931

204,172

275,060

228,571

Feb. 11

106.54

106.75

106.61

Stocks

107.05

1,675,172

1,393,114

1,444,572

$90,292,919

$71,651,552

$68,068,161

$44,438,780

1,433,599

1,281,172

1,529,630

940,833

—Jan. 29

8,923

8,065

10,348

—Jan. 29

10,961
1,422,637

1,272,249

1,520,965

930.485

—Jan. 29

Customers' other

Dollar

sales

$69,607,364

$60,721,770

$65,728,335

$39,698,255

Round-lot sales by dealers—
Number of shares—Total sales-

—Jan. 29

Short sales
Other

—Jan. 29

Round-lot purchases by dealers—
Number of shares

356,670

353,220

535,360

3~56~670

353", 220

535,360

.

Jan.29

615,250

485,050

394,450

ACCOUNT

OF

MEMBERS

Other

TRANSACTIONS

FOR

ACCOUNT

OF

14,173,920

17,858,980

14,514,540

14,669,560

18,499,760

15,064,980

purchases

—

Short sales

Other

Total sales

_

purchases

on

2,029,440

1.285,780

2,383,440

1,536,220

Other

463,410

634,980

505,160

29,900

38,300

23,500

436,020

634,250

429,010

672,550

452,510

Jan. 22

557,455

692,995

622,661

purchases

61,370

74,020

99,200

Tntal

702,799

1,054,116

630,982

1,128,136

730,182

LABOR

All

—

(1947-49

Jan. 22

NEW
=

—

U.

S.

DEPT.

2,740,691

1,616,582

466.320

373,140

234,240

3,717,806

2,345,772

1,595,245

3,047,819

4,184,126

2,718,912

1,829.485

100):

1955,

as

83

SALES

(FEDERAL

RE¬

SYSTEM—1947-49 Average=100 )—
December:

for

seasonal

seasonal

of

variations

adjustment
INSTITUTE:

sales

to

ultimate

November

consumers—

(000's omitted)

1

ultimate

»,392,450

110.3

*110,4

110.1

110.5

Feb.

8

93.4

*93.8

92.7

8

103.2

103.2

103.7

104.7

8

84.9

85.0

86.5

91.1

Feb.

8

♦115.4

115.1

([Includes 720.000 barrels of foreign crude
against

Jan.

1,

1954

basis

of

124.330,410

tNnmber of orders not reported since introduction




of

$571,296,000

51,032,028

49,795,031

196,767

*195,550

204,227

223,533

*228,704

266,926

55,800

71,700

33.500

7,700

14,200

3,900

6,800

3,100

143,200

170,500

134,400

170,700

185,200

141,900

of

ultimate customers at Nov. 30_
STRUCTURAL

INSTITUTE

closed

OF

STEEL

STEEL

(AMERI¬

CONSTRUC¬

(tonnage)—estimated

(tonnage)—estimated

■

)

,

runs

tons.

115.5

SBased

on

tAll-time

new

new

annual

capacity of 125,828,310
high record.

Monthly Investment Plan.

114.4

ASSOCIA¬

of December:

furnace

shipments

(units)—

conversion burner shipments

operated boiler shipments

WEIGHTED

COMMON

Railroads
Utilities

(units)

(units)

Banks

YIELD

STOCKS—Month

of

OF

4.10

(25)

Insurance

5.28

VEHICLE
IN

U.

FACTORY

SALES

vehicles

of

of

Number

of

motor

OXIDE

3.20

4.20

5.33

766,012

BANK

IN

LTD.—Month

(BUREAU

OF

389,62*

89,232

94,655

422

GREAT

484,707

498,248

95,812

coaches

ISSUES

587.785

669,778

passenger cars
motor trucks

MIDLAND

2.52

December:

:

of

CAPITAL

4.61

MANU¬

ASSN.—Month

number of

4.09

FROM

S.—AUTOMOBILE

6.98
5.11

4.22

(10)

4.89
4.50

2.58

(24)_

(200)

Number

ZINC

4.09

4.96
Tel. ,& Tel)

4.56

4.14

PLANTS

NEW

8,400

Jan.:

(15)

Average
MOTOR

AVERAGE

-

(125)

(not incl. Amer.

98.2

Feb.

other than farm and foods.

31,919,120

$618,364,000

1,114,619

customers—month

35,107,798

),306,000

from

Number
8

Feb.

•Revised figure.

107

Total

Feb.

foods.

AH commodities

114

*137

STORE

FACTURERS'

*

Meals

1.

3,420,825

336,550

2,711,269

OF

products-

Processed

of Jan.

2,951,415

495,095

Jan. 22

SERIES

commodities

Farm

117
200

100

.

Jan. 22

_

L

sale*

Commodity Group—

2,537

Industrials

457,065

764,169

Jan. 22
__

PRICES,

—

3,08*

MOODY'S

38,030

Jan. 22

__

sales

WHOLESALE

pounds)

Domestic gas range shipments (units.)
Gas water heater shipments (units)—

349,882

—Jan. 22

Short sales
Other

(1,000

1,877

2,010

7,965

etc.

Gas

338,460

_

964

1,739
1,771

7,777

Gas-fired

321,960

465,920

...

1,230

1,627

31

TION—Month

16,500

Total round-lot transactions for account of members—
Total

1,618

bales)—

31

GAS APPLIANCE MANUFACTURERS

305,350

Jan. 22

sales

225,040

3,583

CAN

995,930

Total sales

190,37(5
221,34*

161,371

2,102

FABRICATED

816,220

1,817,730

Initiated off the floor—

.

252,057
214,379

6,362

Number of

179,710

purchases

Short sales

51,67*

129,794

961,350

250,440

—Jan. 22

transactions

Total

1,612,870

354,000

—Jan.22

Total sales
Other

2,092,850

245,280
1,572,450

—Jan.22

__

162,467

317,827

.___

Shipments
1,930,550

—Jan. 22

sales

161,31*

138,337

—

Gas

__

86,053
138.233

.

—Jan. 22

Short sales
Other

80,279

133,135

TION)—Month of December:

the floor—

__

09,700

1,239

Contracts

Jan. 22

—

__

Other transactions initiated
Total

bales)

EDISON ELECTRIC

350.460

—Jan. 22
__

)

1,775

Without

9,523,230

—Jan.22

_

394,241

Month of

MEM¬

-

sales

340,919

312,215

3.378

Adjusted

BERS, EXCEPT ODD-LOT DEALER8 AND SPECIALISTS:
Transactions of specialists in stocks in which registeredTotal

220,340

9,172,770

Jan. 22

251,547

138,909

—

(1,000-lb.

Dec.

Month

Jan. 22

sales

Total sales
ROUND-LOT

31

November

550,440

136,286,000

245,510

.

Dec.

Grabbots,

Revenue

640,780

1,109,455,000
200,423,000

156,937,000

195.564

DEPARTMENT

296,150

495,640

161,193,000

294,034

31

31

Kilowatt-hour

Jan. 22

712,619,000

157,682,000

Shipped

(SHARES):

sales

224,117,000

Produced

Total Round-lot sales—

Short

148,742,000

232,230,000

171,510,000

146,167,000

!

(tons)

Dec.

Stocks

296,150

354,870

144,267,000

215,781,000

667,621.000

*

;

SERVE

TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR

31

Shipped

—Jan. 29

sale 8

Dec.

(tons)

Fiber

Motes,

value

146,394,000

196,923,000

Produced

1.004.092

29

717,990

2,864,727

300,071

(running

Stocks
23>

—Jan. 29

sales

31

(tons)

Dec.

809,922

659,109

2,441,751

168,333,000

Dec.

Shipped

Jan!

Odd-lot purchases by dealers (customers' sales)Number of shares—Total sales

Dec.

(pounds)

(tons)

Stocks

Hull

1,141,803

2,320,716

.___

Produced

Jan

Dollar value

437,653

31

(tens)

Produced

SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases) t—

Number of shares

5,825,200

of

Meal—

(tons)

Linters

100

short

2,666,486

PROD¬

(tons)—.

(pounds)

Shipped

—

Customers'

279,700

*2,804,116

Hulls-

BTOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N.
Y. STOCK
EXCHANGE

32,727

608,688

(pounds)

and

Stocks

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

6,104,900

*5,197,510

Oil-

Shipped

5

-Feb.

(tons)

Percentage of activityUnfilled orders

Refined

Produced
--Feb.

SEED

tons)

(pounds)

3.47

ASSOCIATION:

(tons)

(net

(pounds)

Feb.15

INDEX.

month

COMMERCE—Month

Dec.

(pounds)

Feb. 15

Group
Group

PAPERBOARD

*5,230,237

Oil—

3.29

Utilities

Orders received

2,680,000

Dec.:

(tons)

Feb.15

_

OF

(tons)

Feb. 15

Group

of

COTTON

mills

at

Crushed

3.19

Baa

end

AND

Feb. 15

.

of

Seed—

Feb.15

A

NATIONAL

33,640,000

2,816,000

2,794,178

tons)

December:

Feb.15

.

COMMODITY

37,825,000

2,359,000

40,881

(net

MINES)—Month

at

UCTS—DEPT.
Cotton

Feb.15

MOODY'S

36,090,000

lignite (net tons)

anthracite

(net tons)

coke

Stocks

Aa

Industrials

$31,276

MINES)—Month

coke (net tons)_;
Beehive coke (net tons)

102.30

Feb. 15

Baa

Public

*$77,564

5,569,683

OF

Oven

111.07

A

Railroad

22,437

5,610,564

coal and

(BUREAU OF

Oven

114.46

Average
Aaa

11,930

21,996

$77,645
(BUREAU

Pennsylvania

108.88

Aaa

Industrials

$46,909

*11,727

January:

COKE

98.56

Feb.15

Average corporate.

Public

*$43,841

11,718
22,116

Production

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds

Railroad

26,378

COM-

—

COAL OUTPUT

13.000c

at

York)

(New

Louis)

45,862

$43,811

Wholesale

29.175c

at

tin

OF

Manufacturing

29.675c

—Feb.

at

Lead

(8t.

DEPT.

—

Total

Lead (New York)

Straits

INVENTORIES

Retail

copper—

refinery

60,692

57,421

QUOTATIONS):

Domestic refinery at

Export

4.797c

(tons)——V'

198,712

MERCE NEW SERIES- -Month of November
(millions of dollars):

$26.67

ton).

78,561

*95,523
*124,277
J

BUSINESS

$56.59

Feb.. 8

(per lb.).

(per gross

Scrap steel (per .gross ton)—

*85,164

93.202

117,181

:

period

IRON AGE COMPOSITE PRICES:
Finished steel

86,106

pounds)—J—^

Stocks at end of period (tons)
Unfilled orders at end of

&

BRADSTREET, INC

of that date:;.

S.

U.

AMERICAN GAS ASSOCIATION—For month
December:

23,787,000

24,208,000

at

oil

OF

(BUREAU

(in short tons)—Month

6,879,000

Feb.

unfinished

and

ALUMINUM

1,779,000

6,677,450

Feb.

(bbls.).

cases

or,

Latest

§2,129,000

Stocks at refineries, bulk terminals, in transit, in pipe linesFinished

hi

either for the

are

Month

74.6

—Feb.

(bbls.)

Distillate

83.2

6,721,250

ofFeb.

Kerosene output (bbls.) —
Distillate fuel oil output (bbls.).
Residual fuel oil output

that date,

Ago

§83.2

Feb.

Crude runs to stills—daily average

Kerosene

Ago

on

Year

Stocks of aluminum

output—dally average

condensate

output

Month

production and other figures for the

cover

Dates shown in first column

Production of

(net tons).

42 gallons each)

Gasoline

month ended

Previous

Week

(percent of capacity).

month available.

INSTITUTE:

PETROLEUM

oil

INSTITUTE:

STEEL

operations

Equivalent to—
Steel ingots and castings

or

or

,yadsruhTelcinorhC 17, 1955
February

305

424

1,840,000

£16,529,000

£3,345,000

BRITAINof

January

MINES)—Month

of December:

tons

as

Production

(short

tons)

Shipments

(short

tons)

Stocks

at

end

of month

12,782

♦11,800

13,790

11,615
(short

tons)

11,953

12.256

15,923

♦14,756

29,903

Volume 181

Number 5404

The Commercial and Financial Chronicle

...

* INDICATES

Securities

Now in

it Allison Steel Manufacturing Co.,
Phoenix, Ariz. (3/4)
Feb. 11 filed 100,000 shares of common stock

(par $5)

and

50,000 shares of 75-cent cumulative convertible
preferred stock (par $10). Price — To be supplied by
amendment.
Proceeds—To purchase certain assets of
Allison Steel Mfg. Co., machinery, tools and equipment,
and for working capital and other corporate purposes.

Underwriter—Lee Higginson

(849)

Corp., Chicago, 111.

Amcrete Corp., Briarcliff, N. Y.
6 (letter of notification) 7,500 shares

Dec.

of 6%

par¬

Registration

it American Potash & Chemical Corp.
Feb. 16 filed $7,000,000 of convertible subordinated de¬
bentures due 1970.
Price—To be supplied by amend¬
ment.
sion

Proceeds—To reduce
and

working

Brothers and

bank loans

capital.

and for

Underwriters

Anticline Uranium,

capital stock.

equipment

tributor of prefabricated concrete

manufacture

Arctic

sell

and

scientific

resses made

of steel reinforced dense

concrete, etc.

Un¬

derwriter—N one.

York, N. Y.

Oct.

Feb.

16

filed 250,000 shares of capital stock

be

offered

of

one

(par $2) to
subscription by stockholders at the rate

for

share

new

for

six

each

shares

held.

Price—To

be supplied by amendment.

Proceeds—To provide com¬
its wholly-owned subsidiaries, American Auto¬

pany and

mobile

Fire

Insurance

Co.

Associated

and

Corp., with additional capital funds.
Kidder, Peabody & Co., New York.

Indemnity

Underwriter—

assembly of homes. Office—10509

South Main St., Houston, Tex. Underwriters — Hunter
Securities Corp., New York, and Continental Securities

Corp., Houston, Tex.
American Duchess Uranium & Oil Co.
Dec. 9 (letter of
notification) 1,500,000 shares of com¬
mon stock
(par five cents). Price—20 cents per share.
Proceeds—For uranium and oil activities.

Office—Judge
Bldg., Salt Lake City, Utah. Underwriter—Northern Se¬
curities, Inc., Seattle, Wash.

Wall

products,
St., New

Service Publishing Co., Inc.
(letter of notification) 50,000 shares of class A
common stock (par $1).
Price—$5 per share. Proceeds—
For working capital and general corporate purposes. Of¬

—Theodore T.

Bldg., Washington, D. C.

Ludlum

&

new

Jan. 31

Co.

Associates, Ltd., Washington,

Exploitation Corp.
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.

American
13

Underwriter—To

be determined by
Probable bidders: Halsey, Stuart &
Inc.; Kidder, Peabody & Co. and Stone & Webster

11

filed

100,000 shares of

which 50,000

of

shares

are

(3/2)

stock

common

(par $1),

for the account of the

com¬

and 50,000 shares for selling stockholders. Price—
To be supplied by amendment. Proceeds—To
discharge,,
mortgage indebtedness; to restore funds used in recent

Co., Inc.

share for each five shares held

new

as

purchase
other

of

for additional

investments

C.

Langley &
Corp., both of New York.

in

Co.

subsidiaries.
The

and

adjoining

land;

for

purposes.

working

capital

and

Underwriter—Paine,

★ Best American Life Insurance Co., Mesa, Ariz.
Feb. 11 filed 800,000 shares of class A common stock
(par $1) to be offered to present and future holders of
its life insurance policies with stock
purchase rights;
75,000 shares of class B common stock (par $1) to be

Under¬

First

of

general corporate

Webber, Jackson & Curtis, Boston and New York,

Feb. 8; rights to expire Feb. 23 (Northeastern Water
Co., owner of 1,625,000 of the 2,704,472 outstanding
shares) will subscribe for 325,000 of the new shares.
Price—$9.50 per share. Proceeds—To repay bank loans
writers—W.

construction.

Feb.

540,894 shares of common stock (par $5)
being offered for subscription by comon stockholders at

and

filed

pany

Water Works

one

4

★ Barry Controls Inc., Watertown, Mass.

mining expenses.
Office—17 Academy
Underwriter—Richard & Co., same

filed

the rate of

(Regulation

corporated; The First Boston Corp. and Drexel & Co.
(jointly); Lehman Brothers; Salomon Bros. & Hutzler;
Merrill Lynch, Pierce, Fenner & Beane.
Bids—To be
received up to 11 a.m. (EST) on March 9.

Uranium

St., Newark, N. J.
city.

Jan.

Calif.

Ltd.

Securities Corp. (jointly); Union Securities Corp.;
White,
Weld & Co.; Equitable Securities Corp.; Blair & Co. In¬

Underwriter

stock

mon

Mines

competitive bidding.

D. C.

American

Uranium

City Electric Co.
(3/9)
$10,000,000 of first mortgage bonds due
March 1, 1985. Proceeds—To retire, bank loans and for

11

fice—400 Walker

Pr©r

Atlantic

McCoy & Willard, Boston,

—

28

Feb.

Proceeds—For

9

American Beauty Homes, Inc.,
Houston, Tex.
Jan. 20 (letter of notification)
300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For prefabrication and

Underwriter

Inc., San Francisco, Calif.

Price—At par (10 cents per share).

"D") 1,500,000 shares of commra
Price—20 cents per share. Proceeds
—For general corporate purposes. Office — 411 Childs
Bldg., Winnipeg, Manitoba, Canada.
Underwriter—De
Gaetano Securities Corp., New York.

American

Jan.

★ American Automobile Insurance Co.

Office—67

apparatus.

ISSUE

stock (no par value).

Mass.

wall panels and but-

and

REVISED

—Coombs & Co., of Los Angeles, Inc., Los Angeles,

Glore, Forgan & Co., both of New York.

Scientific, Inc.
Feb. 2 (letter of notification) 50,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
To pay current indebtedness and for working capital.
Business—To

ITEMS

ceeds—For exploration and development expenses. Of¬
fice—995 Market St., San Francisco, Calif. Underwriter

expan¬

American

ticipating preferred stock. Price — At par ($10 per
share). Proceeds—For working capital. Business—Dis¬

PREVIOUS

Oct. 28 (letter of notification) 2,970,000 shares of class A

Lehman

—

ADDITIONS

SINCE
•

49

Boston

offered

to present and future life insurance
salesmen,
district managers and state
managers; and 455,208 double

option

coupons with and attached to policies of whole
insurance, to be offered to the general public. Pro¬
ceeds—To build up capital and surplus of
company to
permit to qualify as a full legal reserve company and

life

NEW
February 21

ISSUE

(Monday)

Granco

British Western America Uranium Corp.
(S.

D.

Fuller & Co.

Plastics Molded
-'

■

and Vermilyea

Arts

CALENDAR

Brothers)

(John

Common

Corp._

Pacific Gas

&

Co.)

11:30

Inc.)

Continental

50,000

&

Rochester Gas

Co.

&

pfd.

and

Glatfelter

$17,000,000

Glatfelter

shs.

Beane

and

and

505,000

R.

11

Webber,

Georgia

Brothers)

Jackson

&

Natural

Fenner

Co

& Lunt)

Allison Steel

Higginson

March

7

Beane)

296,050

Ready-Made

Lynch,

(Kidder,

(Straus,

South
(Bids

,

10:30

by

Blyth

Inc.)

to

(Bids

$162,094

Barry

Controls,

(Paine,

511,205

shares

Crampton
(Lee

....

-

<fe

Curtis)

Co.)

100,000

Manufacturing

(Baker, Simonds

&




Co

705

First

National

15

be

$10,000,000

(Tuesday)
l_Debentures

be

Bonds

16

Cc?Ov

Co., Inc., Cleveland, Ohio.

Canyon

stock

mon

(par

Proceeds—For

one

com¬

cent).

mining

Price—Five cents per shaie-.
activities. Offices — 1003 Con¬

tinental Bank Bldg., Salt Lake

Ave., Grand Junction,
Reed Co., Reno, Nev.

Colo.

City, Utah, and 618 Rood
Underwriter

—

James

Jay Uranium Corp., Elko, Kev.
(letter of notification) 1,000,000 shares of

com¬

stock. Price—25 cents per

mon

share. Proceeds—For ex¬
ploration and development costs. Office—402 Henderson
Bank Bldg., Elko, Nev.
Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
British

Western America

Jan. 13 (letter of

Uranium Corp.
notification) 298,400 shares of

(2/21)
common

$10,000,000

For

(par 25 cents). Price—$1 per share. Proceeds—'
exploration and development expenses. Office—C.

$6,000,000

'

Continued

on

page

(Wednesday)
Common

April 15
(May

be

Union

(Friday)

Securities

Common
Corp-)

384,861

(Bids

shares

(Tuesday)

Alabama
&

Bonds
a.m.

EST)

$12,000,000

May 31 ( Tuesday)

.

Common

Power

Co

(Bids

Bonds
Brooks

11

11

Bonds
a.m.

EST)

$15,000,000

New York

Co.,

November
Common

Co.), 150,000 shares.^

„

Southern
-

v

*

Co.

9

to

Common
be

invited)

500,000 shares»

Boston

Philadelphia

(Wednesday)

—

(Bids

EL

stock

Preferred

invited)

Denver,

Uranium, Inc.
Nov. 29 (lettfer of notification) 6,000,000 shares of

★

about $250,000,000

invited)

Bldg.,

Bingham-Herbrand Corp., Fremont, Ohio
2 (letter of notification) 3,000 shares of common
stock (par $1). Price—At the market (estimated at
$16'
per share).
Proceeds—To selling stockholder.
Under¬

Oct. 15
Bonds

EST)

Bank

shares

$750,000

Corp. and P. W.
Inc.) $1, 750,000

$1,500,000

Georgia Power Co

Manufacturing Co
Higginson

Crampton

Morgan

about

Westpan Hydrocarbon Co

...Common

Chesapeake & Colorado Uranium Corp.
(Peter

—

Underwriter—I. J. Schenin Co., New York.

(Offering to stockholders—to be underwritten) 153,236 shares

Common
&

Corp., Denver, Colo.
(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¬
15

shares

(Wednesday)

Jackson

Ave., Provo, Utah.

$25,000,000

Inc

Webber,

Co.;

Co

May 10
March 2

&

Bishop Oil Co

Debentures
Brothers)

50,000

Staats

(Wednesday)

a.m.

to

March

Common

Reliance Electric & Engineering Co
Co.,

shs.

$2,250,000

& Electric Co

New England Telephone &
Telegraph Co..Common

&

9

11

(Bids

Kansas Gas

(Olfering to stockholders—no underwriting)

R.

Kansas Gas & Electric Co

Common

May Department Stores Co

(Blyth

McDowell)

600,000 shares

Lehman

125,000

Debentures

(Morgan Stanley & Co.)

(Offering to stockholders—no underwriting)

and

Co.)

General Motors Acceptance Corp

Continental Electric Equipment Co

(Goldman, Sachs & Co.

&

March

Common
$300,000

Corp.
CST)

Blosser

(Bids

Preferred

a.m.

Co.)

Preferred

William

California

Atlantic City Electric

(Tuesday)

West

&

Cc^,

Underwriter—Weber Investment Co., 242 N.
University

Blue

(White, Weld & Co.) 50,000 shares

&

Weeks;

&

First

March

Calumet & Hecla, Inc
Central

McDonald

Power Co

Trav-Ler Radio Corp._____

Common

1

and

Call-Smoot

Big Indian Uranium Corp., Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents
per share. Proceed#.
—For mining operations. Address—Box
77, Provo, Uttb.

Blue

Common

Co.

&

(Hornblower
and

(Tuesday)

Co.

Peabody

Common

Buildings, Inc._

March

200,000 shares

8

—

Feb.

Common

Southern Nevada

shares

Co

Corp

(Aetna Securities Corp.)

Salt Lake City, Utah.
Underwriter
Phillips Building, same city.

fice

Common
Shares

100,000

(Monday)

(Courts & Co.)

Haris-Seybold
Merrill

stockholders—underwritten
Co., Inc.) 361,922 shares

&

Preferred
$500,000

Atlantic Steel Co

February 28 (Monday)
to

Corp.)

Price—At par (three cents per share). Proceed*
mining expenses. Office—510 Newhouse Building,

writer—Wm. J. Mericka &

(Friday)

(Offering to stockholders—underwritten by Kidder,
(Peabody & Co.) 210,053 shares

(Offering

Corp.)

Manufacturing Co

Common

by

—For

Bikini Uranium

(Friday)

157,500 shares

South Carolina Electric & Gas

Stock

Common

Allison Steel Manufacturing Co
(Lee

Brothers;
$10,000,000

Co

$2,000,000

Corp.)

Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,0(X),Q00 shares of common

Oct.

Common

&

Preferred

Boston

March 4

Debentures

Gas

Co

(Lee Higginson

Lehman

stockholders—underwritten

Bank

Common
shares

70,000

(Thursday)

H.)

,

$10,000,000

Maryland Casualty Co

First

Bonds

$50,000,000

Co.)

expand into other states.

stock.

$60,000,000
_

&

3

March

Pierce,

Inc.)

Co
Invited)

First

(P.

$13,000,000

Bonds

Curtis;

February 25
to

Debentures

(Offering to stockholders—underwritten by
The First Boston Corp.)
125,000 shares

shs.

Corp

EST)

a.m.

(Shields & Co.)

(Olfering

$300,000

Dickson

Debentures

Lehman

Hemphill, Noyes & Co.; and Hamlin

South

S.

common

Sheraton Corp. of America
(Paine,

Co/,-Inc.)

Co.

&

be

Marache

(P. H.)
(The

(Thursday)

Electric

(Bids

to

March

Baking Co

(Wertheim

Read

Electric

(Granbery,

Bonds

Lynch, Pierre, Fenner &

Co.,

&

$1,500,000

EST)

a.m.

February 24

&

&

United States Ceramic Tile Co

Carolina Power & Light Co.__Preferred & Common
(Merrill

Boland

(Bids

(Wednesday)

Texas Electric Service Co
(Bids

Common

Common

Fuller

D.

R.

(Dillon,

Common

General Homes, Inc
(S.

'

Inc

Union Oil Co. of California

$298,400

(Milton D. Blaurier & Co., Inc.;
Hallowell, Sulzberger & Co.;
'
'
and Baruch Brothers & Co.,
Inc.) $300,000

February 23

Products,

.

Pittsburgh

San Francisco
Private IVires

to

all

offices

Chicago

Cleveland

50

50

(850)

The Commercial and Financial Chronicle... Thursday, February 17, 1955

Continued

jrom

exploration and development of properties.

49

page

—Stock
A.

Johnson

Bldg.,

Denver,

Underwriter—S. D.
both of New York

Colo.

Fuller & Co. and Vermilyea Brothers,

California Tuna Fleet, Inc., San Diego, Calif.
Sept. 29 filed $4,u00,000 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 stock.

Price—To be

supplied by amendment.

Proceeds—For purchase from National Marine Terminal,
Inc. of its undivided interest in 17 tuna
clippers, subject
to

to

through

underwriters

liabilities; for construction of four tuna clip¬
and the balance for working capital and general

corporate purposes.

Underwriter

Herrirk

Barrett

—

&

Co., Inc., New York. Offering—May be effected in March
and registration statement
may be amended.

Toronto

Stock

selected

on

Underwriter

dealers

or

Exchange
in

or

United

States.

Constellation

Uranium

Denver, Colo.
1,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds
For exploration and development
expenses.
Office—206 Mercantile Bldg., Denver, Colo. Underwriter
—Petroleum Finance Corp., Oklahoma City, Okla.
Oct.

11

Corp.,

Dec.

Uranium, Mines, Inc., N. Y.
(letter of notification) 500,000 shares

7

stock

of

com¬

Price—10 cents per share.
Office—100 West 42nd
St., New York. Underwriter—Justin Steppler, Inc., New

mon

(par

cent).

one

Proceeds—For mining expenses.

York.

Hecla, Inc. (3/1)
50,000 shares of $4.75 cumulative preferred
series A (no par). Price — To be supplied by

7 filed

stock,

amendment.

Proceeds—For expansion program.
writer—White, Weld & Co., New York.
Canadian
Dec.

20

Petrofina,

Under¬

Ltd.

filed

1,751,428 shares of non-cumulative par¬
preferred stock (par $10—Canadian) being
exchange for shares of capital stock of Calvan
Consolidated Oil & Gas Co., Ltd. at the rate of six pre¬

ticipating

offered in

ferred

shares

for

each

Calvan

17

shares.

The

offer

is

contingent to acceptance by not less than 51% of the
outstanding Calvan stock and will expire on Feb. 28,
unless

extended.

Underwriter—None.

Statement

effec¬

tive Jan. 21.

Baking Co. (2/24)
Feb. 3 filed $13,000,000 of 25-year subordinated deben¬
tures due March 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¬
deem at $105 per share 125,575 of the 253,575 outstand¬
ing shares of $5.50 cumulative preferred stock. Under¬
writers—Wertheim & Co. and Lehman Brothers, both of
New York.

mon stock.
Price—At par (one cent per share). Proceeds
—For exploration and development expenses.
Office—
317 Main St., Grand Junction, Colo. Underwriter—West¬

Securities Corp., Salt Lake City, Utah.

Carolina

Power & Light Co.
(2/24)
50,000 shares of cumulative serial preferred
stock (no par) and 505,000 shares of common stock
(no
par). Price—To be supplied by amendment. Proceeds
—From

sale

of

shares, together with other funds, for
additions and improvements to
property. Underwriters
—Merrill Lynch,
Pierce, Fenner & Beane, New York,
and

R.

S.

Dickson &

Co., Inc., Charlotte, N. C.

Equipment Co. (3/1)
(letter of notification) 8,645 shares of common

28

stock

(no par)

to be offered

Price

$18.75

—

capital.

Office

ible

debentures

convert¬
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,
Hooker &

due

Feb.

and to purchase
Underwriter—To be

company,

common

determined

shares

of

subsidi¬

by competitive
bidding. Probable bidders: Blyth & Co., Inc. and
Smith,
Barney & Co. (jointly) The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Leh¬
man

Brothers and Lazard

Freres

&

Co.

(jointly). Bids
received up to 10:30 a.m.
(CST) on March 1
at 20 No. Wacker
Drive, Chicago 6, 111.
—To

•

be

Chesapeake & Colorado Uranium Corp.

(3/2)

Dec. 7 filed 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.

Inc., Wilmington, Del.
(letter of notification) 2,272 shares of non-voting
class A common stock. Price—$22 per share.
Proceeds
—For general corporate purposes.
Office — 1901 West
4th

St., Wilmington, Del.,

Underwriter—None.

it Crampton Manufacturing Co. (3/2)
Feb. 8 filed $1,750,000 5Vz% first mortgage bonds due
1975

(with

warrants

detachable

attached).

10-year

Price—To

common

be

stock

purchase

supplied by

amend¬

ment.

Proceeds—To repay bank loans, for expansion
working capital. Underwriters-nr-Lee Higginson Corp.

and

Co., Inc., both of New York.

it Crampton Manufacturing Co.
Feb.

filed

8

be

expansion

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
$550 of new debentures for each $500 of debentures
held.

Offer

expires Feb. 21. Price—At par and accrued in¬
Proceeds — To retire junior subordinated
sinking
fund debentures which mature Dec.
1, 1958. Underwriters

terest.

—Straus, Blosser & McDowell
Co., Inc., both of Chicago, 111.

and

Fairman, Harris &

and

7

Detroit, Mich.

(Republic of)

filed

Works

$2,500,000 of Veterans,

Courts and Public*

Price—To be supplied by
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¬
4%

bonds

due

Proceeds

amendment.

1983.

—

To

ment.

it Dean & Co., San Antonio, Texas
Feb. 10 (letter of notification) $150,000 of 5% sinking
fund debentures, second series, due Feb. 1, 1965. Price
—At par (in denominations of $1,000 each).
Proceeds
—To

finance

biles,

business, including loans on automo¬
Office—800 Broadway, San Antonio, Texas.

etc.

new

Underwriter—The

First Trust Co.

of

Lincoln, Neb.

for

per

—For

share. Proceeds

—

Edison Co.

of New

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¬
writer—To be determined
by competitive bidding. Prob¬
able bidders;
Halsey, Stuart & Co. Inc.; Morgan, Stanlev
& Co.; The First Boston
Corp. Offering—Originally set
for May 11, but has been
postponed because of market
conditions.

No

new

date

set.

common

by

of record

Feb. 7, 1955 at the rate
each five shares held.

stock

common

of

one

(par $7),

stockholders

new

share for

Price—$2.20 per share. Proceeds
stock, plus $440,000 to be available
200,000 shares to Alator Corp. Ltd. and
.Yarn Securities Ltd., and
$175,000 treasury funds, to be
used to pay for
geological surveys and metallurgical re¬
search, for drilling expenses and other
general
—From

from

sale of this

sale

purposes.

of

corporate

Office—Toronto, Canada. Underwriter—None.

Consolidated

Sudbury

Toronto, Canada

Basin

Mines,

Ltd.,

Jan. 31 filed
3,000,000 shares of common stock (no
par).
Price—To be supplied
by amendment.
Proceeds—For




stock

Price—Five cents per share.
and development expenses.
Security Bank Bldg., Salt Lake City,

(par one cent).

Proceeds—For

Office—506

exploration

First

Underwriter—Utah Securities Co., same

Utah.

Financial

Credit

city.

York

New

Corp.,

shares of 7% cumulative sink¬
Price—At par ($2 per share).
working caiptal. Underwriter — E. J.

ing fund preferred stock.
Preceeds

—

Fountain

&

•

For

Co., Inc., New York.

First Bank

Stock Corp.

(2/28)

Feb. 4 filed 361,922 shares of capital stock (par $10) to
be offered for subscription by stockholders of record
Feb. 24, 1955 at the rate of one new share for each eight
shares held; rights to expire March 14. Price—To be sup¬

by

amendment.

Proceeds

—

investments

For

in

of

stocks

banking affiliates. Underwriter—Blyth & Co.,
Inc., New York, and San Francisco.
Four States Uranium Corp.,

Grand Junction, Colo.
notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—For
exploratory and development expenses.
Office — 618
Rood Avenue, Grand Junction, Colo.
Underwriter —
Joe Rosenthal, 1669 Broadway, Denver, Colo.
Aug.

16

(letter of

Frontier Uranium Co., Ogden, Utah
27 (letter of notification) 2,000,000

.

Jan.

shares of com¬
share). Pro¬
ceeds—For mining operations. Office—First State Bank
Building, Ogden, Utah. Underwriter—Coombs & Co. of
Ogden, same city.
Price—At

stock.

mon

par

(10

cents

per

Gatineau Uranium Mines Ltd. (Canada)
Aug. 10 (Regulation "D") 300,000 shares of common stock.
Price—At

tion

and

($1

par

Proceeds—For explora¬

share).

per

development costs.

Office

—

100 Adelaide St.

West, Toronto, Canada. Underwriter—McCoy & Willard,
Boston, Mass.
Co., Salt Lake City, Utah

Dec. 9 (letter of notification) 11,000,000 shares of capital
stock (par one cent). Price—Two cents per share. Pro¬
ceeds—For exploration and
nium properties. Office —

development of oil and ura¬
414 Judge Bldg., Salt Lake
Underwriter—Utah Uranium Brokers, same

City, Utah.
city.
•

General

Homes, Inc. (2/23)
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.
Dec.

15

filed

General

Motors

Corp.,

Detroit, Mich.

Jan. 20 filed 4,380,683 shares of common

being offered for subscription by
of record

Feb.

8 at

the rate

of

stock

one

new

(par $5)

stockholders

common

share

for

each

20 shares

held; rights to expire on March 7. Price—$75
share.
Proceeeds — For capital expenditures and

per

working capital

Subscription Agents—J. P.

Morgan

&

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.

Desert Uranium Co., Salt Lake City, Utah
Oct. 18 (letter of notification) 2,000,000 shares of
mon

com¬

stock Price—At par

(15 cents per share). Proceeds
exploration and development expenses. Office—
Atlas Bldg., Salt Lake City, Utah.
Underwriter—

—For

524

&

Co.,

same

Jan. 20
mon

M.

Shares, Inc., Detroit, Mich.
52,356 shares of class A stock (par $1),
11,106 shares of class B stock (par $1) and 786 shares of

Jan

city.

filed

20

stock

comon

Feb.

8; rights to expire
B

and

(letter of notification) 3,500,000 shares of com¬
(par one cent). Price—Five cents per share.

of General

received

Shares, Inc.

Sept.

7

(par $1).

tive

convertible

Lighting Corp., Cambridge, Mass.
(letter of notification) 57,000 shares of cumula¬

share

of

preferred

common

of

one

stock

share

common

of

stock.

stock (par $4) and 28,500
(par one cent) to be offered
preferred stock and one-half

Price—$5

per

unit.

Proceeds—

For product

development, inventory and working capi¬
tal.
Office—5 Hadley Street,
Cambridge, Mass. Under¬
writer—Paul D. Sheeline &
Co., Boston, Mass.

nominations of $1,000 each). Proceeds—For purchase of
real estate, capital improvements and
contingencies. Of¬
fice—306 E. Main St., Johnson City, Tenn. Underwritei
—D. T. McKee Investment
Co., Box 904, Bristol, Va.

(letter of notification) 25,000 shares of common
(no par). Price — $10 per share. Proceeds—For

working capital.
Tex.

Office—-203 East Cotton St., Longview,
Underwriter—D. G. Carter Investment Co., same

address.

corporate purposes.
writer—None.

Feb.

11

Howard

field

At market.

class

of

A

common

stock

Proceeds—For general

Office—Washington, D. C.

Under¬

General

Uranium Corp., Salt Lake City, Utah
(letter of notification) 1,200,000 shares of com¬

Oct. 27

stock.

mon

ceeds—For

Price—At

par

(25

cents

per

development and exploration

share).
expenses.

fice—404 Boston

Building, Salt Lake City, Utah.
Christopulos & Co., same city.

Pro¬
Of¬

Under¬

• Glatfelter (P. H.) Co., Spring Grove, Pa. (3/3)
Feb. 9 filed 40,000 shares of cumulative preferred stock,
series of 1955 (par $50).
Price — To be supol ed by
amendment.
Proceeds—Together with other f inds, to
be used for

Boston

expansion program.

Underwriter—The First

Corp., New York.

it Glatfelter
Feb.

Balanced

Fund, Boston, Mass.

2,000,000 shares of capital
Proceeds—For investment.

stock.

Price—

9

filed

(P. H.)

Co., Spring Grove, Pa.

(3/3)

125,000 shares of common stock (par $10)
for subscription by common stockholders

to

be offered

of

record

for each

16.

it Eaton &

50,000 shares

Price—$10 per share.

Investment Co.

Jan. 20
stock

filed

14

writer—P. G.

Corp.

Dec. 20 (letter of notification) $160,000 of first
mortgage
6% bonds dated Dec. 1, 1954. Price — At
par (in de¬

East Texas Loan &

Corp. through the exercise of rights
company.
At Dec. 31, 1954, G. M.
owned 2,577,160 shares of General Motors
that

General Services Life Insurance Co.

it Dynaseal

of

Prices—For class

common.

Feb.

units

1.

Motors

from

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.

in

March

on

stock,

$150 per share; and for class C stock,
$134.06 per share. Proceeds—To purchase common stock

Proceeds—For

shares

(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 as of record
A

stock

East Tennessee Water

Consolidated Fenimore Iron Mines Ltd.
Jan. 24 filed
,204,586 shares of
to be offered for
subscription

Office—506 Judge Building, Salt
—
Selected Securities

City, Utah.
Underwriter
Ltd., Los Vegas, Nev.

Diamond Uranium Corp., Moab, Utah

mining activities. Office
824 Equitable
Bldg.,
Denver 2, Colo. Underwriter—John
L. Donahue, 430 16th
St., Denver, Colo.
Consol.

mining operations.

Lake

Van Blerkom

common

Uranium, Inc.

(letter of notification) 5,000,000 shares of com¬

18

Co.

Desert Queen Uranium Co., Salt Lake City, Utah
Jan. 26 (letter of notification) 259,500 shares of common
stock (par two cents). Price—$1 per share. Proceeds—

Colorado

Plateau Uranium Co.
Dec. 1 (letter of
notification) 1,900,000 shares of
stock (par one cent). Price—15 cents

Eula Belle

Gem Uranium & Oil

common stock
(par $1).
by amendment.
Proceeds—For
working capital.
Underwriter — Baker,

supplied

Simonds & Co.,

Jan.

(par $1).
Proceeds—For investment... ,

share.

per

Oct.

(3/2)

shares of

150,000

Price—To

—

Dec. 20 filed

Price—$5

CorpAmerica,

Feb. 2

Cuba

aries.

— For
working
Place, Cincinnati, O.

Proceeds

Hills

Underwriter—None.

Co., San Francisco, Calif.

Central & South West
Corp. (3/1)
Feb. 2 filed 600,000 shares of common stock
(par $5).
Proceeds—To repay bank loans and loan from insurance

Green

1

and P. W. Brooks &

Eureka Corp., San Jose. Calif.
(letter of notification) $300,000 of 5%

18

share.

per

—

Central
Jan.

for subscription by stock¬

holders of record March 1, 1955 on the basis of one new
share for each five shares held; rights to expire on April

Feb. 2 filed

2,000,000 shares of capital stock

14 filed

plied

Continental Electric

15.

Carnotite Development Corp.
(letter of notification) 16,000,000 shares of com¬

Oct. 26

ern

Continental

Jan.

Investment Corp., San Diego, Calif.

Electronics
Dec.

shares of capital stock.

300,000

Jan. 29, 1954 filed 250,000

Calumet &
Feb.

..

Price—At
par ($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa. Underwriter—None.
filed

6

mon

Contact

of Ireland

Electronics Co.
Jan.

(letter of notification)

—

certain

pers;

sold

be

March

Price—To

Together
program.

York.

1,

1955

1.76 shares then

with

be

on the basis of one new share
held; rights to expire on March

supplied

by

amendment.

other funds, to be
Underwriter—The First

Proceeds—

for expansion
Boston Corp., New
used

•

Volume 181

Number 5404

...

The Commercial and Financial
Chronicle

51

(851)
Globe
Jan.
of

18

Metallurgical Corp.

filed

147,500 shares of
30,000 shares are to

which

composed

—

ments

117,500

$10

and

shares

share.

per

are

Proceeds

offered

of Globe

be

to
—

Phillips Petroleum Bldg., Salt Lake City, Utah.
writer—Hunter Securities
Corp., New York.

(par $5),

to

a

Iron

offered

group

^Kansas Gas & Electric Co.

Co, the

to

Feb.

Under¬

11

Office—Beverly, Ohio. Un¬
Co., Cleveland, Ohio, bffering—

Granco

Products, Inc. (N. Y.) (3/2)
(letter of notification) 120,000 snares of common
(par 50 cents). Price—$2.50 per share. Proceeds
—F.or
machinery and equipment, further development
and research, and
working capital. Business—Electronic,
electrical and electro-mechaniacl
products. Office—c/o

Corp. (jointly); Union Securities Corp. and Stone &
Webster Securities Corp.
(jointly); Lehman Brothers and
Bear, Stearns & Co. (jointly); Kidder,
Peabody & Co.
and Merrill
Lynch, Pierce, Fenner & Beane
(jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.

stock

(jointly).

Henry Fogel,

Bids—Expected March

City; N. Y.

★ Kansas Gas & Electric Co. (3/15)
Feb. 11 filed
60,000 shares of cumulative preferred stock
(par $100).
Proceeds—To repay bank loans and for

President, 36-17/20th Ave., Long Island
Underwriter—John R. Boland & Co.,

Inc.,,

• Group Securities,
Feb. 8 filed
of

Inc.

(amendment)

capital stock.

(N. J.)
additional 2,000,000 shares
market. Proceeds—For in¬

construction

an

Price—At

by

Utilities Co.

May 14, 1954 filed 160,800 shares of
preferred stock (par
$100). 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

Lake Lauzon

Aug.

Gulf States Utilities Co.

May 14, 1954 filed $24,000,00 first
mortgage bonds due
$10,000,000 of 3%%
$10,000,000 of 3%%
bonds due

1983, and for general corpo¬
Underwriter—To be determined by com¬

&

mon

Loeb

Beane

eb.

1

the

&

Y.. but offering has been
postponed.

Brewing

Co.,

Lowell, Mass.

the

successful

bidder

will

company

Hilton

plans to

file

distribute

post-effective

the

shares,

amendments

to

Hotels

Corp., Chicago, III.
ec. 23 filed
$7,978,900 of 4V2% 15-year convertible deentures, due Jan. 1, 1970, and $31,915,600 of
4%% 15debentures due Jan.

holders

otels

and

Statler

mount

of

former

Co.,

Inc.

1, 1970,

being offered to

holders

of

on

convertible

cer-

stock

common

of

tljie; basis of $10 principal

debentures and $40
principal
mount of non-convertible
debentures for each common
held. The
offering will expire on Feb. 14. Price
at
100% of principal amount
(in denominations of
100 and multiples
thereof).

hare

Proceeds—To

and

for

working capital.

rarine Midland Trust
ew

York, is warrant agent.

rice—$3.50

per

share.

renav

bank

Underwriter—None. The

Co. of New

York, 120 Broadway,
*

Holly Uranium Corp., New York
""eb. 10 filed
900,000 shares of common
Proceeds—To

stock

(par $1).

exercise

on properties in Utah and New
Mexico.
riter—Barrett Herrick & Co., Inc. and

company

Co., Minneapolis, Minn.
'
Nov. 3 (letter of
notification) 13,000 shares of preferred
stock (par $10) and
$170,000 of 8% subordinate notes
,

due five years from date of

ceeds—To

reduce

bank

issue.

loans

and

Price—At par.

Pro¬

for

working capital.
Northwestern Federal
Bldg., Minneapolis,
Minn. Underwriter—Daniels &
Smith, Inc., same city.
Lehman Corp., New York
Jan.

20

filed

420,623

shares

of

(par $1)

one

new

share for each

10

shares

stock

Uranium & Oil

Securities

(par

•

Corp.

Inc., Oakland, Calif.

articipating agreements.
Investment Corp. of America
ug. 30 (letter of notification) 3,799 shares of cumulave preferred stock
(no par) and 3,799 shares of comon stock (no
par). Price—For preferred, $20 per

share,
nd for common. $2
per share. Proceeds—For
working
pital. Office—3603 Broadway, San
Antonio, Tex. Unerwriter—Interior Securities, Inc., San
Antonio, Tex.
Jarmcn Properties & Oil
Development Corp.

17 (letter of
notification) 30,000 shares of captal
ock. Price—At par
($10 per share). Proceeds—For fur-

an.

exploration and development. Addres—P. O. Box
109, Wichita Falls, Tex. Underwriter—John A.
Aicholtz
Associates, 505 Macon St., Fort Worth, Tex., and anler

her.

and

mining




expenses.

cents

per

Office—402

share.

Darling

—

Lucky Strike Uranium Corp.
(letter of notification) 4,300,000 shares of common
stock (par one cent). Price—Five
cents per share.
Pro¬
Jan. 4

ceeds—For
St

,

Salt

mining operations.

Lake

curities Corp.,

City. Utah.

Office—38

South

Main

Underwriter—Seaboard

Se¬

Washington, D. C.

stock of Devoe;

1 Ms

shares foi

1,290,252 shares

1,290,25? outstanding shares-of common
(par $1) of New York Shipbuilding Corp., at the

rate of

one

share for each share of

common

stock of N. Y.

Shipbuilding; 27,907 shares to holders

of the 58,605 out¬
standing shares of common stock (par $1) of Newport Steel
Corp., not owned by Merritt, at the rate-of one share
for each 2.1 shares of common stock of
Newport; 26,114
shares to holders of the
17,409 outstanding shares of
stock

common

not

owned

(par $10) of Marion Power Shovel Co.,
Merritt, at the rate of \lk shares for

by

each share of

common

stock of

Marion; and 940 shares
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
holders

of

the

1.410

for each lVz shares of class B

Offer

will

expire

Feb.

on

common

28.

stock of Osgood.

Dealer-Manager—A.

C.

Allyn & Co., Inc. for Devoe & Raynolds exchange.
it Mesa

Petroleum Co., Inc., Wichita, Kans.
(letter of notification) 75,000 shares of common
stock (no par). Price—$4 per share. Proceeds—To com¬
plete wells already drilled on properties owned by
Feb.

9

company; and

to drill additional wells.

surance

Building, Wichita, Kans.
Schenkosky, same address.

C.

Office—303 In¬

Underwriter—Albert

Micro-Moisture Controls, Inc.
(letter of notification) $250,000 of 6%%

Jan. 13

convertible debentures

income

(subordinated) due Feb. 1, 1965,

be

offered initially to stockholders.
Price—100% of
(in units of $100 or multiples thereof). Proceeds—
working capital, etc. Office—22 Jericho Turnpike;
Mineola, N. Y. Underwriter—None.

Office—318

Military Investors Financial Corp.
(letter of notification) 150,000 shares of common
(par 25 cents). Price—$2 per share. Proceeds—

stock

For

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of
stock

mon

(par

Missouri

Inc.,

Marble
Feb. 4

com¬

Elizabeth, N. J.

fered in units of

an additional 1,000,000 shares
Price—At market. Proceeds—For in¬

Canyon Uranium, Inc.
Price—At

par

20,900,000 shares of
cent per share).

(one

com¬

Pro¬

ceeds—For mining operations. Office—587 — 11th
Ave.,
Salt Lake City, Utah.
Underwriter—Potter Investment

Co.,

same

!

city.

Monte Cristo
Oct. 5

be

to

offered

in

exchange

for

all

of

the

•

Maryland

Casualty

Co.,

(par $5)
outstanding

Baltimore,
common

by

record Feb. 24

on

the basis of

Md.
(2/25)
stock (par $1) to

common

one

new

shares

held; rights to expire March
supplied by amendment. Proceeds

—

stockholders of

share for each six

10.
To

Price—To
retire

be

213,748

shares of $2.10 preferred

stock at $52.50 per share; and
Underwriter — Merrill
Lynch,

for

working capital.
Pierce, Fenner & Beane.
•

Department
filed

March

1, 1980.

Co.

(3/1)

Price

—

For

Co.

and

Lehman Brothers,

both of New York.

Merritt-Chapman & Scott Corp.
Dec. 21- filed 3,018,567 shares of common

stock
(par
being offered in exchange for outstanding stock
of New York Shipbuilding
Corp., Devoe & Raynolds

$12.50)

Uranium

Corp., Moab, Utah

of notification)

(par

Proceeds—For

Virginia

St., Reno, Nev.
Montezuma
Jan.

Uranium, Inc., Denver, Colo.

5

mon

stock

(letter of notification) 3,000,000 shares of com¬
(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

city.

(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¬
stock.

mon

ceeds—For

ard

and

Utah.
New

Associates, 602 Tribune Bldg., Salt Lake City,
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
at the rate of one new share for each five
shares held;
rights to expire on March 31. Price—At par ($100 per
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.
Pacific

Coal & Oils, Ltd.,
Toronto, Canada
(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.,
Spokane, Wash.

both of

it New York Capital Fund of Canada, Ltd.,
Toronto, Can.
Feb. 9 filed (amendment) an additional 35,000 shares of
For

stock

(par $1).

Price—At market.

Proceeds—

investment.

$25,000,000 of sinking fund debentures due

—
To be supplied by amendment.
working capital and for current and
expansion projects.
Underwriters — Goldman,

Proceeds
future

Stores

(letter

stock

common

May

Feb. 9

Price

Dec. 28

stock of Bank of Gowanda at the rate of
eight shares of
Marine Midland common for each Bank of Gowanda
share held of record March
4, 1955. Underwriter—None.

Feb. 3 filed 296,050 shares of
be offered for subscription

share of each class of stock.

3,000,000 shares of com¬
one cent).
Price—10 cents per share.
exploration and development expenses.
Underwriter—James E. Reed Co., 139 North

mon

New

it Marine Midland Corp., Buffalo, N. Y.
15 filed 64,000 shares of common stock

Feb.

one

—$5 per unit. Proceeds—For exploration and develop¬
ment, etc. Underwriter—Dale E. Klepinger & Associates,
203 W. Dartmouth, Kansas
City, Mo.

•

(amendment)

(letter of notification)

stock.

Corp., Kansas City, Mo.
150,000 shares of preferred stock (par $5)
150,000 shares of common stock (no par) to be of¬

and

Mother Lode Uranium Co.

one

capital stock.

Uranium

Jan. 24 filed

Jan. 28

cent). Price — 10 cents per share.
Proceeds—For exploration and development
expenses.
Office—65 East 4th South, Salt Lake
City, Utah. Under¬
writer—Mid-Coninent Securities, Inc., the same
city.
Feb. 9 filed

general corporate purposes. Office—2310 Main St.,
Underwriter—Cobb &- Co., Inc., same

Houston, Texas.
city.

Mac Fos

Uranium, Inc., Salt Lake City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬
mon stock (par one
cent). Price—Three cents per share.
Proceeds—For exploration and
development costs. Office
—239 Ness Bldg., Salt Lake
City, Utah. UnderwriterUtah Securities Co., same city.

Sachs &

Justheim Petroleum
Co., Salt Lake City, Utah
ec.
9 (letter of
notification) 2,650,000 shares of comon stock
(par five cents). Price—10 cents
per share,
oil

Price—Three

mining operations.

Bldg., Salt Lake City, Utah.
Underwriter
Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
it Lucky Lake Uranium, Inc., Salt Lake
City, Utah
Feb. 9 (letter of
notification) 8,000,000 shares of capital
stock.
Price—At par (two cents
per share). Proceeds—
For mining expenses. Office—201
Boston Building, Salt
Lake City, Utah.
Underwriter—Kastler Brokerage Co.,
same city.

mon

10 filed

For

cent).

one

Proceeds—For

vestment.

(amendment) an additional 23 units, $1,000
ach, of single payment plans, series U, and
30,000 units,
1,200 each, of accumulative plans, series
E, 10-year

—

common

par

the basis of

on

Under-

(letter of notification) 100,000 shares of common
tock (par 10 cents).
Price—$1 per share. Proceeds—
or mining and oil
activities. Office—2320 South Main
treet, Salt Lake City, Utah. Underwriter—None.

roceeds

oi

to holders of the

Feb. 8

of

7

Insurance

the

at

stock

common

of Devoe, at the rate of

each of class B

to

certain

Barnett, both of New York.
Indian Creek

of

Devoe; 242,700 shares to holders?
outstanding shares of class B common

stock

capital stock (par $1)
being ofered for subscription by stockholders of record

Franklin, Meyer

'eb.

the

it Manhattan Bond Fund,

ptions

eb.

common

share

stock (par

Corp.,

Dec. 1

Stuart

upply the requisite additional information.
There are
25,000 shares outstanding.
Offering—Date expected to
e set later in
February.

oan

of

common

Chemical

share of class A stock of
of the 182,025

Liborty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common

Halsey,

345,760 shares of common stock (par
$1),
Attorney General, as successor to the Alien
roperty Custodian, is the owner and proposes to offer
t competitive
bidding. If any such bid is accepted, and

ain

of

~

(with an oversubscription
privilege); rights to ex¬
pire on Feb. 23. Price—$43.25 per share.
Proceeds—For
investment. Underwriter—None.

bidders:

filed

hich

ear

shares

&

to holders of the 453,063 out¬
standing shares of class A stock (par $2) of Devoe &
Raynolds Co., Inc. at the rate of 1% shares for each,

Brothers; Merrill Lynch, Pierce, FenWhite, Weld & Co. (jointly); Salo¬

Bros. & Hutzler and Union
Securities Corp.; Kuhn,
& Co. and A. C.

Harvard

he

660,000

Products

shares for each

For

Probable

and

York. N

f

filed

1Vt

Tennessee; 755,105 shares

to

Mines, Ltd., Toronto, Can.

Tennessee

of

held

igginson Corp. and Carl M. Loeb, Rhoades
&
Co.
(jointly): Stone & Webster Securities
Corp. Bids—Had
entatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover
Bank, 70 Broadway,
~ew
•

Lehman

540,439 outstanding shares of

of

Allyn & Co., Inc. (jointly); Lee

petitive Didding.
Co. Inc.; Lehman
ner

bidders:

Office—305

June 1, 1984. Proceeds—To
redeem
first mortgage bonds due 1981
and

first mortgage
rate purposes.

Probable

—

Corp. (jointly);

Kuhn,
Loeb & Co.;
Glore, Forgan & Co. and W. C. Langley &
(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¬
fering has been postponed.

2

behalf

Corp.; Lehman

Co.

Underwriter—To be determined

bidding.

stock (par $1,
are to be offered in
and 160,000 shares for account
of Percy E. Rivett.
Price—40 cents per
share, U. S. funds.
Proceeds
For development and
exploration expenses.
Underwriter—To be named by amendment.
Lee Finance

stock at the prevailing redemption
prices of $105, $105, and
$105.75, respectively. Under¬
writer—To be determined by
competitive bidding. Prob¬

$5)
rate

stock

Canadian), of which 500,000 shares

diyidend preferred

able bidders: Stone &
Webster Securities
Brothers and Equitable Securities

program.

competitive

15.

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.

vestment.

Gulf States

of the

1985.

Feb. 4

New York.

Co., Inc., Newport Steel Corp., Marion Power Shovel
Co., Osgood Co. and Tennessee Products & Chemical
Corp. on the following basis: 675,549 shares to holders

(3/15)

filed $10,000,000 of first
mortgage bonds due
Proceeds—To repay bank loans and for
construc¬
tion program. Underwriter—To
be determined
by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.;
Glore, Forgan & Co. and Goldman Sachs &
Co. (jointly);
Blyth & Co., Inc. and The First Boston

public.

For capital improve¬

working capital.

derwriter—McDonald &
Temporarily postponed.
•

be

largely of stockholders

parent, and
Price

stock

common

Nipissing

Mines Co. Ltd., Toronto, Canada
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
Jan. 3 filed

share.

Proceeds—For payment

of options, development

Continued

on

page

52

52

Continued

from

writers—Allan H. Investments,
Louis

A.

Chesler;

Under-

Ltd.; Alator Corp., Ltd.;

Bradley Streit;

and

Co. (3/2)
stock (par $5)
Price—To
be supplied
by amendment.
Proceeds—To
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 —
Blyth & Co., Inc., New York and San Francisco.
•

51

page

properties, and for machinery and equipment.

of
*

all of Toronto,

Canada.

Electric & Engineering

Reliance

Feb.

filed

8

shares

50,000

of

common

—

Television Productions,

North American

stock
For

Inc.

(letter of notification) 100,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—

Feb. 3

i

Business

production of films, working capital, etc.

—Production

motion

of

distribution

and

pictures

for

and
non-theatrical exhibitions.
Office—222 East 46th St., New York, N. Y. Underwriters
—Milton D. Blauner & Co., Inc. and Baruch Brothers

theatrical,

television,

&

stock

for subscription

by stockholders at
share for each six shares held. Price—

offered

rate of

one

new

At par

($1

per

Proceeds—To retire short-term
Office — 30 Commerce
Underwriter—None.

share).

and for working

notes

St., Stamford, Conn.

capital.

if Pacific Gas & Eiectric Co. (3/2)
14 filed $50,000,000 of first and refunding mor'gage

Feb.

loans

due

Dec.

1,

for

new

construction.

be .determined

To

Proceeds—To retire

Y,

and

bonds, series
bank

1987.

competitive

b,y

The

Co. Inc.

(jointly); Blyth & Co., Inc.
on

Boston

Underwriter—

bidding.

bidders:

be received

First

Probable

Corp. and Halsey,

&
Bids—Expected to
Stuart

(letter of notification) 250.000 shares

of common

(par five cents). Price—$1 per share. Proceeds—
exercise option agreement and to manufacture a

Pay Day Uranium Co., Las Vegas, Nev.
Oct. 15 (letter of notification) 2,500,000 shares of capital
'

(par two cents). Price—10 cents per share. Pro¬
exploration and development costs. Office—

ceeds—For

Fremont

St., Las Vegas, Nev.
same city.

Underwriter—Allied

Underwriter Co.. the

if Petroleum Reserves, Inc., New York
14 filed $7,500,000 of
4% debentures

due

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

Rico
Dec.

Argentine Mining Co.
70,395 shares of common
(par 50 cents), being offered for subscription by
(letter of notification)

2

stock

stockholders of record Jan.

Corp. (2/21)
Feb. 4 (letter of notification) 100,000 shares of common
stock (par 25 cents).
Price—$3 per share. Proceeds—
To acquire stock of Abell Chair & Novelty Co., Inc. and
products

Otfice—12-01

44th

Business—Manufacture

purposes.

by

the

Ave.,

derwriters—Milton

D.

injection

molding
Long Island City, N.

Blauner

&

process.

Y.

Un¬

Co., Inc., New York;

Hallo well,

Sulzberger & Co., Philadelphia; and Baruch
Brothers & Co., Inc., New York.
•

Porter-Cable Machine Co.

Jan.

27

stock

oversubscrip¬

Broadway, New York 15, N. Y.
Gas

Rochester

filed

3

$10,000,000 first mortgage bonds,

series O,

program,

includ¬

short term obligations.
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—To be received up to 11 a.m. (EST)
discharge of $9,200,000

the

ing

Underwriter—To be determined

Feb. 24

.

Products, Inc., Berlin, Conn.
5,727 shares of common
stock to be offered for subscription by stockholders of
record Feb. 1, 1955 at the rate of one new share for each

Jan.

28

(letter of notification)

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¬
lin, Conn. Underwriter—None.
Salisbury Broadcasting Corp., Paxton, Mass.
Jan. 20 (letter of notification) $150,000 of 5% notes and
6,000 shares of common stock (par $1) to be offered first
to stockholders in units of

holders,

for

each

lxk

capital.

$1,000 of notes and 40 shares
unit. Proceeds—For working

Office

—
Asnebumskit, Paxton, Mass. Under¬
Kinsley & Adams, 6 Norwich St., Worcester,

—

cents).
ment

V.

Jan. 21

the

on

Price—$2 per
exploration

and

Klein

Co.

shares held.

M.

Lurmann.

San

Price—To

stock

stock¬

and

Rainier Telephone Co., Rainier, Wash.
Dec. 14 (letter of notification) $85,000 of 5V2%

due

pro¬

1,

1967.

Price—To

convertible
be

supplied by amend¬
Proceeds—To be used principally to reduce short

bank

East

4th

Silver Pick Uranium,

Nov. 22
mon

Inc., Reno, Nev.
(letter of notification) 2,994,000 shares of com¬
(par five cents). Price—10 cents per share

stock

Proceds—For

exploration

and development costs.
Of¬
Street, Reno, Nev. Underwriter
Corp., Las Vegas, Nev.

fice—211-206 N. Virginia
—Western

Securities

Jan.
mon

purposes.-Underwriter—James Anthony

mining expenses. Office—130 South 13th
East, Salt Lake City, Utah. Underwriter—Peters, Writer
Christensen, Inc., Denver, Colo.

Earth

Mining Corp. of Canada, Ltd.
amendment (Regulation "D") 242,850 shares of
stock.
Price—$1 per share. .Proceeds
For

&

Slick Rock

—

James An¬

thony Securities Co., New York.
★ Ready-Made Buildings, Inc.,
(2/28)

underwriter

Pittsburg, Kan.

Feb. 8

(letter of notification) 150,000 shares of common
(pair 10 cents). Price—$2 per share. Proceeds-^
purchase building sites, equipment and

stock

inventory,
working capital.
Office
405 Globe Bldg.,
Pittsburg, Kansas. Underwriter—Aetna Securities Corp.,
for

York.




—

Uranium Development Corp.

Oct 8 (letter of notification) 2,900,000 shares of common
stock (par five cents), including shares for option to

—

Underwriter

Co., Salt Lake City, Utah
(letter of notification) *3,000,000 shares of com¬
stock (par five cents).
Price—10 cents per share.

17

Proceeds—For

Securities Corp., New York.

*

and

prior property owner to be amended.
per share.
Proceeds—For development
and exploration expenses. Office—Newhouse Hotel, Salt
Price—10

Lake
same

•

cents

City, Utah.

Underwriter

Van Blerkom

&

Co.,

city.

Sodak Uranium &

Jan.

—

13

•

Southeastern

(letter of notification)

Shields & Co.,

Public

Co.

Service

(letter <?f notification) 28,000 shares of common
(par 10 cents) being offered in exchange for
Corp. capital stock (par $1) on the basis
share. This

Gas

of 3% Southeastern shares for each Hamilton

offer shall terminate when offer shall have been accept¬
ed

by Hamilton

York

not in excess of
Office—70 Pine St., New

stockholders owning

8,000 shares of Hamilton stock.

Underwriter—None.

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.

Roe & Farnham, Inc., Chicago, III.
Feb. 10 filed (amendment) an additional 99,498 shares of
capital stock. Price—At market. Proceeds—For invest¬

if Stein,

ment.

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
offered in units of

—$10.01

per

share of each class of stock. Price

one

unit. Proceeds—For purchase of land and to

construct and

equip

a

luxury hotel. Underwriter—None,

Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceed!
—For development and exploration costs. Office—Medi¬
cal Arts Bldg., Las Vegas, Nev. Underwriter—Uranium
Brokers, Inc., the same city.
Swedes
5

Uranium

stock

Corp., Salt Lake City, Utah

(letter of notification)

(par three cents).

2,500,000

shares of

Price—10 cents

per

com¬

share.

Proceeds—For

exploration and development expenses.
Office—Newhouse Bldg., Salt Lake City, Utah. Under¬
writer—Guss & Mednick Co., same city.

Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬
stock

mon

(par five cents).

Price—10 cents

per

share.

Proceeds—For exploration and development of proper¬
Office —1406 Life of America Building, Dallas,

ties.

Texas.
Lake

Underwriter

—

Western

Securities

Corp.,

Tacony Uranium Corp., Denver, Colo.
(letter of notification) 1,700,000 shares of
stock.

mon

Salt

City, Utah.

Aug. 17

Price—10

cents

per

share.

com¬

Proceeds—For
Office — 317

exploration and development expenses.
Railway Exchange Building, Denver, Colo.
—E. I. Shelley Co., Denver, Colo.

Underwrite*

7

mon

stock

(letter of notification) 3,500,000 shares of com¬
(par 2% cents). Price — 3 cents per share.
Proceeds—For exploration and development expenses.
Office—39 Exchange Place, Salt Lake City, Utah. Un¬
derwriter—Walter Sondrup, same city.
Texas Electric Service Co.
Jan.

19

1985.

for

1,200,000 shares of

filed

Proceeds—To

mined

Stuart

of

redeem

program.

by competitive
& Co.

(2/23)

first mortgage bonds due
$7,000,000 3%% bonds and
Underwriter—To

bidding.

be

deter¬

Probable bidders:

Hal¬

Corp.; Kuhn,
Loeb
&
Co., Blyth Co., Inc. and Lehman Brothers
(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &
Co.
and
Merrill
Lynch,
Pierce,
Fenner
&
Beane
(jointly); Union Securities Corp., Hemphill, Noyes &
Co. and Drexel & Co. (jointly).
Bids—To be received
up to 11:30 a.m. (EST) on Feb. 23 at Room 2033, Two
Rector St., New York 6, N. Y.

sey,

Texas
June 21

Inc.; The First Boston

International

Sulphur Co.

filed

455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered for
subscription by common stockholders at the rate of one
new share for each 4%
shares held; and 70,000 sharee
are for account of certain selling stockholders. Price—To
be supplied by amendment. Proceeds—For exploration
and drilling, and payment of bank loans and advances.
Underwriter—Vickers Brothers, New York, on a "best ef¬
forts" basis.

Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,009
of 6% series B convertible debentures due serially from
Jan.

1, 1962 to Aug. 1,

amendment.
com¬

$17,000,000

construction

Feb.

Mining Co., Inc.

stock (par one cent).
Price — 25 cents per share.
Proceeds—For mining expenses. Address—P. O. Box 330,

mon

—

Jan. 24

South

St., Salt Lake
Underwriter—Doxey Investment Co., same

City, Utah.
city.

20-year

Office—64

Underwriter

fice—Birmingham, Ala.
New York.

Oct.

debentures

Silver Reef Uranium

general corporate purposes.

filed

Temple Mountain Uranium Co.

(2/24)

$10,000,000 of 4%%

ing expenses.

Canada

New

Co.,

Shumway Uranium Mining Corp.
Jan. 28 (letter of notification)
200,000 shares of capital
stock. Price—At par ($1 per
share). Proceeds—For min¬

Dec. 30 (regulation "D") 300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For gen¬

and

&

loans.
Underwriters—Paine, Webber, Jack¬
Curtis; White, Weld & Co.; Lehman Brothers;
Hemphill, Noyes & Co.; and Hamlin & Lunt.

Ranger Lake Uranium Mines, Ltd., Toronto,

To

Mineral Bldg.,
Tellier

&

son

sinking fund bonds due Dec. 1, 1979. Price—At par (in
$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.

18

March

ment.

denominations of

common

—

—

Sheraton Corp of America

term

for construction

4

city.

same

mining operations. Office
Junction, Colo. Underwriter

Feb. 4-filed

Underwriters—Morgan Stanley & Co.; Drexel &
Co.; and Glore, Forgan & Co. Offering — Temporarily
delayed.

Nov.

Francisco, Calif.

Jersey City, N. J.

gram.

Rare

Office—470-10th St,, San

Miguel Uranium Mines, Inc.
notification) 2,000,000 shares of common
(par one cent). Price—15 cents per share. Pro¬

Grand

Price—To be supplied by amendment. Pro¬

corporate

McGrath

ceeds— For

one

Public Service Electric & Gas Co,

eral

develop¬

etc.
Underwriters—R
Securities Corp., both o1

Underwriter—Blyth & Co., Inc.,

Dec. 22 filed 250,000 shares of cumulative preferred stock
loans

Proceeds—For

expenses,

Francisco Brewing Corp.
Feb. 3 (letter of notification) 6,500 shares of common
stock (par $10), represented by voting trust certificates.
Price—$42.50 per share. Proceeds—To Estate of Anna

per

bank

and

share.

(par 10

if San

com¬

basis of

Georgia Natural Gas Co.
(2/24)
157,500 shares of common stock (par $1).
Price —$6 per share.
Proceeds —Together with other
funds, to construct and operate a pipe line system. Of¬
South

Feb.

mon

New York.

working

ceeds—To reduce

share for each

a portion of additional equity capital re¬
quired by South Carolina Generating Co., a subsidiary.
Underwriter—Kidder, Peabody & Co., New York.

Jan.

—

(par $100).

per

Corp., Santa Fe, N. M.
Sept. 14 filed 300,000 shares of common stock

share; to public, $12.50 per share.
capital, etc. Office—Syracuse,
N. Y.
Underwriter
George D. B. Bonbright & Co.,
Rochester, N. Y.
$11.50

Proceeds—For

Price—$1,000

Samicol Uranium

common

(par $10) to be offered for subscription by
share

new

the basis of one new

on

held

and to furnish

Hamilton

(2/24)

Proceeds—For construction

1985.

due

shares

15

stock

Electric Corp.

&

Jan. 6 (letter of

(letter of notification) 24,000 shares of

stockholders of record

mon

*

an

Mass.

Plastics Molded Arts

„

(with

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 Agent — Guaranty Trust Co. of New York,
140

writer

capital. Business—Manufacturer of elec¬
meters, electric test instruments, precision

resistors, aircraft and sensitive miniature relays, and
special products. Underwriter—First California Co., San
Francisco, Calif.

...

the basis of one new

on

tion

and for working

>

14

shares for each 12% shares held

tric

general corporate

for

(with an oversubscription privilege);
rights to expire on March 10. Price—To be supplied by
amendment.
Proceeds—For new construction program

of stock.

plastic

offered

be

of record Feb. 24

of patented typewriter attachments.
Office—1411
Pennsylvania Avenue, N. W., Washington, D. C. Under¬

40,000 shares for account of selling stockholders.
Price—$6 per share. Proceeds — To reduce bank loans

and

of

(2/25)

shares of common stock (par $4.50)
subscription by common stockholders

To

Rowland

1970,
100,000 shares of 5% preferred stock (par $25) and
1,000,000 shares of common stock (par 10 cents) to be
offered in units of $750 principal amount of debentures,
10 shares of preferred stock and ICO shares of common
stock.
Price—To be supplied amendment.
Proceeds—
For acquisition of producing oil and gas properties. Un¬
derwriter—Smith, Barney & Co., New York.

for

Electric & Gas Co.

Carolina

South

& Co., Kansas

stock

on

Feb.

panel

•

Feb. 2 filed 210,053

Feb.

Utah
Oct. 7 (letter of notification) 6,000,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—
For mining expenses. Office—325 Main St., Moab, Utah.
Underwriter—Van Blerkom & Co., Salt Lake City, Utah.

230

1016 Baltimore Bldg.,

Bldg., Salt Lake City, Utah, and

to

March 2.

Paramount Uranium Corp., Moab,

stock

7

stock

Development Co., Stamford, Conn.
(letter of notification) 29,698 shares of common

ot be

(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.

City, Mo. Underwriter—E. R. Bell
City, Mo.

Olympic
13

Inc.

Uranium & Oil Corp.,

Solomon

& Co., New York.

Kansas

if Ribbon Copies Corp. of America,
Washington, D. C.
Feb. 9

Edgemont, S. D. Underwriter—Capper
Offering—Expected today (Feb. 17).

writer—None.

Co., Inc., both of New York.

Jan.

February 17, 1955

The Commercial and Financial Chronicle...Thursday,

(852)

1966.

Price—To be supplied by

Proceds—To construct and operate a manu¬

facturing plant

manufacturing

near Orange, Tex., for the purpose of
insulation building products.
Under¬
Cook Co., Palm Beach, Fla.

writer—Emerson

Volume 181

Number 5404

The Commercial and Financial Chronicle

...

(853)

Thunderbird Uranium Co., Reno, Nev.
Aug. 3 (letter of notification) 1,800,000 shares of

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

com¬

stock

mon

(par 10 cents). Price — 15 cents per share.
Proceeds—For mining activities. Office—206 N. Virginia

St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City.
Thunderbolt Uranium Corp., Salt Lake City, Utah
Jan. 31 (letter of notification) 22,000,000 shares of capital stock. Price—At par (one cent per share). Proceeds

—First Western

Vada

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¬
ceeds—For mining expenses.
Office—1122 Mile High
Center, Denver 2, Colo. Underwriter—Robert W. Wil¬
son, 1717 East Colfax Ave., Denver, Colo.
Feb.

Oct. 15

den

Price

—

Five cents

per

share.

Webster

For exploration and development expenses.
Main St.,
Smithfield, Utah. Under-,

—

.

North

writer—Lewellen-Bybee, Inc., 1627 K St., N. W., Washington, D. C.
Trans-Continental

J.

Teske, d/b/a
Hotel, Wallace, Idaho.

Top Notch Uranium & Mining Corp.
(par two cents).

"

Uranium

Mines,

Uranium

Price—$1

stock

West Coast Pipe Line Co.,
Dallas, Tex.
Nov.

20,

1952

filed $29,000,000 12-year 6% debentures
15, 1964, and 580,000 shares of common stock
(par 50 cents) to be offered in units of one $50 deben¬

due

Dec.

ture

and

share of stock.

one

amendment.

additional shares of

Uranium, Inc., Salt Lake City, Utah.
(letter of notification) 15,000,000 shares of com¬
(par one cent). Price—Two cents per share.
Proceeds
For exploration and
development costs.
Office—424 Judge
Bldg., Salt Lake City, Utah. Under¬

common

1,030 mile crude

oil

Union

it Union Oil Co. of California
filed

of

promissory
obliga¬
tions (the latter at 103.45%); to redeem at
$102.50 per
share all of the outstanding $3.75 cumulative
preferred
shares, series A; for exploration and development of oil
and gas properties and for other
property additions;
and

for

general corporate purposes.
lon, Read & Co. Inc., New York.

it United Canadian
Feb.

Uranium

Underwriter—Dil¬

Corp.

Building, Denver 2, Colo. Underwriter—Car¬
roll, Kirchner & Jaquith, Inc., same city.
•

United

States

Ceramic

Tile

Co.

(3/2)

(par $5), of
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.
Ohio.

Underwriter

—

Granbery,

Office—Canton,

Marache

&

Co.,

New

York.
United Uranium

Jan.

Corp., Denver, Colo.

26

(letter of notification) 4,133,329 shares of com¬
stock (par one cent), of which
2,133,329 shares are

mon

covered

by

offer of rescission to 37 shareholders at
three cents per
share; and 2,000,000 shares are to be
publicly offered at 10 cents per share. Proceeds—For

mining
I6th

an

expenses.

Underwriter—John L.

Donahue, 430

Street, Denver 2, Colo.

Universal Petroleum Exploration &
Drilling Corp.
Oct. 4 (letter of notification)
300,000 shares of common
stock.

Price

At par ($1 per share). Proceeds — For
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 Fifth St., Las Vegas, Nev.
—

cost of Driller

*

Uranium
Nov.

Discovery & Development Co.,
Wallace, Idaho
16 (letter of
notification) 1,000,000 shares of capi¬

stock.

Price—At par

ceeds—For

(five cents

per

share).

Pro¬

core

drilling program upon two groups of
Address—Box 709,
Wallace, Idaho. Underwriter
—Wallace Brokerage Co., same
claims.

city.

Uranium Shares, Inc.,
Denver, Colo.
Dec. 22 (letter of
notification) 30,000,000 shares of
mon
stock.
Price—At par (one cent per
ceeds—For

Denver,

mining

Colo.

expenses.

com¬

share). Pro¬
Office—3038 Wyandot St.,

Underwriters—Kamp

&

Miller & Co. and Mile
High Securities
ver, Colo.

Co.,

Fred

W.

Co., all of Den¬

Utaco

Uranium, Inc., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For exploration and
development costs. Of¬
fice—420 Felt Building, Salt Lake
City, Utah. Under¬
writer—Western Securities
Corp., Las Vegas, Nev.
Oct.

7

mon

stock

Utah Apex Uranium Co.
Oct. 18 (letter of
notification)
tal stock (par three

3,000,000 shares of capi¬
cents). Price—Six cents per share.
exploration and development expenses.
Office—430 Judge Bldg., Salt Lake
City, Utah. Under¬
Proceeds—For

writer—Mid-Continent Securities, Inc.,




same

and

city.

pipeline.

Securities

build

to

Underwriters

a

White,
Corp., both of New
—

Offering—Postponed indefinitely.

Securities

Corp., both
poned indefinitely.
Western
Jan.

of

New

York.

Offering—Post¬

Houston, Texas
filed 315,000 shares of common stock
(par 50
Price—To be supplied by amendment. Proceeds
—for equipment arid
working capital. Underwriter—To
14

cents).

be named by amendment
& Co., Houston,

(may be Underwood, Neuhaus

Texas).

Zenith Uranium &
Mining Corp.
July 12 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining operations.
Underwriter—Sheehan & Co,
Boston, Mass.
; ■
•
;
■
,

■

■

•

Prospective Offerings
Alabama Power Co.'
Dec.

30

sell

it

(5/31)

announced

was

company

plans to issue and

$15,000,000 first mortgage bonds due

1985. Proceeds

Hills

filed

Price—$5
funds, to construct, furnish and equip hotel to be built
between Dallas and Fort Worth, Texas.
Underwriter—
Schwanz & Co., Inc., Aurora, 111.

to

27

be

cago,

filed

479,158 shares of common stock (par $1)
for subscription by stockholders of Chi¬
Aurora & Elgin Ry. Co. at rate of one Westport
offered

share for each

—$2

Chicago, Aurora & Elgin share held. Price

share.

per

Kansas

Proceeds—To repay bank loans and for

City, Mo.

Underwriter—George K. Baum & Co.,
,

•

White

Canyon Mining Co., Dove Creek, Colo.
Feb. 4 filed 3,000,000 shares of common stock
(par 33%
cents). Price—$1 per share. Proceeds—To repay loans
and advances; for capital acquisitions; and for
expendi¬
tures and working capital.
Underwriters—Joseph McManus & Co., New York; and A. P. Kibbe &
Co., Salt
Lake

Inc.; Morgan
Stanley & Co.; Union Securities Corp., Equitable Securi¬
(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.
ties Corp. and Drexel & Co.

^American Telephone & Telegraph Co.
Feb.

16

directors

voted

that they authorize
000
be

held

to

recommend

stockholders

a new

April

on

to

issue of not to exceed $650,000,debentures at their annual meeting to

convertible

20.

When

issued, each

City, Utah.

portion to his holdings of stock (probably on the basis
of $100 of debentures for each
eight shares of stock
held). Underwriter—None.

it Atlantic Coast Line RR.
Feb. 7 directors approved a proposal to issue
of a new series of general
mortgage 3%%

$13,474,000
bonds, series

X, due Aug.
in

1, 2002.

Purpose—To

reimburse

Bonds

are

to

be held in

Commission.
pose

It is not proposed to sell
of the series X bonds at this time,

that

these

bonds

will

ever

be

otherwise dis¬

or

is it intended

nor

issued

such,

as

Atlantic Steel Co., Atlanta, Ga. (3/7)
was reported company
plans to issue and sell
200,000 shares of common stock (par $5). Proceeds—
For

capital expenditures.
Atlanta, Ga.
•

Underwriter—Courts

P. O. Box 648, Moab, Utah.
Underwriter—Security Ura¬
nium Service, K. O. V. O. Bldg.,
Provo, Utah.

Fund, Inc., Baltimore, Md.

Jan. 28 filed 500,000 shares of capital stock. Price—At
market.
Proceeds—For investment.
Underwriter—In¬

Simpson, President, announced Glore, Forgan &
Halsey, Stuart & Co. Inc. and Alex. Brown & Sons
been

engaged to
towards

looking

structure and

a

continue

it

and

of

formulate

the

of

its

President, Pierre A. DuVal,

of

DuVal's

Woodland Oil & Gas Co., Inc.

that directors have

plan to offer 153,236 shares of

For

expire

(letter of notification) 299,900 shares of common
(par 10 cents). Price—$1 per share. Proceeds—

equipment, drilling expenses and working capital.
Broadway, New York, N. Y. Underwriter—
Co., Inc., same address.

Office—42

E. M. North

it Woodley-Garson, Inc., Salt Lake City, Utah
7 (letter oi notification) 4,960,240 shares of com¬
stock (par five cents) to be offered in
exchange
for oil and gas leases. Proceeds—None. Underwriters—
Wallace H. Gardner,
Spanish Fork, Utah; Frank B.
Matheson, 1446 E. 9th Street, South Salt Lake City,
Utah; and Charles S. Woodward, 1028 S. 10th Street
East, Salt Lake City, Utah.
World Uranium Mining Corp.
July 21 (letter of notification) 9,996,000 shares of
mon

stock

share.

one

cent).

Price

—

Three

cents

pel

Proceeds—For exploration and development

penses.

Utah.

(par

com¬

Office—323

Newhouse

bldg.,

Salt

Lake

ex¬

City,

Underwriter—P. G. Christopulos & Co., same city.

Wynn Pharmacal Corp.
23 (letter of notification) 85,000 shares of class B
common
stock (par 10 cents).
Price—$2.50 per share.
Dec.

Proceeds

—

For

production,

development

and

sale

of

company's products, working capital and other corpo¬
purposes.
Office—5119 West Stiles St., Philadel¬
phia, Pa. Underwriter—Charles A. Taggart & Co., same
rate

city.

,

„

.

.

;

on

shares for each five

March 30.

shares

on

approved
(par $2)
the basis

held; rights to

Underwriter—To be named later.

company plans to offer pub¬
licly 50,000 shares of convertible preferred stock (par
Registration—Expected late in February. Under¬
writer—Fulton, Reid & Co., Cleveland, Ohio.

$20).

Central Maine

Power Co.

Dec.

31, W. F. Wyman, President, stated that company
plans to issue and sell some additional common stock,
$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, Peabody & Co. (jointly).

Chicago & Eastern Illinois RR.

Feb.

mon

new

common stock

Catalin Corp. of America
Feb. 2 it was reported that

par

Dec. 21

stock

a

plans

railroad's debt

(3/16)

announced

was

studies

simplification

a

Co,
have

reduction in over-all interest costs.

Bishop Oil Co.

Managers Inc., New York, which is under the di¬

Consensus Inc.

Co,

Baltimore & Ohio RR.

of two

(par five cents). Price—20 cents per share. Pro¬
ceeds—For mining expenses.
Office—M. L. C. Bldg.,

&

Feb. 10 company received ICC
exemption from competi¬
tive bidding of up to
$345,000,000 of new securities. Pro¬
ceeds—For refunding. Underwriter—Feb. 16, Howard E.

stock

rection

except

possibly in pledge.

to common stockholders of record March 14

come

Under¬

company's treas¬

subject to further order of the Interstate Commerce

ury

Jan. 31

Income

treasury,

part, for capital expenditures already made.

Winfield Mining Co., Moab, Utah.
Jan. 20 (letter of notification) 500,000 shares of common

Woman's

stockholder

would receive rights to purchase the debentures in
pro¬

Jan. 24 it

IVestport Properties Corp., Kansas City, Mo.

Jan.

repay bank loans and for construction program.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.

writer—None.

Inn, Fort Worth, Texas
200,000 shares of capital stock (no par).
per share.
Proceeds—Together with other

31

working capital.

Jan. 31 filed 70,000 shares of common stock
which 8,538 shares are to be offered

tal

-

I

Cranmer

private sales of

by amendment. Pro¬
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union

7

(letter of notification) 1,188,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining expenses. Office—701 Ernest and

and

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

writer—James E. Reed Co., same city.

money

Co.

&

York.

—

prepay $10,000,000
$5,000,000 of 3.70% purchase

stock

$55,000,000 first mortgage bonds to be used
Weld

Proceeds—To

Price—To be supplied by

Proceeds—From sale of units and 1,125,000

stock

and

common

Willis E. Burnside &
Co., New York.

5

notes

of

(par five cents). Price—30 cents per share. Pro¬
general corporate purposes.
Underwriter—

ceeds—For

mon

ment.

it Zapata Off-Shore Co.,

Feb.

per

Wenga Copper Mines, Inc., N. Y.
Nov. 18
(Regulation "D") 900,000 shares

Uintah

1975

expenses.

Underwriter—James E. Reed Co., Salt Lake
City, Utah.

Canada

share. Proceeds—For gen¬
eral corporate purposes.
Underwriter—James Anthony
Securities Corp., New York.

Oct.

(3/2)
$60,000,000 of convertible debentures due
(subordinate). Price—To be supplied by amend¬

Ltd., Toronto,

stock (par 1 cent).
Price—Three cents per share.
Proceeds—For exploration and development

mon

—To

Ucolo Uranium Co., Salt Lake City, Utah
Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock (par one
cent). Price — 10 cents per share.
Proceeds—For exploration and development costs. Of¬
fice—906 Walker Bank Bldg., Salt Lake City, Utah. Un¬
derwriter—Western Securities Corp., the same city.

10

Pro¬

mining operations. Ad¬
Wallace, Idaho. Underwriter—AlWallace Brokerage Co., Samuels

Wyoming Uranium Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 9,166,667 shares of com¬

Dec. 30 (regulation "D")
300,000 shares of common stock

(par 10 cents).

Corp.
Oct. 1 (letter of notification) 2,990,000 shares of com¬
mon
stock.
Price—At par (10 cents per share). Pro¬
ceeds—For exploration and development costs.
Office
—358 S. 3rd St. East, Salt Lake
City, Utah. Underwriter
—Western Securities Corp., same city.

Feb.

com¬

ceeds—For expenses incident to
dress—P. O. Box 289,

Jan. 5 (letter of notification) 4,000,000 shares of common

Office—94

17

Vulcan-Uranium Mines, Inc., Wallace, Idaho
(letter of notification) 1,500,000 shares of
mon stock.
Price—At par (five cents per share).

mon

Proceeds

Uranium

Corp., Ely, Nev.
(letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For mining expenses.
Office—280 Aultman
St., Ely, Nev. Underwriter—Bristol Securities Co., Fall
River, Mass.

Jan.

city.

stock

city.

same

,

b

For mining expenses. Office—2507 South State St., Salt
Lake City, Utah. Underwriter—Melvin G. Flegal & Co.,
same

Securities,

53

Jan. 25

the'eompany'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
$40) was 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.
for the

Chicago, Rock Island & Pacific RR.
11, J. D. Farrington, President, announced that the

Jan.

directors have authorized the issue and sale of not more
than $65,000,000 of 40-year income debentures. Proceeds
—-To redeem its
000

shares).

outstanding preferred stock (about 620,by competitive bidding,

Underwriters—If

bidders may include: Halsey, Stuart & Co. Inc.;
Morgan

Stanley & Co.; Lehman Brothers, Lazard Freres & Co.
Bear, Stearns & Co. (jointly). Exemption from the
competitive bidding rule was asked on Jan. 20. If all
and

holders
common
no

of

preferred

stock

on

a

stock

convert

their

shares

into

share-for-share basis there will be

debenture sale.

Continued

on

page

54

54

The Commercial and Financial Chronicle

(854)

Continued

from

Commonwealth

&

Co., Incorporated, New York, and Coffin & Burr,
Inc., Boston, Mass. He also stated that the company has
not given up the idea of refunding the $17,000,000 5V8%
first mortgage
and collateral trust oonds due 1978.
Probable bidders for new bonds may include Halsey,
Stuart &.Co. Ipc.; Kidder, Peabody & Co.; W. C. Langley
& Co.; Coffin
& Burr, Inc.; The First Boston Corp.;
Merrill Lynch, Pierce, Fender & Beane; Biyth & Co.,
Inc.; Glore, Forgan & Co.

53

page

Edison Co.

\

,

Jan. 24, Willis
Fall before the

Gale, Chairman, announced it should be
company undertakes its next financing.
Proceeds—For new construction, which, it is estimated,
will cost about $125,000,0000 in 1955.
Underwriters—
For last equity financing were The First Boston Corp.
and Glore, Forgan & Co.
Edison Co.

Detroit

stockholders

announced

Jan.

21

it

vote

on

authorizing about $60,000,000 of convertible de¬

was

Previous offer of

bentures.

on

May

convertible debentures

made to stockholders without

was

underwriting.

Jan.

it

31

reported

Probable

company

asked ICC for authority to issue $40,288,200 of 5% income debentures due Jan. 1, 2020, which
to be offered in exchange for 402,882 shares of out¬
standing series A preferred stock on basis of $100 of
are

debentures

for each share of stock.

Flo-Mix

Fertilizers

Corp., Houma, La.
reported company plans early registration
585,000 shares of common stock. Price—Expected at
$5 per share. Business—Distributes fertilizers and me¬
Feb. 7 it

Missouri

be

March

Public

12

Missouri

Research

chanical applicators for their use. Underwriter—Charles
W. Tschirn, Delta Bldg., New Orleans, La.
General

Acceptance Corp. (3/15-16)
10, Charles G. Stradella, President, announced that
the corporation has under consideration a public offer¬
ing of around $250,000,000 debentures.
Proceeds—For
working capital to finance installment sales of
trucks and

other

ley &

New

Co.,

and

cars

products.

Underwriter—Morgan Stan¬
Offering—Expected about mid-

York.

Georgia Power Co.
it

retire

bank

loans

and

for

construction

pro¬

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Lehman Brothers; Union Securi¬
ties
Corp. and Equitable; Securities Corp.
(jointly);
gram.

Morgan Stanley & Co.; Kuhn, Loeb & Co.; Shields & Co.
and Salomon Bros. & Hutzler
(jointly); 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 10. Registration—Scheduled for April 13.
•

Giddings & Lewis Machine Tool Co.

Feb.

15,

the

increase

the

stockholders

approved

proposal

to

authorized

common
stock
(par $2) from
shares outstanding) to 750,000
shares, in order to have additional shares which would

400,000

shares

(360,000

be

available for acquisition of any
business, increased
working capital, plant expansion or exchange of shares
in other companies.

Underwriter — Previous financing
handled by Hornblower & Weeks and associates.
Gulf Cities Gas

Jan.

Corp.
Alberty, Executive Vice-President, an¬
that the company will have another stock issue

17,

D.

nounced

L.

Feb.

8

vote

on

Hanover
Jan. 12 it
on

Fire

authorizing

latter

part

capital

of

stock

Insurance

Co.

announced stockholders will vote March 7

was

offering to stockholders during the
March of 100,000 additional shares of
an

expand
fields. Underwriters—The First Boston
Corp. and R. W.
Pressprich & Co., both of New York.
•

Harris-Seybold Co., Cleveland, Ohio
4

vote

on

of

announced

was

proposal

a

Co.,
to

McKeesport,
stockholders

Feb.

it

was

announced

authorizing
stock

common

a

stockholders

on

(3/8)
March 4 will

will

New York and

Feb.

1

it

was

Underwriter—Kidder, Peabody & Co.,
McDonald & Co., Cleveland, Ohio.

announced

150,000 shares of

that

company

common

stock.

plans to

issue

Price—$2

share.

Proceeds—For exploration and development
penses. Underwriters—James Anthony Securities
New

York;

and Ned J.

Illinois

Lawrence
Bowman

A.

Hays

Co.,

Rochester,

per

Corp.,
N. Y.;

Co., Salt Lake City, Utah.

Central

was

Keystone Wholesale Hardware Co., Atlanta, Ga.

Jan. 27 it
date to

stated that the company
offer additional shares for sale
was

plans at a later
nationally. An

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.

* Kin-Ark
Feb.

Oil

of

Orleans
it

Public

Service

announced

was

that

Dec.

it

17

stock

To

Penn
was

(par $5)

be

Gas

Proceeds—To

Indiana

Public

The Post

common

Price—

Publishing

Co.

Jan.

12, D. H. Mitchell, President, announced that the
company plans
to raise approximately $12,000,000 of
new
money (which may be done through sale of pre¬
ferred and/or common stock).
Underwriters—Probably
Central Republic Co. (Inc.), Blyth & Co., Inc.; and
Merrill

Lynch, Pierce, Fenner & Beane.

Feb.
in

7

it

was

Plastics,

reported company plans to issue and sell

future 17,500 shares of common
stock, plus 8,316
shares reserved for conversion of
outstanding debentures

9

York.

Registration—Expected in
ing—May be late in March.
★ Maine Central RR.
Feb. 14, E.
Spencer Miller,

about

10 days.

Offer¬




3

it

reported

this

were

sold in 1952

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

through Blair

Lynch,

Pierce,

Fenner & Beane and Uniof
(jointly); W. C. Langley & Co.; Harri¬
Ripley & Co. Inc. Offering—Expected in April o:
May, 1955.
Securities Corp.

•*

Storer
>

Broadcasting Co.

Feb. 7 it

was announced company plans to
publicly offe;
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.

Texas Eastern Transmission
Jan.

12,

and

sell

it

this

Co.

that

Corp.

company

$20,000,000

year

$15,000,000 of
&

reported

was

of

plans

preferred

issu^

to

stock

anq

stock. Underwriter—Dillon, Reac

common

Inc., New York.

Transcontinental
Nov.

Tom

24

Gas Pipe Line Corp.
Walker, President, announced that thf

P.

construction program for

in

either

1954

$85,000,000.

March

preferred stock.

1955 and replacement of bank
wil require financing during

It is planned to offer publiclj

or
April $10,000,000 to $12,000,000 of
About $60,000,000 of bonds wil be sole

later this year

(may be done privately). Underwriter—j
White, Weld & Co. and Stone & Webster Securities Corp
Trav-Ler

Jan.

it

27

Radio

Corp

t

(3/8-9)

was

reported company is understood to be
planning the issue and sale of about $1,500,000 deben¬
tures (with warrants).
Underwriter—Straus, Blosser &

McDowell, Chicago, 111.

\

,

Van Norman Co.

Jan. 27 it

was

•

announced company plans to offer

10-year

a

common

warrant to buy an

stock

on

a

additional share

period.

Underwriter—Paine, Webber,
Offering—Expected before April 1.

& Curtis.

West Texas Utilities Co.
Jan.
5
it
was
reported company

plans

the

to its

l-for-3
over

a

Jackson
'.

sale

/

of

$7,000,000 30-year first mortgage bonds (probably int
May, 1955). Proceeds—To retire bank loans and for
construction. Underwriter—To be determined
by(
competitive bidding. Probable bidders; Halsey, Stuart &
Co.

Inc.; Blyth & Co., Inc. and Salomon Bros. & Hutzler;
Lynch, Pierce, Fenner & Beane; Equitable Se¬
Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co.

Merrill

curities

and Lehman Brothers

Smith, Barney & Co.

(jointly); Kidder, Peabody & Co.;

The First Boston Corp.
•

Pacific

Northwest Pipe Line

Corp.

Feb.

11, Federal Power Commission approved the com¬
pany's plan to offer publicly $17,220,000 of 6% interim

notes due

May 1, 1956 (convertible into preferred stock
at maturity) and 287,000 shares of common stock
(par $1)
in units of $60 principal amount of notes and one
share
of stock.

Price—$70 per unit. Proceeds—Together with
funds, to finance construction of a 1,400-mile
gas
pipe line between Ingancio, Colo., and
Sumas, Wash., on the Canadian border.
In addition,
I,549, 100 shares of common stock would be offered for
subscription by present stockholders who already own
other

natural

700,000 shares. Underwriter—White, Weld & Co.; Kid¬
der, Peabody & Co.; Dominion Securities Corp.; Union
Securities Corp. Registration—Expected late in
February
or early in March.
American

Feb. 3 it

Sulphur Co.

reported company is considering offer late
$4,500,000 subordinated convertible deben¬
tures (first to stockholders).
Underwriter—Kuhn, Loeb

:n

March

&

Co.

was

of

and

Carl

M.

Loeb, Rhoades & Co., both of New

People's Finance Corp.,

President, said consideration

Electric Co.

new

(Kingdom of)

was

York.

Is being given to the issuance of
enough bonds to per¬
mit calling of the
outstanding $1,500,000 5% first divi¬

bonds, which

Underwriters

—May be Irving J. Rice & Co., St. Paul, Minn.; and M.
H. Bishop & Co., Minneapolis, Minn.

Norway

I

^

man

basis, plus

Inc.

near

Feb.

(3/8-15)

company

stockholders 124,667 shares of
Northwest

Co.

I

-v

,

Power

reported

was

1955 of about

Underwriter—East¬

Service

Beai

-uxoo £q pauiimajap aq
oj,—sjajuAuapufl 'uie.igo.zd uof
petitive bididng. Probable bidders: White, Weld & Co
and Kidder, Peabody & Co. (jointly); Lehman Brothers

•

Northern

Inc.,

Co.

borrowings made in

announced 420,000 shares of
will soon be offered to public.

later.

named

it

17

Merrill

Co.

Co., publisher of The Boston Post.
man, Dillon & Co., New York.

Co.,

Co.

is planning to issusell $6,000,000 of cumulative preferred stock
(pa
$100). Proceeds—To prepay bank loans and for construe!

Inc.

proximately $200,000,000. Underwriter—For and bonds,
to
be
determined
by competitive, bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
North

&

&

and

company

capital money to aid in carrying out its expan¬
and
improvement program which will cost ap¬

Pan

it was reported
company plans to issue and
500,000 shares of common stock. Price—$2.75 per
share.
Underwriter—Van Alstyne, Noel & Co., New

Jan.

from

new

sion

Co.

sell

sional lien

12

limit

Telephone Co.
Jan. 17, Keith S. McHugh, President, announced that
the company will have to raise more than $100,000,000

ex¬

Telephone Co.
reported company plans to sell in Illinois
only, 15,000 shares of 5^2% cumulative preferred stock
(par $50).
Underwriter—Central Republic Co. (Inc.).
Chicago, 111.
Jan. 26 it

April

New York

public offering of 125,000 shares
Proceeds—For expansion and

it Horseshoe Rend Uranium, Inc.
and sell

on

plans this year
to issue some first mortgage bonds due 1985.iv Under¬
writer—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld &
Co.; Blair & Co. Incorporated; The First Boston Corp.;
Equitable Securities Corp. and Union Securities Corp.
(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Kidder, Peabody & Co. and-Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.

(par $1).

working capital.

Nevada

Southwestern Gas &

financing in 1942.

4

Blyth

Witter

Pa.

increase the authorized

which may soon be called for redemption.

Feb.

Dean

Nov. 12 it was announced company plans to issue 75,00
shares of convertible preferred stock (par $30).
Un'derj
writers—Hornblower & Weeks, William R. Staats & Cc

$3,000,000 to $20,000,000. Proceeds—
For expansion program. Underwriter — Merrill
Lynch,
Pierce, Fenner & Beane, New York, handled preferred

four shares held.

To

C.)

the

basis of one new share for each
Price—To be named later. Proceeds—
activities in the casualty and multiple line
on

it

(G.

indebtedness

in

the near future.
Proceeds—For expansion.
Under¬
writer—Eisele & King, Libaire, Stout & Co., New
York,
handled previous financing.

(jointly);

and

and First California

^ Murphy

of

a

Co.

Southern

developments and working capital. Un¬

new

&

Not expected until Oct. 12.

"Wv

derwriter—P. W. Brooks & Co., Inc., New York.

New

plans to issue and
sell $12,000,000 of first mortgage bonds due 1985. Pro¬
company

Co.

was

ceeds—For

(5/10)

announced

was

ceeds—To

^

of

determined

be

(jointly); Unio
Securities Corp. and Equitable Securities Corp.
(jointly)
Lehman Brothers; Morgan Stanley &
Co.; Kidder, Pea
body & Co., and Merrill Lynch, Pierce, Fenner & Beant
Bids—Tentatively scheduled for Nov. 9. Registration-

reported company plans to issue and sell*
$300,000 of 6% debentures due 1970. Price—At par. Pro¬

stock

March.

30

^

-

&

Stearns

Motors

Feb.

Dec.

Laboratories* Inc.

stock

subsidiary companie:
by competitive bid
ding. Probable bidders: The First Boston Corp., Laden
burg, Thalman & Co., Carl M. Loeb, Rhoades & Co. an

on

of

Jan. 26 it

company plans to issue an
public 500,000 additional shares of commo
(par $5). Proceeds—To repay bank loans and fo

investment in additional

reported company stockholders will vote

was

(11/9)

announced

was

Underwriter—To

increasing common stock from 530,000
shares to 2,000,000 shares to provide for a 3-for-l splitup,
and additional stock for future issuance. Under¬
writer—May be Kidder, Peabody & Cov£New York.

was

Co.

inc.

the

to

stock

Co.

Service

it

30

Wertheim

'Feb. 14 it

Oklahoma

Harriman

Co.

Republic

Southern

sell

RR.

Erie

of

Ripley & Co. Inc. an
(jointly); Smith, Barney <
Co.; Kuhn, Loeb & Co.; Glore. Forgan & Co. OfferingExpected in April or May, 1955.

and Alex. Brown & Sons.
Jan. 28 company

bidders:

Dec.

may

Co.

was

Central

planning to
issue and sell from $12,000,000 to $15,000,000 senior secu¬
rities in 1955. Underwriters—Probably Blyth & Co., Inc.
was

Service

Thursday, February 17, 195

reported that company plans to issue an
sell 100,000 shares of new preferred stock
(par $100
Underwriter—To be determined by competitive
biddinj

Minnesota & Ontario Paper Co.

will

2

Public

Nov. 11 it

...

Jan. 31 it

Jan. 12 it
will

vote

Supply Co.

(Mo.)

announced that stockholders

was
on

approving

on

March 15

proposal to create an issue of
preferred stock and $5,000,000 of
bonded debt, and on
increasing the authorized common
stock from
1,335,000 shares to 2,500,000 shares.
The
company may raise about $10,000,000
through the sale
100,000

of

shares

$5,000,000

finance

the

a

of

preferred
purchase

Gamble-Skogmo,

Inc.

stock
of

and

140

$5,000,000

retail

Underwriter

stores
—

Pierce Fenner & Beane, New York.

Western Light & Telephone
Co.,
Nov. 24 it was announced

bonds
owned

Merrill

to

by

Lynch,

Inc.

company plans to issue and
$3,000,000 fir^t mortgage bonds due 1985 and about
40,000 additional shares of common stock (the latter to
sell

stockholders
struction
&

Co.

may

on

a

program.

and

l-for-10

basis).

Proceeds—For

con¬

Underwriters—May be Dean Witter

The First

be sold publicly

Trust Co.
or

of Lincoln, Neb.
Bonds
privately, depending on market

conditions.

Westpan
Dec.

11

it

Hydrocarbon Co.

(4/15)

was

reported Sinclair Oil Corp. will ask for
Westpan stock about April 15,
1955, if it has not been able to dispose of these holdings

bids for 384,861 shares of

Denver, Colo.

reported company plans to issue and sell
convertible preferred stock. Pro¬
ceeds—For expansion. Underwriter—Paul C. Kimball &
was

about $500,000 of 6%

Co., Chicago, 111.

Western Auto

Offering—Expected in April.

before

that date. Underwriter—Union Securities
Corp.,
New York, underwrote recent sale of
Sinclair's holdings
of Colorado Interstate Gas Co.

York,

may

White, Weld & Co., New
be included among the bidders.

Volume 181

Number 5404...The Commercial and Financial Chronicle

\

Associates Investment
Notes Sold
Salomon

Bros.

negotiated
at

par

promissory
1970

and

Aside from the General Motors

Corp. stock offering in which vir¬
tually the entire investment bank¬
ing fraternity is participating, un¬
derwriters

the

at

moment

have

little to keep them busy but they
are

notes

notes

Associates

; Just

now,

observer puts

one

as

,

eral

Motors

complex."

Gen¬

a

due

Feb.

15,

3%%

due

Oct.

sub¬

1,

Investment

1968,

Co.

the^ompany initially to reduce its
short-term
borrowings, and for
the
financing of its anticipated

380,683
will

General

on

share

find

project

than

themselves

they

engaged

marketing another large issue
der much the

General

in
un¬

banner.

same

Motors

are

publicly

shares of

opment

debentures

which #nay

run

to

2,000,000
(par one

stock

The net proceeds
to

to be used

are

for exploration and devel¬

pay

and

acquisition

of

addi¬

tional properties.
ated

in

mobiles.

1954.

It

Since it has not yet reached the
stage where it is ready to put the

prospective issue into registration

business in the State of Colorado.
The business of the
company is
the exploration, development and

with the

operation

'

Securities and

Commission, chances
along
this

toward

Exchange

are

it will be

mid-March

prospect

reaches

before

market.

corporation

the

to

the

fering
close

writers

7,

4,226.48

the

Utah.

By

are

get some¬

a

bit

Week's

Calendar

of speeding things up a
the corporate
issue field

way

in

bankers

nity

will

next

have

week

moderate-sized

the

public

for

two

utility of¬

ferings.
On

acres

is

1995.

The group bid

combination

a

Wednesday the Texas Elec¬

of

leases
in

now

to

in

Colorado

River

Mining
Grand County.

District

in

1990

to

Rochester

day

has

LOS

Issues

Gas

$10,000,000

when put up

such to
March

The
to

get

with

month

two

readied

apparently
the

be

Holds

away

a

cur¬

will

in

first

&

Electric

Co.

March 2 will consider bids for
issue

of

$50,000,000

of

construction

finance

curities

offices

at

1255

add

Avenue

to

conduct

business

&

Bank

and

to

Com¬

of Chicago; The Philadelphia
Bank; Blair & Co. In¬
corporated; Equitable Securities

Corporation; Baker, Watts & Co.;
Bros. &

Boyce; W. E. Hut-

&

Co.; Francis I. duPont &
Co.; Roosevelt & Cross Incorpor¬

joined

Grant

Seventeenth

Oscar Stein

DIVIDEND

J.

for

other corporate purposes.

dividual
8681

encountered

dealer

offices

at

I.

Case

dividend of

$1.75 per

share
uns

1,

neferreu acuctc oi
declared payable April

record

1955.

the. close

at

No

BAY

Board- of

$50.00

Dallas Power & Light Co.'s $7,-

000,000 of 25-year bonds, brought
out at a price of 102.15 to yield
3.125%
were
reported
about
a
third sold after the first two days.

City Power &

Light Co.'s $16,000,000 of 30-year

do

to

bonds,

offered

at

yield 3.12% appeared to

better.

This

two-thirds sold

issue
and

was

about

still moving.




WESTERN

&

Directors

RAILROAD

fixed

has

and

the

at

close

e. f.

Secretary.

23,

The

1955.

dividend

the

on

stcck

will

be

REYNOLDS

paid

to stockholders of record at the close of
February 11, 1955.
W.
W. COX, Secretary.
New York, New York, January 31, 1955
business

METALS
COMPANY
Reynolds Metals Building
Richmond 19, Virginia

DREWRYS

of

1955

A

the out¬

upon

w^mpauy

quarterly

dividend of forty (40)
share for the first quarter of

cents per

».as

1955

holders
March
12,
to

business

has

been

declared

the

on

com¬

stock, payable March 10, 1955 to

mon

B.

action

was

PETERS,

(25C)

taken

on

stock

April

payable
of

record

March

closed.

on

February 25, 1955. '

twenty-five
has

of

close

business

1955.
be
by

will not
be mailed

books

will

Checks

Bank of

cents

the outstanding
been declared

1955, to holders

1,
the

at

21,

transfer

stockholders of record at the close of

the

of

share on

a

The

Secretary-Treasurer.

DIVIDEND

COMMON
dividend

A

business

dividend

business February

vanderstucken, jr.,

to

common

1955,

of

24, 1955.

declared

the

$5.00

CORPORATION

Manhattan Company.

the

ALLYN DILLARD, Secretary

Dated, February 9, 1955

NORFOLK SOUTHERN
RAILWAY COMPANY

iTizmcESaSEertE
Dividend

WAGNER BAKING

The Board of Directors of Nor¬

CORPORATION

folk

The

dividend

quarterly
share

have declared

.

L.

the
to

Milwaukee,

sixty

mon

(without

stock

Corporation,

able

payable
of

REGNER,

record

Railway Company
dividend of thirty

a

share

per

the

on

com¬

stock of said Company, pay¬
March 15, 1955, to

on

holders of record

at

stock¬

the close of

Board of Directors

The

has

1955.

the

declared

quarterly
$1.75

per

regular

dividend
of
share on the

7% Preferred Stock pay¬
able

I,

April

stockholders

business March 1,

Secretary-Treasurer.

March

J.Raymond Pritchard,President

Wis.

February 15,

(30(0

cents

(GOc)

cents

stockholders

a

1955.

25,
G.

declared

has

capital

of
1955,

15,

February

Opens

of

the

on

value)

par

Directors

of

Board

Southern

1955,

of

record

to

18, 1955.

J.

V.

STEVENS,

Secretary.

1955

Street.

*

Reopens

from

AMERICAN

offices

Boulevard.

with

A. L. Tuma

■■

Public Service Electric
and Gas

Gfanamld

at

He

has

Investors

Company
Common and

NEWARK. N. J.

Preferred Stock Dividends

COMPANY

PREFERRED

Opens

gg[r

\ f \3

The Board of Di rectors of Safe¬

has

Calif. —A.

gage in

Stores, Incorporated,

Laurence

opened offices

at

4612
en¬

Cyanamid
Company
today
a
quarterly dividend of
eighty-seven
and one-half
cents
(87J/2<t) per share on the outstand¬
ing shares of the Company's 3V2 %
B,

and

JUNCTION,

connected

with

Tellier

1955,

of

to the holders

of

is
&

per

shares

the

March

now

Co.

record at
3,

the

of such

close

of

ican

(Special

SAN

to

The

Financial

Cyanamid
Company
today
declared
a
quarterly dividend of
fifty cents (50o per share on the

outstanding

Chronicle)

mon

JOSE,

Calif.—William

N.

Wentworth has became connected
with

San

Inc., 476
formerly
sociates.

Jose

Investment

Park Avenue. He
with Mutual Fund

Stock

shares
of

able March 25,
of

such

stock

share

on

the

a

share

on

share

on

the

the 4.18% Cu¬

Stock, 35 cents

$1.40

Dividend

record

at

a

have been declared for the quarter

on

or

1955, all

pay¬

before March 31, 1955

to holders of record at

the close of

business

1955.

on

March 1,

$1.00 per share

on the
4% Preferred Stock.

$1.071/2

Per

share

on

Common Stock dividends and

dividends

Secretary

the

PVBLIC SERVICE
CROSSROADS

OF

THE

EAST

on

the 4% Preferred

Stock and 4.30% Convertible
Preferred

Stock

April 1, 1955
of record
ness

F. Milton Ludlow

1955.

New York, February 15, 1955.

the

share ontheCommonStock,

cents

was

As¬

on

Stock.

the 4.30% Convert¬

1955, to the holders
of

mon

ible Preferred Stock.

of the Com¬
the Company, pay¬

r. s. kyle, Secretary

60tf per share

$5.00 par value Com¬

Preference Common Stock, and 40

•

close of business March 3,

Co.,

a

able

DIVIDEND

The Board of Directors of Amer¬

With San Jose Inv. Co.

$1.04,/a

mulative Preferred

ending March 31,

COMMON

a

4.08% Cumulative Preferred Stock,

stock

business

1955.

of

Jersey City, N. J.

Dividends of $1.02

Com¬

pany's 3%% Cumulative Preferred
Stock, Series C, payable April 1,

Colo.—

Bannerman

Series

dividend of
three-quarter
share on the

and

(93%(0

outstanding

(Special to The Financial Chronicle)

S.

Stock,

quarterly

a

ninety-three

With Tellier & Co.

DIVIDENDS

QUARTERLY

declared

Cumulative Preferred

on

1955, declared the

following quarterly dividends:

ican

Boulevard, to
securities business.

a

DIVIDEND

The Board of Directors of Amer¬

(Special to The Financial Chronicle)

Edward

mortgage

shares of the Company's capital stock out¬
standing and entitled to receive dividends,
payable March 15, 1955, to stockholders of

NOTICES

Feb. 8,

GRAND

side.

102.52

The Board of Directors has declared a divi¬
dend of 50 cents per share on the 10,020,000

amount
payable
on
Class
"A"
(Payment No. 59). and a dividend
be payable on the capital stock,
out of net earnings for the year 1954, payable
at
Room
No.
3400, No.
20
Exchange Place,
New York 5, New York, on and after February
of

Stock.

cents

first

TEXAS GULF SULPHUR COMPANY

Debentures

Company

been

per

mixed

reception, what with one issue re¬
portedly moving out well while a
second was a bit on the laggard

Meantime Kansas

445

record
GREEN

DIVIDEND

North Van Ness

offerings

somewhat

Hamilton

way

FRESNO,

Reception

a

of

Corporation,

Street.

HILLS,

Wilshire

Tuma

week's

Vice Pres. & Treasurer

NOTICES

standing

Calif.—Os¬
Stein is again acting as an in¬

provide funds for
retirement of the $3.75 preferred

Mixed

the staff

DIVIDEND

The

<

;

outstanding. Common \

Chronicle)

ated; Laidlaw & Co.; Andrews &

Common

per

Stock of the Company, payable on
31,
1955, to stockholders of recthe close of business on March 15,

(Special to The Financial Chronicle)

financing will

current

Financial

Management

ible subordinated debentures. This

The

The

COMPANY

Trust

pany

of

25c

•

j
i

1955. Checks will be mailed.

TBricgs&Stratton)

from

route, will be marketing an issue
recently
been
of $60,000,000 of 20-year convert¬
Realty Fund..

needs

at

the

on

of

rities business from offices at 801

car

cover

March
ord

dividend

DENVER, Colo.—Robert J. Nash

offering

McCarry Opens

BEVERLY

will

share

&

a

(Special to The Financial Chronicle)

to

same

and

Coombs

Angeles, Inc., 602 West

West

SANTA

to

day, Union Oil Co. of
California via the negotiated

stock

Calif.—Knee-

with

quarterly

a

BRICCS & STRATTON

12300 West Pico Boulevard.

an

working funds.
The

February 16, 1955
Artt

on

bonds

and

NOTICES

The Board of Directors has declared j

JEANNERET,
Secretary and Treasurer^

ANGELES, Calif. —How¬
McCarry is conducting a se¬

West
Gas

DIVIDEND

LOEW'S INCORPORATED

Street.

(Special

has
the

National

A

and

Ferrell,

With Hamilton Managem't

Company;
The
Northern
Trust
Company;
Chemical
Corn
Ex¬
change Bank; Continental Illinois

ton

York

Exchanges.

—

become

T. E.

ANA, Calif.—Kenneth
being L. Provost1 is engaging in a secu¬

the

New

CHARLES C.M0SK0WITZ

LOS

promises

week.

Pacific

Co. of Los

Sixth

Atkinson-Kays Com¬

Howard

ard

the

ANGELES, Calif.—J. War¬

K. L. Provost

offerings

&

Common

Promise

good start what

Colo.

has

Mercantile-Safe Deposit and Trust

Stein

Emanuel

re-

group include: Halsey, Stuart
Co. Inc.; Kidder, Peabody &

March

market

being

Chronicle)

and

San Francisco Stock

Drewrys Limited U. S. A.f Inc.

case.

March

of

to

large

for

usually
competition

for sale, and the

occasion

rent

find

not

are

Fuller is

&

of

are

keen

of

Augustin

ANGELES,

land E.

Atkinson-Kays Co.

with

pany

Hines

to

$1,584,000
bonds, due

members of

(Special to The Financial Chronicle)

size

this

of

center

1.25%

of

1/10%

1995,

Other

Kays and Irene Atkinson Kays

ren

bonds up for bids.

the

from

balance

and

WM.

(Special to The Financial Chronicle)

$17,000,000 of

bonds and the

H.

South Bend, Indiana

Form

Financial

Main Street.

LOS

offered.

lo¬

are

Leroy

(Special to The Financial Chronicle)

and

Miguel and Park
Counties, and those in Utah in the
Green

JUNCTION,

L.

The

members, of

With Coombs & Co.

issue, $8,416,000 of

yield

The

14%

securities business.

Co.

21/2S, 2.60s,
l/10s, representing

interest cost of 2.4191%.

leases

Colorado

San

Manchester

Electric

411V2

5s,

Racine, Wis., February 14,

The

P.

connected with Ferrell

(Incorporated)

tric Service Co. will open bids for

following

GRAND
Jan

to

FRANCISCO, Calif.—

Rapoport are now with J. Barth
&
Co., 404 Montgomery Street,

Inc.

(Special to The Financial Chronicle)

an

100.02 for

Co.

SAN

fc

net

a

Utah.

have formed

new

of

14s and

2.70s,

leases, 3,26-3.48
Colorado, and 960

in
in

under

acres

States

are

cated

opportu¬

bid

to

for

&

55

Two With J. Barth
(Special

Company;

Ferrel! & Ferrell Adds

Of the above

acres

at

tie-up

Next
i

mining

company

the

breathing-spell in which
any loose ends in the
final stages of this record-making
piece of business.
to

The

from

seemingly will

thing of

uranium

that under¬

so

on

exploratory stage.
company holds by assign¬

The

stock

expire

to

March

of

of¬

Motors

due

are

on

Sept. 22,
duly qualified to do

ment

"rights" to subscribe

General

incorpor¬

was

Delaware
is

properties.
in

'

Meantime

to

National

$250,000,000 to provide working
capital for financing sales of auto¬

The

16

&

Co.;

speculation?

a

Hibbs

Baltimore

Metropolitan
District bonds, due March 1, 1958

of

cent) of Green Mountain Uranium
Mines, Inc. at 15 cents per share

ward the flotation of

issue

offering

B.

Maryland,

2.70%.

Jersey Citv. N. J.

common

Feb.

on

$10,000,000

Blair

Craigie & Co.; Scott, Horner
Mason, Inc.; Folger, Nolan-W.

&

5%, 2Mj%, 2.60% and 2.70% bonds
maturing 1958 to 1989, inclusive,
are
being reoffered at prices

Mtn. Uranium Shares
Tellier & Co.,

as

new

bidders

' of

scaled

Acceptance
Corp., has disclosed it is negoti¬
ating with bankers looking to¬
a

issue

Of the total

Tellier Offers Green

4,-

Motors'

cessful

William

F. W.

The National City Bank of New
York and associates were the suc¬

expansion during 1955.

Bankers}

Co.;

Baltimore Go. Bonds

County,

Proceeds from the private place¬
ment of the notes will be used by

scarcely will be finished with the

"standby"

Gity Bank
Syndicate Awarded

have

looking ahead to better days.

it, "the whole market has

of

Hutzler

$12,000,000

ordinated
of

&

Wells, Inc.; King, Quirk & Co.
Incorporated; Robert Winthrop &

Nalional

Privately

the private placement
of
$25,000,000
314%

(855)

at

to

are

payable

Stockholders

the close of busi¬

March 16, 1955.

MILTON L. SELBY,

Secretary

February 8, 1955

!

56

The Commercial and Financial Chronicle...

(856)

Thursday, February 17, 1953

There

BUSINESS BUZZ

lion

veterans,

Was iungton
from the Nation's

Capital

perhaps not beyond the range
of possibility that a good con
artist who happened to get hold
of
the
assets
bequeathed
in
trust to a child could loot the
whole trust whilst keeping the
child
amused with baubles.
One of the fascinating phe¬
nomena
of this Capital of the
in the

States

United

1955

year

wonder with
organized business
•world
is watching a bauble—
the bill to end government com¬
is the starry-eyed

the

which

John

Senator

McClellan

A.

(D., Ark.), the Chairman of the
Senate Government Operations
Committee,
has introduced
a
bill declaring it to be national
policy to eliminate government
from the field of business-type

This bill is similar

operations.

which

to

one

ft

would

last

failed

establish

year,

court

a

of

complaint
in
the
Commerce
Department to hear grievances
who

businessmen

/rom

aver

that
they are suffering
government competition.
This bill

from

realistically exempts

"government-in-

present

any

business" operation approved by
law. Thus it confines the opera¬

to

extend this loan
entitlement into fu¬

the

""it's

empires.

power

Senator

As
a

McClellan

states,

matter of serious business
when

government

agencies make ice

cream, sleep¬

concern

ing bags, fertilizer, helium,
false teeth, maps, lumber, rub¬

paint,

ber,

aluminum,

blue¬

prints, and furniture."
is.

it

So

*

give

Few

people

the Senator

an

would

argument

that one, for they see little
sense in the government making
or

even

or

rope

or

clothespins,

bras for the Waves and

Wacs.
But
-does

government
make

good

in

business

organization

an

Chamber

Commerce

of

the

of

faces

which

McClellan

the

If

of

encroachment

—

roll

hand, organized
apparently totally
grasp what the Eisen¬
wants

—

which is to keep its

52% major¬
ity ownership of the profits of
the

at

time, dipping its hands into the
accumulated savings of the na¬

for

home
school

farmers,

buyers, hospital bonds,
bonds, road bonds, and numer¬
ous other things.
While

government

the

is

earnestly engaged in providing
for all the fancied needs of the

people,

it

is

developing

tech¬

niques for diverting to the use
of government, more and more

for

the

of the pool of the

the

tal without which private busi¬

government hires in its business

enterprises. These people get
high wages. They don't need to
worry about whether the gov¬
ernment "company" is an effi¬
ciently run enterprise or not.
There is no question of meeting
payrolls, for the Congressional
"appropriation takes care of that.
There

hours, nice vaca¬
tions, and sick leave. It's nice
to

be

are easy

removed

petitive

race

from

the

com¬

for life.

For every one thousand

ployees on
enterprise,
two

Federal

a

there

Senators

and

the

or

will

future

to

renew

be

capital,

expand.

Just

as

crooked

a

of

the

.trust
own,

Administration

usually

least

trust

for

"Notice how

Those who dominate the pres-

Colorado Oil & Gas
White Eagle Oil
Olin Oil & Gas

business, and it
be expected that President

may

Eisenhower will demonstrate to

the

100

will

back

bill.

The

President's

order issued by the Budg¬

an

et

which

tion

continuation,

its

for

or

face possible extinction.

the

Administration to

father

present
the

VA

pay

plications

present time the

mem¬

of Governors

System draw
salary of $16,000. This
with a salary of $18,-

several

annual

for

of

President

$17,500

fact

in

taries

stop, and then only if the United
States avoids action
ture
or

UN

Under

Secre¬

Treasury,

and,

wars,

members.

what not.
"cut

The

off"

the War to Make

Safe

1947,

the

BUT,

World

the

Communism

for

Act

(This column is intended to

cut

"first

or

off" for entitlement of veterans
of

two
the

$22,500 for the Secretary of the
Treasury
and
other
Cabinet

in any fu¬

demonstrations,

for
of

July,
provides

was

the

that for 10 years thereafter, the
entitlement to home mortgage

"Chronicle's"

(Special to The Financial

Jan.

Korean

31

vets

"cut

actually

off

Jan.

off"

will

entitlement

Chronicle)

on

UPLAND, Calif. — Willard C.
Connor is engaging in a securities

not

31, 1957.

the

views.)

own

Willard C. Connor Opens

guarantees will remain.
The

re-

fleet the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with

until

business from

offices

at 240

East

Ninth Street.

Eisenhower

the

of

program. So long as organized
business is kept happy over the

the

on

vast

statute

get

books

governmental

new

Harl Marks

enterprises which, once author¬
ized by law, even if for only a
token part of their ultimate an¬
nual costs, inevitably will be
woven into the fabric of huge
in

interests

vested

FOREIGN

TEL:

Co. Inc.

SECURITIES SPECIALISTS

SO BROAD STREET

Treasury

&

•

NEW YORK 4, N. Y.

HANOVER 2-0050

TELETYPE NY 1-971

spending.
!

Then

will

in

the

future

foreclosed

be

business

from

ever

bringing about a release from
confiscatory
taxation
and
greater confiscatory monetary
inflation. For, as you may have
heard
when
some
silly guys
backed
Taft, "you can't turn
back the clock, you know."
It is beside the point that the
bauble will break before night¬

McClellan

bill

We recommend at the market

W. L MAXSON CORPORATION
CAPITAL STOCK
CAPITALIZATION: 330,397 shares Capital Stock

hasn't

This is

Eisenhower's

President

war

off

a

with

or

support.

future

entitlements

men

of

to the benefit

"GI Bill of Rights" law.

Foremost

fits

was

among

for

the

these bene¬
by

insurance

the Veterans Administration

of

home mortgage loans.

Nevertheless, it probably will
as a

real

GROWTH Company (Electronics)

Sales

Net Earnings

per share

$3,229,917

$211,364

$0.81

1951

7,453,985

614,012

2.26

15,923,380

526,494

1.82

1950

1953

Eisenhower, by ter¬
national emergency,

service

a

•Earnings

a

1952

passing

for

minating

L.D.123

major

if it

Continue High

GArfield 1-0225

estab¬

with

keep the attention of or¬
ganized business diverted from
the revolutionary financial im¬

-

Exchange

Federal

can

Vets Loans Will

SOfEUCK, HICHTEH COMPANY

up,

grows

will

loans

cut

Support of the McClellan bill
bauble will be a cheap price for

cut




every

to the bar and make a justifica¬

of the

2, Mo.

make

to

seems

governmental enterprise step up

without

Bought—Sold —- Quoted

St. Louis

Hughes,

Rowland

Director,

prayer

Wagner Electric

SL 456

approval

been foreshadowed

has already

by

the

fall, for the Opposition will say
away" things
belong to the people, and

Sulphur

320 N. 4th St.

McClellan

and

Mallinckrodt Chemical

Member Midwest Stock

associations that

trade

any

that

he is the true friend of business

Texas Eastern Transmission

Teletype

who controls the

he

controls

purse

the

Bed

stockholder's meeting?"

that this is "giving

Hugoton Production

the

aides,
including
his press Secretary, from $17,500 to $25,000 for various U. S.paid representatives on UN and
other world-saving UN agencies,

people are really determined to have

that

Valley Gas

Pan American

that

stand

Anheuser Busch
Miss.

some

ent Administration well under¬

the Federal

understands

of

000

the

enter¬

System was look upon
important and independ¬

arm

Eisenhower's

man

what is important.

one

inequality by put¬
again at $150

compares

an

enacted

might understand
that
it
is
cheap to buy a few articles in
the five-and-dime to keep the
beneficiary of the trust amused
while the trustee is using the
assets

an

At the

McClellan bill bauble, it can

Government Understands

prises of his
em¬

nation's capi¬

business

are

at

in

ness

unable either

in

figure

bers of the Board

same

tion by an apparently harmless
and inexpensive system of loan

guarantees

fiscal

than

Congress will"

of Federal Reserve

govern¬

On the other

whilst

that

the

in

less

ranking
departments.

back

business has

business

loans

million

lishment,

The Hand in The Pocket

Administration

such

Once upon a time the Federal
as

their say at the

hower

in'

vet-'

Reserve

ment.

failed to

to

That Independent FR

business,

of

loans

com¬

biggest danger faced
by business was subsidized com¬
petition
from
the
variegated
business enterprises of govern¬
ment,
a
good
many
people
would applaud organized busi¬
ness for making its most united
effort
in
a
field
to
stop the
the

disbursed

million

million.

ent

even

un¬

Mr. Eisenhower proposed
for

ting

bill.

—

Treasury

correct

the

encroachment

will

have

$500

the current year.

petition has joined in the fray.
This is the current penultimate
ambition of organized

will

1956—$50

as

fight.

government

they

that $100 million be made avail¬
able

So

tens of thousands of hands

sense

enans.

Practically
every
trade association repre¬
senting any kind of a business

on

paint

direct

the United States is at the fore¬

to

comparatively small things
and totally exempts the big
things, such as TVA and all the

ernment

Committee

McClellan bill.

the

and

years,

approximately

100 trade associa¬

distinguished

tion of the proposed legislation

<other

back

to

got

Incidentally, by the end of
this fiscal year the Federal gov¬

Nevertheless, organized busi¬
ness is backing this with all its
a

yet

mortgage
Furthermore, bills are

by prestidigitation.

Organized Business Backs It

might. Some

not

pass, year after year
to the end of Federal
finance

on

pass
last year even
Republicans nominally

tions have formed

,

doubtedly

controlled the Congress.

front

petition with business.
•

when the

buck

thing

The

bill.

McClellan

couldn't

will

who

member

House

the

some

home

loans.

ture

is

C.—It

veterans,

have

guarantee

D.

loan

yet.

million

pending

WASHINGTON,

war

portion

VA

guaranteed

And You

f

as

had

Of the War II
12

Beluaj-the-Scene Interpretations

Korean

small

a

have

guarantees

•

•

•

only

which

of

than 6.8 mil¬

are more

identifiable

matter of practical fact not

happen before the grandson of

34,377,128

1,085,502

3.54

1954

37,143,000

1,496,000

4.53

•On an

Increasing number of shares yearly due to stock dividends

Trading Market for Brokers and Dealers

LERNER & CO.
10 Post Office

Square, Boston, Mass.

Telephone HUbbard 2-1990

Teletype BS-69