Full text of Commercial and Financial Chronicle : February 19, 1953, Vol. 177, No. 5196

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university
michigan

of

ESTABLISHED 1S39

1953

FEB 20

AMUttSTUTlIN
IfflfiUT

Reg. U. S. Pat. Office

New York

Number 5196

Volume 177

EDITORIAL

We See It

As

On

Trade Be Remedied?

unsuccessful

the

Presidency last

Democratic

year,

vincing at least
American

ing

By MELCHIOR PALYI*

must have succeeded in

man

than

strained

a

con¬

to occupy the White House
There

good deal

was a

long list of rather doubtful quips and

play

words to condemn this address.
high office who at times at least
seemed last Fall to be struggling to keep a cam¬
paign above the level of petty politics, popular
prejudices and party pressures, seems now to
have become a vassal to much that is petty and
unworthy in modern politics. He pays his respects
to his former high standards with an incidental
phrase here and there, but they seem to be a "tale
of little meaning," and the words are usually
not even strong.
on

A candidate for

It

to be

was

expected, of

being what they
barred,
seized

are

that

and

—

every

President, Ford Motor Company

Prominent automobile executive,

years

concerns

trade

1830's,

interesting to~

com¬

Palyi

the

estimates.

estimate.

by 1937, the figure

was

$24 billion or below where it stood in 1929, but of course
prices had fallen in the meantime. Physical volume,
therefore, has appreciably risen in spite of the depres¬
sion. In 1948 it was $54 billion, $30 billion more than a
Continued
by Dr. Palyi before
Chicago, Inc., Chicago, 111.

THIS

of people. In our own lifetime, we
fairly sensational developments. Air¬
planes have brought :the towers of
Chicago—including one or two of
the
ivory
variety—within a
few

address

ISSUE—Candid

shots

the

taken

on

36

page

Export Managers

Club

of

numbers

greater
have

seen

hours

some

London

of

Honolulu.

or

The

telephone has brought us even closer

together, and the radio and televi¬
sion

have

made

communications

practically instantaneous.
Then, there is that!other medium
which some people say is even faster
than

Now then,

IN

munication

mean,

-rough

living in an age when faster and faster com¬
is being developed
between greater and

are

(in

At the out¬
break of World War I, $20 billion;
by 1929, a little over $30 billion was
Or. Melchior

We

$1

very

44

PICTURES

be

c.i.f, terms) was estimated at1
billion. By 1900, it was about
$10 billion.
These are, of course,

♦An

V

postwar years rested
True, statistically,

Some 120 years ago, in the
the world's total of exports

pare:

"grab an issue" whether or not one
really existed. One could hardly expect all mem¬
bers of an opposition party to refrain from at¬
tempts to make the worse appear the better
reason, or even from twisting truth in an effort
to make a trap for thoughtless and prejudiced
voters. All this, somehow, appears to be part and
pateel of our way of "playing politics" in this
country. This annual dinner of the Democratic
party, moreover, is a "party affair." There one

DEALERS

should

Says increase in U. S.
to "dollar gap"
need not fear end of

answer

tariff barriers.

physical volume of international
trade is actually greater than it was,
say, in 1937.

to

'page

and

foreign trade is growing; quite ; in
proportion to the rise of prices; even

It

only satisfactory
asserts
U. S. industry

imports is

the

politics
that no holds would be
opportunity would be

on

the

of

two main

our

are,

against imports be eliminated.

American aid.

on

holding

first, to maintain a high level of production
and employment, and, secondly, to strengthen free-world
front against Communist aggression, says these objec¬
tives can be served through expansion of world trade.
Contends free nations cannot exist unless they have
markets in U. S., and urges tariffs and other barriers

We are at a turning point—that is, we might be at a
turning point, having a new regime and something of a
new spirit.
At least there is a recognition of problems.
The basic problem is economic aid abroad. The world's

course—our

Continued

One-Way Street

a

Dr.

Palyi, contending bolstered world trade in recent
is result of U. S. foreign aid, and "we are carry¬
ing international trade on crutches," says basic rule now
of administering foreign aid is to reward weakness and
punish recovery. Sees need of streamlining our foreign
aid procedures, and holds European statesmen are aim¬
ing at a devaluation of the dollar, which would be ruin¬
ous to us.
Calls European unification "a meaningless
concept." Holds Europe is not capable of major rearma¬
ment and European countries cannot restore their sol¬
vency without restoring convertibility of their currencies.

the

of his supporters that the

some

for the next four years.
more

for

people acted wisely after all in select¬

other

some

candidate

Copy

By HENRY FORD, II*

always much publicized Jefferson-Jack¬

Day Dinner last week, Adlai E. Stevenson,

son

a

A Free World Can't Trade

Can Crisis in International
At the

Price 40 Cents

7, N. Y., Thursday, February 19, 1953

instantaneous

occasion. *

on

of course, the press.
Certainly, therefore, this seems

I

an -

appropriate time and place to discuss
some of the problems that face us in
communicating with other people. I
say the place is important because,
startling as it may seem to many

Americans,
one

of the

our

often

called

Henry Ford, I!
-

"isolationist"

Midwest is

great trading areas of the world.
one billion dollars

Illinois alone receives about

a year

from industrial and

agricultural exports and the handlmg
Our Port of Detroit, in Michigan, ranks second

of them.

Continued

on

page

46

♦An address

by Mr. Ford at the Annual Winter Meeting of the
Inland Daily Press Association, Chicago, 111., Feb. 17, 1953.

at the 29th Annual Winter Dinner of

the Boston Securities Traders Ass'n appear in the pictorial section, starting on page

25.

State and

in

U. S. Government,
State and

Municipal

Securities
telephone:

STATE

Pacific Coast &

AND

BOND DEPARTMENT

50 BROAD ST

Dean Witter
14 Wall

Co.

a

THE NATIONAL CITY BANK

Street, New York, N. Y.

Members of

OF NEW YORK

Principal Commodity

and Security Exchanges
San Francisco

Los Angeles

•

•

Chicago

•

Bond

Honolulu

,

ESTABLISHED

New

York

Del Rio

1832

Stock

Stock

American

on

Exchange

Net

•»*

iafc rt

ij

30 Broad St.

TeL DIgby 4-7800

.

New York 4
Tele. NY 1-733

* J?




OP TOE CITY OF NEW YORK

YORK CITY

CANADIAN

Central Maine

BONDS & STOCKS

Power Co.

New York

Market#

Maintained

COMMON
♦

Analysis

To Dealers, Brokers and Banks

Telephone WHitchall 4-6500

DEPARTMENT

Goodbody

Teletype NY 1-1843

ESTABLISHED

Members American Stock Exchange

-

&

Co.

1891

MEMBERS NEW YORK STOCK EXCH.
115 BROADWAY

BRIDGEPORT
-

Ar

PERTH AMBOY
<

I

\

BANK

NATIONAL

Est. 1915-

Producers, Ltd.

CANADIAN

60 Broadway, New York 4, N. Y.

Members yew York Stock Exchange

Ltd.

Electrolux Corp.

Exchange

Request

Hardy & Co.

CHASE

THE

spot report are now available.
Write or phone for your Free copy.

J.A.HOGLE&CO.

Dept. Teletype: NY 1-708

B. C. Forest Products,

Commodity Exchange, Inc.

Circular

Bond Department

in the Rocky Mountain region.
Free copies of this fact-filled, on-the-

Members New York Stock Exchange

T. L. WATSON & CO.

Members

Bonds

Bonds

what noted geologist Dorsey
Hager thinks of the oil and gas pros¬
Learn

50 BROADWAY, NEW

Pacific

,

pects

Boston

Missouri

,

in the Rockies

Wires

Chemical
COMPANY

A

BONOS

HAnover 2-3700

BANK & TRUST

'

Oil & Gas

Hawaiian Securities
Direct Private

Municipal

MUNICIPAL

'

■

i"

«a

CHICAGO
it

Grporatioti
40 Exchange Place, New

York 3, N. Y«

'in

i

Teletype NY 1-702-3

WHltehafl 4-8161

request

IRA HAUPT & CO.
Members
and
.

New

other

York

Stock

Exchange

Principal Exchangee

Ill Broadway, N. Y.

WOrth 4-6000

1 NORTH LA SALLE ST.

NEW YORK

.

Dombuox Securities

upon

Boston

6

Teletype NY 1-2708

Telephone: Enterprise 1820

2

The Commercial and

(774)

The

POSITION and

WE

Security I Like Best

IN

TRADE

This

Their

Copeland Refrigeration

in the investment

Electro!, Inc.

participate and give their

(The articles contained in this forum

Pfd.

Conv.

they to be regarded,

are

Polaroid Corp.

as an

offer

Duquesne Light

■

&

American

At

Natural Gas & Oil

ket

Southwestern Public Service

most

profitable course

is

look for

to

t i

u a

hard

Broadway, New York 5
Teletype NY 1-583

is

type selling to

of about

15

points seems

about

hardly

justified.

Its

asset cover-

to

age,

after satisfying senior priori-

ties,

$4,000 per bond.
7,160,000 comshares outstanding which are

up

mon

if the

through the
3V2% interest) are fully exploited. I suggest
the 4.8% debentures of American
& Foreign Power'due 1987 as an
interesting situation with appreciation
possibilities over
the
of

BROADWAY,

between1

of

time

15%

and 25%

Almost

Tel.

YORK

NEW

5

2-7815

REctor

d

a

ago,

year

thp

iQ<=i9

nf

thp

thP

nn

short-lived

tronhlp

Gas Co.

were

Handley Hardware Co.

Scott, Horner &
Mason, Inc.
Lynchburg, Va.

HpvplnnpH

snots

by

fhilp

in

exaggerated

to stockholders of record

Feb.

Thus it is

10.

fantastically

amply proven

foreign
xoreign

arie"

not

but

vdll

Industrial Brownhoist

which

of

ers

is

Share

exchange
exenange

Times

Darling Co.

Trade

assures

Debt

New

York

Brazil

that

us

Midwest Stock Exchange

after

was

$3,580,000

Detroit Stock Exchange

Building

DETROIT 26, MICH

,

City, Mich.

Solution."

that this bal-

19o2

advances

Brazilian

to

of

subsidi¬

aries for construction. The foreign

parent company through borrow-

from

the

Export-Import

investor

Power

and

is

speculator

industrial world revolution which

H. Hentz & Co.
Members
York

American
York

New

Exchange

Exchange

dustrial

Cotton

Exchange

fancy

Orleans

of

Inc.

Trade

Cotton Exchange

has

revolution

where

and

been

because
their

other

Exchanges

this

in-

its

in-

in

great

record

of

raw

is

in

made

_

And

where

progress

recent

years

demand

materials.

With

steadily rising demand for

for

the

power

the gross

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

DETROIT

GENEVA.

PITTSBURGH

SWITZERLAND




income of the operating
companies will continue to increase.

It

is to

the

company

are

spread

It

can

the

that

over

advantage of

its operations
countries.

many

be estimated that the gross

revenues

are

derived

as

its

in

offices

Film "A"
Missouri Pacific R. R.
Common

Old

Southwestern Public
Service
Common

Gerstex & Fbenkel
Members

N.

Y.

Security Dealers

Assn

New York 7

150 Broadway

Tel. NY 1-1932

Tel. DIgby 9-1550

BALTIMORE TRANSIT

COMPANY
Recapitalization Plan

Memo

on

Request

J. V. MANGANARO CO.

of

which is single dial contro

Sprint

; : -

50

Broad Street

4, N. Y.

New York

Teletype

Telephone
HA 2-3878 9

and

NY 1-2976

80

lengmen
ng aays ana t e
than average winter to

0f

to

follows:

lots of

be

rank

of

in

p e

at

their

makes

or

Air-

the next

room

companies
trade

its

own

names.

condensers

compressors

but
and

:ts

S.

The. successful

Logan Stirling

ServeUs
a n

c\

last

months

recent

it

has

become

apparent that this industry

mind, I submit the stock of Servel

Servel

enjoyed a long and
history in the refrig-

industry and following

a

change in top management some
three years ago,

it has embarked

manufacturing and merchandising program. As a result
it has broken away from its long
association as a major manufae-

on a new

turer
.

„

„

Broad

,,

.

Telephone

Teletype
NY 1-809

of

.

the
„.

410 Pan American

this portable retrigerette is silent,
styled
1?lode™. furniture m an_ allPlastic cabinet, and was designed
{01 use 1!l.various yooms in the

Miami 32,

Bank Bldg.

Florida

u hhout mo\ ing parts, and

outside terraces,

e}c' ?10?U1Cnn°n -7^ 01,lglna11^
vfi
"n,
pei
?
S p mbei; but ^ca,lise
b
unexPected demand, the pioductl0n iate 1S now up to 300 unlts
per day and the company is be,

,

hi"d 011 ,!ts unfilled orders. All
°
Is all"e0
°m,ng
of
fired
,.efl.iseratol.s lef«geration equipment features
0t 8as-fned leingeiatois no moving parts, which provide

*

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
12'Year Performance of
35 Industrial Stocks
FOLDER

ON REQUEST

{

and 1S now °fferinS lts new 19o3 a longer life expectancy, quieter
line of products which will in- operation, no vibration, and are
elude both gas and electric house-

Street, New York 4

WHitehall 3-2840

the slack sellin

has

successful
eration

.

begmnJn/

request

Wonderbar

(normally

September
.

,

introduction

electric

new

on

Gordon Graves & Co.
30

exterior cabinets.

i t inning

t:ii

Prospectus

may

cool¬
under

specialists in this field
its

this

possible

Servel

produce

purchases

Bought—Sold—Quoted

is expected

larger factors

date

other

Servel

from

infancy

-

Servel will

on.

the

respective

offices

f

of

later

a

for

ers

with-

tioning in their

:

one

as

now

undertake to

air.condi.

j

over

the business. It is also

that

ciallyfor those

homes

Common Stock

ai9

competition in

division from

unc0mfortable

out

„7:+h

units^soldTE&while in!

(K)

double the 1953 rate

the

exjst

^mn01.o

few years. While there

mind the very

e s

total. This

^ ^

t

„Trml/q

Company

' dustl^
authoritles
»redict
sale
of
window
units
will
more
than

iatter

summer

Oil

Servel believes, it can obtain

^ ^

tWnk °f

only serves to
bring

Commonwealth

year

window" air-conditioning units
the '

warmer

^1^?^"* "

esU-

o{ between 500,000 and 600,000-

>•.;<

da'vs

lndust^b

The

S a'to^rdimandftis

a

countries

Stock

Board

Chicago
New

in

branch

our

cost advantages.in the manufae-

nomic feature in

ate

Stock

patient

political and eco-; as one of the issues most likely
our times/states
to" succeed in"the market in the
analyst. Its subsidiaries oper- months ahead.
great

so

one

Exchange,

Commodity

is

to

General Aniline &

fieM'
A completely new deapproach has been used to

among

might
attraction
of
Foreign readily develop along boom-like
its key position in the proportions
and<
with this in

basic

the

1856

•

lenethenina

^he

jn

...

the

To

wires

STIRLING

LOGAN

"Servel Inc."

subsidiaries plan to reimburse the

ings

Established

sign

£
Members New York Stork Exchange

to

ance

Ala.

Mobile, Ala.
Direct

become an important
factor in the room air-condition-

mfo
^TuLC0^I«AnnnDen
3-' who managed
1952
totalled $15,560,000.
Pi esident Robinson said

Members:

Office—Bay

largest. Even

fact, cash and temporary cash
investments of American & For-

Moreland & Co.

New

S.

In

Request

Penobscot

and

Bond

Nearmg

f

on

its stockhold-

for

Electric

conservative

the

Market

suffident

have

of the

one

the

high;

fh8te ™ke m°St °f

aiso

NY 1-1557

;

holder has good profit possibilities, ture of these window units which

that Foreign Power-receives more
sufficient
sumcieni

St., New York 4, N. Y.

Hflnover 2-0700

return *s excellent and, if bank of all functions of operations. In
f£in®"c(ing„ is
al,™S,' additi°n> tde company has certain

as

common

Exchange

Exchange

New Orleans, La.-Birmingham,

to

pects

dividend Manager, Invesunent & Re.eiurl, Dept.

recent

two

funds available

Branch

the

usuah the fears

as

much

very

proven

than
man

yimiiiiiiiiiitiiiiiiiiiiiiiimiiiiiiiiiin

10 51

with

factor

business.- It specializes in installations up to 100 ton capacity and
is directing sales efforts at residential, commercial, and industrial installations, in both new
and existing construction,
Servel, for the first time, ex-

aiound 66% seems very small, the

LD 33

Tele. LY 62

L. A.

was

ended

It

Brazh but

Dan River Mills

Moore

old

19231

of Batista in Cuba. Further

coup

Commonwealth Natural

of this

in

ffnnnrlpd

rnmnnnv

Natural Gas Co.

stock

bonds and

new

single

largest

pleasing
DehZntf
design. In addition the
?^entures selling at Present product has other unique features,

Exchange. The enthusiasm for the

Alabama-Tennessee

the

In conclusion let me say: The risk met is of one piece plastic

II111111111111111111111iIIIIii1111f1111111IIK

Trading Markets

the big board

on

become

may

'ts L®tin American backyard than create an attractive window unit
has been done in the recent past, air-conditioner. The interior cab-

stork

Ynrk

Npw

conditioning activity

llon might Pay moie attention to

vp-

American & Foreign
Company Inc., were in-

Power

'hbout

actively

Stock

ice-

air-conditioning system that cools
in the summer and heats in the
winter, all from one simple unit
which can be powered by either
gas,, oil, or steam. Within the next
few years Servel believes its air-

^

March

on

hnnHd

npw

organized
ivnHiippH

automatic

conditioners,

air

around nine dollars a share. At
present prices, the best play
should be obtained through the
bonds which provide a high return protected through a very
good interest coverage (more than
two times) and good speculative
possibilities.
There are also indications that

New York Stock Exchange

120

American

air conditioning equipment, room

about

are

traded

bor-

rowing" possibilities

course

is

There

Stock

York

New

Members

hold refrigerators, the latter hav-

The

years).

(43

a

giving

20%

maturity

basis

on

banks (25% down and

American Stock Exchange

Members

25 Broad

stake),

at

spread

existing

Members

is

$117,000,000

lier

and

McpoNNELL&fo.

Steiner,Rouse&Co.

(Page 2)

,

bond

current

Since 1917

New York City.

in

'

Stirling,

Investment & Research
Dept., Eastman, Dillon & Co.,

with

nessman's risk

7.25%

Rights & Scrip

Logan

S.

Bought—Sold—Quoted

-

.

busi¬

the

yield

Specialists in

/

making machines, food freezers,
dor 1% each. *
and the new electric Wonderbar.
The new 4.8% Debentures are The
company's most promising
fixed ' interest
obligations and growth is expected to come from
rank junior to the Gold Debenits new -and rapidly expanding
tures
(5% due 2030) but these air-conditioning division. It is exJuniors have a substantial sinking pected to become a leading factor
fund and have a considerable ear- in the manufacture of an all year

sur¬

a

cover

of

Exchange

—

York

New

Inc.,,

Mgr.,

•

...

Government

Inc.

Servel,

time

_

Colqmbia and Panama 3% -each,
Guatemala, Costa Rica and Ecua-

prising to dis¬

Associate 3Iember

.

Co.,

City. (Page 2)

Ar-

5%,

time to

.

Argentinian

about

to

It

find.

1920

Deuble, President, Yorkville Ex¬
change

try and the company could derive

they

therefore

Corporation

BArclay 7-5660

about

Of

o n s.

are

New York Hanseatic

(from

.

Alabama &

Louisiana Securities

Power 4.8%
H.

great advantage from a cash ing an exclusive and -revolutionsettlement if and when it is ary automatic ice-making device
to follow reached because an investment of on an optional basis, /'all year"

are

course,

120

..

doubts

when

time

a

Venezuela

5%

Thursday, February 19, 1953

1987—Albert

of

order to obtain compensation for
plants expropriated by that coun-

neglected. sit-

Western Natural Gas

Stock

Foreign

&

.

-

general outlook for the marincreasing, the safest and

the

Light

Puget Sound Power & Light

American

Foreign^Power 4.8%

Debentures of 1987

Michigan Gas & Electric

9%,

negotations are carried on
the

East Tennessee Natural Gas

Established

American

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

Jgentina

'

*

to

Mexico

President, Yorkville Exchange Co., Inc
New York City
Members of N. A. S. D.
■
,

-

particular security

a

Brazil 28%, Cuba 26%, Chile 18%,

ALBERT Hi DEUBLE

Arkansas Missouri Power

Pacific Power &

for favoring

reasons

.

Selections

Debentures

Hooker Electrochemical
-

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

.

Week's

Participants and

Forum

A continuous forum in which, each

FinancvyX Chronicle

Continued

on page

41

National Quotation Bureau
Incorporated

46 Front Street

New York 4,N.Y.

Number 5196

.Volume 177

.

.

The Commercial and Financial Chronicle

.

Prospects With
Decreased Defense Spending

INDEX

A Tree World

Can

Contending American business apparanetly fears no serious
Commerce Depart¬

be

a

When

major

the

as

As

and

rise

Defense

ernment

report

new

But

armaments—

aged

the

the

lor

need

In

forward

the

In

in¬

volving

the

Meehan

future, the first difficulty encoun¬
tered is that of facing the uncer¬
tainties of the world in which

to

There

is

we

great temptation

a

stop right there—since to

cope

with them it is necessary to make

estimates, and the estimates
be

taken

tempt

evidence

as

forecast

to

will happen
Viewed

of

in

counsel
group

business

our

we

and

of

a

of

11

Stocks—Robert W. Johnson

13

14

Official Films

members
Economic

I

can

here

Vulcan Silver & Lead

Trust Business Needs

attempt
the

only to

Sound Economy!—Robert A. Wilson-- 22

a

J.F. Reilly&Co.

Growing Institutional Holdings of Equities—G. Keith Funston- 23

Incorporated
*

*

resulting from
later

SEC Reports

our look
ahead.
I

Dies—

5

—

BO 9-5133

(Boxed)______

Coolidge!

—

Direct

Philadelphia

37

San
Public's

Savings

90

The first major

printed pages.

light, how¬ problems we faced were the de¬
difficulties as termination of the general pat¬

The

Administration's

___

39

—___

40

Need

Task—

Budget

—

Associated Development
and Research Corp.
Brown Allen Chemical

Department

tion, thought it

necessary to make
on the basis of the

evaluation

could

be

Cenco Corp.
As We

formulated.

the CED had col¬

factory

position

inventory

laborated with the Department of

toward

calling the attention
of business to the possible shape

though of course no certainty, of

of

1953.

come.

At that time,

of its organiza¬
tion, the CED had asked us to sur¬
vey the economic horizon, and a
few
months
later
the
Depart¬
1942, the

the

strong

another year

Last

which led
other

in

year

the

to

such

In

of Trends

the

discussions

initiation of

in

study

July,

an¬

1952,

NSTA

*An

by Mr. Meehan at the
Conference of the American

address

Marketing

——-

7
47

Singer, Bean
& MACKIE, Inc.

42
8

—

—

34

viewed

as

sizable

more

Observations—A. Wilfred May..—

gen¬

Our

more

and

Securities Salesman's Corner

Tomorrow's Markets

Washington

...

Kn.Tiisl Assotia,i°"' New York City'

Continued

(Walter Whyte Says)

Common Stock

v*

56

*See article "The

fr-Nbt available this

24

A

Twice

1

Weekly

Drapers' Gardens, London, E. C.,

Eng¬

land, c/o Edwards & Smith.

For many years we
have

specialized in

Th©

PREFERRED STOCKS

and

COMMERCIAL

Reg.

U.

S.

Company

Patent Office

Park Place, New York 7,

25

Spencer Trask & Co.

18791

I). SEIBERT,

WILLIAM

Boston

•

Editor

&

Manchester, N. H.

•

Nashville

•

Glens Falls

•

Schenectady

•

Worcester

DANA SEIBERT,

statistical issue — market
corporation news, bank




LOS

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Offices:

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year.

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eign subscriptions and advertisements must

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slock. Report

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Every Thursday (general news and advcrtlsing issue) and every Monday (com-^
plete

at the post office at New
under the Act of March 8,

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Thursday, February 19, 1953

records,

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HERBERT

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,

DANA COMPANY,

B.

with

company

Reentered as second-class matter Febru¬
ary

WILLIAM

asset

Copyright 1953 by William B. Dana

FINANCIAL CHRONICLE

noil-diversified

closed-end,

record

5%

to Members of N.A.S.D.)

investment
Published

Price

Current

Canadian Economic Scene" on Page 20.
week.

mi—

The, SUm Of
on page

-

—

5

(Concession

But one fact we considered of
.

MANAGEMENT, Inc.

2
—,

You——

and

FIDUCURt

50

Industry——

The State of Trade and

We offer

38

—

Registration

Like Best

The Security I

the

35
41
33

—

Railroad Securities

Securities Now in

5

52

Securities-

Public Utility

founded.

.

•—

Offerings

uncertain.

remote

major significance.

Exchange PI., N. Y. 5

**

—

Governments

Security

Prospective

—

Report—

Reporter's

Our Reporter on

part, this is simply because the

is

40

Teletype NY 1-1825 & NY 1-1826

appear

basic assumptions still less firmly

*

t

of the News—Carlisle Bargeron——

Notes

-

49

Funds

Mutual

price rises unless an inven¬

period

■

Weyerhaeuser Timber

8

'Floating' Pound Sterling?"—

a

From Washington Ahead

business in

resources

adequate to forestall

was

Survey

U. S. Airlines

HA 2-0270

Productive

eral

Delhi Oil

8

Recommendations

Investment

Cinerama, Inc.

*

—

Indications of Current Business Activity. —

"Markets After the War."

A

Securities

34
56

r

report

a

—

News About Banks and Bankers..

year

issued

Bookshelf

Einzig—"Will There Be

tory boom should develop or in¬
entitled ternational relations seriously de¬
It was
teriorate.
However, moderate
reprinted and widely circulated price advances in areas which
by CED, whose field organization have previously lagged, such as
made it the subject of discussion
rents, are to be expected.
throughout the country in meet¬
The prospect for 1954 naturally
ings of leading businessmen.
ment

Stocks

Insurance

Dealer-Broker

probability,

of good

Cover

——

Coming Events in Investment Field

point

Commerce in

things to

(Editorial)

Man's

Canadian

thinking was fully in the report itself.
The
paralleled by that of the Commit¬ over-all conclusions as to the out¬
tee
for
Economic
look
follow.
Development,
which once before had pioneered
The prospective rise in defense
in the task of helping business re¬
expenditures, the continued
convert from military to civilian
strong trend
of investment by
goods output. Long before the end business, and the current satis¬
war

and

Bank

Business

In this regard our

of the last

It

See

goods.

In
summarizing the results, I
that shall not go into the qualifications,
which of necessity are set forth

judgments

present-day

;

Regular Features

of various private markets for both
and
Commerce, recognizing this situa¬ investment
consumption

best

Los Angeles

Francisco

38

Return to Sound Money

"Balanced Budget Seen Nation's Prime

another

ahead.

Wires
•

37

$200 Billion

Exceed

Economists Urge

tern of defense

riod

Teletype NY 1-3370

12

Peak Securities Registrations---

Cal

Boy! Page

describe

to

Prince

Theodore

re¬

Broadway, New York 6

general

more

murky period

undertake

20

Hackett—_

G.

T.

61

into
shall

Scene—W.

Economic

❖

findings
the

18
•

Canadian

The

We

of

16

of the Big Change—Arthur B. Homer

agencies.

some

Reeves Soundcraft

14

—Hon. John Foster Dulles

had also the
cooperation and assistance of other

view

—

Ending European Disunity

simply underscore and give
expenditures, pro¬
point to the desire of business for jected at the year-end, and an
an
analysis of the uncertain pe¬ evaluation of the prospects in the

in

10

—

Danger Ahead!—W. W. Townsend

The Task of

briefly the process by which such
at¬ an
analysis is conducted—in short,
what to explain what lay behind these

this

an

;

——

an

exactly

basic

9

of Growth

Selection

The Challenge

of 19 out¬
university

for

4-6551

Track!

The Outlook for Natural Gas—Gardiner Symonds

spe¬

staff

STREET, NEW YORK

6

The New Agricultural Policy—Hon. Ezra Taft Benson

encour¬

and

Committee

Development.
Federal

WALL

Telephone: WHitehall

Getchell Mines
The

may

next.

such

ever,

and

advisory

the

of
Joseph

problems

live.

advice

economists

tackling

Obsolete Securities Dept.

4

——-

Cinerama, Inc.

business.

standing

normal desire.

4

Cobleigh

Sanford

—Martin R. Gainsbrugh

undertaking

aided and

were

we

cash.

Strength and Weakness in Business Conditions

year

Expansion" shows that

by

cial

programs

heightens this

U.

Changed—Ira

"Markets After the

on

junk,

your
our

3

.

Aftermath—Roger W. Babson_

—Stephen J.

They gave us
benefit of their forward plans.
preparing our report we had

soundly-based
plans

an

Meehan

It Pays to Speculate—Off the Beaten

realize, we
the difficulties

such

dump

Cover

fully cognizant of them.

are

ex¬

penditures for

and

the

I believe that the text of

a period of
extraordinary

gov¬

in

Stop in,

Remedied?

Be

Prosperity by Inflation—L. Albert Hahn

will

you

involved

the

toward

Trade

09

emphasized

recognized

early

end

of

in

leaders

feasible

was

1955.

can

foreseen—
at

as

business

Joseph

Korea and the

problems has need for a survey that would pro¬
characteristic
of ject major economic trends as far

business.

American

changes

and

ahead

BRIEF ENCOUNTER

Cover

-

International

Dimes Have

The

coming

been

long

look

Crisis in

—M.

general confidence.

to

One-Way Street

take

analyst cites continued heavy capital investment

desire

AMD COMPANY

Business Prospects With Decreased Defense Spending

as evi¬
Warns, however, any sharp re¬
duction in business activity may change plans for new capital
outlays and lead to drastic contraction. Looks for little let-up
in defense spending this year.

The

a

II__

—Melchior Palyi

v;t

bnsiness recession before 1956 at earliest,

anticipate

on

Page

Commerce

U. S. Department of

dence of

Can't Trade

Henry Ford

Director, Office of Business Economics,

ment

llCHTEIWfin

B. S.

J

Articles and News

By M. JOSEPH MEEHAN*

^

3

(775)

,

EISELE

& KING,

LIBAIRE, STOUT & CO.
Est. 1808

Members of New

York Stock Exchange

50 Broadway,

New lTork 4

Tel. HAnover

2-6577

4

The Commercial and Financial Chronicle

(776)

.

Thursday, February 19, 1953

..

bled and delivered in truck trail¬

The Dimes Have

Changed

investor-slanted

An

of

organization which is almost
baseball and

as

apple pie

as

—

Woolworth

latest

deep in the American tradition

the Woolworth Five and Ten.

balance

sheet.

Great Britain.

Western

sibilities

No

Germany and West Ber¬
money

has

come

through

necting escalators, is the standard

to

new ones

light of day; and while since the

pattern, verticality is found in the
constantly rising price-top. Time
was
when the limit was 25c or

gaslight

perhaps

vast

Ditto for the $1 item "Good Will."

neer

ago,

years

York,

the

Woolworth unit first

saw

in
pio¬
the

the

stores

can

50c. Now, however, you
mosey into the five and dime

have

been fa¬

and

spend $10 for a bird cage or

mous

for their

a

e r a,

red

fig ures
no-

ticeably ab¬
sent

the

from

earnings state¬
ments of'this
eminent,

19 5 2

lion

mer¬

issued,

(ra

U.

Cobleigb

fas¬

cinating saga of sustained profita¬
revealed

is

saw

a

for your

for

chain famed for

year), never paid less than $1.60.

a

mil¬

gram

point

Skill

you

F.

peace

and

the

been

never

to

Korea. One of

world.

We

gang

however,

some

him

this
on

a

trip and

will

later
back

bring
report
I

along

boy who is

a

In

order

to

so

fights; but if
other boy starts a fight with
with

or

leader.

is

the

any

no

member

of his

His influence is gone. This

situation

which

the

United

States has gotten into. We should
blame no one. It just happened.;

a

pass

to

like

he must fight that upstart.
Otherwise,
he
is no
longer a

which

will

taken the

gang,

round-the-

world

are

leader.

remain, he starts

leaves
month

W.

leadership

the

experts,

my

We have

world

from England.
But with this leadership come responsibilities. We must police the

Japan, China
Philippines; but have

get?

magnitude,

of

Holds

out.

of the world.

Korea. I have visited

Unfortunately,
man

my

who

had

we

the

are

like the

"bull

by the
asking
himself:
at my "Shall I let
go or hang on?"
If
winter
head- we are to defend our
position of
quarters in leadership we must continue to
Babson
Park, fight in Korea and wherever we
Fla., I have a are challenged.
This means we
10,000 volumes,1 must "hang onto the bull's tail";
were
published but this is and will continue to be
readers.

tail."

He

was

Here

of advancement from within

Roger W. Babson

the organization. It has about 86,000 stockholders who feel their

library

$2.50 dividend is reasonably pro¬
tected by 1952 earnings of $3.25

some

of

of

over
which

previous to 1760. While here the an unhappy position. On the other
9,703,606 shares of past month I have spent much
hand, if we swallow our pride and
they
must
feel
as¬
out before you like a minute flat
time reading- the history of the withdraw from Korea we bechriie
sured by a year-end balance sheet
modern world, which dates back a second-class nation. prairie; with dozens of little parti¬
■
tioned areas, each laced with a showing over $100.million in net- to the Roman Empire. There are* •
"
' ;
' v
current assets. No bank loans or;
two outstanding facts: ;(1) Some"
plethora of gadgets? Well today
> We Can Expect No Peace
•.
on

each of the

common.

• 1919 $12,000, has
stock dividends, to
today, worth $87,750 it's

Dec.,

with

understatement of this asset.

In

Merchandising

40

'Further 100 shares of Woolworth,
in

a

It may be out of place for me—
mere
statistician — to
discuss

Thirdly the 52.7% share owner¬

low

The third illustration of ver¬
years.
In these two
generations, the company never ticality I had in mind was display.
showed a loss, never earned less Remember the old days when each
than $2.26 a share net (1943, a war Woolworth counter used to spread

worth

of retained earnings. $1 must be a

can

carried

still seek world dominance.

3

and

opened in 1952 out

were

be

must

in Korea will not he permanent, and Russia will

cellar work

consecutive

grown

prospering

are

but

history of the rise and fall of great
into world leadership by default of
one can be blamed for this, but respon¬

came

Says no
leadership

a

bility and unbroken dividend pay¬
ments

source

For instance,

just
a

this

up

priced articles, all sold
Woolworth
Co. lz probably
the
strictly cash and carry basis.
fourth largest retail merchant in
most televisions and
America following Sears Roebuck,
appliances are sold on credit, and
Atlantic and Pacific, and Mont¬
you'd hardly expect Woolworth to
offer motor cars, like Sears Roe¬ gomery Ward. It has 96,000 em¬
ployees and a well-defined pro¬
buck.
on

In the
annual

report,

or

limits in

chant enter¬

prise.

stores

from

patched

of

ship in the British Company, run¬
ning 782 stores, is given balance
bench; and tucked away in corners sheet valuation of.
only $30,879,of some of the newer stores you'll
630; yet it paid $4,911,200 in divi¬
find even costlier articles being
dends in 1952; and had a market
offered for sale in an experimental
value at the year-end of $196 mil¬
sort of way. Of course, this trend
lion (pound at $2.80). How con¬
to higher priced items has some
servative

meplates,

have been

America

the

lamp, perhaps $50 for an electric

drill

barn-red
n a

empires, finds U. S.

First, standing at $1, is the Ger¬
man
subsidiary — 46 stores in
lin.

Seventy-three
Watertown, New

Mr. Babson, tracing the

about

distinguished merchandising

a

By ROGER W. BABSON

Something should surely be said
three special items on the

"Expanding Your Income"

view

Subsidiaries

Foreign

By IRA U. COBLEIGII
Author of

Korea and the Aftermath

lots.

er

different and the counters you

Also

subordinated debentures to clutter

one
nation was always the "topI have a strong feeling that the
the equity here! Fact is Wool- dog." (2) That nation was usually^ Chinese will'
get tired
of the
worth common, being the sole se- v at war with some .other
rangers, piled cleverly and neatly,
^ nation fighting.- Then
Eisenhower wilt
in a tapering mound toward the curity,; has built-in many of the+ which was attempting to tip over work out some kind of a tempoyears. With; all the current talkattributes of the prime bond or, her
"apple-cart."
*
-i:
rary peace with Russia which wilt
about growth, get a load of the ceiling. At the eye level, literally,
s
:
;
*.,"/'
hundreds of items peer out at you preferred,
Woolworth story.
The Roman Empire started with "save face" all around. But it will
'
<
from this chrome, glass and plastic
good leaders and the best inten- be only temporary.
Russia does
1952 Report Tells A11
I
/
:
Still Growing
;
j Alpine ridge. Verticality I call it.
tions, but it was continually at-not want World War III so long as
If the forward motion of Wool-While some analysts have now
What all this amounts to is that
war.
These wars were not to seek! Stalin lives; but she is determined
worth is not the splashiest amongi tagged
more power, but to prevent other; to worry us and bleed us eeonomthe outfit as a "mature" each strolling shopper who wan¬
Icompany, and the growth rate may ders into Woolworth's, often with¬ corporations, there is at -least a nations from seizing the power ically so long as she can do so.*
glacier like quality of progress to which Rome then held.
EveryMothers, sisters and sweethearts
:have slowed, there is no real rea¬ out any special purchase in mind,
be noted
broadening the price high school student who has stud- are very anxious to end the Koson to believe this resplendent re¬ sees this, and sees that; and after
structure,
rean
War.
I think this will be
steadily moving from ied "Caesar" knows the story. Fi¬
tailer has stopped growing. For fifteen minutes in the store, has
smaller to larger stores, upgrading
done with honor.
But I further
lPT? its sales were largest in his¬ spent two or three bucks. Most
nally, Rome was economically ex¬
the attractiveness and accessibility
hausted with these continual con¬ forecast that, within a year after
tory, $712.6 million; and the top Americans have an urge to shop;
of merchandise, and offering con¬
the Korean peace,
trouble will
brass predicts a new high for 1953. at Woolworth's they can
flicts, and the Roman Empire colsatisfy
While the total number of stores that urge at low prices; and they stantly newer and wider varieties lapsed. Later, the Spanish Empire break out elsewhere. We all must
of small wares. Never before has
expect
our
sons
to
be
sent to fight
took
the
is down from the all-time high, get excellent values.
leadership
and
went
Probably no¬
such fine technique been devised
through
the same
experiences. somewhere at some time. The
2,027 in 1940, the stores sloughed where else can so many buy so
to convert the aimless meanderer Then the French took the ball.
sooner we get used to both worries
off were poor earners. Right now much for so little.
i
and taxes, the better for all con¬
through the aisle, into an eager
there are 1,787 stores in the U. S.
Another thing—just ask your¬
Remember the British
and immediate buyer.
cerned.
<
'
'
«
!
;
165 in Canada and eight in Cuba.
self which is the biggest restau¬
Look
at
the
1952
Woolworth
The farthest North is in Prince
Following
Rome,
Spain
and
rant chain, or which the biggest
report. It's splendidly done—read¬
Rupert, British Columbia, up
France, England became the Maggio Company Expands
bakery chain in the country. I'm able and
revealing—and will show world's
towards the Alaskan border. New
greatest power. She held
not sure that I know, but it might
Chas. J. Maggio Inc., 120 Broad¬
you, in some detail, why this stock
faces on the Woolworth map for
this*
leadership
until
the
first way, New York City, has an¬
be Woolworth.
Many Woolworth is such a reliable
equity at all World War. Her battle cruisers
1952, included 19 stores in subur¬ stores have lunch counters and the
nounced expansion of their facil¬
stages of the business tide; and were in
ban shopping areas, with proper
every large port and she ities.
larger stores have full blown res¬ how and
Considerably larger quarters
why the dimes have policed the world, and was usually
parking space, such as the ones in taurants with
have been taken in 25 Broad St.
complete
menus
changed.
Atlanta and Akron; and there's a
fighting
somewhere.
She
just
had
with
to accommodate their trading and
pastries > and
desserts
to
to do this to hold her position.
snazzy new unit in Grand Prairie, match. Tens of
retail departments. Executive of¬
thousands eat at
Texas. One of the largest stores
W. T. Bigelow Opens
England also was rich and did fices will continue at 120 Broad¬
Woolworth's everyday.,
is in San Francisco, moved in 1952
the world's banking, insurance and
KANSAS CITY, Mo.—Walter T.
way.
Another forward trend here is
to the Flood Building—two floors
shipping.
The English Pound
the testing of selfsetvice stores. Bigelow, Jr.
has opened offices
of the latest thing in streamlined
Sterling was then the world's uni¬
at
2509
Buchanan
Woolworth has three such right
to engage in
Joins Mann & Gould
sales
bait.
versal currency, as is our Dollar
Altogether
31
new
the securities business.
now. If they work out
well, look
(Special to The Financial Chronicle)
stores opened, and
today.
Germany, however, then
14 shuttered <
for quite a few more—they help
last year.
looked
with envious eyes
upon
SALEM, Mass.—Ralph L. Stato cut the cost of selling.
England, as Russia is now jealous pleton has joined the staff of
Chapman Co. Formed
Bird Cages and Electric Drills
of
us.
In
her
endeavor
to
continue
Shipping" costs of goods coming
Mann
&
SAN BRUNO, Calif.—Chapman
Gould, 70 Washington
as "top dog," England went to war
Somehow the word verticality into Woolworth stores have been Company is
Street, members of the Boston
engaging in a secu¬
seems significant in talking about
rising. To offset that, the manage¬ rities business
against
Germany
in
1914
and
Stock
Exchange.
from offices at 759
Woolworth.
One
of
again in 1940. These last two wars
the
earlier ment has expanded its warehous¬ Kains Avenue.
bled England so that she is now a
skyscrapers, the Woolworth Build¬ ing program in New York, Chi¬
With Edw. D. Jones
second-rate power. There now is
ing, suggests that; and today ver¬ cago & San Francisco; and instead
A. L. Henson Opens
(Special to The Financial Chronicl*) ~
"*
little hope of her getting strong
ticality is evidence by two more of each store receiving separate
ST. LOUIS, Mo.—Philip A. Rao
DENV.EfR, Colo.—Asa L. Henson again.
is now connected with E'dward D.
things. While it is true that, ex¬ shipments of individual items, big is conducting a securities busi¬
What About the U. S. A.?
Jones & Co., 300 North Fourth
cept for the N. Y. Store, two floors quantities of assorted inventory ness from offices at 2222 West
The United States is now the
Street, members of the New York
at most plus a basement, with con¬ for each retail outlet are assem¬ Thirty-fifth Avenue.
j
richest and most powerful nation and Midwest Stock Exchanges,

1950

shares

at 45; and not counting a boatload
of
cash " dividends
through the

gaze

at are niore like mountain

f

up

.

.

.

.

.

.,

.

,

■

—

<

,

*

-

ESTABLISHED

Form

1694fc

Partnership

(Special to The Financial Chronicle)

STATE AND

MUNICIPAL BONDS

CORPORATE BONDS

SAN

Clark

with

LOCAL STOCKS

FRANCISCO, Calif.

Mortimer

to

Clark

and

have formed
offices

engage

at

58

NOTICE

J.

—

Ralph

F.

partnership

a

Sutter

Street

SOUTHERN GAS & ELECTRIC CORP.
1ST

in the securities busi¬

ness.

4

The

Robinson-Humphrey Gpmpjny,inc.

RHODES-HAVERTY BLDG.
WALNUT 0316




►

ATLANTA

1, GEORGIA

LONG DISTANCE 421

John

F.

X.

membership

Frost

in

will

the

New

York

Cohen,
Simonson
&
Co.,
120
Broadway, New York City, mem¬
the Exchange.

Arrangements

are

BONDS

being attempted for a short extension

of these bonds at a

higher rate of interest.

acquire

Stock Exchange and on Feb. 26
will be admitted to partnership in

bers of

MORTGAGE

5%

Cohen, Simonson Admits
a

-

For Particulars write:

Address Above
P. O. Box 1185

Sarasota, Florida

Volume 177

Number 5196

.

.

The Commercial and

.

Financial Chronicle

5

(777)

Steel

The

Production

Mentor ram

Electric Output

Observations..

Carloadings
Retail

State of Trade

Trade

THEODORE

Commodity Price Index

By A. WILFRED MAY

Food Price Index
*

Auto

and

Industry

Theodore
Prince, well-known
lawyer, investment banker, finan¬
cial counsel, and writer, died Feb.

Production

Business Failures

17 in his home in New York

J)
There

was

material

no

change

production for

the nation

clines

lines balanced out

in

gregate
and

some

as

in

whole

a

the

rises

past

in

week

others.

moderately above

output remained

of

course

the

that

of

a

way,

since

the corporations.

de¬

JB

time peak attained in the final quarter of 1943.

level

latest reports, employment

reached

ever

this time of the

at

at the highest

was

Claims for

year.

In

the
in

moves

steel

industry,

Washington,

hot

the

on

consumers

are

heels of

steel

descending

on

com-

\

J

in what promises to be a mad scramble to "get en the
states "The Iron Age," national metalworking weekly,
in its current report on the steel trade.
V

,

want

first

crack

at

any

have, them

Born in

Mr. Prince

was

ica when

few months old. In his

a

listed

as

a

regular customer.

admitted To

was

the

.

New

will

are

taken

care

of.

y,

\

•

'

Although a selective steel price increase
summer, end of price controls is not expected

wave

of inflation.

This

is

1

>

off price controls
With

terials

exception

of

a

aluminum, and
are

buyers

in

better

expect

few

some

-

critical
super

supply than

materials

alloys,

had

most

been

availability
this trade weekly further reports.

such

realized.

in

the

steel,

as

industrial

ma¬

Industrial

months

ahead,

The

ing

strongest inflationary force mentioned by the purchas¬
was
the seventh wage round, already a factor by
of the many
previously-bargained increases which had

agents

virtue

been pending before stabilization officials and which now auto¬
matically go into effect.
These will be soon followed by other
new wage
agreements, including steel, concludes "The Iron Age."

In
caused

the

automotive

auto

output

to

The

statistical

industry
ease

to "Ward's Automotive

strikes

about

1%

and

week,

The automotive
face

rious

a

steel

picture."

said

114,280

The

Committee

as

adviser

to
Commerce'

an

Interstate
the

on

on,

railroads''

re-,

organization and their return to
private ownership. His articles on
.politics and finance were pub¬
lished in the leading periodicals
throughout the world. In recent
years he was a regular contributor
Chronicle" and "Barron's Weekly."
Mr.. Prince was a member of the

Bond,

Bankers, and Westchester
Country Clubs, and of the New
York Society of Security Analysts.
Surviving him are his wife, the
former

Helen

Levy,

and

son,

a

Sidney Prince.
To

cars

them

the

tends its deep

statements

the

public

a

record

first-half output

„3
more

be

is to

relations

noted.

factor

LOUIS, Mo.

ex¬

,

William

—p

,;

■

J.

Board and Charles L. Fisher have
added

holdt

the staff

to

situation;

the

&

Midwest

;

by

practical

the

degree

In

a. Wilfred May
•
" " '

'

from the floor,
the

on

the bank

^meetings have

seen

Continued

..

s

on page

Board

Stock

was

Exchanges.
previously with

Looper & Co.

40

•of

Stanley A. Aldrich
We take pleasure in
announcing that

Elmer W. Hammell
is

now

associated with

us

Adee

a

meeting-day conflicts with other banks.

/ Year in.

and

r

.

on

dramatize an#

incite

Stock Exchange.

"may ^occasionally
'

.

crop

up,

concentrating

_

Fublic Stockholders Nos. One and Two

-

This tendency to concentrate

,

I management-stockholder

relationship, is substantiated by the
.newly issued. Annual Report of the brothers Gilbert, pioneers and
chief actors in championing
stockholders'; owner-rights. \ (13th

.Annual

Report-of

Stockholders'

Activities

at

.'»•

Omer

y

•

Malfroot has opened

to engage

business.

(formerly Detmer & Co.)
105 So. LaSalle Street*
/

BROKERS

Chicago 3, III.

Teletype CG 1429
•

*

UNDERWRITERS

-

-

He

in

.was

the

-

of¬

of

about

$1,000,

difference

the

pocketbooks.

being

borne

out

of

with

Minn. —Robert

L.

Smith, Jr. has formed the High¬

DEALERS

land -Park .Inv2stment

Co.

with

Offices at 781 South Cleveland to
>

.

Listed and unlisted securities




engage
ness.

Jin

151

the

:

investment

own

»

Not

being engaged in business

themselves

to

relentless

or a profession, they devote
meeting-attendance. In line with their

achievements, they raced to 130 meetings last year.
They list the names of 135 corporations whose "festivities" they ,
will grace during the next three months; two-a-day a-piece when *'
necessary.; In these "host" companies they themselves hold any¬
seven

to 100 shares.

engaging in

a

high-class

busi¬

warm-

-

for these activities, by lecturing on a circuit extending from
Harvard University to the Laurentian Mountains of Canada; while
up

brother John is initiating a women's

workshop as a kind of dress'
performances at coming meetings.

rehearsal for good

.

Proxy Handling

'

While the Gilberts make no solicitation

of proxies, in the in¬

stances of corporations

jn which they are stockholders, they are;
always willing to be entrusted with the form of proxy sent out by
the management.
However, the stockholder must substitute the

WE ANNOUNCE THAT

RICHARD

B. WALBERT

HAS
'*

BECOME
*

ASSOCIATED

WITH

US

AS

'

! '

l

'

'

SYNDICATE MANAGER

,

IN

'

MIDDLE

WEST

Blyth & Co., Inc.

(Special to The Financial Chronicle)

PAUL,

their

>•-

A Meeting Marathon

Co., Inc.

Highland Pk. Inv. Co.
ST.

-

The circulation of the Gilbert report has now reached 8,000
copies. The author-protagonists state that the cost of their print¬
ing and mailing, amounting to $2,000, is the only source of
expense entailed by their activities; that contributions of not more
than $3 per individual shareholder were received to the extent

i-

securities

formerly

J. Arthur Warner &

Meet¬

Corporation

ings—1952.), In the 131 pages of this booklet, the crusaders detail
their year's exploits, leavened by a liberal sprinkling of their cor¬
porate philosophy.

fices at 3 Maiden Lane, New York

TAYLOR & COMPANY

>

.

this subject blows-it
:
:

on

far out of proportion to its importance.

up

Omer Malfroot Opens

City,

.

runderstandably, elicits the, interest and protests of- the share-;
'holding owners. J Although some instances of compensation abuse v

& Co.,

York

•

y

"portantly occupies the time of the floor "discussants,and quite'

March 1

120 Broadway, New
City, members of the New

Trading-Department

J

.

out, the question of top salaries—easiest to
the vengeful anger of the frustrated—irh-

year

partner in Mallory,

York

in charge of our

discussion

*

~

Mallory, Adee Admits
will become

-

tjhe

on

sober and constructive suggestions for pay¬

more

Continued
„

,

.

addition to the frivolous and colorful items thrust

of Rein¬

Gardner,
400
Locust
Street, members of the New York
and

ever

customary

"Chronicle"

sympathy.

(Special to The Financial Chronicle)

ST.

an

Motivated

and

"Pre-season" Brother Lewis is

Mr.

still believes that factories might deliver

level,

for expediting the proceedings in lieu
filibustering, as much as by the ethics of

where from

assembled

were

115,643 in the prior
79,914 autos turned

business

the

';

•. %

shortages

re-examination, states "Ward's" which added, "a se¬
shortage may further complicate
the
production

agency

Senate

been

industry hopes for

-

.

•

attitude

and

according

in the year-ago week.

now

.

Reinholdt & Gardner Adds

last week, compared with a revised total of
week.
This was still 43% more than the
out

material

the past

Reports."

agency

acted'

He

the

/

authority

to the "Commercial and Financial

greater

even

■

-

„

as an

.;

expected, -by
to foster a new

was

right and left.

;

,

learned by "Iron Age" editors inter¬
viewing more than 100 purchasing agents in a dozen industrial
areas last week while Office of Price Stabilization was
sloughing

copper,

ing.

assured

already

such needs
'

atomic energy steel
by a system of simple priorities. Mills
publicly committed themselves to make' sure all

be

;

noted

season

attitude,

emphasis on the relatively super¬
organization and fmanc-? ficial as well as on the matters of fundamental importance in the

was

.railroad

'After CMP ends June 30, military and

have
_

He

protection—

his

ment of dividends quarterly instead of semi-annually; issuance* of /
'annual reports in advance of the annual meeting; and avoidance

York

(

Exchange.;; 'V J

On

flexible

agenda

•

•

being done for his

relationship,

fancied.

'centered

,

instances, made this impossible*

company-stockholder

by the presiding offi¬
toward the voluble stockholders' questions

f

-

distribution procedures and government directives had, in many

Protagonist

meetings of the banks out of the
be focused on the gatherings of

The goings-on at these conclaves at this

post-meeting reports.

clothing factory, He attended the
Metropolis Law School and New
York Law -School, receiving
an
LL.M. 'degree from the latter.* He
•

UNDERWAY

chairman is to an ever
allowing the public stock¬
"spokesmen" to talk. - Such talk is
still
largely centered on the top salaries,
merger
possibilities, addition of a woman
-director,
and
agitation |or
circulation.- of

.

needs

or

now

GETS

Free-Lance

holder

brought to Amer¬

;
;;
■; ; \
(4) Sad 1 /bar:in 1898./;
;:
Mr. Prince began his Wall Street
experience in other periods of steel shortage has taught many
career in
consumers, big and small, that their chances of getting steel are
1912; as an associate of
better if they have more than one source of
his brother Leo in the firm of L.
supply.
(5) After
.M.
Princer
i& /Co, In
more
than two years ofVssteel: distribution under CMP many
1924* he; ;
historic- customer relationships had become distorted or oblit- 4 founded
bis; own bond house,
-Theodore
Prince
*and
:; crated.
Now quick moves are being; make by : mills and cusCompany,
:
tomers to restore mutually advantageous connections.' (6) Under vwhich had four seats on the New?
f. o. b. methods of selling steel it is advantageous for consumers
York Stock Exchange and a memrto get their steel from nearby mills to- save freight costs.
CMP ;i bership on;the New York Curb;

r

real

the

Prince

Germany 78 years ago,

youth, he studied law in the eve¬
nings after his daytime work in a

Steel, copper and aluminum than they Jiadicomtemplated. : (3) .;
Knowing that steel mill policy is to generally take; care of-cus¬
tomers on a historic basis, they want to be on the books
so.;
mill will

Theodore

i

authority

"free steel" not already ,
allotted to ticket holders between open-ending of the Controlled
Materials Plan now and when it is finally dissolved June 30.
(2) Since they are now free of unit restrictions on their ownproduction, many steel consumers will be able to use even more

the

is

of

gives several reasons for the urgency
speed of their reaction among which are the following:

(1) They

what

greater

trade

His

need

books,"

and

the

and

cer

panies

This

highlight

more

5%

decontrol
steel

public attention will

luncheon.

unem¬

displayed a seasonal decline and were
under the prior week and 12% below the leveliof a year ago.

SEASON
and

Continuing recent trends, this year's bank
meetings have "broken out" with added frills,
as
the
news-photographer and multi-course

■a* ,>m<
Tm ** ■

#

ployment. insurance
:

fjji;

ago

year

close to the post-war record reached last month.
A
comparison reveals that it was about 6% below the all-

According to

MEETING

Stockholder

industrial

held

further

THE

The

City.

With the annual stockholder

However, ag¬

.

PRINCE

135 SOUTH

LA SALLE STREET

CHICAGO

on

page

48

and Financial Chronicle

,i The Commercial

.

.

Thursday, February 19,

.

1953

(778)

6

definite knowledge

Prosperity by Inflation
Neo-Classical and Keynesian Approach to
Business Stabilization

f

International

forecast

Dr. Hahn terms
this a Keynesian planning illusion, contending that if applied
to boom maladjustments, government spending will only lead
to secondary deflation and ruin of State's credit. Urges imme¬
diate steps toward restrictive monetary policy. Contends for
over a
year we have entered last critical phase of postwar
boom's upswing, with 1952 corresponding to 1926-1927.
deficit-spending and other inflationary devices.

SWITZERLAND —
United States is again flooded

The

with

forecasts

The

future.

of opinion,

consensus

until

least

at

economic

the

on

recently,
to

seems

run

The year
will be

of

which

mercantilism, this whole approach

were

highly perverse. They are
shocked
in the first place
by
distinctness of the forecasts and

eco¬

A

activity.
depression

of

moderate

nomic

bound
in

set

the Unpre¬
suffices to
recall
that in
an
economy still
free in essential parts, the mal¬

L. Albert Hahn

The boom will

mainly

end

three

for

Armament

reasons:

increase

the

i.e., $12 billion, during the whole
eight-year period from 1921 to

autumn

1929.

of

increase

of this

much

how

But

total assets and
of $20 billion in loans has been
financed
by
inflation?
Some,
but unfortunately not quite suffi¬

of

beginning of 1946 until
1948.
We shall also

the
end

the

of forecast¬

since

$26 billion- in

the
present
"second
at work. confront
that the postwar boom" with the "second cient, light can be shed on this
present studies of "Markets after postwar boom" from 1921 to 1929 question by the debit side of the
the
Defense
Expansion"
will alter the first war. Comparisons balance sheets of the commercial

ing
It

errors seems to be
is
highly probable

valueless

as

detail, history seems to repeat
itself in a somewhat frightening

roughly $143
lion, demand

economists further¬

1949

Since

Industrial Production

by the fatalism with which
the let-down of the economy after

Total

from

'

way.

prevailing approach shocks

The

more

unavoidable in
economy is not

nothing
For

an

production
Federal

a

time

to

the

by

to

demand

As people
genuinely in
deposits from which they

receive

no

has

of
the so-called

billion.

$40

hardly

short-comings

Index based upon

about $1-35 bil¬
deposits increasing

to

about $111 billion,
deposits from roughly

to

$94

and

risen
about
234.

Index

175

the

Whatever
an

measured

as

Reserve

increased

$35

industrial

known,

about

from

slump.
sort of

a

well

is

As

in theory,

There is, at least

able.

deposits with commercial
since 1949 from

banks

spent.

old-fashioned

banks.

periods" appear indeed illuminat¬
ing.
In spite of all difference
in

work

much money and

so

the two "second postwar

between

for all practical purposes,
as the wartime studies
"Markets after
the War" on

prove,

save

ever

interest,

increase

the

roughly
increase in
circulating bank money. We can
therefore
conclude that
of the

in

deposits may

demand

the

to

correspond

be, one
impressed $26 billion increase in the total
by this increase of almost 33%, assets of commercial banks, $17
ally
whipped.
It
is rather a
distribution of demand over time horse
that
a
reckless
driver especially if one considers that billion, or 657c, have been fi¬
the new top surpasses the top of nanced through price inflation.
called the business cycle — is
allows at times to run quicker
dependent on
the behavior of than its forces allow, with the the first postwar boom, at the
Bank Money Inflation
end of 1948, by roughly 40 points.
innumerable individual consumers result that a
speed below average
and
Looking at the situation from
producers.
Who
believes is occasionally needed in order
This
tremendous increase has
seriously
in
the possibility
of to recover the force spent during been achieved with an increase of the money side, we find that since
forecasting, for instance, future the above average speed. If the non
agricultural
employment 1949 demand deposits of all banks
consumer
spending
which,
di¬ present boom leads a year hence from roughly 50 to only 55 million have increased from about $82
rectly and indirectly, influences to a
or
only roughly
107c; billion to about $100 billion, or
depression this would there¬ persons
This compares
aggregate demand more than any¬ fore only prove that consumers' and with hardly any increase in almost by 25%,
thing else?
Especially after the and producers' demands had been the average weekly work-hours. with an increase from $18 to $21
unexpected saving spree of the allowed to grow too strong in It must therefore to a large ex¬ billion or only 157c during the
last two years which invalidated
1921 to
the present, that the horse had tent be the result of higher pro¬ eight-year period from

dictable."1

latest.

the

"Predicting

article

during 1954

at

I have dealt
lately in an

subjective feelings.
with
this illusion

is

to

A

wrong.

presentation as scientific
and objective, whereas they are the exhaustion of the momentary
at
best
only
rationalizations of stimuli is considered as unavoid¬
their

in

extent and

duration

from

seems

continued high
level

sort

be

to

out

law of necessity

a

the

of

an

This

billion.

of 1949,
the period usually referred to as
the "second
postwar boom"—the
first
postwar
boom
extending

oped

turned

strength

the

and

billion,

$140

present inflation as it has devel¬

chance that all forecasts by
the
overwhelming
majority of
economists,
analysts
and
stat¬
isticians
since
the
war
have

managed
to keep their
heads clear of the Keynesian neo-

of

shall

to

$114 to roughly
increase of $26
corresponds to an
from about $38 to $50,

roughly

from

support our view,
first examine the fea¬

order

tures

pure

of

that

and investments

the total of loans

on

we

a

an

result

the

with

securities;

very

In

only

always

can

holdings

the

in

by a decrease
of Government'

accompanied

was

flation.

highly subjective art, never
objective -science.
It is not

be

no

increase in loans

At that time the

pretty- - stable.
Since
demand' deposits and remained
low ones on time de¬ 1949, the holding of Government
no
longer
decreased
posits— and on change is even securities
considered.
This proves how far so that the net effect of the loan
off we are still from
what in increase of $20 billion, plus the
the' pre-easy-money days would increase of some other assets, is
an
increase in "total loans and
have appeared a necessary con¬
dition of any
fight against in¬ investments" of commercial banks

the

by

would have
interests are

steps

Still

to be taken.

for

subside, much

not

drastic

more

in

step

a

should

credits

Therefore forecasting

markets

luture

And they
believe in the ability of the Gov¬
ernment to prolong a boom in¬
definitely by deficit spending.
To
the
older
generation
of
economists having not forgotten
their neo-classical education and

1953

one

But if the demand

expectations paid
as also only

future

the

on

movements.

advance.

in

calculable

is

direction.

majority of the people is a neces¬
sary
concomitant of and one of
the
chief
reasons
for
cyclical

having

follows:

as

Errors

the right

doubtedly

the so-called
which can

incidentally,
climate,
change overnight.
does,

depression is in offing but that it supposedly will be cur¬
tailed through government's ability and willingness to use

wage

entrepreneurs,

the

political

that

GENEVA,

of

profit

the

therefore

"Economics of Illusion," Etc.

authority examines popular

monetary

general and future

—

ALBERT IIAHN, PH. D.

L.

By

Economist; Author

the future

of

and
monetary
policy
in
particular.
For they determine
the all-im¬
portant cost calculations — and
in

Here

it

a

fail

cannot

if not continu¬

maximum speed

volume

physical

from

lame horse that slows down

may

be

to

very

—

industrial

will decline,

spending

enlarged and im¬

for

investment

proved

production

reached

its

have

will
housing

peak,

will

struction

A

lower.

be

con¬
pro¬

depression, however,
is
not to be feared if not for any
other reasons than because
the

tracted

government will be able and will¬

demand

ing to replace dwindling

by deficit spending and other de¬
vices.
To

generation of
up
to think

younger

a

brought

economists

along the lines of Keynesian em¬
ployment theory, such a forecast
and argumentation seem entirely
normal and in
order.
For they
consider

ing

on

propensities

on

to

employment as depend¬

demand,

demand in turn
to

consume

invest pre-destined

and

at least

or

-

should

it

all

inflation

forecasts

be

clear

everyone

ductivity through rationalization 1929.
of the productive process, higher
But in order to judge the ex¬
consumer's "waiting"
the assistance of the Federal Re¬ capital investment and maximal tent
of
inflation not only
the
optimal
utilization of all quantity but also the velocity of
ing" with spending can be less serve System, have—through the and
resources
through their full em¬ turnover of bank money has to
accurately forecast than the granting of inflationary credits—
created in the present an excess ployment.
taken into
account.
The annual
weather six or 12 months hence.
of effective
demand which will
An achievement of this sort is rate of turnover of demand de¬
And as
to investment-spending, be
lacking at a later date.
If. as such, of course, highly com¬ posits at member banks in New
no
prediction is possible without this is correct, then the logical mendable.
There remains, how¬ York increased since 1949 from
attitude toward a future depres¬ ever, the question whether and about 28 to about 36 and in other
1 "The

to

that the
or "hurry¬

Freeman"—Oct. 6,

1952.

other

sion

is

to

forecast

to

it

with:

banks,

fatalistically,

prevent

putting

by

to

to

what

rather

is

due

brakes

of

and

but

it

before

boom

enters

its

excessive phase.

Kingdom of Denmark
External Loan Gold Bonds, Due January 1, 1942
Thirty Year 5Vt% External Loan Gold Bonds, Due August 1, 1955
Thirty-Four Year 4V?.% External Loan Gold Bonds, Due April 15, 1962
Twenty Year 6%

Danish Consolidated

cerning

June 1, 1952

(Kongeriget Danmarks

Hypotekbank)

Due December

IX, of 1927

1, 1972

on

and unpaid, will

The
drawn

Five

be paid

the separate

City

on or

notice that all Kingdom of Denmark
Gold Bonds. Due January 1, 1942, that are outstanding
after March 16, 1953.
For further information, reference

notice.

of Copenhagen

will shortly publish separate notice that

by lot for payment $p,500,000 principal amount
5% Cold Bonds, Due June 1, 1952.
For

Year

made to

the separate

there has been

of City of Copenhagen Twentyfurther information, reference is

or

excess

of the principal amount thereof and accrued

interest,

extent of

or

not

any

further similar acquisitions will occur must

depend upon the

Denmark's dollar resources in the future.
MINISTRY OF FINANCE OF THE
KINGDOM

Copenhagen, February

1 7.

1953.




valuable

of

used

be

am¬

against the

secondary deflation, and

leading ' cities
about

from

about

18 to

average therefore
between 20 and 30%.

22,

on

somewhat

A

i.e.

Prosperity
is

Phase
this

all

not

theoretical interest?
rent

or

reached

the

tive

even

Has the

have to be

personally think
high time to

over¬

restric¬

applied?

that
take

restrictive

a

cur¬

really

already

indeed

of

only

point where

measures

toward

OF DENMARK

to

it is
steps

monetary

the

future.

I

let the boom

believe

that

if

just
repeating the
mistakes
of
the
war, which cost the dollar 50% of
its purchasing power, and of the
period following the outbreak of
we

the

Korean

crease

in

billion

lion

to

dollars,
This

507c.

by

compares

People

with "bank
cash.

of course, not only
money" but also with

pay,

Currency in circulation in¬

creased
about

during

biiiion,

our

period

from

billion to about $30
rougnly 107c.
Thus

$27
or

roughly

bil¬

well over $60

i.e.

more

with

than

an

in¬

war.

run,

we

The

are

recent

the rediscount

rate

in¬
un¬

boom.

1921-29

the

Not

phase

prosperity

reached

loans have increased from

Inflation

Currency

inflation

has

strongly

progressed since 1949? Examining
developments
in
the
field
of

$40

roughly 50%.

Inflation

Loan
How

may

"effective

from, roughly, $25 to $35
billion during the eight years of

Crucial Moment in the Current

But

We

crease

State.

the

policy which would transfer parts
of the present effective demand

by redemption (not later than in 1954).

Whether

of

I

balance, about $3,300,000, will be applied to the acquisition of bonds of the
other four issues mentioned above, apportioned with regard to the amounts outstanding,
The

in

to

so-called

1

notice.

by purchase at prices not

exhaustion

munition

this date published separate

Twenty Year 6% External Loan
is made to

inflation, and also whether the
high production could not
have
been
obtained without it.

spending.

ult.imat.elv to the ruin of the credit

Denmark has set aside about $9,600,000 to be applied
"or the calendar year 1953 to the retirement and cancellation of bonds of the abovedescribed Loans, in the amounts and in the manner referred to below, accrued interest
being supplied from other funds.
Notice is hereby given that

Denmark has

artificial

by

deficit

less

Sinking Fund External Gold Bonds Series

conditions

devices such
They rather money and credit our attention
believe
that
such
spending,
if is immediately drawn to the ap¬
begun before the maladjustments palling increase in loans of com¬
banks
during the last
of the preceding boom have been mercial
These
liquidated, can only lead to need¬ three and a half years.

as

Denmark

ability of govern¬
prolong a boom indefi¬

the

to

nitely

Bonds, Due November 1, 1955

Mortgage Bank of the Kingdom of

Forty-Five Year 5%

ments

Municipal Loan

Thirty-Year 5Vj> % External Sinking Fund Gold

achievement

special

the

same

they share still less the optimism
of the Keynesian
planners con¬

City of Copenhagen
Twenty-Five Year 5% Gold Bonds, Due

this

extent

to

therefore conclude that
demand"
emanating
other
words,
whether
"we from bank money during a unit
If neo-classical
economists do In
not share the fatalism concerning never had it so good" only be¬ of time has increased from 82 to
the
inevitability
of the slump, cause of an-unnecessary-iniiation. say 1257c of $100=$125 billion,
the

on

Notice to the Holders of:

!

not

it

In

time.

in

the

words,

await

in

reined

been

not

the

all

additional

loans

granted during boom periods are
inflationary i.e. granted through
new demand deposits, new "bank
money."
loans

are

Some parts of
bank
granted out of genuine

savings and are therefore not at
all
inflationary, as for instance

granted by savings
against mortgages.

loans

banks

is, theoretically and practi¬
extremely difficult to de¬
cide which part of
an
increase
in loans of commercial banks is
It

"inflationary"

and

loans

are

which
not.
not infla¬

tionary which only replace
in the balance sheets of
as

happened

from

assets

the banks,

1946

FUNCTIONS
OF EVERY KIND
I

Private

rooms

for 10

to

3000.

Wonderful values! 5min.from

cally,

Obviously,

COMPANY

to 1949.

downtown N.Y. Clark St.
7th Ave. IRT sub.

in

sta.

hotel.

MAin 4-5000.

HOTEL

J

st. George
Clark St.,

N. H. Free, Mgr.
BING &

BING,

Brooklyn

C. R. Maison, Bqi Mgr.

Inc., Management

.Volume 177

Number 5196

currency has increased
than bank money.
It

is

interesting

.

to

From

compare

increased from $18 tp $21
billion, or 15%, currency in cir¬
culation did not increase at
all;
it even declined
slightly. Tne ob¬
explanation is that

war

did

1945

currency in
dropped/ The return

currency
has

circulating

circulating

why

the

nists,

ECA

quan¬

Price

<•

What

roughly

and money

about

of the

to

Wholesale

first

risen

190%

until

—

prices

at

rose

spring 1951

from

—

about 99% to 115% of the 1947-49

They

averages.

clined
sult

to

wholesale
the

over

creased

price

since

de¬

110%; with the net

that

have

have

inflation

weaker

than

too,
period in¬

by

12%.

has

been

much

and

credit

money

Thus

inflation.
This development has again

In

boom

period

spite of the

flation,
m a

i

of

in

1925

from

where

can

is

see,

now

the

me

and

give

concern

old

are

that
for

the
as

far

Democrats who say privately he is right, are afraid to stick
their necks out for fear of what may happen. Several cattle grow¬

as

ers'

tend to take their minds off globalism-and

are

Carlisle Bargeron

Coolidge

global leadership;

no

and

terings that Secretary Benson must go,
that he' is to go.

figurative trek
*

*

over

seem

to have been

making these

many years.

never

his

tic to have

a

It

living.

we

haveibeen

one

was

substance and I

of

an

once

again

a

This

body poli¬

a very

a

am

satisfied it is the

same

now.

%

.

upon

the convention

certain to insure Hoover's defeat.

and

the

Washington

newspapermen

of angry

farmers.

When the convention

there,

were

we

and

looking out

least

prominent factor in the Adminis¬

on

the streets

was

the parade of angry farmers, at

The farmers, it

hundred, and attired in brand new overalls.

a

seemed, were getting ready to go to Florida in their Cadillacs for

Now, prices of foodstuffs are coming down;

the winter.

good steak is within reach of the average housewife.

re-

and

then

returned

they started.

This

tion without inflation"

»-■

-

any

no

circumstances to be construed

-as an

offer to sell,

or as a

solicitation of

an

offer to buy

of these securities* The offering is made only by the Prospectus,

persistent

a

on

This announcement is under

to

FEBRUARY 17,

"infla¬

was

195.3

at that

time widely discussed and various

explanations

advanced—the

being that productivity
hour had

per

best

1,000,000 Shares

man-

increased simultaneous¬

ly.

Whatever the explanation, the
development during the twenties
that price sta¬
quite
commensurable
with strong inflation.
Price sta¬
bility alone can therefore never

bility

Mohawk Power

ara

shows in any case

is

the absence

prove

of

Corporation

Common Stock

(without

in¬

money

value)

par

flation.

"Money Inflation With and
Without Price Inflation"

Money

inflation

since

Price
1919

$27.50

per

Share

which—taking in account the in¬
crease
—was

in the

velocity of turnover

in the magnitude of

roughly
50%, has undoubtedly been partly
a
"money inflation with price
inflation," the price level having

Copies of the Prospectus may be obtained in any State in which this announcement is circulated from only
of the undersigned or other dealers or brokers as may lawfully offer these securities in such State.

such

risen

by roughly 12%. But it has
obviously been, too—repeating the
phenomenon of the twenties —

partly
out

"money

a

price

inflation

inflation."

this is the

with¬
far

As

tary demand must have spent it¬
self

not

higher

prices

but

the

larger product

which

indeed

on

the

to

came

markets

as

on

result

a

A. C.

Incorporated

Incorporated

mentioned

This -leads

to

tant

question:

tion

going

bility

an

above.

the

Is

very

Laurence M. Marks 8C Co.

infla¬
price sta¬

by

servative economists.

given

a

of the

clear

even

I

con¬

think the

twenties have

answer.

Continued




In spite of
on

Salomon Bros. 8C Hutzler

Does

especially that of a later defla¬
tionary slump? In other words,
is inflated money "neutral mon¬
ey" as long as it has no effect on
the price level?
This is main¬

experiences

Carl M.

Loeb, Rhoades & Co.

/

Reynolds & Co.

Paine, Webber, Jackson & Curtis

impor¬

along with
Inflation at all?-

nowadays

a

t

;

money

a

it create all the dangers of a money
inflation
with
price
inflation,

tained

(Incorporated)

r

Hornblower 8C Weeks

Hemphill, Noyes & Co.

Hallgarten & Co.

Central Republic Company

A. G. Becker & Co.

Allyn and Company

of the tremendous increase in pro¬
duction

White, Weld 3C Co.

Kidder, Peabody 8C Co.

Lynch, Pierce, Fenner & Beane

as

the higher mone¬

case

Merrill

page

39

Shields 8t Company

Schoellkopf, Hutton & Pomeroy, Inc.

American Securities Corporation

Stone & Webster Securities

Corporation

Schwabacher & Co.

Spencer Trask & Co.

Coffin & Burr

R. W. Pressprich & Co.
Francis I. duPont & Co.

Incorporated

Johnston, Lemon 8iCo.

kept-

asking when the farmers were to arrive. One day we heard a band

in¬

prices

is.

he should tell his chief that
similar hullabaloo cause him to lose a single
naps.
Coolidge knew it was all froth with

impending .march

was

came

complaining about the high cost of

of the most effective indictments against the

Administration,

support

nois, fbr months before the convention in Kansas City we heard

"farm problem."

For years

Truman

our

their

but

Republican nomination against former Governor Lowden of Illi¬

spending^hich

Here is something

It makes for the health of

rescue

^n 1928. when. Hoover was the successful candidate for the

right at home; begone the shenanigans of Premier Nehru and the
machinations of Stalin.

let

afternoon

jpublicans.

tj

the whole world, into the alleys of backward

civilizations and through the saturnalia of foreign
I

his

to

come

the McNaryHaugen bill sponsored by the late Senator McNary of Oregon, and
Congressman Haugen of the 10th Iowa District. When Coolidge
calmly vetoed it after it had taken several months for passage, the
>redictions were free and wild, that this was the end of the-

gossip-column hints

I just love it; it brings me back home after

have

by the noise.

Old timers will remember the furore stirred up by

nating from embattled friends of the farmers and there are mut-

'

of

one

bleats and bellows ema¬

angry

out

The Secretary should know and

lot of nostalgic mirth.

Washington there

associations

drowned

to the younger generation

a

any

some

pre¬

"farm problem." It
inexpensive to have

timers it should afford

number of them, say he is absolutely right in
But the Democrats, brilliant in opposition,
making the welkins ring and even those Republicans and even

Congress,

the stand he is taking.

rise

solution

to come.

relatively

and

a

of

in-and-out

an

hopes of

"problem"

tration's overthrow.

practically unchanged
during the whole period, whereas
wholesale prices after some in¬
fall

In the downpour Secretary Benson stands without an um¬
brella, and apparently without a good sense of publicity. Members

d

n e

crease

subsidies?

or

1921-29.

strong credit

consumers'

enjoy

will
as

an

interesting parallel in the second
postwar

interest in EDC

re¬

prices,

whole

roughly

more

the exclusion of the devilish
thinking they have been experiencing these recent years. For- us

credit

have

wares that which he has to pay for what he buys.
'The government gives subsidies to industry through the tariff and
recently tax write-offs for new plants; the aviation industry
^ets subsidies and so on and on. Why shouldn't the farmer get

getting for his

seem

it should come to preoccupy them to

1935-39 averages—or about

12%.

eye

and

about

reader

significant to

^eems

Around

prices

170%

things

labor''front,

something like that again on the front pages.

inflation?

Consumers'
from

bil¬

Inflation

a

was getting so much for his output and the consumer''
paid twice the price. Once again we are hearing talk about the
middleman and the need for abolishing him. The farmer is not

The farmer

anything else connected with Europe.

good

It will

the price level of such

on

the
is

have been the effects

now

much

not

dominant

from

$20

the

on

fall. for. sometime
It

balances of member banks
the Federal Reserve Ranks;

increased

is
or

and

reserve

roughly $16 to
lion, or 25%.

and,

However, Korea
public attention,

by the movements of the
counterpart of bank deposits, the

have

breaking around 'the head of Secretary , of
This is where I came in, way back in the
The State Department is still on the front pages, though

losing its effectiveness-; 'the milder mouthings of the good old A. F. of L. are returning
to dominance. The editors will soon ,learn, that

now

thdn

firmed

These

is

Benson.

is

tity of bank money has increased
almost 25% is,
incidentally, con¬

with

istration. But it never proved a source of political discomfort until
everything went to pieces with the depression. It wasn't just e
farm problem then; everything was a problem.
In those days as now the same statistics were being rolled out.

returning to "normalcy"

are

we

reasonably quietr The shrill voice of the CIO

there

that

and

apparently a struggle to stay there, with
interest rapidly waning in sheltered Commu¬

currency.

contention

that

go back through the newspaper files
Coolfdge Administration, get comfort from them himself,
then bundle them up nicely and take them over to the White

House for the General's perusal. There was a "raging" prairie fire :
all through the Harding, Coolidge, and on into the Hoover Admin-;

it is

money

faster

surest signs

that:

storm

-'twenties.

hoarded

bank

much

the

Agriculture

circulation
of

explain

may

increased

Our

is

1949, when
deposits
increased

demand

again

One of the

to

whereas

of the News

By CARLISLE BARGERON

it incidentally also
the first- post war

from

Secretary Benson should
the

of

of

some

as

during

boom

the noise in Washington. Instead of its being a feather in
new Administration's cap, it is its first real
pain in the neck.
to

Washington

Ahead

money
hoarded during the
was
still coming back into

circulation,

rejoicing in the land; is it a feather in the cap of the
No, indeed, not if we are to harken
the

Eisenhower Administration?

money

the

there

Is

much less

what happened during the
period
from 1921 to 1929.
Although bank

vious

7

(779)

The Commercial and Financial Chronicle

.

.

Laird, Bissell & Meeds

Shearson, Hammill & Co.

Stroud
& Company
Incorporated

8

The Commercial and Financial Chronicle

(780)

Lakeside

Laboratories, Inc.—Report—Loewi

Marathon

send interested parties

memorandum

on

Chicago

and

Brands

EVENTS

Also available are bulletins on

Y.

New York 6, N.

way,

Recommendations & Literature
to

COMING

Corporation—Bulletin—Goodbody & Co., 115 Broad¬

Standard

understood that the firms mentioned

Co., 225 East

&

report on Pabst Brewing Company.

Dealer-Broker Investment

North

&

Western,

and

a

&

Feb. 20,

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

Industry

—

Analysis

60

Co.,

&

Hentz

H.

—

of Philadelphia

Sons, 173 Portage Avenue, East, Winnipeg, Man., Canada
Royal Bank Building, Toronto, Ont., Canada.

Packard-Bell Company—Revised

Street, New York 4, N. Y. Also available is a brief
review of Oil Industry Prospects and an analysis of Canadian
Beaver

&

ter Dinner at the

issues—William
Los

selected

Stock Market—List of 20 specially

of the

Aristocrats

& Co.,

&

Staats

R.

—

March 6, 1953 (Toronto,

10 Post Office Square, Boston 9,

Toronto

Savannah Sugar Refining Corporation

Accessories—Analysis in current issue of
"Market Pointers"—Francis I. du Pont & Co., 7 Wall Street

Chisholm

&

Co.,

—

Analysis

—

—' Analysis — Rothschild & Com¬
/
! < .*♦

York

Bank
ton

Bank

Stocks—Analysis of investment Qualities—The First Bos¬

and

analysis

of

14

,

leading

bank

,

'

120 Broadway, New York

•'''

■

" ;

"

Bond Yields—Discussion of the restoration of

yields—Thomson

NATIONAL SECURITY TRADERS ASSOCIATION, INC.
officers

The

members

and

of

the

executive

Spring Meeting at the Plaza Hotel.

council

of

the
,

Gross

of

Government

for

Income

New

17

York

Sources

and

Portfolios

Bond

*

of

City Banks—Laird, Bissell

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

Dividends for More Than
the American

American
New

a

National Security Traders Association met in Chicago on Jan. 25
to formulate plans for this year and select chairmen for the stand-

•

&

ing committees.

The following appointments were made:

•

Securities

Co.,

Ltd.,

ing.

National
York 4,

Quotation

showing

up-to-date

an

\

.

.

.

(White Sulphur

Investment Bankers Association

com¬

'

Jnc.,

Front

46
"

Street,
\

Spring

meeting

at

the Greenbrier Hotel.

Quotation Bureau Averages, both as to
over
a
13-year period—

New York.

America

of

June 25-26, 1953 (Cincinnati, Ohio)

performance

Eureau,

Exchange

Springs, W. Va.)

parison between the listed industrial stocks used in the DowJones Averages and the 33 over-the-counter industrial stocks
market

Stock

of

Board of Governors Meet¬

May 13-16, 1953

"

Over-the-Countcr Index—Folder

used in the National

'

Association

Nihonbashi,

Kabuto-cho,

1-1

Chuo-ku, Tokyo, Japan.

and

Astoria.

Firms

Japan—Tabulation of figures for various industries in Japan—

yield

Security Traders Association of
New York dinner at the Waldorf-

1 May 11-13, 1953 (St. Louis, Mo.)

Exchange, by industrial classification—
Exchange, 86 Trinity Place, New York 6,

York.

Nomura

(New York City)

May 8, 1953

Decade—Common stocks traded on

Stock

Stock

Texas Group Investment Bank¬
Association of American

ers
,

McKinnon, 11 Wall Street, New York 5, N. Y.

Breakdown

Dealer*

V St. • Louis
Municipal
Group annual outing.

t

Incorporation, 63 Wall Street, New York 5, N. Y.

&

,

(St. Louis, Mo.)

,

May 7-8, 1953 <San Antonio, Tex.)

Analyzer—Comparative tabulation—Geyer & Co.,

Stock

•

April 30-May 1, 1953

Corporation, 100 Broadway, New York 5, N. Y.

5, New York.
Bank

convention at the Bellevue-Stratford Hotel.

Stocks—Comparison

annual

sixth

Societies

Analysts

5, N. Y.

stocks—Laird, Bissell & Meeds,

Hotel.

National Federation of Financial

135 South La Salle Street, Chicago 3, 111.

~

New

Associa¬

April 12-15, 1953 (Phila., Pa.)

St.,

Banks—Comparative figures—A. M. Kidder & Co., 1 Wall

Canada)

Bond Traders

the King Edward

Inc., Savannah Bank & Trust Bldg., Sa¬

Stewart-Warner Corporation
pany,

dinner

tion Twentieth Annual Dinner at

Varnedoe,

vannah, Ga.

Available in the current issue of "Glean¬
ings" is a brief analysis of Grayson Robinson Stores, United
States Steel Corp., and a list of High Yield Preferred Stocks.
5, N. Y.

(Boston, Mass.)

1953

meeting at the Boston Yacht Club.

Mass.

Automobile Parts and

25,

Boston Investment Club

Analysis and review of the Cement

Industry—Lerner & Co.,

Angeles 14, Calif.

New York

Feb,

17 Wall Street, New York 5, N. Y.

Riverside Cement Co.

640 South Spring Street,

Co.,

annual Mid-Win¬
Benjamin Frank¬

lin Hotel.

report—J. R. Williston, Bruce

Co., 530 West Sixth Street, Los Angeles 14, Calif.

Puget Sound Power & Light—Memorandum—Kidder, Peabody

Superior Oil of California, Ltd.

(Philadelphia, Pa.)

1953

Investment Traders Association

Co., Ltd.—Review—James Richardson

Products

Steel

Ontario

the following literature:

and

Conditioning:

Field

Investment

In

H. J. Heinz Co.

Molybdenum Corporation of America—Bulletin—Spencer Trask

will he pleased

&

Air

Thursday, February 19, 1953

..

Street, Milwaukee 2, Wis. Also available is a special

Mason

It is

.

Municipal Bond Dealers Group
annual party at the

New

of Cincinnati

'

Kenwood

1953—Special offer for four weekly edi¬
"Ratings & Reports," and analysis of an undervalued
risk-type situation, summary of recommendations on 561
leading common stocks, monthly report on supervised model

Harold

tions of

J.

Wm.

B. Smith

Henry Oetjen

Jr.

Burke,

Club.

Country

Recommendations for

Sept. 14, 1953 (Sun Valley, Idaho)
National Security Traders Asso¬
ciation 20th Annual Convention.

fund, commentary of price trends, and four issues of weekly
supplement reporting on new developments affecting super¬
vised stocks and special situations between the regular "Rat¬
ings & Reports"—$5—Arnold Bernhard & Co., Inc., 5 East
44th St., New York 17, N. Y.

Oct. 14-16

(Louisville, Ky.)

Association
Firms

Board

Stock

of

i

Exchange

of Governors Meet¬

ing.

Steel

Industry—Analysis of economic and financial aspects
(prepared under sponsorship of Crucible Steel Company of
America)—George S. Armstrong & Co., Inc., 52 Wall Street,
New York

Nov. 29-Dec. 4, 1953

(Hollywood, Fla.)
Investment Bankers Association

5, N. Y.

of America Annual Convention at

$

Baltimore Transit
50

Broad

Brunner
<

Company—Analysis—J. V. Manganaro

Street, New York 4, N. Y.

Manufacturing

William

Celanese

the Hollywood

Co.,

Co.—Analysis—De

Street, New York 5, N. Y.
Corp.

Pasquale

Co.,

Maine

With Williston, Bruce

57

(Special to Thb Financial Chronicle)

Power

r

&

South

Broad

'

&
"

West—Memorandum-4josephthal

Broadway, New York 5, N. Y.

Distillers

Haupt

Co.,

Corporate and Legislative-^—Win. J. Burke, Jr., May &

Publicity—John

120

&

become

af¬

Williston, Bruce

Co., Russ Building.

Y.
McLaughlin, Reuss & Co.,

F.

McLaughlin,

New York.

Co., 30

•

>

land, Ore.
Municipal—Edward V. Vallely, John Nuveen & Co.,

Authority of County of Franklin, Pa. — Analysis—
McDougal & Condon, Inc., 208 South La Salle Street Chicago
4, 111.
•

We

offer

as

f

r^An
name

i

energetic program has already been started to bring the
possible to the .public, the in¬

The Association will also work to

securities members trade.
prevent the passage of any

legislation that, is not in the best interest of the industry, or that
would be burdensome
•

.

or

and the

N. A.

"

STANDARD SULPHUR

;

COMPANY

membership, both in¬

dividual and through newly-formed affiliates.
The Association will collaborate with the
A.

speculation

costly.

Every effort will be made to expand

I. B.

a

Chicago

of the Association as often as

dustry, and the corporations in whose

Company, Niagara Falls, N. Y.

Trading Markets in-

Gannon,

Calif.—Ray¬

has

Membership—Donald C. Sloan, Donald C. Sloan & Co., Port¬

Hooker Electrochemical Company—1952 annual report—Hooker

Firm

Scollin

Public Relations—Henry Oetjen, McGinnis & Co., N.

& Co.,

Housing

H.

filiated with J. R.

Boston.

Ill

Fiduciary Management, Inc.—Report—Eisele & King, Libaire,
Stout & Co., 50 Broadway, New York
4, N. Y.
Electrochemical

Advertising—Harold B. Smith, Pershing & Co., N. Y.
^

'

&

SAN FRANCISCO,

Sloan

C.

mond

'

Corp.-Seagrams—Memorandum—Herzfeld
Street, New York 4, N. Y.

Donald

John F. McLaughlin

of

Co.—Analysis—Ira
Broadway, New York 6, N. Y.
1
'
'

Central

:

,

America—Memorandum—Paul H. Davis &
Co., 10 South La Salle Street, Chicago 3, 111. Also available
is a memorandum on Pullman, Inc.? -u-

Central

Beach Hotel.

S.

D.

in

a

unified

Common

A.

S.

E.

Stock

F., the

effort to arrive at an

equitable solution in the exercise of rights that will be less costly

possibly give proper remuneration to all dealers and brokers
phase of the business. A special committee has been ap¬
pointed in this endeavor, headed by Phillip J. Clark of Amos
Sudler & Co., Denver, and John M. Hudson of Thayer Baker & Co.,
Philadelphia.
The 20th Annual Convention will be held at Sun Valley,

and

Price $1.00

per

Share

in .this,

(a) Operating Utilities

(b)

Natural Gas Companies
Transmission

&

Producing

Troster, Singer & Co.
Members;

74

Y,^Security Dealers

Association

Trinity Place, New York 6, N. Y.

i- «£)




1

Sold only

under Prospectus

.«

Idaho, the week of Sept. 14. An unusually large attendance is an¬
ticipated as some extraordinary plans are underway to make this
the greatest ever.
A special convention committee has been ap¬
pointed for this event linger the Chairmanship of Edward H.
Welch, Sincere & Co., Chicago. Cooperating with him also are a
reception committee headed by William Perry Brown, Newman
Brown & Co., New Orleans, and a special committee for ladies

QontvuueiLpn page 49

Gearhart & Otis, Inc.
45 Nassau St., New York
WOrth

5, N. Y.

4-3300

S- w

Volume 177

Number 5196

.

.

The Commercial and Financial Chronicle

.

(781)

It

*?x J,oa,4 -°J afc)?olute maximum, graphic equipment,

Pays to Speculate—

the $1 dividend is currently being
earned
over
three times over

Obviously, earnings will
sharply upon the demise of

■

Off the Beaten Ttack!

prof its

expandmg electronics

Specialist in Unlisted Securities

Iristory of

case

fund set

a

for

up

Mr. Sanford reviews, IS months after its beginning, market
action of the stocks selected in the

portion of fund's holdings,

recorded, which

Fifteen

months

father,
getting along in years, decided to
set up an
♦

more

our

less

or

have

to

appears

frozen
into

hazardous problem

A certain amount of

.flation

economy.

considerably
,the 1960s.
However, a figure
was

set

cost

of

as

a

four

of

target to

each

years

in-

of

with

tential

any

for

use

and

rewards

some

handsome

an

?

the

Perhaps

analog voltage scaler and

the

solution

easiest

Corp

a

,

herent
are not

yet clearly defined

the

if

father

had

had

$69,000, to 1952 when they reached
a new high of $780,000. There are
only 117,100 shares of common

over recent years,

stock

doubts

however, raised

that

the

ultimate

f astern
nf

Air

problem would have
been relatively simple. There are
"plenty of security analysts who
believe that such standard

pects, at the time purchases

hL

hPpn

The

issues

Chemical, General Elec»trie, Owen s-Corning-Fibreglas,
Union Carbide, Sylvania Electric,
the next 12 years.
But

there

$6,800

with

fund.

from

available

was

which

to

only

to

be

securities

of

Thus, the problem became

take

a

modicum

No. Shares

90

100
40

of

luck

well

as

this

nature,
most
part

already been closed out:

Company

Actual Cost

American Phenolic Corp
Atomic Instrument

ai.ew

_

utilizing the

120

Federal Mfg. &

396

425

1,080

408

465
200

Engin

20

Glass Fibers Inc

318

25

Haile Mines

161

140

35

Marquardt Aircraft

618

645

20

Michigan Chemical

315

275

22

Northrop Aircraft

90

Plastic Wire &

25

Pubco Development (warrants)Purolator Products

146

160

22

420

360

20

Reaction Motors

325

320

22

Southwest Gas

398

485

_

_

_

Cable

_

21

Producing
Taylor Oil & Gas

40

Tracerlab, Inc.

40

Ultrasonic

25

Walt Disney Productions

Corp.

350

1,235

565

516

.520

390

500

221

225

$8,521

$9,615

__

—

326
500

360
___

Totals

t

_

Profit accepted 25 Canadian Admiral Ltd
Profit accepted 25 Collins Radio
Profit accepted 25 Hoffman Radio
Profit accepted

*

wells,

In ad-

largest

dustry,

it has already become, manufacturers of DDT Sales have
competitive.
Results
to increased 60% in the l?st four
spotty, years. Company's financial posibut
1953
sboidd give a
clearer tion is expectionally strong
No
indication of the future prospects dividends have been paid to date,

highly
date

have been somewhat

0f ^be

company,

about

now

in 1951.

as

wbat

on

since capacity is

three

times

Capitalization is

tbe

beavy side

than 925 400

Long-range

some-

wbb

Commin

but expansion appears now to
have been largely completed,

great

as

prospects

appear

favorable

n0

shares

Northrop

woruirop

nntdtnnriin?

Aircraft-

Aircraft.

Ori«inallv

untoinaliy,

tract wlth the U* S- Government

Hadioplane Co., the leading maker

of radio-controlled target planes
for the armed services, was purchased. The company is also an

virissi-

in

rpppnt

!v h!t 1 J

•

„

rru-

u

,,

Haile Mines: This holding

com-

pany owns 70% ot Tungsten Mmlng
General Electric
ownlnS the remaining 30%. This
.

important factor in the guided
missile field, but detailed infor-

holding

cern

with

tracts
deiiver

firm

the

from

10-year

the

mation

con-

Government
property

on

this subject is of

a

re-

to stricted nature. Dollar backlog

per

share is

ap-

still

among

the

largest

and earnings in

to any dilution of the
manganese
in
the
form
of excess of $5 per share are indiequity. Daity receipts riodldes carrying 45% manganese, cated for the current year.
Pas^eAd. the. $500,000 mark for the and als0 to upgrade approxiPlastic
Wire
&
CableThis
flr^ tl^ ld January of this year mately 275,000 tons of Govern- sman Connecticut company had a
a"d a11 indications are that 1953 ment stockpile ore. Earnings this

7'"

ne™e®'ntalSSMarket

maker

of

a

rather indifferent

several

years

and

cqmeras

This

as

a

photo-

announcement

Very

year
are expected to rise sharply'
a
d

n

inauguration

of

dividends

months

modest

tic-covered
cables-

awav

beginning

onlv

building

radio

wires

instrument

pioneer in the field of

cords> flexible electric cords, cord

ram-jet engines. This method of

sets and w*res and cables for speContinued on page 33

pany

is

a

propulsion

is not

is believed

to

be,

at

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

an

$40,000,000

Consolidated Edison
of New

Company

York, Inc.

✓

Refunding Mortgage Bonds, 334% Series I,
due February 1, 1983

139

Dated

February 1, 1953

232
526

iPrice 10234% and accrued interest

i

$1,549

—

Recapitulation

Original fund

$6,800

—

-

Profits accepted

1,549

Dividends received

.1

Total
j

174

Disregarding the dividends re¬ folio which are still regained, a
ceived, the fund has an apparent brief comment on each company
appreciation of 38% for the first is appended. If I were making
15 months of its existence.
Ob¬ up a portfolio of stocks for a sim¬
viously, this is too rapid a pace ilar purpose today 1 would still
to

be

maintained

over

a

very

long period. It compares with an
appreciation of about 10% in the
Industrial

Dow-Jones

during the
On

the

same

averages

which

that

readers
reasons

prompted the selection of

the securities chosen for the port•The
vestors'

author

is

Research

Manager of the In¬
Department of a New

"York investment house. He is

a

specialist

Unlisted securities*—EDITOR.




select

these

American

same

issues.

Phenolic:

and

aircraft

has

dynamic

The

electrical
quency

company

GLORE, FORGAN A CO.

BACHE A CO.

L. F. ROTHSCHILD A CO.

BAXTER, WILLIAMS A CO.

WERTHEIM A CO,

R. L. DAY A CO.

HIRSCH A CO.

NEW

YORK

HANSEATIC CORPORATION

AUCHINCLOSS, PARKER A REDPATH

connectors,

high

fre¬

coaxial cables, radio and

industrial

electron

tube

antenna

WILLIAM

BLAIR A COMPANY

J. C. BRADFORD A CO.

COOLEY A COMPANY

makes
E. F. HUTTON A COMPANY
WM. E. POLLOCK A

KEAN, TAYLOR A CO.

JOHNSTON, LEMON A CO.

CO., INC.

.

SCHWABACHER A CO*.

VAN ALSTYNE, NOEL A CO.

sockets,

microphone connectors, antennas
-

DICK A MERLE-SMITH

sales

million.

and

BEAR, STEARNS A CO.

ex¬

growth since
increasing from under
$6 million annually to about $35
1946.

HALSEY, STUART A CO. INC.

sup¬

electronic

industries

Prospectus may be obtained in any State in tvhich this announcement is circulatedfrom only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

LADENBURG, THALMANN A CO.

This

plier to the electrical,

perienced

period.

chance

might be interested in the

J

The

$8,523

—

rotators.; Despite

a

February IS, 1953

.

'

-

>

and

honk

should not be many months away, cables, radio, instrument, hookMarquardt Aircraft: This com- "P and apparatus wires: lamp

The

First and

10

It manufactures plas-

year3 ago.

e

Total profits

as

cium-magnesium chloride
dition, it is one of the

own patented method. While
is a comparatively new in-

259

Profit accepted 20 Polaroid
Profit accepted 25 Telecomputing Corp.

brine

its
this

a!^s without re- proximately 27,500 long ton units in the industry,

sortlnS

$195

■

products
of
deep
manufactures such

fiber

salt, bromine, magnesia, and cal-

198

20 National Homes

glass

^rns^

common

showing for

$1,665

fiber

bonded mat and glass wool under

Federal Manufacturing & Engl-

1,056

_

Eastern Air Lines

Michigan Chemical: This small

■

chemicals

retain®d earn-

0/:lg.

lng^. and bank

of

glaSs

e^1P™ent program can be

pnanced f

recently announced.
$8 million

was

excess

Glass manufactures
Fibers. Inc.: This
com- chemical compaify,
pany
continuous

panys !*>iUU mlllion

.c0

in

as

'

™

neering": After

Recent Value

$1,556

Backlog

of the 234,000 common shares out-

one
of doubling the money
involved, but trebling it.
of shares of some companies are revenues and earnings. Market ac
acTo secure capital gains of 200% the result of stock dividends), as tion of the stock should be comwithin 12 years, admittedly, will well as the six holdings that have mensurate with this showing.

not

which has less than 100,000 shares
of common stock outstanding,

mated at $1.30 per share. Management is reported to own over 50%

*

mn

re-

income tax lia-

have
been for
the
promptly reinvested.
Following is a table showing
present holdings (the odd number

the

start

agreed

any

1

thl

bility resulting from either capital gains or dividends. Thus the
latter,
although
rather meagre

etc., should certainly double within

parents

sponsible for

tails concerning current developments» Laurance Rockefeller controls this specialized company

at last reP°rt' was about
$14 miHi0n. Earnings for the year
ending May 31, 1953, are esti-

\ l IT providing a guaranteed floor price
™ ffa^ c°£~ for standard high-grade tungsten
u1
L! concentrates of $65 per unit. In
t!i u?iT addition, Haile owns 80% of
>' «hnn
-?r
Manganese, Inc., a Nevada con-

The

lines
m

were

made, appeared favorable.

Dow

as

ulations prevent discussion of de-

subsidiary has a five-year con-

Tines*
nir

the

long-

comPany was known principally as a manufacturer of fighter
planes, and output of the Scorpion
F-89 twin-jet all-weather Air
Force fighter still accounts for
the bulk of sales. But in July, 1952,

currently outstanding.

spread the funds over a variety
of speculative issues whose pros-

the

Sales

practical
for

?eg-

to its regular products,
Sales have expanded rapidly, and

^company from 1947, when they^ were only iess

"

*

and vast field

new

have increased steadily each year

aim of the fund could be accom- tndps
plished by so doing.
'
vm
Instead, it was decided, with fu a
full consent of the parents, to

po-

school

this

in

formed and financed to back new,
risky ventures of apparent merit.
The market action of the stock

serious

would appear to warrant it.

Now

second,

per

to

Development

'n

work if circumstances at the time

$10,000

amplifiers,

f a r research instruments,

an

would have been the purchase of
shares of American Research and

pre-

for

excess

graduate

nut

linear

and

be

paratory school and college edu-

;cation,

analyzers

most

propulsion

guided missiles traveling at
super-sonic speeds. Security

•

eral thousand pulses

,

$20,000

cover

generators,

compensate for-the
.f.apid numerical printer. The
above-average risks involved.- -limits_and various applications in-

been

higher

eenerators"

Duhe
pulse

the

of

range

in

generators

time,

means

now

addition

■

count^s

fetion
Jationcqunters,

...

ferret

to

signal

the

is

and

this

more

into

out

'

but among which there must also
enough

permanently
Today's costs

te

may

ability

making test

Standi"g

of
growth,
venture cluneal instruments for the medicapital situations among which cai profession, • glow t r a n s f e r
there may very well be casualties, counters capable of counting sev-

year
old son.
Attempting to predict very accurately educational costs a dec-

.in itself.

the

still

a

assortment

two-and-one-half

a

Average for the period.

as

educational fund for his

<ade hence is

.

a

ago

•

branched
electronics

of

thG backlog'

field.

something of a
fledgling,,appears a good venture
capital speculation. Its products

appreciation of about 10%

an

in the Dow-Jones Industrial
•

period. By closing out

"accepted profit" of 38% is

an

wfth

compares

excess

appears

Atomic Instrument: This young
company,

son's education,

a

stock

pav™£

By STEPHEN J. SANFORD*

Gtiag

The

taxes.

spurt

Federal

recently
field

9

.

.

-

.

'

10

The Commercial and Financial Chronicle

(782)

short-run

Strength and Weakness in

even

i

.

corrections may

be ahead, "since the business cycle is still

The initial

weeks of

thus far reinforced

1953

the

have

c"

d

the

with

election

results.

Thus

far in the
year

a

is

admittedly
very
early—

out

business

ac¬

ters

tivity has

run

has

ing,

not

its

M.

R.

Gainsbrugh

likely

of
were

the

in

advance

year-to-year

indus-

trial output

(Federal Reserve index) would be more than 7%.

high

relative

that

assets, is it
expansion in

further

debt

be anticipated

can

other major commodselling at or below sup-

corn among

ities,

are

port prices.
'illustrate the high level to which
(3) Recent renewed softness in
output
surged
in
the
closing the
index
of
spot-commodity
months of 1952.
Restricting the prices.
comparison, however, to only the
(4) Further declines in prospect
past few months—say from No- in housing starts because of slump
vember, 1952 —' the outstanding
characteristic of business current-

months

immediately

ly is stability, rather than
■significant
advance.
Since

in

family formation. This

new

fleets

the

'30s.
(5)

any

No-

vember, there has been only a
flight uptrend in production activity, largely concentrated in a
limited number of areas:
steel,
machinery, automotive and a few

>is

industries.'

The

be broadening
result

a

But

of

in

advance

the

low

birthrates

of

pusmess

the

Competition

usual

total

ot

with

of

L.

G.

President

Backstrom,

opinion

steadily

grows

more

their

Many

caught

now

up

war-generated

own

spiing

iow

industries,

retained

of

level

corporate

earnings may undermine'capital
expenditure programs.
(7) Possibility of conjuncture,
.

Defense

nor

believes

this

spending

may

Corrections Ahead

high-

Net

appear

Asia

to

$4 33

i

half-time

wjth

share

a

«f
i

si

,

,

optimist,

share,

$1 642 059

I

Com¬

$6.87

or

a

'

earlier

vear

*

*

Western

cycle

there

"tion

p-th

airengin

alive.

cycle

to

and,

whether
what

in

we

we

We

more

than

a

•

*

for

' \"*
Securities

reported

income

net

1952, -including

undistributed
operating subsidi-

income ' of. its

aries,"

0f unearned

nation's

our

years

of

than

with

the

previous

$744,875

in

After provid-

year.

ing for dividends of $42,000 on the
preferred stock the earnings apniieable

the

to

shares

35 000

of

tools

before

ever

history.

compared with $20.08

share, in

a

:

1951

Additional

unrealized

gains

from increases in market value of

securities and other non-recurring
J

income

amounted

to

$67,276

:

last
-

»>

Gulf

Sulphur

Corporation,

Aether
even

more

have

the

know at

of

Tehuantepec

not

before,

feet, the well uncovered 130-feet

ques-

of sulphur-bearing formation.

know Drilling is proceeding. The well is

in

will

to

use

on

one

drilled

by the

its concessions in the

the right time.

to

montns,

but

*

*

Western
(Missouri)

.

*

temporary stimulants such
sumer

Auto

reports

and business

as con-

Pal"cu"
.

.

1953

company
operated

a°Pd

backlogshave

defense

and

civilian

goods remains high.

hard
,

with

a'ld

expenditures

common

$4,299,148,

share,

a

rently

$1.89

or

earlier.

year

are

There

outstanding

a

cur¬

2,224,540

shares of
common, compared with

1,906,748

shares

a

Revenues

previous.

year

were

$41,387,711,

against $35;655,256.
Operating

ex¬

penses
were
$33:620,110, against
$29,797,230. Income taxes jumped

from

$3,823,989 to $6,058,889.
*

C

t

e n

*

al

r

*

Surety -&

Insurance

Corp. reports for 1952 net income
before

taxes

income

on

of $325,$211,311 a

148,

compared

with

year

previous.

After

earnings

amounted

equal to $2.72
tal

taxes,

to

share

a

the

$272,290,
the capi¬

on

stock, compared with $235,738,
a share, in 1951.

$2.36

321

billion

cubic

or

larger than in 1951. The fi¬

nancial

results

the

for

additional

ruling by the FPC,
to be

sold

gas

the

but in

found

company

will

excess

Souther.n

showed

$5,974,526,

Railway

income

net

with

pared

for

reserves

$5,216,137,

was

preferred

share,

a

or

for

fiscal

1952,

of

com¬

$8.58

a

the

year

reported

eight

months

ended

Sept.

Sales

a

of

were
.

ports

net

the

$14,049,391,
Claim

year.

Sji

$

earnings

$512,948,

were

.

equal

for

after

re¬

1952

of

preferred

dividends, to $1.56 a share on the
outstanding 274,200 shares of com¬
This

mon.

earnings

of

compared

of

$499,017'

the

-on

with
or

255,920

net

$1:62

shares

-

City

Fire

and- Marine

Co.

reported further substantial
increases in 1952-in total prem¬

outstanding at the close

Revenues

pared

were

with

expenses totaled

$2,324,969.

$4,809,469,

com¬

$4,52L863. 'Operating

$2,586,873, against

Income

taxes

were

$479,580, against $483,429.

net

Public

Service

for

11

income

ended

Nov.

equal

after

to

$1.92

Co.'s

months

30, totaled $1;089,644,
preferred
common

dividends,

share,

with 8850,160,

share,
were

a

the

a .year

or

com¬

,$1.46

$7,511,729, against $6,816,831.

retained, earn¬ Operating expenses of $3,623,271
ings, unearned premium reserve 'compared with
$3,456,558. The in¬
and
'total
assets,
according
to come tax
bill was
$949,000, against
Morton T. Jones, President.-,
$662,500 ;in the like 1951 period.
Net earnings amounted to $236,486. equal to $2.36 a share on the
capital stock, c o m pared with
Joins

$160,890,
Net

or

before taxes

pared
of

$1.61

a

Dempsey-Tegeler

share, in 1951,

(Specip.l to The Financial Chronicle)

underwriting income earned

with

$44,756.

came

an

to $6,7.74, com¬

underwriting loss

Investment

earnings,

LOS
J.

with

sale

ster

of

$273,807,

-son,

totaled

become affiliated

Dempsey-Tegeler & Co., 210

West

the

securities,

ANGELES, Calif .—Dorothy

Webster 'has

including $119,575 from

Seventh
was

Street.

Miss

Web¬

previously with Shear-

Hammill & Co.

-

a

First National Bank
.

com¬

...

,,

of 17.6%,

yeai

units"

Valley Gas

Moloney Electric Class "A"

Scruggs-Vandervoort-Barney Com. & Pfd.

earita

Tenn. Production

Natural Gas & Oil

Wagner Electric

...

r

National Oats
Miss.

retail

276
269

O'lin Industries

Co.
January,

January,

,

'

.

Pallhail<*le- Eastern Pipe Line
Co., reported new high records in

omj"® In'''my^opMon ^"the longel $5

a share

stock,

threat of a major economic compared with net income of BIO,adjuStmerit rightly restrains the 343,018, or $2.91 a share, in 1951.

.range

a

previous. Revenues

and

Supply

during

a

of

1951.

pared

written

'

S!

30,

$8,630,135.

iums

1951

Utilities Company

Missouri

Co.

$62,897.

Kansas

gain

off $119,866 to
$6,-

were

Missouri

«

Drug

loss

the

a

In

&

*

net

were

for

share, in 1951.
Crown

year.

844,874; premium reserves
up $440,186 to $6,544,765.

Co.,

1952

equal -after

dividends to $10.07

reserves

$348,878

common

C-

preliminary report of Kansas

City

Total
up

share,

•
«

A

a

event

is

required to refund the

collected.

to

The

result of

ultimately

unjustified the

re¬

$5,790,742,
$6,551.

was

from

for resale.

were

increase

year

revenues

for

rates

higher rates

be

feet,

to

$165,548 for the

Bought

—

Sold

—

Quoted

pro-

by Dr. cainsbrueh before




dividends

Ely Walker Dry Goods Com. & Pfds.

grams of private industry are ex-

City, Feb. io, 1953.

$5,978,438,

the

on

stock. This compared with
net in¬
come
of

$91,823,-

were

.

deflations have without exception 210SS ievenu^( al*Qe$
m
been accompanied bv drastic eco- annual jcpo1 lor lyoz. ,
pected to be as high as in 1952. nomic corrections rather than a
Net income was $17,368^273.
Construction expenditures, ac- mild, slow, <easy transition into a equal after preferred dividends to
Capital

revenues

2'7f wf,olef„1„eJac-

relatively

so,: the easy trail-

sition would depart violently from
.the pattern -of history.
Postwar

share

a

amounted

replacemeid
acje of expansjon can be

(4) The backlog of orders both painless. 'But if

$2.19

of

area,

for

since

bftoat^hrtS

The inventory overhang has

to

to

preferred

Capital and surplus, after pay¬
of
$200,000 in dividends,

company

.

aUosfS T^fWUh
of last year, $9'338'°°°
an increase
almost

amounted

after

the seventh commercially produc-

point, tive

elements of weakness

ioi

the

the

business

28%

the

cause

War's end; and many of the The

again in their expanding

UP'

on j
on

state of Veracruz, Mexico. Drilled
so far to a depth of nearly 1,000

we

the

well drilled

a new

the

serious

control

un-

r®cently e"le''ged. The elements 1953, sales of $10,981,000

majo? industries:

come

equal

or

compared with $52,298,971, a
of 75%. Sales of gas were

gain

class A stock amounted to $35:93,

do

which T referred-earlier have only

many

The Kansas City Power &
Light
reports that in 1952 net in¬

na¬

determine

to

security

Co.

and

developed

in¬

also

1951.

the gain

Gross

premiums of $1,299,-

compared

"

York

recent

us

action is greater
in

and including gain in equity

about

ever

remains

to

as

enough

e

New

enable

the

Insurance

Company

Isthmus

business

ainongS'
othei?tSThese^eindSrfes
among
ot
s.
l ese
industries

(5)

measures

which

utility customers

_

tion in

much

very

-But

pleUon^of ^'seric^of'readjust-

for

related

profits in

mone¬

accounting

dividends'

*

still

doubtedly know

Defense spending was not

tariy at retai

economic

$1,084,038,

common

a

parecj

modern, industrialized society—is

fhQnn!iyVh^rfAnnrm
the second nntThe
quaiter.

,

in

were

ness

(1) Expansion in late 1952 arose
yjx the private and not the public

(3)

proper

development

preferred

profits
after

equal

year.

want to emphasize that the busi-

fre-

most

currently:

Elements

now

the

increased

ti

quently in appraisals of the busi-

are

tional

flected

ended Nov. 30.

year

economic factors which

ments in

have

We

about

and
a lower volume of business cut
into net earnings in the fiscal
expenses

weakness—that

end than

(5)

increased operating

cycle—in other words, the North
Kansas City, has ; en¬
characteristic ups and downs of a countered a large sulphur forma-

sector.

upon

tax

through

546,

>rhinority still -contending it should
fold through 1953. Let me list for.
your own personal appraisal the
positive and negative factors—or
the
elements
of
strength
and

fi

new

policy designed to
private activity in the
stages of a downturn.

the Cook Paint and Varnish Co.,
City, Mo., revealed that

Kansas

787,

-

(6) Continuing weakness in
profit margins and the prevailing

;»ievel stability will prevail at least
until
midyear, with a resolute

!

of

by
sympathetic Ad¬

a

stimulate

early

of

-

exports:

backlogs.

now,

activity

loss

have

countries

uptrend

little

a

consumer

outlook

and

de¬

insistence

means

ministration

tary

release

and

It

business under

timely

Missouri Brevities

re-

■

•ness

velopment
products.

the

means

$228,776, which
$68,503 - from

ment

the

begin to
measures
of any important indi- decline at the
very time private
rvadual sector exhibit any tendency
^capital formation begins to taper
ffeo move sharply, either up or off, and consumer backlogs are
down.
'thoroughly saturated.
The body of economic and busi,'iiess

than

Net sales were $32,895,806, a decrease of 4.1% from the previous
year. A large part of the decrease
yas attributed to the steel strike
in ^e summer of 1952.

„

Further

vigorous in world markets.

impressive fact about
today is that neither the

measures

ahead

inherent weaknesses which

,

other

It

to

These year-to-year comparisons

:may

programming of capital
expenditures over the business
cycle. It means price experimen¬
tation.

Thursday, February 19, 1953

.

against

Weakness

at the peak rates of recent past
years?
(2) Decline in farm prices and
income; the parity price ratio currentl.y (95), is the lowest in more
than a decade. Cotton, wheat, and

to main-

current

year,

quar-

income and

consumer

rate throughout
annual gain over
1952 would be very respectable—
In the neighborhood of 5%.
The

Che

of

alarmingly

consumer

.goods and services
tain

three

first

Continuing
expansion in
long- and short-term debt
of consumers; even if the total is

If to¬

output

includes

(1)

national

tal

the

of

most

both

even

although

slowly.

later, spiraling stage of re¬
or depression.
Such action

cession

by government.
even
incipient business fluctua¬
(3) what ,happens in ,ate 1953 tions. As a result, the opportunity
fand beyond depends far more to dampen down or mitigate the
after sharp declines throughupon
how
we
behave
in
the business
cycle
through
private

Elements

advanc¬

been

avoid

to

government intervention

consump-

upon

extremely
high
levels,

downturn

a

.

eluded

in¬

penditures

and

Production

rope,

at

and

new

a

year ago.

(7)

new

and it

—

k

peak in 1953.
•„
(2) The momentum generated
(6) The forthcoming Federal jn
frrst hajf of'1953 may serve
Reserve Survey of Consumer Ex- to carry us through all of 1953 at
pectations should show a higher high-level operations, particularly
intent to purchase consumer duwhen viewed against the sustainrables (cars, furniture, etc.) than
jng forces of continuing peak ex-

blos¬

som e

(1) We enter. 1953 .at a high arid
rising level of economic activity.
Such "foreshadowing" statistics as
we now possess show no immediestimates, ate decline in prospect,

official

to

should set

optimistic

business attitude toward the year
-hat began after the steel strike
and

ruing

postwar correction which so marry
still lies in store for us:

.believe

very much alive and the elements of weakness have only re¬
cently emerged." Concludes, however, opportunity to mitigate
the business cycle by private action is greater than ever before.

of

stage
at the

closing, let me offer five
specific points which warrant con¬
sideration relative to the major

an

cyclical position.
Private business has

massive

War II.

equal number of elements of strength
and of weakness in current business situation, and warns

Gainsbrugh lists

(4)

ing only the peak levels produced
under the forced draft of World

In

Dr.

been read by some into our

have

current

creasingly recognized that it must
move
promptly in the incipient

Conference Board

Economist, National Industrial

govern¬

alike

than at any previous time, except¬

By MARTIN R. GAINSBRUGII*
Chief

of

business

though, industrial activity in the
opening weeks of 1953 is higher

;

Business Conditions

optimism

and

ment

.

SCHERCk HICHTEK COMPANY
Member Midwest Stock

Landreth

Belize

Exchange

Building

St. LoUiS 2, Mo.

Volume 177

Number 5196

.

.

1 he Commercial and Financial Chronicle

.

(783)

dustry, which has had
standing growth record.

The Selection of Growth Stocks

in

today?

1912,

the objective

as

in

purchase of growth

stocks

average over

the

fit,

The purpose of
examine the

in

growth stocks.
the

this

the

is to

investor

an

selection

the

f

is

hoped

ew

they have made for shrewd or
lucky investors. For example, in
1924

a

t h-

wo r

while

vanced

how

to

on

of

meet

has

increased

current

value

shares around
vestment

in

The

growth stocks
a
relatively
in

Smith

Stocks

develop-

investment policy of

the

Prior

individuals.

in

to

1929,

Edgar

his

book, "Common
Long-Term
Invest¬

as

ments," had popularized the "com¬
mon stock theory of investment,"
which rested primarily upon ex¬
pectations of a continued upward
in

trend

the

the

operation

interest."1

compound

accord¬

"in

market

with

ance

of

the

Thus

investor could be assured of both

satisfactory current income and
capital gains simply by carefully
selecting
a
portfolio
of
stocks
diversified group of indus¬

a

tries.

of

shock

of

the

looked

came

aware

industries

back,

panies

had

better

than

be¬

investors

that stocks in certain

individual

of

or

weathered
others.

frequently received
"growth stocks."

each

of

the

original in¬
in 1924 has

an

$7,700

in

100

have

gain

of
An investment

$100 000.

over

would

additional

an

shares

of

Coca-

cluding dividends received.3

During

the

1915, the
mercial

$155

week

Credit

of

March

stock

common

6,

Com¬

of

Company sold for

share. Since then nu¬
splits and stock dividends

per

merous

have

occurred,

chaser

the

shares in

$15,500 would
shares with

that

so

100

of

now

hold

total

a

pur¬

1915

8,730

over

market

for

value

in

excess of $320,000.
In addition,
the investor would have received

large

a

Many

income

from

dividends.

similar examples could

more

cited.

com¬

the

storm

These

stocks

attention

as

However, looking at the past
only whets one's appetite for the
one

can

today that will turn out to
equally splendid investments?
Unfortunately, review of the past
is vastly easier than forecast of
be

to

seem

vestor

(1)

Two basic approaches

be

available

who

The

Commission

showed

that

the

over

1871

67-year
period
from
1937, the average annual

to

rate

of

common

"the

increase
stocks

3.0%,

was

annual

average

industrial

for

while
of

rate

in¬

crease

for the railroad and utility

stocks

was

0.0 and

spectively."2

0.6 of

1%, re¬
be ob¬

should
growth occurred
over many business cycles.
There¬
fore, it seems reasonable to define
a
growth industrial stock as one
served

that
a

has

It

this

that

increased

in

price

over

period of at least two business

cycles at

an

than 3.0%.

annual

rate

greater

The period of at least

two business

cycles should be em¬
phasized. I strongly suspect that
many
of
the
popular
growth
stocks of today can lay claim to
this fame solely on the basis of
the general upward swing of stock
prices since 1942.
Furthermore,
many

these

attribute

same

comoanies

high proportion of
their increased
earnings to the
general rise in the price level
rather than any great increase in
physical volume of production.
The "growth stocks" of today may
can

".

of

•*"An
the

be

or

With

...

such

chance-taking people
it

is

these

seeks

to

the

growth

selection

of

in¬

sales

same

less

a

SLAY,?
selection 1
of

™

The

with

recent

future.

own

Nothing

dangerous.

know

rapidly at first, but less
years;

of

record

phenomenon

growth few industries can match.
Either we, as investors, have be¬

of

I

it

be

can

would

proved

prefer the

ties
in

an

and

day, let
for

.

growth

living

a

turn

the
of

the

atomic age?
one

are

of

the

threshold

Yet doubts
reads

the

th e"Economic

look

power

are

that

"may be

tance in

Aspects

of

while

the

the

-

impor¬

foresight,

6 Sam

ex-

H.

Schurr

a

and

a

4

F.

Frederick

America's

Dewhurst

Needs

and

and

Associ¬

Jersey,
1950),

Resources

(New
York,
The
Twentieth
Century
Fund, 1947), p. 218.
5 George W.
Norris, "Who Is to Apply

Brakes

to

ing?"

Trust

p.

Excessive

Instalment

Companies,

7
8

Ibid.,
Ibid.,

9 See

Financ¬

June,

Princeton

Qf

University

p.

100.

p.

103.

average

purchase

a

some

of

the

Besides

worthwhile to avoid

excessive risk.

considering the timing

Continued

Fall

and

Julius

Ralph
of

C.

Firms

Epstein,

on

page

in

the

"The

represents

growth industry, and,

a

a
next
step, select Sylvania
Electric Company as an attractive
commitment within the industry.
as

Conversely,
General

one

Motors

Automobile

Growth
As

General

on

Dated

February I, 1953
Interest

products.

growth

of

individual

companies.

theless, there

are

lems.

it

First,
one
an

become
from

Price 101.75% and Accrued Interest

that
than

Never¬

still many prob¬

is

difficult

more

might suspect to recog¬
industry today that will

a

payable February 1 and ,1u.gust 1 in New York City

step the selection

industries

appears to
be somewhat easier than selection

than

Due February 1, J083

Industry Approach

of

nize

Mortgage Bonds, 31/>% Series due 1983

purchase

may

stock, relying

initial

an

solicitation of an offer to buy any of these Bonds.

Niagara Mohawk Power Corporation

the intelligence of its management
research staff to develop and
new

nor a

offer is made only by the Prospectus.

$25,000,000

and

exploit

offer to sell

an

leader

now—that

20,

is,

will

continue

the

average

to

or

30

an

as

may

be obtained from, only such of the undersigned

may legally offer these Bonds in
securities lairs

years

compliance with the

of the respective States.

industry

grow

more

at

least

over

Copies of the .Prospect us

the next two business cycles.

MORGAN STANLEY & CO.

For

a

address

Semi-Annual

by

Dr.

Johnson

Investment

Buffalo, Buffalo, N.

Y., Jan. 29,




before

Forum

1953.

of

example, take the automobile in¬
1 Edgar
L. Smith, Common Stocks as
Long-Term Investments (New York, The
Macmiilan Co., 1924), p. 129.

2 Alfred
mon

Cowles

Stock

and

Indexes

Associates,

1871-1937

1951),

(New
pp.

York,

216-217.

American

CO., INC.

KIDDER.

PEABODY& CO.

DREXEL & CO.

GOLDMAN, SACHS & CO.

SMITH, BARNEY & CO.

Com¬

(Indiana,

Principia Press, Inc., 1938), pp. 40-41.
3 Jacob O. Kamm, Economics of Invest¬
ment

BLYTH &

Book

Co.,

February 19,1953.

"

Rise

18
and

Indus¬

try," Harvard Business Review, January,
pp. 159, 173.
etaetao
11 Ralph
C. Epstein, "Leadership
in
the Automobile Industry," Harvard Busi¬
ness
Review, April, 1927, p. 288.

T927,

in¬

The

rec_

pay_

higher price for their stocks,

dustries and,

This announcement is neither

Wait_

means

stocks:

growth

s0

Press,

Grodinsky, The Ebb and Flow of Invest¬
ment
Values
(New York, D. AppletonCentury Co., 1939), 513 pp.

1926,

847.

inim

gre

the

Marshak,

•

Mead

are

whether

but it may be

great

-

S.

the

growth

smaU investor is wise to

10

Edward

industries,

rjsks

ognized undoubtedl

94.

p.

new

the

Economic Aspects of Atomic Power (New

ates,

Furthermore,

ing for the leaders to becomfi

knowledge of
Jacob

less.10

stocks of {irms at that time

growth

industries is dependent on
deal of

example,

interval, 51% had lasted

tionable

but

reasons

of

For

original leaders in 1903,

6tag£s

ing
selection

selection

great ln fact that u u higM

for

Thus

diversifica-

careful

loss.

years or

Tlu,s

can

sharply different
the

Many will

grow.

rec-

from

past

of

pattern of

buying the future record,

the

Is Trulva

^f^V^^icS

needs

maturing industries
attractive

in

growth

it

"buckshot

without

°f the

population

basis of the

the

If

few will

22-year

dependent

the

and

five

Still

given above.

of

atomic

great

rayon

and this may be

con¬

supporting the future

of

within

had left the industry. Of the firms
whjch had come
gQne Jn tMs

com-

oil,

*

seive

extremely

you are

pre¬

briefly, the

are

may

on

these

ord

pared by the Cowles Commission,
on

fuel

is
erowth

more

-

danger to the investor lies in the

raised

are

study

new

.
or

between 1903 and 1924, a total of
0 companies were engaged, at
°ne.
°r another, in the manuLecturing of automobiles. By the
,enc]
J.924; |21 of JJese firms

maturing industries. The

tact that

a

not

to

to

a

fgj]

sibilrties

of durable

.

out

rate

01

other

of

en¬

we

.

lose

the

growth,

prospects

Surely here is

power.

.

industries

upon

needed

atomic

may

This

number

nylon, railroad to trucks.

other

the difficul¬

industry, for
on

when

to

.

.

petitors—coal

growth industry to¬

utilization

for

ergy

,

industries

humble

type of analysis

us

the

of

case

a

be

to

seems

J-]® investor must decide
whether he will make his com^mments during the early stages
f51 growlh or later on when the
leahing companies are more firmly
established. Investing early pro.Yic*es A"e greatest opportunities
ku a 0
greatest pos-

becomes
more
dependent
replacement demand. Other

upon

to

example

selecting

it

as

assumption.
As

for

occurs

our

^£aximize losses rather than

once
required stocks are
accumulated, production levels off

otherwise,

more

in later

so

maturity; and
eventually.9

In the

reasons.

a

of

"y, there r mlny
from which to select.

Only

*ion"

goods,

come
vastly more shrewd than
our.predecessors of 1912 and 1926,
or it is as difficult
today to select
growth industries as it was then.

Until

reach

decline

in

industries grow,

cases

sion with remarkable
have
established
a

even

more

that

companies weathered the depres¬
and

be

the

.

d3y se'erted

.

into

could

We

great many

finance

success

t

companies

performance

trend

a

the

scoff

difficult today than 40

choole onl

to

in-

unconsciously,

or

possibilities

industries

Th

heat-

often overly im-

are

who

eeo-

Because of the increas-

even more

m

We

task

a

those

or

future

growth

probably

+u

not

years ago.

energy"?

giowth

a

is

ingly complex nature of our modern
industry, the selection of

the

costly

concentrated

the

economy.

required to bring nuclear dis-

pressed

fraught with danger."3

Yet

at

hydrogen fur-

atomic

on

the

and, consciously
project this as

and

our

as

based

"that

the past.

re¬

optimistic

furnace

of iron than

find

underof

for

It

faint-hearted

production
to

various

of

sound

a

nomics.

oetUivf Ievi,Ctls?s0Wn t0 " T' ^th
8
" VCTy f6W infant

financial

limited

very

blast

steel

continue

and

standing of the basic laws

American cities

sponsibility-—in many cases both.

stocks

the future.

limited

very

intelligence,

select growth

then, likely-looking
companies within these industries;
or
(2) the selection of growth
Definition
companies, without particular re¬
A growth
stock must be de¬
gard to their industry classifica^fined more sharply, however.
tion, whose management disolays
Study has shown that for many the
ability to recognize and de¬
years there has been an upward
velop growth opportunities.
Let
trend in corhmdn stock prices. For
me
illustrate
these alternatives.
example, the investigation by the One
may decide that electronics
Cowles

possessed

will

ing demand which would

a
frivolous lux¬
In 1926, the Governor of the
Federal Reserve Bank of Phila¬
delphia wrote:

clusions

The Problem of Selection

future. How

and

improvident

Atomic Power."

,

crash

1929

jolted the investing public into a
desire for
greater selectivity in
their investment portfolios. Many
decided that average performance
was
very
mediocre indeed and
sought out common stocks which
would do better than average. As
they

out¬

With

Cola
in
1924
would
be
worth
about $92,000 today, again not in¬

be

The

$41,

dividends

provided
well

recent

of

of

invested
W. Johnson

Robert

in

is

ment

the

$4,700
$369,000 today, not in¬
dividends received.
Re¬

cluding

current

interest

series

a

to

grown

Growth Stocks

from

Since that time

splits

the

lems.

L.

selling on the Cleve¬
Exchange at about $47

standing stock by 00 times.

these prob¬

Interest

Company

were

share.

per

Chemical

Stock

land

ad-

are

Dow

shares

sugges¬

tions

growth stocks lies

induschlorine-caustic soda,

existing

naces

the

give

gy-consuming

as

interrelationships

industries,

The Commission estimates

'that

very fact that they (con¬
sumers) bought that way is prima
facie evidence that they either

Stocks

in the record of the fortunes which

de¬

are

tation.

"The

Growth

The magic in

growth

stocks

in

to

enei

source

were

the

phosphate fertilizer, cement, brick,
flat glass, and railroad
transpor-

coke

with

To finance
was

majoi

com¬

along
industry,

grew

automobiles

generally

centers

ury.

market decline.

Profits

pleasure

The sales finance

which

of

the

than

tomorrow's

on

a

wealthy

automobile

sale

of

Many problems in

veloped. and
it

bring heavy losses

appraisal

of

return greater

a

for

aluminum output in
States,"6 it will be of
slight benefit in other

United

tries such

an

similarly derided.

buying stocks involving less risk.

paper

methods

follow

may

before he receives

as

few

a

panies,

asked against potential
appreciation, since he may be forced to
or more,

of

seekers."4

Warns, because of present excessive popularity of
growth stocks, investor should weigh with extreme care
price

be had from

the

In

So.

expenditure of
public funds solely "for the bene¬

discusses various approaches in
selecting shares in this cate¬

can

proposal

the

attacked

was

greater

gory.

wait 15 years

hardly think

50,000mile national system of
highways

increase in market price than the
period of at least two business cycles, Dr. Johnson
a

I

of

pansion

it,

its

of

School of Business Administration,
University of Buffalo

Stating

Was

infancy, recognized as the
beginnings of the industrial giant

By ROBERT W. JOIINSON*

obtainment of

out¬

an

11

WHITE, WELD & CO.

Financial Chronicle

The Commercial and

.

Thursday, February 19, 1953

..

(784)

12

Hartford-

bill, sponsored by

A

Electric Light Company, has been
introduced into the State

shares

outstanding to $198,000.

Legisla¬

it

Division

officers of the
Sales-Tabulating
Street, Associa¬
Exchange Firms,

and

fiscal year
the

ended June 30, 1952, a third greater than in 1946,
In all, $81 separate issues were registered

previous high.

Wall

of

Cook, in report to Congress, says registra¬
$9V2 billion in

tions under Securities Act of 1933 amounted to

following

The

Purchases

*

*

Reports Peak Securities Registrations

Chairman Donald C.

Elects New Officers

offering will raise the

The

SEC

P & S Division

Connecticut Brevities

against 702 in previous year.
Power
of
Stock
A bill has been introduced into tion
electric power the State General Assembly to have been re-elected for the term
Chairman Donald C. Cook of the Commission
states,
will
foster
company to be located in Hart¬
make the changes in the charters of one year:
Securities and Exchange Commis¬ public dissemination of the regis¬
ford.
The new company would of Danbury & Bethel Gas & Elec¬
President: Richard H. Stewart,
sion, in the Commission's Eight¬ tration disclosures by giving in¬
have the right to build generator tric Light Co., Derby Gas & Elec¬ of Lehman Bros.
eenth Annual Report to Congress terested investors an opportunity
stations, dams, waterworks and to tric Co., and Wailingford Gas
lor
the fiscal to learn of the proposed sale of
First Vice-President: James Rset up power lines and poles. It
Light Co., which are necessary to
year
ended the securities and to request a
Graham, of AsieJ & Co.
would also be able to consolidate permit merger of these three sub¬
June 30, 1952, copy of the prospectus.
Second Vice-President: Anthony
with other companies in addition sidiaries of Derby Gas & Electric
reveals that,
The
Commission reports
P. Rizzuto, of Hayden, Stone & Co.
that,
to selling electric
power whole¬ Corporation into a single operat¬
during the at the close of the fiscal year,
Treasurer:
Raymond Schibowsale. It would thus be an instru¬
ing
eomnany
which would be
fiscal
Nutmeg

create

to

ture

Company,

through which two or more

ment

enter into

utility companies could

projects are

joint enterprises. No

planned for the new company

*

has

♦

*

opened

a new

the

reflects

and
Stock¬
also approved a plan to
the
board of directors

has announced that it has sold its

antenna

various electronic products.

narrow

holders

located

increase

six to eight members, the
new members to
be elected

jfrom
two
at

a

later date.
a

it

it

Brothers,

Cheney

of

an

Air Force

contract in the amount

of $783,000

awarded

been

has

business,
in West Columbia, South
elastic

This

Carolina.

which

plant

was

in 1950 did not prove to
be profitable. Steps are also being
taken to dispose of another un¬
profitable product line.
opened

Columbus Stock &

produce parachutes. At the an¬
nual
meeting, , stockholders
of

held

since

COLUMBUS, Ohio

Davis

&

Co., has

exchanges,

re-

increases

net

the

year

security

the

for

issues with

principal amount
During

193

bond issues

the

$514

of

the
appli¬

year,

examined

673

cations for registration of securi¬
ties on the exchanges as well as

securi¬

2,865 annual reports and approxi¬
mately 11,800 current reports of

listed companies and about 1,200
greater than the previous high of amendments thereto. There were
$7.07 billion in the 1946 fiscal also filed more than 20,000 in^

Hazelwood Mgr. of
New Davis Office
H.

on

securities

million.

regis tered
with the Commission and a third

Statler.

Paul

registered

Commission

ties have been

Donald C. Cook

Sat¬

on

urday, Feb. 28, 1953, at the Hotel

This is the seventh consec¬ siders' trading reports and ma¬
dollar volume terial
relating
to
1,818
proxy
of securities registered for public
solicitations,
all
of
which- re¬
sale exceeded the $5 billion mark.
quired careful examination.
year.

utive year that the

an¬

Of the dollar amount of securities

The total market value

the opening of an

Dec.

on

office registered during the year, almost
31, 1951, of all securities admitted
in New York City, marking the 70% was for cash sale, reflecting
to trading on stock exchanges in
first time this 36-year old Chi¬ the need for external funds by
the United States was about $226
cago investment firm has" main¬ corporations
in connection • with
nounced

tained

Bond Club Elects

to

be

webbing

Company,

Parachute

'Pioneer

subsidiary

division will

in

for

fiscal

3,588

million shares and 22

greatest

any

had

and

listed

of 43 stock

year

billion,

amount

induction dinner of

The annual

the

Russell Manufacturing Company

television

include

com¬

llecting

in

were

the

Jacobs, of Eastman, Dillon & Co.

*

*

which

present operations

pany's

it

national

curities Act of

$9.5

E.

John

Secretary:

issurers

issues

the amount of

Assistant Secretary: Leo Hilzenplant in Louis¬ rath, of Bear, Stearns & Co.

Financial

2,192

registrations
under the Se¬

1933

& Co.

Richard J. Buck

Company

Manufacturing

holders
changed
the
name
of ville, Kentucky. The plant, which
is under a 15-year lease, contains
LaPointe Plascomold Corporation
30,000 square feet of floor space.
to LaPointe Electronics, Inc. The

change

J.

Henry

Treasurer:

Secretary: Carmine Carmello, of

Corporation, subsidiary of

Emhart

meeting, stock¬

At their annual

Assistant

Bash, of Neuberger & Berman.

mission.

Plax

year,

the ski, of Hirsch & Co.

of

Connecticut Public Utilities Com¬

in

it

*t

#

jurisdiction

the

under

the immediate future.

name

as

new

a

their large-scale capital expansion

under the manage¬

Charles

ment of

billion.

The

office in the East.

an

office will be

giving evidence of
strength and* vitality of the

programs, and

at

F. Hazlewood

the

.

.

.

the

declined

changes

Hoyt B..
111 Broadway. Mr. Hazlewood re¬
capital markets.
'
\
•
Cheney voted to split the common Mahon, local representative of the
The Commission's report pre-,
stock seven for one,
increasing First Cleveland Corp., is the new cently has been associated with
W. C. Langley & Co., and earlier
sents the following analysis of un¬
tlie number of shares outstanding President of the Columbus Stock
was
Executive Vice-President of
to 238,728.
\
derwriting commissions and dis-;
and
Bond
it
it
it
Blair, Rollins & Sons. Mr. Hazle¬ counts as a
percentage of the gross
Club. Other
M.
wood
started " in
the
securities
'/Thompsonville Trust Company officers
proceeds Of 7 securities registered;
business in 1915.: 'He joined Estafor
cash
sale
for the last ten years:
.has announced plans to increase
include Edwin
brook & Co,, in 1921, becoming a
its capital from $200,000 to $300,- P.
Fiscal Year
Bonds
Preferred
Common.
Schneider,
partner of that firm in 1929.. Paul
000
through a stock dividend, the August P.
H. Davis & Co., a leading Chicago
1943—.-1.7
3.6
9.7
transferring $100,000 from the un¬ Lorenz Co.,
1944
1.5
3.1
8.1
underwriting firm and a member
divided profit account. The bank
Vice-Presi¬
of the principal Stock exchanges,
1945_—j 1.3
* 3.1
•,
,'9.3
—

While

.

net

number

of stock issues traded on

*

'

•

the

close

of

from

1948

the

ex¬

3,052

at

to

3,032 at the
close of 1951, the aggregate mar¬
ket values of the stocks traded
rose from $82 billion at the close
of

1948

close

to

of

increase

In

1951

increase

an

the

at

alone, the

billion, comir

$18.2

was

with

pared

billion

$129.2

1951.

$2?

of

,

~

billion
years
-

Large fluctuations in the num*

;

total resources
million dollars.

pr-scntly :has
about

ten

'

Bridgeport Brass Company has

Havens

Bullard

former

the

purchased

School

Technical

from

City of Bridgeport. The build¬

the

also

dent; Harold
B.
Haughton,

offices

has

111.,

Rockford,

in

Peoria

pany,

Secre¬

a

Supply

and

Company,

production of equipment for

for
tube

it

it

Meeting

will be
former

the

American

Inc.,

Dye

plant

of

Hockanum

Mills, Rockville. The
plant is being renovated for the
lessee

new

to

the

house

club

The

Control,

occupant of the

new

Hoyt B. Mahon

Co.,

and

dinner

produc¬

is

as

was

dealers:

dealers from New¬

County, also,
ark

and

members of all
in
Franklin

of

composed

Zanesville.-'

/

Feb.

24, at 5:00

it

it

a

special

win

C.

Badger,

Tfij stockholders of The Hartford-

On March

1, Butler, Herrick &

Copnecticut Trust Company will Marshall,. 30

vofe

on the proposed merger with
Windham County National Bank
of

.

Danielson.

Shareholders

of

Windham would receive 1.4 shares
of

fHartford-Connecticut

for each

sh^re outstanding. On Jan.

22,

stockholders approved an increase
in ^capital from $4,400,000 to $4,-

95d,000. Rights have been issued
tot holders

purchase

of

one

record
new

Jan.

22,

Broad

Street,

New

York

City, members of the New

York

Stock

Exchange, will admit

Duncan Bruce to

Life Insurance Co. of Boston,
the

leading

60

Wall

Street,

New

York City,

the New York Stock

Exchange, will admit Florine W.

eight shares owned at $50 a share, Posner to limited partnership on
with the rights expiring March 2. Feb. 23.
I




of .his

of these

of

!•

'

j

Schrijver

has

authorizing the

exempt from

the

requirements securi¬
$300,000, there

registration

'

formed

offerings of about $210 .milr

lion during
a

the

&

Co.

with

substantial

increase

over

.

a

and forms with respect
partner in Albert de Jong & Co.
to registration reflecting its con¬
tinual efforts 1 to afford investors
a

in

rules

ments

Commission
prospectus require¬

the
so

to

as

shorten

and

im¬

the prospectus without the
sacrifice of material information.
prove

BRAINARD, JUDD & CO.

dollar vol¬

a

billion were traded.
reported volume of stock

of

ume

The

traded
1951

$9.2

on an

was

shares,

in

unlisted basis during

of 60 million

excess

of

between 7 and 8%

or

the total 1951 share volume on the
'•

,

•

.

Darragh A. Park
7' Darragh

passed away

A. Park

February 9th after a brief illness.
Prior to his retirement he was

the

Manufac¬

Trust Company.

^y,

of

Vice-President
turers

T

With W. C. Pitfield

MONTREAL, Que.,, Canada —
J.
Maurice Arbour has
become
manager

for

ment

of

the

W.

C.

French

Depart¬

Pitfield

Co.,

&

7

Ltd., 235 St. James Street.

Morgan Co. Adds

of. timely disclosure
understandable form-

Toward that end, the
!

shares with

million

maximum
an

a

billion

$21.3

During the half year
ending June 30, 1952, about 382

the

offices

its

with

shares

of

sold.

were

representing

year,

at preceding ytear's offerings of about
$174 million.' . r. V
.
37 Wall Street, New York City,
During the year the Commission
to engage in the securities busi¬
ness.
Mr. Schrijver was formerly adopted or proposed changes in
Schrijver

rose

volume

in

1942,
dollar vol¬
until,
in

and

million

864

dollar

dollar

a

billion

$4.3

of

exchanges.

ties offerings up to

Own Investment 60.

Co.

Exchange

of
in¬

1951,

with

shares

Thereafter, sales
umes
generally

the

revised

Members New York Stock

exami¬

report notes that pursuant

small business by

SECURITIES
&

previous

decisions.

were

was

which there
year
decline to

by

year

million

vdlunie

vesting public to make informed
prudent investment analyses

*

•

a

was

221

provision in the Securities
Borrowing Ourselves
Act of 1933 designed to encourage

CONNECTICUT

CHAS.W. scranton

,.

financial and other information in

iThe

billion

$23.6

reached in 1936, from

: 5.8

to enable the

of

volume

6.4

disclosure

providing

dollar

the

on

of 962 million shares with a dollar

registration state¬
is keyed to the one objec¬

ments

to

Schrijver Forms

L.

are

during the

Commission's

The

nation

Commission to

A.

.

the

during

year.

money mar¬

'?

A. L.

9.3

exchanges since 1935
noted in the report.
A peak

comprised 881 issues covered

statements

and

will

sold

' ...6.1,

3.6

volume

shares

and

8.0

by 635 registration statements, as
against 702 issues covered by 487

and

address

...

3.2 *:

I;

Securities registered

on

into Debt?"

\

members of

one

authorities,

rates and the

The title

be "Are We

Andrews Posner to Admit

to

share for each

ket.

partnership.

Andrews, Posner & Rothschild,

"

0.8

1952— 1.0.

Vice- tive

Financial

2.7

of

ber

10.2
7.1

4.5
3.8.
,

such manner as

money

Butler, Herrick Admits

Feb.

on

p.m.

President of New England Mutual

of

it

meeting

Wednesday,

Principal speaker will be Sher-

tion of silencing equipment.
At

on

in

an

securities

meeting of the Boston In¬

Boston Yacht Club

reorganized

..

The next

—

vestment Club will be held at the

outgrowth of the old
Columbus Bond Club. The roster
1945

^

year

and Walter M.

if

Sound

BOSTON, Mass.

Zuber, Vercoe and Co.

welding and forging.

Industrial

ley

2.8
,

,J950___r 0.6/.
1951

To Hold Dinner

Bache

reconditioned for use and Co.; Fred'!
subsidiary, Bridegport En¬ Paisley, Pais¬

gravers

.

Don

and

Noe,

0.9

1949__7 0,8,

Boslon Investment Club

ing will be

by

1947.7

1948____ 0.6

tary-Treasur¬
er,

3.1

1946—^0.9-

Angeles.

Los

and

and

the Ohio Com¬

it

it

it

•

of

during the preceding two
1949-1950.
7 / ;

(Special to The Financial Chronicle)

.

ANGELES, Calif.—Guy C.
Hewitt has been added to the staff
LOS

of

Morgan

&

634

Co.,

Los

South
the

Street, members of
Angeles Stock Exchange.

Spring

•

'

"

+

,

The

75 Pearl Street

New Haven

a

HARTFORD, CONN.
New York

—

Teletype NH 194

also

rule, since adopted, permitting
publication of a brief "iden¬

tifying statement"
HARTFORD

PHONE

NEW YORK

PHONE

limited
to

7-5291

the

HAnover 2-7922

the
BELL

TELETYPE

HP

considered

the

REctor 2-9377

Hartford 7-2669

Commission

information
securities

effective

date

197

tration

giving certain

statement

securities.

This

in

with respect
advance of

of

the

regis¬

covering

procedure,

those

the

With Schirmer,

Atherton

(Special to The Financial

BOSTON,
Quinn

has

Mass.

joined

Chronicle)

—

the

Daniel L.
staff

Schirmer, Atherton & Co., 50
gress

of

Con¬

Street, members of the New

York and Boston

Stock Exchange's*

Volume 177

Number 5196

.

,

The Commercial and Financial Chronicle

.

The Outlook for Natural Gas

ships of each to the whole and to

creased

each

of solid fuels less than three

oilier,, and see wnat has been

happening
out of

By GARDINER SYMONDS*

industry, which has doubled its
*

gas

■

'

natural

industry

that

has

doubled

day

of the day,
rather
than
the
approximately
220 days out of the year coal operators work or the roughly 50

its assets in the past 10 years and
which now ranks in size among

out,

24

natural

hours

within

fuel

true

has

gas

are

relative

the

and

gas

pinnacle
the

picture

of

nation's

to

which

climbed

within

few short

a

Many

ducing and distributing facilities, and, given a favorable regu¬
latory atmosphere, its outlook is one of unlimited expansion.
An

of

unbelievable

over-all

only

the

emerges

years.

prone

very

has taken place before

eyes

riers

in

slightly

as

the Atomic Energy Commission in
the creation of atomic power—the

making possible increased produc-

A

tion

on

.

_

—

incidentally, is

far-

try's growth on figures of annual
consumption by consumers, which,
,

the face of the nation,
end

one
A.

„

and

us

upon

car-

ther

,

the
in
quantities, it is
there, but you can't afford to pipe
it in the kitchen
and fry pork
chops with it.
But getting back to natural gafe
that can be brought into homes
and factories
and which also,

our

estimate of the natural gas indus-

across

down the road.

abundant

sucn

than

more

the big pipeline
stretched farther and

decade

way

that beams down

sun

energy supply in 1951 as
compared witn only 3.2% in 1900.
But the big shift to natural gas
as the
sinew of U. S. productive
power

long

a

Like the tremendous energy of

primary

a

to gauge their

ment is

times,

natural gas provided 20.6% of the

importance

and is
now one of nation's
largest industries. Concludes natural gas
industry has ample reserves, a ready market, and improved pro-

times, but that

this welter of comparative

almost

assets in last 10 years

30

since 1900. Recent data show that

position

Mr. Symonds traces growth and development of natural

historically.

almost

Because

figures

President, Tennessee Gas Transmission Company, Houston, Texas

13

(785)

continued

increased

now

being used by

expansion

of

industry depends of

„

the

gas

upon

course

as we all know, have substantially consumption on the other. Millions
supply. I sometimes
aicreased each year. But consum- of people who have never seen a recall 30 years ago when my geol¬
ers have been taking more and big pipeline changed their ways ogy class graduated from college,
the nation, such as the gas indusworking weeks each year for oil m(^e °f nearly everything this of living and working as a result, we Were urged to seek our for¬
try, presents a timely topic for tankers
natl0n Produces for a good many
The figures tell the story. In tunes in foreign lands because
discussion.
I trust I will have a
there were no geology jobs in the
Yet we are merely typical for years^ W,e have bee" hving ln a
194?' coal ProVlded ,5H% °*
part in making it interesting. So
with
thl major growth in' gas penod of an exPandlnS economy, nation's energy supply. In only10 United States as all oil and gas
much has been written and said
transmission
lines
that
we
all
So what could be more basic years, it nose dived to only 41.4% had been found here. I did not
by so many about natural gas that
have witnessed our system is only or mol*e significant than to reduce
m 1950. During the same Period, and many others did not and our
to add anything new will be diffionp
^ manv
doing the same a11
components of our national petroleum increased from 32.1% youthful faith has been rewarded.
cult. Your subject
for the "day, tofSder CX
energy supply to a common de- to 35.4% while water power inthe

first

half-dozen

industries

in

the

reserve

now

"The
of

Outlook

course

is

for

Natural

broad

a

Gas"

As

one.

southern
Vatforn

Consequence, Mr. Oates and 1 have
reached an understanding. He will

talk

about

storage

the

distribution

phases

of

while T will confine
my

to

the

sion

production

gas

discussion
transmis^-

and

business.-This ir
it should be as we will

as

both be sticking a
home/
V
~ / j

Texal .Wmtaator of

United,

Transcontinental

Increased

.energy unite/andKe

Gas Reserves

'

1

i

'

Colo-

.

of the

end

perhaps

and

natural

Natural,

The tremendously increased gas
h°w each component stacks up 4.5%* But the really healthy jump
ratj0 interstate
El Paso Natural
against the other as far as the job was made by natural gas whicii reserve are a matter of common
knowledge. I don't know that I
Panhandle Eastern, Texas-Illinois! of supplying the nation's continu- went up from 11.3% to 18.7%.
Trunkline, Texas Gas Transmis- ally growing energy requirements
lis this trend continuing, you can, express it any better t ;an
your own Dr. Gustav Egloff here
gron'iMichigan-Wisconsin, Missis-.'ls concerned? When you do this, might ask? Well, let's see what
in Chicago, research director for
sippi ; River Fuel
Natural
Gas the spot light then falls, not alone has happened in only one year,
Universal Oil Products Company
pipeHne Company' Cities Service on the increased use of* natural gas, from 1950 to 1951; Coal continued
and -an
acknowledged leader in
and Others All ard part of a great but also 011 the marked shift to to skid, dropping, from 41.4% to
the field.
*
;■
transmission grid thatconstitutes: natural gas, principally at-the ex- 39.0% while water power dipped

a

.-

little

L

•

a

a

4.'".nense-of coal. The ir*hanm» in

,

tho -from

4.5%*

tn

4 0%

' Pot.rolptim

:

.

He recently pointed out in *a
study1 that since 1935 the net

;

.

production of natural gas has inover three times and the

creased

.

marketed; production

five

over

times. He estimated that the pro¬
duction of natural, gas will reach
15 trillion cubic feet by

\ ; Figures on'
hand

ratio of
In

gas busi- pared with transporting coal ; or tbe.
7/ji, Bureau of Mines.v Let s. estimated that in another quarter
transmission, since any rail transportation, which has 100k,at; the* record.
.
^
•,
of a century, this country will be
uur
company
is a/ transmission a much higher labor factor. There-, / First, a long look backward to consuming twice as much energy
company pure and simple. We do fore, a general increase in wage-1900. The aggregate of our energy as we consume today. I am con^
have other interests,
including the levels produces a lesser increase supply, as well as individual com- fident that when that time comes
production

is

ness

of

one

lion

serves

has

riers

been

year.
same

fuel

we

have

on

in the country,
something to add
that segment of the industry...
of

production.
production of
proved

means

It
as

that about 16

the

story,

has

been

a

water

approximately
or a

6%,.a little more
little less, depending upon the

tllls century as an inevitable
counterpart of the-country's economic growth during the period.
Tbe total energy supply in 1900
was 7,893 trillion BTU's as comPared with oo,ojo Biu s in luai.

^

while oh the subject of

the

energy

bucket'

was

re-

the ' sarhe

by

year

dis¬
that
after

much

well

that

creased its water level every

the big car-

of

one

increased

amount. This

duction
Gas is

;

about eight tril¬
while

feet

on

the

over

net

was

as

trillion cubic feet of gas were
covered duHng the yestr\ And

our

nessee

gas

1975,.V(*'

reserves

significant

discovery

cubic

•

,

proven
as

1951* the

natural

primary interest in the

not

are

lowered.

-

the
in¬

time
7

•

preciation and taxes, we haul gas
for less than two cents per MCF
Moreover, there was significant
(thousand cubic feet) per 100 relative shifts among the several
true perspective, natural gas
pipe- miles.
In , other, words, taking components with (the most notelines are merely transporters of everything into consideration ex- worthy being from solid fuels to
fuel, and as such
have become cept the cost of the gas purchased liquid
and gaseous fuels. Thus,
an
integral part of the great trans- which we get back on the other while the total supply has in-

and before someone asks
At the present rates
of con¬
about atomic energy and its
sumption, our proved reserves of
potential, I would like to hastily natural
gas are equal to about a
pojnt out that I am not an expert 25
years' supply as compared with
on atomic energy. But as far as I the indicated 19
years' supply of
am ab'e to determine, no one yet natural
gas liquids and 13 years'
has developed a method of utiliz- indicated supply of crude oil, Dr.
ing atomic energy commercially ^gloff has brought out.
f
for everyday common uses that
But he also points out that such
will compete on a price basis with
Continued, on page 45
the established forms of heat and

portation system of

power.

feel

•

we

And when I speak of

current

fancy of the Federal
Power Commission, and including
all operating expenses, plus de-

natural

a

pipeline

carrying fuel, I am
thinking of fuel in its complete
sense—not just natural
gas. in the
gas

,

this country,
know, pipeline companies
buy the gas in the field and sell

As

it

at

but

the other end

their

of

essential

two cents per MCF

their lines

purpose

is

The

important niche

to

can

constantly available, m

be

seen from

the fact that natural gas
transmission lines in service now
total in excess of 115.000 miles-

This docs not include

distribution
.

wu

What

sion

gathering

this

.

extensive

using

example,

system

is

long and

t

The

of

as

Tennessee-Gas
2,000 miles

from Texas to

the

eastern seaboard. We haul the gas
that enters
of

1,200

each

our

system^an

miles.

day

we

And

irr

average

distance the equivalent in

heating-

qnits of

of

oil

60,000 tons

or

amount

30%

barrels

of

greater

of

"freight"
on

a

coal.

fuel
This

hauling

is

ton-mile basis

the
ft
0f

to

every

day of. the

talk

by

year,

on

day in and
in

a

jkum).

East,

worth

Chicago, Chicago, ill., Jan. 20,1953.

;

AGA

convention

October.

are

not

being offered

to

the public.

of record only.

NEW ISSUE

of

,i

$10,000,000

.

.

for

market
a™

by virture

$272,000

a

natural

gas

mny

we carry

at

SVz%

be¬

Promissory Notes

present

/

! i That

Associates Investment

and

Texas

where

rates.

.

now

!

~

Due

February 1, 1967

-

consti-

vital part of our industrial

economy
T ami not

is recognized by all but
so

sure

that

everyone

recognizes the extent. This is

clearly understood when

Direct
more

we

placement of the above Notes has been negotiated by the undersigned.
r

.<

get

down to the fundamental forms of
energy,

js

for after'all, natural

gas

merely-stored energygaseous

Salomon Bros. & Hutzler
Sixty Wall Street, New York 5, N.

^

,

jn rrs connection it is interest-^

Boston

Wfe te take a look at the pTUlci-'

I®1 Prinrary

,

1952

use

example. Our
a

been and

Members New York Stock Exchange

Mr. Symonds




not

This advertisement appears as a matter

-

Pipeline transportation goes

*A

as an

'again

>■

provides
U*

These Notes have

way,

terms

transportation' added, ( it

by the Illinois Central rail- form,

r

the

comes

1951
road.

in

we1 can

fields .of

gas

the

freight moved in

in

< * i

Louisiana. And each day

than

total

1 At

City

worth of gas each day in

'

doing,* tutes

so

transport for that

250,000

C7o

<.■

in a
and

another

means

money,

company

seen

company

than

more

runs

be

can

own

my.

terms

it

Tennessee Gas

.

transmis-

in

means

fuel going to market
an

actual

this

at

what

and

r

a

mileage

from

or

Looking

mains.

au-

a

And again, as far as I am
able to determine, such dcvelop-

100 miles,

per

fuel being transported is
stream constantly flowing

pipe-

gas

in the transporta-

won

tion net-work, of the nation

we

me

Compared with other forms of
transportation,
that's low-eost
hauling. And what's more; this

haul fuel to market.

lines have

transport creased almost five-fold, the natwell under ural gas contribution has in-

end after selling it,
gas
for something

you

sources,

United

entrsy soarcw in the

States

and

the

relation-

Frl ro-ry
'"T

^

'

V

17, 1951

>

'JUL

•

Cleveland

•

Chicago

•

Y.

*

San Francisco

at

Atlantic

14

The Commercial and Financial Chronicle

(786)

Danger Ahead!
By

President, Townsend-Skinner & Co., Inc.

Mf

f

City

Counselors, New York

Investment

withheld

Mr. Townsend holds, despite increase in savings

by lower in¬
come groups caused by wealth redistribution, an inverted pyramid exists in the vast growth of individual private debt. Says
danger exists that this debt pyramid may collapse and, as in
past, may precipitate a recession or depression. Urges higher

I

liquidity and loss
In

the last alanysis, the volume

of business done

factors

(1)

customers

the

to

depends
Capacity

two
the

on

of

spend and (2) their
Willingness to
spend.
The
ideal situation

is when

Capa¬
city is slightly
higher than

Willingness
that

so

saving

assured,

is

and

when Willing¬

is

ness

about

just

enough

absorb

to

the

Supply
of
goods
and
services.
W.

of

Townsend

W.

This,
is

course*

oversimplifi¬
cation.

for

segment of our
population has given
so
many
hostages to fortune, in the shape
of acquired habits of living and
dependents, that, in order to keep
up with the Joneses and to pro¬
vide Jimmy and Jenny with their
expected college educations, they
are drawing down on their savings
and are buying on the installment
plan.
These are the previously
rich apd it has been estimated that
25% of today's consumer debt is
owed by the top 10% of our fam¬
ilies, according to income groups.
In

the

middle

income

income groups are

and

low

the pensioners,

white-collar workers, the civil
service employees, etc., who sim¬
d

e

have not been able to keep
If Capacity exceeds Willingness up with living costs and taxes.
by a substantial margin, savings They are borrowing, sometimes
pile up and business slows down. from hand to mouth, in order to
If Willingness
exceeds Capacity keep going.
by a wide margin, we begin to
Private Debt—r-the Inverted
build up—somewhere in our econ¬
Pyramid
omy—an inverted pyramid of debt
which usually grows too big, top¬
Today's
inverted
pyramid
of
ples over and frequently brings debt which might topple over and
the whole economy down with it. cause
great damage
is Private
Never

the

in

before

ply

history

of

this nation have both these distor¬

tions existed side by side.

And the

In 1945 it stood at $141

Debt.

lion—^bout 50% of the
of

State, Federal and Local Public

this point is emphasized is
because the Savings and Loan As¬

Debt.

sociations, as well as all other
thrift institutions, have benefited

total. It includes Corporate as well

reason

tremendously
distortions

from

and

of

one

seriously

be

m.ay

these

The

of
wealth,
figure of speech in

a

1932, has become
:cact.

an

accomplished

The

previously
rich
and the previously

poorer
r.re

richer.

day's

of

bank

ernment

are

poor

one-half of to¬

About

disposable

form

income

balances

in

the
Gov¬

and

Bond

ownership has
gravitated into the hands of the
middle

lower

and

upper

income

group—the families with incomes
of from $2,000 to $6,000.
In this group—especially the or¬

ganized

the

workers,

farmers

the

and

subsidized

successful

businessmen—are

a

small

great

many

whose concepts of necessities and
luxuries have not kept pace with

their

increased

incomes.

Their

earnings have found their

excess

way into the thrift

institutions, as
development, and very
largely into the Savings and Loan
a

Individual

as

well

natural

Associations
many

because there

of them, they

venient

are

so

This

Installment

mids.

cupied.
all of these share capital
deposit
increases
represent
savings for the indefinite rainy
lay. Some of this money is merely

"warehoused"

tion of purchases still

in

anticipa¬

under

based

That, however, is not
die point of this discussion except
is
it may indicate the necessity
*Ab«*.ract of
<;3nd

before

ings

and

Feb.

12,

The

an

the

Loan

address by Mr. Town-

Alleghany County Sav¬
League, Pittsburgh, Pa.,

1953.




the

But

on

1929

the

again. And,

face

1937

1952

The

reason

which pre¬

pyramid of 1921

is private debt.

two

arguments

often

national
total

for

concern

income

of

vide against it. That means,

stallment
to

debt

(1)

happens, the slight in¬

loss will be cheap insurance.

it

able to

Stanley Davis With

and
of

"

'

Jim

would

CINCINNATI, Ohio—Stanley O.
Davis has become associated

Mr.

Davis

Clair

S.

with

Co., Traction Build¬

Cincinnati

the

Exchanges.

formerly

was

Hall

&

Co.

with

specializing

at 70 Pine
to

Securities

been formed

Corpora¬

with offices

Street, New York City,
in the securities busi¬

engage

ness.

statement

that

the

there he had

last

no

he

was

in

the

time

he

symptoms of

pulmonary congestion.

BOSTON, Mass.

joined

Anthony J.
the staff of

Mathews

Co., 53 State

has
E.

—

(Spcc.'r.! to The Financial Chronicle)

MINNEAPOLIS, Minn. — Paul
J. McGough, Jr. is now connected
with Kalman & Company,
McKnight Building.

same

person

and

that

the

the

bor¬

life.

of

way

weakens

industry,
demoral¬

of

economic

sound

a

the

the

upon

Ameri¬

our

future

of

preservation
system

vigorous

de¬

Bank

is
&

now

Co.,

with

D.

D.

Northwestern

is

in

better

a

tribute

position

this

to

who live

need

farms.

on

to

con¬

than

those

Agriculture is

basic

industry.
We recognize
agricultural policy is only a
part, but a vital part, of our total
a

policy.

anized commercial

family

farm

geared

into

HARTFORD, Conn.
M.

Aldrich

is with

viously
Jackson

with
&

He

was

Paine,

pre¬

Webber,

Curtis.

provide

an

seeking

its

own

growth,

or

group

advantage

to

To make

their best contribution to national

welfare,

farmers must have the
cooperation of industry and

full

labor,

because

each

is

dependent

+,-e effective performance of

other

economic

objective

provide

of

groups.

with

quality food and fiber at

high

agriculture, which has made
sible
has

these

name

of

Ala.

—

The

Thornton, Mohr &

First

J. Mills

Jr.,

J.

Addie

National

Bank

Build¬

Thornton, Sidney J. Mohr,
Mills Thornton, Jr., and

Lee

Farish.

for

pos¬

achievements,

placed the family farm

in

position

a

be¬

farm prices and income rise

cause

and

economic

fall

costs.

rapidly than farm
the
guarding
of

more

Hence,

farm

levels

of

living

requires

a

program of storage and price sup¬

ports

help

to

to

designed not only to

welfare

stability

assure

These supports should

of

farmers,

widest

the

serve

but also—in

national

interest—to

prevent disaster to the farm-pro¬

ducing
food

plant

the

and

national

supply.

Price support laws will be
ried

out

faithfully

There

spect.

so-called

for

supports

there

will

for

provide

other farm prod¬

enforcing these laws,
formulated

be

term

programs

fully

and

long-

will

which

effectively

over-all

our

re¬

the

commodities

Other laws

on

While

ucts.

car¬

every

of parity on

basic

1953 and 1954.

in

mandatory price

are

supports at 90%

more

accomplish

objectives.

Price

national

production

prevent
a

reason¬

food

supplies.

price supports which tend to

balanced

shifts toward

supply

in

of

terms

which encourage un¬

demand and

economic production and result in

continuing

heavy

subsidies should
efforts should

surpluses

and

avoided.

Our

be

be

to

re-orient

present national policies and

and

ous

within
It is

our

pro¬

that they will contribute

the develonment of

to

productive
free

our

a

prosper¬

agriculture

enterprise svstem.

generally agreed that there

prices, improve the produc¬
tivity of basic land resources, and

is danger in the undue concentra¬

contribute

tion of power in the Federal

to

higher

nutrition

an

of

living.

pre

calling

for

them

productive

large

groups

agricultural

policy

should
place

full parity prices of farm products
and

ple

parity incomes for farm
so

dom

that

efficiently and to

ing

consumer

panding

demands in

economy.

cannot be assured

programs

alone. It

an

ex¬

This objective
by Government
can

be achieved

thev

do

to

should

be

Individual freedom and citizen¬

ship

responsibility
nrincinle
to

possible

through

group

denend

helping

of

dividual

upon

the

himself.

heln

individual

action to solve

manv

in¬

It

is

and

orob-

lems and achieve objective* locallv

with

a

minimum

of

Federal

assistance and control.

peo¬

farnjers will have free¬

to operate

Washington

on

what

Gov¬

Americans

manv

willing to do for themselves.

thp

other

Too

contribu¬

these

provide the opportunity for a con¬
stantly rising level of living for
farm people fairly related to that
of

ernment.

income that will

for

reward

levels
of

and

The nrincinies nf economic free¬
dom
3ems.

annhcable to farm

arr>

We seek

strictions

on

marketing

MONTGOMERY,

great

vulnerable

able

adjust their production to chang¬

firm

to

diet

better

even

is

farmers

rapidly increasing population.
The
development
of
modern

grams so

agriculture is

consumers

expansion

enable

our

stabilize

peace,

to

farm-producing plant and help to

aim to obtain in the market

Charles

—

balanced

necessary

But

hope for

Our

Fahnestock &

further

closely

of the nation.

With Fahnestock Co.

providing the American
people with the highest level of
hving in the world.
Moderate

is

no

full

interde¬

become

complex

has

their

supports should provide
insurance against disaster to the

agriculture, the

has
a

freedom,
do

in

pendent industrial economy. There

Building.

(Special to The Financial Chronicle)

program, with
enabled farmers to

snare

re-em¬

phasis of the principles, benefits,
and values of private competitive
enterprise.' No group in America

tions must be

Wilkes

This

of income.

The

and

people and the nation is

production, processing, marketing,
and utilization of farm products
and in problems of rural living.

the

The

MINNEAPOLIS, Minn.—Charles

farm

ening and destroying
agriculture

important method of
the long-time welfare

the support of adequate programs
of research and education in the

be

human

ing, has been changed to Thorn¬
ton, Mohr & Farish. Partners are

are

sus¬

planned

economy

of

people are a bulwark
against all that is aimed at weak¬

to

gall¬

merit to

de¬

for

discourages
destroys character, and
izes the people.

The

hospital for
some

man

who

completely

subsidized

the

Co.,

However, there is

any

initiative,

Joins Kalman Staff

time

stones.

A

if

free
State

the

upon

tenance.

noon

That

the idea that Jim and Joe

pends
and

doubtful

(Special to The Financial Chronicle)

Schroeder

the

is

politically

is

DeMarco

con¬

by

It

be

the detriment of others.

Now Thornton Mohr Farish

was

itself.
can

as

precious than life

more

prosperity if each economic

monia

reassured

continually
guarded

something

With W. W. Mathews

Co., 75 Pearl Street.

not

Benson

most

promoting

be

must

With the development of mech¬
Somerset

do. The answer to
(2) is a
simple reduction to absurdity. The
patient who is brought to the
hospital threatened with pneu¬

is

Taft

Ezra

Education
The

us

the

Constitution.
It

national

Somerset Securities

R.

agree

to

under

that

in mutual funds.

in¬

he will

is

prin¬
vouch¬

safed

pend

aggregates

to pay Joe's debts—which

ciple

i

(Special to The Financial Chronicle)

(2)
The

repayment.

ahead.

eternal

can

Geo. Eustis & Go.

(Special to The Financial Chronicle)

sum

critical

Rural

capita

if

with it.

cope

D. D. Schroeder Adds

incomes and assets would be

only

is that

does, the institution

much better

divided by units give average but
not actual performance. Per
clusive

being. If nothing

pres¬

record

is that

quite

simply, to make sure that liquid¬
ity and loss reserves are higher
than they have been or need to

come

in

God-given,

a

the

because

(1) the

the

assets,

previous

the
years

a

would

no

are

and

personal

good

advanced

who

that there is

us

cause

those

by

as

was

Why There Is Cause for Concern
The

in

years

speculation.
security
speculation.
an
inventory log-jam

was

America

1

untoward

need—the

strong

a

danger is there it is wise to pro¬

be—for the time

and

world needs—

debt pyramid
complicated our
staring us in

before

commodity

saw

is

is

troubles

tion has

one

We

because

now

recognized

which always has

Street.

ceded it.

right

widely

danger.:

If

morale,

wen-being of
our
people?"

despair.

of

Agricultural Research and

gov¬

Freedom

counsel

no

not

has resembled the

con¬

sideration.

is

it

Edward

ent

is

most ominous

in¬

not

Not

±nd

jeing

seven

about.

worry

answer

oc¬

has

character,

danger may be averted. It is

for this, in all probability, is that
no one of these inverted
pyramids

ital

owner

year

the

by

letup.

a

fect

requisitioned.

This
The

And in every instance since

the

are

be

to

any

policy,
agricultural or
other, should be, "How will it af¬

savings institution are likely

any

<he end of World War I the public
has been told that there was noth¬

to

it

of

test

supreme

the

savings

anyone's

cumstances,

of

from

The

ernment

counter measures. Under such cir¬

Stock

or depression in
history has been either pre¬
cipitated or accompanied by a
collapse of one of these debt pyra¬

vhile the Savings and Loan Asso¬
ciations increased their share cap¬

by about $3.05 billion. The
wo
together have been largely
esponsible for the very healthy
growth of home-ownership to the
point where today more than one-

past

is

arrested

is

Midwest

700%.

over

convince

the Mutual Savings
lanks of the country increased
'heir deposits by
$1,703 billion,
year,

homes

the

debt

on

itself until

on
or-

members

Every recession

ing

out

and

our

con¬

The Increase in Savings

burned

from $2 billion to $16.4 billion, or

by

feeds

it

after

ing,

alone

debt

in

creased

the

production, processing, marketing and utiliza¬
products. Says "too many Americans are asking
Washington to do for them what they should do for themselves"
tion of farm

be started with a match but there¬

debt

this

sign of

on

This

Individual

1952, with the increase last
no

the

story of the forest fire. It can

old

if

to $24 billion

1945

$3 billion and

most

our

but

increased

has

$5.6 billion in

based

are

extension.

credit

or

long-term
involve all

point in

danger

debt.

in

which

nesses

Geo. Eustis &

The

not

institution
is
not
as
prompt and direct but is inescap¬
able. Any collapse of debt brings
in its wake a collapse of the busi¬

Debt

short-term debt

as

structure is short-term

and
are

and

j ngs.

half of

debt and

it starts to fall it may

so

they usually pay a
somewhat higher return on sav-

Last

Public

the

of

as

redistribution
was

110%

are

the impact

person,

Agriculture Secretary warns this program
by government alone. Advocates research

be assured

and education in
Joe

and

savings

or

debt.

hurt by the other.

which

Today it is $302 billion,

about

Jim

bil¬

total

sum

for farm people, new
cannot

every

institution.

same

large

in

executive

every

If

second distortion.
very

But what happens to savings
what happens to savings

also

such

liquidity reserves.
real clanger is inherent in the

A

easy.

cern

adequate

The

Stating agriculture objective is to provide consumers with high
quality food and fiber at reasonable prices and, at same iime,
to permit full parity prices of farm products and
parity incomes

is

answer

institutions. And that should con¬

by savings institutions.

reserves

That

difficult?

Agricultural Policy

Secretary of Agriculture

final payment is due

or

and

is

Thursday, February 19, 1953

.

By HON. EZRA TAFT BENSON

probably is an overlap.
Now, what happens to savings if
that is true and further credit is
there

but

TOWNSEND*

W.

VV.

The New

to be told

to credulity

they are absolutely identical

that

.

also the savers. It is a

are

rowers

challenge

.

a

minimum

farm

to

nrob-

of

re¬

production and

nermit

the

maxi¬

of

dependence on fm^ marr
ket prices as the best guides to
mum

production

and

should

Farmers

not

consumption.
be

pLced in

position of working for Govern¬
ment bounty rather than produc¬
a

only with

a

steady level of prices,

high employment andjproduqtion,
and
our

rising output
total

national

per

^vorker

econOmyT-

in

ing for

a

free market.

However,

the abilitv to avoid restrictions on

Continued

on

page

44

V

Volume 177

Number 5196

.

.

.

The Commercial and Financial
Chronicle

(787)

ASSOCIATES is

a

name

famous-, in finance. In 1952 for the

first time, Associates' volume of finance business exceeded
a

billion dollars, an

encouraging endorsement of

our

the

from

a

a

growing

single office in South Bend

it has

years

to 132 offices in the
east

of

Rocky Mountains. In 1952, Associates made possible the

private ownership of nearly

by the two

The service
of

In 34

company.

heavily populated sections of the United States

trucks

keeping

sumer

out

half-million automobiles and

of three motorists who buy

provided by Associates is

money at

buying

a

work. Money is

power

is

our

a

on

continuous

our raw

time.

process

material. Con¬

product. Our suppliers of

money

stockholders, banks, insurance companies, corporations

are

Our

customers

the

are

we

to

finance
pay

for it

facturer is

automobile,

an

out

people of the

walk of life.

production, employment and

ASSOCIATES is

most

other investors.

The chain reaction of Associates service

financial

service.

grown

and

United States, from
every

we

a

helps maintain

high living standard. When

enable the individual

purchaser

of income rather than savings. The

manu^

paid. The dealer is paid. The suppliers of steel,

rubber, glass, fabrics and all the materials and labor that
go

into the automobile

thousands

of

Americans who
essential

are

paid. Through it all, magnified

times, Associates
cannot

or

prefer

creates

mass

a

not to pay

market of

all-cash for their

transportation.

In the free world,

people

use consumer

credit

to

buy the

things needed when they need them. Everyone benefits.
ROBERT L. OARE, Chairman oj (ho Hoard

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

Cash

and

Dec.

Marketable Securities

31, 1952

Dec. 31, 1951

$ 68,638,560

$ 61,909,059

LIABILITIES

Notes Payable, short-term

Dec. 31,1952

Dec. 31, 1951

$289,798,400

$245,636,000

29,334,615

24,239,263

24,453,479

17,567,105

65,005,000

40,000,000

37,500,000

22,500,000

9,700,000

9,800,000

10,418,240

10,418,240

51,069,123

44,438,493

8517.278,857

$414,599,101

Receivables:
Retail

(

motor

Accounts Payable, Accruals

vehicle installment

; receivables.
Wholesale

motor

Direct and

$372,957,016

$274,104,380

46,860,479

46,560,752

vehicle short-term loans.

personal installment loans.

..

26,906,226

31,373,278

.

Commercial and other receivables

28.696,977

26,815,172

$482,887,750

$3^386,530

28,733,293

17,058,559

Less: Unearned discounts..
Reserve for losses

10,392,105

8,067.468

_

Total

receivables,

net

$443,762,352

$349,260,503

4,877,945

3,429,539

$517,278,857

$414,599,l0l

Other Assets

CONDENSED CONSOLIDATED

INCOME

Discount, interest, premiums and other income $ 80,535,187

55,622,724,

Net income before Federal income tax

Provision for Federal income
Net income

Consolidated

net

earnings

stock after payment




per

share of

$ 65,801,881
■-

$ 23,630,511

12,000.000

11,737.463

$

11,630.511

common

of preferred dividends..

......

...

Common Stock
Surplus

...

$10.86

Investment

Associates

Discount

Company

Corporation

42;171,370

13.175.000
8

......................

Subordinated Long-Term Notes
Preferred Stock

..........

Dec. 31, 1951

$ 24,912,463

tax.

Long-Term Notes

Associates

Year Ended

expenses..

Unearned Insurance Premiums.

Reserves

STATEMENTS

Dec. 31, 1952

Operating

and

$10.76

Emmco

Insurance

South

Bend.

Company

Indiana

15

V
16

The Commercial and Financial Chronicle

(788)

lution

Commenting

Company

Steel

Bethlehem

the "big" economic and social changes in last

on

quarter of century, prominent steel company executive predicts
we can have "real prosperity in years ahead—a prosperity not
based

inflation and

on

but

arms

greater productivity, more

on

technology, and an equitable distribution of the fruits
revolution." Says it is a challenge to business to main¬

advanced
of

our

tain

a high
level economy, and thus have an opportunity to
justify faith in our capitalistic system, and warns business has
obligation to avoid getting into an "over-extended position."

The times

have

may

appeal to
fact

but it

some,

that

it

mentally

was

an

remains
of

era

place in

a

very

'

were

un-

produces what, where, in what ^^ement_ today to recognize
quantity and of what quality. *he rommunitiM wherein Siev
that not so
Third, competition, which is not The next step is for the bureau- iocated. tbat tbp, wpifarp of our
economists just "the life of trade," but an crats to* determine - who gets it. romnan';p<;
t;prl ,in with thp.
"mature"— absolute necessity if
weifare Qf the
community
u we are not Each control instituted creates
r.r»of00 companies
is uea
up wnn uie

But

funda-

economy

an

long

some

ago

off

ticking

as

of our economy.

-a——•

.•—x-

of

extremes

was al- to stagnate.
dynamism
Fourth, consumer's choices actlayed out with the "settling of ing through a free market pricing
the West."
;
'
system as the ultimate arbiter of
Weil, it is the thesis of Mr., Al— our economic life.
-

and

wealth

It

;

time
R i

len

d o'

-the

s

to

wages

hour

a

for

or

12-

day

and

10-

a

when

social

\Qf

resources; with tax laws
minimum wage laws which

our

and

'

and

huge

iures

imp ort

went to work, maybe
unknowingly, to change things. It
is becoming evident that we have
succeeded beyond our full ability

annual
of
cheap labor
it

seem

unlikely

that

made

the

tudes,

A. B. Homer

would

Law

Iron

be

ever

It

was

citizens
to

committed

was

of

reign

a

.

were

nation

the

whether

wondering

sober

when

time

a

conservative

Conservative newseditorially on
possibility that the perils of

plutocracy.

speculated

papers

the

than

Socialism might well be less

concentration

the

wealth in

of

a

few hands.

very

Yet

it

time, also, when
at
work
which

a

was

believe

I

we

men and demagogues

'

^

that

anticipate

I

been accom-

has

what

grasp

Incompetence, corruption, evasion
a general
breakdown, ^of

that wovlld get it into an overor weakened position

and

extended

will go on us.

you

have to accept this

were

lead

to

were

in

changes

vast

to

ith
with

move

a

equally
,equally

implications—a $5
minimum wage for an eight-hour
revolutionary

day. i
■
I could continue to pile up the
dates /but
:ss
process

the point is clear. A
going on within our

was

iho

4-,,n

fulf

the

economy

significance of

which is just now beginning to be

comprehended. We were coming
realize that, with the steppedup productivity that followed, the
Iron Law, which held wages to

to

the

level

that

the

least

skilled

of

transformation

industrial

our

the

discovered

have

of purchasing power in
tbe hands of the people. We have
effected a new industrial revolupotency

productivity

efficiency,

jn

tion

scientific technique. And

and

we

consolidate

on

ahead

I believe that
have real prosperity in the
years ahead — a prosperity not
based on inflation and arms but
based on greater productivity,
more advanced technology and an
equitable distribution of the fruits
of our revolution.
We can have that real prosperity if we avoid a serious war; if

would foist

we can

...

Either we rely on these essentials to guide the flow of men,
money
and materials into the
most
socially
useful channels
while providing the maximum degree of freedom for individuals—

we

the
working

frontier
of

the
I

discovery

—

the

broad

of

purchasing

mass

new

a

power

of the-people.

might add that this discovery

long antedated the advent of the
.Deal.

New

Mr.

As

Chairman, put it
"In

the

order

has

eeonomic

been

life.

earning

years

new

a

in

our

is

recognized,
standards of livthe

on

greater

of labor, and

power

sec-

ond, that continued prosperity and
high wages go hand in hand."
That

was

in 1928 and he had been

thinking in those terms for

I

Now

clear that

of account

is

New

only within the past

ink
thehas
exPloration
of
Wis nAwVhat
frontier
really gone
-

new

ahead with
♦From
fore-

the

an

a

full

addre*6

Detroit

is,

head
bv

Mr

Economic

of steam,
Homer

be.

ciub, Detroit,

I9S3.ih




.

had

been

the

past,

subject

that

enxywyeca.
and to our employees.

.^
cpmpan,«

to

some

No Company is well managed that
does not give its owners a fair
financial return on their invest-

the woods that grew up as a result
20 years of tinkering with nateconomic forces,

^

an«; of course> msiorys most
g*»
™r. come
«« wwith
h the
that
have
the took
big
c^an^e' with.the greater

under-

tfr«iW «qf-knowleSer
srif-knowN
of the
*£ Xrcosot
length I

P'e.

...

our

,

hplieve

challenge can

the

necessary

in

leave

out

series of practical rer

our

laws.

Neither

suited in

a more

uniform distribu-

wealth. . And then,V
there: is the part played by government subsidies to people, who,

(ion? oi

rightly

wrongly, are supposed

or

has

been

important.

But,

above

all, without the enormous gains
in the efficiency of American industry and business, the other
changes would have meant but
little.
to

Stimulate

Industrial

a

I

would

.step

posits,

and,, the

factors

and

like

•

.

to

do

IS

to

enormous gains in industrial ef-

/hiff

of:lei}ger

provision

'

.

.....

>

stronger than those less free that
made possible the progress we can

record today.
:

erv

:

nf

scoYery\
, the importance ot
sharing
its °f
benefits,
business has
come

?

;

to

a

comprehensive recogni¬

tion of its social

Free-Market Economy?

free-market economy deci-

responsibilities—

and

people generally have come
look on our private industrial

Street.

.

With Ducournau & Kees
(Special to The Financial

a

as

free-market

pursuit ot
of

ests.

It

whims

is

of

gy

is

con-

and

their executives
responding to alL kinds of ap-

companies .and
are

COLUMBUS, Ga.
Allen,

private. interprivate^ inter-, peals> They come m day by day H
subject to the but just take stock as I have and the
or
the you will realize that it adds up to w
economic czar. r - an impressive total.
.*

their
tneir
not

the

notions of some
,

economy

by private persons acting

Rolland

A

^taff

William B.
Dessert and

—

A.

-

stallings have joined
of King

Merritt & Co,

theorists

large,

prices

tell

us

For'

instance

representing

a

what to do economically. They manifestation • right here within
be;-whom

your ;great
fake

the

automobile industry,

activities

of

the

Ford

With Waddell &
(Special to The Financial

ST.

LOUIS,

our

thing that made 3VJr,;Foid^reyoH(;iic^s^>5and.'so TorthirSo1-long

as

Mo.

William

employers will be; whether Foundation; also the efforts and Blume a
will find^me- Vwetbuy.these goods or those serv-vceontributionsiof Mr. Sloan in the •*10w contiected

submit that at the heart of

Chkonicle)

La. —Miriam

NEW ORLEANS,

to
S. Rosenblum is now connected
to buying and selling, society'as the^primV sourc<Tof ma- with Ducournau & Kees, Whitney
and as to what goods are to be terial well-being for all
Building,
made and in what quantities, are
Q0jng beyond the normal disThree With King Merritt
responsive , to r.tire,-, impersonal charge 0f our corporate respon(Special to The Financial Chronicle)
functioning of1 .the price system. _ sibilities, you men know how your

In

sions

}•.
s.®
a system that have made.
determine where-we shall live;
big changes possible.
•
what our activities will
change we

.»■

,mu Sim
.

in
in

all of these
get at the why of our

ulullJ

"e^^ni^on
George Berry Opens
dependent.
: /^Oi^tnaLqnangei or-at-least isolate
(Special to The Financial Chronics*)
; But let us not forget that it was *
believe to be one of its
QUINCY, 111.—George Berry is
the presence of freedom running
aspects.
through our economy and the un|^ essence of tne Big Change eng'aging
a securities business
g
belief
n
that
iy
free l
men
re
are dibbi
^' front- offices at 220 South -Fifth

trolled

beyond

FUU11L

dIlu

A

How

__

ulrtll6CO

labor What Is A

of objectives of organized

jl

-

A_.

greater security for the aged and

can

effects of the
laws and processes that have rethe

many

Frontier

uS.

but there's nothing there beyond
the capability of this nation. As a
people we are by no means out or

legislative checks
future may agains^
greed of the few had
an analysis to .be erected. Let us admit that:

cannot

you
a

discount

What

it

Q

in

abuses

s

go

of

freedom

part of the

believe that some

Efficiency

years.

Exploration

the essence
essence of
was at
at
the
of the
the system,
system, was
a discount/Let us admit that that

go

better

and

to need help. Also, the attainment

created
It

based

are

our

once,

10

that high

first,
ing

last

Grace,

gains and

our

bigger

everyone.
That s a lot of lfs, I grant you,

ment, and .its employees steady
.
answer to what the
employment, good working con- ^; ./
^
;
hold can be found in
diti°ns and the opportunity to imt ;
p
i f Riidololl
of the nrinpinlfs whirh mnde the
nrove their Anrnincrc
R»if fhn ra.
JOIU5 I oui v^» ivuuuipti
of the principles which made the innovationriuch^"as"''the "reasSri-' Prove their earnings. But" the reBig Change possible.
able < regulation > of security ex- sponsibilities of the managers of
(special to the financial chkonio..)
Now it is clear that it didn't changes and public utility Mwiuiug
holding ™°dern business do not stop
^ there.
SAN JOSE, Calif.
Boris P.
come about as something dreamed, companies were in, order! So, toe?, -.^here^^af Been a change and the Martynow
is now with Paul C.
up by all-wise planners. It is also
was
the insurance; of - bank de- Quesh°h is, can we meet its chal- Rudolph & Company,
Bank ot
America Building.
.

you

of that law

to

things in the future?

forms

the

its

of military strength and the things the Federal Government is conwe have come to accept as part of ducted efficiently and inteiliour way of life that we can well gently, and at a reasonable cost
afford to turn freedom loose.
which would allow a reduction in
the whole process.
tw tsw rwi™™
the excessive tax burden we are
Ultimately, in a free society,
inc.wew l/nallense to Business all carrying, and if industry conacceptance or rejection by conThe challenge to business today tinues to utilize technological adsumers makes the market. That is to maintain a high level econ- vances to reduce costs and make
ds the only democratic way in omy. If it fails to meet that chal- better products, and if the bene'which a market can operate.
lenge successfully the fight for a fits thus made possible go to

survived

somehow

have

With

the repudiation

could

meet

to

prices goods should be , distributed. And it seems to me entirely
importance of the elements going appropriate that the consumers of
jnto
makeup. We have had a goods should call the signals on
Big Change as a fact, even though
we
may differ as to the relative

would accept, was no longer valid,

came

adversity

ability

good management,
Let me sum up.

A1t.

nounced

least

its

obligations or to maintain production and employment. This, in my
opinion, is the very essence of

free enterprise economy may be
lost. Ours is the opportunity to
the
years
to
follow. In
1901, stresses and strains of
justify the faith of a majority of
Spindletop blew in to provide the out new distributions of responsithe voters in our capitalistic sysenergy for the
automotive age. bilitv as between government and tern — capitalism modified by
In
1909, Leo H. Bakeland first the private sphere. And, broadly
democracy if you like. The reput on the market a chemically- speaking we have done all this or we slide into a system under sponsibility is to pursue wise and
made j substance which he called without inflicting any permanent which an all-powerful state at- constructive policies, not ,merely
bakelite, which was the seed from ~ the body politic
tempts to do these things for us. from the standpoint of company
which; the plastics industry grew.
r>P™iP
During the past 20 years the and personal interest - but also
And in the same year, Mr. Henry J****?
foundations of our American sys- from the standpoint of .national
Ford Went into mass production
^nusuarhas^anDened0^^ tem came, at times, dangerously welfare,
Our primary
responsibility as
of his model T. Five years later,
^nguv~^ ^llenae that the close to being fmedom,
undermined. The
this same industrial STS
which is
genius an- we up to the challenge ™at the «oonoi^cs™
* ,—
ferments

the

where

endanger

along with me in the assertion
Now we have the opportunity
that the producers of goods per- to make good on our common
haps know best how to produce faith in free enterprise. In spite of
and what goods to produce. It the cold war and the war of staleseems equally apparent that the mate and attrition in Korea, the
distributors
of
goods
perhaps American economy has proved so
know best how* when and at what productive of both the essentials

we

plished.

superseded.
and

to

material destiny.

labor union preshew management atti-

plus

wealth;

our.

base of disposable

the

broadened

Beyond that, I believe that busi-

Now it should.not be necessary

.

with-- .the

that

scene

other controls.

necessity for still

The next step is a police state to nesg generauy recognizes its re¬
enforce the thousands.-, of rules.:sponsibility for avoiding actions

.morality:follows inevitably.
to spell out to this gathering the
I submit to you that if. we
importance of any one of these would but have faith in what a
factors. There will probably be a truly free economy can bring, and
substantial degree of agreement if we truly practice the virtues
here that the market place is a of freedom, we will not have to
reasonably safe monitor of our submit to the expedients timorous

on

dynamism of invention and mass
iroduction; with the development

Iron Law held

minimum

commentators

.other

and

when

c a r

its

-.

a

was

it,

behind

^ready

poverty.

its future

that

meaning

healthy

determined largely portantly, the contributions ;to
consumers' choices — public service of our good friends,

are

through

provides the dynamism and drive

already a transformation of
exciting
magnitude
has taken

prior to World War I
occasional nostalgic

an

find prices

will

we

people acting as free individuals Charlie Wilson and K. T. Keller,
will find something which came making their
independent deciI believe that the responsible
before modern social legislation, sions — we have an automatic managers of our industrial society
or
before the
growth of labor regulator of our economy which have no serious thoughts about
unions or the emergence of "new works imperfectly at times but on
turning back the clock, or of
management attitudes." To my the whole pretty well.
abusing the economics of freedom,
mind that something might well
We depart from this system at by, compromise with real freedom
be described as the "economics of
our peril when an attempt is *n competitive life. To my knowlfreedom," and it could be an- made to tinker with the imper- ec*ge,
no professional manager
alyzed as being composed of four sonal market mechanism. It is worth his salt would believe that
essentials:
when artificial prices are set that there ** n0 public obligation beFirst,
the acceptance
of the people are apt to do the wrong YorKi bls primary obligation to
fundamental importance of pri- things—to produce too much of run "1S company m a profitable
vate
property
which is at the one
product or too little of manner jor the benefit of owners
root of all of our secular freedom, another. It is then that bureaus an^ employees.
Second, the profit motive which must be set up to determine who
ina^ea' U is simply part of gooa

By ARTHUR B. HOMER*

President,

possible;

something that made the gain in
industrial efficiency possible; we

The Challenge of the Big Change

Thursday, February 19, 1953

...

—

A

Reed

Chronicle)

John

>:

W.

Pavne are

J

with 'Waddell &

?field of medicine, and, just as iin-ArReed, Inc., of Kansas

City.,(4>

w

"Volume 177

Number 5196

.

•.

The Commercial and Financial Chronicle

(789)

'
■




CHEVROLET

-••

PONTIAC

General Motors
PRESENTS The Key Values
For 1953 —Handsome

examples of the engineering
progress
to

a

that makes the key

General Motors

car

your

to greater value!
key to
|gj|

NOW ON

DISPLAY AT CHEVROLET, PONTIAC,

OLDSMOBILE, BUICK, CADILLAC DEALERS

'W'W'W-&

BUICK

fww::

w&Mmstmmwzxxi

J*

S

CADILLAC
I

ft

The Commercial and Financial

18

Chronicle

.

.

Thursday, February 19, 1953

„

(790)
/

then

The Task oi

Ending
Eniopean Disunity

the

but

only

get

any

friends

Points out much has been accomplished, but

this

returned

I

from

week

a

in

troops

trip to Europe in company with
Stassen, the director of our

measures

Mutual

But

Mr.

Security Agency.

itself

I

with

to

to

re¬

European

called

outstanding example, they
created,
under
what
is
the
"Schuman
Plan," a

single

political

As

an

have

so

with
John

importance to the United States
unity in Europe, and the
that it seemed that some of

fact

friends

authority
iron

and

coal

might

deal

to

resources

be

changing their minds about mov¬

to this goal.
The problem in simple terms

ing

is

this:

Germany, France

jacent
Stassen

first

I

authority

that

saw

countries, of

continental

six

the

May,

Last

France,

Germany,
Italy,
Belgium,
the
of people
Netherlands
and
Luxembourg
who
possess an essential
unity.
signed a treaty to create a Euro¬
They have given
a
clear and
pean Defense Community. Under
special meaning to the concept
that treaty, each of the six coun¬
of Western civilization.
Yet, Eu¬
tries would, give
up•, having
a
rope
has
remained
politically,
separate "national army on
the
divided.
This has led to recur¬
continent,
and
would
join
in
rent wars, which have involved
It has

us.

made

is

up

weakened the West¬

so

ern

European

day

no

that to¬
could offer
to
the
Red

countries

of them

one

resistance

.•strong
armies.

situation

This
and

cradle of

our

us.

industrial

power

hurt

it

•our

if

us

cruelly

could

were

so

operative in six months.

We

controlled

by

friends

and

It has been clear for some time

single

biggest

postwar

cask would be to end the disunity
in

Jpurope which makes for weak¬

ness

and

war.

United

effective
six

in

its

own

from
without any
steps to ratify, and the
the

months

six

went

months

by

has

now

been

This has
disconcerting to

somewhat

because the plans for
security
are
based
on

us,

As the second world war blazed

wrote: "Continental Europe
3ias been the world's greatest fire
up, I

The

hazard.

consumed

aiow

the

whole

time

in

When

flames.
to

comes

is

structure

rebuild,

should

not

reproduce

strated

fire

trap."

we

demon¬

a

•of

Europe are all face
with that very problem.
fire

Or

devise

something better?

Wants

a

When

Shall a
be
re¬

not the wit of

New

the

United

first

Senate

in

draw

as¬

Atlan¬

Organization,

which

German

on

create

ropean

military strength

solid

a

continental

Eu¬

$30 Billion Already Contributed

requires

of

of

I

urged,
Relations

thousands

in

Europe.

of

We

years we

about

our

$30,000,We have tens
armed forces

have

the

made

the

the

Western

six

military
to

tries

concerned

declaration

rival

into

himself

Organiza-

and

traditions

The

strong.

coun-

often

have

in

proud

are

the

and

feat.

is

This

memories

needed

if

the

in

peoples of Europe

to

face

the

of

found

the

We

floods.

the

also

of

statesmen

^ul^hjdff^nmon?

neoiXs
ge among the Peoples

w

t

they

as

physical disaster

recent
among

de-

of

greatness

unity
is
to
be
quality, however,
We saw it in fact

That

is not lacking.
had

that

means

achieved.

victories

of

memories

bitter

political

the

hard
haid

which

decisions

would

evil oi the past and

J?urfYf

iortiiy tne good.
After

land

but

They look not back-

forward.

the
promise that lies ahead
they desire to move into it.
They

see

of

Plan"

lantic
the

Treaty Organization, and problems that President
stationing of United States hower asked Mr. Stassen
to

*A
«ver

talk

by Secretary Dulles broadcast
combined radio and television net¬

works, Feb. 12, 1953.




go

seven

Rome,

to

Europe.

European

then

We

capitals

Paris,

Eisen¬
and

went
—

me

to

first

then London,

of

entrance

in

Therefore, before
in existing
companies, the investor must look
price.

making commitments
barriers

which

success-

may

prevent the entry of new
firms.
For example, do present

leaders

industry
control

of

those

whom

shall get from President Eiswho is accustomed to

enhower,

ample which he will set. At this
dangerous time, peace and security depend upon clear vision,
righteous purpose and firm performance. Let us all work together to achieve these goals.
—

——

•

of

ings

methods

or

production?
Are such large
of capital required that

is reasonably difficult?
existing companies exercise

Do
ef-

entry

the

in

than those with

a high pay-out.12
Since growth in this instance is
dependent in part on the cornpound interest principle, the in¬
vestor should also examine the
rate of return on invested capital,
Finally, it is important to deter-

mine

to

what

extent

the

new

product or service contributes to
total profits. Unless the growth
a firm's total business
is substantial, it will not produce
the results of a true growth stock,

over sources

of raw

In other words

management

is

discover

to

hiring
growth

situations.

materials and

treme

growth

specialized types of
equipment?

hv adontin^ this

appLach Z tave^or

labor

or

retained

are

formed better on the average, in
terms of both dividends and price,

amounts

fective control

which

business. A fairly recent study
of utility stocks has indicated that
stocks with a low pay-out per-

effective portion of

have

patents

over

Recognizing the exdifficulty of selecting
industries

and

growth

Let me cite a few examPles* companies within these industries,
d0es not reqUire

Sjnce

great the investor turns the task

over

amounts
of caPital or know-how to skilled management which has
assemble TV

to

sets,

have

fjrms

many

the

entered

new

industry.

proved record.

a

Westinghouse,

General Motors

Electric^

General

Qn the other hand, to enter the du Pont, Monsanto, Corning Glass,
rpy

broadcasting field one must
a
very
sizable amount of
capital, a license from the FCC,
technical

and stature.
ward

of vision

growth

industry

the

by

panies
crease

these countries

men

growth

a

firms, stocks of existing commay show very little in-

new

have

are

if

because

achieved

jg

talks, we
know,
and
gladly
report,
that
the political leaders in each of
friendly

our

in

the

This is extremely impor-

firms?

the

termination
fcTTake*
termination
to
take

we

—

investor must also
ju(jge how the industry will grow,
it grow through expansion of
existing firms or by entry of new

fully

and

considerable

a

ability.

of

amount

into the

Entry

Minnesota Mining and Manufacturing, and American Machine and

Foundry might

serve as examples
companies. These firms
cannot be nicely classified ih any

of

such

latter field is much more difficult;

one

consequently, stocks in existing
TV broadcasting companies may

ally

industry. They are continudeveloping
new
products;

growth than the stocks

they create growth industries. The
days of Henry Ford in a carriage

of some of the present television
set manufacturers. In other fields,
such as the manufacturing of elec-

shop and Charles Goodyear over
his kitchen stove are largely past,
The products of today are complex

a

trie resistors and capacitors, entry

and

mention of what the governments

quite effectively blocked because existing firms have developed and keep secret specialized

For

and

in

Having spent most of
talking about what

the
I

like

peoples

do,

with

expect of

Europe

of

will

conclude

to

time
hope

my
we

countries

European

would

and

in Western Europe

when

with

in

was

unity,

European

Eisenhower
Europe, how

Gen.

them

deep and firm

his interest in
political,
eco-

nomic and military.
we

able

were

that

President

hold

to

On this trip,

to

Eisenhower

the

same

European

con-

regard

unity.

,ri

„

.

TT

U.

_

S.

.

in

Europe
In

will
of

each

and

the

of

we

friendliness

not

more

is

wh4u gr?.^

coun-

found
on

situations because

ditticuity ot entry into

the

these fields.
Growth Company Approach

The alternative to the selection
of
growth stocks from within

good
the part

fear

but

that

we

also

the United

stocks

of

companies

and

recognize

dynamic

and

which are
enough to

develop

growth

products or services. The investor
must look for aggressive manage-

found develop
States

the

average

investor,

such

company approach" in the selecti(m of growbl stocks seem to be
exemplified in various investment

trusts. Fundamental Investors, Inc.

and Growth Industry Shares, Inc.
appear to follow the policy of se-

lecting

a

growth industries is to purchase leading
flexible

seven

are
developed in expensive
laboratories through the combined
efforts of hundreds of technicians,

material handling equipment, companies as these seem to offer
Companies conti oiling known the best growth possibilities,
sources of cobalt, titanium, and
Examples of the "growth intantalum may also prove wortn- dustry approach" and "growth

continuing research to
new products and new

governments and most of ment and

people,

some

these

visited

we

show

interest.

conviction, with

same

them

assure

Some Mistrust oi

is

military

confidence

11

„nnp

commjtment

j^s

industry,

for

been enemies. They
fought each other and there

of the "Mar¬
qualified to give the free
recently that he was im¬
the
kind
of
act,
and into our pressed with the "feebleness" of world
leadership
assistance
acts,
and alternatives to the European De¬ which it needs at this critical
that concept
moment.
It is conceded that we
underlay the im¬ fense Community.
It was to discuss all of these have the material power, but it
plementation of the North At¬
shall

most

The Selection o! Growth Stocks

have

the

camps. *
President
Eisenhower

said

which

Continued jrom page 11

recent years

national

to make Europe

divided

weakDelense

that it is easy
this.
National

grown

emphatically

is

fatal

a

not pretend

have

if

enough

NATO

stout and dependable heart.

a

I do

be

it

this treaty

as

whole

the

Treaty

safe

policy

combined,

S011!!?11!1
li \S- n®ede<? t0 £lve .the
North Atlantic
tion

we
do carry a
responsibility.
Any

rnnHmipt3 frnw

strength

economic

The European

ever

will

do

can

the

—

European

has

that

step
couid mean disaster
not only
for us but for our
friends.
Possibily
our
friends
would suffer even more than we

which have
Defense
Unless their

Europe,

organization

tries

adopted
by
Con¬
written into the

structure

and

be

the

But

countries

contemplates,

vitally affects our own se¬
curity.
But our effort will not

States

hemisphere
and

Treaty.

state-

iajse

far-flung

the

the

United

qualities

ments as reasons why the Euro- carry heavy responsibilities and
nations should not trust us. calmly make grave decisions. We
It is important for us to re- shall do well to follow the extremendous

continental

Community

persons

and

incidents

Atlantic

North

this

is

building of a new Europe, which,
more
unified, will be a betterEurope." That point of view was
was

this

such

use

member

far-flung ornot only

a

Unscrupulous

reckless.

ATArrr.

INAIU

includes

in

of

is

Unity

Mediterranean.

of

core

to

It

now

It

the

in

but

before
the
Foreign
Committee,
that
in
granting permanently
serve
Europe,
or
European
aid
"the
basic
idea overselves, or humanity, unless it
should be, not the rebuilding of fits into a constructive program
the
pre-war
Europe
but
the for European unity. Nothing that

gress.

is

countries

tinues

the

visited went far, I think,

we

pean

Weakness

Fatal

ganization.

in

.,

TT

European

Has

effort because the security of Eu¬
rope

tries

Candor

this.

say

„

was

seven

contributed

000,000 to Europe.

Europe

to

us

Without

is

progress

planning will be difficult.

knew,

Europe

During the last

concrete

into

us.

military establishment.

To

De-

Without that, future

being made.

Our friends

have

program

1947,

the

North

the

Defense Community which would

man

aid to Europe was before

interim

the

can

Treaty

own

the

are

The talks which we had with often lead to war. It does mean
good the political leaders of the coun- that in order to win and hold

is a
European

that. real

evidence

face

to

trap

built?

that

our

does not include Germany, would
be
bolstered
by the
European

to

Today, we and the free peoples

demonstrated

sumption
tic

pro¬

to nine months.

longed
been

strong
right.

Europe

amount of fear.

dents and upon statements made which it carries,
here which seem to them to be
That is the kind of leadership

were

European
bold step

this

taken

vigorous

States

our

making

May

plan

the

that

had

toward

last

the

the

delighted

However,

enemies.

that

in

that

give

not

there
the

translated

be

could

ratified,
be made

distresses

both

Europe is the
civilization, and its

endangers

building there a single European
army.
It was contemplated that
the
treaties
could
be
promptly

na-

was

did

to
accomplish
European
friends
alsoi habits
of thought
tackled the vital problem of mili¬

unity.

our

that for 20 years in war and peace tional conduct,
with a Democratic administraThat
does
no
mean
being
tion. To them, as to many Amer- timid, and afraid to take the
We did not icans, a Republican administra- initiative, to speak frankly or
promises or tion is a novelty, and to the un- to make hard decisions. IndeEuropean known always carries a certain cision, weakness and vacillation

we

Our

tary

be

we must

restrained in

and

proceed.
We hope that in the
coming weeks this determination

practical operation
at Luxembourg.

into
capital

go

its

at

and

Mr.

Sunday,

Last

states.

sober

to dispel these fears insofar as we need as friends and allies,
official quarters are concerned, we must at all times play the
However, the public and the op- part of a nation which is fully
position parties seize upon inci- aware of the grave responsibility

the ad¬

and

admin-ourselves. Therefore,
worked

Community will be brought
into being.
There are plenty of
hurdles to be overcome.
But we
believe
that there is a
will to

ness.

of

European

the

F. Dulles

d ous

Europe

that

made

of real

our

the

of

plans

They have already done much.

quickly
abroad.
The
reason was the
tremen

en¬

themselves.

leaders

home,

went

the

port

much

to <io at
we

that

chance

NATO

that

ideas

the

are

trying to impress an Ameri¬
scheme on Europe, but to sup¬

can

may

so

would produce
which
could deter

been

wonder why,
with

a

lightened European leaders them¬
put forth.
We have not

you.

You

of

selves

Now

wish

Europe.
together with
unified con¬

Europe,

These

Congressional

port

to defend

steps,

feeling

aggression.

met, and
meet

leaders.

these

strength

a

shall

lurther,

was

creation

tinental

ported to the
President; I

None of these
looked upon as in

having

after

We did come back with the

will

Europe.

adequate

the

We have re¬

have

NATO

will be difficult. Says opponents of
idea spread distrust.

and

Republican

new

a

European Denot dead

sleeping.

—

with

istration,

was

l'ense

delays have been disconcerting, and without future planning,
progress

Luxem-

concrete
from our

pledges

Secy. Dulles reports on recent trip to Europe, and says chief
problem is to end political disunity in Europe, which makes for
weakness and war. Holds task is to rebuild a new and more

real

Hague,

then

project for a
Community

any.

unified Europe.

The

and

Our conclusion

bourg.

Secretary of State

-

then

l'ense

DULLES*

By HON. JOHN FOSTER

Bonn,
Brussels

then

markets.

Obviously,

the

new

fields must be successful. An aggressive management and research

growth industry and then
companies from within

these industries.

feet

a

Fund

growth
holds

Rather than

common

companies operating
area—t'^e
the

se-

industry, the Texas
stocks

m

Southwestern

Unite(J

a

of

growth
of

part
the

other

uuiei
hand, T. Rowe Price Growth Stock
,

Fund, Inc.
the

department which turn out a se-

pays less

attention

to

industry and seeks shares in
utleJnocc,

i.-

u

u

flops will
p
which has
hardly provide profits for the demonstrated long-term growth
is
questioned whether we have stockholders. The investor must of earnings and which, after carethe accumulated wisdom to make also look for strong finances to
the
best
Use
Of
that
power. CUShiOn the Shock Of Occasional __12H?nry S. Schneider. "Two Formula
They are particularly concerned unsuccessful ventures. He should
f°fr £!*n°a°nc"? J^m°i9s}ocks'"
because they now have to deal coi^^cr me pj.o±A>i nun oi eai.iiries of

magnificent

new

,

Volume 177

Number 5196

..

The -Commercial and Financial Chronicle

.

(791)
ful

research,;gives indications

of

continuing growth in the future."13
This policy nas
produced excellent
results in the brief
trust.

companies, but in
is placed upon

"stress

case

the
to

search

for

securities of small

moderate

which

sized

to

seem

whether

*

ability-' to

(4)

de¬

:

situations.

This

Because

of

the

excessive' be

popularity of -growth stocks

at the

seems

forced

before

to wait

realizing

15

to

20

years

total return

-a

or

be

upon

securities
rather than upon

evaluate

the

machines,

and

end

treme

products.

care.

times

By

paying 20

earnings the

or

investor

30

volvine
vo
v
g

may, be

less
less

better

risk
risk,

to

wait

Tori
av
loday

it
It

before

buying

growth

a

stock

until

any

attempt to
leaders."14

gros

&

g0

passed

Feb. 7.

as

a

compared to

increase

an

of about 143% in the Dow-Jones
Industrial average.15 These trusts
mentioned

are

investor
growth

show

is

stocks

tion himself
the

to

who

leave

or

nine

the

in

do the selec¬

may

management

that

interested

of

the

task

to

invest¬

some

ment trust.

Finally,
of

a

important word

very

caution should

those

who

be

advanced to

would

buy

stocks, either directly
investment trusts.
current

many

Price
If

can

you

in

you

are

for

of

20

be

disregarded.

30 times

or

anticipation

of

mortgaging

many

the

to

years

is

its

at

of

1952

80

cents

during
50%.
expect

Dividends
of

assume

that

of

at

that

—and
at

the

rate

a

of

we

annual

5%—certainly above
of

$2,440,377,109

rate

will

United States of America
Dominion of Canada

'

'.

J

all future

about 16%

Railroad

these

Industrial and Miscellaneous

14 years will be
required for
receive the equivalent of

over

to

an

annual

money

return

of

would

you

5%

the

on

invest

now

division

utility

Chemical. If you anticipate
pay-out of 40%, a period of over
20 years will be
required before

.

;

.

.

.

.

...

i,

.

.

;

.

.

101,437,206

.

.

Preferred

.

dowments and other payments,

,

.

....

.

will

realize

equivalent
sober

to

facts

total

a

5%.;16

to

return

These

take

into

111,323,460

selection

summarize
considerations
in

of

Farm

I

growth

.

the
the

.

.

estate

i

'

.

.

..

.....

office, Housing

.

..

.

>

625,158,596

,

$33,598,836 and

126,407,921

in

.

.

and

.

63,531,363

.

•

for investment-.

4

.

properties

7

67,819,283

Other

712,080

.

The objective is to
purchase
stocks
which
will
increase
in

price

than

more

period

of

at

average

least

two

over

a

(2) Of the two approaches,
of

'then

within
the

Cash in banks and offices

.

Premiums due and deferred

selection
and

Company's policies

a

of

that

growth

leading

.

94,303,639

.

industry
companies

industry is probably

and

Other

rents

.

.

General
assets

10,061,539

Total Assets

.

.

;

.

$3,540,545,595

•

•

12,746,000

•

19.564,108

.

.

reserve

.

.

.

.

*

.

.

.'

3,230,143,3 57

POLICYHOLDERS

for Group Insurance
for

reserve

security values

30,279,005

.

payable in 1953

Obligations

Contingency

50,049,421

.....

due and accrued

27,519,914

.

Commissioners.

taxes

Contingency
Interest and

for bonds and stocks

SURPLUS TO

36,160,046

.

the

difficult for the average
involves more risk

more

investor

.

79,098,836

.

obligations, including accrued

Total
on

business

cycles.

/

Loans and liens

reserve

expenses

(1)

...

yet re¬

required by-the National Association of

nsu ranee

Accrued

.

26,238,652

settlement
not

reserve for ultimate
changes
policy valuation standards $45,500,000.

As
1

48,542,216

.

paid in advance of dut* date

498,750,675

.

.

'

policy obligations

Premiums

properties acquired,

Foreclosed

stocks.

.

.

process of
for claims

sum

,

Valuation
Real

other

briefly

important

estate
:

Home

Summary
us

real

on

Residential and Business

additional

an

ported.
Other

are

account

before buying
any growth stock,
particularly at this time.

Let

Mortgage loans

including

of payment

process

Including claims in
and

a

you

236,861,674

.

en-

payable £o policyholders in 1953

Policy benefits in

185.624,877

.

74,301,417

.

.

.

claims, matured

dividends left with the Company at interest.

664,720,377

....'.

.

Guaranteed

or

Common

.

$2,779,571,957

.

policy benefits.

Proceeds from death

1,010,582,735

223,555,004
.

.

.

determined in accordance with

Policyholder and beneficiary funds

Dividends

Stocks

in

Dow

.

amount

reserves

legal requirements which will, with future
premiums and interest,-assure payment of

State and other civil

Public

times earnings. Under
assumptions, a period of

The

30,400,963

.

be

earnings.

Statutory policy

.$ 409,680,824

Furthermore, to be on the safe
side,
we
count
on
eventually
being able to sell the stock at

you

1952

OBLIGATIONS

Bonds

in

average

pay-out
60%

COXDITIOX, IIElEMItlll Rl,

ASSETS

under

growth

an

IIWM1AI.

paid

were

pay-out

trend

earnings to be
of

share

STATEJIEXT 1)E

$41

earnings.

us

the

price of

times esti¬

per

Let

For

common

25

1952—a

insurance...

future

come.

current

selling at almost

mated

earn¬

growth,

example, Dew Chemical
stock

through

growth

over-valued.

are

never

pay

ings

selves and their families

Because of tne

popularity

stocks

growth

through

or

.

fluctuation

.

.

»

.

surplus

Total

Surplus

Total

Obligations and Surplus

8,580,000

in

*.

.

46,960,000

•

.

254,862,238

.

310,402,238

........

.

.

.

$3,540,545,595

than the average small investor
should assume.
Few of us
are

gifted
to

with

recognize

Many

suffiicent

foresight

a

industry.

growth

industries

record

of

already

which

have

growth

<tre

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

at

$605,735 in the above

their

potential.
Selection
of
individual companies in the
early
stages
of
growth
poses
great
hazards because
many will fail
and only a few
succeed. Further¬

since

industry

growth

is

sometimes achieved by the
entry
of new firms
rather than by rapid
growth of existing firms, a
growth

industry
vestor

may

with

not provide

prescribed by the National Association of Insurance-Commissioners.

deposited for

purposes

required by law.

'

a

DIRECTORS

growth

more,

as

statement are

have

may
most
of

realized

All securities

Charles ll

Ayling

Joseph E. O'Connell

Daniel L. Marsh

Karl T.

Charles F. Adams

Paul F. Clark

Byron K. Elliott

Thomas D. Cabot

Guy W. Cox

William

Carl P. Dennett

Edward Dane

Albert M.

M. Rand

Compton

John M. Hancock

Merrill Griswold

Ralph Lowell

Samuel Pinanski

Philip H. Theopold
Olen E. Anderson
E.

Taylor Chewning

Edward B.

Creighton

Hanify

Georges F. Doriot

the in¬

extremely profitable

growth stocks.
(3) The alternative

approach is

the selection of
growth companies

whose aggressive
management has
"13 T.

Inc.,

Rowe

Italics

31,

April

p.

2,

lishing

p.

Fund,

Inc.,

MUTUA

1952,

p.

BOSTON,

2.

Tables

7.

Inc.,

The

Pioneer

Guild, Stock Growth
(Boston.

Company,

MASSACHUSETTS

Prospectus,

COPY
E.

COMPANY

Fund,

5.

16 Samuel

Disccunt

Fund,

1952,

15 Pioneer

Story,

Growth

mine.

14 Pioneer

March

107,

Price

Prospectus,

Financial

1931),

108.




pp.

and

Pub¬

66-68.

OF

THE,-COMPANY'S

COMPLETE

REPORT

WILL

BE

SENT

ON

on

away
!

gain from
31,. 1941 to Dec. 31, 1951 of

Dec.

370%

more

Alfred Risher, partner in Wade

mav
may

any

market

is

Alfred Fisher

excnange,

policy produced

it

reasonably priced.

no

undervalued,

listed

not

processes,

companies

national

This

policy

growth

particularly reason-' present time, the investor should*
higher than he could Pbtain by
history of this able in view of the increasingly weigh the
price asked against the
Pioneer Fund, Inc. also se¬
complex nature of our industrial potential appreciation with
buying less spectacular stocks inex¬

lects individual

this

demonstratedits

velop

19

REQUEST

The Commercial and Financial Chronicle

"(792)

20

> w

Thursday, February 19,1953

workers, ^industry now

©utnum- exchange reserve of gold /and assumption that Canada is recesabout: two- to U. S. dollars, amounting, at latest siort-proof. But by the sametdken
;one.' :A';
report,; to $1,860 rmHion—a sum there isdn the partof-thebuslA -question which I am .sure which* by the way,* is only a tew ness community a greatdeal of
must be. in your minds at this, dollars smaller tha«t the gold; and*, sober lahg-range confidence pi
.stage is:; "To what extent has, dollar reserve of the entire sterl- the kind that ahows up in the very
Canada's capital expansion been ing area.
*
practical form of wdlmgness^
i dependent on-funds from beyond
Canada's experience, during the invest large sums-of -mpney id,
'

1 ber the, farmer; by

By W. T. G. HACKETT*

.

■

>

—

..

Assistant General'Manager
Bank »f Maltreat,

'

^

Montreal, Cmada

.Canadian banker explains forces leading to

:

*

•

CanadaV'remark-

her

daring fast two decade*, and stresae*
particularly tbe impact of new capital investment, mo*t of
which was supplied from within Canada-itself. Say* there is a
drama of discovery and development of new resource*. Hold*
'Spectacular strength of Canadian dollar !* not due to mounting
capital inflow, but rather to improvement m batance-of-payibsaU situatson. Denes there is a widespread "boom psychol¬
ogy" in Canada.
able economic progress

own

borders?"

The answer,

wartime and early postwar;years,

ment has been financed

by Carta-

a story to go into here. I shall
that only suggest that the lessons of
point more precisely. In the three Canada's experience in this reyears ended 1951, net capital in- gard illustrate the extreme difflow
to
Canada
(the bulk
of ficulty of fixing an exchange Tate
which
came
from
the
United which will for very long remain

dians themselves. Let me put

States) was equal to only 14% of
just a little about some pf tne an money spent in Canada ior
major developmental projects capital purposes. Moreover, at the
now under way. But I soon found en(j 0j 195X the proportion of Cathat to do so would take me far nadian industry controlled outbeyond my time limit. There are
0f
Canada was somewhat
too many of them. Let me just smaner than in 1939. Similar estisay, therefore, that
the^ additions mates for 1952 are not yet availto productive capacity have been able
put, from what we already
...

It is difficult to avoid superla-,
lives in telling the story of Cansda's progress in recent years for
the; very good reason that the facts
happen to be
superlatively
impressive. To
,

sketch

the

in

you

background
for you 1 must

broad and diversified
front. Our steel industry has en-

UAe 4-a

larged

on

a

very

know of

capital movement during

the relative role of putside funds was even smaller than
in the three preceding years. The
1 11 try to use metals
processing has been car- facts j have just quoted refer, of
them frugally. ried further into the fabricating
COurse, to the over-all picture,
The f;irst
stage. Our chemical industry has in specific industries outside capfactual point become more diversified and has
ital has piayed a much more imbut

statistics,

L

Canada

a n nu a

W. T. G. Hackett

AvaAflv

„lmAcf

Aimosi

exacuy

of

^t®'
ve^c4e P™"
tripled since 1939,

doubled.

HnnSrin
rpJ
xn reax

aouoieu

cc>very and

which

I

must

frequent question. But the growth
trend has continued, and in the

Prairie oil is a story in itself,
Back in 1946 our proven oil re-

was a

marked and

understandable expansion
output in the war years them-

of

selves—so much

so

that "What will

do with all this

we

the

war

capacity when

serves were about 65 million barreli Today they are about two
in real terms, by 21% as against billion barrels, with conservative
a comparable increase
of 13% in estimates of probable resources

your

country. I might add that we
the

avoided

recession

moderate

starting at five billion barrels and
going

up

amounting to about one-fifth of

short-term speculative capital. It

insufficient'and

are

the

account

as I have already inferred, is balanced by capital movement
this last-mentioned condition or out of exchange reserves. And
which influenced the govern- against that background it is

was,

decision

ment's

in

September,

1950, to abandon the fixed exchange rate and to let the rate go

significant

sureiy

Canada's

that

great expansion has

yet done

as

relatively little to render her less

free to be determined by market dependent on export markets. It
forces. Within 15 months of free- is true that some of our new
ing the rate the government took sources are already starting to

deeply

being no longer under the necessity of maintaining a fixed rate,

But in respect of such key prod-

this matter of
capital movement which may in-

it quickly became possible to
reply on the fluctuations of the

and paper,

to

detail there

aspects

you.

are

one

or

of

ucts

base metals, lumber,

as

commodities

cultural

pulb

wheat and other agriwe

shall

Actually, and contrary rate as a force tending to stabi- stiU need large-scale export out*

popular

impression,

the

net

lize capital movement and trade

ie+s

-•

tr

It Is here that the Canadian
diminished substantially m the
stgnifi- situation haselementsof vuliier^
past two years: In; 1950 the net cancethat throughout.thepostwarability on two counts. In the first;

'

;

•
It is, I think, of some

#

past seven years Canada's annual
gross national product hasJ risen,

de-i

pendence on foreign trade. We are
massive exporters in Canada,
merchandise
exports alone

gross product. We are also
prodigious importers and our exrate brings loss of exchange re- p0rts of goods and'services are
serves and, intensifies the depen- usually not greatly in excess of
dence on
controls. An under- the amount necessary to pay for
valued fixed rate can lead to an our imports of goods and services,
embarrassingly rapid inflow of jn some years
indeed
exnorts

temptation to dwell. Time capital inflow into Canada has trends;

is over?" was, by 1944, a

there

Sily

reali-'

two

re-

Permits me only to mention the
\ast deposits of iron ore and
Utanium in Quebec and Labrador,
new nickel-copper jmd uranium
finds in Northern Manitoba and
Saskatchewan.

own

At the risk of getting too

jnto

development of new terest

resources—on

the

extreme

P°rtant Part' particularly in the the final step of abandoning ex- displace imported sources of sup-;
development of oU and iron ore. change control. In other words, piy^oa is a notable example.'
other

Then there is the drama of dis-

^in1yoeu^sist

:cLe

has

in

of. Canada's

nation

accurate reflection of underlying forces.: An. over valued fixed

140%

production of pulp and paper has

and

go oas

80

duction

s

1 pro-

duction

the year,

outlook

mear-term

an

since 1939. In both steel and base

"SSS' a150"4

'hat

®

1939

its Pr°ducti°n by

^

iong.term projects^

find a little surprising,with exchange control andin gov- f Perfidps the greatest s i n gle
for it is that by far the major ernmenteUy-determinedexchange factor^ accounting
fpr the charpart of Canada's recent develop- rate, is too long and too complex acteristicaily cautious view of the!
ypu may

movement of capital funds - into
Canada was in excess of a billiori
dollars. In 1951 the.net Inflow was,
$563 million, while in 1952 the
comparable net movement was
probably of very small proportions; indeed. Yet throughout the
whole period new capital for direct investment in. branch plants
and subsidiaries has been entering Canada in steadily increasing

from there. In the same

volume. Another form of

;

■

/

penod the debt of the Canadian
Federal Government has been
steadily reduced by an unbroken
succession ,of governmental cash
surpluses. In consequence, since
the end of 1945, this debt has declined $2^4 billion, or by over
12%. In relation to gross national
product, Canada's Federal Government debt represents a smaller
burden today than it did in 1938.
Now in one sense it may be

long-

place, nearly 55% of our uaer-*
chaadise exports come right here
to the United States of AmericaX
Business fluctuations and trade
policies in your country can.
therefore directly affect Canadian
conditions. You are our best cus*
tomer. We are also yours. But to
leave the statement there would,
give

entirely false idea of balFor your purchases of goods
and services from us in 1952 profean

ance.

experienced in 1949. period output of prairie oil has term capital inflow—the sale of
In that year, U. S. industrial pro- risen eightfold and when trans- new issues of Canadian provinces
,duction declined about 8% while port facilities become further ex- and municipalities in the New
ours rose about 11A%'.
panded production from present York market has also been on the

argued that this financial aceom- ably amounted to about $15 per.
plishment has been of direct head of your population. Concur-

Underlying this broad advance wells will be much greater. Even increase. What then has\caused
been
a
number
of
strong now, however, Canadian oil is the decline in the over-all figdemand. Our own con- supplying nearly 40% of Cana- ures? The answer is that in 1950

$206 per head of our population^
Moreover, leaving the per capita
relationship entirely out of the

whi ;h

you

has

forces of

dian needs as compared with 9% there was a heavy influx into
in 1946. Self-sufficiency in the Canada of funds of a semi-specusince 1939 with virtu- sense of a balance between ex- lative or purely speculative naally full employment and with ports and imports of oil is seen ture, based on the assumption—
income
well-distributed.
As
in as a practical possibility in about which later proved correct—that
your own country, the domestic five years.
the Canadian dollar was undereconomy has, since mid-1950, had
Out on the Pacific Coast, in valued. In 1951 the movement of
the stimulus of mounting rearma- British Columbia,
where things such funds dwindled to negligible
ment requirement. Export trade usually get done on a big scale, proportions, while last year there
has been buoyant throughout the is a project already half com- was probably a net outflow of
entire postwar period/
'
pleted which "involves changing short-term money of this type,
But the most significant dynamic the flow of a chain of small lakes, There has in all probability been
element in the Canadian situa- building a dam to control - the also an increase in Canadian intion has been the impact of new 350-square-mile reservior so vestment
abroad. In summary,
capital investment—expenditures formed, discharging the flow from while the amount pf money comon new plant,
machinery, equip- this reservoir through a 10-mile ing from abroad has diminished
ment, public works, utilities, tunnel through solidrrock run- in total, the amount coming for
housing and institutional facili- ning down to turbines 2,600 feet long-term
productive
purposes
market has expanded, with

sumer

increase in population of more

an

than 25%

ties.

Both

absolutely and rela- below the reservoir level—a drop
tively these capital outlays have 16 times that of Niagara Falls,
risen steadily since 1945. In that The result will be new hydroyear capital
expenditures were electric
capacity' of7 a million"
equivalent to about
11%
of horse-power, which could.be, enCanada's

national

product, larged to 1.6 million horse-power,
year the corresponding re- and through the use of this energy
lationship was almost 23% of a the ultimate doubling of Canada's
greatly enlarged gross national present capacity for the. producproduct. That "23%" is a thought- tion of aluminum.
gross

Last

.

provoking
means

figure.

is that

For

what

it

So much for

a

very

brief and

assistance to the concurrent program of private capital investment. With the amount of governmental debt in the hands of
investors steadily being reduced,
the capacity of the market to
finance mounting private capital
requirements without undue inflationary strain has been improved. On the other hand, the
result has by no means been

.

f

.

incidentally, this, rate of
creation of capital assets is probably the highest in the free world

*arm*.Jn 1939, for

today,

working in industry there was paying for corresponding imports country's economic outlook.
another engaged in agriculture, by $525 million, the deficiency
Something that impresses

Canada's

duction

is

nearly one-quarter

present

being

annual pro-

ploughed

back

into the creation of capital assets
which in one way or another will
go to

increase future production,

And

WhIn
remarks
*A«

the

r

I

«

was

pieparing

thought

address

bv

•

«

Mr

Treasury Division of

these

,

musings of a Canadian on his

Since

many

1

might

then, agricultural employ- being a little more than made outside observers of the Canadian
tell ment has decreased by about one- good by inward capital movement, scene is that while we are able

u

•«,

t

«

«.

thV Association

p American
Railroads, Philadelphia,
ruary
e

every Canadian goods and services fell short of

.




Pa^

Quarter (although, farm output In 1952, exports rose considerably to display the statistics of a boom,
ac^ua^y r^sen) while the in- and the trading deficit was elim- there is remarkably little boom
dustrial working force has in- inated. I might perhaps add that psychology around. Nowhere is

creased

by about two-thirds. Thus Canada has

a

pretty comfortable

current deficit in 1951. In short,

one

most of which are in the soft currency

category. This brings me to
and related element

second

0f vulnerability in our trade out-r
look—the fact that, we are selling
overseas countries substantially
m0re

than

we

are

buying from

them.Our ability to go

on selling
these countries in the volume

0j recent

years will depend im
on their ability ta
bard currency elsewhere,

iarge measure
earn

Latterly, the fact that Canada has"
a major source of available

puaget oemg ior ae- been

sketchy mention of some high- the Canadian dollar might have lense and toreign aid.
lights of a great and widespread weakened rather than strengthWell, gentlemen, so much for a
program of capital-expansion. In- ened. The fundamental" element very sketchy treatment of some of
cidentally,
one
of
the
conse- strengthening
Canada's external the significant facts of the Canaquences of this wave of industrial- positon in
1952 was a
rather dian situation. In the time, reization has been a rather dramatic dramatic improvement in the gaining. I'd like to move from
shift in the balance of employ- balance of payments on current the factual to the contemplative
ment as between factory and account. In 1951 our exports of ~to. what one might term the

of

current account trade
with the United States
jast year was probably in deficit
by an amount close to the $955
million which was the size of the
our

j0j. two years now, we have been
spending in your country oh cursurpluses has directly, or indi- rent account nearly a billion dolrectly, through wage pressures jars a year more than you have
been a force tending to raise been spending in ours.
costs, while government officials
f<) balance our account with
themselves have recently been yGll we are therefore dependent
questioning the economic wisdom on the credit balances arising out'
of a corporate tax rate which takes of our sales to third countries,

.

the only operative influence

picture,
balance

clear gain. For the taxation necessary to produce the government

m<JJe than
.re7jnut
dollar. Thus with the federal debt
now down to easily manageable
has pot, with the result that the proportions in relation to national
quality of the capital inflow has income, one would not expect to
greatly improved.
" see Quite so much emphasis on
It follows, from what has just £overnment
debt reduction. To
been said, that the rather spectacu- Pa^ as we g0
^ more tnan
lar strength of the Canadian dol- 1S
to break even
lar
during the past 12 or 15 W0.P '
^ '•
regarded as
months has not, as is often superl°®in respect of a
posed, been due* to mounting capi- budget of $4.4 billion for a countal .movements, .Indeed if capital
? P? fSfu* ??
f?0!Z*6??!6
were

rently, our purchases from you,
similarly calculated, amounted to

apt to meet with the facile

supply for essential raw materials
bas tended to maintain Canadian,
overseas exports. Indeed, the increase
in Canada's exports im
1952

was

trated in

almost entirely concen-

shipments

to

countries

other than the U. S. A. But

un~

der somewhat less urgent conditions and with soft currency-

countries making a concerted effort to balance their own position
by selling more and buying less,
the outlook for Canadian overseas

exports could become a good deal
more obscure.

These
pendence

elements
on

of

great

de—

external forces be—

•

■

•km*»iiuMMr<um"nKmrnmcKmWW***!***!* ii^WBifiw,w<WW»»t*W«>i»».wwi,WWt wm?*•««*!■• •„* wt,»w..w> 'i« -,ii'<•

Voiime

yond

177

Number 5196

The Commercial and Financial Chronicle

.

..

(793)

21

our control are

always pres¬ rest, there is the challenging fact for enterprise. And
hgainst that have a social philosophy, .which these influences are
intangible,4
situation. of vast populations stirred into an
background the Canadian situa-: places a high Value on economic but
along with the hard faoff^f
they recede into the awareness of,;, and a desire for, tion-r-which is not free from dif¬ freedom;
Being a small country in forests, mines, oil
wells, factories,
background; at other times tbey something a little closer to the ficulties of proof against reces¬ point of
vpopulation, government farms,
capital
and' know-how,
constitute
major .and, pressing living standards enjoyed in these sions
nevertheless * reflects a can never-be remote from the
they do provide, I suggest,
a
problems. But their existence, inr more -fortunate quarters of the combination; of growth factors4 public.- Businessmen and govern-- basis for reasoned confidence in
herent to Canada's peculiar trade globe. The
struggle for peace, and that is, I think, unique in an un¬ ment>. officials can and do knhw*
Canadian progress.
relationship as. a heavy, met buyer to maintain peace, will, I suggest, easy world.
and respect each other. It is not
v
;
in

ent

the

Canadian

Sometimes

,

—

-

,

.

from

the

heavy

United:

net

,

nations,

States -and

seller

must

to

(

doHar-rshort

always

tiized. They are, as
contingent- liability

be

extension of demands

a •mean an

the

reeog-

to

years

■

of this continent for

resources

many

come.

The extent

were,-the to/ which we in North America
item which meet those demands the hard way,

continually be appraised in
weighing up Canadian prospects.

or

on

than

still have the

Joins John S. Greteii Co.
(Special to The Financial Chronicle)

had dreamed and the end-, We-know- something of the
prob¬
of that story; is not yet. The pos¬ lems
and
attitudes of the Old
session of '• resources is, of course, World.. At4 the
same
time
we

the basis of interchange of

goods and

we

policies.

it

must

For in Canada

difficult for: them to get together
developing frontier: We are find-<- around a table to. resolve diffi¬
ing that our resources are greater culties and to formulate

on

Dooley is

.

problem

in

of '■« maintaining

some

realism

He

services,

years,

outright gifts and

forms

et aid

what

heavy

to

a

very

on-

the

and other Allied Nations. We

is

-

anything like

appraisal

of things

under-

we

us

Now if that

this

of

the

a

will

dearth

And there

an

shape

to come, I doubt if
continent

of governmental
worry about
United Kingdom

program

credits

for

was

at

now

affiliated with John

was

co.

.

Co., Fidelity,Building.
formerly withf Bache &

•.

•

t

and

accurate

employed. Jn

were

the early postwar years
took

special

-

measure

•

S. Green &

will depend, not in itself unique. Other coun¬ number our
advantages the pres¬
have
least, on the tries
them
too;
But
in ence
of
a
great
and
friendly
overseasa exports has been met in
imagination that go Canada one finds these resources neighbor- to- the south and our
into
the
trade
different ways as circumstances
policies of the years in a country with an already de¬ affection, is not lessened
by the
have•, changed. During the war immediately ahead.
veloped industry and agriculture. fact that, yon are
the world's
The

.

/

»

CLEVELAND, Ohio—Gerald P.

we

we

need: to

of

stilt other elements

go

growth

potential.

political,

outlets

are

whiqh

institutions

cial

the.

greatest consuming market.
It
is; the combination of

the

these- factors which, to my mind,

commer¬

constitutes the unique element in

South Beverly Drive, members of
the New York and Los Angelea

the

Stock

too strengthen

financial
of

We

have'

and

With Daniel Reeves
(Special to The Financial- Chronicle)

maturity.

We

Canadian4 situation.

BEVERLY
all

Some

ace

HILLS, Calif.—Hor¬

M; Bear has been added to the*

staff of Daniel Reeves &

of

Co., 393

Exchanges.

soon

got ourselves into the position in
which

rising purchases for cash,
predominantly from the United
States, r coupled with substantial
sales for credit

overseas

depleted

hard

our

seriously

currency

re¬

.

?

We

serves.

ourselves

had

in

over-extended

foreign

aid:

After

by

European

,:

coun-

tries, and other forms of U. S. aid

-

toi overseas

countries, had a susEffect on- the level. of

taming

Canadian shipments
It is

i,

4

1947, however, offshore purchases
under sERP

Uii

-

4

>;/

abroad.;'

•

quite clear, therefore, that '•

the outlook for Canadian trade at
a

time is heavily influenced

ny one

by the changing
Vinternational
and the

problem"

Nor

would. I

moment

one

the

that

in

creditor

event,

interest

the

solution

hands

the

of

ew

than

the East" is in

which is a very good
why Canada is always an
participant
in
measures

reason

and

discussions

liberalize
to

trade

match

designed
and

why

profession

we

with

enviable

an

has

Canada,
active

New

to

York-Philadelphia

vast

eling distance lies all

per¬

Within overnight trav¬

area.

part of twelve states and

or

going on in Canada
tangible expression on the
part of hard-headed businessmen
country, and also in

our

the

belief

common

area

wherein

live

that

more

than 48 million

76 billion dollars of

mutual

on

come

to us,

seems

for example, that
the
possibilities
of
economic
growth in the United States it¬

in

conveyed in

"Paley Report" that
of

serves

strategic

of

the

future.

import

per

family in

.

estimated 50 billion dollars in retail

an

.

;

,

;

•.

A

Canada,

having its

oper-

ating territory in New Jersey, and enjoys the distinction

materials

of

having

among

its customers

ica's industrial who's who

gradur

many

members of Amer¬

doing business in that great

potential

irethe^lJnited States will be
for

estimated $5532

an

Public Service is fortunate in

your own re¬
raw

increasing

factor

nation, with

' :

your

already, in many respects, in¬
adequate to meet the foreseeable
ally

/

buying income (after federal in¬

purchases.

are

demands

account for more than

with the reali¬

ties of the priesent day. In that con¬
nection we are keenly interested
in the warning

people—31%

taxes). This comprises the highest income market

the

1951, spending

self are still very great. The old
depression-born dismal concept of
"the mature U. S.-economy" doc3
not seem t© square

population—who

yours,

enlightened

founded

sense

of the nation's

advantage
must
determine
the
trade policies of the free world.
It

an

expansion of productive

is the

of

the

District of Columbia. This 250-mile circle includes

facilities how

in

market—the

try

suggest to you, however, that

the

geographical position. It sits

right in the middle of the world's richest

formance.
I

Jersey at the "Crossroads of

any

greater

a

solution

a

of

lies

in

But,
has

eountry

in

for

involved

nations.

no

a

New

plus

York-Philadelphia market.

only in
respect of4 sales* directly to your
growing" market; ~ but also inso¬
far

as

your

countries

not

purchaser in: other

increase

the

ability of;

such countries to buy from us>~V'*-:-,
*

Taking

at

work

in

the

t

worlds-,

not, in Canada, too

we are

worried
a

still broader look- a*

a

the forces

today,

about

the

<

possibility-of

sharp and prolonged recession
the

once

armament

apart
much

requirements

of

re¬

begin to taper. off. For,

from

4

the

;

question,', how

-

tapering will be possible in
.

the immediate future, the peacer
for which the free nations arc

striving will not, f suggest* be a
return to some halcyon - "status
quo

of
T

nEggg^jjniAf *

* \

iU-

over^-

suggest

the

difficulties

wholly

I;- *.
.j.

complex situation and

a

is not going to be resolved

night.

;

adopted to meet

measure

It. This is

.

of. the

aspects

dollar

ante."

conflict,

Behind
near

the

headlines

conflict and




un-

.

.

.

AT THE CROSSROADS OF THE EAST

-—

-*1/
-

Public Service
r

*

-

-

H

serves
-

4

New Jersey with
* >

„

2

,

* j.

' *

electricity and
i

.

•

qas
n

^

.

,

.

and
C
,

-

with New Jersey

rjrowr
tmmmmmfmmmmtm

*

-

*

;-"A

+"

:<

22

(794)
1.

The Commercial and Financial Chronicle.

that

Trust Business Needs

such

under

a

the

program

.welhto-do soop disappear and the

income

.lower

groups

carry

.the

load.

A Sound

Economy!

Members of the Socialist Party
in

-President,

Trust Division,

Vice-President, The
''

and

Linking

Company

Trusts, Philadelphia,

Banking

for

Pa.

of trust business to reform in taxation, resto¬

progress

provement.
„

ration of sound money

property and

problems of

it

pass

new

and right of individual to accumulate

Administration to effect reforms,

bank¬

urges

continuance

future

and

growth of the trust business in the
United

States

primarily
namely, the cuf-

depends

three factors;

t

i 1

a

m

ent of

the

campaigning,
It may be helpful to review for
a
moment the following words
which were spoken by the then
presidency

was

"

___

Franklin

Governor

~~

Roosevelt

D.

excessive tax-

in

ation

Pittsburgh, Pennsylvania,

earn-

on

ings

and

ac-

his famous speech delivered in

19,

cumulated

nation

the

is

living

within

_

tragic

the

that

Deal,

do

them

of

much

not

the

create

we

which

more

do not have,

we

atmosphere of

an

pe~rity^~~bur n~oT^^

pros-

"or"for

The average Americanwage
earner has been cruelly deceived.

long.

If, for example, his net income
approximates $4,500 annually and
he has two children, he presently
pays a direct income tax of about

Oct.

on

1932:

"If
m

indeed

konw the cost to
seeming prosperity
they have enjoyed.
You and I
know
that if we spend
all the
money we have and, in addition,

of
public to these moves. Says it is a duty to help end the "taxand-spend policy," and restore nation to a sound economy.
The

is

American people, and particularly
those who grew up under the New

and trust officers to take active part in getting support

ers

.

It

to others, Mr. Wilson, in telling of

on

of

getting something
for nothing was false, and only
then was it possible to check fur¬
ther nationalization of industry.
Today the economic climate in
Britain
is
showing steady im¬

American Bankers Association

Pennsylvania

England eventually found that

their dream

By ROBERT A. WILSON *

on

S3fVur^|S'
!ts income, its credit is good. If $350; but studie-s of the Tax
establishment
f

jn

of

sound

a

economy with
restoration
of

sound

money,
the right

and

indi-

the

of

vidual

to

ac-

cumulate
Robert

sacrifices

people's

recent Presidential

citizens had become subject

punitive

twenty

taxes
during
the
of the New Deal and

years

the Fair Deal.

Approximately 50

million TTniterl
million
united States
Mates Oovernment
Government

bondholders had

their bonds

seen

lar

concerned;

was

who

economic

and

concluded

along

on

social

that
,

and

the

thinking had

we

were

road

state that there

their

to

far

so

welfare

a

little

hope of
feared that

was

turning back.
They
eventually the free enterprise
tem. which

had

great

doomed

was

The

the

vast

sys¬
America so

made

to

extinction.

resulting

sums

tremendous

increase

forms of taxation

said

the outset

at

uals and the large corporations.

Policy
in-

tclligent citizens and trustmen

we

guide

have

been

i.!

occasion

no

for

o t

rr\

/J 114

n

me

-fn

xr

rm'co

duty to raise

a

nnr

opinion

public

trninn a

fa

voices to

our

against the

how contradictory
these words seem today when we

continuation of this tax-and-spend

realize

must

surprise;

the
to

but

that

they

who

man

assume

snonoibilitv

which

I

he

thereafter

soon

large

a

for

said

veiy

policies

lead

would

re-

nnliHo*

verv

tne

by
was

of

measure

the

SponSlDllliy 101
tional

were spoken

tQ

na_

bankruptcy
that

convinced

am

Roosevelt

President

able to depart* from

was

the

thinking
expressed
Pittsburgh speech only

in

the

because

the majority of the people in the
United States were willing that he
should do

so.

If

we need
proof of the weight
public opinion, we need only
back to 1937 when the New

of
go

1

Deal

in

ceived
lieved
still

"

'

few

a

control

of

President,

dented

reach

attempted

in
for

to

tance.

Finally,

from

selfish

a

viewpoint, the future of the trust
business will indeed be a gloomy

lfu.,rfk es3 taxation 1'GmJov5l';
ability to save and at death

the

confiscates most of what has been
saved

party

was

Congress;

and

Supreme

acquired.

or

conflict

Truman:

remain

taxes

bear

in

Taxes

Estate

the

filed

returns

value

a

means

of

for

measure

sopal
experimentation, purposely
introduced to
bring about

redis-

a

tnbution of wealth. One need only
the Oct
18, 1952, issue of

read

dealing with this

objective to see the extent to
which this program has succeeded,
Adminis-

new

in

power in Washington,
large number of our people
hopeful that our new reprea

aentatives

in

.egislative

the

executive

branches

of

and

the

govornment will work toward the es~

'.ablishment

of

a

sound

economy,
Such promises were made
by our
new

President in
•

numerous

on/1

t

L*

La

cam-

{a

naign speeches; and if he is sup¬
ported by the people through their
elected representatives in the Con¬
gress, there is hope that the march
down the road toward the welfare

ntate,
if

the

and

lliaM4iW

reckless

spending

freedom

was

tIlclA

an,endless succession of

un¬

balanced^ budgets will be checked.
Warning
,

on

Campaign Promises

,

HbweV-er, campaign promises in
rtniir
are only the
beginning,
s
we
learned just twenty-years
".go when another candidate for

pmcoivn,
themselves

a..a

packing plan.

(he power of

thereafter

the public

attempted

and soon

the

eele-

brated

"purge" in which he tried
unsuccessfully to bring about the
defeat of certain

his

to

key Senators of

party who had the

own

cour-

him because
placed country before party.
age

oppose

they

Unfortunately, during most of
the past twenty years, the majority of the people were willing to
relinquish

control over spending
taxing; and
this,
in turn,
meant that the Congress, too, was

and

American
York

Mr. Wilson before
Trust

Bankers

City, Feb.

9,

be

now

ord.

It

with

the

decreased

worthwhile to

first enacted

was

highest

10% rate.

a
10%

rate

When

in

1916

One year later the
increased

was

the

rec-

bracket subject

New

Deal

to

15%.
into

came

in

1932, the rate was in¬
creased to 45%, then to 60% in
1934, 70% in 1935, and finally to

power

the/ present
If the

in 1940.

77%

total value of all

estates

which Federal estate tax was
paid in 1948 was divided among
the population, there would have
than $30

less

each

which

child.

and

woman,

for each man,
The benefit
would

person

derive

-

^

from

such

would

sum

~

$30

as

compared
inseparable damage which

tbe

(0

small

a

~

infinitesimal

be

that

know

(inues

,he

Eisenhower's election may

Mr.

long remain, especially with
tain

a

Wherever he

groups.

he

will

those

who

after

interest

vested

cer¬

turns,

resentment
20

years

feel that they have

to

come

States

with

meet

in

Treasury.

United

the

There

will

be

others who will join in the
outcry the very minute he starts

many

the
be

reforms.

needed

It

will

not

and

to bring about a change,
this vital
corrective
action

will

be

easy

forthcoming

receives

the

if

only

determined

he

support

of the people.
To
receive
this
support,
the
people must be informed; and we
as

bankers and

better

trustmen

in

are

a

explain eco¬
nomic issues to the people than
any other group—first because we
position

understand
because

to

these issues, and

we

close

are

to

next

the

peo-

pi®. No business is more vitally
concerned in the sound future
economy of this great country of
ours than the trust business, and
A

^

a

annual

to

road

iuujwu

to

bankruptCy.

The

m

w

the wisdom of these words

The

hard-fought

office.

A

reason

,one

of
and

protest

a

our

vote

another,

or

tax rates at the national and state

bankers have broadened. We must

n°t only be well informed ourselves, but we should accept the
responsibility to

but

that the

see

peo-

pie are also kept informed. When
Paul Revere made his famous ride
inform

to

the

Middlesex

farm¬

he had only the signal of a
lantern and
the strength of his
horse; but think of the facilities
ers,

at

command

our

Most

now

large part of

registered

society
for

campaign

has passed into history,
Administration has

new

taken

present

to pay, and conpile up deficits, it is on

power

problem is to convince the people

the

Returns
We

pe0pie?s

Conference

Association,

1953.




the

heavily

from

revenue

direct taxes.

on

direct

er's,

so

voters

made.
lion

today.
bank

are

custom¬

contact has already been

a

There

bank

figure

Britain;

lor example, obtains 56%, Canada
55%, and France 25% from direct
taxes. We must prevent further
attempts to turn to inherited prop-

erty for raising more lax income
for spending purposes. I read with
interest the statements of the Unifed States Treasury representafive before the last Committee on
Ways, and Mans of the House of
Representatives. I quote as foliows: "The President .has reeom-

Problems

issues

The

Still

the

of

With

recent

Us

cam¬

paign
our

"be

must remain uppermost in
1111I1US
ailu
We
must
nut
...hko
minds,
and we
must
not
make

the fatal mistake of becoming too
too
immersed in our own immediate

immerid
aflSrs We must lemember that
?e DroblemS of the nation
stm ^ith
and ,he recent elec_

nearly 100 mil¬

are

in

accounts

the

18.000

Z

~

J!

—

c

i

have not been shown
that

no

nation

under such

Reckless

a

can

convincingly
long endure

crushing tax burden

spending

during

past two decades met little

the

oppo-

...;jb_

on;™

sition,

since it was widely believed that the gu
government
vcilixucilt
could
CULUU
,

mc

underwrite the costs of

a

welfare

by taking only from
have

world's

other

\xrr\i

vx

i-m

tion

has

will

be

change
and

solvecl

none

them

to

in

economic

our

political
with

presjdent

that

affairs
is

we

means

may

conclude

be

can

new

for

will

easv

be

produces

of

that

inheritance,

it

which

most disconsolate feel-

a

when we think of our benefiCla"fs,
present and tutu.re, as wen
as
the fact-that we ui the

an

goods.

abundance

those

of

this

The experience of

countries, of course, shows

,

,

,

.

,.

nrPC°rv

inn

"

£

„

.,
!:lTr,1
"

peared
iess

that

quoted

President

ceived

last

savings

one,

fall.

Truman'

million

34

votes

Eisenhower

The

alone

accounts

re¬

number

of

exceeds

either vote.

know that 50% of all wage

We

have

earners

and

40%

Also,

90%

about

have

savings

accounts,

have checking accounts.

under
an

of all

$5,000,

so

we

introduction

accounts
already
the

to

so-

called "average"

influence can
influence
ca
cial periods.

American, whosebe so great at cru-

Moreover, the geographic distribution

of

tential

broad.

is

the

renaissance

po¬

About one-third

cofnmercial

the

of

banks

are

population

centers

1,000;

than one-half in

of

less

in

than

"The

issue.

True,

did

mention
one

and

hopes of American mothers
rose
when you were

peace

.

This

was

since the fate of

only

natural

many loved ones
hangs in the balance, but of those

cen¬

than 25,000, and only
one-auarter
in
cities
of
over.
500.000.
Whenever

and

bankers

have been united in

men

trust-

thought,

they have been vigorous in oppos¬
ing unsound legislation: but. un¬
fortunately,
our grouo

only

minority

a

of

has perfected the tech-;

1 nique

of grass roots cultivation.
Usually the issues h^ve not been
■

waste

mother wrote,

more

of less

ters

^

taxesl but as

elected."

Treasury
representative
above deplored the fact

letters

From these it aotaxes, nor reck-

T

sma11 111 amount.
The

not

^ .paramount

tor

,

election,

spending, but the Korean War

preservation ot family
wealth, whether it be large or
,,,

the

gusta, Georgia.

some

uo

nLeSIn

,,

m

President

the

and

which

The

poured in by the thousand to Mr.
Eisenhower's headquarters at Au¬

trust

Kllei„_oc,

imposing

an

*

further strangulation of the

privilege

elected

1948

are

reason

nofbe

'a

social

the

by

progress

but it will

after

that

which
in

It

that

assume

ease

There

confidence
m£de

of

natural

acb(eved

rt

„,v.-

mat

who

monnoi'

still

us

mended that
a substantial
of exact mandate
m9nrfato
nf
"«»wu
u«i ci
&uuawnucu part
pan ui
of a majority of
spendthrift Administration. The the
additional revenue be ob- lh
vo(ers jast fau still ren
order of the day was tax, spend, tained by revising and strengthen- t
be determined
and elect; and how well this pro-"* in8 the estate and gift taxes in a
To Quote
Colonel Robert McrLvt*r»Vi
11 rl
lv
ILo^o
gram succeeded
is demonstrated manner which would bring these
Cormick, in the Chicago "Tribune"
by the fact that since 1939 Federal taxes nearer to their proper longof Nov. 6, 1952, "It is impossible
expenditures have exceeded $650 term place in our system."
to go into the minds of 60 million
I
must
confess
that I do not
billion, including war expendi¬
voters and learn why they voted
tures, and the total tax collections know just what is. meant by a
as they did."
today equal one-third of the na¬ "proper long-term place" except
Soon
iv»

is

compared to the 23 million votes

are

a

of

New

its

of

rendered ineffective in controlling
controlling

state
*An address by
■'Hth
Mid-Winter

which

bitterness of those opposed

Tne
to

„

threatened;

public funds, confiscatory taxes,, lional income, but the people still

nnd

$4,791,000,000,

It would

taxes. No other central g'ov^
ernment in the world draws so

are

$4,there

look at the Federal estate tax

taxes, such as income, estate, and

and

totaled

roughly from $400,100 to $196,000.

to

have grown accustomed to it.

from

However,

a

which

in

10,382

have

underestimated

being expended

have

that

were

had

(he President still

we

shows

there

reported

(he court

Today

government stops

the

spending more money than it actnally has. But tne moment he

that the average size of the

estates

projects but

Oration

be

cannot

turn

m

had with continued inflation, and
that inflation cannot be arrested
unless

165,000,000, while in 1948
were
24,381 returns filed having

government and other worthwhile

Business Week

also

1930

year

Nation's

a

money

that

money,

figures show that estates are defi- tries to stop some of the incessant
nitely decreasing in size The re- spejuimg, he
to tmd toat
P°rt
the United States Treasury he is taking a habit-forming diug
Department dealing with Federal gway from millions of People who

°ne*

great

sound

sounu

all

for

too

re-

interesting to note at this
point that United States Treasury

84%

far

the

is

United States Government derives

in

low,

tax structure must

in

weirare state is

a

with

not

were

were

too

our

disproportionate load."

a

It

and on
juiy 22, 1937, the Senate defeated

proper

"To the extent that these

rrainder of

1952

Taxes Approaching Diminishing

an
unprece¬
further power,

the

lowing statement of President

if, like

re¬

pack

full well that

economic program which will spendthrift, (he nation throws disproduce a sound and stable dollar cretion to the winds, is unwilling
and permit future beneficiaries to to make sacrifices in spending, exenjoy the fruits of their inheri- (encjs jts taxes to the limit of the

be¬

The

Eisenhower knows

Fresiaent

He also offered in exhibit the fol-

^ri

1

had

and the spending, how many will
cry aloud if Federal handouts are

philosophy. First, as citizens we wou]d be done
as
trustmen
we
must
earnestly
by the destruction
fight for the right we have of individual initiative to earn and endeavor to protect the purchas¬
always had to earn, save, and fi- save.
ing power of each dollar of in¬
It is difficult to conceive
nally bequeath our savings rea¬ of
come
we pay our beneficiaries.
any one who does not desire
sonably intact to our children and, 1o leave an estate to his beloved
|
grandchildren. Next, as trustmen
Obligations of Trustees and
dependents.
we
have a responsibility to our
Bankers Have Broadened
^resident Roosevelt was right in
present beneficiaries to strive for 1932 when he said that
Cur obligations as trustees and

before

years

never

attainable.

in

the

'

just

powers

reduced?

the individual income
eighteen times as great.

by

was

been

that both

as

would

*,.11

to

seems

In
have

"J ,—4

«««

duced
tax

upon

Duty to Oppose Tax-and-Spend

It

that

voters who did protest the taxing

being paid by wealthy individ¬

are

A

that since 1939 the total yield from
estate and gift taxes, had barely
doubled, while the revenue pro-

from

always
meeting just and
expenses of operating the

being used

he believes that the bulk of taxes

quoting from a speech made
by either candidate last fall, there

millions
in

conservative

were

ex-

limit of the

was

greatly

depreciate in spendable
value; more than 83 million life
insurance policy holders and 67
million
savings depositors were
equally concerned over the shrink¬
age in their investment, so far as
-iie purchasing power of the dol¬

spending,

to the

to pay, and conpile up deficits, it is on
bankruptcy."

If I had
I

in

all

Foundation, a research organization, indicate that after paying in¬
direct taxes, his actual tax bill
will be closer to $1,200. The true
tax bill is unknown to him, since

power

tinues to

on

its

or

year-

(ends its taxes

(jie road to

it

pass

it lives beyond

a

at

to

campaign, a large segment of our
people had been worried and ap¬
prehensive as to the future of this
nation, and rightfully so. Millions
to

for

two, it can
usually
borrow temporarily
on
reasonable terms; but if, like a
spendthrift, it throws discretion to
(he winds, is willing to make no

to others.

our

crisis

some

income

property and
Wilson

A.

Prior to the

of

Thursday, February lb, x953

..

i.

■

_*

_

.i

.

^„

_,,i

carried and explained to the multitude well enough to give bmking and trust leadership an effec¬
tive

base,

although

it

has

been

influential.

During the past decade, bankand the trust business have

ing

Volume 177

Number 5196

;

The Commercial and Financial
Chronicle

.

.

-

(795)
become increasingly popular; but
too often we have oeen frustrated

by

political

a

senting

unsound

some

Bankers and trustmen
economic

bloc

pressure

leaders

pre¬

nostrum.

natural

are

in

tne

com¬

munity, and the average voter can
be encouraged to look to the bank
for

impartial analysis of

an

pro¬

legislation.
example, I would like

bankers and trustmen

see

declare

goal, but at least it is a start after
twenty
years
of
spending and
more
spending.
The success of
these

to

future

economy moves

greatly
by those

sacrifice

upon personal

citizens

to lean too

come

who

heavily

on

their

government, as well as a
by Congressmen
to vote against all nonessential
pet
projects in their own districts.
firm

publicly

that

and

will depend

have

posed economic
For

Federal spending are indeed stim¬
ulating. We all realize that this
is just a small start
toward the

resolution

they will give much
support to sound
plans
and methods for governmental re¬
organization. It has been estimated

Eisenhower's record as
President is still to be written. I

that

do

needed

dollar

one

wasted

and

better

in

ten

could

be

organization

ment.

This

ally, but the real
lies

by

manage¬

well

$7

or

being

saved

and

might

saving of $6

was

mean

billion

loss

of

source

a

annu¬

is,

constant

a

danger to the nation
tive structure

so

not

know whether

down

in

history

as

of

one

truly great Presidents,

but

go

to

bring

am

about

a

made

fine start

a

services

of

by enlisting the

and

was,

that

OUjyiJUi

work

at cross-purposes.
estimate in millions or

one can

billions the

ganization

losses

can

which

bad

can

pro¬

execution alone.

President faces

new

bat¬

a

tery of| 65 huge agencies, some of
them bigger than United States

This

the

is

so

It

data

is

of

expenses

Labor

the

that

the

merce

1950.

1940

the

of

expenses

Department

million in

Com¬

from

rose

$75

to $863 million

in

Do you recall that the Gov¬

ernment
costs in

$500,000

spent
an

in

court

effort to dismiss

sin¬

a

holdings of various

on

It's

The value of such

know,
risen

given

figures

unit

agencv

which

had

24

physical
"(2)

it

attribute

Reduced

Budget

During the past few
tain

Senators

and

Problem
years,

tor

cer¬

Congressmen

have earnestly endeavored
duce the national budget.

to

re¬

Sena¬

Byrd and his Joint Committee
Reduction

on

of

Non-essential

is

the

itself

to

appointed

by

the

report

the

organiza¬

on

Con¬

tion and management of tne Fed¬
eral Government. This

particular

report

told

startling

a

story

of

duplication, overlapping, ineffici¬
confusion,

ency,
It

is

that
is

most

and

comforting

to

know

Government

reorganization
being studied by a special

now

of

a

people

soundly

in

as

order,

that

assurance

3 V2 %

sale

1, 1967 to

a

investors.

The

privately

by

issue

Salomon

Bros.

ditions."
These

platitudes

truths

into

woven

of

not

are

poignant

which

the

but

must

economic

It

is

our

job

new

Many

people

were

of institutions.

trusts

amounted

billion.

to

valued

trust

Points

out

ELECTROCHEMICAL COMPANY

ANNUAL REPORT
FOR

THE

YEAR

★

ENDED

at

To

$13

By
I'm informed
of

tell
I

much

new

to

personal

expanded

of

this

to

tremendous

an

investment,
almost

are

I think I'm

though, if I tell

impossible;

safe

on

the
G.

was

Keith

Funston

I

eye-opener.

Let's first look at the postwar
growth of private pension funds.
In 1946 the
stock

and

common

holdings

trusteed

of

preferred

all

pension funds

about

Great strides

were

construction

of

1952
taken in

$475

private

amounted

million.

total

That

excludes

es¬

pension

plans administered by life insur¬
ance
companies but does include
those administered by banks, com¬

and

ac¬

that trustees
of the investment

The total of all these equity
holdings plus $9.4 billion of equi¬
ties owned by life insurance and
other

insuranqp

companies,

open and closed-end trusts is

bulk

Stock
It
men

around
of

all

listed

and

on

to

impossible
follow

through

promises
more

for

to

the'

Sales

ing

his

on

make

economical

Fortunately,

a

mittee

passed

to

campaign

government

and

efficient.

few days later, the
House disregarded its own Com¬
and

quested

by the

new

the

bill

re¬

The

Budget

attractions

recently issued by
Director
Dodge against




was

due also to

But

of

of

when

I

got

to

the

holdings—common and
—of

the

in¬

well-selected

stocks.

equity

preferred

billion.

a

the

who

administer

Stock

common

Exchange than is

evident at first glance.

I have in

mind, of course, the vast respon¬
sibility which is yours to manage
so huge a portion of the nation's

figures

In 1939 the stock

exercise

owners.

of

Mr.

Trust

or

$3.46

-

Important
sulted

products'and

new

from

1952

holdings of such
Funston

at

Conference

the

34th

of

the

American Bankers
Association, New York
City, February 9, 1953.

process

improvements

re¬

research—newly authorized laboratory

should accelerate future research

accomplishments.

RESULTS

OF OPERATIONS
1952

Sales of chemical

products and services

......

1951

.$36,523,500

$39,087,000

.$37,110,800

$40,404,000

...$10,411,400

$ 8,780,500

..

Plus: Other income

710.400

Equals:' Our Total Income
Less:

Our Costs

..

Doing Business:

of

"Wages, salaries, payroll
Raw materials,
power,

costs

..

fuel, transportation,

local and State taxes, other costs

Depreciation

on

buildings, equipment

...

)5,350.800

...

2,482,900

1,980,800

$28.245400

$29,870,800

Leaves:

Profit Before Income T

Less:

Federal Income Taxes

8,805.700

$10,527,200

Leaves:

Net Profit

Less:

Cash

Leaves:

Retained

FINANCIAL

axes

for

5,835.000

6,950,000

...$ 3,030,700

$ 3,577,200

...

Dividends

2,155400

2,155,300

875,300

$ 1,421,900

.$23,045,500

$13400,600

...

Use

in

Business-

...$

POSITION—NOVEMBER

19409,500

30

strength the
prerogatives of

..

Current

...

3,595.100

4,697,500
$ 8.403,300

Ratio

2.79

Total Assets
Less:

Total Liabilities

Leaves:

Net Worth

to 1

$35,106,000

,

8,297,300

.$27,081,000

..

$20,809,300

our

the

by

We

individual

1952 Annual

Report, including 10-year Summary, available

on

Request

share

hope for a true
capitalism only when
share owner keeps
closely informed about the affairs
can

democratic

MANUFACTURERS
FOR

MORE

OF

THAN

OVER

100

THIRTY

CHEMICALS

INDUSTRIES

each and every

of

his

and

company

votes

his

cX

vzvm'

proxy regularly. It is for this rea¬
son that the
Exchange in its list¬

ing agreements
statements.

beneficial
of

taxes were $3,030,694 or

wealth.

insists

upon

full

that I know you are
making such
efforts
to
insure that all your

Mid-Winter

other

at

in 1951, with market trend¬

the New York

chapter from the Federal budget.

the

set

share; 1951 figure was $3,577,232
,

of

disclosure, proxies and quarterly

trusts,

processed chemicals

year-end—Earnings after

a common

share.

The

personal
read
like
a

bank-administered

^Remarks

orders

due to price in¬

increasing recognition

Administra¬

tion.
-

was

but much

common

with completion expected late

way,

8% under record

were

up at

$2.90

and

holdings,

lot more in

a

disturbed

President

program-

Montague,

at

plants have been increased.

cur¬

that you gentle¬

me

others

ownership

come

plant

Exchange.

seems

trusts have

with

$37
these

moting with all

creases,

large-scale expansion

caustic-chlorine

new

ground,

potentialities of equities.

later, the dollar value had
just about doubled to $1.5 billion.

it

30, 1952

ques¬

you

not unaware

are

are

with any degree of

answer

curacy.

in

startled.

IN

were

billion.

years.

truth

to

$20

PROGRESS

in 1953; facilities for basic and

than

equity holdings
about

tions which

institutional
investors

less

holdings had
$25 billior^.

due to

years

made

NOVEMBER

★★★★★

Michigan, is well under

appreciation
in market value, and how much is

growth

recent

to

increase is due to

equity
holdings by

bills

have

New

around

showing the

Much of this

might

bank's

Office, 15 Broad Street.

that

see

By the end of 1949, how¬

these

ever,

.How

less than two week- ago when the
Senate and House Committees on
Government Operations approved
which

the

nual
out

It

is

for

owners

statements

this

receive

and

reason

the

an¬

proxies sent

by the companies whose shares

they

own.

HOOKER ELECTROCHEMICAL COMPANY
NIAGARA

FALLS

•

TACOMA

•

NEW

YORK

•

CHICAGO

•

LOS

as

bond

are.

preferred stocks were owned
by educational endowments. Five

fine citizens everywhere.

in

Place

the

be

fabric

this nation.

of

economy

York

F.

of

HOOKER

Net Working Capital

support

Ferguson, John

self-discipline of the people

in specific relation to
government
the inculcation of sound tra¬

Leaves:

sound

Company
of
the appoint¬

Managers

department

Current Liabilities

a

of William

Assistant

&

The proceeds of the loan will be

Less:

constant

Trust

By ram and John

the

appointed last Decem¬ panies and private trustees. By the
I feel that the Stock
Exchange
by the newly elected Presi¬ end of 1950, four years later, the has
a
responsibility
of
equal
dent. Also, it was heartening to total had doubled. At the end of
weight—to provide you, as well as
hear
the
last
early
declarations of
year, the total had jumped to the millions of other people who
Budget Director Dodge that the nearly $1.5 billion.
own
shares of industry, with z
new Administration is determined
Major college and
university fair, efficient, public market place.
to
achieve
a
balanced
budget. endowment funds are also impor¬
And then, too, there is a tremen¬
However, we must remember that tant owners of equities. In 1946 dous
responsibility we share to¬
no
President can give us good around $800 million of common gether—the
responsibility of pro¬
or

ment

P.

Hutzler.

ber

the

Appoints in N. Y.

Chicago announced

placed

was

Current Assets

without

Northern

group

committee

government

No. Trust

of

promissory

is sound.

the end of last year,
that the dollar total

Recently I

timated

waste.

of

$112,505,000.

"(3) In the long run, the oper¬
a democracy will
depend
the education,
understanding,

course, are

missioin

the

announces

totals

of

Invest¬

on

in various fields assisted

com-

ment

Chairman

Associates

*

ation of

rently

gress

are

best

Federal Expenditures have been knew, of course, that such hold¬
outstanding in their efforts to re¬ ings had increased but the amount
duce expenditures. Nearly 300 of of the increase and the size of
the nation's foremost
specialists your holdings today was really an
one

of

notes due Feb.

If the money accounts of

of

The

Board

Privately

Oare,

our

of

one.

nation

nation

aavanced.

dollar

supervisors for 25 employees.

as you

market

as

was

one

holdings,

has

some

found

institutional

sharply

sional

investigators

that

secret

no

prices have

employee,

small

a

groups

investors have substantial
holdings
of common and preferred stocks.

who,
after
four
years of litigation, was back on
the job as recently as a month
ago? We also know that Congres¬

gle

values

change and trustees, in exercising their respective functions.

from

rose

moral

the

L.

Co.,
$10,000,000

mutual responsibilities to each other of New York
Stock Ex¬

Department
$18 million
in 1940 to $257 million in
1950, or
of

ings.

President, New York Stock Exchange

which

mass

Notes Sold

Funded debt of the large auto¬
mobile
finance
company
now

un¬

NYSE executive calls attention to
increasing interest of insti¬
tutional investors in common and
preferred stocks, and reveals

to overlook the fact that

easy

the

gigantic

be unscrambled.

used to retire short-term borrow*

By G. KEITH FUNSTON*

Steel, which report directly to
him, to say nothing of 1,800 lesser
boards,
bureaus,
and
agencies.
remains to

thrifty will

Growing Institutional
Holdings of Equities

duce, in terms of policy formation
Our

the

moral

they

L.

Associates Investment
Robert

or¬

cause, or the gains

which good organization
and

representatives in
will give these men

Washington

prudent and

a

able

their

to

of

and, in the last an¬ of insurance companies, pension
alysis, democracy is fully as much fund trusts and other institutional

in

execu¬

like

democracy;

and

an

would

paragraphs

year ago:

dermine

plication, and corruption.

is, no true economic stability as
long as huge powerful Federal
agencies

the

and

He has

I

three

"(1) A scheme of life that grad¬
ually depreciates the savings of

sound economy through the elimi¬
nation of waste,
inefficiency, du¬

cumbersome that

one

our

I

he will if the American
peo¬
unite and support him in his

and honest men
policy decisions of life-or-death
to fill leading roles in
government,
importance must be made in "hitbut the people must
firmly resolve
or-miss" fashion. There

No

over

sure

ple
determination

from

brilliant address by Dr. W. Ran¬
dolph Burgess before the Amer¬
ican Philosophical
Society a little

the

he will

conclusion,

a

There was,
and
terrible

deeper than that.

and

Mr.

In

quote

23

ANGELES

24-

(796)

The Commercial and Financial Chronicle

Continued

from

this is

3

page

relatively small drop for

a

periods that

distant,

far

veals that business still

Business Prospects With
Decreased Defense Spending
government purchases and of in¬

quired

vestment in

the status

plant and equipment
(other than farm in¬

by business

vestment), which
than

more

$100

the basis of
at least

This
of

large

will,

on

present programs, be

high in 1954

as

the

billion,

achieved,

continuing

figure

dynamic portion
provides an

and

market

as

the

important element of strength in

should

1954.

be

Spending

new

tempered

be

may

defense

of(

fears

actual

orders

future

and

trouble

of

a

supporting

reduction in

by

struction,

gradually from

possibly

and

much

reinforced

happen to be
phase of the

if

the

on

should

1954

While
as

we

downward

civilian-inventory

regard

real

a

peared to

us

a

downturn in

possibility, it

that the

12%, and has

our

of

output

15

to

definable

no

value

ment

of

even

interrupted by busithe last 50 years

has increased

kets,

to the

and

resources

our

increase in the size
our working force, to
technological progress,

materials.
are

air

should

the

tance

effectiveness

the

to

business

organization

of

and

agement.

;

markets

after

ment
and

our

man-

-

"As Part °* our /ook a* P

been

World War II.

mar-'

and skills of

great

developing

in

expanding

f"/Ia!
had

what

reviewed

we

accomplished

by

manage-

new

products

uses

for

estab-

of

the

purposes,

consumer

Whue our pattern should not
be considered a forecast, it was
hard set forth so that the businessman
ex-

Typical of the services prices.

transportation,
not

of

overlook

the

repair

and

greatly stronger

which

changes implied do
not
to us to be so large or
as
to
make defense

for

the

next

few

lished products. We examined the

growth of

....

Products

benefits

both

•'

.

this

of

to

fast-growing

and

new

,

years.

this pattern, we concluded
fluctuations in business ac¬

that

than

main-

On

j

Reductions

tivity in

to

Accompany
Defense Spending Drop..;

items

in

the chemical

of

the

;

'

*

One

most

;.

volatile

type

provide

producers

are

obviously there

tion,

as a

are

whole, has

average rate of

10%

group,

many

other

grown

at

a

since

year

and

non-durables and services are calculated at about 9% higher. Some
items show little or no change
while others show substantial in-

an

principal offsetting forces
falling security expenditures

that can

now

be foreseen

are

ments of

ele¬

impending weakness had been

the

rates

drop- in
rise

in

concurrently
defense

civilian

with

outlays,

government

A

the

and

was

a

from

steps

These

which

be

praisal
over

-

expressly for the purpose of
venting business recession.
'

We

business

period

in

This

will

of

depend

of

the

few
a

nonfarm

Business

vestment

ap¬

outlook

years.

survey

of 2.000

investment,

Economics

in

1953

at

con¬

and

the

grams

reported

the estimated
tures

traditional

for

by

1953

plant

continued

a

high rate. On the basis

the

recurrence

the

Securities
and
Exchange
Com¬
mission, business plans capital in¬

contrary, it is. our
view that nothing has taken
place
which will automatically
prevent
the

next

in

economic

accounting for three-fifths

all

Kof

developments yet to unfold.
We- do not, however, in
any way
discount the
possibility of a down¬
On

the

ducted by the Department's Office

on'

turn.

importance
of

According to
re¬

during the

the

■

will not be

or

downturn

ahead.

the

study

investment, which is of

the

firms

do>not conclude

port that/ there will
a

pre¬

the

of

conducted to determine

especial

taken

feature

result of two special sur¬

trend of

aside

are

may

major
the

veys

pur¬

chases, chiefly by State and local
governments.

following

ex¬

pressed, is business investment.

of the pro¬

businessmen,
total expendi¬

and

equipment

downward spiral of sales, produc¬

will

tion,

proximately match the high 1952

exceed

$26

billion

and

ap¬

of

these

mds permitted

one

about which the greatest fears of

stimulus to private
spending pro¬
vided by a lowering of Federal
tax

private demand, and

This is in line with

creases.

in

experience

the

our

expansion

of

various markets under conditions
°* a growing economy. The market Pattern is spelled out in some
detail which I shall not attempt
to review here.
Our

o

calculations

intended f

are

be helpful, not to give hardand-fast answers as to business

to

expectations.
in

the

future,

businessmen
the

problem

in

as

will

be

the

past,

faced

with.

oi

estimating the
prospective size and potentialities
Qf

their

must

markets.

appraise

Each

its

firm

position

with

to its pwn industry, in.
of continuous develop-

respect

tho light

the

in.

merits

Nation's

economy.

eompanies indicated
Eriod after 1940. Study of the tinned,
In the field survey
earlier ^men>- This requires the constant evalhavior

"

The

the

come

the

ment;

,

to

than in

basis of the higher inflowing from this enlarged
production, the 1955 personal conOther services which are showing sumption- expenditures
(in 1951
very rapid expansion are motor prices)
would
be
nearly
10%
courts, cleaning and dyeing, and above the 1951 total. Naturally,
naturaj gas
the increases in the consumer
Eighteen of the fast-growing markets would differ among the
tenance of the enlarged quantities
0f our durable consumer goods,

.

I Tax

more

..

various categories of consumer
goods and services. Largest in¬
fast-growing items in the chem- creases are indicated for the conabrupt
products with results which I am ical
industries,
but
these
are sumer durables.
They are calcuexpenditures the overwhelmingly sure you will find of major inrepresentative. Chemical produc- lated at nearly 15% over 1951;
dominant
factor
in
the market
The

Given

usually be made

can

"

production

to make the

us

many
uation of the market demand and
their intentions to add to their
way
which this demand is

V'r capacity in order

generalizations.

j. (l)r;Some industries, such 'as;Production or
electricpower, telephone service,
and
motor truck ; transportation,
?.
continue to be fast-growing oyer ;
K declines
long periods and are only moder- <
m

e^where

|

(2);

Other ' industries

substantial

response

to

show

a

cyclical

-

-

,

^

The future offers opportunities

pr?Y*[Je some off"
which may occur

to. business management in many
directions. This is clearly evident

theeconomy.

frQm

earli€J.

my

growth industries

?n

,

bjp 'the course of general

business conditions.

Au. business concerns covered
our .field survey could m>t
break down their future investin new products. But those

htely affected by business fluctua-;/

tions..

to--increase • the.- affected

newly-developed

discussion
and

from

of
the

general tendency of the economy
as

whole to grow.

a

.it

.,1

hope in issuing the
changes, but,, after allowing for
m a very mt?r" markets study that we couM conthese, changes, they continue to eswn*» P^ure.
^
:
-tribute to. furthering the undershow a net upward growth. ExManufacturers
giving
this standing of the businessman of the
pmples Of - these industries are breakdown expect investment for general economic forces by measjvasfairig machines, electric ranges, n^w products to account for al- mg the broad forces at work. The
aluminum, and paper.
';
<* most one-sixth of their total capiindividual is best equipped to ap(3)

Other

rapidly in

industries

the

grow

early stages after

which the increase moderates and,
in fact in some cases, the demand

stabilizes,

or

Examples

are

may

even

decline.

anthracite coal and

lumber, where the trend has been

^ budgets in 1954 and 1955, and
for over one-third of their total
ou"a^s ^or expansion.
There is
some tendency for these percentnse between 1952 and
*955.
^
But, important as this type of

-was

our

pjy such part of the analyses and
conclusions

as

value in his

own

■><

f

he

.

may
find
operations.

,
o

1

\\r

of

y..
i_'t?

lomes & Welsh Forming
Following

the

dissolution

of

downward

investment is, it would not sus- Morgan & Tomes on Feb. 28„
tain the volume of investment by Alexander H. Tomes and Stanley
and' business
income, or keep it total.
itself. Hence, we asked business g. Welsh, both members of the
from proceeding once it has been
A special field
survey was also be expected to continue upward. also, about replacement and mod- New York Stock
Exchange, will
set
off.
There
have, however, conducted by the Office of Busi¬ Tyoical of these
products are farm ernization
programs.
The an- form Tomes & Welsh with offices
been
important changes,
which ness Economics of 84 of the
larg¬ and home freezers, air-condition- swers were interesting and en- at 50 Broadway, New York City,
would to some
extent
brake a est companies
accounting for 30% ing units and frozen foods.
couraging. Outlays for replace- to engage in the securities busidecline and
investment,

and

consumer

give added time for
positive action to check it.
One
made

of this total investment. The
100%

response which

important point should be
clear. That

business

in

we

this

another evidence

is the probable

received

survey

is

from

just

size of the adjustment in national

terest which attaches to this baro¬
meter.

with

the*

Despite
date

World

in

comparison

War

substantial

II

The

to

and

in

building up our mili¬
tary strength, and the fact that by
far

.the

increase

greater
part
in the rate of

spending is behind us,
part of the total dollar
t.

of

the

defense

major,
outlay re-

7V.

a

^

-TrnV




;

Aside from the fast ffrowinf? in

dustries

>

to

results
many

were

encouraging
surprising. These

large companies towards the end
of 1952 projected
capital outlays
in 1954 and 1955 at 85% and
80%,

respectively, of the 1952 volume.
view, of the fact that these

which

—

of

we

defined

7/2% per

included

moderatelyindustries
average

our

year from

had

or

(those

m

ment anci modernization

1953 and 1954 and then decline

somewhat

total

tion of

list the

ization

slowly-growing
which

had

an

panies
about

in

1955.

Relative

ness.

Mr. Welsh has recently been

programs

of

increases
two-fifths

rate^of increase up to one-half in

these

steadily
in

1952

to

1955, about the

*rtTtton
as
pre-Korean period.

as

individual

an

floor

brok

to

capital outlays, the proporreplacement and modern-

1940 to 1951
our

programs

for4 ?re,
expected t0 lncrease slightly active
in

for

analysis as those
increased
by more than

purposes

we

period.

progress

over a long period.
(4) Many industpries are in the
early stages of growth and can

of the great in¬

security

outlays

«

This is nearly 11% above

the 1951 total—8%
1952.

but one
impor-

the

1929^ and 4be rapid rate of exconsumers.
They offer, incentives pansion is still
continuing.
period immediately for new entries in the business
Many others could be cited but
ahead will depend primarily upon
this far in advance of any date.
population.
They
benefit
pro- these
illustrations are sufficient
the development of private mar¬
The decline in defense spend¬
ducers in that they provide sup- to
make my point.
ing projected in 1955, under the kets. The long-term and cyclical plements to old lines and create
it should be
emphasized that
which
in
expenditure pattern assumed, influences
ordinary ppportunities for expansion
of important as rapidly-developing
would provide a serious test of the
periods govern the strength of markets. Under such
stimulus, in- markets are at any time, the fact
strength of the economy.
Par¬ the national market and the vol¬ vestment demand expands, thus is that the bulk of
American in-.
ticularly is this so since the re¬ ume of output will in large de¬
contributing to the activity of dustry cannot be classified in this
duction would be almost entirely gree
resume
their determining
many
other industries; particu- category as we defined it. Proin government purchases from the role.
'
larly
the
producers'
durable duction research and aggressive
durable goods and construction in¬
goods.
i '
marketing contribute importantly
Heavy Defense Spending to
dustries, which may also be ex¬
in keeping other more stable inContinue
periencing slackening demand in
Expansion of Industries and
dustries in a vigorous and growing
the private investment field un¬
Further, the impetus towards a I
v
Products
•
position.
less that adjustment is completed business downturn which
falling
\ To obtain some concrete indicaThe development and marketearlier. Thus, 1955 appears to be defense
expenditures will exercise, tion
of the nature and character- ing of new products, as well as the
a year in which it will be of ma¬
if not
offset by other develop¬
istics of the- expansion of indus-'constant improvement of existing
jor importance to expand private ments in the economy, is still
tries and products, the Output of products and the broadening of
markets
sizably to maintain a some time in the future, so that
morel th&rv
160
industries
or
their use, requires large investtime is available for business to
high level of business activity.
jproducts was examined' for the ment in; new plant and equipment,
make plans to smooth the
adjust¬
not

seems

that

.

These are some of the things
which led us to the conclusions

in

goods- which are fast-growing are can visualize the character of the
television sets, freezers, clothes markets in the perspective of the
dryers, and air-conditioning units, assumed size of the military esProducers' durables are repre- tablishment and of the over-all
sented by industrial electric market.
trucks and tractors; and synthetic^
Leaving out the qualifications,
rubber and man-made fibers il- -our calculated total national outlustrate the semi- and finished put in 1955 is $365 billion in 1951

an

com¬

situation

the

amples

is that

past

persistently,

grown

declines. In

and

to

per¬

the

in

illustrative

For

average rate of 3% per year,
This has been due to the develop-

pro¬

has little in

date,

with

mon

outlook

ap¬

for it

case

haps

appear

cycle.
1954

of

terminal

consumers'

peak

a

total

17%

Slze °

$40 bil-

was

groups.

enor-

The outstanding fact about

has

at

which implies that national
security expenditures will drop

and
the
may be some
residential
con¬

still

are

total national output

gram,

defense-

in some
durables, fur¬
nish
present grounds for doubt
about this period. These would be
the

of

the present defense

Thus,

market

economy

ness

reduction in the,

a

1951

four times the

or

pattern

growth possibilities of the

periodically

which

manner

in 1955.

reached

inventories,
in

can

permit

when

prospect that there

weakening

international tension

lion,

though the upward trend has been

anticipated that the maintenance
level of expenditures would be

spending slackens, the like¬

lihood

the

a

it

more

or

year

a

unless

in

our

total of prob¬

a

size of the armed forces. It is not

falling off in the placement

a

The

American

this, but

on

envisaged,

resolved

would

consideration that business

by

be

current

Doubts Regarding Defense

aggressiveness

is
of

thinking in terms of business

the outlook for

of

cost

favorable

these items in

cautioned

be

must

the assumption

on

mous.

in

thus

be placed

can

planning ahead,
ably $40 billion

The

to

planned

now

ahead,

prises about two-fifths of the total vision is useful only as an indiitems for which data were com- cation of trend,
piled. The value of the output of
w
n.
*w,ira Market

is 1940. Among the list are many
But
generally new items, which accounted for which were earlier stated.
made
by the companies them- one-third of the total listed as business wished us to take a look
selves of continuing high general fast-growing. They cover the en- ahead to 1955 to provide a measbusiness activity. Any sharp re- tire range of durability—in the ure of the size oi the Nations
duction in general business would consumer
and producer durable market, assuming that we are suclead to a substantial contraction goods group, in the nondurable cessful in maintaining an expandof such investment.
goods category, and the service lnS economy.
based

the military

once

establishment

it

re-

broad

sees

opportunities

this

that

maintaining it would be high. No

in 1953.

as

defenses

our

However,

planned still lies ahead.

Furthermore,

amounts to

now

bring

to

investment

and

Thursday, February 19,195$

...

„

fl

„

,

Childs, Williams Officers

com-

r\c

p

K'

from

17

Pa

OCnweser

OMAHA, Neb.

over

same Schweser

—

Company,

Robert E.
208

South

: immediate Nineteenth Street, announce that
period.
But
However, the
^
*
interest centered,;of course, on the .companies indicated the
difficulty
F. Cnilds has. been elected
pace setters,
y
of. segregating expansion from Vice-President and Frank E. Wildeclined

during

the

„

,

u

7projgrpms rjgay j . not, >be, -complete,* ,n..}The;■$ast-gro\yihg,r.group,% com- ;other programs* and.any/such diliamsTreasure;" of the company.

.

IsL

"t
.'iUjWLaism* MiIM,jphw«

MUM

Volume 177

•;

1 ■■;'!■ :■•■ .•■"

14

Number 5196

...

The Commercial and Financial Chronicle

(797)

MEMBERS

OF

BOSTON SECURITIES TRADERS

ASSOCIATION

29th ANNUAL

At Sheraton Plaza Hotel

DINNER

February 11, 1953
President

V ice-President

T reasurer

Corresponding
Secretary

Recording
Secretary

William J. Burke, Jr.
May & Gannon,

Lewis D. McDowell

Edward F. Hines

Chas. A. Day Co., Inc.

Chace, Whiteside,
West & Winslow,

Inc.

Leo F. Newman

J

Inc.

/. Arthur

Warner

Alan C. Leland
&

Geyer

& Co., Inc.

Co., Inc.

GOVERNORS

ill

Robert Blair
Harris, Upham & Co.




Rodney Darling
Du

Pont, Homsey A
Co.

John L. Ingham, Jr.
Blyth & Co., Inc.

James E. Moynihan
J. B. Maguire

Inc.

& Co.,

Arthur C.
A. C.

Murphy

Allyn & Co.,
Inc.

William S.

Thompson

Ralph F. Carr & Co.,
Inc.

25

*

26

The Commercial and Financial Chronicle

(798)

James A. Morrison,

Daley, J.

.

..

Thursday, February 19,1953

Townsend, Dabney & Tyson} Henry Tabb, Townsend, Dabney & Tyson; John L.
B. Maguire & Co., Inc.; Louis Zucchelli, J, B. Maguire. & Co., Inc.

Your Doorway to trading markets in
New England Securities
31 MILK STREET,

BOSTON 9, MASS.

Telephone HAncock 6-8200
Members New York and Boston Stock Exchanges

Springfield

Fitchburg

•

•

.Worcester

Victor

DugaL J. B. Maguire & Co., Inc.; Michael Voccoli, Charles King & Co* New York City;
"Speed" Hughes, Clayton Securities Corp.; Charles Smith, Moors & Cabot
,

DIRECT
•PHONES to

NEW YORK

•

^ TRADING MARKETS

•

is

Investment

STATISTICAL DATA

Bonds and Stocks

•

new

•

England

I

Securities

Securities of the

United States Government
and its Instrumentalities

State, Municipal and, Revenue
Securities

Since 1929
•

Bonds, Preferred and
New York

Common Stocks of

Industrial,
Public Utility and Railroad
Corporations

•

CAnol 6-2610
•
•

&0Sf0n

•

Bank and Insurance

HUbbord 2-6360

<§

t

Hartford, Providence, Portland
Bankers'

Enterprise 9830
•
#

Company

Stocks

Acceptances

.

Securities of the

A. T. & T. Teletype:

International Bank for

Boston 568-569

Reconstruction and

Development
Canadian Bonds

Foreign Dollar Bonds

® MAY 6*

Underwriter

,6ANN0N
INCORPORATED

5 T O C K 5
a
B O N D S

http://fraser.stlouisfed.org/
B
T o
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Federal Reserve Bank of St. Louis
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K

;

Hi-

R'

N

1

r> '

R!

•

New York
f

Chicago
Cleveland

Boston

Pittsburgh

Philadelphia
San Francisco

John F. Lynch, Hanrahan & Co., Worcester; Bill Bradley, May & Gannon, Inc.; Dick Murray,
dt Cannon, Inc.; Les Barbier, G. A. Saxton & Co* Inc., New York; Bruce Beal,

Kennedy, Peterson, Inc., Hartford

May

Volume 177

Number 5196

.

.

.

the Commercial and financial Chronicle

dm

FUND
A

MUTUAL INVESTMENT FUND

Prospectus available from
vestment

dealer

or

your

in¬

the undersigned.

duPONT, HOMSEY 6- COMPANY
Members New York and Boston Stock
Exchanges

31 Milk

Street, Boston 9, Mass.

Frank Dailey, Securities
Division, State of

Massachusetts; Harold White, Securities Division, State of
Massachusetts; Frank Breen, Schirmer, At her ton & Co.; Bill
Kumm, Dunne & Co., New York City

Coffin & Burr
Incorporated
Founded 1898

Trading Markets in
•

New England Securities
BOSTON.

NEW YORK

PORTLAND

HARTFORD

BANGOR

MEMBERS
Boston

Stock Exchange

Midwest Stock Exchange

American Stock Exchange
(Associate)

Gene

Hussey, First Boston Corporation; Jim Moynihan, J. B.
Maguire & Co., Inc.; Sumner Wolley,
& Burr, Incorporated; Gordon
Libby, Coburn & Middlebrook, Incorporated, Hartford

Coffin

Distribution
in NEW ENGLAND
for

more

than 100 YEARS

Estabrook & Co.
15 STATE
Boston

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New York

STREET, BOSTON

Telephone LAfayette 3-2400

Teletype BS-288

Springfield

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Members New York and Boston Stock

Jack
A. C.

Providence

Exchanges

Putnam, W. E. Hutton & Co.; Arthur Tower, J. Arthur Warner &
Co., Inc.; Henry F. Griffin,
Allyn & Company, Inc.; Louis C. Lerner, Lerner & Co.; A1 Wagner, Coffin &
Burr, Incorporated

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Founded In 1865

Members New York, Boston, Midwest and
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Trading markets in
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Street,

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Liberty 2-6200

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Teletype:

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BS 338

CHICAGO

New England Branches:
J.

F. Robbins, F. S. Moseley & Co.; Birney Halliwill, F. S.
Moseley & Co.; Duke Hunter, Hunter
Securities Corporation, New York City; N.
Irving Maxfield, Cohu A Co., New York City;
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Lowell

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28

The

(800)

Commercial and Financial Chronicle

.

..

Thursday, February 19, 1953

White, Weld &. Co.
Members

of the New York Stock Exchange

Devonshire Street, Boston 9

111

We maintain active markets
in securities

of

Natural Qas Companies
Tom

New York

Mullins, White, Weld & Co., New York City; Harry Walker, White, Weld
White, Weld & Co., New Haven, Conn.; Bert Burbank, White, Weld & Co.,
Francis R. Coggill, White, Weld & Co.

& Co.; F. T. Sutton,
New York City;

Philadelphia

Chicago

Hagerstown Minneapolis Providence

New Haven

Amsterdam

London

CO.

F. S. MOSELEY &
ESTABLISHED 1879

MEMBERS
New York Stock Exchange

American Stock Exchange

Boston Stock

Midwest Stock Exchange

Exchange

John

Underwriters and Distributors

CORPORATE

of

Hart, White, Weld & Co.; Homer Wirth, Mabort & Co.,
Keystone Company of Boston; Nick De Simone, White, Weld

J.

White,

New York City:

Red Monson,

& Co.; John E. Cashman,

Weld & Co.

MUNICIPAL

AND

SECURITIES
COMMERCIAL

BOSTON

NEW YORK

.

CHICAGO

.

.

PAPER

INDIANAPOLIS

WORCESTER

UTILITIES

PUBLIC

PRIMARY

•

MARKETS
INDUSTRIALS

WITH COMPLETE

Wilfred

RAILROADS

N.

Day,

Chas. A. Day & Co., Inc.; Dick Currier, Jackson & Company, Inc.;
Jackson & Company, Inc.; Reg. Whitcomb, Spencer Trask & Co.

Pete Munn,

TRADING FACILITIES
BANK

BONDS

PREFERRED

•

STOCKS

AND

INSURANCE

STOCKS

COMMON

•

Blyth 6, Co., Inc.
NEW YORK

BOSTON

SAN FRANCISCO

SPRINGFIELD

•

LOUISVILLE

EUREKA

•

•

•

-

•

CHICAGO

PHILADELPHIA

DETROIT

SACRAMENTO




•

•

•

LOS ANGELES

PITTSBURGH

•

MINNEAPOLIS

FRESNO

•

SAN JOSE

■

SEATTLE

CLEVELAND

•

SPOKANE

•

•

PASADENA

•

PORTLAND

INDIANAPOLIS

•

OAKLAND

-

•

SAN DIEGO
Shelby Cullom Davis, Shelby Cullom Davis & Co., New York City ; Emil Kumin, Estabrooh &
Samuel F. Colwell, W. E. Hutton & Co., New York City; George W. Cunningham,
George W. Cunningham & Co„ Westfield, N. J.

Co.;

Volume 177

Number 5196

.

.

.

The Commercial and financial Chronicle

(601)

F. L. PUTNAM & COMPANY,
''

MEMBER

BOSTON

STOCK

29

INC.

EXCHANGE

77 FRANKLIN STREET
BOSTON

10, MASS.

dealers in over-the-counter
inactive securities

and

Manager

Trading Dept.: JAMES J. GALVIN

Teletype BS 497

Telephone LI-2-2340

PROVIDENCE

PORTLAND

Frank

Harrington, H. D. Knox & Co., Inc.; Curt Townsend, Weeden & Co.; Joe Turnbull, Securities
A Exchange Commission; Phil Kendrick, Securities A Exchange Commission

textiles
DEALERS

.

industrials

..

public utilities
banks

insurance

HOTCHKIN CO.

Telephone

LAfayette 3-0460

Dealers

in

Unlisted

Established

Cable Address

STREET

STATE

53

"Tockin"

BOSTON

Securities

1908

9,

MASS.

*

John

D'Arcy, F. L. Putnam & Co., Inc.; Anthon E. Lund, Securities & Exchange Commission,
York City; Louis Walker, National Quotation Bureau, New York City; J. B. Maguire,
J. B. Maguire & Co., Inc.

New

*

Chas. A. Day & Co.
Incorporated

LISTED and UNLISTED

BONDS and STOCKS
Particularly of

NEW ENGLAND CORPORATIONS
Inquiries invited from Dealers
and Financial Institutions

Maintaining

a

Retail Department
England

with Distribution in New

WASHINGTON AT COURT STREET
Member Boston Stock
Frenkel, Gersten A Frenkel, New York City; George Dedrick, Joseph McManus A Co., New
City; Robert McCook, Hecker A Co., Philadelphia; Joseph Carew, P. L. Putnam A Co., Inc.;
James B. MacFarland, H. M. Bylleshy and Company, Incorporated, Philadelphia

Lester

York

Dealers and Brokers in

general market issues

Exchange

B. J.
MAGUIRE & CO., IN
31 Milk

Street, Boston

Massachusetts

PRIMARY MARKETS
Specializing in

new england securities

New England Securities

Utility and Industrial Stocks
Direct

Private

A. M. Kidder &

Phone to

Co., New York

/

for

New York Bank & Insurance Stocks

Ralph F. Carr & Co., Inc.




31

Open-end Telephone Wire to New York

MILK STREET

BOSTON 9,

MASS.

New Yorkr-CAnd 6-1613
Providence, R. I/—Enterprise 2904

Bell System Teletype-BS-U2
Portland, Maine—Enterprise 2904

Boston—HUbbard 2-5500
Hartford, Conn.—Enterprise 6800

30

(802)

The Commercial and Financial Chronicle

.

..

Thursday, February 19, 1953

Established
1926

H.

D.

KNOX
&

CO., Inc.

MEMBERS
New

York

Security Dealers Ass'n

DEALERS AND

BROKERS IN

Lee Hallett, Goldman, Sachs A Co.; John McLaughlin, McLaughlin,
A Co., New York City; Hal Murphy, Commercial & Financial

Arthur

Wadsworth, Arthur G. Wadsworth A Co., Dartmouth, Mass.;
D. McDowell, Charles A. Day A
Co., Inc.; Jim Duffy, Paine,
Webber, Jackson A Curtis; Arthur C. Murphy, A. C. Allyn
A Company, Inc.

Reuss

Lewis

Chronicle, New York City

UNLISTED

SECURITIES
•

11

Broadway

NEW YORK 4
Telephone DIgby 4-1388
Bell

System Teletype NY 1-86
27 State Street

BOSTON 9
Telephone CApitol 7-8950
Bell

System Teletype BS 169

Direct phone

between offices

Japk Altmeyer, Hay den, Stone A Co.; John Stein, J. F. Reilly A Co.,
Incorporated, New York; Ray Coppens, J. Arthur Warner A Co.,
Inc.;
Willard Putnam, A. C. Allyn A
Company, Inc.

Jules

Bean, Singer, Bean & Mackte, Inc., New York City; Barney
Nieman, Carl Marks A Co., Inc., New York City; James P. Cleaver,
Goodbody A Co., New York City; Dayton Haigney,
Dayton Haigney A Co., Inc.
'

TRADING

MARKETS

American Piano
A. & G. J. Caldwell
A. S.

Campbell Preferred
Caribe Stores

Cheney Bigelow Wire
Works
Deerfield Glassine

Farrington Manufacturing
Gorton Pew Fisheries

International Correspond¬
ence Schools World Ltd.
Common

George E. Keith Preferred
Middlesex

County

J.

National Bank
National

Company

Roger Bragdon, Goldman, Sachs A Co.,
Boston; Irwin Schloss,
Goldman, Sachs A Co., New York City; Arthur
Engdahl, Goldman,
Sachs A Co., Boston; Skip
O'Rourke, Goldman, Sachs A Co.

Bill

Burke,

curities

A

May A Gannon, Inc.; Commissioner Paul Rowen, Se¬
Exchange Commission; Harry L. Arnold, Goldman,
Sachs A Co., New York City

Polaroid Corporation
Preferred

Riverside Cement

Rockwood

Company

EMAC

Specializing in

Preferred

Seneca Falls Machine Co.

Southeastern Public

Hampshire

Municipal

Corporate Bonds

Bonds

and Stocks

COMMON STOCK

Wiley Bickford Sweet
Corporation

STOCKS ODD LOTS OR BLOCKS

Retail Distribution in New

Orders executed by
your

own

investment

the

Chace, Whiteside, West & Winslow

dealer

undersigned

Phone

or

1

Paul D. Sheeline & Co.

write

JACKSON & COMPANY, INC.

SQUARE

BOSTON 9, MASSACHUSETTS
Telephone—Hubbard 2*1990

England

BANK STOCKS

Price $1.00 Per Share

or

LERNER & CO.

Massachusetts

(Par Value: $0.10)

A MARKET PLACE FOR INACTIVE




New

Vermont

Cranberry

Teletype—BS 69

State and

ELECTRONIC MICRO-LEDGER
(A New York Corporation)

United Cape Cod

POST OFFICE

Maine

ACCOUNTING CORPORATION

Service Company

10

Underwriters, Dealers and Brokers

Offering 299,900 share*

31

Milk

Street, Boston 9, Mass.

Telephone Hancock

31 Milk St., Boston 9, Mass.

INCORPORATED

24

Federal

Street, Boston 10

Phoenix Bank

Bldg., Providence 3

0170

Teletype BS-51

Tol. Liberty 2-2518

7:7-;—

aaa

1 y

t^Ts-iSS ZZtST^z^~?>^

■*^s?
-

0

AA^r~^«-

vr^~-.^S-v3>S^ ■*>

Volume 177

Number 5196

..

.

The Commercial and Financial Chronicle

(803)

31

Townsend, Dabney & Tyson
ESTABLISHED
Members

Associate

30

1887

and Boston Stock

York

New

American

Members

Stock

Exchanges
Exchange

STATE STREET, BOSTON 5

UNLISTED SECURITIES
ORDERS EXECUTED ON ANY EXCHANGE OR MARKET

Private Wire
New York

System

Telephone CAnal 6-1540

Teletype BS-346 for Trading Department
BS430 for Municipal Department

Branches:

Al

Dykes,

du
Cal

Pont, Homsey A Company; Robert Topol, Greene and Company, New York
Clayton, Clayton Securities Corp.; Al Zuccaro, First Boston Corporation

City;

Branches:

Portland, Me.

Lewiston, Me.

Angnsta, Me.

Bangor, Me.

Fitchburg, Mass.

Greenfield, Mass.

Lawrence, Mass.

Keene, N. H.

Manchester, N. H.

TELEPHONE BOSTON:
CABLE ADDRESS

LAFAYETTE

8-7010

"SENDANTHY"

Specialists
in

BARRETT & COMPANY

'

5 '

930

Hospital Trust Building

PROVIDENCE 3, R. I.

Rhode

Telephone: DExter 1-1180

Island

Bell

Open

Teletype:

End

Phone

PR
to

74
Boston

CApitol 7-1229

Securities
Jim

Lawrence

Atkinson, C. J. Device A Co.; Samuel Weinberg, S. Weinberg A Co., New York City;
Connell, Wellington Fund; Richard Nowell, Spencer Trash A Co.

NEW ENGLAND SECURITIES
Wire

Direct

to

Boston

LAfayette 3-0610

g. H. walker & co.
Established 1900
MEMBERS
NEW

YORK

&

MIDWEST STOCK EXCHANGES
STOCK

AMERICAN

EXCHANGE

TELEPHONE UNION

BELL TELETYPE PR 45

1-4000

DIRECT
NEW YORK. ST.

Hines, Chace, Whiteside, West A Winslow, Inc.;
Kidder, Peabody A Co.; Harry L. Arnold,

Bill Burke, May A Cannon, 7nc.; Lloyd
Goldman, Sachs A Co., New York City

(ASSOC.)

PROVIDENCE 3, R. I.

15 WESTMINSTER ST.

LOUIS.

PRIVATE WIRES TO

BRIDGEPORT, HARTFORD AND WHITE PLAINS OFFICES

Waring,

Bank & Insurance Stocks

Over-The- Counter

Securities
Inquiries invited in all Unlisted issues

Trading Department, LOUIS A. GIBBS, Manager

Laird, Bissell & Meeds
MEMBERS

DAYTON HAIGNEY & CO.
INCORPORATED

DIRECT

Schirmer,

STREET, BOSTON

50

Teletype BS 596




STOCK

WIRE

CONNECTIONS TO

Congress Street
Boston, Mass.

1387

"Candid" Jack Germaine, Singer, Bean A
Mac hie,

Inc., New York City

N. Y.

Bell Teletype NY 1-124849

Brothers

Main Street

Springfield, Mass.

Telephone—WOrth 4-2463

EXCHANGE

YORK 5,

Atberton St Co.

Tifft

New York

YORK

Telephone BArclay 7-3500
I

75 FEDERAL

NEW

BROADWAY, NEW

120

Schirmer, Atherton & Co.
49 Pearl Street
Hartford, Conn.
Mitchnm, Tally St Co.
650 South
Los

Spring St.
Angeles, Calif.

DC PONT BUILDING

95 ELM STREET

LINCOLN LIBERTY BUILDING

WILMINGTON, DEL.

NEW HAVEN, CONN.

PHILADELPHIA, PA.

32

(804)

John

Jim

Ryan, Goodbody A Co., New York City;
William
Goodbody & Co., New York City; Albert Woglom,
Goodbody & Co., Boston

The Commercial and Financial Chronicle

Eiger,

McCormick, A. C. Allyn & Company, Inc.; John McCue, May &
Gannon, Inc.; Leon E. Day, Chas. A. Day & Co., Inc.

Walter

Bradley, B. W.Pizzini A Co., Inc., New York City; Harold F.
Vaughan, Doremus A Co.; George Stanley, Schtrmer, At her ton A Co.

James J. Lynch, Paul D. Sheeline A Co.; John
Mathis,
American Securities Corporation




George Payson,
Crockett, Coffin
;

H. M. Pay son A Co., Portland, Maine; Harry
& Burr, Incorporated; W. Henry Lahti, Matthew

Murphy,

Stroud & Company, Incorporated, Philadelphia; Tim
Chace, Whiteside, West & Winslow, Inc.; Frank Laird,
Stroud & Company, Incorporated, Philadelphia

Ben Thomas, Boston Safe Deposit Co.; Wilfred Conary, G. H. Walker
A

Frank

Co., Providence; Rowe Rowlings, Boston Safe Deposit Co.

Ronan, New York Hanseatic Corporation, New
Joseph Monahan, /. A. Hogle A Co., New York

York

City

City;

..

Thursday, February 19, 1953

John J. Meyers,

Jr., Gordon Graves A Co., New York City; W. B.
Perham, Coburn & Middlebrook, Incorporated;
Joe Rinaldi, Lerner & Co.

Lahti & Co., Inc.

Felix Maguire,

.

Barney Bernard, Schirmer, Atherton & Co.; Wallace Mossop, Barrett
A Company, Providence; Carroll Williams,
Laird, Bissell A Meeds,
New York City

Don Homsey, dfu Pont, Homsey A Company; Bill Thompson, Ralph
F. Carr A Co., Inc.; Leo Newman, J. Arthur Warner A Co., Inc.

Rod

Darling, du

Pont,

Homsey

Bros. Harriman A Co.; Joe

A

Company; Dick Grimm,

Havey, Boston

Herald'Traveller

Brown

"Volume 177

Number 5196

.

.

The Commercial and Financial Chronicle

.

'TTT IF
Continued from page

It

From

market

a

point

Great Northern stock
the

disappointments

of

was

of

view
of

one

1952.

is
^

all

It

has long been recognized in financial circles as
possessing genuine
investment characteristics and it

switching.

without

the

benefits

of

fun dieselization the company has
been able to maintain, and even

tion

a

continued

the

current

however,
tracting
tterest,

yield.

generous

in

Never-

imnmvn

He

the

opening of
More recently,

year.

it was again been
considerable buying

presumably

institutional

largely

nature.

It

at-

in-

of

has

an

been

particularly noted by followers of
railroad

ring

securities

periods

the

stock

of

has

that

in

general

held

recur-

pressure

troubles

last

the

year,

development

most

having

ad-

been
ore

activity

the

in

sympathy

strike,

with

Weather

conditions

ShaK mrfS

yea"thetemb^

the

«nnt+v

Thpeo

wheat,

ore,

lf>nmnanv'<?

traffic

view

picture,

been

lumber,

thrpp

In

sources.

business

PAmmn^ifioe

and

exactly three points below
industry showing at 35.2%.
Last year the company cut nearly
two points off this ratio bringing
it down to 33.4%.

industry as
able to de relatively

was

On the basis of

the

revenue

indicated

trend

of

Aside

the

fall

report

earnings in 1952 than in
By the time the year ended,
were

unwarranted,

When the mines reooened
the

after

steel strike was settled, iron
shipments rebounded sharply

and

operating

perform-

from

the

earn-

the

concerns

Ford

as

Motors,

Bullard, Servel, General
Westinghouse
Electric,
Remington
Rand, and
Landers,
I

„

Frarv & Clark

changes three

Since management
vears

the

ago

com-

highest bracket taxes

^

JL

~nilQi

earn-

nAi

oi

imnnrfant

an

have
of ad-

srmrrp

ditional traffic and continued
nansion

in

this

industry

ex-

is

in

of oil exploitation in the Williston
Some of the

land

in

irrigated

new

the

northwest, a
large ua'rt of it served by Great

-harp

general industrial

P^t for the Signal Corps is de-

aiming. Lapse of Excess Profits
Taxe* would cause earnings-to
substantially.

3ump very

Pubco Development (warrants):
This

public
it

'
is

c o m p a n y

wholly-owned
is

Service

of

in

engaged

in

"
currently

subsidiary

a

the

Mexico,

acquisition,

development

of

leases, partic-

gas

the

of

New

the

and

0ii and natural

SanJuan

basin,

TheSe warnmto

ofstelk
o'puUo
siock 01 ^uoco

^^955
6'

result,
higher
prevailing through¬
out most of the period,
gross rev¬
for the year were up

enues

5%.

The road

was

able

company s snares.

net inenmp inor^Pd

«earnin?s

last

vpar

charp

ramp

in

m

compared with $7.74 in 1951. Certainlv these

earnings

annpar

snf-

ficiently high to warrant complete
confidence in

continuation

of

the

present $4.00 annual dividend rate
return of around 7%.

a

flffurc Rnitcnl Fll
Halsey, ■ Stuart & Co.

'

im-

an

filters, the

company

supplies

wide range of industries includ-

"*l Y T1 T rV

L

T ri rt

with the

n o*rtr

1

For

el

viav\

heavy iron

thing!

one

ore

nni

and wheat

tonnage the operations are highly
seasonal.
Complete dieselization,
then, would necessitate a large
amount of idle diesel power standar°und
f°r months
on
end.

Idle diesel

luxury.
«of

power is

lrn»n

n

hiH

nf

at

grades

on

is

the lack

the extensive mileage

grossing the plains. In the mounres
if iwes ■
-re
#

things important savings,S dleset
power

has been

freight

service.

adopfed for road
Passehger

service

Tip

„

-

of
te.ned
neeHon

of

the

short

in

eon

Securities

.

will

hp used

company's treasin part> for expenditures made

connection

with

tjon program.

that

mates
gram

^957
0f

the

construe-

The company esti-

its

for the
will

construction

1953

years

involve

pro-

through
expenditure

an

approximately
$380,000,000,
on present price levels and

t)ase(}

conditions.

more

Telephone BOwltnp Green 9-6400
Members Nat'1 Atsn. Securities

Dealers, Inc.




the

is

indus-

replaceimportant

an

bolster to sales.
Reaction

during the last
0f

young

by

war

scientists

Bronx,

The

supplies

part of

parts

Queens,

populous

chester.

Corp.

of

in

of

and

parts

New

for

by the corpora-

use

various

*•

has .not

been

time fit¬

definitely nancing.
Hom0

Improvement

Financing

Corp. is engaged in the business

BE
constructing home imnrovements
a merger between the two and additions to
low and medium
companies may be consummated,
A second merger into Delhi Oil
in
the
time-financing
might then be practical since the home
improvements for the hom£
Murchison
interests
have
sub- owner
through its own resources
stantial stakes in both companies.
Organized in Delaware on Jan. 3<L
Only a portion of company's re1953, the corporation conducts the
serves
are
contracted
fdr, and type of business originated in 1!*46
is

that

pricedrS

1o ftd

since the price of this commodity and
previously conducted by Morhas been increasing steadily over timer L.
Schultz, President and
the years,
this is in Taylor's Director of the company wbicfct
favor.
v

will operate

Tracerlab

Inc

oiginized

vvas

The

•

to'

™

operate

initially in New Jer-r
and New York. The corpora-

sey

comoanv

oTra-

«oh expects to extend its

the current

use

isnucleonic
a lead- financing, 200,000 shares of class
A common stock
(par 50 cents)

and 200,000 share of class B

Energy Commission controls,
dioactive
isotopes produced

Started
group

a

interested

in

at

j;Pn °* his transfer to the

X-ray ceivables in
and instruments- for Pfyrjen~ P which
radiation detection and measure- Dy 1Vir' fecnullz'

ment. Operations have been con¬
sistently profitable since formaa

new

monthly record in De-

Studley, Shupert

cember, 1952.

ls

Ultrasonic Corp.: This company
engaged
in
engineering, re-

search

a ii

grams,

and

d

w

PHILADELPHIA, Pa.—Studley,
^

sonic

has become associated with
:
_«_
t v
1'

firm.

equipment and

utilizing

.

Shupert & Co., investment counselors» .announce that John D,

' development
pro-.
in the Manufacture ^Foster

and installation of

is guaranteed

John D. Foster With

tion of the company in 1946. Sales

set

,

Prior to join^ Studley, Shu(sonic waves). Its staff includes pert & Co.,-Mr. Fosteri was »smany
of the country's,' leading sociated with DeHaven & Townenergy

experts in this branch of science,

computers

equipment

for

and

send,

control -of

*

A

fr0m

the

nance,

with

man-

the

financial

following graduation^

Wharton

School

of

Fi-

University of Pennsylvania,
B.S.

a

in

year

he joined

1943

was

economics.

That

the Pennsylvania
Co: for Banking & Trusts and in

small

new,

Mr. Foster entered

field in 1937

slle.to a he,ght of I33 miles as Monitor division, acquired in 1952,
wel1 as Powering a Douglas Sky- makes motor control and switch
gear •e(tulPment-

-as

ment.

related

the

Crouter & Bodine

naviga- ager of the investment depart-

,are

of rocket engines for both guided missiles. This branch of
guided missiles: and aircraft*-' in the company's business is expand-

speed m excess o£

corporaliquidating reexcess of $100,0€v,

monthly

.n

sub-

a

equipment

has tional
Also manufactured
now

is

ra-

In 1951, Tracer-

lab acquired Kelley-Koett,
sidiary which produces

corn-

m(Jn stock (par 50 cents) will be

outstanding. The class A common
stock *s entitled to certain divi¬
dend and liquidation preferences,
The class B common stock was
issued to Mr. Schultz in considera-

ers

a

the company,

working capital.
substantially all of which will be

ISiSr ai?
?.,c01?centrated "J tion in its business of
McAllen field, the extent of home improvements and

processes

Motors,-Inc.:

a

altitude record. More

new

officer

re-

lieved to possess good commercial

Co.

f?ntly: an
made by Reac- possibilities. ;
!i°n d,rov® the ?eP^bh? X^.91
Walt Disney Productions: This
*br°ugb the. s?m.5J'.1barr.l®r' The company has long been known as

named

of

of

the

trust

Real

investment

Estate

Trust

Mr

Philadelphia,
Foster is

University Club,
Financial

member of the

a

a

director of the

Analysts

^avy 1!| baddlIJ^.^be com"

Philadel-

of

a
producer and distributor of phia and a member of the PhilPany a n^w facility this year , at animated cartoons in color for the
adelphia Securities Association.
a cost of around $4 million. A m0vie industry. In recent years
sizable production order appears activities have been expanded to
probable once this construction inciucje full-length features. The
has been completed. Recently, the company's library contains over
company and
its associates ac- 400 films believed to possess very

Firm Now Schmidt,

^ed a^control!tog mterest m valuable

^^s^L^'r'Xle^cra! hav^bcenprnmabTe "nee
Jro.m luay4 /o to par, wnne special

RAILROAD STOCKS-tOfiDS

Y,

•

Poole, Roberts, Parke

;

The bonds will be redeemable

Borough
New York 4, N.

•

m nine Texas eoun-

.

to reimburse the
ury

The

25 Broad Street

7,™

k°ard leases

1'2°° mileS per h°Ur and a'S° t0 high fideUty loudsPeaker is be"

*•

at

in

.

..

despite

tne

.

f

the
the

aad

tnat
an

1947

,

.

.

worx

nas

experimental

production

haVe

costs

stock outstanding.

revenues

Southwest Gas Producing:

The

sells

company

long-term

natural gas under
contracts. Lease hold-

ings of the company, both
ated

these

on

already been

and

unoperated,

total

will

continue

arrives,

to

be

from

shorts

veloped

and

are

being

over

operated,

An

carried on, and reserves of natural

extensive drilling program

are

estimated

trillion Cubic feet:

mpmh'„

Baltimore

nf

thp

Stock

was changed to

phiiadpi^

Fxchanae

Schmidt,

Poole*

Roberts & Parke. Partners of the
firm

are

Samuel W. Parke, Donald

de-

p

Formed '

oper-

West-

gas

Effec-

full-

j

rv

p;j

u' rrieaman V^O. rormea

which

hj

also

L. D. Friedman & Co., Inc., has
been formed with offices at 52

of

qtrppt

and

mately only 9,000 have been de-

acres,

_

"ve,F^- 13'
£' rnlSouth
o£ SchRmid^
q0 the,123
Broad

poole

\y.
Poole, Osborne R. Roberts,
Walter A. Schmidt, Orrin V. Boop,
length features like "Peter Pan," e. Coit
Williamson, and Allen D.
only currently being released.
Sapp.

rived

approxi-

66,000

phILADELPHIA, Pa.

written

day

Steam

theBorough of- Manhattan,

Since

fiims

Pr0fHS fr^.this new sour^e
£Ockeiieller
01vns 46,000 of of Income could become very subshares of common stantial. Until that

of

in

casung oe comes an acruaiuy.

109,526

York

steam-^service

potentialities for tele-

RocSler'owns ^6 OOoTf

aaee

tbe

..

tact

been largely of

York, Inc. supplies electric service in the Boroughs of Manhattan,
The Bronx, Brooklyn, Richmond
and Queens excepting the Rockaway District, all in the City of
New
York, and in Westchester
County excepting the northeastern
pOTtions thereof; and gas service
in the Boroughs of Manhattan and

Railroad

is

demand

finan^ rocket at

with the interim

^ "1, ThP^ We
in

checker- £u"dsprovide
accruing to
its

gas
»db and
ana oil
011 company
company has
nas cnecxer-

,

Consolidated Edison Co. of New

Guaranteed

CliAKAKTEEP

nn

55999^

101

redemptions
may
be
made
prices from 102xk% to par.

Specialists in

equipment
of

i, iaw ai

r™tiHvP

year.

Thic natural

" "
J
this country. Its engines have al- ing rather rapidly, and appears:
Gf theproceeds from the sale of ready sent a Viking guided mis- likely to do so in the future. The

expensive

an

Another factor

many

1988*^ progressed
r0Cket pr**u^"1'
rapidly until it
Awlrd• ofthp^nds"was w^bv °ne of the m&st imP°rtant
/'

Great Northern has not
gone in

dieselization.

original
to

tries mentioned above,
ment

and

Divi-

1946.

o,

fJli?J

so

for

since

trebled

supplied

Rile

Inc.

have

dends, which have been paid since
1941^ have been conservative because
of
working capital needs.

Although

r

associates yesterday (Feb. 18) offer.ed
$46,000,000
Consolidated
Edison
of New York, Inc. first

n

heavily as many other major
carriers, particularly in the west,

w

VI rci 9 UVneVli Mlt

which, at recent market levels, affords

Stuart BrOUtt
w

kut

Gas-

Financing Corp. class

A- common stock at $1.50 per
share.
Net proceeds from the sale of
ihe stock' toSether with other

and

^Iharl «eld
of nuclear
physics and tracer
tionsmto
several other states.
chemistry
involving the
of
Upon completion of

5ctwu' au£mented by the. *ac]; ing auto, tractor, truck, airplane,
tbat tbf company over a period of diesel engine, hydraulic, paint,
4s "iaterially improved its sugarj f00d products, drug, bev-;
d : strjppre, it is hardly sur- erage> plastic and chemical. Sales

nearly $1 million off its Federal

Oil

at ^>1 per snare

Purolator Products: As

a

shave

S

Tavlor

whteh'tlm^the Fadioactive,
isotopes. of
It
mg 1,manufacturer

"during
aurm&

likely to continue.

ls

air

nearly

to

ings during the current

expansion portant maker of oil, gasoline and Oak Ridge, Tenn.

With all of these

1952,

-

^em continues-

Ua cov

September,

Parent company will
sPin-off' instruments in this country, and
*bls subsidiary to warrant hold- with Bendix Aviation is the priners. The pnee trend for natural cipai
commercial
processor
of
gas has been persistently upward radioisotopes, handling and proP the last decade, and this trend cessing for resale, under Atomic

arounckjme eastern end of the sys-

rates

in

was

.

freight

began

year

Northprnf is coming into production.

Searight, heading at
participating dealers, i»
publicly "as a specula¬

provement

f^ure this
s'ncr doL.dic ^Oincd. In July, 1952, a 28% inb ® iness is increasinT whde outln,, Kn;by J?/?16"1?. Co"
business is increasing wniie out
purchased, and it
believed

Very

aluminum plan's

nrovpn

offering

contract at favorable rates

new

this should result in
larger earn-

Drilling results to date have been

heavy volume was maintained throughout the balance of
the shipping season. At the same prism& that renewed investment
time, general traffic conditions interest 's hemg generated m tne
oontinued favorable. As a
and
also
reflecting, the

a

whl?h

and the high degree of oper-ularly
ating
efficiency
the
company s

New

of

available
it

exploration

current

probably be the major beneficiary

tiowever, such apprehensions

ore

favorable

prospect. Trafficwise the road will

during

been

the

this

coaxial

as

Electric,

ings

Basin.

have

that

mixed

of the few roads to

found to

contin-

should continue.

ance

farm

1951.

indicated

generally

the

had

is

de

one

whole
as well.
a

capital improvement plans it

months that Great Northern would
lower

It is extremely

doubtful if the

of

was
!Pon

are

main

of

it

expected

In 1951 this important ra-

was

the

ued

the extended cessation of iron
steel

whole.

tie

on,

of

such

inciude sucb

.

well.

up

Great Northern had its share of

verse

«n

improve

degree

applications

and broadcasting cables. Customers

its trar?itm«ni
traditional hicrh
high
operating efficiency,
theless, last year it failed, priceConsistently over a long period of
wise,
to keep pace with other
years the
company's transportaequities of similar, or even slight- tion ratio has run well below the
ly less, stature. This desultory ac- average for Class I carriers as a
affords

George A.
group

tion'' 200,000 shares of Home Im-

cial

,

all diesel and so is practically

Even

Imp. Fin. Glass A

Common Stock Offered

Off the Beaten Track!
'

.

Home

Pays to Speculate-

Great Northern
_

9

(805)

is Broadway, New York City, to
gage

in

the

securities

at. one-half, Louis D. Friedman

Deliveries

dn

of the firm.''

is

a

u '■>'<

en-

business,

Capper
& Co. Expands
^
Capper (& Co.,
tional

Association

Dealers,
moval

Inc.,

of

princifkii'ferbkdway
rbi,ut

announce

their

to

^

members Naof Securities

offices

larger

the
from

re-

2£

quarters ia

Bfoad Street, New York

City»^

-

34

The Commercial and Financial Chronicle

(806)

By

named PBA

shown

1949, when he became the first
full time Secretary in the
history

For the most part, however, the figures
comparable operating earnings.

arc

foregoing banks for last year is considered
though all institutions did not follow the general
trend of operating earnings because of individual problems and
characteristics, most were able to take advantage of the generally
favorable.

E. JOHNSON

H.

Even

favorable conditions to

This Week

were

able to report

Business activity for the

period was maintained at a high level
and the acceleration of defense

production. Despite reduced activity in such fields as textiles and
the steel strike in June and July, industrial production for 1952
averaged higher than in the previous year.
demand

the

reflected

credit

for

activity and bank loans of practically every type increased. Alter
a small seasonal decline during the early months of the year, loans
expanded sharply and reached new records in the final quarter,

gaining by close to 9% for the year on a ccuntry-wide basis.
This expansion in loan volume was
of interest rates in most

business loans for

areas

1952

accompanied by

a

firming

that the averages annual return

so

considerably above that of a year
earlier. For example, the rate on short-term loans for 19 selected
cities averaged 3.5% in 1952 as compared with 3.1% in 1951.
on

The increase in loan volume and the higher

improved
most

interest rates were

operating picture last

moderate gain in holdings of gov¬
and, of course, the rate of return
these investments because of the higher yield. For

Countrywide there was
ernment securities by banks
year.

on

banks,

however,

a

the gain in gross operating

largely attributable to the increase in interest on
Expenses

earnings was
loans.

steadily because of higher wage rates and the
activity. These increases in costs were easily
absorbed by the larger gross earnings with the result that net
before taxes showed a sizable gain.
I
Federal

rates and
curred

rose

banking

greater

taxes

the

higher both because

were

larger taxable

In

earnings.

of the

some

increase
banks

cases

in

in¬

profit

liability which restricted gains in net
Nevertheless, most institutions were able to show an
in net operating earnings for the year, although the
experience varied considerably among the different banks.
an

excess

income.

increase

Two

ago we presented a tabulation on the operating"
earnings of major New York City bank stocks. This week, the
operating results for the past three years of 18 of the large com¬

mercial
York

weeks

banks

City

in

various

sections of

the

country outside of New

shown.

are

Operating Earnings
1051

1958

I960

Illinois

National

$7.03
16.49'

First National of Chicago
Trust

Harris

*31.41

Northern Trust

f2Q.34

,

$6.45
14.85

$5.88

*26.98

*25.96

11.92

tFirst National

Smith
in

__

_

___

__

City

118.82

fl9.54

nounced

by

partment.

He

4.56

4.16

3.72

4.05

J3.14

113.09

1f3.49

Norton

have

and

been

J.

Pempel

promoted

to

Second

of

partment

the

_

_

3.48

4.09

3.97

22.44

20.45

18.25

Irving
York

Trust

its

of

headquarters

Street.

Albert

(L. A.)

2.10

2.12

10.53

8.21

of Portland

3.41

3.26

3.27

of

3.98

3.73

3.81

4.66

4.51

4.43

Bank

St.

Louis

Detroit

of

Republic National of Dallas

3.98

3.31

* Adjusted for two-for-one
years

ended

stock

Nov.

split

above figures have been
and the issuance of new

reported

earnings

other

operating results.

may

adjustments
This

is

the

case,

are

transfers

to

necessarily the

Govt. Bond Portfolios

Sources of Gross Income
17 N. Y. C. Bank Stocks

to

the

Government

sent

on

request

Laird, Bissell & Meeds
Members New York Stock
Exchange
Members American Stock

Exchange

1*®

of

Office:

26,

Selvage,

the

member

a

had

experience

Feb.

as

of

CPA

a

in

BROADWAY, NEW

YORK 6, N. Y.

Telephone: BArclay 7-3500
Bell Teletype—NY 1-1248-49
(L. A. Glbbs, Manager Trading
Dept.)

Specialists in Bank Stocks




land

announced the appointment

Edgerton

A.

Pattison

the

to

responsible for the

direction

Tax

of the

Account¬

Insurance

and

Depart¬

C.

Flanigan,

Manufacturers
New

York

President

Trust

Paid-up
Reserve

Capital

announced

Feb.

on

that Andrew L. Gomory will
the

head
Bank's

De¬

£3,675,000

The Bank conducts

banking and

every

exchange

description of
business.

Trusteeships and Executorships
also undertaken

be

re-

this

der

to

his

home

or¬

make
in

Mr.
who

Gomory,
has

been

associated
with

Manu¬

facturers Trust
Andrew

L.

Gomory

Company

for

of

[Samuel S. Flug

Walter

is

announced

Jeffreys

member

a

Strassler

&

by President

Carlin.

of

Mr.

Flug

the firm of Flug,

Weissman,

Industrial

mittee for

of

College

years, is
American Com¬

Standstill

and

a

Creditors

member

of

of

the

Regents of Long Island
Hospital.
Since joining

Manufacturers Trust

Company in

1931, Mr. Johnson has been VicePresident in charge of the
Foreign
Department.

He is also

of

America

Far-East

Commerce

and

a

Director

Council

Industry,

of

and

a

member of the American Institute

of

Mining and Metallurgical En¬

gineers.
Johnson

plans

In

is

for

retiring
making

the

at
no

immediate

59

Mr.

business

future,

but expects later to resume activ¬

ity in
his

one

of the several lines

early experience.

a

director of the Ames Iron Works,
a

director of

Billihgs and Spencer
Hartford, Conii, etc. Mr. Flug

of

has been interested in educational
and

community activities.
*

Approval is made known by the
New York State
ment

of

reduction

Banking Depart¬

certificate

a

of

of

about

Its

principal

officer

will

Board; Percy C. Madeira. Jr.,

Chairman

the

of

Executive

Com¬

the

Co:_will be di vorced

from that company's banking and
trust functions and be carried on

by

newly chartered

a

ance

will

bank.

Each

Trust

Co.,

shares,

par

calling for
capital stock of

the

title insur¬

all of whose stock
by the combined,

company,
be owned

stockholder
National

&

share of stock in

one

held.

Each

Title

each

share

stockholder

Bank

&

Trust

160,000 shares,
outstanding, will receive

in

par

Co.,
$25,

one

and

which has

one-half

the

which
has
224,455
value $20, outstanding,

merged bank for

Land

of

Bank

in

the

merged

bank for each share

now

held. Of

the

shares

240,000 shares which the stock¬

holders of the Land Title Bank &
Trust

Co.

therefore

will

receive,
adjust¬
ment in the par value of its 160,000 shares from $25 to $20 per
share, and the balance in admitted
40,000 shares represents

valuable

assets

of

Bank

Trust

Co.

its

&

the

%

ft

Title

Land

not

stated

on

sheet.

balance

year-end

an

if

the

Freeport Bank of Freeport,
Long Island, N. Y., from $425,000
consisting of $75,000 of preferred

stock, in

each)

50,000

and

of

shares

$350,000

(par $1.50

of

common

stock par $10 each.

common

■ii

:Js

Scranton,

to

$1,050,000 by a stock dividend
of $50,000, the new capital
having
become effective Jan. 31.

Association, effec¬

tive June 30, next, was announced

by PBA Presi¬
dent

George
Rutledge at

C.

a r

Pa.

its

of

current

capital from

$4,185,000 to $4,500,000 by a stock
dividend of $315,000.
it

the

it

increase

An

it

in

the

capital

Mechanics

Farmers

of

of

National

Frederick,

is

Md.,

an¬

nounced, whereby the amount was
enlarged from $125,000 to $550,000,
part of the increase — $175,000 —
having been brought about by a
stock dividend, and S250,000 rer

Citizens

The

stock.

new

National

Bank

Frederick, Md., which had

of

capi¬
tal stock
(common) of $100,000;
was placed
in voluntary liquida-*
tion on Feb. 2, having been ab¬
sorbed

Jan. 31

on

a

by the Farmers

& Mechanics-Citizens National

risburg,

Bank of

Feb. 13.

on

increased

month

Bank

the

has

Pa.,

suiting from the sale of

The resignation of Carl K. Dellmuth as Secretary of the Pennsyl¬

H

National

t|i

The capital of the First Portland
National Bank of Portland, Maine,
has been increased from $1,000,000

vania Bankers

First

The

Bank

Frederick, the institution

Rutledge

resulting from the consolidation of

stated that Mr.

the Farmers & Mechanics National

M

D

r.

e

11

m

u

30

Chairman of the

com¬

be

Howard A. Loeb, Chairman of

the

Tradesmen's

f

Lincoln

Spring, in

true

£2,281,250

Fund

in

a

Company

tires

£4,562,500

located

stock, in 35,000 shares (par $10
each) to $350,000 in 35,000 shares

sfc

Johnson

Protectorate.

Authorised Capital

Street.

is

V

partment

in India, Pakistan,
Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

elected

Assistant

as

'

when

Branches

office

The election
as

13, Irving Trust Com¬

Foreign

Bishopsgate,

have

York

Sullivan

Oswego, New York; Treasurer and

Mr.

become

Kenya Colony and Uganda
Head

X.

ment.

16,

in

New

Engineers. He is President and

Board

Bankers

F.

Irving in 1950, he is in charge of
the company's Purchasing Depart¬

Horace

London, E. C. 2
be

head

•Is

NATIONAL BANK
oi INDIA. LIMITED

of

39th

1946.

Germany,

BREAKDOWN OF—

pany

Peter

was

associated with the company
Mr. Martineau joined the

came

overall

for example, with the First

ling National Bank & Trust Com¬

Secretary,

is

will

its

Chest¬

and

making it the fifth
largest bank in Philadelphia and
the seventh largest in Pennsyl¬

has been

who

Title

with

$238,000,000

Bank & Trust

He

ap¬

Broad

resources

Doherty,

dent, will be

from

ft

at^ Broadway and

was

at

Co.,"

Streets, Philadelphia. Its

bined

now

January,

and

Trust

,

it

Vice-President.

the Southwest.

not

Land

limited

the main

adjusted for stock divi¬

include

and

corporation

"Tradesmen's

pointed Assistant Secretaries. Mr.

30.

the

on

for¬

Wall

1

at

Selvage

shares, in order to make
them as nearly comparable as
possible. However, in certain in¬
stances some banks do not
publish operating statements. For this

Will

of

nut

It

Pennsylvania

will receive

C.

4.15

approved

Feb.

16, that
that day re-establish

on

a

called

director of thie Lafayette Na¬
tional Bank of Brooklyn, N. Y.,

John

'figures adjusted for 20% stock dividend
paid January, 1953.
^Figures
adjusted for H,»% stock dividend
paid December, I95&.
^Includes Old Col-

^Earnings lor fiscal

would

be

vania.

Doherty,

of

First National

ft

the

of

System.

banking facility for the mittee; James M. Large.
President;
convenience of Port of Embarka¬ Warren
H. Woodring,
Executive
tion personnel at the Army Base
Vice-President.
The title insur¬
in Brooklyn.
;
ance
business of the Land Title

dent, while Francis G. Martineau
and

8.33

First National

or

the

16,

newly created position of Assist¬
ant
Comptroller.
Mr.
Pattison,
formerly an Assistant Vice-Presi¬

2.16
'

York,

promoted to Assistant Vice-Presi¬

Miscellaneous:

reserves

New

members

staff

V.

Assistant

merly

of

Feb.

on

three

New

The Board of Directors of Ster¬

Company

announced

promotion

of

Security First National

reason,

De¬

National

it
a

£

if

of

>1

if.
*

of

Bank of America._

dends, splits

Trust

Federation

member

a

is
proposed that the combined bank

office

it

announced

be

main

Co.

institutions, sub¬

final

Reserve

and

the

of

Trust

Bank.

of

California:

of

the

Chase

ments.

Mellon National

will

Bank

$2,000,000. The
value of the stock is $10 per

Fork

Ralph

Vice-Presidents in

stock

agreed

aproval of the
authorities.
It is part
plan that the combined

the

increase in the

The National City Bank of New

and

It is also announced that Donald

C.

an

been

have

their stockhold¬

to

their

the

granted

an

1950

Assistant Cashier in 1951.

ing,

Peoples First National

All

in

reported

had

it

appointed

was

Manager

recently

15, to

&

par

Assistant

Banking

from $1,500,000 to

share.

credit de¬

consumer

he

4.61

Bank

in 1945 and assisted in the organi¬

public accounting work.

"

1II-0

o 11,
Chase

Jan.

zation of the

3.62

Pittsburgh:

J9<>3.

an¬

E b b

2.75

Philadelphia:

National

J.

Percy

2.83

4.38

Pennsylvania Company

been

President. Mr. Smith joined

3.94

§20.41

Girard Trust Corn Exchange-

has

York

State

approval

capital

New

of

3.11

§18.42

Department
that

Bank

4.13

§17.65
—

credit

York

New

on

pany

Trust

Vice-President
consumer

The

W.

department of the Chase National

On

National

Second

to

charge of the

Philip

of

accounting staff, will assume
charge of the Accounting Depart¬
ment. Prior to joining the Irving

Cleveland:
Cleveland

appointment

an¬

respective

regulatory
of

bank

The

their

directors

of

Federal

the

Boston:

National Shawmut

OFFICERS, ETC.

CAPITALIZATIONS

in

Chicago:
Continental

ject to

NEW

Bankers

Philadelphia

plan of merger and consoli¬

a

dation

Irving Personnel Department, be¬

Per Share

ers

Land Title Bank

of

that
of

BRANCHES

and

Co.

recommend

CONSOLIDATIONS

was

the two most dominant factors in the bank

to

level of business

high

Trust

NEW

REVISED

v

Trust Co. and

boards

News About Banks

aided by large plant expenditures

The

&

nounce

gain in net operating earnings.

a

*

The Tradesmen's National Bank

benefit of stockholders.

the

Secretary in October,

the Association.

&

Banking conditions during 1952 were generally favorable with
the result that most of the major institutions throughout the coun¬
try

of

Bank Stocks

—

Thursday, February 19, 1953

..

National Bank of Chicago.
The record of the

Bank and Insurance Stocks

.

been

Va.,

Execu¬

Commit¬

S.

that he

as

Carl

K.

Dellmuth

C.

Philadelphia.

Howard

Petersen, President of the bank,
that Mr. 1 Dellmuth will
his

He

will

created

new

be

in

bank

partment.
sible for

tivities

Northern

T.

of

duties

charge

on

of

the

advertising.

de¬

respon¬

public relations

ac¬

bank, including its
Mr.

Dellmuth

was

National

of

Norfolk,

Jan.

14

the
and

the

to

newly

positions of Senior Vice-

Effective

*

Feb.

creased its

the

Drovers

capital from $1,250,000

to

$1,500,000 by

of

$250,000.

a

of

Lexington,

stock dividend

#

*

Election

if

2

of Chicago, 111. in¬

National Bank

newly

correspondent

He will also be
the

July 1.

the

Whitehurst

on

S.

*

reported
assume

C.

of

Vice-

Co.,

of

President.

President of Fidelity-Philadelphia
Trust

National

if

Commerce

announced

created

appoint¬

ment

of

election

could accept
an

directors

The

PBA

so

*

re¬

Bank

tee

Citizens

*

luctantly ac¬
cepted by the
tive

the

Bank.

resignation
had

and

Bank

t h's

-k

Robert

Ky.,

to

S. Davis, of

the

post

of

Trust Officer in the Republic Na-i
tional

fective

Bank

of

April

Dallas.

1,

was

Texas, ef¬

announced

Volume 177

Number 5196

.

.

The Commercial and Financial Chronicle

.

35

(807)
Feb.

on

10

President

of

by Fred F. Florence,
the bank,
following

regular meeting of the directors.

a

Mr.

Davis

was

formerly VicePresident and Trust Officer of the
First National Bank & Trust
Co.
of

Lexington.

He

has

held

posi¬

tions

in several major
firms, ineluding Harris, Forbes & Co., New

York

investment underwriters, the
Irving Trust Co., New York, from
1929 to
1941, and the LincolnRochester Trust Co.,
Rochester, N.
Y-, from 1941 to 1945* when he

joined the staff

of

the

Lexington

Bank.
❖

❖

•

in

January by

Chelew, Vice-President
sonnel

Director;

United

meeting

L.

M.

G.

and

A.

Per¬

Rentsch,

Assistant auditor.

Hart-well, Rudolph OstenGardner

Turrill

were

recently elected Vice-Presidents
California
Frank

Bank,
King-,

L.

nounced.

Los

of

Angeles,

President

Elected

Vice-Presidents

eral

President
bank's

Ladd

branch,
In

and

Secretary.

to

elected

Harold

Edison

the

an¬

Assistant

Quinton,

Ex¬
di¬

and

Southern California

Co.,

has

been

elected

a

director of California Bank.
#

Herbert

it

D.

ficers

and

President

bank.

E.

elected

was

both

appointed

Board

of

remain
of

the

Directors.

He

the-

as

Committee
Mr.

active

agement.

of

in the

National

bank's

hiessenger,

in

man¬

1916

as

between

1916

and

1953, he has served the bank in
nearly every capacity, rising to
the Presidency from the
position
of messenger.

joined
after

IC.

Citizens

B.

Wilson, who

National

in

banking experience in

1922

other

parts of the

country, was elected
Executive Vice-President.
At the annual

meeting of share¬

holders of Bank
tional
San

Trust

of

America, Na¬
Savings Assn. of

&

Francisco, all incumbent di¬

rectors

were

director

was

reelected,

a

new

installed in the per¬

son

of Robert Di

M.

Paganini,
of
Security

Giorgio. Charles
Chairman
of
the

Board

Co.,

added

was

Council
ficers

of

of

Bank

recently
dencies,

to

the

Lithograph

the

Advisory

Board.
of

Two

America

of¬

were

elevated

to

it

announced

was

Vice-Presi¬

by

President Carl F. Wente.
They are
Fred
Yeates,
Director
of
the
Bank's Publicity, and Maurice G.

Litou, Assistant Manager of the
International Banking Depart¬
ment, both at San Francisco Head
Office.

Mr.

bank in

1937.

associated
for

Yeates

The

rancher
rector

it

22

H.

the

an¬

appoint¬

Steiwer, Sr.,
Fossil, Oregon, as di¬

the Federal

Portland

for

the

succeeds Robert B.

in

farming at
whose term

branch

Reserve Bank

of

of

San

two-year term

ending Dec. 31, 1954.
engaged

the

of

System

Jan.

the

Francisco

businessman,

Toronto,
Feb.

on

Ont.,

4

the board

on

of

extensive

Canadian

by

State

Ltd.,

of

was

I.

a

K.

num¬

companies

financial

United

Mr. Steiwer

Taylor, who is

livestock

and

$tates, particularly
jpf

Florida.

He

Dominion

of

the
Orange Crush Ltd., To¬
ronto; Chairman of the Board of
General

Bakeries

etc.

the

Adams,

Oregon,

expired.




and

& Reed, Inc., Metropoli¬
Building.

tan

of

S.

LOS

FRANCISCO, Calif.—Van

Trefethen

admitted

and

March

on

1

will

Rhodes

San

Francisco

Mr.

Stock

for

some

with

King

Inc.,

1151

and

Rhodes
tis

time.

Murel

become

Merritt
South

&

D.

connected

Company,

Broadway.

Ex¬

Trefethen has been

with the firm

Jr.

have

Mr.

previously with Cur¬

was

Ltd.,

United

Montreal,

States

he

is

Chairman of the Board of J. Wil¬

Horsey

Corporation, Plant
Florida; - President and Di¬

rector of

Orange Crush Company,
Chicago, etc., etc.

(Special to The Financial Chronicle)

BOSTON,

Mass.

Daniel

—

J.

Griffin, Joseph P. Lombard, and
Philip D. Winn have been added
to

the

staff

of

Hutzler, 75

Salomon

Federal

Bros.

&

Street.

■

t

Bankers Offer Niagara
Mohawk Power Shares
An underwriting group headed
jointly by Merrill Lynch, Pierce,
•'p^ier & Beane, Kidder, Peabody
& Co., and White, Weld & Co. on
Feb.
17
offered ' 1,000,000
shares
*o

value

oar

of Niagara
at

$27.50

award

won

common

stock

Mohawk Power Corp.,
per
share. The group
of

tlje stock at

petitive sale Feb;

16

on

com¬

its bid of

$26,939 per share.
Net.

the

nroceeds

stock

$25,000,000

from

principal

general

mortgage

used

pay

due

to

March

1,

construction

-

the

the

sale

of

sale

of

amount

of

will

be

bonds

$40,000,000 of loans
1953 borrowed for

in--1952

from

banks

unaffiliated -with the company, to

reimburse the company's treasury
and to finance in part the com¬

1953

the

company's

including

construction

the

proposed

acquisitions*; will necessitate not
than $45,000,000 of debt or

more

equity

financing including bank

loans, in addition to

the

present

financing.
Niagara

Mohawk

is engaged

utility
State.

business
The

subsidiaries
Power

Power Corp.,
in the electric and gas

in

company

New

York

has

three

Canadian

Co.r-Ltd;r which are elec¬
companies operating in On¬
tario, Canada ai>d Beebee Island

tric

Corp.,

which <0#ns

and

operates

of

Phil¬

tional

lecture

the

under

sponsorship

Philadelphia-Baltimore

Exchange at 5:15
Feb.

24,

in

the

p.m.

Tues¬

board

room

of the

Fidelity-Philadelphia Trust
Company. Speakers will be John
L.
Ricker,
partner
of
Ricker,

Sheldon &
Co., and Charles L.
Wilson, Secretary of the Philadel¬
phia-Baltimore Stock Exchange.
Their subject

will

be

"Brokerage

Names Halden Vice-Ch.

Our

Reporter

on

Governments

Charles
ed

the active

on

side, and this is being attributed mainly as an aftermath of the
refunding operation which generally brings in its wake a number
of maturity changes and larger volume. The short-term issues are
in
good demand, with corporations giving the larger financial
institutions competition for the choicest near-term obligations.
This keeps the tone good in these securities. The intermediateterms have had

a

somewhat enlarged demand from both investors

and traders because it is
not

do

now

evident that the

new

2 Vz % bond did

anything to hurt the outstanding ones which were de¬
a bit too much by the uncertainty of the new offering.

pressed

Although there is no glamor in the longer-term higher coupon
obligations at the moment, there has been, nevertheless, a fairly
some

of these

securities from both the

public and private funds.

Prices have bean fairly firm even though
has at times been larger than the demand.

the supply

Dual

Although the

Refunding Seen Again

money

markets

are

still talking about the lack

of

interest in the longer-term 1lk% obligation which was one of
the issues offered in exchange for the matured February certifi¬

cates, there

expectations that this split type of refunding will
be used again by the Treasury in future refunding.
To be sure,
the next important operation will not come along until June i,
and this is

are

that the Treasury will make this a very important undertaking by

making voluntary offerings to holders of the obligations that
eligible but which were not called for payment on Feb. 15.

were

bond?,, it is indicated, would be the principal
obligations that would be involved in what is being termed a vol¬
untary pushing out of debt maturities.
The Treasury will not
have to call these securities, which would in itself involve cash
redemptions if they were called for payment at a specific date.
On the other hand, the Treasury can make a voluntary offering to
be

the extent that there will

acceptance

by them, there will be some extension of the
floating debt, which is one thing that the powers that be seem
very intent upon bringing about. Conditions in the money markets
an

the time

at

upon

of such an offering would have an important bearing
the kind of reception such an exchange offer would receive.

development,

floating debt, admittedly

very

in

partner

the

the

Ameri¬

governing

group's organization

according
to
an
an¬
this morning by Ed¬
McCormick, Exchange

ward

T.

President.
member

the

at

Mr. Halden has been

of

since

ors

the

board

1950.

annual

He

reelected

elections

held this

Mr.

.

Halden

Street

began

in

career

1919

his

as

a

Wall
runner

for Borg Brothers on the old New

York

Curb

Broad

Market

Street.

association in

ity with the

He
an

outdoors

continued

on

his

executive capac¬
when the Ex¬

concern

change moved indoors in 1922 and
became a partner in the firm in
1922 the year in which he became
member of

a

Market.

Mr.

the New

York Curb

Halden

functioned

independent broker from
1926 to 1947 at which time he be¬

as

an

came

&

a

partner in H. L. Buchanan

Co.
He will

serve as

chairman of the

Exchange's finance committee,
post he held during 1952.
Governors

who

will

serve

that

delicate

head the executive

committee; O.
Browning, committee on secur¬
ities; Robert C. Van Tuyl, outside
supervision;
David
S.
Jackson,
F.

floor

transactions; Sterling Nordadmissions;
Walter
T.
arbitration; Thomas H.
Hockstader, public relations; Jo¬
seph F. Reilly, realty, and Andrew

house,
O'Hara,

Baird, business conduct.

C. Lowry Walker
C.

may

broke

balance

Debt

the

camel's

back, and

of the various economic

S.
&

Lowry Walker, Greenville,
C., representative of McCarley
Company, Inc., has passed away.

in

that

forces

way

out

of

throw
line.

the

U. S. TREASURY

This

favorable thing to have happen.

a

STATE

is going to be mere important as time
in which Government securities are shifted
from group to group, and maturities are lengthened or shortened
as the case may be will make its influence felt
upon the economy
of the country.
Inflationary or deflationary forces will be coun¬
teracted in some measure by debt management policies. This, along
with the credit policies of the monetary authorities, will most
likely be the way in which efforts will be put forth to keep the
passes,

management

and the

way

and

MUNICIPAL
SECURITIES

economic scale in balance.

Buyers Liquidity-Minded
There

to be

no change in attitude as far as the
money
concerned, as it is pretty much on a short-term liquidity
basis because of the operations it is believed are going to be under¬
taken by the monetary authorities. The*changes in credit
policies

seems

market is

and

in

issues
to

debt

management

largely

be faced.

followers

on

are going to
the short-side as long

keep
as

buyers of Treasury
there are uncertainties

The intermediate-term issues appear to

have certain

they have had in the past, and it seems as though the
2V2S due 12/15/58, the new bond which came out of the recent
refunding is being bought by institutions that took the 2V4S in
place of it in the exchange offer.
There are likewise reports that
private pension funds have gone into the market and bought some
of the recently offered 2Va% bonds.
as

The longer end of the list has also been

a

bit steadier with

reason

issues.

for

Belief

a buoyant tone at times.
Fund buying has been
the somewhat better action of the highest income

that

these

bonds

have

pretty fully discounted a
coupon bond, which may 01* may not come
along, has brought more buyers into these securities.

longer

termer high

Aubrey G. Lanston
8c Co.
IN CORPORATED

15 BROAD

ST., NEW YORK 5

WHitehall 3-1200

a

tendency to have
the

a

as

committee
chairmen
during the
coming
year
include:
John
J.
Mann, board chairman, who will

a
very negligible if any effect upon the economy as a whole.
Too
great a shift in ownership of Government securities might be the

straw

a

of govern¬

was

week.

desirable

take sometime to accomplish, if it is going to be
done in such a fashion that only token amounts are going to be
extended into somewhat longer-term, issues in these operations.
However, this may turn out in the long run to be the best way
to bring about debt lengthening, and at the same time have only

of

Exchange

nouncement

Treasury's Refunding Policy Important
The extension of the

at

meeting

The

retirement of the partially exempt 2s on June 15 was expected.

the holders of the various issues and to

Stock

board

time away yet, but it is believed in some quarters

some

Halden,

vice-chairman

can

The market for Government securities has been

W.

H. L. Buchanan & Co., was elect¬

By JOHN T. CHIPPENDALE, JR.

Niagara

Co., Ltd.,^and St. Lawrence

Club

American Stock Exch.

would not be

from

and

Women's

Accounting."

Lipton Company.

The taxable 2%

Three With Salomon Bros.

Meeting

adelphia will hold its sixth educa¬

day,

ANGELES, Calif.—Ely O.

Merchant,

be

to

changes.

vestment

Stock

(Special to The Financial Chronicle)

Shuman, Agnew Admits
SAN

To Hold

PHILADELPHIA, Pa.—The In¬

of

Two With King Merritt

Stores

of

of

In

York

population

a

is

Power

raising and

having
1,100,000.

Waddell

New

good demand around for

interests

Toronto^. Chairman

program

it

William
of

of

William

pany's construction program. It is

on

of

J;.

presently} anticipated that through

Reserve

nounced

at

ber

the

eastern

about

Of¬

the

Board of Governors

Federal'

ment

joined

than 30 years.

more

Trust

*

of
Canadian

Canada

the

and

State

were

Mr. Litou has been
with Bank of America
ft

-

*

has

a

elected President.

was

years

Tretheway

Board

Rindge also will

central

Klein,

Johnston, President. The Imperial
Bank with assets of
$586,000,000
is one of Canada's largest banking
institutions. Mr. Horsey is Presi¬

Roy A. Britt, who joined

Citizens
the

the

Assist¬
Assist¬

Director df the Imperial Bank

a

City,

Chairman of the Ex¬

to

New

A

Horsey,

liam

ecutive

Ih

was

of

at

Assistant
*

too, will

of Directors.
remain

Ivey

New

Bush-Salem

Appointment

active in the management
bank.
Samuel K. Rindge

elected

was

L. O.

Chairman

M.

ficers.

Board

-

Cashiers

Ernest G.

are

Gordon

President

Vice

&

G.

Phila. Inv. Women

(Special to Thl Financial Chronicle)

MINNEAPOLIS, Minn. —Allan
L. Goodman, Henry C.
Dietz, Ed¬

York State having a totaL
ward W. Hofmeister and Leonard
population of about 3,100,000, and
C. Laase have joined the staff of
distributes natural gas in areas in

Jr., Benjamin O. Lipscomb, Till¬
man
C.
McCamey and Guy P.
McClung. William R. Bradshaw

Savings Bank of Los Angeles at
the* organization
meeting of the

Directors, on Jan. 15. In
his new capacity, Mr.
Ivey will
continue
active
participation in

Of¬

Leo

advanced

Cashiers

Board of

the bank's affairs.

Ladd

were

ant

in

elected

Assistant

and

Assistant

bank's

and

With Waddell & Reed

the

Sammons, of the

Fuhrer

Vice-Presidents.

in

National Trust &

C.

ant

Chairman of the Board of Direc¬
Citizens

four

the

on

company renders electric
service to the public in an area in

Assistant

new

station

Watertown, N, Y.

The

Directors.

new

two

Jacob

Page,

Black River in

partnership in Shu¬
two Assistant Branch man, Agnew & Co., 155 Sansome
Street, members of the New York
were
announced
by

Managers

tors

of

of

hydro-electric

a

Bush-Salem

Vice-Presidents,

dent and

ft

Ivey

&

addition,

Assistant

Vice-President

of

Manager

the

are

announced

rector

Gen¬

Company of Portland, and D.
Eyre, veteran Oregon banker
who
recently retired
as
Vice-

of

ecutive

E.. C.

ber

D;

was

January.

Manager of the Dwyer Lum¬

Aikens,
R. W. Franson, Arch F.
LeQuesne,
D. S. Locke, John M.
Miller, J. J.
Murray, and E. L. Stone. Eugene
Cole

in

dir

W.

C. B.

were

and

held

branch,

and

shareholders

Vice-President and

the

gaard,

of

Dwyer,

Company—wholly-owned affiliate
of the
bank; H. G. Bunjes, Assist¬
ant
Vice-President, and B. R. Fox,
S.

National

rectors

Vice-President of California Trust

J.

States

Cashiers, two Assistant Trust

$

Thirty years of service with
California Bank, Los Angeles, was
completed

The

Bank of Portland, Oregon, elected
two new directors at its annual

231 So. La Salle St.

45 Milk St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

V

36

(808)

"

Thursday, February 19, 1953

The Commercial and Financial Chronicle

~

'

Continued Jfrom Jfirst

vaae

jm.

■<

«.

;

■

»

®®l:.

•

1'

*

W

J"

^

1

:

■

...

.

'
i)n^S
doubled
doubled. To

JnMition
a
PO«ilaio

w

more

than

lpng

story

short,

the

I

n

v

11

l,«t

m

holdin*

-JJ

ti'w g
international trade'

in all basic ideas,

wealth of the world.

the

It should

that

however,

noted,

com-

in

ditional

be

Like

there were adconcepts attached,, one

thing or another, but the essential

three

1948, largely under objective we pursued was patentimpetus of the post-Korean ly: to make the pound sterling
after

years

the

and the rest of soft currencies
in spite hard like the dollar,at some price,
of the declining foreign trade of of course—but still to raise them
fhe Iron Curtain countries.
to the level of the dollar's quality.
boom, commodity exports jumped

by

than 50%, this

more

In the first quarter

much spending and
of experimenting, we
was
are exactly where we started, or
rate of about the same as in the worse off, because not only is the
previous
year.
What
all
this global dollar shortage not cured;
means, essentially, is that world,? but in addition the world is distrade is not declining.
illUsioned, and so are we. From
After

of 1952, the
global exports
$19.2 billion, or at an annual

dollar

of

volume

so

seven years

as France tried last summer under Pinay—to their fate. Look, for

example, what happened at the
turn °* the year 52-53.^1 hope

_

that, it
makes possible the exports of the
countries which receive aid, being
provided
with
raw
materials,
equipment, etc. \
Beyond

...

There

For

quences.

indirect

also

are

example,

the

authoritatively

Most

new.

^ new line of policy has been indi-

provides makes

and should exercise controls over

is

There

inter-

real

no

The last thing MSA did was to

national trade possible—unless the tell the Dutch that since they had
type walking on crutches, with improved their balance of payimporters being skinned, unless ments and had gained gold, please
*** worId's currencies are being get off the wagon and don't ask
^stored ^ to convertibility of a for any more American aid. And
2enuine kind—iunless the respec- please do it voluntarily; othertive economic houses from which wise, we will put you off forcibly,
they gtem are cleared of domestic g
/.voluntarily „ they are

-k™
'

-

.

Let me insert

&nstJKJvsL."t
had improved their position, if

remark: all temporarily only.

one

o? maWn/tS?egS Trade ^se

imports, prices, etc. What the'

candidly

economists

ternational

try to put over in Europe is their r
philosophy that governmental inr
vestment always makes a greater *
"long-term contribution to higher
productivity" than private invest- '
ment does. Accordingly, they ob¬
j€cted streDuously to the fact that

?

-T*-

termination of the direction "of
investment"—listen to this—"Has

Nobody tells that to the British been left very largely rto indi-

the Flench or to
else vidual entrepreneurs Those with
whose position has worsened. At profits to spare have been allowed
^
t hTt
the moment a country's position to invest as they wish.
Just
,
' 5
J*7^7
improves, if accidentally only, it think: the wicked Germans let
nf=
£ets Punished. Pressure is put on their businessmen decide where to
a" Ilcldl
a"J it one way or the other. No pres- Put their own money. I quote
'
.J
fro hncou sure *s used when their condition again: "What is needed is a highly
restoration nf tho
worsens. Then, they are permitted differentiated policy" — differen.!£
c°"*er-- and actually encouraged to apply tiation is another word for SoeialWithoL hit 1 in 1™! Zi the most indelicate methods (I ism—"likely to involve a much
trade of a gen'uine sort can grow. was looking in the dictionary for greater degree of conscious eonThere can be onlv
lame duck a Pr°Per word,
and "indelicate" trol of the working of the eeo-

1

,

or

i^x^ndeidn°^ ,selj"s|J|P"

,,

.

onnvor

a

0f foreign

sorj.

wjth

trade

carrying

American financial aid

on

and

j.ts

gave

exporters.

nation

eVery

But

•

subsidized

almost

its

ex-

partners. Such methods are not
only permissible, but are being

nmnic system than has been the

practice since the monetary
form of 1948."
.
,

re.

.

than

other nation did in that

any

.

and with all those entrepreneurs

'Liraf

Germany last December, only in

a7d himself

dr^icwktheGermlswhileTt

^^e

77

Produc<;r;

.*

a

t of

,

dollar

let's

the

reverse

S'*

nrooess

P 1

lu

•

j

f lett ,°f

made

d. In other

efforts

orooer

an

ds,

educa-

than

more

at the

of Europe's Wei-

any

what

they

pleased,

she

brought her overall foreign trade

balance

into

equilibrium,

.

converted her EPU deficit
know

what

EPU

also

you

—

European

is;

Payments Union-into a sizable

surplus.
Ipt's

t

,

v

Now

for the Survey of 19ol,

as

what

«pp

offirial

thp

ppnnn-

rets see wnat tne otnciai economists say to Germany not follow;n0

thpir

"Tn

aHvipp-

where

Wp«tprn

the

eovernmen*

Germany, where the government

attached considerable importance

me,a,01far» ict s reverse tne process wor]d trade in the face of a world jVd
p ft
j ^■ -1 f
eauca
tn
PrPHit
neiiev
the
volume
aud bring the dollar down to the growing tremendously in dodu- ^icual method definitely not acworld's
cnrreneies
f fueiIienaousiy 111 P°PU cented in nedagoev I don't mean credit did not rise as much
,

of

,

,

as

-

f™re'exVo7™fro7an7her
Hew

Met

to

I

That is the real motive behind

The

^

Pereign Trade

ermanently

problem for foreign trade,
onW
nnf
inof
1
not just for 1953

iirofnro

but

for

the

next

period of economic
history, is this: Are we
going to carry international trade
the

on

^ ?ro ?saIs
t
^ the
convertible.

currencies

A

therefore, and

similar

prime

item

crutches

others

up,

others

would

you

is-

seven

the

There

or

eight years?

Number

are

One

three avenues,

to

is

we may
fhan^p
tho

in

need

though
to

of

course

the

devalue

too.

But

consider

only

one

thing to realize what devaluation

of the dollar would

mean

in terms

choose,

of international monetary relationships. It would mean that not

nattovn

nnlv

in prin-

ciple, from which
One

That

question,

tches.

program

suggested all over, is to devalue
the dollar. Obviously, this would
bring the dollar down, not the

aid, or is there any
to revamp the picture of the

last

the

terms,
terms.

eece and Austria.

*u

tThe other is the opposite

tho

nthor

r-i 1

rronoioc

lit

if

The third way is to carry on as
did up to now and see what

happens—wait for the day when
a change will become
mandatory,
short

period

of

presumably.

go, and

to realize the fundamentals of this whole situation, let me

formulate things in the most ele-

inentary fashion.

What

done

War

since

spend

some

taxpayers'
sqme

land,

World

$35-odd

money

we

II

have

was

billion

to

of

abroad,

plus
Switzer-

spent by Canada,
etc., minor amounts.

did

currencies, without the other
reneies

to try by

^

later
n

the
i

.

i

should

be

checked

WW There Be

a

one can
one

can

do the radical thing, but
also go slow, step
by

Qtotoorvi'inlir

the best

in

the

.Ir

1 <-.^1

nw,

world,

but

still

What

could make great inroads in
two or three years into the system
of crutches by gradually eliminating, reducing them without damage to

international trade and all

economies

involved,

nay,

to their

What is needed is not just reduc-

cur-

what the previous
tried to make them, as

Good and bad

ing.

Perhaps, as an
mist, I should avoid such

or

amount

keeping

low

the

total

of

foreign- aid; equally
important is that its method of
administration, the principles that
guide its distribution, should be
thoroughly revised. Let me bring

value

are

run.

econo-

them down to

words,

their

simplest de-

If you think

I

am

arbitrary in

characterizing
our
foreign
policy, its most elementary
pect, I shall quote

U.

some

aid

was

things the

N. experts are propounding
in Europe. I am quoting from

over

the Economic
incn

„„_i

:..

Surveys of Europe
inei

i—au

j

-

any

:

'

t

„j

nlpasp our

^

credit

the
tn

the

fact

that

is

1951

enn-

Survey

German

credits increased in
the

not

enough

1951

of

bank

by 30%

Keynesians

1

12%.

n

.

_

_

•

for

course,

They also
that Germany, iike Belgium
.,

de-

nf

'

iamented

That's

DOiicv

the

nroHiirtinn

f

goods"

sumer

The

'hamnerpd

havp

vplnnrnpnf

fied

of economic experts,"

Germans

h t
®

brain_trust

rose

group

the

words

fl

'felt
and

i

i

.

8% in Germany, and the

employment

_

un-

dropped

percentage
.

.

.

,

including Americans. An intellec- They also complained that "in
tually very influential crowd as Western Germany industrial
you Can well imagine
backed as wages have stagnated." Actually,
they

are

by

our

blessings

by the

German* industrial

payrolls

rose

10% in 1951, and nearly
15% irt 195ft. Fifteen percent one?
vo„
i,Par a
ro,inie "0f sentences
year>
another year—that's a
vor examnlenice rate of increase; even Amer-i
Tb
iQsn
Qurvpv
said
hlnnttv
ican labor unions would be satfh t TiPrm-v is suffering frnm
isfied with such progress, but not'
our generous economic "experts."
+hp
^vn„ncinn - tK
Uiey were critical of Austria and
J"®
France, too.- The 1950 burvey
p
ectors oi tne eeorKimywmen cbarged these two countries with
*lam«r of scientific economics and

the nrestiee of the U

N

about

I will let

a

government investment policy has excessive "financial caution",
50 'doflf nothrng to correct,
Erance> for one, took the advice
established: the qualitative equal- of administering our foreign aid
^
therefore the expansion and so jn tbe Survey for. 1951 she:
ity called convertibility, and a was to punish those who improve
Western . German , output is was biamed that her "expansionself-supporting International trade their economies and remunerate
k ^*
be permanently ham- 31^ credit policy* was a contribu-r
based on that monetary- equality, those who don't. You may* think ^ning; That was being tokl to the tory factor in a major inflation.%
But the- new ways proposed; to this is overstating the
point. Well, Germans in early 1951; also their The poor French apparently can
accomplish both, amount in real- such was the policy, implicitly at deficit at that time in the Euro- never- do right. First; they are

But

you

know what I

mean.

nominator.

-

The point is that which is to be

^specific. ex-* policjes will




0ther

...

for Europe, consisting of what is
called "probably the best quali-

Broadly speaking, the basic rule

-

,

,

1- d.onT

j

as-

this spend- ity to ruining the dollar by mak- least, and- partly even intention- pean Payments Union was taken
ing and by subsidiary encourage- ing it freely available to support ally. We come to the rescue of to show "The incompatibility be-ments, to bring the .world's cur-.the soft currencies; If carried out countries in a dollar crisis, but tween- the premature dropping of
rencles .pp to the dollar. By "up'V to any appreciable extent, these leave those
trying to raise them- collective- controls, over imports
we

"ance eas,£ ^ rapidly rising
^fp^S^^ernal trade"

those who make an effort to imProve their position versus those

/>nn

we

would have been required to .fi-

cnmP

Turning Point?

Nineteen fifty-three, and I am
not prognosticating, may be the
turning year. But how can one
"turn" this situation? Of course,

srood as the dollar. In other words,
the dollar has to become as bad as
are.

uiuch as we operate on the pnnciple of f?re,§n aid, there should
hp
Hicpriminaf inn
foxznr c\9
be some discrimination in favor of

who don't make sufficient effort.

being

seven years

might judgments.

we

or

_

available in exchange for other best benefit in the longer

they

To understand where

inflations

cton

way:

we

another

i

not the others equal to the dollar, bring about something better, and

cuirencjes

years,

sooner
i

absolute

in

and taxpayers relieved.

mil

o™

But look through the list of propto go in in a
big way as the world ositions — official, semi-official,
demands it—in a very big
way. and
unofficial—pouring in from
Change from partial aid to total Britain, France, Canada and the
aid, which is now called restoring rest. They all amount to the same
the convertibility of the world's
thing—the dollar should become

within

And

even

crutches will have to be discarded

perpetually bankrupt countries alone makes it equal to the others,
»m»

at least in relative

possibly

^

of American

or

of

ihe ^r^o^i^Tnton'ion^trade "o say toX gklfZ Zut
soft ^
tho^ P^«o» ihe
of a country the more
dying
should get but mas-

of the Commonwealth Prime Minicfnrc
nn/1
f K^
ruimkAy
isters, and the number one thing

way

same

*

lowest, next to America,;-

doing

„

oc

,

percentagewise, more than
America
or : Canada,
certainly
year,

rentage of his export proceeds for

thl Sing countries

fore exports f om another

7

Germany did not take the ad- *"
vice, but in 1951, after this report
came out, she enhanced her industrial and agricultural output more

fare States. She kept the rise in
prices and of the cost of living'

triangular trade

make further exports possible; in
anv Cdfce,
case
thev
create aemana
demand xar
for
any
uiey tieaie

investftiehts

management of

the

""

cated by the Prime Ministers of ports to a very large extent.
J
promoted by high councils and
the Commonwealth at their con-.
jn Europe and elsewhere, sub- representatives
of
the
leading
ference in December. More open- sidies of this sort, like permitting governments, including our own.
ly the new idea is being expressed the exporter to use a certain perThe
same
thine
haDoened
to

conse-

the aid
possible

*.: «-

inherited^ from the soon-previous
Democratic Administration.

scheme.

banks
eovemmente
or for selling them on the a milder form. Apparently the
cenjrai oai"KS> governments, ana black market at a higher than the MSA was a hit afraid to he too
such as, for «.«
Iofficial rate-meaning dollar example, Britain buying in Canada
in
The port Proceods
of course; direct wasn.t afraid to deal drastically
and paying with U S. dollars, and 'on »" 'be
^ading countries. The subsidies to the exporter; sub- with Holland Germa
as given
Caimda buying in turn from the
new idea
The dollar '
7 7is tax reductions,
,flscaI govsub" a neat little hint that inasmuch
U. S., whereby the total volume tneirs, is xne new iaea. ine aoiiar sidies, that
hpr Mnnrt(!
ahnvp har im
4sf world
world trade
tradp ris^s
mnrp
than in
in
has to be cured, not the sterling ornmentalized insnranrps a^ainct
s
exports are above ner imuses more
tnan
^
,
bluntlv
incc
u,^ ^?
a
f against ports meaning visibles and mvisiproportion to the actual American
i
e. ,
\ AO put
°
r
loss' a hundred kinds of subsidies
nnmhinpHwnnidn't
it
hp
=»id Mnrpnupr
inatsmiiph
thp
at tbe risk of exaggerating a bit: to nromntP fnrpicfn trartp
Tairp
Dles combined*, wouldnt it be a
aid.
Moreover, inasmuch as the
turned out to be imoosr
PromPte
foreign
trade.
Take
d id
t
t
resign as
counterpart funds finance produc« iturnea out 10 dc impos
off American aid and take off the f.A0
„®"J™
tive capacity in the aid-receiving s!ble
VJ5
vl0*!'
curren" open and concealed export sub- J.
. p.
a
wo
countries
nartiallv ai
at least
least thev
cies
UP
to
the
qualitative
level
of
sidies
and
_
what
£
lpft
nf
she
is
to
be
punished
for
having
countries,
partiauy
mey

America

and-machines."

jf you understand the lingo of

1944, and what then was watered
to
the
Bretton
Woods

nronosed
proposed

,

aid makes that much of American

exports possible.

quired to absorb idle resources of
men

economists, all this means Is that
tup <?nvprnment should take over
government should take over

Lord'Kevnes
Lord
Keynes

is wbat I found to be the most
suitable) of strangulating their"
incidentally, with the aid of world- imports. Indelicate, I say, because
wide subsidizing of exports.
We it means not just cutting off imsubsidized our ^exports 100%
by P°rts, but includes all kinds of
But the trouble is that it holds kere
on,
rationally, something giving them away, a large part of discriminatory tricks contrary to
its own largely because of Amer- new ought to come.
And Europe them, for nothing. That is the big- common sense and even to comr
lean aid. To begin with, American is
ready to propose something gest subsidy any country ever mon decency toward one's trade
.

*

that was
was one
one of
of the
the last*
that
last things
things

basis of the so-called reciprocity,
which is nothing but the "most

its

all other factors which affect

a

and'

^ tanl:f

favored nations clause."
That was the basic idea.

That is not much of

trade

to

pliment in view of the growth of

own

elimi-

to

barriers

extra

tariff barriers

international

r

about

J1

.

.

& c"ri"r,,d.ff^
U

making

bv

dollar

thp

in

un

.

take into consideration the

tirade

mpan

shackles

available, $76.7 billion, or three
level, was the total,

nhvsiral

the

t

o>

y

times the 1937

it you

of

make

by 1951
the
which,data are

latest full yearfor

T

rat~

,,

d<>wn

.

;•

decade earlier

■

-

in
in

what

w

■I--fAfl0 ISO KORIeulea

•

pos-

To dilute the dollar, that is all
there • is -to the idea—which is

-t

-

Iff

.

A*

'

.

,

IYllATIIAtlOHAl

«f«

1V®*®.,

m

-

'

-

,

,

jm

a global wave of inflation,
sibly of the runaway type,

'

* I

'

.«

ipeah !pn^:thing only: ->-selves- by their- own bootstraps-^- and-,

the^ internal expansion

re-

told that they don't inflate enough,'
and when they do, that's wrong,too^ Well, Lam not

going

©Of

but*

it gives you-art idea of the spirit.

that mspjred^our;^ foreign aid

yolume 177

Number 5196

.

The Commercial and Financial Chronicle

.

.

(809)

37

ley—which is the base of world ultra-nationalistic, Jprotectionist, there is a great deal of false idealtrade," .or; rather^ theerutch .of self-suff icfency-mindeid polities—, i sm/buried-rin jothexwise
hard- world trade.
/
Europe's
deplorable
resistance headed business heads. 'When I :
i.'
* aSainst a return to genuinely free read the recent speech of one of
m

^

I^ts,8w^mline_piir
Foreign
rroceoures.

exchange relations should be
derstandable.

un-

Breaking - up
very painful to

The

the

-

point is that if we go on barriers is
ecowith subsidies, we ought to im- nomic s t r u c t u r es. which are
prove a bit our pedagogical meth- thoroughly
entangled
in labor,
ods.
A thorough reform
of the farm and business monopolies, and
whole

dollar

situation

could

be

brought about by merely streamlining pur aid-procedures.
The problem today,

not;alone what
do. .The

however, is
would like to

we

problem! is deeply compli-

cated by the fact that Europe feels
sick and tired of the present sysunder which

tern

freely

as

the

they cannot act

they please. Little as
to American

as

strings attached

aid

amount

amount to

think, they
lot if you look at the
to,

a

we

deflationary

a

their

whole

cultural

readjustment

industrial

planning

and

would

of

agri-

become

imperative.
Germany

a
longer way
other European
country to do just that, but Germany came out of ruins. The lead-

than

went

almost

any

ing

agricultural pressure group
having
been
eliminated — the
junkers in the East!—and the entrepreneurial group
its standing because

having
of

lost

its

early

strings from the other side.

They

"footsie-playing" with Hitler, the

don't

scru-

Adenauer

Congress every year or
often, and to being told all
unpleasant things in Con-

overcome

like

tiny

be

to

exposed to

by

more

sorts of

and

gress

the

Especially,

press.

they do not appreciate the

arma-

ment-strings attached to our generosity. Also, they want to be put
on a permanent footing.
The idea
is, as I said, to bring the dollar
the

to

sterling,

pound

sterling

using

the symbol of the

as

the

non-

dollar

currencies; it is, of course,
far the leading one around

by

which

the

other

reaches beyond the

1953, you
closely Germany's
development, which may be crucial for Europe, given her vital
should

year

importance.

Already,
the
skyexpansion of her ex-

rocketing
ports seems to have come to a
sudden standstill, largely because
of the restrictionist policies of her
neighbors.
*
Even

serious,

more

of

propositions. In that
context, let us realize what some
people are inclined to forget, that
the hew President is Eisenhower

and

threatens

has been

if

thus

I

"We

quote:

in

help restore
convertibility if the

rency

current

account."

What

rhythm

the

as

Dean

Hard currencies don't

soft hearts.

not

World

that

000,000.

win

Socialists

Western

the

it in

letter

a

cable

or

plan

tion—to

tional trade, even though it does

Year's

so-called

day
His

auer;

to

wouldn't

him

to

Europe

must

it

as

Aden¬

was—and

and

the

pick

up

unite,

and

rearm,

expensive
danger is that

are

very

programs

will

we

the bill.

Europe
still

is

expect a man like
change his mind —- that

you

Both

Chancellor

idea

less

that

bureaucracy.
for their

power

doesn't want to rearm,
unite, unless our aid

to

The

call,

a

to

over

the

They want the

U.

that

German
all

•

Socialists'

major

idea

business

units
effect, by the

They are not capable of financing
major armaments because they

agine what that will do to German

cannot combine them with the

shall

so-

trade

be

run,

unions.

in

You

business and German exports. We
have

another

•cial expenditures and related bur-

hand.

<lens

co-determination

already carrying,
they are barricaded
toy internal and external obstacles
they

and

are

im-

well

mav

The

fellow

big invalid
who

was

The

is

should

a

on

invented

He was the chief of a steel plant
in the Ruhr, who under the early
productivity occupation sought alliance with the
and cost reduction. It would take trade
unions, he himself being in
rpvpmninor nf thpir r>ol itim-erntUo
urith
a revamping
of their politico-eco- the
"doghouse" with the occupa.nomic
systems to restore their tion powers while the trade unions
solvency. Such revamping is prob¬ were the pet children of the Brit¬

in

progress

tl

.

.

_

,

of the

follows:

as

St.

Louis,

Mo.: May

7

11, 12, 13;
Jr., Reinholdt
v

Russell E. Gardner,
Gardner

&

in charge of arrange-

ments.
T

™,io

nio

trw

WYr" J
v

•

c

jS

id

t

t

is

'uii

n

t'

-

ia-

\

liar(* & bon' ln cnar8e ot arrange-

ments-

ing

political impossibility.

a

But

without restoring the convert*u

Tthihe
3id 0f !a„b01'
stop the demontage of
Also,

European Unification

ish)

Meaningless Concept

it is-a meaningless
be

easily

concept,

as

it

proved,
without
unified on

currencies being

their
the

that

denominator,
into

same

convertible

made

one

to avoid nation(promoted by the Brit¬

by

offering the trade union:
drop your nationalization
plans, and I'll promise you that
my
plant will be run half and
half by you and me." That's where

is,
an-

the

unions got the idea. Let that
a
lesson to businessmen who

be

perijence of the EPU shows, it is

willing to make pacts with the
Socialist devil, figuring that at the
next turn they can outsmart the

useless

devil.

•other and into dollars.

to

As the

ex-

monetary

ar-

rangements and leave out the

one

currency

try

any

But

devil

is

usually
stronger than the entrepreneur.

,f

needed

is not

desirable than

more

Union

would

reduction

stantial

a

Euro-

a

a Utopia, no
Pan Ameri-

be,
of

but

Problem

of

you

the

dollar

bar-

our

If

how much resistance
in this country against

is

reducing the tariff, against tariff
cuts

which

would

not

mean

any-

thing compared to what European
vested

tuted
more

would

interests

multilateral
after

than

trade
more

20

suffer

were

than

years,

a

decade,

really,




if

reinsti-

of

to

the

reorganizing world

trade

realize

there

of

back

better than

standard.

lion

mark

United

,

Mnr(?an

fio4

Cn

Soilth

Spring Street, members of the
Los Angeles Stock Exchange.
.

With

Shearson, Hammiil

(Special to The Financial Chrunicle)

have

become

Shearson,

affiliated

Hammiil

with

Co.,

&

348

Fast Green Street. Mr. Banks

was

previously with Quincy Cass As-

and

With Gray B. Gray
point,
trade

stop-gap fashion.

in

a

are

favorable

that

a

approach might be
bear on the problem

to
international

trade

—

not

the

kind of approach represented last
fall by a study corning out of the
State
Department
and
arguing

that it is

now

with

It's

business-like

of

bott is

Colo.—John

L.

our

responsibility to

pro-

vide
the
climate
necessary
for
American investments
abroad—by

the U. S. government fully guaranteeing them. But unfortunately

He

and

,

was

Service

life

the

first

time, the

•

o

j

Savings

t

and

Loan

Clements, disclosed

savings
savngs

insurance

way,

Gray B. Gray &

association*
associations

on

and
and

leading

companies

DENVER,
Phelps

Jr.

'

are

Jacob
A

,

Grant Street.

in

J.

F.

Quintis

uo

Corporation,

^ti,

leading

time

the close of 1952,

n

Mutua,

an

deposits iby:
increase of

near*y ^4% front

the end of 1945.

t"«

■

savings

banks

showC(J

increase in savings of
$7,218;-t1945 total

000,000 or 47% from the
of $15,332,000,000.

r»j;

•

.

The am0Lmt of u- S. savings

,

boncjs
he]d
by
individuals and
others also continued
upward, al-

though at

this

Statistics

year.

compiled

20.3%

by the League's financial research
department

revealed

...

the

principal

with

the

that

all

a substantially slower
during World, War IE

media

savings

seven

one

or

1945.

npta61e decline

among

oingSu-mifdja
was,il} p0stt?2 ST"
dropped from $3,013,-

mgs which

exception of postal

the

from

TJie

of

.

—

sav-

gains

from

years

000,000

at

the

$2,535,000,000

This

year-

1945

close

the

at

was
+

of

1945

end

of

A

,

pointed

tremendous

to

last

decrease

a
■

Clements

tbe

out

savings

of
*

that

upsurge

Savings associations, which held

since World War II took place id

$7,365,000,000 in personal savings

the face of "a considerable body

at the close of

1945, enjoyed

rise

a

of

expert

Of $11,635,000,000 or 158% during

were

the next

seven

mulated

in

taled

an

the

start

sented

ac-

sharply after the

to-

he

of

by

surance

savings

accumulated

reserves

509,000,000 to

an

000,000,000 ?at

a

was

an

rose

repre^

life

from

in*

$37,-

estimated $62,-

the

end

of

increase of 65%;

were

substantial

advances

on

have

postwar

housing

plained

that

measure

across

445
*Time

^

Savings
Companies

U. S. Savings Bonds

Deposits.

the

sparkplugged

boom.

savings
new

He

have

ex-

been

construction in

by savings associa^-

the country.

*

Increases Over 1!>45

1952

Amount

Pcrcentago

158.0%
47.1

$7,365
15,332

$19,000
22.550

29,929

40,015

$11,635
7,218
10,086

3,013
37,509
48,183

2,535
62,000
57,950

•—478
24,491
9,767

$141,331

$204,050

>

Savings Banks—

Life Insurance

great

of Dollars)

1945

Savings Associations

Postal

and

Savings by Media from 1945 through 1952
(In Millions

Mutual

of the prin-

In the field of housing, he said.
savings

tions

Table of Statistics

one

claims.

estimated $40,-

an

has Ibeen

high business activity

large

peak of

"In fact,''

economic expansion, Mr. Clements

Commercial banks had touched
new

war.

reverse

The big postwar bulge in,

funneled into

scored:

savings

downward

cipal factors behind the nation's

1952,

Among the other principal savmedia,

true."

"the

savings has been

1953.

the

said,

that

turn

to

Savings

estimated $190,000,000,000

Meanwhile,

opinion"

clue

institutions

years.

these

^Commercial Banks

w amiiatecl witn Hamilton

Management

015,000,000

an

Hi

have

1952, with

companies

—Savings Held—

Colo. —Horace
and

savings

iVi.niut

Pace than

Type of Savings Media

Mange't

.

always
Coolidge

close of

to

insurance

1945 to! the close

Corporation,

(Special to The Financial Chronicle)

y'

'/Ml

not

estimates

savings climbed nearly

formerly with Investment

2 With Hamilton

if

*

-

up

of

also

■

.Mir:

Chicago date line.

is&ssr.irr^
$204,050,000,000 at the beginning ssvssssssv»
950,000,000,
$9,767,000,000

Tal-

Co., First National Bank Building.

baby.
Prospects

brought

DENVtE'R,

K"

present-day Cal?

League

through its President,

the

ings

(Special to The Financial Chronicle)

we

Loan

8.

This

sociates.

record1

a

making.—A recent
a

nearly $63 billion from 1945

for

life

at

PASADENA, Calif. — Norman
M. Banks and Dudley R. Urban

spent

»

associations

States

With

Reorganizing

being faced with the problem

sub-

Tiers, that in turn presupposes the
to the gold standard or ot
to

Coming
are

a

xeturn
least

Leroy

sta11 01 morgan fit,u>.f m &outn

World Trade

Union, which is

—

'in

The current trend

'

Savings of the American public

•

The

lar.

can

the

which is the common de¬

What is

'

are

nominator of all of them, the dol¬

pean

ANGELES, Calif.

"You

As to the unification of Europe,
•can

.

hoped

he

alization
—A

his

'

during 1952 passed the $200 bil-

(Special to The Financial Chronicle)

LOS

Union

record is in the

new

through 1952.

*? H.^Darflhas*'been "added to"the
plant.

—

ability of their currencies.

Morgan Adds to Staff

in

the way.

in

ish forces in the coal-steel district.

in the

ings—registered impressive

An/iimo-

ably

states

Savings

savings

Feb.

.

„

a

Association of Stock Exchange
Firms will hold its 1953 meetings $63 billion from

because

against

of Governors

Board

.

radical.

no

S.

increased

To Meet in 1953

representatives.

$575,000,000

Public's Savings Exceed $200 Billion

Charles L.

Exch. Firms Govs.

in these 26 states

of

in the 'Twenties. Where is the

League,

bureaucracy;
brings it about

spade—on new and quasipermanent dollar foundations,

spade

to manage it out ot the mess,
which cannot be done over-night.

with

to $57,-

up

successful

statistical terms.

in

are responsible by having
managed it that way, and we have

We

by loading the managements and
boards of major corporations with
union

foundations—let's

a

not yet look so

states

battle fought
by President
against extravagance in state and local governments

crisis of interna-

a

own

co-determination

is; not only substantially enlarged
new

it

is

the unions'

away

hands

and

The

recognize

nationalization

failure; it takes
state

It is the

unions

trade

British

power

steel.

and

co-determination.

German

—but the European system based
on

coal

This is

expansion

Many will remember the valiant

responsibility for the international

™ss.

48

.

coming
will

,

And, in the five

$13,000,000,000 in 1951.

'

011 short notice
radically
departures. Let's not be die-

^"costs'i.i eliminatecompeti-

the,H. Hjj

years.

stand, increases add

now

Associated Press despatch under

Realistic guidance must be

Ridgeway at Christmas-time, and in a letter after New

General

to

net

a

the

indicates

Germany

which is exnected to "eoual-

All

,

■

He expressed

be

total of

hards who declare that we must
not &*ve a cent any more, although
become the playground of a new ^hat perhaps would be the right
and not Taft, and that Eisenhow- kind of
equalitarian experimenta- thing to do
theoretically. Let us
er's butlook on the situation is
tion, already applied—under the he aware of the fact that our own
very different from that of Taft. protective shadow of the Schuman Past policies carry a great deal of
the

elections,

most0

spending.

aPP*y
new

year or two

Thus, the overall result

would

is

us

r

still,

spending in

proposed decreases, the reductions add

much help, as rather guid-

so

budgets

a

:

to $632,000,000 in the 21 states in which rises

have been
suggested.

What the

needs from

period—either

As the stated

However, what we need is not
emotional phraseology, but real-

Western

recommended plans for

Vjor*

to

the budgets

being prepared. These budgets for the

up

himself,

grow out of

found

was

cases,

are

a

istic action.

states, there

in most

or,

were

reminds

Acheson

change

18

states and lower in only
l
V •
;

i.v

part,

sentences

just quoted,

one

of

one

such

of

other

next fiscal

beautiful definition of convertibilRy; ft is achieved when the currencies are convertible! But logic
and diplomacy aside, the disturbin& thing is the "must help" argunient which we have heard so
much that one is inclined to yell
f°r helP against the Must-Helpers,
The

the

little

-

*-

•

at the 44 state

meeting shows that

are

higher than the previous fis¬

are

period estimates in 21

In

are

"conservative," i.e., it must not

1948

cal

five..

eco-

nomic systems of free nations

by the Associated Press

survey

proposed budgets

to be integrated, if the^productive '
power is to be consolidated, and
if we are to present a united front
to Communist imperialism. In my
opinion,
convertibility
will
be
achieved if and when currencies
are freely convertible into dollars
on

A

capitals where legislatures

cur-

ance-

all

-

this

must

Germany

annul

to

fan

country

Socialism

accomnlished since

V

:

anything very concrete, he has a
way of saying it, which, is about
along the lines we have followed

watch

raises its vicious head in

We shall be up against quite a
number

interests for the time being. Incidentally, if your own curiosity

currencies

soft

be grouped.

to

are

regime
was
able
to
the vested protectionist

our leading, bankers, I grew a bit
worried. Although he-doesn't say

-

33.7

—15.9
65.3

20.3

•»,

*

38

(810)

The Commercial and Financial Chronicle

H.

Economists Urge Return to Sound

Securities Salesman's Corner

fine

Part

—

"Your First Call On A
You

have made

now

ment

appoint¬
telephone.
You

the

an

A

1)

is

client?

a

A

What

moment.

a

client

is

someone

people don't have

and

If

idea of the

any

speculative common stocks.
develops that your prospect

it

who trusts you, who comes to you
for advice and guidance, and who

already holds securities show him
the ups and downs of the market.

gives

The

has

his business because he

you

this

all

Dow-J ones

Averages or any
other long-term market chart will

important feeling of
confidence in everything that con¬ clearly illustrate just where we
cerns his dealings with you.
Isn't are today in relationship to the
that something very worthwhile past.
If you go over this chart
which

for

tions

strive

to

with

in

fellowmen?

your

Not

all customers will be clients. Some

people do not wish to

rely

upon

others

for guidance, even in the
specialized fields of activity such

finance and their investments.

as

But there

ing such

are

many

who

seek¬

are

him

with

rela¬

your

him

let

see

himself

for

that the market has gone down as
much as it has gone up over the

Briefly point out the major
turns in the
market, then point
out where we are today. Next let
him tell you just how things look
years.

him.

to

Build

up

forceful

a

pic¬

relationship, just as you ture in his mind that there are
seeking them. This times when certain moves have

a

likewise

are

then

the

is

mental

to

be

in

made

investment

attitude, the
approach
you
should
always
maintain when you are cultivating

count, if capital is to be preserved

both old customers and

common

new

pros¬

pects. With this basic approach to
your thinking you cannot help but
succeed in your work.
The rest
depends upon making the calls
and

doing and saying the
things when you meet your
pects.

have

limit

the

that

sure

If you promised to

10

minutes

be

after

you have talked
length of time that

for about this

look at your watch, then say,
"Mr. Jones, I promised you on the
'phone that if you preferred it I

you

would limit my call to 10 minutes.
Ten minutes have now
transpired,

and, if
we

wish, I will leave and
continue this discussion at

you

can

another
to

time,

or

will it be alright

continue

for
a
brief
while
You will find that in al¬

longer?"
most

every instance you will be
told to go ahead if you have ob¬

tained your prospect's interest and
attention.

is

event," not after.
Ask

Then

won't

establish

you

a

be

sideration;

mentally closer to

your

prospect and he feels that he too
is part of the "act." Think this
out

which

develops when

anyone tries to sell another
person

anything.

You build up

barrier of
—

defense

you

a

when

lower

that

natural
you

try

your

prospect's mind the things that he
only hazily understands. But you
must first clear the decks
for

fidence. Sitting together at
at

a

his

ex¬

desk in

an

a

office, is

con¬

helpful in creating confidence and
lowering resistance to your ideas

If you

Chart of the

Market

living in 1953 at the
very top of a long 12-year infla¬
tionary cycle you may agree that
are

a sound investment
program pre¬
cludes having too much
invested
in

highly speculative

stocks.




Most

the

store

gold

statutory

standard

rate

of

$35

of

fine

of the

statement

profligate

and
I.

obtain

rency,
we
the
members of the
tional

55

Economists'

make

on

New

devaluation

the

of

It

Na¬

store

and

to

tD.

and

the

tration

should

in

our

gold

$35

The

volves

statutory

debt;

of

rate

whether

and

Federal

and

may

is

functions

the

Treasury is both

of

Oct.

29, 1952, the ratio of

gold stock

to

fiscal

University

C.

The

Interest

rates

should

be

mitted to find their levels in free

6.0

to

9.9%.

States
in

7.9%; the range

When

resumed

January,

the

gold

1879,

United

redemption

the

ratio

was

duce

The

United

States

unilateral action in

should

take

returning to

The

frequently-expressed

tion

that

to

must,

or

at

rates

assump¬

which

nonbank

investors

in¬

to

II.

Editor,

The

S.

Seton

that

you

analysis

make

can

based

upon

a
complete
whether or

not he:

(1) has too many specula¬
at this phase of the
market
cycle, or
(2)
sufficient
buying power for possible better
tive

stocks

opportunities at

a

later date.

Tell

him you would like to come
back
in about 10 days with the com¬

pleted

study.

Make

appoint¬

an

so.

(To be continued next week)

conform to the lack of
capacity of
the weaker nations in the
group

handicapping

the
aiding the weak. All nations

E. Tut-

wiler has become associated with

Co.,

Inc.,
Mr.

135

South

Tutwiler

La
was

formerly with Barclay Investment
Company.

are

spect

Sills, Fair man Adds
become

affiliated

for
to

concerted

action

contention

a

that

he

must

by

is

analogous
drug addict

a

not

abandon

his

drug until all leading drug addicts
agree to the procedure. The argu¬
for

concerted

action

is

an

for futile

or

*

"

a

sumption
rest

of

precedent

necessary

of

re¬

redemption does not

fact.

upon

to

The

10.8%

ratio

our

gold stock to money and
deposits exists desoite unbalanced

Sills,
Fairman & Harris, Inc., 209 South
La

Salle

Street,

members

of

volume

the

Midwest Stock Exchange.

the

Federal

budget
further
and

(Special to The Financial Chronicle)

with

111. —Forrest

Hunt

of

tend

to

of

balanced

prevent

of

a

currency,

contract the sunply,

gold stock.

our

con¬

much

A

expansion

it might

in¬

currency

debt.

would

against

With Uhlmann & Benjamin
CHICAGO,

our

sequent monetization

reasons

is

of

others

among

For these
a

balanced

budget, combined with the elimi¬
nation

of

unnecessary

expendi¬

tures, is highly desirable. But bal¬
anced

budgets do not necessarily
Board of Trade Building, mem¬ prepare the wav for resumption
bers of the Midwest Stock Ex¬ of redemotion. For example, be¬
ginning in 1866, under an irre¬
change.
Uhlmann

&

Benjamin,

deemable

budget

Royden Morris & Co.

Royden
den

Morris has

Morris &

formed

Roy¬

Co., Ltd., with of¬

fices at 510 Hornby Street, to en¬
gage

in

the

securities

business.

James Mcllraith is associated with
the

new

firm.

for

year

Formed in Canada

over

demption
1879.

a

A.

PARKER,

national
central

not

Federal

and

1948.

cause

or

move

surplus

decade.

budget

a

but

re¬

was

surnlus—in

that

invite

toward

every

But

fact

anv

-resumption

did

adequate

a

of

re-

to

gold suoplv is

suoport

redemption,

then resumption should be under¬

Bank

clearing
of

of

be

'

W.

as

for

the

the

H.

including those not
fully redeemable gold

the

currencies

value.

Yale
«R.

MURRAY

demands

facilitate
of

clearance

firm

reduce
for

eventual

narities

redemption

in

of

the

cur¬

gold

,

TIPPETTS,
Academy.

State

J.

University.

WEBSTER,
International

College.

WIEGAND,

Mississippi.

of

F.

WILLETT,

College.

WINKLER.

Bernard,

&

Winkler

Co.,

Y.

N.

'Reservation

as

to

Part

la.

Reservation

as

to

Part

lib.

^Reservation

inter¬

\

TRANT,

University
Smith

■

'

STONESIFER,

College.

S.

American

•

national

College.
R.

B.

CARL

i

.

STEINER,

Mercersburg

EDWARD

Business

Illinois.

Florida.

H.

Louisiana

proposed

*

University.

Union

JAMES

Small

American

Chicago,

SPAHR,

Brooklyn

•

..

SHIELDS,
of

E.

JGILBERT

'

C,

SHAW,

of

York

New

Mt.

Y.

N.

SAXON,

W.

University
WALTER

clearing house.

should

Pacific.

Oraanizations,

EDWARD

International

.

;

ROBINSON,

HARLAND

Conference

MAX

rencies

X

.

University.

monetary conference for the pur¬
of establishing the

■

j

t

Street,

GLENN

OLIN

G.

international

'

REUSS,

the

of

REX

Beaver

(b) That the United States gov¬
ernment
call
an
international
pose

,

RITTER,

College
76

of

standard, be cleared at their gold

G.

College.

'CHARLES

that

-

Iowa.

POTTER.

C.

LELAND

with

world,

California.

of

"

•

nations,
a

University

University of California.

inter¬

an

all

on

of Southern
PHILLIPS,

A.5

State

Gaucher
O.

I.

.

PHELPS,

'WILLIAM

house

Pennsylvania.

Michigan.

of

University
The

de¬

provisions

§ Numerous

II.

Part

to

as

C.

reservations.

and

establishment

based

uoon

gold.

The

free

at

their

With McGhee & Co.

full

(Specir.l to The Financial Chronicle)
"

exchange

gold

of

values

exchange

currencies

should

of

throughout much
able

Burford

has

services

McGhee

&

up

and

or

most

of

the

provide

a

renewed

of freedom in contrast to its

constriction

Ohio—Anne

joined

the

Company,

G.
of

staff

East.

2587

55th Street.

prospects for profit¬

business,

sense

CLEVELAND,

the

open

goods

world, revive

under

!

With Wm. J. Mericka
(Specipi to The Financial Chronicle)

exchange

!
_

•

con¬

1

•

trols.

and

give

new

life

spirit

of enterprise and
responsibility.
With

the

tWoir
end

clearing

clearance
gold

of

v^hies.
for

reasons

Interactional

to

of

house

currencies
the

the

personal

establishment,

international
the

an

for
at.

CLEVELAND, Ohio
M. Barnes has
Wm.

staff

of

Inc.,

Union

members

of

—

Margaret

been added
J.

Mericka

Commerce

to the"
&

Midwest

the

Co.,

Building,*
Stock

Exchange.

functions

existence

Monetary

ot

the

Opens Own Office

Fund

(Special to The Financial Chbonicle)

should be reexamined.

HAMILTON, Ohio—Mrs. Louise
WTUJ/inn
'

nation's

the

official

demotion.
When

of

Settlements

banks

of

PATON,

CLYDE

transactions

veloped and utilized

Federal

not instituted until

was

Our

a

balanced—vielded
1947

the

currency,

yielded

division

then

The common contention that the
Federal budget must be balanced
as

ing

International

MURPHY,

University

by one,

one

cluding that arising from the

with

current

stronger na¬ between members, we make the
put their own following recommendations:
currencies in order. The argument
(a) That the international clear¬
tions,

total

CHICAGO, 111.—Joseph E. Teder
has

to

served best when the

Lumbard

University.
NIEHAUS,

University

W.

has

eliminating

Newton,
C.

University of Colorado.
MELCHIOR. PALYI,
Chicago, Illinois.

accom¬

Fund

Y.

N.

'FREDERICK

not been successful in

budgets, and it exists against the
(Special to The Financial Chronicle)

been

the

,

international conferences.

(Special to The Financial Chronicle)

CHICAGO, 111.—Robert

not

since

foreign exchange restrictions and
action, thus establishing a satisfactory multi¬
strong without ple system of payments with re¬

argument for inaction

Blyth & Co. Adds

has

and

selected for concerted

ment
:

plished,

and

C.

Hall

R.

Fund

assumption
nation
to

Y.

McKINLEY,
Pennsylvania State College.

tary

an

Commercial

N.

H.

AUSTIN

FRED

The

Leisure,

Irvine,

stronger

the

LINCOLN,
DeUnvare.

MAY,

MCDONALD,

Such

securi¬

E.

Chronicle,

W.

compels

his

Mone¬

Illinois.

Financial

basis in fact.

of

resume

ties, his mortgages, savings ac¬
count, government bonds, etc., so

International

University.

KEMMERER,
of

Donovan,

-

the

L.

Executive

FRANK

exchange
stability,
maintaining
orderly exchange arrangements,

Wesleyan

WILFRED

ROY

ab¬

Since the purpose of promoting

College.

Wilmington,

it.

sorb

Uni¬

A.
JACKSON,
State College.

§EDMOND
A.

per¬

would

Ad¬

Methodist

HOBART,

University

and

a

redeemable currency, thus setting
a
good example for other nations.

Illinois

The major portion of the shortterm
Federal
debt
should
be

funded

•

Business

of

Southern

KAUDER,

DAVID

6.5%.

H.

Point

jDONALD

en¬

markets.

was

;

THOM

FREDERIC

en¬

serve

III.

HOLDSWORTH,
University of Miami.
HAROLD HUGHES,
....
N<>w Mexico Highlands
University.

be

(pre-1934

computed from re¬
vised figures of the Federal Re¬

Board,

High

A sound program for demone¬
tization of the Federal debt should

for

average

1915-1932

Ridge,

versity.
GEORGE

Morgan

the be developed, and it should
data), pursued in a manner that will
was
8.6%; the range, 6.7-10.9%. courage, not depress, business
The average for the same
years terprise.
10.8%.

was

years

ministration,

EMIL

our

J

-

.

Park

F.
HAUHART,
Emeritus, School

Dean

The

the

California.

Southern

HAAKE,

WILLIAM

the

de¬

*

.

Texas.

American Institute for Economic Research

JOHN

of

of

P.

of

Consultant,
HARWOOD,

by

and

agents

proper

'

FITZGERALD,

University
L. GARIS,

Economic

gov¬

of

University.

FICHTNER,

sirable.

and deposits

money

of

of

Tarrytown, N. Y:

Inc.,
FAIRCHILD,

R.

Y.

E.

,

*

.

University.

Co.,

N.

Federal

banks

.'

ELLSWORTH,

Axe

ALFRED

States

performance

Reserve

>i

,

C.

ROY

indefensible

an

The

should

institute redeemability is
adequacy, in the light of ex¬
perience, of its gold supply.
As

of

monetization

debt

procedure.

consideration

nation

a

monetization

ernment

ounce.

controlling

to

as

the

at

fine

per

take

J-,

Florida.

ANDERSON

The

Treasury. Integration of fiscal and
prompt steps monetary affairs of necessity in¬

currency redeemable

of

Buffalo,

(a) Congress and the Adminis¬
to make

S.

DOLLEY,

CHARLES

re¬

inde¬

United

DEMPSEY,

dolbeare,

Young

W.

W.

FRED

Monetary pendence of Federal Reserve bank
policy from dominance by the
President

W.

b.

C.

Brigham
S.

an¬

United

the

"

Maryland.

Univers ty of Texas.
WILLIAM F. EDWARDS,

steadfast

maintain

'

CRAWFORD,

The

government to

our

W.

'JAMES

"J.

of

purpose

the

be

!

Delhi, hid'a.

Yule

should

Cincinnati.

Chase,

University

spend¬

domestically in behalf of

(c)

the following rec¬
and observations:

ommendations

government

.

.

CALHOUN,
of

garwood

States dollar.

cur¬

undersigned,

Committee

Policy,

sound

a

pressure oper¬

Our government should be

other

To aid the people of the United
to

a

'

BRADFORD,

BERNARD

give

a

A.

P.

Chevy
REV.

HELEN

you

BOGART,

University.

ARTHUR

cur¬

deaf to all arguments from abroad

fol¬

lows:

States

Resumption
nongold

ing and unbalanced budgets.
(b)

text

of

ating against the long continuance

ounce.

The

balanced.

constitutes

rency

the

at

per

is

redemption

the

of

VANCOUVER, B. C., Canada—
a

budget
of

r

Insurance

CARPENTER,
University of Kentucky.

bers

and suggestions.
Show

Committee

whether

—*
'

Life

C.

CHESTER

table,
very

Lehigh

and
avoiding
competitive
ex¬
change depreciation among mem¬

barrier

when you ask another to sit
down
and look at his problems
and their
solution with you. You are in
this
first interview to
clarify in

L.

WILBUR

of

Oxford, Ohio.

Delaware.'

York 'City.

New

FREDERICK

restore
redemption
should, be concerted
action by leading nations has no

work out

tension

ERNEST

CECIL

regardless

-

L.

Wilmington,

there

step in any relationship be¬
tween buyer and seller (if it is to

or

him

if you don't
agree that the

comfortably and cooper¬
atively) is to eliminate the feeling

Co.,

about his age and his health, about
his dependents, then ask him to

first

sell

Ask

you

for capital gains

or

Salle- Street.

to

questions

to

clusive of all other considerations?
Write down the answer. Ask him

Blyth &

of

wish

not

offended.

brings

see

does

of the

friendly, conference, attitude.
Placing two people around a table

and

Mention

in investing: Is it for in¬
come; for income and safety, with
capital growth as a secondary con¬

to show him some information and
it will be more convenient that

you

questions.

any

National

Monetary Policy, and signed
by 55 of its members, urges Con¬
gress take
prompt steps to - re¬

purpose

a

By doing this

ask

BENEKE,

.

BENNER,
Continental
American

■

taken

the

(1915-1932),

Questions

prospect

your

table in the room,
ask to sit there together with
your
prospect.
Mention that you wish

way.

decline

ment then and there to do

Set the Stage
If there

to

not protect capital.
Certain
changes must be made "before the

answer

established

call to

your

start

that the information you need will
be held in confidence and that if

time—you have made the appoint¬
ment over the telephone as we
suggested in the previous article
of this series.

To wait until after

stocks

right

Time and Place
now

ac¬

will

pros¬

A Good Interview Rests Upon

You

an

and protected.

issued by

on

Prospect"

your

Think of this for

statement just

Economists'

way
their securities are distrib¬
first initial uted, nor of the percentage they
in
step
toward the
goal
you
are hold
cash, good bonds, preseeking—that of creating a client. ferreds in addition to investment
over

have established

ounce.

H.

Miami 'University,'

CLAUDE

University

BUILDING AN INVESTMENT CLIENTELE
6

r

Fifty-five members *of Economists' National Committee on
Monetary Policy say Congress should take prompt steps to
make our currency redeemable at statutory rate of $35
per

By JOHN DUTTON

(Article

Money

Thursday, February 19, 1953

...

W-ill

jAA/rcp-

e

Wi~ Jr

B. Joyce

ATKtNc5.

HELL,

ties

business

South
DOTtcit.A<3

Boston

tt

is engaging in

a

securi¬

Htj

W A«HIN"^TOK

wpt t

EMORE,
University.

D

from

Street.

offices

Mrs.

at

Joyce

350.
was

Volume 177

Number 5196

.

The Commercial and Financial Chronicle

..

(811)
Continued

from

7

page

corresponding

the

to

1926. industry spend huge amounts di¬
rectly or indirectly for armament.

years

1927.

or

It is correct that such
Business Cycle

Prosperity by Inflation
almost. total

an

whole

tne

over

inflation

with

of

stability

—this

period the credit

called

price

twenties

the

the

probably biggest
tionary crash of all time.
Thus

"neutrality"
be

cannot

of

monetary

for

every

or

noc

of money inflation on

this

the

whether

the

above

trend-line

profit-margins
flation.

It

increased

the

whether

by

in¬

irrelevant

be

must

increase

has

come

about by higher prices with costs

stable

remaining

lower

or

costs

with prices remaining stable. The
latter is just what happens in the

"inflation

of

case

tion."

Costs

creased

through

productivity

factors—at

tion

have

not

fully

to

of

in¬

produc¬

until

least

these

adjusted their demands
the change.

remain

infla¬

without

decline

stable

prices

And

demand

because

by inflation prevents
from declining in accord¬

expanded
them

with

sinking costs.
"Inflation with price inflation"

ance

must at some time come to an

in

end,

"Inflation
without price
inflation" can no
more
go on forever than "infla¬
tion with price inflation." A credit
system cannot expand indefinitely,
one

for

if

other

no

cause

than

reason

be¬

stimulus exhausts it¬

every

self

another.

way or

inflation

When

The

only

unsalable.

become
Depression sets is.
Production

Greater

and

Higher

If

is

this

the

correct—and

ex¬

the

prove

ment—then

also

gument that

a

and

of the state¬
the popular ar¬

accuracy

higher bank

money

circulation is justi¬
made innoxious by high¬

currency

fied and

way

is, how¬
wholly sub¬

ever,

mentioned,

as

jective

employment

un¬

em¬

ductive

declined.
a

unit

and

costs

have

I can therefore, in the follow¬
ing, give only the reasons why, in
my own opinion, any further in¬

of

crease

bank

credits

prevented by all
even

ent

level

aimed
As

already

profits
demand.

mentioned, entre¬
during the up¬

resulting
from
inflated
If production is to be
loans

new

without

new

the

result

that

to

higher

again

Nor

does

increased

an

not

labor

force justify a higher quantity of

and/or

money

its

In order to employ,

turnover.

10%

say,

higher velocity of

a

more

labor at the

same

need

10%

entrepreneurs

wages,

funds—not taking into con¬
sideration the capital need to buy

more

the material and the equipment to
work
are

and with.

on

provided

by

If such funds

newly

created

this means inflation, even
through a rising productivity,
prices remain stable on the mar¬
kets
where the
new
money
is
money,

if

spent.

The inflation profits men¬

tioned

about

sequences

of

an

and

will thus

increased

though

grasped

our

their

appear

labor

this fact

by

all

con¬

in spite

force.

Al¬

will hardly be
inflation-minded

generation: The labor force can be
increased
inflation

without

recurrence

to

either genxiine
saving furnishes the funds nec¬
essary to nay and equip the work¬
ers, or- if wages are reduced as
the number of employed increases.
only

if

the

of

past

markets.

Every Cycle Is Inflationary.

astonishing in
the serious credit and money in¬
flation
experienced
since 1949.
Credit and money inflations are




in
But

over

and over

expected,

with

a

stronger

reckon

to

repetition

permanent

meant

be

to

begin

oi

developments.
carry out invest¬

to

meet

ever-

an

increasing demand. The result is
a
still
stronger
inflation.
The
of

sort

forward

by

psychological in¬

mass

the optimistic side.

to

is

This

carried

now

nowadays.

just what is happening
The 13 prewar, war,

postwar years with their al¬

uninterruptedly increasing
demand, seem to have rendereu
entrepreneurs unable to believe
stop

this

day

one

can

situa¬
enterprises are founded or
expanded although the new plants
can only .show
profits within an
inflationary environment.
Again
this is just what, to my mind, has
happened during the last years.
This

of

cannot

objectively

as

be

course

long

proved

the

as

boom

It is only after the collapse
that it becomes clear which of the
investments

takes. But

points

were

in

even

prises
have

the

be

develop

situated

enter¬

incidentally,

will
through • a

corrected

no

entered
out

to

and critical

boom

with

1921-29,
can

be

I

until

called

the

present

doubt
a

in

year or

already
have

so

what

been

the

may

the

believe

postwar
the

considered

year

as

roughly

terest

a

also convinced that it will

short and
other words, it is

mild

very

a

demand

will

only be
In

one.

that

expected

only

lack

in

the

longer
Consequently, entrepreneurs

run.

short

and

in

not

the

seem

been

ture

under

the

to

curtail

clearly

shown

restrictions

tion

boom

by

inventories

vanced

and

cessive.

But for the

future

their

means

based

ex¬

remote

more

decisions
on

not

are

by

no

pessimism.

They
themselves
to
investments that seem

committing

are

long-run
warranted

sumption

panding

only

under

that

than

anti-

an

policy would,
contrary, be too effective,

knows

it

this

is

a

deflation

once

one

To

economists—

same

we

still

drawn out and

a long
depression.

severe

But in the last few weeks

even

tion of full employment for
length of time.

any

In

an
economy
having been
doped through the poison of in¬

flation for 20 years

sort of sta¬

a

bilization crisis with

ployment could of course develop.
But it should prove, as all stabili¬

easier

is

before

has

to'

stop a
inflation
if

curtailed voluntarily
become

when

too

it has

exces¬

been

al¬

unhampered to the

run

collapse.
other objections,

zation

prices,

duration.

the

mostly

concerning the debt management
heard. The allegedly strongest
argument against a deflationary

are

To

some

of

as

unem¬

short

very

endure

it

means

to

price

for the avoidance
of further inflation and the crash
pay

that looms

The
a

at its end.

most

serious

sound money

hindrance to

policy that would

brake

a boom
voluntarily in time
is, of course, that such a policy i*
extremely unpopular. Great cour¬

anti-inflationary policy age and fortitude are require1
that such a policy from those who wish to
adopt it
incompatible with the It is much easier to let things nm
full employment policy to which and to
represent the inevitable
even

is, of

course,

would

be

the

a

propensity to work and not the
propensity to spend is the founda¬

go."

Conservative economists agree of

to

if only the supply
prices of the
factors of production are
adjusted
to the price level.
To them the

that

en¬

adjusting
short, but not to

supply. They believe that at every
level of monetary demand full
employment can be maintained

will

it

as¬

are

an

economy in terms of demand and

only reply

secondary

or

Con¬

analyze

far

the boom

Many

policy

them.

shall

so-called

to

"no

to

how

much

it

started

ex¬

trepreneurs
mild and

economists

the

a

analyze

money

servative

construc¬

to

restrictive

a

taboo

credits

rather

and

therefore

permanently
demand.
In short,

of

obviously

economy in terms of "effec¬
tive demand" only.
They naturally
conclude that only by

fu¬

fact

the

objection

by the

the

that

carefully

are

the

consumer

kindled

Another

inevitable

very

are

Keynesians

ways.

the

high

inflationary
money
and
credit
policy — paradoxially often ad¬

lowed

instance,

of

dampened.

over-optimistic in their decisions
for

the

impact

on

loosened

were

for the

They watch,

would

into

But the will really
credits was lacking, as

sive, than

future.

and

deferred

interest rates.

in fact in the aggregate not to be

nearer

the last

two

amount

rates—could

have

on

of

government

course

tance
But

the

on

of

they

is

committed

paramount impor¬

avoiding unemployment.
do not agree with thp

Keynesian

of achieving full

way

deep depression following an

aggerated boom
fate under the

unholy capitalistic

system; and then to
ernment

ex¬

unavoidable

as an

for gov¬

cry

intervention.

short and mild depression seems

a

to be

more

no

envisaged. The fact
depression expected by

the

already for

many

1951

and

1952 has not materialized

of

v

tax laws

less urgent than

are

reckoning farther into the fu¬

ture, after the future has ap¬
proached, it has also induced some
of

Budget Seen Nation's Prime Need

Dwight W. Michener, Director of Research, Chase National
Bank of New York, says reducing tax load and revising faulty

un¬

has not only induced the
to postpone the day

now

Balanced

then

forecasters

the

official

forecasters
ment

lendas

to

semi-official

postpone the
depression at

the

of

and

mo¬

Ca-

Graecas.

Already a new
slogan allegedly justi¬
fying permanent optimism is be¬
ginning to appear. We hear of the
"new era"

"inherent

strength

of

American

economy," of "increasing needs of
a
growing population," of "con¬
sumer
needs being really unlim¬
ited if only newer and better prod¬
ucts are offered." In short, people
are quite slowly forgetting the lescnnc
of 1999.
Expectations turn
again toward an "eternal pros¬
perity."

balancing receipts & expenditures

A balanced

budget should come
ahead of tax reductions, Dwight
W.
Michener, Director of Re¬
search, the Chase National Bank,

creased

New

tional income.

York,

And

*A

Restrictive Money

a

Credit

Policy

really restrictive

.

a

American

Feb.

credit
met

policy

will

by many with

of

be

course

strong resist¬

ance.

They are first
those
eternal
sceptics who, as they did during
the
strongly
inflationary
first
postwar boom, doubt that a higher
interest rate would

have

the

the weakest attempt to curb

"indirectly" rather than
artificially through price cealings,
rationing and so on. Interest rates
become

during

somewhat

1952, although

homeoDathic scale.
even

this

slight

flexible

only

The

on

effect

a

of

from

departure

permanent easy money may have,
or

should

have,

convinced the
economists of the ef¬

fectiveness of
as

an

higher interest rates

anti-inflation

been

interest
effective

the

while

may

the

have

first

private

sector

increased

rapidly, they cannot be successful
in

Government

W.

D.

needs

be

to

sharply

declared,

inated, notably the Excess Profits

The

"penalizes the effi¬
extravagant

cient business, causes

expenditures,
business

concerns

unfair

is

and

that

are

to

grow¬

irregular
income one year against another."
Nevertheless, he said, reducing
the tax load and improving the
ing

rapidly

and

have

laws and the

of tax

quality

than

sideration,
anced

The

"the

our

in¬

primary

need

for

con¬

a

to

largely behind us,"
Mr. Michener. He

slackening

times

when

government

and

from

commercial

influence
on

depends,

said,

of the

he

of

banks.
govern¬

the money supply

the

on

ability

government to balance its

budget and

the method of bor¬

on

rowing and the

of

means

carry¬

ing the Federal debt.. In recent
years, he pointed out, short-term
debt has become an increasingly
large proportion of the total.
If
to

"present

be

abnormalities

reduced
are

so

arc

that later diffi¬

to be

minimized," Mr.
declared, "four admin¬

in the

pace

of

The

past

few

years

than their share of

budget
debt.

and

and

First,

he

reduce

said,

the

the

Federal

Secondly, it should retain

a.

credit

policy

which ad¬

"the

needs

of

have

justs

plant

Third, the increase in short-term

residential build¬

ing, suggesting that leaner years
ahead.

debt

to

obligations

minated.

should

However,

as

trade."

be
a

ter¬

fourth

policy, he suggested that "sudden

The increase in inventories
the

importance."

Administration should balance its

flexible

expansion

since

result ;of Federal bor¬

as a

Michener

more

(2)

ex

istrative policies are of particular

activity:

are

greater

particular, he argue^

future

bal¬ culties

pointed to five conditions indicat¬

had

the?

carry

even

major force of the postwar

boom "may be

a

agains'
govern

budget."

according

ing

In

by

would

ment finance

cidence of the tax burden are less

urgent

warned

production of goods and services,"

and certain taxes need to be elim¬

which

pres

conditions.

"which

largely
rowing

Tax,

r

money
supply, .which "has ex¬
panded much faster than has the

Michener

Michener

Mr.

reduced,

been

against continued increase in Uk

of

e

boom when investments

postwar
in

rates

during

k

have

stimulants"

tremes."

Federal

(1)

weaoon.

Nor can it be argued that

higher

a

exports

Michener

ment,

de¬

sired

have

t

substan¬

income t<

future

developments to

on

16.

tax

world

"further

Chi¬

111.,

of

home

and

committed

purchases.

Our

Mr.

per¬

sonnel confer¬
at

have

na¬

rate which may prove to be tc

ent

Association's

cago,

debt, has in¬

faster rate than

a

Consumers

(5)

Fed¬

government

high to be continued under

Management

ence

at

current

opening panel
session of the

local

private

tial amounts

the

national

debt, including
and

along with

owners

that

attended

Total

(4)

ex¬

ecutives

the

and

money

(3)

eral, state

told industrial
relations

The over-all

Objections to

boom

1952

during

tremendous

a

fact

we

later

But

the in¬

employment. There

preventing
of
monetary demand from declining
long-term investments have been from
high levels can full employ¬
going on, in the private sector ment be
maintained.
Full
em¬
quite independently of rearma¬
ployment on a lower level of
ment. Such long-term investments
montary demand is, as they con¬
—most sensitive to
change in in¬ sider wages as fixed, unthinkable
years

now

analyze closely

we

be

easy-money

diagnosis:
my
mind

my

phase of the upswing.
the present postwar

Comparing

boom

rates.

changes in

contends that such

to

summarize
is

that

way

opinion, we see that in
people anticipate the coming
depression, but that they are

allowed
best

that since about

the

can

inflation

to be liquidated.

There

hard

terest

to

general

even

painful cost-price adjusting proc¬
This strongly suggests that
many
marginal
ventures
have
been undertaken, which will have

have

what

break-even

ess.

To

the

However, if

should consider that

which,
to

idea

is

1 y high

we

abnormal

era"

counter-inflationary effect.
They can pride themselves on
have been mis¬ having
until
lately
prevented

lasts.

new

learnt

prevented

such

tion

"new

becoming excessive.

be reversed.
a
psychological

or

In

increase

the

ness-cycle conscious.
And
this
cycle
consciousness
has
indeed

til

out

turns

than

is

time

Whereas

nothing like an eternal
prosperity.
It has
grown
busi¬

are

again—maybe for years—that de¬

boom

has

for

happened

today and

prosperity prevailed,
generation of entrepreneurs

our

ex¬

has

of

eternal

long as
future prices
as

having experienced

ments

of

situation

of the twenties.

that

re¬

the

on

still

certain time entrepreneurs

mand

the

one

at

be

what

on

a

the

profound difference be¬

a

tween

that

can

sound

as

pectations

turn

There is nothing

is

la hausse,

amene

situation

garded

after

indeed

expected.

the French say.

as

that

other.

markets

expansion

to

given—la hausse

the

for

the

than

impulse

new

This brings

demand

coming

products

be

to

into circulation; with

money

a

inflation"

have

asked for and granted.

most

"inflation

be

decide

expanded

and

less dangerous than any

should

swing to expand their production
mainly under the impact of extra

cQsts prices

be

pres¬

pessimistic prognosis

a

not over optimistic
nowadays; that
they do not expect demand to stay
high indefinitely. Now, there is

whether

preneurs

loWer prices.

only

and why

in the

inflation

of

be

at.

fection

If in spite of lower
remain stable it can
due to a simultaneous

should

means,

reduction

some

thus

Declining costs lead in

the

on

observer.

pro¬

non-inflationary environment to

esti¬

business cycle feeling the "Konjunkturgefuhl" of the individual

They plan and

with

is

dependent

and

such favorable

changed it is because the
ployed have become more

The

obviously
after
the

estimate

an

er

creases

anyway.

can

an

production, must be considered
error.
It is due to thinking
along the lines of a very crude
quantity theory. If production in¬

the
the

determined

Such

based

periences of the twenties seem to

way

this

on

when

and

collapse

a

be

This

Employment During Inflation

depends

where

of

whether

on

not

or

length of the whole

A

demand

the

mated.

goods produced
under the assumption of ever-ris¬
ing

called

be

long-term economic

decision
case

middle

is

longer progresses

inflationary

such

insensitive

it is often objected that
entrepre¬
neurs are
in fact on the average

there

judgment

no

once.

could

of

boom would

inflationary boom

But

question

growth.

criterium of

entrepreneurs expand pro¬
duction
under
the
impact
of

present

what

is the

that

the

prosperity is not, or has not al¬
ready been, moving for some time,

inflationary in spite of
price stability: It is an important

is

upswing.

solve

not

rea¬

condition

necessary

cyclical

does

so-

cycle

defla¬

price level.
If they have,
money is not ' neutral" and the

an

business

then

the

boom

all

son

judged without taking

effects

of

essence

theories—if not the sufficient

cost-lowering
factors
working
simultaneously have counteracted
the

the

ended

money

into consideration whether

is

To

Consciousness

spending is

39

war

has

been

larger

than that which may be expected
in the future.

and drastic action is not des'raVe.

Errors of the past cannot
rected
cent

by sharp reversals

policy."

b"
or

cor¬

re¬

40

(812)

The Commercial and Financial Chronicle

,

Interservice

Administration's Budget Task
February issue of "Monthly Bank Letter/' publication of the
National City Bank of New York, says election pledge to cut
government spending drastically vol! be a formidable Job, and
there is no warrant for assuming eliminating projected
$10 billion deficit

rivalries

from lack of real

casualties

conscientious

by

Eisenhower

dent

is

himself

Failures

.t„T

,

lng taxes."
•According to the timetable anduring the campaign,"
"
™"""
"

Immediate

goal, was

budget

a

trimmed to around the $70 billion
level in fiscal '54.

objective means, on the basis of
Truman budget, cutting out
billion of projected expen¬
ditures,
representing
in many
oases programs which have been
In operation for years, and doing
matter of months by an
which
has
just

a

Administration

into

come

office

and

leadership

party

in

by

a

new

Congress.
Republican

of the
leaders have continued to express
"While

some

confidence that this
the

fiscal

problem is made
by the fact that a

where failures

against 15

as

Lontinuea

alties than

Industry

for the current quarter.

cars

effect

of

these1 tax

allowed for

was

While the

terminations

in

the

Tinman

budget for 1954, the estimated
duction of
was

revenues

re¬

the reduction in

as

'

full year was placed at about $8
billion.

"On the other hand, it is Well to

bear in mind the tendency of re¬
cent budgets to over estimate ex¬

penditures. For example, just a
year ago when President Truman
first presented his budget for fis¬
cal 1953 he estimated

at $85.4 billion.

expenditures

This

was

lowered

last

August to $79 billion arid
again last month to $74.6 billion—
a

total

reduction

billion.

of

Reflecting

almost

mainly

$11
these

successive downward revisions in

expenditures, the indicated deficit
was cut from an
original $14.4 bil¬
lion to $5.9 billion.
"There is also the

Although auto production was down

marked

upswing that has taken
place in general business activity,
and because the statutory lower¬
ing of tax rates may not result in
as great a loss of tax revenues as
estimated. The latter applies par¬

ticularly to the projected loss in
from

termination of the

Profits

Tax, the elimina¬

revenue

Excess

tion of which would
encourage
better control of business expendi¬
tures and thereby raise the
oper-

attng income subject to the regular
corporation
income
taxes,
These rates remain

at

52%

until

April 1, 1954, and at 47% there¬
after.
"There is

no

warrant, however,

for sitting back with the easy as¬

sumption that trimming $8% bil¬
from expenditures in
1954,
and eliminating the projected
$9.9
billion
deficit, can be accom¬
plished painlessly,, Achieving the
goal is possible but it will take
lion

thorough-going, intelligent work
x>

find

where
cuts
are
jusand dourpge to make them.




.

Little change occurred in other lines*. 5

week ago.

and West South*
largely responsible for the heavier mortality*.

were

a

year ago.

had

of

the first advance in four weeks.

only about 1% last week,

with $6.57 on the

look at

you

nation's

of the

Largely due to

the

severe

downtrend in

biggest

consumer

commodity price index, complied by Dun
Inc., dropped sharply toward the close of last week
level since mid-July, 1950.
The index funished
Feb. 10, comparing with 278.63 a week earlier, and

of finished steel uses oneto produce 486,000 passenger

In the long month of January,

short month.

drop of

grains, the

wholesale

output and is aiming

in February, a

ago, or a

year

Commodity Price Index Moves Sharply Downward
To Lowest Point Since Mid-July 1950

Holds Steady at Previous Week's Bate

wonder why steel demand continues so strong,
the automobile industry, says "Steel," the weekly maga¬

The

a

general trend of food prices at the wholesale level.

zine of metalworking.

cars

corresponding date

This marked

number compares,

The index represents the sum total of the price per pound of
foods in general use and its chief function is to show the-

31

higher volume.

When

The current

5.8%.

General

Steel Output

6 cents this week to stand at $6.19 on Feb. 10.

rose

gloomy." But it noted pro¬
Motors Corp. divisions as a "bright spot,"
Chevrolet's output rose 2,000 over the previous week as this
division worked Saturday.
Pontiac, Oldsmobile and Cadillac also
duction

the

even

Grain markets
10.

were

Heavy liquidation

daily

& Bradstreet*
to the lowest
at 276.55 on.
with 304.58 a

unsettled in the week ended Feb*
Friday and again on Monday of that

very

on

season.

Wheat led in the general downward movement which followed

reports
wheat

that
for

the

export

Commodity
at prices

Credit Corporation was offering
competitive with exporters'"

offerings abroad.
Other

depressing influences which have

been overhanging:

the market for some time included large domestic supplies, con¬
tinued slow flour trade and improving crop prospects in other-

exporting countries.
There was a moderate export business re¬
ported in both wheat and corn but the latter had to contend with
continued marketings of low quality Government corn. Average*
daily purchases of all grain futures on the Chicago Board of*
Trade the past week totalled 41,200,000 bushels, against 41,500,000
the week before and 54,900,000 in the same week a year ago.
Flour prices turned slightly lower in late dealings; domesticbookings of hard wheat bakery types continued at a very con¬
servative pace.
Cocoa prices weakened under commission house-

Feb. 9, and for the like week a month ago the Tate was the same.

and trade

A

and

ago

when the

capacity

was

actual output

smaller

was

2,098,009 tons, or 101.0%,

selling, prompted by easiness in the London market

declines in other commodities.
Coffee

Electric Output Improves Over

was

of

one

Previous Week

Spot cotton prices

18,423,000 kwh. above that of the pre¬
ceding week when output totaled 8,129,038,000 kwh. It was 707,694,000 kwh., or 9.5% above the total output for the week ended
Feb. 16, 1952, and 1,242,238,000 kwh. in excess of the output re¬
ported for the corresponding period two years ago.
was

and

steady most of the past week but

were

propects

of

higher loan rate next

a

in late dealings was largely

influenced by

season.

from

iiquidatiori.apcl.^selling,;,

34.10

a

month

earlier.

Reported

sales

pared with 121,800 bales the previous week,

improvement at the week-end*
firmer trend in foreign markets.
Prices were firm-,

following

a

loadings

The continued slow demand for zinc resulted

reduced by a strike of railroad switchmen.

decline of one-half cent

of one-half cent

United States Auto Output Eases Due to Strikes and

the

United

States

last

more

week

Encouraged

cars

(re¬

than the

was

Commercial and industrial failures

rose

many

reduced-price

promotions,

shoppers

larger

than

in

recent

months.

The

less

favorable-

continued to appear in some large
Eastern cities where the shift of shoppers to the suburbs was
quite pronounced.

25,566

a

year ago

Some merchants felt that the unprecedented volume of con¬
debt was depressing current sales volume,

sumer
*,

The' total

dollef

volume

of4 retail

trade

in the week

was

estimated by Dun & Bradstreet, Inc. to be from unchanged to4%-higher than the similar week a year ago. Regional estimates
varied from the comparable 1952* levels by the following per-

.

to 200 in the week i-

ended Feb;112 from 1591 in the preceding week, Biftil & Brad* *

much

comparisons with

the comparable 1952 week.
Canadian plants turned out 8,248 cars and 1,870 trucks
against
7,253 cars and 1,824 trucks in the prior week and 3,459 cars and
2,882 trucks in the comparable 1952 week.

Bise

by

the period ended on Wednesday of last week,
Although most1
merchants chalked up larger sales figures than in the comparable
week a year ago, the number reporting year-to-year declines

in

Business Failures Show Sharp

Enjoys Slight Rise Stimulated by

increased their spending slightly in most parts of the nation irk.

Total output for the past week was made up of
114,280 cars
and 22,658 trucks built in the United
States, against 115,643 cars
and 22,089 trucks the previous week and 79,914 cars and
trucks

pound early in the week*
in a further drop*
pound to the lowest level since July 1950.
a

Reduced Price Promotions

declined about 1%, due to strikes and material shortages, accord-

vised) in the previous week. This was still 43%
79,914 cars turned out in the year ago week.

a

Trade Volume

Shortages
in

spot

Demand for lead showed some
a

production

10

and 200,000 bales;

reflecting

car

the

two week earlier.

The week's total represented a decrease of 43,175 cars, or 5.9%
below the corresponding week a year ago, but an increase of 117,535 cars, or 20.5% above the corresponding week in 1951, when

Passenger

in

markets deceased moderately from a week previous.
CCC loan,
entries in the week ended Jan. 30 totalled 142,100 bales, as com¬

freight for the week ended Feb. 7, 1933,
totaled 690,744 cars, according to the Association of American Rail¬
roads, representing a decrease of 6,872 cars or 1% below the
preceding week.

big to "Ward's Automotive Reports."
It aggregated 114,280 cars compared with 115,643

<

The decline?

prompted by the marked weakness in grains.
The parity pricefor cotton in mid-January was 34.22 cents a pound, up slightly

revenue

Material

the*

trended mildly lower toward the close.
Early support *>vas at¬
tributed to price fixing, some improvement in the goods market*

Loadings Continue Downward Course

were

advance in

Lard was mostly steady to firm, reflecting a strengthening,
trend in live hog markets which was influenced by a sharp cur¬
tailment in receipts.

Institute.

Car

to

few commodities

controls.

by the electric light
and power industry for the week ended Feb. 14, 1953, was esti¬
mated at 8,147,461,000 kwh., according to the Edison Electric

Loadings of

the

week, with strength attributed to the prospect of the end of price*

The amount of electric energy distributed

The current total

T

very

capacity for the entire industry will be at an average of 99.7% of
capacity for the week beginning Feb. 16, 1953, equivalent to 2,248,000 tons of ingots and steel for castings.
In the week starting
year

.

week resulted in sharp declines which carded all grains to new-

Feb, 14, steelmaking furnaces were

possibility

that tax yields may have been un¬
derestimated, both because of the

-

2&

was

In Four Weeks

"Ward's" called the results "rather

The American Iron and Steel Institute announced that the
operating rate of steer companies having 93% of the steelmaking

tax and in excise taxes.

in1 construction

Rebounding from last week's sharp downward movement, the
Wholesale Food Price Index, compiled by Dun & Bradstreet, Inc.,.

,

only around $2 billion, where-,
a subsequent

temporary increases
In the regular corporation income

and

Wholesale Food Price Index Registers First Advance

new cars to domestic dealers in the first quarter
year—the best output since the first quarter of 1951,
when about 1:5 million went to dealers.
A few weeks ago
"Ward's" said the industry was scheduling "possibly 1.4 million"

for that year

the

to 108 from 77

rose

this

High steel production is continuing, and in the week ended
operated at 99.5% of capacity,
or a
2-point recovery from the preceding Week when a fiveday strike hit a Chicago district steel producer.
Though it was
brief, that strike was costly to users of bars for civilian purposes.
Of all products, bar rolling schedules were hit hardest. Custo¬
mers for some sizes of bars have
been notified delivery dates
must be delayed a month, this trade magazine points out.

1954 of

1952.

In the Pacific States, casualties jumped to 66 from 30, in NewEngland to 17 from 5 and in the West South Central to 8 from
4.
Slight dips took place in five other regions, with the Middle
Atlantic toll dipping to 72 from 74, and the South Atlantic to 11
from 14.
All, regions except the Mountain States had more casu¬

lows for the

Dec. 31, 1953 of the tem¬

17Q>
than,

Geographically, the Pacific, New England

month, for auto production should have attained its full
stride, it notes.
;
Growing steel production, made possible by the expansion
in steelmaking capacity helped soften the blow of this intense
demand from the auto industry, this trade weekly asserts.

on

a

Central States

this

porary increases in the personal
income taxes, and on March 31,

to

groups except service.
The rise from 1952 was notably sharp in,J
trade, both wholesale and retail, and in manufacturing.

the next 18 months. These include

Tax,

sharply

More businesses failed than last year in -all industry and trade-

will automatically terminate over
llie expiration on June 30, 1953
the corporation Excess Profits

rose

more numerous

Most of the week's increase was concentrated in-retail trade*

year ago.

In I960 and 1951 following Korea

comparable:

dip to 30 from 33 in the previous week but they were a little*

output was only 465,745 units.
The February projection
tops the 1952 high of 479,938 in October, states "Steel."
Such an ambitious projection takes a lot of steel.
The pres¬
sure of demand for automotive steel should level out, however,

number of the tax increases voted

involving liabilities of $5,000
were
considerably

than 1.2 million

of

fifth

acute

more

•

5

The Slate of Trade and

Budget,

Joseph M. Dodge, has been more
guarded in his comments and cau¬
tioned the press and the public
pot to expect any '60-day mir¬
acles.'
•The

rycinp.

jrorn page o

the

However, they remained:

above the 27 recorded in the similar week of

»

.

F'iwifinit.pci 'from

be done,

can

Director of the

new

.

To achieve this

the

in

j

'

~

Bounced

so

-

,

occurred in

year ago when 98 concerns of this size succumbed.
Among
small casualties, those with liabilities under $5,000, there was a

au¬

be accomplished painlessly.
,

„

„

which

a

thority for the statement that defense expenditures are where the
In a discussion of the, Federal
National defense snd interna- greatest savings can be made, and
fcudget for the fiscal year 1954, tional aid, by virtue of their over- fhat they can be accomplished
the February issue of the "Month- whelming share of the budget and wjthout
reduction
of
defensive
3y Bank Letter," published by .the mushroom growth, offer the great- poweiv Reaching this dual objecTfational City Bank of New York, est possibilities. Extravagance and
will provide a severe test of
points out difficulties facing the waste m the military , services are the
0f the new Administra»ew
Administration in carrying proverbial, and testimony from in- .ti
and y congress to carry out
out its election pledges to cut gov- numerable sources is constantly.
effectively
their
raiment spending drastically and exposing new examples of short- Wisely
ana ellf,cllve y
•fco to make a start toward reduc- comings. Red tape, traditionalism, pledges of economy,
can

125

from 126 last week and

Presi¬

up.

the

below the pre-war toll of 293 in 1939.

administrators

tighten

exceeded

week of 1952 and the 1951 total of 165.

just plain prodigality are still
handicapping efficiency in, many directions, despite earnest efforts
and officers to

Thursday, February 19, 1953

Reaching the highest- level since' May 1950,

street, Inc., states.

proceeding

unification, and

...

f

centages: New England —1 to. -f 3^ East —3 to 4-I* Midwest 0 to*

STolume 177

Number 5196

.

The Commercial and Financial Chronicle

.

.

(813)
4-4; Northwest -fl to
Pacific Coast+3 to+7.

South

-f-5;

and

Southwest

+2

to

+6;

.*

Spring

apparel became increasingly popular in southern
sections of the nation the
past week and drew more interest than

corresponding week last year.
Women's suits and dresses
steadily gained attention.
Special promotions for St. Valentine's

Day

the

spurred

week

the

or

buying

of

accessories,

More shoes

sportswear

and

residential gained 1.2%, rural 2.5%, commercial

1.9% and indus¬

small

Net income of the electric utilities for 1952
approximated

The wideiy promoted price reductions in
to boost their volume last week.

food helped many

million

Despite the price
dips, most food merchants equally or bettered their sales figures
a

before.

year

Housewives

favored

the

beef

cuts

and

hams;

of

household

much

as

during

as

merchants

prepared

for

avid

as

The

dollar

volume
a

the

wholesale

of

mated

selling

new

tained

at

this

goods

time of

orders

remained

in

the

were

year.

Continued

increase

,

the highest levels yet atTotal business inventories reat

the similar week of 1952.

2%

of

reported

was

from

The

„

competitive

For the four weeks ended Feb. 7,

...

.

1953,

,....

Retail trade in New York last week declined about
that of the like 1952 week, trade observers estimate.

line

,

7%

from

the

decrease

a

like

1%

of

period

of

(revised)

last
was

In

ing

1, to Feb. 7, 1953, volume

declined 4%

all

the

reported from

the

1952

are

the

compiled

Power

-

the

Edison

Commission, will

The amount of

Electric

Institute

later in the

appear

the

and

a

1952

(the Federal Government contributing
million) making the U. S. grand total $3.6 billion.

<

Sales

:

of

some

the

On

increase.

$700

•

capacity

("capability"

in

encountered..

,■

'

,

'

,

,

'

,s

,

1.2%,

generated

considerably

output.

There

less, than

the

increase

8.2%

in

Of

*

while gas

more

18%.

The trend toward

use

of gas

be retarded somewhat in the future by the rapid rise' in the
cost of gas at the well,
although gas remains; a very cheap fuel in

south, and is also'

used for

north.
*

.

.

y

,

•
.

'

j

boiler fuel when available

in the

.

.

1 '

*

•

-1

The elfeetric Utilities also'benefited
by




in

would

the

cost

■
„

increasing the number

either

some

is

by

a

since

on

York

$2,000

charges.

the

on

oil:

or

cost

five-ton

of

gas

the

80 acres

produced

on

its
are

the outside using the

Servel

compressor,

lieved

that

fense

These

business

and it

is be¬

company's

once

is

de¬

curtailed

or

terminated, it will have ample

use

for

this extra
its

space

accelerating

to take

rate

duction of its regular

of

Servel

been

has

secured.

Thunderjet

for

the

fiscal
were

ended

year

at

a

record

be

noted

that

fiscal

year

this

Shupert & Co. Prizes and
Exchange: Edmund L. C.
Swan and Harold F. Carter, both
of Ilornblower & Weeks; Linford 1
B. Cassel, Jr., Schaeffer, Necker &
Co.; Clifford C. Collings, Jr., C. C.
Collings & Co.; Russell M. Ergood,
Jr.; Lewis P. Jacoby, Jr., Thayer,
Baker & Co.; John A. Nigro, Jr.,
Hallo well, Sulzberger & Co.;
Robert F.
Powell, Kidder, Peabody & Co.; Daniel J. Taylor,
Woodcock, Hess & Co. and
Spencer D. Wright, 3rd.
ley,

Stock

E.

Howard

mittee:

Brooke

Doremus-

Educational

Francis
&

3rd.,

York,
Co.

M.

Com¬

Jr.,
Co., Chairman; Reeves
Brooke,

Bunting, Kidder, Peabody & Co.
George T. Francis, Jr., Swain

and

&;

Co., Inc.
Speakers

The

Committee com¬

final

and estab¬

pro¬

dend rate makes the issue appear

to

in

be

field

!

1

of

in

which

priced

re-

regular quarterly

a

one

bilities

which

quirement^is' (bbifig produced ill

Illoway, Aspden, Robinson Sc
Co.; Frank Lester Smith, Wurts,
Dulles
&
Co.
and
Spencer IX

Standard & Poor's.

commercial

its "Wing

Poole,

B.

to be head¬ Eshleman

believe will
high ground.

1952

in

31,

of

Republic .the next

airplane,

Servelhbuilds'> all

year

lishing

fortunate

The

appear

record

the present

the kind of defense contracts that

it

now

into

stocks

has

and

each

care

products.
,

Schmidt,

of

Roberts & Parke, were named co-

prises: Raymond E. Groff, Brown.
showing was after reporting a loss Brothers, Harriman & Co., Chair¬
in
its first
fiscal
quarter, and man; Frank Bailie, Philadelphia
earnings in its fourth fiscal Saving Fund Society; A. G. Cederquarter were at the annual rate strom, Penn Mutual Life Insur¬
ance
Co.; John F. Erdosy, Insur¬
of about $2.50 per share. Manage¬
ance
Co.
of North America; G.
ment believes that sales in
the
Budd Heisler, Central-Penn Na¬
present fiscal year may approxi¬
tional
Bank; John Pettit, A. C.
mately double last year's total
Wood, Jr. & Co. and Lawrence
and
a
profit is expected to be
Stevens, Hemphill, Noyes & Co.
shown for its first fiscal quarter
Directory Committee: Lewis P.
for the first time in some years.
Jacoby, Jr., Chairman; Raymond
The possibility of the
company
E. Groff and Theodore M. Hughes,
earning around $2.50 per share in

company's

line of home freezers.

paid

should

.

to manufacture

year

exception of

high and earnings were equal to
85 cents per share. However, it

Evansville, Indiana, Servel does
room

years,

Sales
Oct.

Corporation

cover some

two

been

carry

present crowed operating
at

an

ing upward which I

capacity

'

for

which resulted in two poor years,

advantage.

of the country,

areas

each

reported
with the

1937

earnings

de¬

gas,

both

Boop,

dividends
since
1935. Peak earnings were shown
The Public Relations Committee!
in the 1948 fiscal year and follow¬ consists of John D.
Foster, Chair¬
ing changes in management in man; Franklin L. Ford, Jr., L.
1949, and character of output, to¬ Lawrence Griffiths, DeHaven Sc
gether with distribution changes Townsend, Crouter & Bodine and

neces¬

to

been

have

seven-

New

close

wings

for

irregular trend in the past, profits

upwards, the lowest operating

not have

of

may

the

house

contracts

While earnings have shown

►

an

having

unit would be

and it is estimated

In

at

■

than

three-ton

conditions

„

increased

present

have

plants, which

oil and gas are also used as fuel in steam
generating
year the amount of oil burned decreased about 1%

into production at about the
the company completes its

'only

Under

course

plants; last

be

air-conditioning

service.

,

lete facilities.

dwellings

the New York Steam

fuel-

for

go

cost in Manhattan is derived from

a

wing

Thunderstreak

fighter plane. This new wing will

been

sys¬

and

saving of 6% in the amount of
coal burned to produce one kwh—1.10
.pounds compared with 1.17
pounds in 1951.
With the most efficient units now producing one
kwh with only about 7/10
pound of coal, there is considerable
room for further
improvement as modern plants supersede obso¬
was

business

aircraft

type

Republic

new

higher priced homes,
ranging from $18,000 to $40,000,

stallations

utility companies were fortunate; with respect to
fuel consumption in 1952. The amount of coal burned increased

principle of

this

on

equipment.

far the cheaper fuel. With
regard to some of the bigger in¬

The electric

only

round

pending

!

,

ap¬

have

potential of around

new

including installation

indicating that higher unit

were

sales

erated

cases)

some

margin

different
the

for

These year round units can be op-

an

1953

Republic's Thunderjet airplane.

area

estimated overall gain of only 6.3% in 1952, somewhat
smaller than had been
planned, probably due to delays in obtain¬
ing materials. The increase in physical capacity was less than the
increase in construction expenditures,
costs

of

air-conditioning but look¬

room

•

in
may

round

sary

a drought until late' in the
In other important hydro areas such as the southeast and
northeast conditions were generally good in the first half of the
year but were: less favorable in the second half, particularly in
the southeast. '
"

kw

this

there

volume

time

a

year.

in

with

now

that

wings alone

Wright, 3rd, Wright, Wood & Co.
profit¬ Golf Putting and Kickers: Russell
M.
able.
It
is
Ergood, Jr. and Theodore EL
expected that wing
production activity will begin to Eckfeldt both of Stroud & Co., Inc.
and
Harold E. Seattergood, Boendrop in February from the peak
output attained in recent months. ning & Co. Entertainment said
Llewellyn
W.
Fisher,
However, tooling and other prep¬ Bridge:
aration has
been
underway for Sheridan, Bogan, Paul & Co.
Publicity:
John
D.
Foster,
Studmore
than a year on a new and

tems. In the

production

increase

big demand

a

around of

only a relatively few new low
priced
homes
built
with
year

year

while the northwestern states suffered

The

10%

committees of the Association

serve

The

sult should continue to be

all

systems

than

more

be

homes

250,000

side, hydro output increased only 6.5%
while steam generation gained 8.2%.
Rainfall conditions varied
considerably during the year. California had plenty of water,

showed

no

will

annual

electricity

total

the

the cost of adding

aircraft

for

and while earnings will be sub¬
ject to renegotiation, the net re¬

esti¬

have

estimated that there could

strike, increased 6nly 6.1%. Since industrial sales amount
nearly half of the total, the smaller gain in this category held

back

Builders

ing ahead two to five years, it is

the steel
to

Announces ComntittMs

have to

contracts

both

the basic

to

as

profit

that this could be air-

be

Up until

(kwh) gained 7.8% in 1952. However,
residential sales, the most profitable part of the
business, increased
13.0% while rural gained less than 1%. Commercial (srrtall light
and power) increased 8.5% while industrial
sales, handicapped by
^

ment

large housing projects believe

new

"

new

ally expended for construction, some $900 million being obtained
-from depreciation accruals, amortization charges, retained earn¬
ings, etc. Public power agencies spent about $1 billion on construc¬
in

sales

relatively high rate and it

that

there

capital, raised by private electric utilities
in 1952—over $1.7 billion—was about 18%
greater than in 1951,
and probably represented a new record
high. About $1.1 billion
of long-term debt was
issued, $201 million preferred stock, and
$436 million common stock. However, about $2.6 billion was actu¬

tion

annual dinner of the

the

of
the
proximate $100,000,000. Servel has chairmen
Arrangements
an
agreement with the Govern¬ Committee. Reception: Lawrence

be

in houses of this type for
maximum of $1,200 and builders

of

Fedefral

year.

to

ment

"Electrical

by

about

Paul W. Bodine, Drexel & Co.;
$12,000,- Arthur S. Burgess, Biddle, Whelen
000
per
month which probably & Co. and William V. McKenzie,
represents the maximum amount Paine, Webber, Jackson & Curtis.
under this contract. However, it
William T. Poole and Orrin V.
the rate of

at

selling price of a house up to
$15,000. Servel's engineers esti¬
mate they can install their equip¬

World," dated Jan. 26. Fischer Black,
Editor of the magazine, has also discussed the
figures in a talk
before the New York Society of
Security Analysts. Final data,
-.as

to

rently shipping wings to Republic

the

statistical

annual

have

air-conditioning

year

in

will

new

in order to stimulate

mated

Utility Industry in 1952

available

now

represent¬

year

is estimated

conditioning.

Preliminary statistics for the electric utility industry for the
year

host

as

for the year 1953.
Membership Committee is*"
important defense headed by Franklin L. Ford, Jr.,
products, such as ordnance mate¬ of E. W. Clark & Co. as Chairman.
rial, etc. The company is cur¬ Other
committee
members
are

for aircraft

should

of

years,

many

acted

items and other

be

new

is believed

Utility Securities
By OWEN ELY

number

this

to

increased

recent

at this

calendar

expected

Company's

been

rate
of
around
1,000,000
housing starts per annum, is
coming around to the belief that

period
under that of 1952.

added

Review of the Electric

is

least.

equip¬
Another

markets.

combination

a

sometning

Public

Koch's

with a
W. H-

of

Phila. Sees. Assn.

substantial volume. The Air Force

are

heating and
cooling unit of two-ton capacity,
gas fired, for installation in small
houses in the $10,000 to $15,000
price range. The building indus¬
try, in an effort to maintain its

that of the similar week of 1952, while for the four weeks ended
Feb. 7, 1953, a decrease of 2% was recorded.
For the

Jan.

prices

as

air-conditioning

for

offered early

...

6% below

year.

far

as

product

new

According to the Federal Reserve Board's index department
weekly period ended Feb. 7,
declined

eeding

2

page

ous

of

ment

store sales in New York City for the

1953,

of

in

recently stated that Servel is now
.4
V"
PHILADELPHIA, Pa.—William
ServeTs
management believes the largest producer of military
A. Lacock of E. W. Clark &
its program of new product de¬ airplane wings in the world. It
President bf the. Philadelphia Se¬
velopment is approximately 70% is expected that the large scale
curities Association, has an¬
completed and for the first time wing production program at Ser¬
nounced the appointment of vari¬
it can now offer a comprehensive vel will extend well into 1954 at

of

For the period Jan. 1 to Feb. 7,
1953, department store sales registered an increase of 1% above
1952.
■
:•,
;
'

preceding week

from

concerned.

increase of 2% was reported.

an

practice
Marshall

Security I Like Best

.

.

that

and

Milwaukee Bond Club.

.

an

Mr.

keeping

celebration

In

election

guests at a cocktail
party at the Milwaukee Club proc¬

moderately above the year-ago level with the most
pronounced rises scored by manufacturers; stocks held by whole¬
salers were generally slightly smaller than a
year ago.
Department store sales on a country-wide basis, as taken from
the Federal Reserve Board's
index, for the week ended Feb. 7,
1953, increased 1% from the level of the preceding week.
In the
week

outgoing:

the

50 out-of-town

slightly

(

Company for

is

and

years

associated

been

Club.

to

mained

previous

many

has

Marshall

The

President of the Milwaukee Bond

while steam facilities will be increased substantially. Over half of
the increase in hydro generation will continue to be on the Pacific
Coast.

season,

Koch

Mr.

with

by the "Electrical World" an increase of about 14% over
Expenditures for hydro capacity are expected to deeline,

1952.

/.

/

for many

Vice-President.

16.8%, larger than in 1951
of the past decade.
was

earlier despite the year-to-year drop

year

in "prices;

V ' Orders

$934
were

dollar

revenue

Company, 765 North Water

Street,
announce
that Otto JVrKoch, Jr., Manager of their trad¬
ing department, has been elected

industry is still planning to expand rapidly through 1956.
construction expenditures will reach $4.2 billion, it is esti¬

1953

it

as

trading activity in most of the nation's wholesale markets
the period ended on Wednesday of last week continued close
the quickened pace of recent months.
higher than that of

surplus

but smaller than in most years

two years ago.
many

1951, and dividends

$658 million. The proportion of the

vs.

available for dividends and

the similar week

quite

As

shall

The

goods sold about

the* preceding week and slightly more than in
in 1952.
However, shoppers' interest was not
was

compared with $822 million in

$718 million

poultry and lamb slipped in popularity.
Retailers

The Marshall Ce.
MILWAUKEE, Wis.—The Mar¬

munities.

comparable 1952 week.

merchants

of

Koch Vice-Pres. of

trial—surprisingly—4.4%. The fairly large gain for the latter per¬
haps reflected the tendency to decentralize industry by building
large numbers of small factories, many located in smaller com¬

sold than in either the prior

were

helped to offset

moderately in 1952;

in the

items of apparel.

of their employees only 1.4% last
year, which
the wage increases quite generally granted.
The number of customers increased only

41

the

the

more

attractive

air-conditioning

seems

to offer possi¬

dynamic

year or

divi¬

so.

substantially

growth

over

The issue is
below

its

Manning & Merwin Open*
(Special to Thk Financial Chronicle)

SAN

FRANCISCO,

mund L. Merwin,

Manning

nership
with

have formed- the part¬
Manning & Merwin

of

offices
to

fdrmer-high When it sold at 24%

Street

in11946 arid 34% in 1944.

business.

-

Calif.-^-Ed-

Jr.and Arthur L.

at

127

in

engage
-

.

■

*

:

Montgomery
a

securities'

92

1

(814)

The Commercial and Financial Chronicle

(Joins Smith, Clanton

M. I. T. Honors 100,000th Shareholder

(Special to The Financial Chronicle)

GREENSBORO,

N.

Mutual Funds

C.—Robert

Perrin has become affiliated with

Smith, Clanton & Co., Southeast¬
ern

GROWTH

with
particular attention to per capita
trends in consumption, are dis¬
cussed in the current "Perspec¬
trends,

tive," Calvin Bullock's economic
publication. Studying the 1929-50
these
seven
industry
were found to have made

period,
groups

the

largest per capita growth in
consumption:
aluminum,
rayon,
electric

sulphur,

power,

petro¬

leum, rubber and

paper

All

average,

the

exceeded

sented

the

by

products.
repre¬

National

Gross

Product in constant dollars.
"A

industry," "Perspective"

an

states, "would
for

better

to be required
long-

seem

than

-

average

-

market

term

equities.

preformance of its
However, market per¬

formance

within the better-than-

category seems primarily
dependent
on
factors
such
as
capitalization, expansion require¬
ments, profit margins and other
factors
which
affect
corporate
profits."
average

Measured

ing

by price change dur¬

period

the

the

years,
in this

the

of

industry

order:

15

past

rank

groups

electric

These

power.

industrial

the

surpassed

capita

consumption

leading industry
in the

Rayon

distributed

was

from realized

Adding

tion,
44.3%
the

gain

growth
50%

securities at

with

Francis F.

of

the

bracing
and

bonds,

preferred stocks
holders'

investment

705.0

1021.0

1095.0

Product*—

01939

Dollars.

stocks

for

W—

values.

ment

markets

as

are

technological develop¬
reduces the price. This is

often followed by a period of fast

or

as

result

a

of

entirely

an

a

product

new

demand

rapidly replacing

product.

mally

The

of

one

growth

third

in

competing

a

phase is

slower

but

capita

per

nor¬

steady
while

use

the fourth

BOND, PREFERRED AND
COMMON STOCK FUNDS

phase occurs when per
capita demand for a particular in¬

dustry's output slows down under
the
impact
technological

The

From

Keystone Company

its

Congress Street, Boston 9, Mass.

draws

Please send

decisions

describing
Organization and,the shares of your

your

Funds.

ten

me

prospectuses

D-59

is

the

of

study

in

City

or

"Perspective"

that

investment

complex

outlook,

and

there

purely

matter

no

on

how

be.

may

Randolph

of

stated.

Whitehall

Fund

end

of 1.951

Net

up

from $18.89

even

though

a

made

When

that

cluded,
value

at

cents per share

the

31, 1952. This
$2,215,740 at the
$1,437,427

and

ment

personal
be among the most

assets

company

existence

that

mittee

have.

can

Whitehall

been

it

was

noted that

investment
insurance

com¬

this

in¬

re¬

shares

value

in

have
every

the

as

and

luncheon

in

Trust,

the

•

total

Griswold,

of

of

into

come

end

all

1952

of

approached

dollars.

billion

tonishing

the

at

That

is

as¬

progress.

;

companies

and

three

of

excess

$255,000,-

000, Whitehall Fund, with assets
only $2,693,573, has access to

holders

and

half

over

billion

a

in assets but its shares are owned

:in

by individuals and institutions
!

1

owner¬

The Man

Ca
-

«

Paine Webber First"

Trustees,

a
silver tray engraved with
picture of the Old State House

at Boston,
the
pany's symbol.

investment com¬
Mr. Collins was

sold his shares of M. I. T.

through
Rapids office of Paine,
Jackson & Curtis.

the Grand

Webber,

honored

Also

Mrs.

the

at

ceremony

K.

J.oslin and
John
H.
Kimball
of
Lynni'ield
Center, Massachusetts, who now
Mary

the first shares of the Trust,
1924 to Edric Eldridge of

own

in

sold

then

Boston,

savings

the

President

in

bank

The

of

a-suburb

a

Boston.

original shares were
but became the

a

of

'

-

never

redeemed,

prop¬

erty of Mrs. Joslin and Mr. Kim¬
upon the death of Mrs. El¬

dridge, widow of the first share¬
holder.

Another

Otto

special

Zerrahn

shares

in

small

Boston

guest

who

1924

as

sold

C.

was

the

first

partner in

a

investment

KREIGH
a

house,

who has been selling M, I. T.

and

shares steadily ever since.

Commenting atl the luncheon
the growth of the Trust dur¬

ing

the past 28

Griswold

said:

"When

Investors

setts

1924

as

Trust

new

a

ment company

end

fund

Chairman

years,

Massachu¬
started

was

type of invest¬

and the first,

open-

ogranized, I doubt

ever

from

100,000th
to

sign

we now

have.,„
"I

affairs

of

the

of

the

assure

can

years

end

Trust

enterprise

the

1925

and

the

growth

its

earlier

in

painfully slow. At the
the Trust had only

was

of

in

that

you

with

1924,

200 shareholders and

nearly
before
we

elapsed

years

seven

had

score

the

at

luncheon

Harvard

at

reporter

you

will,
your

Dickhuth,

Eugene

into

and

a

with

with

"Herald

reported to
suitcase

his

come

unpopular

Tribune's"

is

writer,

dug

Club,
and

honor

one

what

II.

financial
have

of

hazard

at

York

maga¬

dinner

a

back to New York,

matter

capital."

repre¬

news

evening

guest

way

similes

of report¬

dozen

Commented

you're
New

had

Thursday,

on

as

the

on

had

he

to Boston for

100

"No

v

identified

became

a

Wednesday

both.

total assets

or

M.I.T.'s

only

after

baker's

a

zines up

100,000 shareholders

$510,000,000 which

check

sentatives from the

himself

over

shareholder

send

and

for

cartoonist

and

Paine, Webber first" in

order to
ers

Mich.,

a

"called

that its originators ever visualized
of

COLLINS,

Ada,

up

the

as

of

with, "As
100,001'

shareholder."

10,000.
"Meanwhile
ered

weather

including

pression

as

well

Meanwhile,
100

encount¬

all

48

economic

24

foreign

and

war

de¬

times.

good

following

of

other

of

as

also,

establishment
over

have

we

variety

every

our

the

company,

invest¬

open-end

Alaska, Hawaii and
All this is

states,

countries.

evidence

concrete

investment

1924 must have

it with
of

a

that

company

had

the

tiny

started

in

something in

basic appeal to

investors

all sorts."

investment research facilities sub¬

stantially
possible
its

greater
if

the

than

Fund

research

own

would

be

maintained

and

administra¬

tive organization.

the

of

ary

recent

rate

planned

Fund,
is

rise
the

deflation¬

program,

even
though, ne
higher interest rates
obviously a deterrent to busi¬

points

out,

expansion.

More

in his

likely, Mr. Barringer says
current semi-monthly letter
Board, the Federal Reserve

Board's action
a

reassertion

is
of

domination

of

markets by the Treasury

little
its

more

than

responsibiti-

dictated

by

effect

economy

mutual

interest

sees

of their

the

of

the

event

more

£7/te

is

end, he observed.

an

executive

tion

the
long
of
the

over,

The

structure.

this

In

authority

and

period

BARRINGER,

Delaware

a

for,

interest

probably at

rediscount

initiation of

ties

money

M O R E A U

Chairman

PUTNAM

fund
rates

considera¬

the
on

than

the

the

FUND

health

Treas¬

tjftodton

ury's desire to service the national
debt cheaply. He pointed out that
the

confidence

which this should

inspire in the independent func¬
tioning of the Federal Reserve
System

may

effect

ary

Seonye

Putnam Fund Distributors. Inc.
50 State

Street, Boston

offset any deflation¬
engendered
by
the

higher rate.
of Growth

NET ASSETS

Industry

Inc., at the end of 1952
were
$3,204,000, up 25.8% from
$2,547,000 on Dee. 31, 1951. Net
asset value per share was $27.95
against $27.02 on June 30, 1952,
Shares,

may

be obtained

from investment dealers

The
200

Parker

A

Diversified

Investment

ing
the
91,435.
Fund

or

Corporation

upon request

•FOUNDED

m

19 2 5*




end

$1.08

114,637

—

Chicago

sources,

Atlanta

Los

from

during
1952
share from invest¬
from capi¬

compared

with

$0,85, respectively, in the
ceding year.
At the

—

1951.

paid

per

and

Lord, Abbett & Co.
New York

of

ment income and $0.91

tal

Berkeley St., Boston, Mass.

to

year

Dividends
were

Prospectus

the

at

Shares outstanding increased dur¬

Fund

Investment Fund
Prospectus

$27.CJ

and

A Mutual

•

"Today, Massachusetts Investors
Trust not only has 100,000 share¬

Collins

100,000th shareholder

Chairman

and

assets

four

also presented by Merrill

was

companies have

with
a

connection,

a consequence
with four other

companies with aggre¬

gate assets in

the

of

as

of its association

to his
asset

short

working as a group has
actively managing invest¬

years or more. In

Collins'

foreign newspapers.

special

a

ship

been

of the research organization have
served
that organization for
15

asset

5.6%, the

Fund's

Even

has

relatively

a

ment companies for over 20
years
and most of the senior members

ness

is

in

port noted.
increased in

invest¬

an

period of time, its executive

distribution
to

year

research

believed to

important

States.

Mr.
received his certificate of

in

are

amounted

a

According to Mr. Randolph, ex¬
perience and continuity of man¬

the end of the year.

increase

At

offices

to

earlier.

D.

from realized gain on investments
was

assets

Dec.

and

company

on

in

1952,

earlier
distribution of 31

5%

increased

at the end of
year

its

of

viewed in the light of this
essentially conservative objective,

questions whether the

one

Fund

record

in

THE ASSET VALUE of Whitehall
Fund's shares increased to

$19.64

State

results

and

of

selection

glamorous this

Address

competition

changes.

moral
are

danger

growth

Name

good

a

slow

creating

Custodian Funds

income

Whitehall

established

in¬

possibilities

both

of

o m m o n

augment

provide

in

growth

:y stone

to

C

though Whitehall Fund

and

and

years,

are

development

stocks

United

oldest

ment

existence

ball

to

used

are

and

growth

has

the

Trust,

investment

American and

used to pro¬

are

dustries generally go through four
phases, the first being a period of
found

em¬

Bonds

income.

3.0

Nat'l

the

stability of share¬
capital and to buttress

2.7

"Perspective" describes how in¬

50

Investors

adventure story strip "Kevin The
Bold" appears; weekly in over 80

relative

1.3

17.2

preferred

stocks.

common

vide

illustrator and
syndicate cartoonist of

largest

in

of

described

rounded investment program

(long tonsl___,

22.9

President

investment character
by
saying that its primary objective
is to provide in one security a

2950.0

362.1

con¬

Fund's

2175.0
15.7

of

»

Fund,

757.0

22.9

or

and

and

were

Whitehall

hl's.)

382.5

This

times

use

and

at

12.6

since

Randolph, Chairman

board

with

220.2

a

with about

all

advantageous

compares

(lbs.)

value

vertible securities.

$2,693,573

(lbs.)_

had

started. *

achieved

was

distribu¬

of net assets held in cash

agement

city—

asset

14.5

(bbls. i7.7

investments.

have

first

73,2

Paper and Board

Address.

in

Fund

and
share

per

$2.00

shareholders

13.8

(kw

per

shareholders

on

this

89.4

Petroleum

Gross

1951

to

gain

back

1.9

(lbs.)

Power

Sulphur

feme.

during this period $2.00

Mr.
1950

$15.00

was

to $19.64 in the next 5% years

10,9

(lbs.)

Rubber

the

of

following table:

Aluminum
Elec.

value

investments

is shown

groups

1929

Canadian Fund*

asset

capital

and

Per

prospectus on

tial

1947. The ini¬

share. This value increased 30.9%

icals

rayon,

March 31,

on

come

paper,

stock index in price increase.

obligation please send

tions

rub¬
ber, petroleum, aluminum, chem¬

groups

no

since the Fund began opera¬

year

senior

growth

better-than-average

rate in

it;

Collins,

achusetts

BASIC

■M a

Kreigh
newspaper

Aaa, Michigan, last week became
the 100,000th shareholder of Mass¬

By ROBERT R. RICH

Building.

CENTLEMEN: At

Thursday, February 19, 1953

...

$1.03
pre¬

year-end this investment

Angeles

Continued

A

Prospectus describing the Com¬

pany

ing,
F.

page

43

is

shares, including

and terms of offer-,

available

upon

request.

EBERSTADT & CO.
39

on

and its

the price

Broadway

INC.

New York Citv

Volume 177

Number 5196

The Commercial and Financial
Chronicle'

...

43

(815)

Continued jrom page 42
Company's
funds
l'ully committed
stocks
iii

and

line

with

viction
and

five

that

Samp's Law is Noiv Law

almost

were

in

45

preferred

management's con¬
"the present volume

earning

consin

Company Committee

the National Association

have

Florida,-Illinois, Kentucky, Maine,
Michigan,
Minnesota,
Missouri',

of

and

vestment

business

of

power

director of the
Securities of WisChairman of the In-

issues,, Department

fact

In

of

that

administration

"can

call

for

versal of almost
any

phase of for-'
policy without losing face,"

eign

is

management

possibility
require

of

mindful

changes

of

that

Vp,'™:'rti,

the final

1952

quarter B.

Texas utilities
the

P.

because

"research

lepresentatives

unds

and

The
tions

fast growing
section of the country."
Keystone Steel was
eliminated
"because declining
a

—

seemed

growth

to

imply

this

of

rural

hesitation

some

company's

for

areas."

decreases

were

largest decrease
reasons

of

made
in

was

in

Dow

five.

in

rponths

was

net

reported

for

$4.74

or

Since
has

Oct.

added

American

31,

the

1952

of

in

97.55%

common

of

vestment

policies

setts

of

assets

the

the

,

Investors

~

„

Trust,

Keystone

Custodian Funds, Wellington Fund

Arkansas,

and Affiliated Fund.

of the Eaton

John

and

in-

V

Daveler

Vice-President

Director,
American
Zinc,
Smelting Co., Francis C.

&

President

and

Director,

Fiduciary
Oscar W.

Trust Company,
and
Haussermann, partner of

the

firm

&

exceeded

Howard

THE

wise is

income,

tne

after

the

case

(but

of

(c)
fiscal

18,

1953,

Mr.

Frederick

of

Company,

"Investment
cisions"

on

M. "Your

the

on

radio

in¬

others

or

intent

by

declare

to

open-end

an

(1)

dividend

a

capital

hi

•

in

the

m-.

fiscal

net

or

permitted

statement

and

sound

income

has

depreciation,

or

above,

< aj

prepared

accounting
been

the

accord¬

in

prior

to

the

date

15th

for

the

final

of

the

month

day

or

in

(4)

or

change therein

during any year or during any
gains distribution has been made.

capital

a

shorter

distributions

for

preceding

the

the

last

year.

-Mvidend

».

distribution

or

be

shall

referred

to

as

dividend

"extra"

an

the

accounting

respect

the

"average-cost,"

to

gains

for

the

basis

Internal

to

the

open-end
of

sale

investment

companies

capital assets, by use
"first-in,
first-out"

or

In

public,

the

prospectuses

for

Department, requires

based

called

"tax

vary

of either
basis

in

in

the

and

the

filing

of

"identified-certificates"

the

on

basis");

state¬

a

"first-ln,

or

and

companies, in presenting statements to the public, have used
years, ancl a number of companies have recently elected

some

basis, and since the

the

of

the

Revenue

purposes

some

basis"

such

from

presented

(herein

WHEREAS

use

as

income-tax

the "tax

practices

losses

and

WHEREAS

to

and

"klentified-certificates,"

statements

reports;

Securities

and

of

use

the

"average-cost"

Commission;

Exchange

basis is

therefore,

now,

not

require¬

a

it

be

RESOLVED, That companies continuing to use the "average-cost" basis include
in statements presented to the public,
by special insert or footnote, a statement
of the capital gains or Tosses on the
"tax-basis", as reported in the income-tax
statement; and that companies using the "tax-basis" include in such statements
and

in

the

same

the

manner

capital

gains or

losses

the

on

"average-cost"

basis

to the extent that such

information is reasonably available or, if such information
reasonably available, such information shall be given for fiscal years begin¬
ning on or after January 1, 1953, based on the book costs at the beginning of

is not

such

fiscal year;

and

RESOLVED,

be

It further

That

since the "average-cost" basis is recognized as the method
most accurately reflects the actual capital
gains or losses, it is the position
of this Association that whatever basis is used for
reports to shareholders, secu¬
rities sold should be so selected, in so far as it is
which

capital gains or losses
"average-cost" basis.

the

THE

STATEMENT

NESS
The

OF

for

OF

OPEN-END

following resolution

the

"Resolved

the

promote

De-

either

be

sale

directly

POLICY

of

in

Association

investment

evidence

management of

of

RECIPROCAL

Richmond, Virginia,

looks

with

disfavor

shares

company

unfair

an

TIIE

BUSI¬

COMPANIES.

the National Association

or

facie

prima

sound

the

GOVERNING

adopted by

indirectly, in addition to
of brokerage business, and that

amount

any

program,

Money At Work."

that

reasonably practicable so to do,
will approximate the gain or loss on

year

INVESTMENT
was

Administrators at its Convention held

It

INVESTMENT

of

COMPANY

STATISTICS

ending December 31, 1952

is

the

by

the

of

July

on

upon

promises

shall

and

1949.

attempt

give

to

contractual

practice

Securities

11,

any

agreeing

usual

such

business

the fund."

Market-"
Price

:

Noil-Leverage, General Portfolio:
Adams

Boston

Consolidated

Investment

Insuranshares
Lehman

f

Trust

Certificates_________

Shares

Niagara

Share

Shawmut

be

deemed

consistent

not

to

dealers,

allowances,
to

with

,

32.67

a

14%
80yr

Corporation

;

h 17.61

'

^

'"3

<

*

32

20%

a

Stocks

National

•

21

&

Colonial

Fund*

l/:

30

a

General

General American Investors!General

Public

Overseas

73.22

+

.

"A"

81%-70%

18%-15%

securities at

—3-3.7

1.00

21-

-1-7%

"give-ups"

—38.5

2.00

120

-88

company

9.3

—10.2

j 0.90

—14.8

k 1.20

—

—18.2

—17.0

8.0

—10.1

13%

*

16.80

'

23.64

27%

Foreign Securities

*

—

25.70

provided

which

+

7.0

5.1

—

4.6

5.6

+

1.04

q

0.76

14%-107/8

1.03

22y4-19

n

—11.9

—12.0

r0.15

14.19

+32.1

+34.8

0

31

23

39.30

—29.1

—36.9

1.40

28

3.48

—42.5

—43.0

0.15

2

87.24

—25.5

—30.0

1.88

73

u

i7/s"\-y

Inv

6

a

17%
8%

—

—

Unlisted

4%- 3y2

y

1.79

warrants:}:

Unlisted

4-w

25.69

—31.4

—34.2

1.04

17%-13y2

^

11.85

—27.2

—30.9

None

8%- 7V4

5%'

Mom

between

and

*

asked .prices.

b-g Plus the following amounts paid from realized

b——$0.!0
h After

c—$0.91

deducting

$2.81

unrealized appreciation.
i After deducting $1.03

unrealized

m-r

paid

$0.50

Plus

share

reserve

for

taxes

share

reserve

foY

taxes

paid

the

capital

from

from

following

realized

realized

capital

gains.

capita!

amounts

gains.

paid

from

,,

ence

"nreallzed

y

on

disposal

ayeclaUon
deducting $3.58

(1)

-

+++11

to Class B

remaining

stock

and

thereafter,

assets.




as

a

class,

to 70^-^jr

reserve

for

taxes

on

a

share

reserve

for

taxes

on

Plus

Paid from realized capital gains,

$0.88

,

„

paid from realized capital gains.
„

.

„

,

.

fEach

shares

perpetual

of

common

market

price of

warrant

common, at

$17.76

entitles
per

holder

share.

following

resolu¬

to

Asset

offset

in

cluded

1.27
of

was
$25.69 per share on Dec. 31. 1952, but the
price of the common was less than the exercise
the warrants.
.

where

not

exchange

an

or

may

dealer

even

or

such

purchases
sold

or

with
a

fixed

are

dealer

purchased

under

or

through

commissions

or

with

have

registered

the prospectus,

by
on

profits

the

connection

could

give up
though

or

sales,

the

same

at that time, and provided further that such

25th

broker

or

day

completed

TO

of

designated

month

the

by

by

Investment

the

following

the

month

in

payment.

dealer.

or

PARAGRAPH

or

redeem
the

U

OF

REGULATIONS

be

may

issued

shares

close

of

business

by

ADOPTED

AT

it

at

Paragraph

share'

per

21

shall

this

of

asset

value

day following the day
to the conditions under

for

by

value

net

the

the

on

redemption, subject
suspended under the Investment

permitted

have

Company

Regulation.

the

same

As

Act

of

used

in

meaning

as

in

disposal

through brokers or dealers of shares of an open-end
of the management type is hereby defined to be an offer or
unfair terms—

the principal

which

the

underwriter

<a)

dealers'

allows discounts from the applicable public
alike for all dealers, or (b)
vary
with the

not

are

sales

statement

a

the

(other

If

than

in

all

to

connection

to

of

concession

the

fi.

DISCLOSURE

No

investment
not

OF

are

after January

alike

with

1,

to

all

volume

purchases

dealers

not

is

in¬

1953;

concessions,, whether in cash or merchandise,
are offered to dealers and
brokers, which are

brokers

representative

compensation pays

addition

discounts

such

bonuses or
or displays,

alike

any

or

broker

that

prospectuses revised

available

not

dealers

or

extra

listed

without

wholesaler

any

any

in

PORTFOLIO

the

dealer's

respect

distributor

or

concession

to

any

to

their

sales;

out

of

his

dealer

or

salesman

com¬

contract.

CHARGES.

company, Its manager
in the execution

or

distributor

shall

inform

dealer

any

concerned

of the transaction, either orally or in
writing, of any proposed changes or changes in process in the portfolio. This rule
shall not prevent the publication of a list of portfolio securities or a statement of

by

value

the

than

'asset

(3) if special
special advertising

in

7.

a

be

of

in

(ll

REPORTS

increases

which

printing,
shall

portfolio

FINANCIAL

dends,

as

the

regularly established fiscal

Cost

buy

securities

of

DEALS.

or

price
of

if

(2)

upon

>

tLeverage of preferred stock
more
than
holdings of cash and government securities,
'

absence

investors);

by

changes

®

Formerly Railway & L:ght Securities

.>-"•+
realized

share

sale

or

profit is fixed

dealer

the

presented

are

grossly

If

amount

In

a

y

the

20."

on

.offering

realized capital gains.

$1.31

x

'

.

^

gains:

paid from

deducting

to

the-trust
later

charges

offer

The

5%- 3%

After
unrealized appreciation,

m—$1.7on—$1.83 o—$2.42 p—$0.72 q—$0.29 r—$0.30
s After
deducting $5.11 a share reserve for taxes on
unrealized appreciation.
t Entitled
in
liquidation to $20 per share in preferof

After

w

on
..

a

v

$1.37

appreciation.

j Plus $1.50
k Plus

a

capi-^

g~$0.^

d—$0.22 e—$2.33 f-$1.59

Plus

not

SPECIAL

5.

mission

u

the

of the Regulations concerning investment companies is amended

redemptions

paragraph

FOOJjJoTES:
bid

resolution

security listed

a

in

another broker

that

paragraph

(4)
a

said

CONVENTION.

shares

less

1940,

^

Tri-Continental

by

1.039

time

a

which

13y4-10

x0.15

service

are

AMENDMENT

which

on

-54%

0.36

4.3

transactions

in

t

1%

None

the

of

offering

than

later

company

of

as

-21%

3.2

+

—13.3
+ 0.5

fund

of shares

with

Paragraph 23

-17y4

—28.8

sale

company

remitted

investment company

—
1.3
—34.7
—21.9

6.48

>

-

4.94
6.51
14.25

v

4%^.""^
llYnC ■'#

a

securities

the

future

of

the sale

to read:

-26y8

-j

where

or

no

transactions

"Require

-

1933,

favorable price

more

a

are

THE

4%- 3%

0.67

of

investment

not

AN

this

" '

of

respect to the purchase

purchase

performed

That

33M>-29%

0.60

4.68

prohibit

selling shares of

In furtherance

and

"Secondary"

the

the

ment

23%-19%

m

p

agreements

promote

respect to all other transactions a broker or dealer may not
participate in profits or commissions on orders executed with or for the invest¬

23V4-19

.

65

a

latter

the

4.

32.35

however,

to

by agreement within the rules of the exchange, a broker
a portion
of his profits or commission to another broker

34%-301/4

—

2

Tri-Continental Corporation
U. S. & International

_

14%-liy4

0.75

—17.3

and

promises

made

be

agreement.

to

Act

or

f 1.14

25.38

not,

broker

or

that

not

may

does

It

dealer

a

or

with

the

e2.08

23.56

21%

.

American

to
"Special"

6.7

—45.2

,v

Options:
♦

0.30

That

Securities

-j-10.3

220.04

and

promise

—28.2

s

18%

Capital Administration "B"
Central-Illinois Securities,
North American Investing

*

9.6

—34.0

-High Leverage:

Pacific

—14.3

31.27

4%

Securities

Capital Administration
&

respect

•'*

267/8-

Service

Equity Corporation
S.

Unlisted

—

>

,

.Medium Leverage:

U.

1.45

g

2.

*

European

Carriers

the

3.

Conservative Leverage:
American

Unlisted

—28.6

21%

Corporation

28%-24

—10.0

al20y2+'

Aviation

Petroleum

1.40
d 0.18

c

0.5

—

—18.4

b$1.60

—19.3

35.56

-Non-Leverage, Specialized Portfolio:
»

9.3

i 24.8-3

17%

Association

—

companies.

fund

resolution

fund

1. That with respect to transactions on a national securities
exchange reg¬
istered with the Securities and Exchange Commission, a broker or dealer
may
participate in commissions even though he performed no service in executing
the order, provided such "give-ups" are remitted to the dealer or broker
desig¬
nated
by the investment company not later than the 25th day of the month
following the month in which the transactions are completed by payment.

—18.7

—19.6

5.60

•'

Price Range

'

the

proposed for adoption.

35%-30%
23V2-20%

—16.0

'*

is

1.00

—15.8

—18.3

4%

I9.VJ

year

—14.8% —19.2%

26.49

29%

with

RESOLVED:

Latest Fiscal

Sept. 30

34.27

a

a

Dividend

Premium

Dec. :u

$41.07

-

a

"B"

Tobacco & Allied

-

28

Corporation

National

^

22 5/16

a

Personal Property Trust
Invest. Management Corp._

Conn.

-

35

International

—-or

Per Share

(

a

such

tion

Discount

J Net Assets

Dec. 31

Express-

.American

*

Approximate-

investment

between
of

this

of

essence

business

Supplementary

Source; National Association of Investment Companies.
Investment Company

,

ACCOUNTING.

WHEREAS
with

securities

For the quarter

j.
.

or

principles,

distributed,

describe

to

in

thereof)

ex-distribution

or

be

financial

regulations

total

which

not

announcement

'

CLOSED-END

»

distribution.

or

Presi-

and

dealers
an

realized

published

and

appreciation

ex-dividend

shall

of

discussed

Research

Securities

of

open-enu

.DISTRIBUTIONS.

of

the

appreciation

cumulative

The

year

month

laws

unrealized

accounting period

by

regularly

realized

the

(1)

that the

Da-

Fidelity Management and

Research

Shareholders', Trust of Boston
Feb.

of

JOHNSON,

a

applicable
any

not

^

C.

GAINS

distribution

a

except

oi

with

(3)

3.

dent

MEETING

Haussermann,

^

EDWARD

CAPITAL

(2)

or

prohibited,

by

12)
ance

vison & Shattuck.

$111,500,000.

ANNTjAL

law

Stock

PERSONAL

.

stocks, the five largest

Erie

Gray,

•

invested

Invest-

Adviser, John P. Chase, Inc.,

Lead

together with

the

of

ment

and

manage-

Director

AND

were

the

meeting, are:
chase> President, Treas-

P>

an(j

urer

at

concerning

1953.

1,

an

ment of

The other Trustees, who
re-elected

manage-

objectives,

Funds

George E. Abbot.

Association

National

directives

January

(b)
Advertising realized or unrealized appreciation or depreciation and undeclared accumulated undistributed current net income in sales literature or other

of

Massachu-

record and growth

,

of

composed

from

schedules and charts showing the

AT

eliminated.

committee

representatives

Mr. Samp
his regula-

by the

scriptions

Fund

Company, Inc., Pacific Gas
& Electric
Co., Swift & Company,
United Gas Corp. No
companies
With

informal

organization, Eaton & HowIncorporated, of, Boston.

Fund and Eaton

Company, H. L.

Green

were

reg-

their

of both Funds.
On Dec. 31, 1952, combined assets
of
Eaton
&• '^Howard
Balanced

Fund

stocks

common

Chicle

their

to
state
securities
In drafting his regu-

the death of Mr.

YEAl^QOKS

ment

share,

the

and

fonowing

gains, giving the share¬
option to purchase shares of the investment company with such dividend
or distribution,
shall not precede the ex-dividend or ex-distribution date by more
than fifteen days.
holder

first-out"

ard,

$244,873,-

per

funds

Samp received the
special opinions and advice of an

These books contain complete de-

Oct. 31, 1952.

on

mutual

tne

effective

Any announcement to shareholders,
investment company, of a declaration
of, or

ment

ment

191, equivalent to $5.06 per share,
on
Jan. 31, 1954,
compared with

$223,470,374,

to

be

to—

INCOME

financial

just been issued

yesterday

were

field

mat

will

(a)

Natural

1953

by Affiliated Fund, Inc.
Total net assets

company

regulations.
lations, Mr.

S'r

than $21,in
three

more

assets

the

relationship

°war<SJv|utual Funds have

AN INCREASE of

a

holdpag? by groups were: Thayer, Vice-President and DiLightL/and Power, 22.16%; rector of Harriman Ripley & Co.,

The

Chemical

1.

respect

Electric

yield.

000,000

states which

is

recognized specialist in

T

hav^i adopted
are
j'l^labama,

Securities

Samp

0f open-end investment

tion

mutual

into

state

Mr.

Ga§,'9.39%; Bank. 8.93%; Incorporated, was elected a TrusTobacco, i$0p\ Food, 7.31%.
tee to fill the vacancy created by

Significant increases were made in hold¬
ings of ten companies during the
quarter,
while

recast

With

annual

stock

in

market

the

voluntary

y y'.}

agricultural

the

of

of

a

operations and for the past several
years has given his special atten-

,

form.

19

reports

the latter to give the
portfolio "further

geographic diversification in

wdte

port-'' present

have impressed us as
likely to provide superior growth
dynamics,"

prices

,

industry, the proposed

ulations

Goodrich

added to the

were

former

fencing in

,

cooperation

o

product development
and

of

..

N.A.S.A.,

Administrators,

in

quarter,
"is
on
defensive
qualities for the portfolio."
In

,

the

organization

emulations had first taken
?? 3t
tv?
Convention
IooitSu5111^
'tS
Hampshire,
t Fall, and with
the

quick

last

folio,

,

Caro-

Company Committee of the

announces

companies

from net

In

,

revamping of in¬
vestment
policy.
Accordingly,
current
emphasis, as during the

and

Committees

N ASA

the
may

South

lina, West Virginia and Wisconsin.

a?
av^ the regulations
torfr- ln^?tment companies writ1Ur Chl<:a&0 last November by
Pvpp,lf"VeStment Company and

re¬

Pennsylvania,

gon,

laHC'htVe'
by agreement,
?

view, however, of the'
the
new
Washington

vestment

Dakota,
Nebraska,
New
Hampshire, Ohio, Oklahoma, Ore-

of Secu-

Investment

Administrators

North

enough durable qualities to rities
Administrators, reports that
warrant
keeping capital funds at'

work."

COMPLETE TEXT OF N.A.S.A. REGULATIONS

in 19 States
The

i. Samp,

Edward

common

should

postage,
listed

in

in

TO

THE

authorized

include

issue
the

prospectus

a

tax,

legal

(2)

reports

of

any

kind

and

stock

accounting

agent's fees,

Account

based

duration.

PUBLIC.

Capital Stock,

transfer

Expense

or

periods of not less than three months'

in

separate item or by way of a footnote.

financial

split-ups,

expenses,

etc.,

in

reports

or

stock

connection
to

the

stock

divi¬

certificates,

therewith,

public,

either

I

44

The Commercial and Financial Chronicle

(816)

Continued from

first

mitic

campaign is winning support not only in Eastern and
Europe, but in the Arab states which are still at
logger-heads with Israel.

page

We See It

by experience to expect somewhat the type
oratory that characterizes party conventions.

out
out

by this threatening situation, the Ad¬
military forces of the Allies are
of position, and that the relations
among the Allies are

But

none

of this, nor all of

of the stature

man

a

for such tactics

it,

to us to excuse

seems

commonly attributed to Mr. Steven¬

toward

in

as

and has

them. And the Administration is
to finance

cease

our

our

the world until Free Asia is able to defend

that

.

.

Now, of

a great party stoops to pin the
diplomacy" upon this attitude, and to talk;
in Bryan-like oratory of "silver chains!" We, for our part,.
find it difficult to believe that the gentleman knows so,
little of our diplomatic history!
<

label of "dollar

doing

Mr. Stevenson always finds it impossible to resist a;
quip. Says he: "We have heard much about the 'psycholog¬
ical' offensive; but we will
frighten no Russians by threat-

ehing

Mr.

as

revert to the

not

seems

to

do

that

•

-V

■

.

:',"Y

to bud if not to blossom. If he

f urther the

goes no

appears to be that the situation has not yet
fully enough for him to be effective.
'

'

.

.

-

*■

•*

'

'

*

'

'

1

'

■'

"""

;

Swisher

Mr.

was

Two With Davies Co.
(Special to The Financial Chronicle)

....

FRANCISCO,'

'SAN

;

Calif.—"

and Clark

Richard T. Matsumoto

B. Stroud have become connected

Davids

with

New

Stock

"

~

and

York

.

Co.? 425 Mont-1
members of * the

&

Street,

gomery

rea- ;

developed

f

Street.

some

formerly with Davies & Co.
"

Francisco

San

Exchanges.

\

!

-

Two With Hooker & Fay

*

Continued from page 14

!

(Special to The Financial Chronicle)

SAN

Frederick

and

Hooker

Pine

340

Fay,

&

S.

associated

have 'become

Weaver

with

Calif.—

FRANCISCO,

Bernardi

Gino

The New Agricultural Policy

agriculture depends in part on the agricultural subjects," is a great Street, members of the New York
and
San
Francisco. Stock
Ex¬
willingness
of
other
economic and
valuable
institution.
This
changes. Mr. Weaver was form¬
groups to adopt policies that per- Department,
employing highly
erly associated with Davies & Co.
mit flexible and dynamic adjusttrained scientists and other de¬
as
manager of their Santa Cruz
ments.
voted public servants, in its re-

official sources, described the
general foreign policy of
the Eisenhower Administration in last
Sunday's New York

follows:

now

son

w,

Now what are the facts? What is the new Adminis-,
tration actually
trying to do in our foreign relations? James :
Reston, who apparently has the best of information from

as

A. Swisher have become ai filiated

about businessmen in
government^ and he seems to es-.
much of the rest of the demagoguery now beginning;

#

"Times"

He is

scorn.

T.

With Bailey & Davidson; 115 San-

prepared to "play politics" in a"

laying the ground
the agricultural sector; he
begins to talk

in

•

,

The Facts? :

now

seemed to

once

FRANCISCO,- Calif. —;
Bonnel and LeVerne

SAN
Robert

pouse

the Administration

policies of the Truman Administration does

qualify!

that he

& Davidson

(Special to The Financial Chronicle)

seems to us,

for attack

be content

Stevenson

With Bailey

It is obvious that in other respects the defeated Demo-

-

way

our

never

Spring Street.

Administration has set for itself. This inter¬

new

cratic candidate is

Allies." At another point, the speaker says "let;
merely to oppose; let us always pro¬
pose something better." This seems to us to be a good time .....
to come
up with something better, and merely to suggest
us

position to assert with¬

a

however, to be consistent with the facts.
If this or
something closely similar to it is the official plan
and program, how
silly Mr. Stevenson seems by contrast!

Y

South

staff of Walston & Co., 550

in

L.

LOS ANGELES, Calif.—Paul

Farnsworth has been added to the

pretation of what the President and the Secretary of State
have said, and of what the Administration has done and is

The titular leader Of

.

With Walston Co.

qualification that this is the general line of policy

which the
<

course, we are not

Spring Street, members
Angeles Stock Ex¬

Los

(Special to The Financial Chronicle)

gaged' from the Asiatic mainland."
out

the

—

change.

'disen¬

are

Calif.

ANGELES,

634 South

of

itself, and the

troops

,

Balie
P. Legare ha£ become affiliated
with Marache, Dofflemyre & Co.,
LOS

change this

He will consult the Allies

bulk of the United States and French

or

they do anything else that would impose our beliefs
or our will
upon them, but merely that they show in their
own "
way more effective interest in their own safety
against an enemy which Democrats as well as Republicans
regard as a threat to us all!
v,

so.

Dofflemyre

(Special to The Financial Chronicle)

country or of theirs without bold ac¬
tion, and that he cannot restore the balance of power in

wealth with

benefactions

With Marache,

ahead of any important moves, but he will not wait for
their approval. For his
judgment is that he cannot defend
the security of this

demanding not that they

their socialism with

already started doing

to

re¬

Gruntal &c

of

department

Co.

managed to veto all United States plans
position.

"President Eisenhower is determined

formerly

was

investment

the

of

with

depait-

research

its

Morse

Mr.

search

the 'mobile reserve' of Communist
strategy.

as

break out of this

to

demanding) incredibly enormous gifts from this
country—receiving and demanding at the same time—that
they go blithely on their way without regard to conditions
have undertaken to share

manager

Moreover, the feeling here is that the British and French

European peoples who have been receiving (and

we

ment.

proxy wars, which are diverting
military strength and leaving the Soviet Army

our

Alexander

associated

now

in

firm

most of

have in the past

a sense

under which

the

mousetrapped into three
free to act

he

indulged in last week. "I hope,"
he says, "that I have misread the signs of the revival of
the discredited 'dollar diplomacy.' I
hope we are forging
no
silver chains." And this in reference, apparently, to
the firmer attitude that the Administration is taking
son

it, the Allies have been

is

Morse

R.
sees

120

Broadway, New York City, mem¬
bers of the New York Stock Ex¬

change, announce that

"As this Administration

19, 1953

Stone,

&

Roland

Model,

of balance.

No Excuse

Thursday, February

.

Model, Roland, Stone

"Confronted

ministration feels that the

has learned
of

.

Alexander Morse With

Central

As

.

-

.

"In

foreign policy the President has set

out to do these

-

_

m-

,

things:
"(1) End not only the Korean

war

icies

Our agricultural policy will emphasize the further development

but the Indo-China

war.

of both domestic and

kets for

farm

foreign

products.

mar-

We

will

"(2) Replace the large United States and French
ground forces in Asia with South Korean, Vietnamese, and
Chinese Nationalist armies, so that the United States and

of improving the operation of free markets,
We envision increased

French forces

in

can

gradually be withdrawn into

a

"(3)

s

Get that mobile

the continent of

r'

"(4) Take

a

reserve

plete

more independent line with
Communists, denying to the Allies

and

crop

market

reports,
improved grading and inspection
services, and an expanded educa-

into

tional

stronger and

denying to the Communists

marketing and distribution as
as in
production, more com-

well

position to counter¬
Army instead of having it tied down
Asia
fighting the Communist satellites,

both the Allies and the
and

efficiency

j

balance the Soviet
on

seek ways and means

'mobile

reserve.'

:

nutrition.

In

others,

we

can

terests

of

they
will be able to retain the vast
spheres of influence they
have built in East Asia and East
Europe.
:
; / :

these

ways,

as

in

the best in-

serve

consumers

fsrniGrs

any assurance that

for better human

program

well

as

*

.

^

as

of

our

Relief

economy.

"What is the estimate of the world situation

President Eisenhower is

engaged in
there
East?
world
with

a war

something
What

are

of

on

which

behind the recent

moves

President

much

soon as

in the Far

domestic

In

war.

view

Emergency
as

should

be

made

a

-

facts, it.
very

and
of

agricultural program

The

needed,

and,

evaluation

now

public

in oper-

is actually

are

Land-Grant

colleges

experiment

stations

their

and

services

extension

as

well

as

127

ture, each having its appropriate
of service.

area

Each of the

serv-

ices for

agriculture, now provided
by the Government, should be reexamined

to

whether it

can

licly

or

determine

first

better be met

pub-

privately.

Montgomery Street.

W. H. Sullivan Sons Open

the State departments of Agricul-

(Special to The Financial Chronicle)

engaging in

local

or

sta|ec aSencies,^ or through Fe
•? cooperation, or through
the

administration

of

this

,

Department^ the guiding

purpose

will be to strengthen the

individ-

'

,

.

,

./

£

.

wiu
-

,

further
*

,

a

climate which

promote, ' cultivate,

.,

,

.

~

Sullivan, Jr.

111.

CHICAGO,
has

.Clausen

staff of

W.

Walter

—

been

added

the

to

Daniel F. Rice and

Com¬

Jackson Boule¬
vard, members of the New York
141

pany,

West

Stock

Midwest

and

Exchanges.

With Founders Mutual

-

(Special to The Financial Chronicle)

DENVER,
is

Nesbit

Colo.

—

A.

Fred

with

connected

now

Founders Mutual Depositor Corp.,

,

^ release the great reservoir of

if

H.

.

moral fiber of each citizen,

We must establish

Montgomery
Walter H.

are

(Special to The Financial Ch:onicle)

integrity, freedom,., and the
vel*y

155

at

Partners

Daniel Rice Adds

™

through

are

Sullivan, Thomas A. Sullivan, and

" 1t.he service, appears'to be a

accomplished

Sons

&

securities business

a

offices

Street.

.

wh1+h 1
?UJ? he determined ^whether .or
no^the objectives can ett r e

Sullivan

H.

Walter

from

Calif.—

FRANCISCO,

SAN

Walter

■«^..

needed, whether
be reduced, combined, de-

Communist

(Special to The Financial Chronicle)

prinadministration

of

there

with

thorough

every

ation to ascertain if it

seems

With Mutual Fund Assoc.

sound

Federal agencies.

partisan

serve

of these

important that
study,
analysis,

*

time since the outbreak: of the Korean

industry.

the emergency is over.

to
political purposes.

"The estimate of the world situation here now is as
follows: The Soviet menace is as ominous as it
has been
at any

be operated as
aid to the entire

be manipulated

policy? And how is the

directing the whole operation?

an

with

SAN
FRANCISCO, Calif.—
public
and practice, strict efficiency and Ephraim T. Duvall has joined the
economy.
In the various States staff of Mutual Fund Associates,

ciples

No agricultural program should

the

freer

as

programs should be terminated

chances, in the present threatening
situation, of reconciling his 'bold new foreign policy'

his

should

such-not

agricultural

basing his policy? Is he merely
against the Communists, oris

nerves

more

programs

improve

accordance

by
Congress,
its organization

-: *..

...

*1

in

out the pol-

carry

established

should

Inefficiency should not be sub- "
sidTzed in agriculture or any other
segment

office.

sponsibility to

■

Development of Markets

it can
dynamic latent energy of every
build-up in North Korea is large. Soviet pres¬
sure
on
centraljzed, coordinated, or other- individual in this great nation. As
West Germany, and
particularly on Berlin, is, wise improved in the interest of
mounting, and the Kremlin's anti-American propaganda, agricultural and national welfare. Secretary, I will seek the best

First

National Bank

Building.

Joins Francis L du Pont

•

,

^

campaign and its efforts to split the Allies
as at
any time since the end of the war.
"Not

are as
-

virulent ■'
-

only is the situation disturbing in East * Asia?
and in East
Germany, but the chances of success in the
current
negotiations to end the Iranian crisis are put;at.
about; tefrto-otfe* agfainst;' MfeanwHile:- the*SbviejfYanfi-Se^




Facts developed from such studies
should be plaeed before-Congress

,

T-

-

^
advice from me bers
the Congress and the entire agri-

—1the policy-making bodv

(Special to The Financial Chronicle)

CHICAGO, 111.—Tom M. Plank
has become associated with Fram»

of our cultural industry through confer- cis
Government—for- appropriate 'ac*-La
ence with farm organization lead-

"The

Department of Agriculture,
.'established brigmally ^to
acguire
and diffhse usefhl information orr "

ers- •****' committees, and individual^regardii^- existing and
proposed

policies

I.

du

Salle

formerly
Pierce,

Pont

with

Fenner
avi

and

programs.

&

Street.

.

Co.,
Mr.

203

South

Plank

Merrill

was

Lynch,

Beane in Chi-*
of

^Volume 177

Number 5196

.

.

The Commercial and Financial Chronicle

.

r-

,

Continued

from

is

The Outlook for Natural Gas
figures bear
the

proved

are

than the
the case of

greater

In

amounts.

natural

which

reserves

times

many

relation at all to

no

ultimate

because of
been

higher prices that have

established.

We

all

Some2 have esti500 trillion cubic feet, an

century.

liigh

as

estimate

consider

they

conserva¬

tive.
For years,

all predictions of oil

have been low

reserves

and

it

is

-quite likely that predictions of fu¬
ture natural gas reserves

be low.

is also significant that

It

in recent years

than

rate

at

petroleum

this

But in

that

us

to

1960,

cumulative discoveries of nat¬

our

ural

he

gas

thermal basis will
the total liquid and

on

55%

a

of

hydrocarbon discoveries
30% in 1950.

gaseous

compared to

;as

Only

2%

about

the million

of

big eastern

the

back

dying

in

will continue unabated

sider the

for

Afid

to

digress for

Dr. Egloff also
search

clean,

-

a moment,
believes that re¬

economical

more

on

pro-

cduction of gas from solid fuels is

fuel.

convenient,

high

We expect those

rates

the
have

tract

the

of

natural gas until such time

very

of

the

pos¬

neces¬

further growth. It
for
the
Federal

the

The

of

growth—

industry

enough margin to

at¬

capital to

fi¬

expansion

key

obviously

so

unsatisfied markets
natural gas.

more

to

natural gas
of

state

necessary

pleading for

the

future

of

the

industry, the question

whether

natural

dustry

that

so

meet

can

gas

crisis

any

in¬
that

in

or

the

traverses the heart of
producing areas of the

coal

of

an

financial

s

rising cost of senior

lying

outside

control

by

this

attitude.

trative

First,

confusion

reasons

effect

generally.

the

accompa¬

slow¬

Then

there

in
of

sense

money,

Act itself. These

precedures

MINERAL

FUELS

SOURCES

certainly

intelligent

understanding of what ittkkes to

AND

OF

WATER

ENERGY

capital.

^

which

•

.

,

100%

"* *

,1920

<

-

V

7"

Noble, Tulk

ANGELES, Calif.—Edward

of

Noble, Tulk & Co., 618 South

Spring

has

joined

Street,

members

time.

some

The

formulation

of

is

Spencer

Trask

vl940

•

amount

In

addition,
probably be a cer¬

of

government

i.

„

Co.,

will not know
anticipate.

rates1 to

NET

*

Detroit

RECOVERABLE

PRODUCTION

1991

»'

IN

THE

as

This

rgas,

properly
fence

Gas

&

now

Co.,

of

the

Stock

with

Ford
New

RESERVE

OF

UNITED

NAT'JRA!

STATES

78.2%

....

)•

for natural

i

;

.

■; j

!>

■

i

I

.,

i

-

perhaps

belongs more
Mr. Oats' side of the

on

in

today's discussion.

*•<

Cer¬

tainly market expansion will de¬
pend

to

extent

some

gressiveness

on

the

ag¬
53.1 %

foresightedness
distributing utilities, How¬
ever, we are all familiar with the
rgreat growth in gas sales during
and

•of the

Tecent years,

both from expanded

39.0%
36.4 %

•existing markets and the opening
•of

market

new

that of house
'that
rgas

by pipeline

areas

♦extension. Just in

one

field alone,

heating, I might note
206%

the number of homes using
for heating more than doubled

"in the last decade.
All

of

the

country,

except the

"Pacific Northwest and Maine (and
■my

hopes

company

to

do

some¬

thing about Maine) now has nat¬
available, but not in the
•quantities needed. The gas plan¬
ning division of the Petroleum
ural gas

-Administration

for

Defense

♦.7%
4.0%
3-2 %
1900
TOTAL

1920

ENERGY

7,893 TRILLION
B.T.O.'S.

1940

TOTAL ENERGY
,

TOTAL

21,956 TRILLION

25,218

B.T.O.'S.

1951

ENERGY

TOTAL

TRILLION

ENERGY

,38,635 TRILLION

B.T.O.'S.

B.T.O.'S.
.

'.-fx,.'!

v

-

re¬

cently issued a year-end report
predicting that the total peak-day
requirements of gas utility cus¬

PRINCIPAL
MINERAL

FUELS

tomers v/ill be 50% higher in the
Winter of 1955-56 than

SOURCES

OF

AND WATER
1940

—

ENERGY

SUPPLY

POWER-UNITED STATES

1950- 1951

during the

1951-52 winter.
The market potential is obvious.

"The

gas supply is available. So,
i v e n intelligent governmental
regulation that will make possible

;g

the continued attraction of
money
l'or; expansion, I foresee a further

broadening of the
increase

«n

nation's

in

energy

by natural

gas market and

the

ratio

supply

of

the

provided

TRiLooN

gas.

However,

though I

fore¬

:

this

see

of gas

that

greater physical volume
going to market, I believe

the

increase

money

in

the

trillion^;!;

return
same

will

PRODUCTION




T

*35

not

proportion

Including L. F. Terry.

Til::
in

*9«0

'950

1951

90u*<t, v. 5

2

8.o

Touring »93S

even

1940

tu*t«i

Of

»950

1991

1940

i

i

i

i

•

'40

1

'45

I

I

I

»

I

facts", a statistical record of the

GAS UTILITY INDUSTRY,

1951.

I

'50'5I

1950

source: "gas

Main

Watlih|g;
Buildihg,.

York

Exchanges.

08.9%

Markets

markets

to

Witfet

340

Watling, Lerchen

Kriegsmann is

members

we

&

DETROIT, Mich.—Arnold' E.

re¬

is

interest

affiliated

now

(Special to The Financial Chronicle)

Lerchen

accomplished,

the

•

i l p

With

funding, which of course affects
senior money rates, and until that

PROVED
'

staff

of

Street.

pe¬

uncertainty will probably

slow and careful.

tain

a

Massey

rii'

Natural

the

Angeles Stock Exchange.

-

'

-

even

WORCESTER, Mass.—Robert K.

every

plans by companies during

POWER —UNITED STATES

1900-1951
1900

'

innate

the banks of

on

-Appalachians.

Now

the
man,

Mawood

Los

company subject to the act must
live. The settling down will take

what

SUPPLY

might

J.

the rules and

are

under

in¬

gas
I

Potomac, is unshaken.

LOS

for

a

to¬

regula¬

natural

faith

my

Joins

the adminis¬

that

and

two

(Special to The Financial Chromcl*F ; *

nies any new Washington Admin¬

ing

that

the

pipeline construction.
number of

are a

will

the

favorable

a

of

common

the near-term

there will also
an

add

position,
I think that, comparatively
speak¬
ing, 1953 will be a rather slow

There

the

bring

dustry is excellent. And

looking

to

year for gas

and

to

though he dwells

been

generally into the future.

be

capital,

the need for

expansion

the

Problems

rather
as

how

capital to accomplish the job can
had, the outlook for unlimited

governmental

have

I

know

be

to

But

riod of

attract such

of

of

the natural gas in¬
the gas reserves, a

market,

tory atmosphere under which the

industry itself.

far

tional
poses

in

be adequately handled

can

the

So

together with the need for addi¬

equity

necessities

industry.

the wind

up,

ready

gether. Given

All of
fair and

approach

1954-55,

catch

Spencer Trask Adds

understand these simple economic
facts of life.

as

the

realistic

transmission

even

than

by

(Special to The Financial Chronicle)

the Federal Power Commission to

use

extremely

Summing
dustry has

money.
a

the sails will

any

will be(

year

up

administration of the Natural Gas

non-producing areas of the
nation, lies within the ability of

The

senior

of

case

this certainly argues for

made

from there.

20

the road.

equity capital will
be
influenced
by

undoubtedly

than

■

PRINCIPAL

in the distant future.
am concerned, this ap¬
plies fully to the gas pipeline por¬

Instance,

lag experienced this

scarcity in

CHANGES PERCENTAGEWISE IN

anay arise
.As far as I

tion of the gas industry. The pipe¬
line system of my company, for

cost

for

also

expan¬

transmis¬

gas

industry. I predict that

more

and

of

era

is the problem of stabilizing the
rules, and procedures within the

to

'

the

The

but

down

more

another

the natural

be

is

gas

sufficiently promising to warrant
•continuation

or

istration is bound to have

the

advantages
the

on

governmental

transmission

demanded by

quality

substantially increase

prospects,

the

require

alert

had in abundance

to

lay the pred¬

for

sion of

appraisal of

regulatory decisions to
extent, perhaps,

pressure

will

and

must

nance

gas reserves

•deeper into Mother Earth.

primary difficul¬

upward

present

then

earth.

on

the

the attraction

their

position is that the more
greatly in¬ natural gas we bring into those
areas
that
can use
creased since geologists now know
it, the more the
that the probability of discovering use of natural gas will be accel¬
erated.
We
have
the
advantage of
:gas rather than oil increases with
the depth of the well. And wells an aggressive industry, of a con¬
stantly
flowing
•are being drilled
supply, and of a
deeper and
more

face.

we

fied—that if the natural gas pipe¬
lines are not to be chopped off at

Our

with the chances of finding more

;and

are

ties

to

term
years

senior

as

Power Commission to realize that
if more customers are to be satis¬

these

best fuel

realistic

a

well

as

sary funds for
is
imperative

our

oil and gas

capital

sible

or

compete

of

regulatory practices to make

marginal
miles of land area overmarkets will improve. I look for
sedimentary formations
more and more people, those near
bas been thoroughly explored by
the big ports as well as the in¬
the drill. Given the incentive, I
believe the successful search for landers, to turn to what we con¬
square

equity

money
careful

price of oil has also been rising,
as has the
price of coal, and I be¬
lieve the ability of natural gas
to

lack

Regulatory Practices

sea¬

haul

the

Constant

inland markets nat¬

the

market's

money

Washing¬

new

greater

coal from the seaports
inland market.
The field

the

and

attract

can gas.

of

either oil
to

sion

far have been

so

understanding of what it takes

ural gas has a distinct
advantage
pricewise because of the big labor

content

the

seacoast.

lion BTU's at the

and natural

icate

costs

pared with fuel oil because oil can
be sold at a lower cost
per mil¬

ports than

continues

trend

have

gas

ton Administration with
respect to
government refunding, but also by

again.

necessity, rather broad. But, as the adequacy of earning power of
every
other industry, the such companies as ours. And such
natural gas transmission
industry earning power will be appraised,
also has problems. Senior
not
only with respect to near
money

Natural gas in these marginal
markets, such as Boston, Bridge¬
port and Providence, for example,
now is a
premium fuel when com¬

much faster

a

liquids. Geologists tell

gas

if

natural

discovered

been

will also

sions taken by the

all

over

45

I expect 1953 to be taken
up
with these basic
problems, the so¬
lution of which will

does

position of natural gas when it is
brought far from its point of ori¬
gin to the marginal markets along
eastern

will be

of

know

that the field price of natural gas
has risen. This, coupled with vari¬

the

The cost of senior
money

influenced, not only by the deci¬

upsets that balance, we will start

rather rosy, I must admit, and also

reserves,

will extend well beyond the pres¬
ent

economy of this nation
balance. If something then

in

My comments

prominent ous other restrictive factors, has
geologists consider that the supply reduced the competitive price
gas

fuel

the

13

page

(817)

,

'■

and

-*1

*
■

•

Mi

i

46

The Commercial and Financial Chronicle

(818)

Continued from

That

is

why

to

eyes

would

in this hour of
of friend and foe
will be turned upon the new Ad¬
ministration to see whether it will

first page

history the

A Free World Can't Trade

provide the kind of leadership so
desperately needed.
What our foreign friends want
and need today is not American
pabulum spoon-fed from a silver
icans. It is the problem of how platter. They want consistent, re¬
only to New York in the dollar
American
leadership
to provide an economic founda¬ sponsible
value of goods handled.
tion for a healthy free world— doing the things which will help
We face the prospect of a great
them
to
solve
their
problems by
hbw to achieve strength and se¬
northern seacoast and deep-draft
their own efforts.
curity for our nation now and in
ocean shipping
in the industrial
Fortunately
the
new
Adminis¬
the future.
and agricultural heart of America.
If we don't get the right answers tration comes to power at a time
Buffalo, Cleveland, Detroit, Chi¬ to that
when the climate of opinion both
one, questions of car mar¬
cago, Duluth and other port cities kets or cheese markets, or any at home and abroad is ripe for an
of our vast inland sea will take
other markets won't be very im¬ overhauling of our whole outlook
their place with such great trad¬
on foreign economic policy. From
portant.
ing names as Hong Kong, Buenos
The heart of this whole matter, both the old and new worlds we
Aires, Capetown or Suez.
as I see
it, is that if the United hear in mounting volume the cry:
That is no idle dream. That is States does not supply markets for Trade, Not Aid. These people want
what I confidently believe the St. the nations of the world which are to buy from us. They want to sell

On

a

One-Way Street

Seaway will mean to not yet caught in the spider's web
if Canada is forced to of Soviet Russia, those nations
cannot exist as free nations and
go ahead on it without our longawaited cooperation. I hope that will sooner or later—and maybe
this
farsighted
action
of
our not so very much later—be drawn
neighbors to the North will shake into the web, one way or another.
us out of our lethargy and
per¬ Russia's price will be heavy—and
suade us to pull our full weight very, very hard on us.
Ever since 1946 or 1947, when
in
this
mutually advantageous
our country awakened to the de¬
project.
signs of Soviet Russia, We have
It is not hard to imagine how
tried to unite and strengthen the
St. Lawrence trade might enrich
free world, and to prevent further
and
diversify
our
midwestern communist inroads upon it. At the
economy. Certainly it would color same time—perhaps half by acci¬
Lawrence

us,

the

even

whole fabric

of

our

life, and

half

dent and

on

purpose

—

we

bring us closer in understanding have persuaded the free nations
to
our
friends
throughout the
largely to abandon long^estabworld.
lished and vital
trade patterns
This discussion comes at a time, with the Soviet orbit and seek

of West¬ new patterns in the West.
In
this
constricted
economic
passed into
the hands of a new American Ad¬ pond of the free world, the United
ministration. Too many of us — States moves like a gaint whale.
moreover, when the fate

Civilization

ern

businessmen
been

has

and

others

have

—

talking about what we ex¬

pect that Administration to do for
us.

I believe we

should all instead

be thinking of how we can help
our

government do its tremendous

job.

With each lazy

swish of his tail,
the smaller fish swim for their
lives. And if the whale begins to
thrash about in earnest, his neigh¬
bors are in danger of being flung
—not just up the creek, but com¬
pletely out of the creek.
In 1949, you remember, we had

us. But they don't want to be
bought and sold by us.
!

to

a

businessman, I am natur¬

us and the free world grow
in strength and unity? Or does it

help

a

the

of

havoc

with

countries

which

de¬

help Stalin in his drive to divide us.
and destroy the free world?
It should not be hard, therefore,
Specifically, I believe we must to understand the fear we arouse
carefully weigh all of the many in those who have become so de¬
domestic and foreign actions of pendent upon us—or so vulner¬
this country which affect the eco¬ able to us.

nomic, and hence the political and
military, strength of our allies.
It

seems

economic

to

me

that

interests

our

be

put

something like this: Our first

con¬

can

must be to maintain

high
level of production and employ¬
ment in a solvent and expanding
American economy.
Next, from
that 'sound
economic
base, we
must work aggressively to
strengthen the free-world front
against Communist aggression.
cern

Should

a

Expand World Trade

Both these efforts

can

be served

importantly, I think, through the
expansion of world trade.
Let

me

U.

Should

Clearly, if
to

throw

with

us,

Be

Leader

we

in

want

their

in

our

assure

lot

abandon their historic
and break down their
we

must

them that the United States

will be

a

responsible and reliable

leader. We must above all
them

friends

economic

markets,
protective trade barriers,

that,

assure

having cast in
their lot with us, they will not
find us
returning a year, two
years or ten years hence to eco¬
once

nomic isolationism.
Stalin
maintain

make myself clear. No¬

body is more anxious than I
to sell cars, expand
markets,

S.

Expanding Free Markets

broad'

economy.

doesn't
a

thing

stable

we

can

free-world

At the Congress of the

am
Communist Party in Moscow last
add fall, he predicted that, in time, the

our

we
ex¬

world

can't trade

on

a

in his other pre¬

as

dictions.
>

There is

only

Create

Atmosphere to

an

Help

Europe Solve Its Own Problems
We have

one-way

1

street.

business

desire

no

other

of

run

the

countries

for

to

solving all their
problems, but we can at least cre¬
atJthe high level of trade whicn ate an economic atmosphere which
the free world needs. The closing will
kelp them to solve their own
of the gap and higher trade can
problems.
only come about if the United
As a first step, I believe that
States increases its imports at a this
country can and should step
far higher rate than its exports.
forth boldly
and lead the ffee
really satis¬
factory answer to the dollar gap
one

Americans have

fondness for

a

In industry, we like noth¬
ing better than to set a production
or sales goal and then
go out and
surpass it. I see no harm in sug¬
gesting that we set as our first
goal in the drive for an expanded
trade an expenditure of 2% more

them

of

national income—two cents

our

of

out

dollar—in

every

buying

goods and services from abroad.

$5

alone lost

to

billion

$6

a

to

year

An

between

stands

and

attack

the dollar

on

to lower

this

by

must

gap

be
spearheaded, I think,
really honest and earnest

by a
effort

tariffs and elim¬

our own

inate the deadlier forms of

restrictions which

trade

employ.
part would
be intensely encouraging to our
foreign friends. We would greatly
strengthen our position in urging
Such actions

them

to

strictive

hard
cede

abandon

their

practices

and

which

measures

own

re¬

take

the

must

pre¬
in the

of trade

flow

rich

a

we

our

on

free world.
I want to make

our

us

try

effective

country

clear

What

to

or

world toward freer trade!

goals.

friends.

of trade. Great Britain

in this

wrong

bigger and better give¬
away programs.
That's just an¬
other way of saying that the free

industrial plant of Western Europe

a

myself perfectly
point. I am not urging

on one

action

of

course

which

I

feel

quarter of her national wealth.
Yet, during
the war, Europe's

about it?

population continued to increase
and by 1945 there were millions

that

of

should do to solve her

own prob¬
lems and contribute to solving this
problem of expansion of world

the contrary, that's
just what I'd like to see us get
away from.
I am convinced that
a considerable growth in our for¬
eign trade—imports as well as ex¬
ports—would be a continuing shot

trade.

in the

a

new

As

a

mouths to feed.

result, must countries

were

not able to feed, clothe and house
their people decently, and West¬
ern

that

goal,

There

the breach with billions of dollars
but

brought

no

basic

suffering
improve¬

ments.

The four-year Marshall Plan,
begun in 1948, aimed in a more
basic way at restoring Europe's
productive power.
It produced

really

important results.
Under
its powerful prod, Western Euro¬
pean
industrial production rose

can

we

do

would

benefit

are

a

great many things
can
and

herself

others

at

our

ex¬

On

pense.

What Europe Should Do

munist infiltration. We rushed into
of relief aid which eased

what

and

Europe

Europe became ripe for com¬

whale's

pend heavily on their exports to

subsidize

ports by

and wrecked the established fabric

mild business recession—a mild

swish

Unless, that is,

us.

rather

We would just about make it
Most of us will pretty gener¬
if we could achieve the same 5%
ally agree that economic aid was ratio of imports to national income
clearly necessary in the years im¬ which we had back in 1929—a
mediately following World War II. ratio much lower than in most
The war damaged much of the countries. It would mean
another

45% between 1947 and 1950, and
today is about 50% higher than
tail, so to
ally concerned with the foreign
in 1938.
speak.
In
the
latter
half
of
that
and
domestic economic policies
What we have done in these
year, our gross national product
which affect my business. I want
fell 3.4% below the level of a year efforts is, in effect, to make up
to do those things which will en¬
earlier. We called it merely a re¬ the difference between what our
able our company to be successful
friends must buy in order to keep
adjustment. I wonder what our
and, at the same time, serve this
foreign friends called it. Because, going and what they could pay for
nation's best long-term interests.
in this period of
"mild adjust¬ by sal^s of their own products.
I believe all of us, whether in
ment" in the U. S., merchandise The bill presented to the Ameri¬
can taxpayer for
industry, labor,
agriculture or
closing this "dol¬
imports from the Marshall Plan
government, must view national countries fell almost 22%. Britain lar gap," for Western Europe
policies in view of the over-rid¬
dropped about 21%; Italy, 27%. alone, amounted to $16 billion
ing fact of our life today—our The shock was felt all over the from, the start of 1948 through
mid-1952.
total ideological struggle against
world. Chile's sales to us fell 36%;
aggressive communism.
Since Korea, military aid ship¬
Australia's, 44%.
In our every action, this must
Sharp fluctuations in our pur¬ ments have made up an increas¬
be the deciding factor: Does it chases of raw materials also
play ingly large portion of our foreign
As

sell to

Thursday, February 19, 1953

...

to

arm

our

whole economy.

Could Absorb $5 to $6 Billion

More Imports
Increased emphasis on produc¬
tivity, on incentives for domestic
I believe that we could easily
and foreign investments, on com¬ absorb another
$5 or $6 billion
petition and elimination of re-r worth of goods from abroad each
strictive- marketing practices, on
year, and that if we were able»to
sound,-, financial and budgetary do that, business would benefit,
practices on reduction of Europe's labor would benefit, agriculture

trade barriers— all of

own
are

required in Europe if

these

would

benefit, and the consumer

means
all of us—would
certainly benefit very materially.
I
don't
believe
that
United
would, help a lot if private en¬
terprise were given an opportun¬ States industry as a whole need
ity tcf do many of those things fear either the dropping of tariff
is

found.

be

to

which

state

And

cure

—that

it

planning

has thus far failed

a

.

in

Europe

to^accomplish/

barriers

or

duction

and

things that
do, and by doing
hope to exert much

stronger influence on our friends
to do something about their own

our

have

restrictions.

just

,

But th<pre-are some

them

we

can

can

competition

of

pro¬

among

friends abroad.

our

we-ourselves

increase

the

When
dous

consider the tremen¬

we

power

and

system,

the

productivity of
great edge we

the rest

of the world, it

on

sensible—and certainly

isn't

it isn't

courageous—to shake with
that we might
the production of our allies and run into a little competition.
Right now, responsible Ameri¬
former enemies so that they can
stand on their own feet in com¬ can industries are actually helping
petitive world trade, We have at their foreign counterparts to im¬
the same time maintained trade prove their production and be¬
barriers which make it harder for come more effective competitors.
We

are

While

we

in

a

very

have

odd position.
build up

helped

fear at the thought

,

For example, the Ford Motor
them to sell to us—their biggest
that such
Company several years ago began
potential customer.
until our allies
Take the case of Japan—a fore¬ importing
and
selling
several
are able to support their own mil¬
most bulwark against communism thousand English-built Ford cars
itary efforts adequately. We get
in the Far East. Japan must trade a year. While we naturally are
a
very high return
in military in order
to live.
We have spent concerned with making a profit
security from these foreign aid
hundreds of millions of dollars a on these cars—a rather small one,
dollars, because they make pos¬
year to keep Japan alive and to
actually—we also feel that we are
sible a great strengthening of the
rebuild
her
economic
strength. encouraging the English company
free
world's
effective
military
Japan in return has cut off most and British industry generally to
forces.
of her once-rich trade with China, become more
competitive and to
though it means paying
much earn some American dollars as
Anxious to End Large-Scale
higher prices for raw materials well.
Economic Aid
'
and losing an important market.
What we're doing, in effect, is
Our concern for the well-being
If Japan is to stay in the free
of our friends continues as strong
helping expand a market for for¬
world column, she must expand
as ever,
but we are anxious to
eign-built cars, and teaching pos¬
her trade with the free world or
see an end to large-scale economic
sible future competitors how to
aid. Aside from our desire to get go on being subsidized by the sell the American market.
American
taxpayer.
The
only
rid of the tax burden that this eco¬
That may sound strange on the
other way she can live is to tie
nomic aid involves, many Ameri¬
in her economy with the Soviet surface, but it makes good busi¬
cans and Europeans now believe
ness sense. Progressive industries
bloc.
that this kind of aid can no longer
Yet increasingly ^severe restric¬ know that one sure result of free
contribute effectively to economic
tions have cramped Japan's trade trade
with * a
recovery in the free World.
prosperous
free
free
world.
It would be simple for us to with the
Recently world is a

aid.

aid

Most

is

of

us

agree

necessary

resolve this portion of the dollar

British

Commonwealth

greatly expanded

•

ket for the goods

ports sink to the level of imports.

in

industry

But that would scuttle the Euro¬

curtailed Japanese imports in or¬
der to conserve their foreign ex¬

We

could

just let

our

ex¬

tracing with

us,

mar¬

areas,

partly because of their

gap.

difficulties
have sharply

Now

wants

of

which American

to sell.

course

it

follows

that

satisfy the needs of consumers for free nations of the world will de¬ pean defense effort and strike a
if trade is good for American in¬
blow at the whole
free
world change.
At the same time, our
better
transportation at
lower stroy each other through what he
dustry, it is also good for the
economy.
Furthermore, that so¬ ; own Tariff Commission is
costs. But I have not come here to called "inevitable"
being
capitalistic de¬
lution would certainly not be in
American worker. There is a very
talk about foreign trade from the
pressions and a naked struggle for
! flooded with requests to keep out
the interests of our own economy.
viewpoint of an automobile manu¬ markets and economic existence.
intimate relationship between full
' */.
For, as our defense production such imports.;
facturer eager to expand his mar¬
There is just a small grain of falls
trade and full employment. In the
off, we must find markets
Among Stalin's predictions was
kets. The question is far
larger truth in
what he says. It might for our added productive power.
the very grim one that the free expansion of trade a few ineffi¬
than the short-term interests of
One potential source is the expan¬
the Ford Motor
world could not absorb the export cient organizations may suffer,
Company, or the happen that way if this nation sion of world trade to
higher
automobile industry. It is a prob¬ fails
in
its
but a great many efficient enterresponsibilities
of levels.
But, in order for others capacities of Germany and-Japan.
lem common to all of us as Amer¬
leadership.
to buy from us, they must be able It is up to us io prove Jaim as
Continued on page 48




Volume 177

Number 5196

.

.

The Commercial end Financial

.

dhronicle
(819)

The

Indications of Current
Business Activity

week

AMERICAN IRON AND STEEL INSTITUTE:
Indicated

steel

Equivalent
Steel

operations

(percent of

capacity).

42

gallons

Crude

Gasoline

Feb

stills—daily

output

(bbls.)

average

(bbls.)

Kerosene output (bbls.)
Distillate fuel oil output
Residual fuel oil output

,

;

(bbls.)_
(bbls.)

-

n

■Stocks at refineries, bulk
terminals, in transit, in pipe lines•

Finished and

Kerosene

Month

Year

Week

Ago

Ago

unfinished gasoline

(bbls.)

Distillate fuel
Residual fuel
ASSOCIATION

(bbls.) at

oil

OF

(bbls.)

at

101.0

BANK

*2,248,000

2,248,000

2,098,000

Month

of

OF

GOVERNORS
RESERVE SYSTEM—

FEDERAL

January

(in

7

BANKERS'

6,521,850

Feb.

7

Feb'.

7

Feb.

7

Feb.

7

2,684,000
10,178,000

Feb.

7

8,808,000

116,834,000
23,232,000

6,522,300

6,463,300

6,362,700

6,933,000

7,117,000
23,768,000

21,446,000

Imports

2,632.000

Exports

23,329,000
2,952,000
*

Feb.

7

Feb.

7

ENGINEERING

DOLLAR

•OF

NEW

YORK

ACCEPTANCES
of

(no.

3,080,000
10,900,000

10,544,000

Domestic

9,350,000

shipments

8,907,000

Domestic

warehouse

Dollar

140,741,000

147,941,000

23,292,000

7

78,152,000

21,257,000

.Feo. '7

82,148,000

26,234,000
94,323,000

U.

S.

Private

45,807,000

46,356,000

48,876,000

39,210,000

of cars).

011

goods

credits

stored

and

shipped

Feb.

7

690,744

697,616

Feb.

688,232

7

733,919

671,765

.666,479

578,418

686,397

construction

Feb. 12

construction

State

and

Feb. 12

182,565,000

Feb. 12

85,223,000

municipal

OUTPUT

(U.

S. BUREAU

OF

BUSINESS FAILURES—,DUN
'INC.—Month of

(tons)

*

DEPARTMENT

STORE SALES INDEX—FEDERAL
SYSTEM—194 7-45) AVERAGE = 100

$233,505,000
127,607,000

Construction

165,860,000

105,898,000

Commercial

53,601,000

97,476,000

101,414,000

u

61,718,000

81,62'*:,000

20,yoi,0U0

64,446,000

44,180,000

Feb.

7

8,535,(500

*8,875,000

9,600,000

Feb.

7

10,585,000

652,000

628,000

667,000

Feb.

731.000

7

118,100

*110,700

110,800

•

Retail

number

1

7

88

86

Total

FAILURES

(COMMERCIAL

AND

INDUSTRIAL)

—

DUN

'8,147,461

,129,038

Feb. 12

200

159

8,121,357

7,439,767

158

125

4.131c

4

BRADSTREET, INC
IRON AGE

Feb. 14

■

Finished

COMPOSITE PRICES:
steel iper lb.)

Feb. 10

Pig iron

4.376c

(per gross ton)

4.376c

4.376c

Feb. 10

$55.26

$55.26

$55.26

Feb. 10

$52.72

$42.00

$42.00

$42.00

$42.00

Scrap steel (per gross ton)
METAL

PRICES

Electrolytic

(E.

&

M.

J.

QUOTATIONS):

Retail

service

number

liabilites

-

liabilities

!

.

;

liabilities

Total

liabilities

liabilities

—

24.200c

24.200c

Feb. 11

34.725c

34.925c

'Straits tin
Lead

(New

York)

at

Feb. 11

(New York) at
(St. Louis) at-

Lead

——r-

Zinc

(East St.

Louis)

at_

24.200c

24.200c

34.475c

121.500c

121.500c

121.500c

'Feb. 11

121.500c

13.500c

13.500c

14.500c

19.000c

13.300c

13.300c

14.300c

18.800c

Feb. 11

11.500c

11.500c

13.000c

19.500c

.

CASH

::

Railroad Group
Public Utilities Group

"

Industrials
MOODY'S
U.

S.

BOND

YIELD

DAILY

COMMERCIAL

———

i

——

95.60

95.66

95.75

96.82

Feb. 17

108.16

108,34

109,06

109.97

RESERVE

As

Jan.

112.56

114.66

111.25

112.93

107.44

107.62

108.52

108.70

Feb. 17

103.47

103.80

103.97

103.97

All

Unfilled

OIL,

Payroll

109.60

111.07

111.81

113.89

Feb. 17

2.81

2.81

2.80

2.72

—Feb. 17

'3.27

All

3.26

3.22

3.17

Durable

3.03

2.92

Nondurable

"

at

DRUG

end

of

period

REPORTER

PRICE

Number of
Dollar

3.02

3.31

3.30

3.25

3.24

3.54

3.52

3.51

3.51

3.39

3.38

3.37

3.37

3.30

3.28

3.23

3.19

Feb. 17

3.12

3.11

3.07

2.96

Feb. 17

410.4

404.7

405.2

438.3

331,971

234,876

1295,157

239,542

238,012

240,713

1260,644

207,274

Feb.

7

7

94

94

183

85

Feb.

7

545,961

455,086

1512,208

438,915

orders

107.90

shares

—

936,826

29,455
841,854

$40,936,217

$37,867,235

r

Customers'

short sales

Customers'

short

Customers'

other sales

sales

c

i

__

shares—Total

ui

108.63

113.02

26,709

758,703
$33,201,396

1,104,620
$50,511,207

25,829

25,868

31,106

137

123

85

219

25,706

25,783
734,213

80,887

,

'

'710,123

4,295

'!
-Jan- J1

875,269

4,101

2,568

8,382

812,688

706,022

$32,267,391

$28,710,584

731,645
$26,981,457

866,887
$37,700,924

Jan. 31

219,520

...

195,800

234,940

246,590

Other

sales

O'Axi'.

ROUND-LOT

Jl

219,520

2~34,940

195s 800

246,590

by dealers—
STOCK

SALES

ON

THE

NEW

Round-lot
sales

Other

sales

MEMBERS

•

350,340

J1

;

334,050

241,260

446,650

(SHARES):

FOR

ACCOUNT

OF

257,290

288,990

197,020

343,160

jan, 24

7,242,340

8,586,020

9,422,640

7,499,630

8,875,010

7,223,140
7,420,1(50

24

9,765,800

MEM¬

All

Short

sales

Other

sales

Total sales

Short

sales

Other

sales

Total sales

the

initiated off

the

FAIRCIIILD
INDEX

sales

Short

sales

Other

sales

account

Piece

Women's

NEW
=

SERIES

U.

S.

Home

108.7

108.2

145.3

104.2

16,622,000
9,507,000

16,539,000

15,890,000

9,368,000

7,115,000

7,171,000

8,976,000
6,914,000

S.

DEPT.

$72.36
_

„

*$70.78
*76.82

72.71

*62.83

6045

41.8

41.2

42.7

*42.0

40.7

*40.2

39.9

*$1,718

($1,636

$1,731
1.841

goods

1.574,

1!>35-:W

100

—

.

*1.829

1.723

1.563

1.515

RETAIL

PRICE

'

(COPYRIGHTED)

.

and

;

.

—

1

;

silks

wash

Blankets

goods

:

.

,

161,470

and

comforters

:

and

:

bra.s3ieres
,_r

Underwear

•Shoes

Shirts
Hats

and

195,330

Clothing,
Shoes

Infants*

13,000

184,500

231,910

caps

20.900

15,200

16.100

203,730

135,550

Shoes

206,450

175,140
190,340

235,520

216,730

251,620

Furniture

267,947

299,550

446.130

Radios

44,020

28,420

55,510

overalls

children's

;—.—

414,361

Electrical

"469,871

China

1,296,377

1,228.546

1,660,310

226,390

148 680

266.940

1,240.670

1,055,853

1.446,031

1,340,627

1,467,060

1,204,533

1,712,971

OF

404.8

105.9

107.7

107.5

109.2

90.3

90.4

"91D

108.4

108.6

110.9

95.0

95.0

95.8

102.0

101.5

104.8

120.3

120.4

123.4

94.8

94.4

—
..

—

—"

..Feb. 16

109.5

appliances

97.9

96.9

107.3

107.9

92.9

93.5

97.7

99.4

99.6

108.6

108.4

97.5
104.2

104.4

Feb. 10

04.4

93.4

99.3

of

Jan.

1,

figure.

1953

as

("Includes

557,000

against the Jan.




barrels

1,

1952

of

foreign

basis of

crude

runs.

112.8

fBased

108,587,670 tons.

100.7'

112.8
on

new

annual

—>—

112.8

canacitv of

}Ten days ended Dec.

31, 1952.

117,547,470 tons

.

101.1
103.5

106.8

INDUSTRIAL PRODUCTION BOARD OF
ERNORS

OF

THE

FEDERAL

SYSTEM, 1985-39
.Seasonally adjusted
Unadjusted

MIDLAND

1(M)

—

110.2

111.5

102.4

102.4

100.2

TREASURY

MARKET

RECT

AND

OF

S.

U.

of

.
.

102.8

105.4

106.6

109.9

102.9

102.9

103.0

103.0

! 102.9

109.8

109.8

112.2

108.2

108.0

108.4

118.4

118.0

120.0

101.1

101.1

103.0

,

100.8

IN

s&les

Net

purchases

——.w

GREAT

101.2

235

*234

2*8

233

•235

227

£29,808,000

£6,676,000

£5,587,000

BRITAIN-

TRANSACTIONS

of

101.9
106.6

101.2

.

Dec.:

LTD.—Month of Jan

GUARANTEED

'

104.8

101.3

GOV¬

-

A.—Month

Net

100.3
'

'

RESERVE

Month

*

ISSUES

BANK,

106.9

110.0

102.4

104.7

—.

.

NEW CAPITAL

109.8

98.9

104.4

Feb.16
*Revised
as

109.2

..Feb. 16

95.9

97.9

100.8

household

-

..Feb. 16

98.2

107.3

102.9

Luggage

268.843

208,870

104.8

106.2

wear-

coverings

297,263

1,164.237

101.9

106.5

Underwear

346,110

1,131,757

106.8

-100.5

100.5

-

*

102.9

—

60,640

105.3

100.2

+.

Socks

Jan. 24

.

neckwear

including
!

and

Jan. 24

248,717.

97.5

106.8
„

and

991,480

215,610

104.8

97.5

apparel—

796,150

198,700

104.8
105.3

apparel—

"Furs

390,130

*

42.2

Domestics-

279,087

—

foods

41.2
«

1:

Woolens

339,727

products

Processed

$64.40

78.61

goods-

982,270

100):

commodities

Farm

129.8

64.06

Commodity Group—
All

104.3

-

OF

goods

furnishings

Piece

Jan. 24

DEPT.

7,314,000
5,590,000

apparel

105,030

Jan. 24

—

7,583,000
5,795,000

HOURS—WEEKLY

Infants' and Children's wear________

-—•—-Jan. 24

•.

12,904,000

5,738,000

goods

apparel

611,870

Jan. 24

PRICES,

AND

goods

716,930

—Jan. 54

LABOR— (1947-49

.

PUBLICATIONS

709,010

of members—

Total sales

WHOLESALE

:

-

.

goods

Feb.

870,430

Jan. 24

Total sales

13,378,000

7,709,000

Composite index
Men's

Floor

Total round-lot transactions for
Total purchases

13,447,000

goods

—

of

648,940

Jan. 24

—

$480,000

employees in jnanufac-

manufacturing

724,170

Jan. 24

.

$539,000

Hourly earnings-

Jan. 24

floor—

sales

Other

135.230

741,490

'

i

$504,000

manufacturing

Jan. 24
—Jan. 24

...

purchases

Short

812,820

floor—

-

Other transactions

Total

on

$506,000

AVerage=100)—

Underwear

716,820

Jan. 24

transactions Initiated
Total purchases
—,

workers)

Hosiery

..Jan..24

——

Other

goods

Durable

Men's

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registeredTotal purchases

$1,742,000

Hours—

Corsets

jan. 24

tlil.

TRANSACTIONS

$543,000

YORK—

;

Aprons and housetiresses

Total sales

ROUND-LOT

6,913

t

-

sales—
.

♦6,741

manufacturing

Hosiery

Short

8,213

.

(1947-49

Durable
goods
Nondurable goods

Women's

Total

$26,208,000

Weekly earnings—

YORK

OF

$23,400,000

Avge.—100)—

AVERAGE 'ESTIMATE—U.

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT

4,249,000

$23,309,000

of

Sheets
_

TOTAL

953,000

LABOR—Month of December:

Cotton

_jan. 31
Round-lot purchases
Number of shares

(1947-49

FACTORY 'EARNINGS

Rayon

t

sales—

2,672,000

868,000

38,909

28,991

816,983

Ta„'
—Ja"'

1

by dealers—

ti-

—-Tan

Z

Round-lot sales
Number of

-Ton'

sales———

7,761.000

5,068,000

„

29,128

——

Dollar value
.

_

NEW

manufacturing

—As

"Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers' other sales
Number of shares—Total

*107.99

31,883

3,161,000

2,735,000

turing industries—

Durable

—*:
•
dan' di

value

Indexes

Nondurable
T

OF

omitted)

(production

Estimated number of

All

V,n'^i

$8,365,000

1,875,000

7,046,000

manufacturinfg

All

Feb.

Feb. 13

purchases)—

of

3.10

Feb. 17

7

$8,458,000

2,590,000
8,009,000

671

DE¬

goods

Nondurable

STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers'
Number

"

3.06
3.14

INDEX—

100

=x

,

3.07
3.15

ASSOCIATION:

—

(tons)

AND

AVERAGE

All

(

Feb. 17

Feb.

BANK

(000's

manufacturing

106.39

108.88

—

$9,107,000

50

•

OUTSTANDING—FED¬

Employment Indexes

106.39

INDEX-

activity

orders

PAINT

1949

S.

Month

—

goods

Nondurable

107.98

Feb. 17

COMMODITY

Percentage of

U.

—

COMMERCE

manufacturing

112.00

110.52

106.21

Group—
Industrials Group

PAPERBOARD
Orders received (tons)
Production (tons)

All

Durable

110.88

Railroad Group
Public Utilities

43

583

PAYROLLS—U. S. DEPT.
LABOR—REVISED SERIES—Month of

111.81

Feb. 17

NATIONAL

31

107.62

Baa

MOODY'S

of

110.34

——Feb. 17

—

68

REPORTED1

omittedi

ERAL

106.04

-

76

November:

Feb. 17

"

»

OF

PAPER

Feb. 17

—

78

EMPLOYMENT AND

AVERAGES:

•,

Aaa

•

PUBLICLY

—

CORPORATIONS

Feb. 17
;

Government Bonds

Aa

S.

PARTMENT

Feb. 17

—.

-

Group

Average corporate

U.

OF

I

1

Baa

DIVIDENDS

BY

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds
Average corporate

62

348

39'

INCORPORATIONS (NEW) IN THE
UNITED STATES—DUN &
BRADSTREET,
JNC.—Month
of
November

27.425c

-w-.^eb. 11

143

45

288

BUSINESS

.

—Feb. ll

131

66

334

647

—

,

January (OOO's

Export refinery at.,—:

-22,645,000

|

;

liabilities

Construction

copper—

Domestic refinery at

38,743,000

8,112,000

BRADSTREET,

——

(in 000 kwh.)

$492,338,000

number

number

Wholesale

87

ELECTRIC INSTITUTE:

Electric output

$491,849,000

___

147,000

89

47,579,000

$487,487,000

;

..

Commercial service
Feb.

32,016,000

56,269,000

$234,915,000
135,100,000
7,590,000
44.509,000

124,564,000

130

Wholesale 'number

$548,827,000
382,967,000

Feb. 12

&

January:

RESERVI

—

EDISON

118,427,000

,34,380,000

number

Manufacturing

and lignite (tons)-:
Pennsylvania anthracite (tons)

coke

170,078,000

$232,145,000

Total

MINES):

Bituminous coal

Beehive

$288,505,000
"

!

Federal
COAL

$267,788,000

$225,052,000
120,442,000
7,543,000
57,512,000
42,553,000

between

64,504.000

Manufacturing

construction

Public

$138,520,000

31:

exchange

Based

NEWS-RECORD:
Total

Ago

BANK

January

;

8,831,000

ENGINEERING

—

Year

Month

OUT¬

RESERVE

As

—

—

10,535,000

RAILROADS:

CONSTRUCTION

Previous

$149,004,000

___

Revenue

CIVIL

of that date:

are as

OF

thousands)„

STANDING—FEDERAL

6,421,000

149,443,000

Feb.

freight loaded (number of cars)
Revenue freight received from connections

either for the

are

Month

DEBITS—BOARD

THE

2,2,248,000

of quotations,

cases

Latest

152,493,000
22,308,000

i

at

AMERICAN

99.7

in

or,

__

(bbls.)

at___

oil

*99.7

Dates shown in first column

that date,

on

production and other figures for the

cover

of

each)

to

runs

(bbls.

average

"

month ended

Previous

99.7

Feb. 22

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate
output—daily

month available.

Week
..Feb. 22

(net tons).

or

or

Latest

to—

Ingots and castings

following statistical tabulations

latest week

47

IN

DI¬

SECURITIES

January:
—

$24,581,000

$11,696,750

$22,115,500

43

The Commercial and Financial Chronicle

(820)

irnvn
j u/

lAmunuvu

[Juyv

cases,
the few industries really
seriously affected would have an
opportunity to adapt themselves
to new conditions. We should drop

A Fiee World Can't Trade
(|m

*>r?

fltlfl.wav StFPAI

«

VH

VllC"fiay

a

WlCCl

.

•

Let's give our friends a fair
employment oppdrtunities.
crack at the American market.
By the same token the farmer,
I suppose many of you are

prises will grow and create new

important

most

whose
.

wondering how this tariff ques-

customer

l»y far is the worker in the city, tion

MehaievelTeof°emplo™ent

affects the automobile indus-

^irst let

and

'expanded trade will promote—not
to mention his very direct interest

tell you how Ford

me

free trader m our industry

wmtl

ivsii

aeaiers

«ain4j

x>~

me Consumer Will Be Helped

naa

trading

weir own
so to speak-re-

areas,

_

stncted areas in which no other
getting a
er
today? First he is hit m the business. In other words, eacn
pocketbook by taxes to support dealer was »protected"_so much
foreign
aid
programs,
which so that he could afford to take
'would not be necessary if we ex- things easy if he wanted to. Com■panded our trade. Then he goes petition between dealers of the
out with that deflated pocketbook same make was stifled, since an
and has to pay higher prices for aggressive, successful
dea er in
almost everything he buys, be- one area could not movemon
cause of direct tariffs or because
the complacent one m a neighborAnd what about the poor con-

Burner? Is he

?!
sell

able to

?

enca?41on a

relatively

s in^
*
nonOne day

•^competitive has s.
It just doesn't make sense for

SLfin

of the same makei could

fair shake dea

i would like to read to you the
the

«pportunity to all of us. This is
a rather
long quotation, but X
want to read it all, because I like
3i and I hope you will, too.
EBusiness thrives," I quote, "on

pomp

in 1921, a dealer came
to my grandfather protesting that
he couldnt sell a Model T to his

Ze

6

economv

our

ri^nipp

1Q91

a^block

about

Ms

mSndfather anna?-

rtfotrirtMv

district.

outeide

My

grandtather, appar

movedI
alljarea restrictions
Ford
dealer^ips.AuM Lucy g
her Model T from nephew that
day and soon Ford sales beganto
climb allacross the country. The
whole industry followed suit and
automobile sales were given a
tremendous boost.
So I feel I have solid precedent
m suggesting here that we apply

to ask that they act in a way
which will
shocked

the Ameri-

encourage

investor.

can

Many

of

were

us

that

recently to read
and
Uruguay had

Bolivia

sub-

should be sold on the basis of

its yearly treks through Congress, the practical self-interest.it rep-

resents.

c^

tn

which is

had

adopted,

a

well aware that of the

resolution.

formalIy approving the right of
nation to nationalize foreign

any

investment properties

S'

pw.'v

My

within

alone in opposing that resolution.
action was a direct and,

Under

ciple of free enterpri^U
are^ pertamly^notThis
mand or any other factor, only a about a millenium in world trade.
jjave heard of

j

serious pro-

a

the

crack

hard

shell of the free-

P°sal» with powerful backing, to world trade problem
a

1*glepresent
^portwter
import

quota based

^

guch

on

an

£t

immediately

only

Fnot

would

and

perman-

£fn!

The
as

lead

That

eet

out

mefns

do-

jng j;rst the things which

.o
imports
d
X aWelo

we are

WecSZ

Swelftae

to me, is the most dangerous kind
0f high tariff thinking.
America" Pressures

DrpBuy

AmencaPressures^

Third, we should abandon the

Sat
that

Is
Act
Art

Should Buy More Military Goods
Abroad

the federal

is_to

raents

arye f,riced

25% unto the

least

at

lowest

domestic

bid. Very few importers can make
th

,

'

,

number of related efforts.

ILrti„.1,ai.iv

,

after

States

I wonder
how conscience^,
the United
in good
people to invest abroad

can,

«s

ln the face of such attitudes.
One more point needs , very
much to be made at this time, in
opinion,

my

Rightly or wrongly, the Ameripeople
and
most
foreign
peoples feel that American busican

will

be

a

more

powerful

force in the councils of the new
Administration. Rightly or wrongly, the RepubUcan Party and in-

For example, the spending of dustry are associated in the minds

to nrohibit the federal

god1 some state Md ^govern-

international cooperation and in¬
ternational investment. As a busi-

ness.

Reduction of our own trade barriers ought to be supplemented by
g

^ ^

iVthaMt's up to us nessman,

free-world leader to

a

fronraM

tl lbnit
at present
ara
ieveis; it would gradually dry up
ot goin„
to solve
anvthine bv
all our trade as the pattern of
on
the difficulties and
demand-rapidly shifted away from «,mir,e nn mr tom.
rs present position. This, it seems

«Buv

worth of goods a year. BuyAmermay

cost

us

as

much

as

its

borders. The United States stood

mil}t

aid

dollars

t

purchase

a'broad_usually

goods

of many peoples with high tariffs

caUed off. and isolationism.
shore Procurement—helps a good
I think, therefore, that

a

one-

MUondollarsayeaV, according to one estimate. If BuyAmerican provisions and pressures
were dropped, as well as import
duties, an important stimulus to
imports and large savings to the
taxpayer would result.
Recently, for example, a foreign
manufacturer, after paying a 45%
import duty, underbid two Amer|can firms by substantially more
than 25% on an Army contract,
half

par-

deal to relieve the dollar gap and ticularly great responsibility falls

stimulate expansion of capacity upon American industry to give
and military output abroad.

the

new

Administration real

from n0wpurchisis about'W biflions setup-and I

competition. Nobody does his best
no one is competing
•with
him.
Comfortably tucked
away behind a tariff wall which
abuts
out
all
competition and
jgives industry an undue profit the same kind of thinking to the
which it has not earned, the busi- whole free world.
mess of our country would grow
Today imports do not sigmfiasoft and neglectful.
cantly affect the domestic auto*We
need
competition
the hiobile industry. A total of only

if he knows

I believe this trade program can

*!retty

a

prf.1+nm«hi^

in large-scale exports.

are required, it seems to me,
to encourage the high level of imports which could mean so much
to our healthy growth, and which
must precede the freeing of trade

Agreements Act, wtach has been

.

...

^kll

the Smoot-Hawley Tariff and the among the many nations who de- mitted and the Economic Com"ow outmoded Reciprocal Trade pend upon us for leadership.
mittee of the UN General Assem-

gm

Blf

^

^

'

X

hardship

in

reductions

gradual

4fi

ruine

Thursday, February 19, 1953

...

mean motor vehicles, " V think private enterprise
too—where^it is sound economy make a head-on assault on
This is

to

a

healthy, com-

petitive way of strengthening our
friends. If other countries can turn
out equipment the Army wants at
a saving to the American taxPayer, then any U. S. manufacturer who demands that the tax-

sud-

must
these

nroblems ba«?eri

on

^n0w!how

thVspMto/en-

ture

and

hi h

j

thp mana^prinT'

v

th

Y

f

ppnrinrnv

whTk'^PPdPd
than American
.

.

-nm

dollar^
ItnVid tndS-

in

effect, subsidize his
higher prices is in. a pretty unten- ^ , 5
«, ou-iness
^Knou-now.
able position.
^0WI
^
Another important attack on the m.ean Just the tricks and techdollar gap lies in stimulating mquesof mass production. I mean
greater investment
of
private our driving belief that no problem,
world over to keep us on our about 100,000 foreign cars_are now in subsequent bids, the Americans American dollars abroad. It seems is
insurmountable, and tha t
toes and sharpen our wits. The registered m the United States as oddly enough, were able to come to me that we could do a lot more nothing is being done as well as it
keener the competition, the better gainst
more than 40 million down almost 50%. That brought to promote a more favorable could be done,
it "will be for us
American cars.
them just within the 52% Buy climate for investment abroad. We
This is the one truly revolu...

.

.

'Tnstead of

buiiding

up

barriers

toMnder the free flow of world

trade,

should

we

existing
exisung

tear
«ar

seeking to

be

barriers
oarners

payer,

,

_

fn ^efi?an
The ^rmy
?houl<? at, least intensify our dip- tionary force in the world today.
C
tLll 'lmately sp}5t ll?e Purchase be- lomatic efforts to obtain fair treatWe. have an unparalleled and
^1™,^ LteTm arf
tween .the American and foreign ment of American interests long-awaited opportunity to bring
no

down
?
,
yj
g
cars xf.,.n0 firms, saving you and me about abroad, guaranties against exproaown.
ionger looked upon as oddities, half of the notential tax costs nlus
T
buying Adequate facilities for parts and
the
ImDort duUes
bv
Prlatlon of Property, and the
^

^

Prople

cannot

keep

on

cald

r^,' rcrvicing have been developed.
s£?
cai' races at Watkins
Glen. New York, and elsewhere

£0 on, our business will stagnate

same time the
v

n

n

v

+ ii

domestic
producers, taxation.
eVirmiri
^

foreign goods, I feel certain

icans has

been captured by the
high standards of performance,
wall at all....
style and engineering of European
"Why not let those countries sports cars.
which can produce these things
I think that changing circumfcetter than we, do so, while we stances and changing consumer
turn

our

we

without any

own

attention to the produc-

our

tion of things in which we excel,
That would provide work for

everybody to do the world over,
and in the exchange of these
products world trade would thrive,
bringing busy times and pros-

pertty for

us

all."

Those words

spoken

were

more

.than 20 years ago—by my grandfather

in

opposing

the

Smoot-

Hawley tariff bill in 1930.
If those words

able

todav

are—so,

to

Is

menace

the

are

I

and
a very

still applic-

believe

thev

serious degree

of

the

Smoot-

Take the case of Great Britain,
Inl937, a peak prewar year, British cars worth $325,000 were sold
in this country. In 1951, Britain
earned almost $25 million in sales
of cars to us.^ In terms of units,
§ Yas ar
5 ir\cl,eas,e"
But#as far as Ford Motor Com^an? is P?ncerned» ^e intend to
meef f°?ei&n competition in the
SacSf3?
1-1
halls
•

0^ ^he Tariff Commission.

Hawley philosophy

Get

Rid

of

10%

Tariff

O11

Automobiles

Hive Our Friends
At

the

a

American

Fair Crack

T

_11fyV.+

„.a

f_

Market"

We businessmen constantlv ap- at

Iusf

say,

let's practice what
.

»

9bt

allies
«

some
»'

us

we




those

procedures

have

penetrable

me this'^sad tale:
He had
bought 100 tons of book paper
from England, which arrived in a
Philadelphia customs warehouse
about six months ago. He went

told

down to get his paper and instead got the third degree treatment. How much did you pay for
this? Well, how do we know that's
aR yOU paid? Is that a fair market

law without loopholes encourag-

•

-

"t

nation of all tariffs., £y
is'

.

- -

#,

-

world history.
_

me say
to our friends Wi 1 American industry recog—
abroad: If foreign countries want nize and accept this opportunity?
American private capital, it's fair

I hope we will.
1

~

.

Continued from page 5

/!/.

nf

I

*

^ n

m

mm

www
Gilberts' name for the proxies named by the management, and iir
any boxes or similar space provided for the purpose, indicate
clearly how the desires to vote.
In the case of elections to office, proxies received by them
.

W1H he voted for the management slate of nominees unless they
arc otherwise instructed by the sender of the proxy, or unless im.
the case of a proxy contest the stockholder either desires them to,
vote for an opposition slate of nominees and having substituted one
of their names as proxy,, sends them the proxy form furnished by
the persons supporting such opposition slate; or else desires them=v
to use their own discretion and having made similar substitution.
of names of proxies, sends them the form of proxy furnished by
each party to the contest. Discretionary power is asked for touse in case of floor resolutions offered by others on matters not
known to be coming before the meetings and hence not described.
in the company proxy statement.
Such representation at the meetings the Gilberts furnish

hasn't got his

gratis.

paper,

and he

is

wo„dering how the U. S.
i^ WfAi?nS S
rfrA
^n^a™j p
0
{vfic

More Sandwiches and Ice Cream!
Executive compensation, pensions, stock options, stock holdJJgs by directors, management attitude toward labor, are some ot
•

the substantive items which the brothers will relentlessly explore,..
aad report on to their "wards." Considerable attention—too much,

t

The four measures I have listed

it is felt m some quarters—is also given to the "mechanics" aspect
of tbe management-stockholder relationship. Thus much is made

—-revision of tariff laws and, rapid
reduction of tariffs, outlawing of;

of the inconvenience of the location of meetings away from New
York City (even when bus transportation-cum-sandwiches are proyided), needfor regional meetings, the televising and more volum--

the quota system, abandonment of

inous reporting of the proceedings, the format (as to shape as well

slm-

making plification of customs procedures

lie

i

price? Well, in that case, is it a
fair market price in England?
Sorry, we can't let you have the
paper until we find out.
•
Now, six months, later, he still

and tag the most rapid possible elimi- Bujr American practices, and

real. good.
■

of

automobiles tm

once

plaud competition and private enSince this is open season for
terprise, and damn socialism and giving advice to the new Adminplanned economies.
We accuse istration, I guess there's no harm
our foreign neighbors of
lacking in chipping in with some of my
tbe kind of spirit which has made own.
Without going into detail,
American
indnctrv prpnf Wp im- I
would suggest that a wholeamertcaa mdustr,
great. We imhearted e£fo®fbe made alotlg the
plore them to iolio<\ our examfollowing lines: ,
pie and get off our backs. So I
First, we should write a new

MMch, where it will do

Many

the intended purpose of submerging imn0rts under a virtually im-

cascade of red tape.
They tell me that down in Washingt0n there are books of customs
attitudes might very possibly regulations just as thick as the;
place imports m a stronger com- Chicago phone book, of paper just
petitive position with our industry as fine> ancj prjnt just as small.
in the future.
Recently an Eastern publisher
,

d®

we

v

0

throughout the country, the im- promptly a workable law for sim«As for a tariff wall to shut out agination of motor-minded Amer- plifying customs procedures.

could hold

*u

so. then we can perhaps make thisforeign firm—but appeasing at the elimination of inequitable double the beginning of a golden age in.

liere at home.
^

that force into action. It

^

th!

-•

-

1

.-iv

of

ta^mleting-thM is? «S1^liSrof taf pSdtag IfficCTfsSd

^including the quantity and quality of the luncheon menu/ ("It
'
#,<
"
r».

,

w*

•!.'-f

'

■

ti;-..

r,..s

.

«■

■■

'

;•

•

'

%

was.
■

Volume 177

Number 5196

.

.

The Commercial and Financial Chronicle

.

(821)
downright absurd for National Dairy not to offer its stockholders
anything.")

Hunter

As
and

the

the

individual
of

cause

(Capt.),
Corby

freely admit, the "coverage" by themselves
self-appointed stockholder representatives of both

companies and

physical

of

corporate questions

limitations

is

Greenberg, Tisch,

Werkmeister,

Leinhard

Goodman

(Capt.), Smith, Valentine, Meyer, Farrell, Brown
O'Connor, Rappa, Seijas
Growney (Capt.), Craig, Fredericks, Bies, McGovern
Murphy (Capt.), Manson, D. Montanye, O'Mara, Pollack,

limited—be¬

and

all

investment companies should be transformed
into open-end
thus closing up the prevalent discounts on
shareholders the option of either

200 Point Club

funds;

213

7

it

6
5V2

change the
exchange
ratea
of
sterling by administrative deci¬

5]/2

sions at

philanthropy

as

well

as

cor¬

porate ethics.
Stockholders'

Union?

by the free-lancers would seem to high¬
light the constructive place of a permanent,
objective, non-dema¬
gogic shareholders' organization. Under the right
auspices (so
difficult a goal), such a body could serve both the
companies and
the shareholders by
guiding them on all the various
matters
•

that

forbidding

should

receive their intelligent attention.
And it
continuing shareholder participation in their com¬

would promote

Points

panies' affairs—the cornerstone of democratic capitalism.

from

pected

page

8

pass

that will

them

on;

improve the

service of

they will be given

the

Association, please

every consideration.

all

pound would

the

compara¬

The view is held in many quar¬
in Britain that such an im¬

provement ip

that

would

the

be

the terms of trade
highly beneficial from

t-

the point of view of the

it

lation of a gold reserve because
the loss of markets through more

to

the

ters

cona

therefore not

mean

depreciating pound but an appredating pound, at any rate for
the time being.
a

tively early
date, provided
ditions

recent

accumu-

Common¬

expensive sterling would be

wealth

Eco¬

than offset

nomic

Con¬
Dr. Paul

This

Einzig

(1) The Sterling Area gold

surplus

Convertibility

is to be

is

based

the

on

as-

the

quantity

of

exports

in terms of foreign

cur-

rcncies. No doubt this assumption
!s correct as far as many engineer-

con-

fined to current transactions of

a

heavy

and

ments.are concerned. Many

lated from past transactions are to
be
made
convertible
gradually

fPneonng,.and shipbuilding concerns could easib' increase their

nprinri

m

nf

the

equip-

Phipps

Paul

A.

Ludlam

Neil

the

D'Amico

meeting of the Security Traders
Association of Portland, the following officers were
elected:
President—Preston L. Phipps, E. M. Adams & Co. 1
Vice-President—Paul A. Ludlam, Merrill Lynch, Pierce, FenBeane.

.

,

Secretary-Treasurer—Neil C. D'Amico, Dean Witter & Co.
Dan V. Bailey, retiring
President, reported on the recent
National Convention of the National
Security Traders Association
held at Miami Beach, Fla., which he attended as a
delegate from
the Security Traders Association of Portland.
Plans
which

were

will

be

discussed

held at

San

for

this

year's

Valley, Idaho.

National

In view

Convention
of the prox¬

imity of this western location, the Portland affiliate
expects to play
an active part
in, and be well represented at this year's convention.
Plans were also discussed to
promote better dissemination of
financial information by corporations located in and
around Port¬
land who have stock in the hands of the
public in this area and

whose securities

are

actively traded here.

S.

istration

At the recent annual business

&

all

^

its

unable to quote early delivery

these. industries

an

..

undertake

■

t»r——

,1

*

'

Meyer (Capt.), Kaiser, Swenson, Frankel,
Wechsler, Barker
Krisam (Capt.), Ghegan,
Jacobs, Gannon, Cohen
Burian- <CapL)rG.
Montanye^-Voe^lk^iegely Reid




Points

15 Vz
15

13

to

of

increase

the

cost

of

to

than

to relieve

Britain

depend

on United States financial
support. Nor is the Canadian dol-

tional

exchange stability. Canada^,
example has not been followed by
any country. If Britain were to

unpeg sterling that would riieai*
the unpegging of the
currency of
the entire Sterling Area and the*,

example

would

mediately

by

be

followed

non-sterling" countries.
ton Woods
end

an

back

in

the

the

world

state

currency

enced in the 'thirties. The
only
essential difference would be that

most

unlikely

that

the

months

of

sense

of

the

Bank

of

sake

Offers

of

llliNly Bonds

Morgan Stanley & Co. heads
,

an.

.

underwriting
19)

group which is

a

would compare with the

pound would be a gamble which
Britain could ill afford at present.

of

making

view

on

the

received

part

Treasury
England officials.

of

and
This

was
because
of
the
growing
strength of sterling in the foreign
exchange market. At the time of

sterling to appreciate

or

depreci-

ate. Under existing arrangements
such
opportunities have to be
missed

Power

mortgage

bonds,

again

series due Feb. 1, 1983. The

and

again

because

3.406% to maturity. The issue was
awarded

at

competitive sale yes¬

terday.
Proceeds

of

the

sale

of

1,000,000 shares of

common

stock

by
the company
to pay
$40,000,000 of bank loans incurred
for

construction

in
1952, to1 re¬
company's treasury
and to finance a part of the com¬
pany's construction
program.

imburse

the

which is expected to require about
$70,484,000 in 1953. The construc¬
tion program of the company haa
required about $240,000,000 in the*
The 1952-1953 program
new

of J^954.
The

at

new

104.75%

u

bonds

if

and

thereafter

ing

to

isting rate and

even more

time to

to agreement, on the change
with the International Monetary

come

includes

steam-electric and
hydro-electric plants which will
increase the company's capacity
projected

the

time

will be

used

ex-

take

together

with the proceeds from an earlier

for

to

bonds

priced at 101 % % plus accttied
interest to
yield approximately

Cabinet to decide to alter the

is bound

Corp.

are

the 12 months

it

t

$25,00(1,0001

Mohawk

General

additional

form

of

Niagara

public sale

to

issue

new

a

cies

govern-

unpegging it. In

his

support

United
retro-

(Ignlau fifAlllt
invlgdll dldliltiy UrOUp

cr,

influential

a

sterling.

by about 557,650 kw.

some

be

competitive
depreciations
expferi-

free both

the

corrfe ft*

would

of

last five years.

it convertible and

The Bfet-

System would

and

im¬

large numbed of

a

What those in favor of the floatment has now adhered to the view ing pound have in mind is that
of Mr. Oliver Lyttleton, the Co- from time to time situations are
lonial Secretary, who has always apt to arise in which it would be
been in favor of setting the pound obviously advantageous to allow
long hesitation

in

totally

self-supporting and does not

tion of

ficult

This latter condition is regarded
be of considerable importance.

After

in

are

different positions. Canada is ihore

these

curren¬

resulting from an apprecia¬
sterling would constitute a
grave handicap. It is of course dif¬

do

liberalize American

__

Team—

an

.

growing

Security Traders Association of New York (STANY) Bowl-"
ing League standing as of Feb. 5, 1953 is as follows:
' r;

should

gr?w*n& foreign competition and

goods in terms of foreign

Admin¬

States

,

gains deobligation to maintain the ex- riVed from the higher yield of the
change rate of sterling within a exports : of industries producing
narrow range on either side of its
capital goods. From this point of
present parity.
view the adoption of a floating

recent

SECURITY TRADERS ASSOCIATION OF NEW YORK

a

including

Policy and procedure.

is

GbVfeira-

adoption of the
floating Canadian dollar. Whtifc
these people fail to see is that

dates. From the point of view, of fenng for public sale today _(FeU

definite opinion
(7) The International Monetary how the losses of these industries
Fund

exchange sta¬

Canadian

the

^Area

dollar.

utmost to

Tariff

the

SterUng

currencies

(6) The United

SECURITY TRADERS ASSOCIATION OF PORTLAND

ner

U.

by
and

ne

are

.

L.

bility
ment

raised

is kndWh* ft*

as

Great

appreciation
countries, especially, Italy,
of sterling would make no dif¬
Countries, Western Ger¬
ference to the quantity of their
many, the Scandinavian countries
f
and possibly France are to resume exports,
The situation is totally different,
the
convertibility of their cur¬
however, in respect of many in¬
rencies.
dustries
producing consumer
(5) There is to be an all-round
increase in the price of gold in goods, especially textiles. There is
Preston

States

far

with

other

of

United
as

optimistically

difficulty .wbUld be
Washington; Aft^r

no

the abandonment of

en-

the Low

terms

the

objections,

exports but for the fact that they

vpnrs

Simultaneously

Britaiif 7nd

lnS

Products

genuine commercial character.
(3) Sterling holdings accumu-

n

that

the price ol the limited exportable securing the convertibility of

tional Monetary Fund.

nvpr

the supporters of the idefct

floating pound

niaterially so that it is to the in- States would accept such
tnrests of Great Biitain to increase grade step even for the

creased facilities with the Interna-

(2)

by the increase of the

view

increase

re-

by dollar
supplemented by in-

and

sterling must be kept
Wishful thinkem

stable.'

sumption that under full employ- this time there would be
compfetfment and owing to rearmament tive
currency
appreciations
as
requirements it is impossible to well as depreciations. It
seems

must be reinforced

loans

more

proceeds of the remaining exports,

are

These conditions may be summa¬
rized as follows:

serve

were

of

under the termS

unlar, important as it is, of ccttndoubtedly appreciate considerably parable importance
to
sterling'
above its present rate. A floating from the
point of view of interna-

de¬

convertibility
of sterling at
a

that if sterling

means

aban¬

be

unpegged at present it would

fulfilled.

headed by Mrs. Polly Freear, Fort Worth
(Landon A.
Freear, William C. Edwards & Sons).
If any members feel they would like to serve on
any of the
committees mentioned above, please advise the Chairman of
the
committee, any member of the executive council, or contact Harry
L. Arnold, Goldman, Sachs &
Co., New York City, President, di¬
rect.
Also, if any members have any suggestions or recommen¬

is

Agreement of lSM&S tfr
observe the Bretton Woods Hlant

encountered in

When

—

clare Britain's

ference

activities

to

notice; It

not

Britain and Canada

Eng.

ex¬

to

bound

assume

to unpeg

4, This

are

Loan

of a

Mr. which rate the exchange equalizaEden and Mr. Butler will see mem- tion
account has undertaken to inbers of the United States Adminis- tervene to
prevent a further rise,
tration in Washington on March

they

is

the

among

■

LONDON,

tached

NSTA Notes

dations

were

ain

rigidly

sterling, such unpegging
would extend to whole
Sterling Area as well as non-sterling
countries, and the Bretton Woods System of limited exchange. '
fluctuations would end with, a return of competitive
exchange
depreciation.
"

by

Continued

if Britain

out

would

under which

on purpose and problems facing
proposed March conference of the British Foreign Minister
and the Chancellor of the
Exchequer in Washington, discusses
pros and cons of return to free exchange market of
sterling.

resume

"omissions"

possible

doned without the consent of the
United States Governments Brit¬

:

Dr. Einzig, in commenting

readiness to

A

Such

a

"Floating" Pound Sterling?

now by
the stockholders' suit being brought against the A. P.
Smith Manufacturing Company in the New
Jersey Superior Court;
wherein its right to contribute to Princeton
University and other
communal funds to donate
money to institutions of higher educa¬
tion is being challenged. This is
objected to on the ground that
such gift is outside
proper corporate functioning, having no rela¬
tion to, and in no way tending to
promote any of the objects of the
corporation, and that fiit would constitute the expenditure of cor¬

for the survival of free unsocialized

be

moment's

a

rangement

By PAUL EINZIG

would, therefore,
payment of a pledged contribution to Princeton is being withheld
pending the Court's final judgment.
This question is fraught with the most
crucial implications

then

recalled that this freedom worked
out
satisfactorily
durfngr

Hoy Meyer

WiH There Be

Corporate Gifts

foreign to the objects of the Company
be a misapplication of such funds." The

would

Needless to say, the present nt*-

Another question that might
engage serious consideration by,or on behalf
of, the public shareholder, for the elicitation of con¬
structive conclusions, is the
propriety of corporations to make
philanthropic gifts. This matter is rendered
particularly timely

a purpose

In¬

the 'thirties.

stockholder's resolution to this effect has been
introduced on the
fund's proxy statement to be voted on at the
annual meeting next
week.

porate funds for

not

controlled by the British authori¬
ties. The difference compared
wit|iL
the present arrangements is thane

them, and giving the
cashing-in their holdings at an

appreciation of 20-40% immediately; or else of
continuing their
participation with the continuing permanent privilege of
redemp¬
tion at such an appreciated
price. In the case of Adams Express, a

and

is

freely. It would
of speculative
temporary commercial in¬

8V2

5 Point Club

Jack Manson

it

float

fluences. Its fluctuations would

9

(Capt.), Gersten, Krumholz, Rogers, Gold
(Capt.), Frankel, Strauss, Nieman, Bass, Krassowich
Mewing (Capt.), Bradley, Weseman, Hunt, Gronick, Huff—

timely example of a question to which these
people do not
get around, is whether, where it is
appropriate, existing closed-end

adopted

or even

Bean

A

to

12

Gavin

Crucial Decision for the Closed-End Fund
Holder

be

tended

11

Serlen
A

pound

not be at the mercy

Donadio (Capt.), Demaye, Whiting,

impossibility of owning stock
companies. Thus their treatment inevitably has the char¬
acteristic of pot-shottiness.
in

12

Leone

Gilberts

other

(Capt.), Klein, Weissman, Sullivan, Murphy, Sea-

right

Incomplete Coverage

„

100%

are

.*

by the en«,
redeemable!

redeemed

during

ending Jan. 31,1954:
at price? decreas¬
if

.

redeemed

after

Jan. 31, 1982.Special redemptimi
prices range from 101.75% on or

writing the sterling dollar rate is, Fund ancf-jth'e Washington. Ad- before JanjM, 1954 to tbe pru»~
in the close vicinity of $2.82 ^;Tiiihi'stetioh. Shotrid-^he-Huatrng-'ctpal-amourit after Jan. 31, isroz.

50

Securities

Now in

if Alaska Oil & Gas Development Co., Inc.
(letter of notification) 250,000 shares of common
stock.
Price—$1 per share.
Proceeds—To drill wells.
Feb. 2

Alaska.

Office—Anchorage,

Underwriter—None.

Kansas City, Mo.
Dec. 15 (letter of notification) 1,000 shares of preferred
stock.
Price—At par ($10 per share).
Proceeds—For
working capital. Underwriter—McDonald-Evans & Co.,
Kansas City,

stock (par $5).
Proceeds—To
finance capital expenditures.
Underwriters—The First
Boston Corp, and Blyth & Co., Inc., both of New York.
378,000 shares of

be

supplied

by

common

amendment.

Atlanta Gas

Light Co. (3/4-5)
Feb. 11 filed 80,255 shares of common stock

(par $10)

to be offered to common stockholders at rate of one new

share for each 1C shares held
be

bank

loans

supplied

struction

on or

by amendment.

issued

connection

in

Underwriters

program.

Price

about March 4.

Proceeds—To repay
with company's con¬
—

The

First

Boston

Corp., New York; and Courts & Co. and the RobinsonHumphrey Co., Inc., both of Atlanta, Ga.
Automobile Banking Corp.,

Philadelphia, Pa.
shares of 6% cum¬
which a maximum
of 15,927 shares were offered on Jan. 27 first for sub¬
scription by class A and comomn stockholders at rate

Jan. 15 (letter of notification) 29,000
ulative preferred stock, series A, of

of

one new

share for each five old shares held

(with

an

oversubscription privilege); rights to expire on Feb. 26.
Price—At

par

cominon

(about $5,371/2 per
share). Proceeds—To improve plant and for new ma¬
chinery. Office—1821 Broad St., Utica, N. Y. Under¬
stock

$1).

(par

market

Price—At

writer—None.

*

•

.

'

'

*

($10

Proceeds—To

share).

per

5%% convertible sink¬

Oct. 22 filed $1,750,000 of 10-year

ing fund mortgage bonds due Nov. 1, 1962, to be offered
for subscription by common stockholders at the rate
of $100 of bonds for each 28 shares of stock held (for
a
14-day standby). Certain stockholders have waived
their rights. Price—At par. Proceeds—To repay $1,014,of outstanding notes and for drilling expenses and

500

(3/11)

^Arizona Public Service Co.
16 filed

Manufacturing Co.
(letter of notification) 15,000 shares of

Byrd Oil Corp., Dallas, Tex.

Producers, Inc.
599,000 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
—To drill wells. Office—Room 308, Texas Eastern Bldg.,
Shreveport, La. Underwriter—W. C. Doehler Co., Jersey
City, N. J.
Jan. 5 (letter of notification)

—To

Brunner

Mo.

American Pipeline

Price—To

Securities

Road, Portland, Ore. Underwriter—Standard
Corp., Spokane, Wash.

working capital.
Underwriters — Dallas Rupe & Son,.
Dallas, Texas; Carl M. Loeb, Rhoades & Co., New York;
and Straus, Blosser & McDowell, Chicago, 111. Offering
—Postponed temporarily.

if Canada General Fund, Inc., Boston, Mass.
Feb. 13 filed 1,000,000 shares of capital stock.
Price—
At

Underwriter-

investment.

Proceeds—For

market.

•

received

Corp., New York.

March 10.

on

•

filed

9

Power

(3/10)

Co.

of first

$10,000,000

Underwriters—Lehman

Co., both of New York.

Brothers and Bear, Stearns &

if Childs Food Stores, Inc. Jacksonville, Tex.
Feb. 4 (letter of notification) 20,000 shares of class A
stock (no par). Price—$11.50 per share. Pro¬
ceeds—For working capital.
Underwriter—None. Ad¬

common

Jacksonville, Tex.

dress—P. O. Box 211,

Inc., New York (3/2-6)
Feb. 4 filed $2,000,000 of 4% convertible debentures due
1958. Price—At 100% of principal amount. Proceeds—
•

Cinerama,

Otis, Inc.,

working capital. Underwriter—Gearhart &

For

Louis, Mo.

York; and White & Co., St.

New

Products Corp.," Philadelphia, Pa.

Code
1

shares of 6% cumulative preferred

filed 500,000

of common stock; (no

(par $1) and 255,000 shares

par—stated value $1) to be sold in units of two shares
of preferred and one share of common stock. Price—$3
per unit.
Proceeds — For working capital. Business —
Manufactures electrical equipment. Underwriter—None.

securities to broker-dealers for

public offering.

'

general mortgage

and

bonds, series U, due March 1, 1983. Proceeds—To refund
outstanding short-term notes and for new construction.
Underwriters — To be determined by competitive bid¬

ding.

•»

expansion program.

ceeds—For

Company intends to offer
Feb.

;

,

Maine

Central

(jointly);

First Boston Corp.

Ltd., Calgary, Alta. (3/3-5)
Feb. 10 filed 900,000 shares of capital stock (par $1Canadian). Price—To be supplied by amendment, pro¬

stock

amendment. Proceeds—To cer¬

REVISED

ITEMS

Charter Oil Co.,

Carborundum Co., Niagara Falls, N. Y. (2/26)
Feb. 4 filed 271,940 shares of common stock (par $5).

selling stockholders. Underwriter—The First Boston

19, 1953

Blyth & Co. Inc. and Kidder, Peabody & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly); Harriman Ripley & Co., Inc.; Salomon
Bros. & Hutzler; Union Securities Corp. and A. C. Allyn
& Co., Inc. (jointly).
Bids—Tentatively expected to be

Dec.

Price—To be supplied by

Thursday. February

.

Burr, Inc. and The

&

fin

Vance, Sanders & Co., Boston, Mass.

tain

.

.

if INDICATES ADDITIONS
SINCE PREVIOUS ISSUE

Registration

Jan. 26

American Alloys Corp.,

Feb.

Financial Chronicle

The Commercial and

(822)

Probable bidders—Halsey, Stuart & Co. Inc.; Cof-

Feb.

Exchange, Inc.
13 filed 50,000 shares of 4%

stock

cumulative preferred

shares of common stock

and 700,000

$10C)

(par

],

-

Grange League Federation

if Cooperative

increase

working capital. Underwriter—Bioren & Co., and H. G.
Kuch & Co., both of
•

NEW ISSUE CALENDAR

Philadelphia, Pa.

Baker

Properties, Inc. (2/20)
Jan. 26 filed 5,181 shares of common stock (par $1) and
"deferred obligations" to pay an aggregate of $333,492.75.

Proceeds

—

To

defray cost of making payment
issued pursuant to the warrants
for working capital. Business—

of deferred obligations

and, if there is excess,

Office—510 Baker

Real estate.

Underwriter—None.
•

February 19, 1953
Equip. Trust Ctfs.

Central RR

Illinois

stock.

(par five cents).

(No

common

Airlines,

Resort

(Offering

Price—25 cents

per

equipment.

ver,

Colo.

Underwriter—E. I.

Oil Co.—

Big Horn-Powder River Corp., Denver, Colo.
Jan. 30 (letter of notification) 565,220 shares of common
stock

(par 10 cents) being offered first for subscription
by stockholders at rate of one new share for each nine
shares

held

Price—25

as

cents

of

Feb.

per

6; rights to expire on Feb.
share.
Proceeds—For drilling

Office—702

penses.

Ernest

Seventeenth St., Denver,

• Birmingham

(Ala.)

Cranmer
Bldg.,
930
Underwriter—None.

to be offered in units of

one

13

market.

Inc.,

Oils

Ltd.,

March

(Bids

New England Power

&

noon

(par $1).
Proceeds—

acquire leases and for corporate purposes.
writer—None. To be named by amendment.

Pacific

Deetjen & Co.

Under¬

Bunker-Chance Mining Co., Portland, Ore.
12 (letter of
notification) 1,000,000 shares of

Jan.

(The

B assessable

stock. Price—10 cents per share. Proceeds
—For mining expenses. Office —6485 N. W St
Helens

4,

March

(Eids

Common

lnc

Common

Hayden,

Stone

&

(Eids

Power

be

5,

(Bids

(Bids

Chicago & Eastern Illinois RR.___-Equip. Tr. Ctfs.

Federal Paper Board

Sachs

March

7,

Baird

Fall

River

11

March

New York

Boston

Philadelphia

Pittsburgh

San Francisco

Central

Chicago

Cleveland

Maine Power
(Bids

Hot




to

all

offices

Co.,

to

be

invited)

II

a.m.

EST)

Common
*

April 17, 1953

—Bonds

Kentucky Utilities Co
be

invited)

May 12,

1953

(Bids

Bonds

Bonds

Alabama

Power

to

l

Lemon

&

EST )

11

a.m.

June 9,

Co.)

-Bonds

Bonds

Co
(Bids

invited)

Co
noon

%
Bonds

Inc

—

Common

(Bids

Service

(Bids

Inc.)

Shoppes, Inc

Narragansett Electric

invited)

EST)

a.m.

be

be

Southern Co.

10, 1953

to

Bonds & Preferred

to

April 15, 1953

Common

Co

(Johnston,

Private Wires

Public
(Bids

March 9, 1953
Electric Light Co
(Bids

Orleans

Co.)

1953
&

invited)

Common
&

Lake Superior District Power Co
(Robert W.

New

CST)

Co., Inc

(Goldman,

Bonds

Co
be

April 14, 1953

CSTi

Chicago & North Western RR—_-Equip. Tr. Ctfs.

to

Electric Ser. Co
'

1953

noon

—Bonds

invited)

April 13, 1953

invited)

noon

be

to

& Light

and

Texas

(Bids

Common

invited)

April 7, 1953
Florida

-Equip Trust Ctfs.

New York Central RR

(Bids

be

to

April 6, 1953

1953

Boston Corp.; Courts & Co.;
Robinson-Humphrey Co., Inc.)

March

1953

31,

California Electric Power Co

Co.)

Common

to

Common

Brothers)

Co

(Bids

1953

EST)

First
The

class

Barney & Co.)

California Electric Power Co

Preferred

and

March

Atlanta Gas Light

be Smith,

(Offering to stockholders—no underwriter)

:

Bonds

Northern Airlines, lnc

(Emanuel,

•

Common

Electric Co

Co.)

invited)

Co.—

(Lehman

stock

cents per share.

To

be

1953

25,

Merritt-Chapman & Scott Corp

Stearns

Bear,

American Royalties,

North

Price—Approximately 64.48

to

(Bids

Toronto, Canada
common

(May

EST)

a.m.

Southern Indiana Gas &

Common
and

11

March 27,

1953

Charter Oil Co., Ltd
Brothers

Bonds
invited)

be

to

Bonds & Preferred

(Bids

Common

3,

1953

Co

March

and White & Co.)

Inc.

..Common

Co

invited)

be

Georgia Power Co

invited)

be

to

Otis,

1953

March 24,

(Peter W. Spiess Co.)

Wash.

110,000 shares of capital stock.
Price—At
Proceeds—For investment. Underwriter—None.

Bristol

&

Indianapolis Power & Light Co

Spokane,

filed

Sept. 25 filed 1,000,000 shares of

1953
Equip. Trust Ctfs.

Exploration Co

(Lehman

Bonds

invited)

be

to

Dallas Power & Light
(Bids

Debentures

share of each class

Co.)

&

to

(Bids

Sachs & Co.)

Inc.

of stock.

• Bond and Stock Fund,

Debentures

March 2,

Texas Oil

Preferred

Oklahoma—

of

Public Service Electric & Gas

Curtis)

Central RR. of New Jersey

(Gearhart

Co.

March 18,

Common

(Goldman,

Cinerama,

Price—$1.16 per unit. Proceeds—To purchase
land and equipment. Underwriter—Carlson &
Co., Bir¬
mingham, Ala.

(Allen

Service

Corp.)

Boston

&

(Bids

Lead & Smelting Co., Inc.
(par

Feb.

First

Robbins, lnc

28.

Bonds

invited)

be

to

(Bids

(Bids

to

&

r

'

stockholders—underwriters may include
Merrill Lynch, Pierce, Fenner & Beane; First Boston
Corp.; Lehman Brothers; and Paine, Webber, Jackson

McKesson

-

—Common

Co.

Maryland. Casualty Co
(Offering

—Bonds

invited)

to be

Service Co. of New Mexico.

Public

and

Colo.

.

17, 1953

Mississippi Power & Light Co.:
Public

1953

February 26,

ex¬

Feb. 9 (letter of notification) 150,000 shares of
preferred
stock (par $1) and 150,000 shares of common stock
1 cent)

Bonds
EST)

(Bids noon

Carborundum

invited)

be

Superior District Power Co

Hogle & Co)

Maine Central RR

(The

•

Common

v

—

J. A.

Inc.)

--—Equip. Tr. Ctfs.

to

(Bids

share.

Shelley Co., Den¬

Lake

February 25, 1953

English

Co.,

12, 1953

March

Common
underwriting)

stockholders—no

I

com¬

underwriting)

lnc
to

Proceeds—To repay notes, and for drilling expenses and
new

(Bids

&

—Common

Inc__

Properties,

...Common
Blyth

and

Ohio Ry

Chesapeake &

1953

Corp.

March

Brothers)

(Lehman

Baker

Big Basin Oil, Inc., Holyoke, Colo.
Dec. 8 (letter of notification) 1,100,000 shares of
stock

Boston

-

($1 per share). Proceeds — For
equipment and working capital. Office1302 Ontario
St., Cleveland 13, Ohio. Underwriter—None.

mon

First

...Common
February 20,

At par

—

(The

Corp.

Bldg., Minneapolis, Minn.

Corp., Cleveland, Ohio
(letter of notification) 300,000 shares of

Price

March 11, 1953
Arizona Public Service Co___

(Bids noon CST)

Lehman

Bi-Metals

Jan. 27

_

Gulf

Power

Co

EST)

1953
Bonds

Volume

177

(par $5).

Number 5196

Price—At par.

.

.

The Commercial and Financial Chronicle

.

Proceeds—For working capital.

Business—Production of dairy and poultry feeds.

for

Office

each

—Ithaca, N. Y.-Underwriter—None.

To

10 cents).

acquire

leases,

Price—$1

for

share.

per

exploration

March 3.

on

Proceeds—To increase capital and

Nov.

and for working capital.
Office—100
St., Wilmington, Del. Underwriter—Charles J. Maggio,
Inc., New York.

of record Dec.

★ Dallas Power & Light Co.

pany

pire

22, 1952, on a pro rata basis; rights to ex¬
1953, The offering will include 50,000
directors, officers and employees of the com¬

Feb. 28,

on

shares to

and

to

certain

individuals

Underwriters—To be determined by competitive bidding.

and firms in payment
$5.75- per share. Proceeds— For
engineering and construction of prototype coaxial heli¬
copter.
Office—St. James, L. I., N. Y. Underwriter—

Probable

None.

Feb.

filed

16

March

$9,000,00u

1983.

1,

of

Proceeds

(3/24)

first

construction

For

—

bonds

mortgage

for services.;. Price

due

program.

bidders:

Halsey, Stuart & Co. Inc.; Salomon
Bros.
&
Hutzler; The | First Boston Corp., Lehman
Brothers; Kidder, Peabody & Co.; Equitable Securities
Corp.; Union Securities Corp.; Harriman Ripley & Co.,
Inc.
Bids—Tentatively scheduled to be received on
March

★ Hot Shoppes, Inc., Washington,
Feb.

17

filed

which

it Delta Air Lines, Inc., Atlanta, Ga.

to

Price—To

Debentures
at

will
of

rate

be

convertible
share

one

for

into

each

Delta

stock

Proceeds—For

com¬

construction

program.
Underwriters—
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; Union
Securities Corp.; W. C. Langley & Co.,
White, Weld & Co.
and Shields & Co.
(jointly); Lehman Brothers, Goldman,
Sachs & Co. and The First Boston
Corp. (jointly); Hemp¬
hill, Noyes & Co. and Drexel & Co. (jointly); Equitable

common

50 cents). Price—$1 per share. Proceeds—
For cost of films and working capital.
Underwriter—
Stuyvesant F. Morris, Jr., & Co., New York.
,v(par

Securities Corp.

Bids—Expected March 3.

.

it Inspiration

Econo Products

Co., Inc.
v
w
Jan. 8 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
expansion and working capital. Office — 17 State St.,
New

York.

Underwriter—James

T. Dewitt

&

Jan.

3,500 shares

per

share).

the

Board.

(par $3%). Price—At market (about $16
Proceeds—To Charles Edison, Chairman of
Underwriter—Riter & Co., New York.

★

English Oil Co., Salt Lake City, Utah (2/25)
Jan. 5 filed 3,435,583 shares of common stock, of .which
750,000 shares are to be offered publicly, 250,000 shares
are to
be reserved for officers and key employees and
options, and 2,435,583 shares in exchange for oil and gas
properties and interests therein.
share).
ties

Lake
★

Proceeds—For

and

leases.

Price—At par

Fail

acquisition of additional proper¬
A. Hogle & Co., Salt
.

„

River Electric Light Co.
(3/9)
filed $6,800,000 of first mortgage

trust bonds due Jan.

000,000 of 3Vs%
loans.

per

Underwriter—J.

City, Utah.

Jan. 29

($1

'

„

Wis

1, 1983. Proceeds—To redeem $2,-

bonds and

Underwriters—To

be

to repay $4,800,000 of bank
determined by competitive

share.

per

Bank

Proceeds—For

St.,

Wallace,
Financing, Inc., Wallace, Ida.

Interprovincial Pipe Line Co.

Ida.

(Canada)

Feb. 6 filed 1,500,000 shares of
capital stock (par $5) to
offered for subscription by stockholders.
(Imperial
Oil Ltd.
of

,

the

33.36% and Canadian Gulf Oil Co. 10.01%

owns

outstanding

amendment.

stock.)

Price—To

Proceeds—For

be

supplied

construction.

new

by

Offices

—Toronto, Ont., and Edmonton, Alta.
Underwriters—
Wood, Gundy & Co., and McLeod, Young, Weir, Inc.;
both of New York and Toronto.

Ispetrol Corp., New York
29 filed 49,500 shares of common stock. Price—At
par ($100 per share). Proceeds—To finance purchase of
Oct.

oil

crude
oil

and

Israel

for

Israeli enterprises and to purchase crude
products for resale in Israel. Underwriter—

oil

Securities Corp., New York.

Israel

and collateral

cents

Office—507

com¬

be

of class B

stock

common

Price—15

expenses.

Underwriter—Mine

Co.; Inc.,

★

(Thomas A.), Inc.
(letter of notification)

stock.

mining

★ Edison
13

Lead

Co., Inc., Wallace, Ida.
(letter of notification) 2,000,000 shares of

26

mon

Washington, D. C.
Feb.

company.
Proceeds—To

amendment.

To be determined

$35 principal

Doug Allan TV & Film Productions, Inc.
(letter of notification) 150,000 shares of

by

Feb.

of debentures.

Feb. 4

supplied

Indianapolis Power & Light Co. (3/3)
9 filed $10,000,000 first
mortgage bonds due 1983.

plan at rate of $21 of debentures for each C. & S.

stock

public and 18,000 shares to employees of the

for working capital, etc. Underwriter—John¬
ston, Lemon & Co., Washington, D. C.

(subordinated) to be issued in exchange for
Chicago & Southern Air Lines, Inc., common stock under

amount

three

be

Industrial

&

Mineral

Development

Oct. 6 filed 30,000 shares of class A stock.

($100

Corp.

Price—At par

share). Proceeds—For industrial and mineral
development of Israel. Underwriter
Israel Securities
Corp., New York.
per

—

Halsey, Stuart & Co. Inc.;
Bear, Stearns & Co. and Salomon
Bros. & Hutzler (jointly); Glore, Forgan &
Co.; The,
First Boston Corp. Bids—Expected to be received about

★ Israel Overseas Corp. of New York
17 filed 16,000 shares of capital stock par $1
and
$3,400,000 of 20-year debentures to be offered in units
of eight shares of stock and $1,700
principal amount of

March 9 at 11

debentures.

bidding.

Probable

Lehman

Brothers,

bidders:

a.m.

(EST) at 49 Federal St., Boston, Mass.

★ Federal Paper Board Co., Inc., Bogota, N. J.
13

filed

Price—To

certain

200,000 shares of

be

First
Jan. 21

common

stock

(par $5).
Proceeds—To

supplied

by amendment.
stockholders.
Underwriter—-Goldman,

selling

Sachs &

Co., New York.
Securities

Corp., Philadelphia, Pa.
(letter of notification) 600,000 shares of

common

(par one cent) which includes 22,190 shares being
reoffered to the previous purchasers. Price—25 cents
per
share. Proceeds
For expansion of business and for
—

working capital. Underwriter

First

—

Securities

Corp.,

Philadelphia, Pa.
★

First
9

Springfield Corp., Springfield, Mass.
filed

20,000

Price—At market.

shares

of

Proceeds

.Frito

capital

stock

$10).

(par

For investment.

—

writer—D. J. St. Germain &T

Jan.

Under¬

filed

115,000

share

of

convertible

preferred

(par $7.50), of which 85,000 shares will be offered
publicly and 30,000 shares to employees. Price — To
public, $10 per share; to employees, $9 per share. Pro¬

ceeds—For expansion of business

and general corporate
Business—Manufacture and sale of food prod¬
Underwriter—Dittmar & Co., San Antonio, Tex.

purposes.

★ Gem State Consolidated Mines, Inc., Boise, Ida.
Feb. 2 (letter of notification) 20,000 shares of
capital
stock
ceeds

(par five cents).

Price—40 cents

per

share.

Pro¬

For

mining expenses. Office — 3620 Sycamore
Boise, Ida. Underwriter-—None.

—

Drive,

★ Gillette Co., Boston, Mass.
Feb. 13 (letter of notification) 9,000 shares of common
stock (par $1), to be offered to
employees under.stock
purchase plan. Price—At market (about $35 per share).
Underwriter—None.

z

Grand Bahama Co.,

Ltd., Nassau

Feb. 3 filed $1,350,000 20-year 6% first
mortgage convertible debentures due March, 1973, and 1,565,000 shares
of class
tures

A

and

stock

$1

construction.

(par

per

10 cents).

Price—Par for deben¬

share for stock.

Business

—

Hotel

Proceeds

and

land

—

For

new

development.

Underwriter—Gearhart & Otis, Inc., New York.
0 Gulf

Jan.
stock

Insurance Co.,

Dallas, Tex.
(letter of notification) 5,000 shares of capital
(par $10) being offered for subscription b,y stock¬

19

holders

of

record

Feb.

11




on

basis

of

one

9

tors

(letter of

(par $5).

of

will

E. Wood

new

Kirk

of

Natural

notification)

Gas

E.

Co.,

Fischer.

of

common

Proceeds—To Execu¬
Underwriters—Harold

&

mining
Trust Bldg., Denver 2,
Co., New York.

share

Office—405

expenses.

Colo.

6

filed

March

Inc., N. Y. (2/26)
$15,000,000 of sinking fund debentures due
Price — To be supplied by amendment.

1, 1973.

Proceeds—To
ables.

finance increased

inventories

receiv¬

and

Underwriter—Goldman, Sachs & Co., New York.

Mex-American Minerals Corp., Granite City,
Nov.

3

stock
10

filed

cents)

shares

of

share.

per

Interstate

Underwriter—Gardner

be

to

class of stock.

in

offered

Price—$6

units

per

common

of

one

stock (par

share

of

Mid-Gulf Oil

&

Refining Co.

Nov. 10 (letter of notification) 400,000 shares of common
stock (par five cents). Price—60 cents per share. Pro¬
ceeds—To acquire additional
Market St., Wilmington,
ler Co., Jersey City, N.

properties. Office—927-929
Del. Underwriter—W. C. DoehJ.

Mines Management,
Jan. 19

Inc., Wallace, Idaho
(letter of notification) 400,000 shares of common
cents per share.
Proceeds—For ex¬

Price—75

stock.

ploration and development.

Offices—507 Bank St., Wal¬
lace, Idaho, and W. 909 Sprague Ave., Spokane, Wash.
Underwriter—None.

Light Co.~ (3/17)

★ Mississippi Power &
Feb. 11 filed

$12,000,000 of first mortgage bonds due 1983.
construction program. Underwriters—To
be determined by competitive bidding. Probable bidders:

Proceeds—For

Halsey, Stuart & Co. Inc., White, Weld & Co. and Kidder,
Peabody & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane; Union Securities Corp.; The First Boston Corp.
and W. C. Langley & Co. (jointly).
Bids—Tentatively
expected

March 17.

on

it Moen Ladder Co., Inc., Spokane, Wash.
Feb. 5 (letter of notification) 200,000 shares of common
stock.
Price—At par (10 cents per share).
Proceeds—
To operate plant and for raw materials.
Office—956 E.
10th St., Spokane, Wash.
Underwriter—None.

Murphy (A. A.) & Co., Inc., St. Paul, Minn.
3 (letter of notification) 2,000 shares of 6% prior
preferred stock, 1947 series. Price — At par ($50 per
share). Proceeds—For working capital.
Underwriter—

Feb.

Piper, Jaffray & Hopwood, Minneapolis, Minn.

Narragansett Electric Co.

(3/10)

Feb. 10 filed $10,000,000 of first mortgage bonds, series
D, due March 1, 1983. Proceeds—To repay bank loans
and for

construction.

new

Underwriters

—

To be deter¬

mined by competitive bidding. Probable bidders:
Stuart & Co. Inc.; Kuhn, Loeb & Co. and Glore,

Halsey,
Forgan
& Co. (jointly); Salomon Bros. & Hutzler; Kidder, Pea¬
body & Co. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers and Goldman, Sachs & Co. (joint¬
ly); Union Securities Corp.; The First Boston Corp.;
White, Weld & Co.; Blyth & Co., Inc., and Harriman
Ripley & Co. Inc. (jointly). Bids—To be received up to
(EST)

noon

on

March 10 at company's office.

New England Power Co.
Feb. 4 filed 80,140 shares of

(3/3)
new

cumulative preferred

stock (par

$100) to be offered for subscription by present
holders of 6% preferred stock on a share for share basis;
amendment.

Proceeds —:

For

—

To be supplied by

repayment of bank loans.

Underwriters—To be determined by competitive bidding.
Probable bidders: The First Boston Corp.; Blyth & Co.,

Inc.;

Harriman

Ripley. &

Bids—Scheduled

to

be

Co.

Inc.;

received

up

Lehman
to

noon

Brothers.
(EST) on

&

Newton-Phoenix Oil Corp., Houston and New York
Feb.

3 filed 2,500,000 shares of common stock (par one
cent). Price—30 cents per share. Proceeds—To purchase

land

and

for

★ Lake Superior District Power Co. (3/7)
16 filed 29,761 shares of common stock (par
$20)
be offered for subscription by common stockholders

drilling

expenses.

Underwriter

—

Morris

Co., New York.

Nielco

Chemicals, Inc., Detroit, Mich.

Feb.

Nov.

to

stock. Price—At par ($5 per share). Proceeds—To
date notes. Office—8129 Lyndon Ave., Detroit 21,

the basis of

on

one

new

share for each

held; rights to expire on March
scription warrants are expected to be mailed

each

Proceeds—For work¬

unit.

amendment.

Cohon &

shares

III.

113,000 shares of 6% cumulative preferred

(par $5) and 113,000 shares of

March 3 at 441 Stuart Street, Boston 16, Mass.

Uranium

Proceeds—For

Feb.

rights to expire March 23. Price

Inc.

shares

4,000

Price—At market.
Louis

Proceeds—For gen¬

Corp., Denver, Colo.
Feb. 6
(letter of notification) about 900,000
capital stock (par one cent). Price—30 cents

nine

stock

ucts.

Feb.
stock

unit.

Underwriter—None.

purposes.

of record Feb. 25

Co., Springfield, Mass.

Co., Dallas, Tex.

26

corporate

per

Co., St. Paul, Minn.; Cruttenden & Co., Chi¬
cago, 111., and The First Trust Co. of Lincoln, Neb.

stock

Feb.

eral

★ Kansas-Nebraska

(35)
Feb.

Feb.

Price—$2,500

Offering—Date indefinite.

McKesson & Bobbins,

ing capital. Business—Purchase, processing, refining and
sale of Fluorspar. Underwriter — To be supplied by

(3/10)

stock

company,

bentures

mon

D. C.

common

195,880 shares

of

Feb. 11 company filed an application with SEC covering
proposed issue of $10,695,846 of 5V2% convertible de¬

share.

229,880 shares of

(par $1),
are to be sold publicly for the
selling stockholders, and 34,000 shares
b,y the company of which 16,000 shares will be offered
of

account

24.

merger

—

Underwriter—B. V. Christie & Co.,

Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephone
WHitehall 3-2181.

13

filed 350,000 shares of class A common stock
(par $1), to be offered for subscription by stockholders

to repay
West 10th

expenses,

Under¬

corporate purposes.

Gyrodyne Co. of America, Inc.

Proceeds—

*

loans

-

held; rights to expire

share.

Address—P. O. Box 1771, Dallas, Texas.
writer—None.

Coronado Copper Mines Corp.
(letter of notification) 299,970 shares of common

(par

shares

per

surplus.

Jan. 23
stock

35

Price—$50

51

(823)

Sub¬

23.
on

March

7.

19

(letter of notification) 34,800 shares of common

liqui¬
Mich.

Underwriter—Smith, Hague & Co., Detroit, Mich.

★ North American Royalties, Inc.,
Bismarck, N. D. (3/3)

Price—To be supplied by amendment. Proceeds—For
construction program. Underwriter—Robert W. Baird &

Feb.

Co., Inc., Milwaukee, Wis.

Price—To be

16

filed

325,000 shares of common stock

(par $1).

★ Lake Superior District Power Co. (3/17)
16 filed $2,000,000 first mortgage bonds, series E,

supplied by amendment. Proceeds—To re¬
tire outstanding preferred stock and bank loans and for
working capital. Underwriter—Lehman Brothers, New

due March 1, 1983.

York.

Feb.

Proceeds—For construction program.

Underwriters—To

ding.

Probable

be

opened

★

Lehman

on

by

competitive

bid¬

bidders:

Robert W. Baird &

be

determined

Halsey, Stuart & Co. Inc.;
Co., Inc. Bids—Bids are expected to

March

17.

Corp., New York

(2/19)

Jan. 30 filed 37,800 shares of capital stock (par $1). Price
—To be supplied by amendment. Proceeds—To Estate of

Allan S. Lehman, deceased.

thers,

New

York.

market today

Underwriter—Lehman Bro¬

Offering—Expected

after

close

of

Maryland Casualty Co., Baltimore, Md. (2/26)
filed 475,000 shares of common stock (par $1) 'to
be offered for subscription by common stockholders of
record Feb. 21; rights to expire about March 12. Price—
To be supplied by amendment. Proceeds — To increase
capital and surplus. Underwriter—Merrill Lynch, Pierce,
Fenner & Beane, New York.

McCarthy

(Glenn), Inc.

June 12 filed 10,000,000 shares of common stock

Price—$2

per

share.

Proceeds

—

(par 25

For drilling of

exploratory wells, acquisition of leases and for general

Pacific

Exploration, Ltd., Toronto, Canada
1,375,000 shares of capital stock (par 25 centsCanadian). Price—$1 per share (U. S. funds). Proceeds
—For exploration costs. Underwriters—Aetna Securities
Corp. and L. D. Friedman & Co., Inc., both of New York.
★ Northeastern Poultry Producers Cooperative
Association, Inc.
Feb. 13 (letter of notification) 800 shares of non-cumu¬
lative
—For

(Feb. 19).

Feb. 5

cents).

North

Feb. 4 filed

preferred stock. Price—$100 per share. Proceeds
working capital. Address—Kingsley Brown, Presi¬

dent, R. D. No. 2, Willimantic, Conn. Underwriter—None.
Northland Oils Ltd.,

Canada

1,000,000 shares of capital stock (par 20
cents—Canadian) and subscription warrants for 600,000
Nov.

21

filed

shares, of which the stock and subscription warrants for
400,000 shares are to be offered in units of 100 shares
subscription warrants for 40 shares. Price—$52 per unit. Proceeds—For drilling of additional welli
and to purchase producing wells.
Underwriter—M. S.
Gerber, Inc., New York. Financing may be revised.

of stock and

Continued

on page

52

52

Financial Chronicle

The Commercial and

(824)

Continued

jrom

Nov. 20

improvements

Underwriter—None.

Hills, Staten Island, N. Y.

Nyal Co., Detroit, Mich.
Dec. 28 (letter of notification) 200,000 shares of common

timore, Md.

Jan. 28

* Silver States Oil & Gas Corp., Shelby, Mont.
(letter of notification) 289,500 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
To drill wells.
Underwriter — Hunter Securities Corp.,

stock

Lancaster, Pa.

curities Corp., both
the Spring of 1953.

Underwriter—Alex. Brown & Sons, Bal¬

•

stock (par 10
cents). Price—20 cents per share. Proceeds—To make
geological survey of land. Business—Oil and gas explor¬

-

South Carolina Electric & Gas Co.

ation. Underwriter—None.

■it Pacific Northern Airlines, Inc.,
Seattle, Wash. (3/3-4)
Feb. 11 filed 360,000 shares of common stock (par $1).
Price—To be supplied
by amendment.
Proceeds—For
repayment of bank loans and new equipment. Under¬
writers—Emanuel, Deetjen & Co. and Hayden, Stone &
Co., both of New York.

offered

shares.

Price—$40

per

share. Proceeds—For

1,047,992.2
expansion

general corporate purposes. Office—195 Broadway,

Dec. 3
stock

N. Y. Underwriter—None.

Hospital, Inc., Tampa, Fla.
30,000 shares of common

(letter of notification)

(of which 1,250 shares will be issued to Dr. Samuel
and John R. Himes for services rendered).

Hibbs

G.

Price—At

par ($10 per share).
Proceeds—For property
equipment expenses. Office—349 Plant Ave., Tampa,
Underwriter—Louis C. McClure & Co., Tampa, Fla.

and
Fla.

it Specialty Converters, Inc., East Braintree, Mass.
Feb. 11 (letter of notification) 5,000 shares of common
(par 1 cent). Price—50 cents per share. Proceeds
—To Leif B. Norstrand, the selling stockholder. Under¬
writer—Stieglitz & Co., New York.

York-Hoover Corp.,
Jan.

York, Pa.

16

(letter of notification) 12,490 shares of common
stock (par $10). Price—$8 per share. Proceeds—To nine
selling stockholders. Underwriters—Butcher & Sherrerd
and Stroud & Co., Inc., both of Philadelphia, Pa.

stock

it Standard Petroleum Corp., Wilmington, Del.
(letter of notification) 300,000 shares of common
stock (par 5 cents). Price—$1 per share.- Proceeds—To
drill well.
Office—100 West 10th St., Wilmington, Del.
Underwriter—Charter Securities Corp., New York.

Shields & Co., New York.

Feb. 27. American Telephone & Telegraph Co.,

Westshore

body & Co., New York.

Paley Manufacturing Corp., Brooklyn, N. Y.
Jan. 16 (letter of notification) 99,000 shares of common
stock (par 25 cents). Price—$3 per share. Proceeds—
For expansion and working capital. Underwriter—G. K.

new

on

New York 7,

to common

being offered for subscription by
stockholders of record Feb. 4 at rate
share for each 10 shares held; rights to

par),

common

parent, will subscribe for an additional

and

shares of common stock (par $4.50)

stockholders of record Feb.
18 at rate of one new share for each seven shares held,
with additional subscription privileges (including sub¬
scription privileges for holders of less than seven shares
of outstanding common stock subject to allotment; rights
to expire on March 4. Price—$12 per share.
Proceeds—
For construction program.
Underwriter—Kidder, Peabeing

one

the

Jan. 28 filed 358,045

(no

expire

York.

New

Overland Oil, Inc., Denver, Colo.
Dec. 23 filed 300,000 shares of common

Inc.

(letter of notification) 2,007.8 shares of common

minority
of

in

of New York. Offering—Expected

Western Electric Co.,

Feb. 9

Otis, Inc., New York.

(par 50
Proceeds
be used to build pipe¬

—Together with other funds, to
line.
Underwriters—White, Weld & Co. and Union Se¬

(Del.)

(letter of notification) 20,000 shares of 6% cumu¬
lative preferred stock.
Price—At par ($10 per share).
Proceeds—For working capital.
Office—Manheim Pike,

Jan. 8

stock (par 10 cents). Price—$1.25 per share. Proceeds—
To repay loans and for working capital. Underwriter—

Gearhart &

Motor Express Corp.

Line Co., Dallas, Tex.
1,125,000 shares of common stock

filed

Price—To be supplied by amendment.

cents).

■it Norwich Pharmacal Co.
Feb. 9
(letter of notifieatin) not exceeding $300,000
aggregate market value of common stock (par $2.50 per
share) to be offered to employees.
Price—At market
(about $21.37% per share). Proceeds—None. Office—
13-27 Eaton Avenue, Norwich, N. Y. Underwriter—none.

Shirks

Thursday, February 19, 1953

..

West Coast Pipe

(in units of $250 or multiples thereof). Proceeds—For
and working capital.
Office — Dongan

51

page

.

-Feb. 9

Paradise Valley Oil Co., Reno,

Nev.

•

Aug. 20 filed 3,000,000 shares of capital stock. Price—
Proceeds—To drill six wells
on subleased land and for other corporate purposes/ Un¬
At par (10 cents per share).

it Stanwood Oil Corp., N. Y.
9 (letter of notification) 6,000 shares of common
stock (par five cents). Price—$2.25 per share. Proceeds
—To compensate underwriter for services. Underwriter
—Jacquin, Stanley & Co., New York.
.
-•

derwriter—None, with sales to be made on a commission
basis (selling commission is two cents per share). Of¬
fice—c/o Nevada Agency & Trust Co., Inc., Cheney Bldg.
139 N. Virginia St., Reno, Nev.
Peruvian Oil Concessions

Co.,

Ii(c., Dever, Del.

,

1468, Phoenix, Ariz;

Phillips Packing Co., Inc.
Feb. 2 (letter of notification) 3,000 shares of common
stock (no par). Price—At market./Proceeds—To selling

Md.

V

.

r

to

Phoenix-Campbell Corp., New York
filed 40,000 shares of common stock purchase
warrants and 40,000 shares of capital stock, (par $1)
reserved

for

ancl five

cents

In

!oil

issuance.

for the

Price—$10

and gas

business.
Co., New York.

per

share for

Proceeds—To

warrants.

stock

••

•

made

Feb. 13 filed

$3,500,000 in participations under plan of¬
eligible employees of company and 50,000 shares
of common stock (par $1). Underwriter—None.

-fa PMX Sales Corp., Danbury, Conn.
10 (letter of notification) 519 shares of preferred
share; for
building.

$1

common,

Office

—

per

share.

Long Ridge

struction.

chain, sprockets,

of

gears,

new con¬
duty power

Ravenna Metal Products
Corp., Seattle, Wash.
30 (letter of
notification) 20,000 shares of class
stock

Price—$15 per share. Proceeds
advertising program. Office—6518
Ravenna Ave., Seattle 5, Wash. Underwriter—None.
and

^Raytheon
Manufacturing Co., Waltham, Mass.
6

(letter of notification) 4,000 shares of common
stock (par $5).
Price — $9.50 per share. Proceeds — To
Percy L. Spencer, the selling stockholder. Office—Willow
St., Waltham, Mass. Underwriter—None.

holders.

working

Price—At

capital.

par

($1

per

Office —228

Wilmington 28, Del.

share);

Proceeds—For

Delaware

Trust

Bldg.,

-

Underwriter—None.-

Regent Manufacturing Co., Inc., Downey, Calif.

Calif

Underwriter

—

Angeles, Calif.

Hopkins,

Harbach

&

Co„

'

bqiidsi^Price-^^p^

repay

Probable bidders: Blyth & Co., Inc.; Kidder,
Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Dean Witter & Co. (jointly); Union Securities Corp.

bidding.

•

—
—

Price

—

(4/6)

Electric Power Co.

was

announced

company

bidders:

Hutzler;

4951 Alcoa

Halsey, Stuart & Co. Inc.; Salomon Bros. &
Merrill Lynch, Pierce, Fenner & Beane and
& Co. (jointly); Kidder, Peabody & Co.;

Blyth & Co., Inc.; Lehman Brothers.
scheduled to be received

Central Maine
Jan.

2

it

was

on

Bids—Tentatively

April 6.

Power Co.

reported

plans

company

sale later this

of $16,000,000 common stock <in addition to $10,000,000 of first and general mortgage bonds, see above)
after distribution by New England Public Service Co. of

year

its

holdings of Central Maine Power Co. common stock.

Probable bidders: Blyth & Co.,. Inc. and

1,030

mile crude oil pipeline. Underwriters — White, Weld &
Co. and Union Securities Corp., both of New York. Of-

the sale

Witter

Dean

William R.

a

proposes

$8,000,000 of first mortgage bonds.- Proceeds—To re¬
pay bank loans and for new construction. Underwriters
—To be determined by competitive bidding.
Probable

To be supplied by amend¬

tei«5r-Expected in the Spring of 1953.

it

29

Bids

of

Co., Los Angeles, Calif.

share of stock.

Hogle & Co. (jointly); Lehman Brothers.

California

Jan.

Bumper Co.

000,000 first mortgage bonds, to be used ta build

«.

shares of common stock (par $1).
bank loans and for new construc¬
Underwriters—To be determined by competitive

tion.

Proceeds^—From sale of units and 1,125,000 addi¬
tional shares of common stock and private sale of $55,-

exchanged for outstanding collateral lien bonds
basis of $50 of first
mortgage bonds and $40 in cash
for each $100 of collateral lien

(3/31)

announced company plans to issue and sell

additional

136,249

ment,

to be

was

Proceeds—To

Jan. 20 (letter of notification) 10,000 shares of common
stock (par $1). Price—$10 per share. Proceeds—To John

one

* Richmond County Country Club (N. Y.)
(letter of notification) $130,000 of first mortgage
bonds, of which approximately $25,000 principal amount




California Electric Power Co.
Jan. 29 it

Line Co., Dallas, Tex.
Nov. 20 filed $29,000,000 12-year 6% debentures due Dec.
15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture and

Los

& Co*,

both of New York.

West Coast Pipe

Feb. 4

are

writers—May be Riter & Co.; Hemphill, Noyes

and J. A.

Staats &

*n",
units at $510 each. Proceeds—For building and
equipment. Office—11905 Regentview Avenue, Downey,

or

Under¬

—Tentatively scheduled to be received on March 31.

the selling stockholder. Office
Ave., Los Angeles 1, Calif. Underwriter

notification) $150,000 of first mortgage
bonds, of which 130 units will be issued at $1,020 each

preferred

convertible

$1,000,000

common

B. Rauen,

Dec. 31 (letter of

to

Proceeds—For working capital.

stock.

Dec. 2

United States Spring &
'*

$800,000

common

Security Life, Phoenix, Ariz.
(letter of notification) 75,000 shares of class A
stock (par $1) and 2,500 participating units to
be sold in units of 30 shares and one participating unit
Price—$120 per unit. Proceeds—To increase capital and
surplus. Office—7 Weldon, Phoenix, Ariz. Underwrite?
—Life Underwriters, Inc., Phoenix, Ariz.

*

&

Baker-Raulang Co.
12 it was reported company late in 1953 may sell

about

United

^Redman Process American Corp.,
Wilmington, Del.
Feb. 2 (letter of
notification) 100,000 shares of preferred
stock to be offered for
subscription by common stock¬

issue and sell,

may

Jan.

stock.

Feb.

company

Securities Corp. and Central Re¬

(jointly); Equitable
public Co. (jointly).

stock (par 10 cents). Price—25 cents per share. Pro¬

notification) 150,000 shares of class A
voting stock and 150,00 shares of 4% class B non-voting
Price—$1 per share.
Proceeds—To purchase oil
and gas leases.
Office—222 Main Street, Bismarck, N. D
Underwriter—John G. Kinnard & Co., Minneapolis, Minn

(par $10).

research

reported

Lehman Brothers and Stone & Webster Secu¬
rities Corp. (jointly); The First Boston Corp.; White,
Weld & Co. and Merrill Lynch, Pierce, Fenner & Beane

Nov. 17 (letter of

-

was

Co. Inc.;

United Petroleum & Mining Corp., Bismarck, N. D.
A

it

15

competitive bidding. Probable bidders: Halsey, Stuart

of

it Uarco, Inc., Chicago, III.
Feb. 11 (letter of notification) 2,800 shares of common
stock (par $10).
Price—$18.75 per share.
Proceeds—j
George Buffington, the selling stockholder. Underwriter
—Kidder, Peabody & Co., Chicago, 111.

heavy
etc. Office—Long-

Jan.

common

probably in June, 1953, about $15,000,000 of first mort¬
gage bonds.
Proceeds—To repay bank loans and for
new construction.
Underwriters—To be determined by

acquisition of
properties. Underwriter—Peter W. Spiess Co., New York

vi<jw, Tex. Underwriter—Dallas Rupe & Sons, Dallas,
Texas; and Straus, Blosser & McDowell, Chicago, 111.

—For

Dec.

ceeds—To drill oil and gas wells and for

^machinery and equipment and

Business—Production

writer—None.

mon

-

in October, 1951, stock offering to stockholders*

Arkansas Power & Light Co.

Texas Oil Exploration Co., Ft. Worth, Tex. (3/2)
5 (letter of notification) 1,200,000 shares of com¬

■

Sept. 25 filed 250,000 shares of common stock (par $1),
(later amended to 400,000 shares)..Price—$2 per share.

transmission

Under¬

Dec.

Manufacturing Co.

financing program to raise about $40,-

Corp. and A. E. Ames & Co., Ltd., acted as dealer-man¬

None.

Pro¬

Road,

*-•:

reported company may be in the market

was

this spring with a

agers

stock, 1,900 shares of common stock and 5,400
preferred stock. Price—$10 per share.
Pro¬
ceeds—For general corporate purposes.
Underwriter—

Underwriter—None.

it

it Taylor Laboratories, Inc., Boise, Ida.
Feb. 11 (letter of notification) 10,000 shares of class A
shares

Price—For pre¬

12

A l-for-10 offering of common stock (about
818,658 shares) is said to be under study. Proceeds—For
expansion program. Underwriters — The First Boston

10.

Office—326 Miller Bldg., Yakima, Wash.

Ltd.

Aluminium

000,000.

common

Feb.

stock and 4,904 shares of common stock.

Proceeds—For

•

Feb.

initially to persent and future policyholders of
specified officers and directors

wells.

>,/•

(par $1)

Jan. 30 (letter of notification) 40,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To drill

fered to

Powers

Phoenix, Ariz.
1,000,000 shares of capital stock

"

May 12.

derwriting group. Proceeds—To be used for expansion,
working capital and other corporate purposes. Under¬
writer—Morgan Stanley & Co., New York.
",
J ?

it Sunland Oil Co., Yakima, Wash.

it Pittsburgh Consolidation Coal Co.

per

,

•

Insurance Co.,

company and to certain
Statement effective Feb.

Underwriter—None,

erect

"•

on

Feb. 4 company announced that company plans to sell
publicly not in excess of $200,000,000 principal amount
of long-term sinking fund debentures through an un¬

•

(letter of notification) 25,000 shares of common
Price—$1 per share. Proceeds—To purchase well
and equipment.
Office—207 Farm and Home Bldg., Ft.

ceeds— To

Underwriter—
'

(EST)

a.m.

'

per share. Proceeds—To qualify to do busi¬
Arizona." Underwriter—None.
Offering to be

in

ness

stock.

Danbury, Conn.

Sun Fire

i;

•

Proceeds—

program.

Allied Chemical & Dye Corp.

Price—$1.50

Underwriter—Morris Cohon &

Feb. 4

ferred, $100

•

''

Dec. 22 filed

,

engage

^Pioneer Oil & Gas Co., Ft. Worth, Tex.

Worth, Tex.

•'

$18,000,000 first mortgage bonds due 1983.

expected at 11

Office—2 East 33rd St., New York.

None/-

(5/12).

reported company plans issuance and sale

Underwriters—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Union Securities Corp., Equitable Securities
Corp. and Drexel & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Harriman Ripley & Co.,. Inc.
Registration—Planned for April lO.Bids—Tentatively

,

purchase operating certificates and for working eap-

ital.

•

Jan. 26

>

Star Air-Freight Lines, Inc., N. Y.

•

(letter of notification) 149,000 shares of common
stock (par $1) in units of 20 shares. Price—$20 per unit.
Proceeds—To purchase Quaker City Airways, Inc. (Pa.),

-

.

,

.Feb. 4

Sons, Balti¬
i
,

'*

^

Underwriter—None.

was

For construction

it Stanzona Petroleum Corp., Phoenix, Ariz.
Feb. 11 (letter of notification) 282,317 shares of common,
■stock.
Price —At par ($1 per share).
Proceeds — For
leases and other operating expenses. Address—P. O. Box

from the Peruvian Government.Underwriter—None.

more,

of

1

stock (par $1).
JPrlce—$1.10 per share. - Proceeds—For general corporate
purposes. Business—Plans to produce and sell petroleum
and its products from lands to be held under concession

Underwriter—Alex. Brown &

Jan. 28 it

Feb.

Jan. 16 filed 9,000,000 shares of common

stockholder.

Prospective Offerings
Alabama Power Co.

•

& Co.

Inc. and

&

Kidder, Peabody

(jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,

Bear, Stearns & Co. (jointly); Harriman Ripley
Co., Inc. '
|
.

t

yolume 177

Number 5196

.

..

The Commercial and Financial Chronicle

(825)
Central RR. of New

Jersey (3/2)

preferred

are
expected to be received by this company on
March 2 for the purchase from it of
$2,460,000 equipment
trust certificates.
Probable bidders:

scribed shares

5%

Halsey, Stuart &
Co. Inc.; Salomon Bros. &
Hutzler; Kidder, Peabody &

March
ment

for

the purchase from

company

on

it of

$7,950,000 equip¬
Halsey, StuCo. Inc.; Kidder, Peabody &
Co.; Salomon Bros.

trust

&

are

&

12

the

certificates.

Probable

preferred

Louisiana Power & Light Co.

to

Dec.

stock

in

Feb.

11

and

sale

it

summer

stockholders

common

bidders:

reported

was

this

company is
of additional

on a

Pierce, Fenner & Beane

as

stock offer.

Avenue, Chicago 4, 111.,

up

to nobn (CST)

March

on

ceeds—For

purchase from it of $2,100,000 equipment trust
certificates, series J, to be dated March 1, 1953 and to

Sept. 1,
bidders:

Chicago Great Western Ry.
9 William N. Deramus,
3rd, President, stated that
the company is planning issuance and
sale of $6,000,000
to

be

secured

be

at

(3/5)

St., Chicago 6, 111., up to noon (CST) on March 5
for the purchase from it of
$8,400,000 equipment trust
son

& Hutzler.

pected to be around $10

share.

per

Underwriter—Hay-

<den, Stone & Co., New York.
Columbia Gas System, Inc., N. Y.
Oct. 10 it was announced company plans to issue and tell
common stock and additional debentures
early in the
Spring of 1953. Proceeds—To repay bank loans and for
•construction program. Company has
sought SEC author¬

aggregate of $25,000,000.
Underwriters—To be determined by competitive
bidding.
Probable bidders: For stock, Merrill Lynch, Pierce, Fen¬
der" & Beane, White, Weld & Co. and R. W.
Pressprich
•& Co. (jointly); Morgan
Stanley & Co. For debenture!,
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
an

it Consolidated Natural Gas Co.
was

reported

is considering debt fi¬
nancing, probably a maximum of $35,000,000 to $40,000,<000. If competitive, probable bidders
may include: Hal:sey, Stuart & Co. Inc.; Morgan Stanley & Co. and The
company

First Boston
Corp. (jointly); White, Weld & Co. and
Paine, Webber, Jackson & Curtis (jointly). Offering—
'Tentatively expected in late spring.
t

•

Culver

Nov.

22

•offer

Corp., Chicago, III.

it

to

that

announced

was

stockholders

of

Bros.

-

of

common stock on a share-for:share basis. Price—At par ($2
per share). Proceeds—Forinvestment. Office—105 West Madison Street,
Chicago,
111. Underwriter—None.

States

announced company
amount of convertible

specified
first

be

ceeds—To

•costs.

for

retire

an

subscription by stockholders.

bank

loans

Meeting—Stockholders

^authorizing the
,

plans to issue

debentures, which

offer&d

new

and
on

to

meet

April

debentures.

un¬

may

Pro¬

construction

14 will

vote

on

Underwriter—None.

Fitchburg Gas & Electric Co.

Jan.

23 it was announced
company plans to issue and
23,698 additional shares of capital stock (par $25) to
its stockholders on a l-for-5
basis, subject to their ap¬
on

Feb. 25. Proceeds—To
repay

short-term bor¬

rowings.
Florida Power & Light Co. (4/7)
Jan.,j7 it was reported company plans to issue and sell
315,000,000 of first mortgage bonds due 1983. Proceeds
—To pay bank loans and for new construction.
Under¬
writers — To be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
«& Co.;

The

Inc.; Kuhn, Loeb

Harriman Ripley & Co., Inc.; Lehman
Brothers;

First Boston

& Webster Securities

was

Inc., .Chicago,

Follansbee

Steel Corp.
16, M. A. Follansbee, President, said the company
plans additional equity financing, totaling about $4,500,*000.
This may be done through a rights
offering to
stockholders. Proceeds—Together with funds from pro¬
posed $29,500,000 RFC loan, would be used for expansion

Underwriters—May include Cohu & Co., New

Offering—Expected in February.

General Contract Corp.
Jan. 14 stockholders voted to
approve a new issue of
500,000 shares of authorized 6% cumulative convertible
preferred stock (par $10). These are to be first offered
for subscription by common stockholders on the
basis of
about one-third share for each common share
held; then
to holders of 5%
preferred stock

(par $100) and of 5%
preferred stock (par $20); thereafter to holders of 5%,




III.

reported company has applied to the CAB

certificate

of

convenience covering service from
Cleveland, and also in Chicago, where the
now operating a mail pick-up service in sub¬
urban'towns. Underwriter—May be Cruttenden &
Co.,
Chicago, 111.
'
i! :
^ ' '
a

Detroit

is

Illinois Central RR.
Bids will

be received

(2/19)
up to noon

(CST) on Feb. 19 at
the company's office, 135 East 11th
Place, Chicago 5, 111.,
the purchase from it of
$4,500,000 equipment trust

for

certificates, series 37 to be dated March 1,
in 30 semi-annual instalments.

Halsey, Stuart & Co. Inc.;
Hutzler; Kidder, Peabody & Co.

•

1953,

and

Probable bid¬

Salomon

Bros.

&

noon

11 it

(EST) Feb. 25 at 222 St. John St., Portland, Me.

record

March

stock

common

shares held

(with

550,282

($12.50

reserved

(jointly); Equitable Securities Corp.;
Hutzler; Glore,

Forgan & Co.; Kidder, Peabody & Co.; Harriman Ripley
& Co., Inc. Offering—Probably in
April, 1953.

if Jewel Tea Co., Inc.
11

sell to
tional

it

announced

was

company plans to offer and
stockholders about 142,000 shares of addi¬

common

stock

common

share for each eight

proval

on

(par $1) on a basis of one
shares held.
This will follow

March 31 of

a

split

up

of each present

new

ap¬

no par

share into two shares of $1 par value. Under¬
writers—Lehman Brothers and Goldman, Sachs & Co.,
common

both of New York.

if Kentucky Utilities Co.
Jan.

30

it

Feb. 11

(jointly); Blyth & Co., Inc.; Equitable Securities Corp.
Bids—Tentatively expected to be received on April 17.
Long Island Lighting Co.

Dec.

15

it

was

credit

1,

in

announced

the

amount

.

company

has established

a

of

$40,300,000 extending to
1953, to be refinanced by the issuance of new

Underwriters—(1) For common stock, prob¬
ably Blyth & Co., Inc. and The First Boston Corp.
(jointly). (2) For preferred stock, may be W. C. Langley & Co. (3) For bonds, to be determined by competi¬
Inc.;

bidding.

Probable

oversubscription privilege); rights
There are presently
outstanding;
common

Proceeds

shares,
—

including

For

working

shares
capital.

it

*

.

was

biddings
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
and Salomon Bros. & Hutzler
(jointly); Whiter
Weld & Co.; The First Boston
Corp.; Kidder, Peabodjr
& Co. and Drexel & Co.
(jointly); Harriman Ripley &
Co., Inc. and Union Securities Corp. (jointly). 5
Probable bidders:
&

Co.

Middle

South

Feb. 3 it

was

and sell

about

n.;t:f

Utilities, Inc.

reported company may later this year issue

$15,000,000 of additional

common

stock.

Proceeds—To repay bank
loans, etc.* Underwriters—Tq*
be determined by competitive
bidding. Probable bidders:

Blyth & Co. Inc.; Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Lehman Bro¬
thers; The First Boston Corp.; Union Securities
Corp..
and Equitable Securities
Corp. (jointly).

'V/.V-

Monongahela Power Co.
Dec.
sale

11

it

near

was

announced

company plans issuance
the middle of 1953 of
$10,000,000 first

^
£p.dt

mortgages

bonds. Underwriters—To be determined
by competitive?
bidding. Probable bidders: Halsey, Stuart & Co. Inelr
W. C. Langley & Co. and the First Boston

Corp. (joint¬
ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co.;
Glore*,
Forgan & Co.; Lehman Brothers; Equitable
Securities
Corp.; Union Securities Corp. and Salomon Bros:
Hutzler
(jointly); Merrill Lynch, Pierce, Fenner &
Beane; Harriman Ripley & Co., Inc.
'
New

England Electric System

Jan. 22 it
vote

was

announced

stockholders

increasing authorized

on

000 to

common

on

Feb.

24

stock from

will

8,500,-

11,500,000 shares and

on a
provision to provide
in connection with
preemptive offerings to stockholders
that cash or full share
rights may be issued in lieu of

rights to fractional shares. Underwriters—To be deter¬
mined by competitive
bidding. Probable bidders: Blyth
& Co., Inc., Lehman Brothers
and Bear, Stearns & Co..

(jointly); Merrill Lynch, Pierce, Fenner & Beane, Kid¬
der, Peabody & Co. and White, Weld & Co.
(jointly).
Offering—Not expected till later in year.
New

Jersey Power & Light Co.

Feb. 11

it was announced
company plans issue

and sale

$5,500,000 first mortgage bonds due 1983. Un¬
be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler;
Kidder, Peabody & Co. and Whiter
Weld & Co.
(jointly); Smith, Barney & Co.; Union Se¬
curities Corp.; Carl M.
Loeb, Rhoades & Co. Offering—im¬
probably in May, or June.New Orleans Public Service Inc.
15 it was reported

Dec.

(4/14)

plans to sell about
bonds
due
1983.
Pro¬

company

$6,000,000

of

ceeds—For

termined

first

new

mortgage

construction.

Underwriters—To be de¬

by

competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers; Kidder*
Peabody & Co. and Stone & Webster Securities Corp.
(jointly); Equitable Securities Corp.; Union Securities
Corp.
Bids — Tentatively scheduled to be received
on April 14.
,
if +
New York Central RR.

bidders:

Halsey, Stuart

&

Co.

Blyth & Co., Inc. and The First Boston Corp.
(jointly); W. C. Langley & Co.; Smith, Barney & Co. :

(3/4)

Feb. 3 it

was reported company
plans to issue and sell
competitive bidding on March 4 an issue of $9,375,00®
equipment trust certificates due in instalments over a
period of 15 years. Probable bidders: Halsey, Stuart &

at

Co. Inc.; Salomon Bros. & Hutzler.
Northern Indiana
Jan. 7 it
sell
near

securities.

tive

additional

share for each five

(

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.
and
Lehman Brothers
(jointly); Kidder, Peabody &
Co. and White, Weld & Co.
(jointly); Union Securities
Corp. and
Merrill
Lynch, Pierce, Fenner & Beane

bank

new

stockholders
to

..

(4/17)

reported company may issue and sell
first mortgage bonds. Underwriters—To

determined

Dec.

common

subscribe

reported company plans to issue and sell
in May about $8,000,000 of first
mortgage bonds due 1983,
Underwriters—To be determined by competitive

was

of

to

to

Metropolitan Edison Co.

derwriters—To

The First Boston Corp.; Salomon Bros &

1953,

.

•

ers—To be determined

by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; White, Weld & Co.

par)

scrip.
Underwriter—None.

of about

bidders:

an

for

reported company plans to issue and sell
$8,500,000 of first mortgage bonds due 1983. Underwrit¬
was

27,

basis of one

on

will expire on April 14.

•

Jersey Central Power & Light Co.

Feb.

company

Merritt-Chapman & Scott Corp. (3/27)
Jan., 7, Ralph E.
DeSimone, President, announced that

to

company

be

York.

(jointly); Stone
Corp.; Carl M. Loeb, Rhoades & Co.

it Helicopter Air Service,
Feb. 9 it
for

$10,000,000

program.

Co.

writers—For common stock to be determined
by compet¬
itive bidding. Probable bidders: Merrill
Lynch, Pierce,
Fenner & Beane and Lehman Brothers

March 2.

IDec.

(jointly);

mortgage bonds later in the year. Proceeds—For
construction program, expected to cost between
$26,000,000 and $28,000,000 this year. The exact amount of
the
bond offering has not yet been determined.
Under¬

Corp.; Merrill Lynch, Pierce, Fenner
Beane; Shields & Co.; White, Weld & Co. Bids
Expected April 7. Registration—Tentatively planned for
—

Co.

16, it was announced company is planning to sell
$6,000,000 in common stock in June and a certain amount

Feb.

/

and sell
due Feb,

of first

and Shields & Co.

.sell

proval

Utilities

ders:

was

&

Jan.

to mature

it Detroit Edison Co.

Drexel

Corp.; Equitable Securities Corp.; Leh-

Brothers. Registration—Planned for
May 8. Bids—
Tentatively expected at 11 a.m.-(EST) on June 9.
■

Gulf
\

Hutzler and

man

to

company proposes
Jan.
13
a
total

record

23,640 additional shares of

Feb. 9 it

&

Union Securities

'

ity1 to borrow from banks

.

will

issue

of

construction

Salomon

announced

primary rights would be issued

program. - Underwriters—To be de¬
by competitive bidding.
Probable bidders:)
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; The First
Boston Corp.; Kidder,
Peabody & Co. and White, Weld
& Co. (jointly); Merrill
Lynch, Pierce, Fenner & Beane,

Productions Corp.
Jam 9 it was reported company
plans issuance and sale
Of about 500,000 shares of common stock.
Price—Ex¬

was

$17,000,000 of first mortgage and collateral bonds

to

(3/24)

termined

.".'Cinerama

it

(2/25)

Corp.; Merrill Lynch, Pierce, Fenner & Beane; Blyth &:
Co., Inc.; Glore, Forgan & Co. Bids—To be received
upr

to be received

(6/9)
Jan. 28 it was reported
company plans issuance and sale
of $7,000,000 of first
mortgage bonds due 1983. Proceeds
—For

10

RR.

1983. Proceeds—For refunding. Underwriters—To bes
determined by competitive
bidding. Probable bidders^
Halsey, Stuart & Co. Inc.; Kidder Peabody &
Co.; W. C.
Langley & Co.; Coffin & Burr, Inc.; The First Boston.

March 24.

on

Gulf Power Co.

;

,

Bids—Tentatively expected

(EST)

a.m.

Registration—Scheduled for Feb. 20.

be dated April

1, 1953, and to mature in
15 equal annual instalments from
April 1, 1954, to 1968,
inclusive. Probable bidders:
Halsey, Stuart & Co. Inc.;

6 it

(jointly); Blyth & Co., Inc^;
(jointly); Salo-"

Shields & Co.

1,

9, company applied to SEC for authority to issue
and sell 100,000 shares of preferred stock
(no par). Pro¬
ceeds—For construction program.
Underwriters—To be
determined by competitive
bidding. Probable bidders;
Blyth & Co., Inc.; Lehman Brothers; Morgan Stanley &
Co.; The First Boston Corp.; Union Securities Corp. and
Equitable Securities Corp. (jointly).
Bids—Tentatively
expected to be received at 11 a.m. (EST) on March 24.

Bids will be received by the
company at 400 West Madi¬

Salomon Bros.

20.

Georgia Power Co.

by competitive bidding
bidders: Halsey, Stuart &
Co., Inc.; Kidder,
Peabody & Co.; The First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Beane.

certificates to

be

Feb.

determined

North Western Ry.

11

by $9,000,000 first

Probable

if Chicago &

Underwriters—To

(jointly); Morgan Stanley
Co.; Harriman Ripley & Co. Inc. Registration—Planned

&

for Feb.

mortgage bonds held in the treasury. Proceeds—To pay
off $3,000,000 of notes and for
working capital. Under¬
To

program.

Feb.

and Salomon Bros. & Hutzler

Jan.

bonds

construction

determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers; Kuhn, Loeb
& Co.; Blyth & Co., Inc. and
Kidder, Peabody & Co.
(jointly); The First Boston Corp.; Union Securities Corp.
and Equitable Securities
Corp. (jointly); Shields & Co.

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzlei;; R.
W. Pressprich & Co.;
Kidder, Peabody & Co.

trust

Maine Central

Feb.

mature in 30 equal semiannual installments from
1953
to
March
1,
1968, inclusive.
Probable

Feb.

and

Boston

(3/24)
9, company applied to SEC for authority to issue
and sell $16,000,000 first
mortgage bonds due 1983. Pro¬

(3/5)

5 for the

—

issue and adj

may

.•

Eastern Illinois RR.

Bids will be received by the
company at 332 So. Michi¬

writers

company

& Hutzler; W. C.
Langley & Co., The Fir*t
Corp., and Glore, Forgan & Co. (jointly); Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody Ac
Co. (jointly); Harriman
Ripley & Co., Inc.

to

Merrill, Lynch,
clearing agent in last

Georgia Power Co.

ifChicago &

collateral

announced

Bros.

mon

Hutzler.

gan

was

& Co. and Lehman Brothers

stock

common

it

White, Weld & Co.

planning issuance

l-for-15 basis.

acted

15

mid-year about $10,000,000

of first mortgage bond*.
Underwriters—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loe£»

Underwriter—G. H. Walker &
Co., St. Louis, Mo.
• General
Public Utilities Corp.

Co.

if Chesapeake & Ohio Ry. (3/12)
Bids are expected to be received
by

stock,

series A, (par $10); and any unsub¬
public. Proceeds—To redeem $10 par
(61,881 shares outstanding at Nov.
30, 1952) and for working capital. Price—$11
per share.

Bids

53

an

was

Public Service Co.

announced that company

plans to issue an<5
$23,000,000 of new securities in th©
(in addition to 80,000 shares of cumulative,

additional

future

preferred

stock

recently

offered).

Proceeds—For

new-

construction.
•

Northern Natural

Feb.

4

filed

thority to

an

Gas

Co., Omaha, Neb.
application with FPC for au¬
pipeline facilities to cost an esti¬

amended

construct

mated

$66,248,000
(compared with previous
request
covering $69,826,000).
This would include about 425
miles of main pipeline. Probable bidders for $40,000,00®

Continued

on

page

The Commercial and Financial Chronicle

54

Continued from page
of debentures or bonds:

Proceeds—To

53
Blyth

Halsey, Stuart & Co. Inc.;

Peabody
probably

The First Boston Corp. and Kidder,
(jointly). Common stock financing will
be done via rights.
& Co., Inc.;

..

and
one-for-ten

announced company plans to issue

13 it was

Nov.

stock at about a
shares of common stock outstanding).
Proceeds-srFor new construction. Underwriters—May be
determined by competitive bidding. Probable bidders:
Lehman Brothers; The First Boston Corp.; Smith, Bar¬
ney & Co. and Harriman Ripley & Co., Inc.

sell

additional

basis

common

(2,411,945

Pacific Northwest

•

$186,000,000, including $2,000,000 for
Financing is expected to consist of first
mortgage pipe line bonds and preferred and common
stocks.
Underwriters—White, Weld & Co. and Kidder,
is

project

working capital.

Peabody & Co., both of New York, and
rities Corp. Ltd., Toronto,

Southern Ry.
Electric & Gas Co. (3/18)
Dec. 23 it was announced company plans to issue and
H. Blake, President, announced that as a
$10,000,000 of St. Louis-Louisville division first
first step in raising funds to carry forward the--company> ; sell
construction program (to involve approximately -$90,-;. mortgage bonds. Proceeds—For refunding. Underwriters
000,000 in 1953) it contemplates selling 750.000 'mares / —To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody ,&
of common stock.
Underwriters—Last public stock fi¬
Co. and White, Weld & Co. (jointly); Morgan Stanlpy
nancing in 1952 was handled by Morgan Stanley & Co.,

in

company

will

1953

that

$125,000,000 from

borrow some

banks to be refinanced later in year,

probably by offer¬

of bonds and additional common stock. Probable
bonds: Halsey, Stuart & Co. Inc.; Morgan

ing

bidders for

Stanley & Co.; White, Weld & Co.; Lehman Brothers and
Union Securities Corp. (jointly).
Stock would be of¬
fered to stockholders, without underwriting.
American
Pacific

27

it

announced

was

91.25%

of

shares.

common

Peninsular Telephone
Jan.

parent, owns

Co.,

Telegraph

&

Telephone

Co.
company

plans to offer for

subscription by its common stockholders one additional
share for each five shares held (including the shares to
issued

be

upon

record Feb.

of

9

payment to common stockholders of
a 20% stock dividend).
Price—To be

Proceeds—For

later.

named

construction and ad¬

new

Underwriters — May be Morgan
Stanley & Co., Coggeshall & Hicks and G. H. Walker

ditions

property.

to

& Co.

plans to issue and sell
in June about $12,500,000 first mortgage bonds due 1983
and a like amount later on. Proceeds—For construction
program. Underwriters—To be determined by Competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

Inc.; Kuhn, Loeb & Co.; Kidder, Peabody Co.;
Boston Corp.; Equitable Securities Corp.

Resort Airlines,

scription

Oakes, President, announced that
will require the sale of from
$20,000,000 to $25,000,000 of first mortgage bonds, with
total financing for the four-year period running about
$65,000,000. If sold competitively, probable bidders may1
include: Halsey, Stuart & Co. Inc.; The First Boston'
Corp.; Equitable Securities Corp.; White, Weld & Co.;
23, Charles E.

Oct. 24 it

was

plans to offer for sub¬

minority stockholders

by

of record Feb.

State Bank of
Feb. 2 the

20,

tional

Fiduciary Management, Inc., owner

one
.

of 8,956,240 shares,

unsubscribed shares.

will buy all

Light & Power Co.

Rockland

F. L. Lovett, President,

mortgage

Underwriters—To be determined by
Probable bidders:

competitive bidders.

Halsey, Stuart & Co. Inc.; The First

Boston Corp.; Glore,

Forgan & Co.; Kuhn, Loeb & Co.

Permian Basin

Pipeline Co., Chicago, III.
Feb. 4 company filed an amended application with FPC
for authority to construct a 163-mile pipeline system at
an estimated cost of $40,269,000.
Probable underwriters
for convertible notes and stock; Stone & Webster Secu¬

Corp.; and Glore, Forgan & Co., both of New York.
stock of this company, 51% is now owned by

Public Service Co.

Hampshire
Nov. 3 it was announced company plans to issue and
sell approximately $5,000,000 of bonds in May or June,
1953, and in the latter part of 1953 to issue sufficient
common shares to raise about $4,000,000.
Proceeds—To
bank

repay

loans

and

for

new

construction.

Under¬

the basis of

increase

capital

Price

and

& Hutzler,

—

$25

surplus.

per

To

(4/13)

reported company plans to issue and sell

was

first

$9,000,000

—

Salomon

—

New York.

Electric Service Co.

15 it

share. Proceeds

Underwriter

mortgage

bonds

1983 and 80.000
Proceeds—For new

due

$5,500,000 of first mortgage bonds and $5,500,000
prefererd stock in 1953 and $6,000,000 bonds, $6,000,000
preferred stock, and $1,000,000 common stock in 1954.
Proceeds—For expansion program. Underwriters — For
bonds and preferred stock may be determined by com¬

petitive bidding. Probable bidders: (1) For stock, Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly); Kuhn, Loeb & Co.; Union Securities

petitive bidding, Probable bidders: (1) For bonds—Hal-,
sey, Stuart & Co. Inc.; First Boston Corp. and Salomon
Bros. & Hutzler (jointly); Stone & Webster Securities
Corp.; Lehman Brothers, Bear, Stearns & Co. and A. C.
Allyn & Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner & Beane; Estabrook & Co.
(2) For preferred—Stone
& Webster Securities Corp.; Lehman Brothers; W. C.
Langley & Co.; Estabrook & Co. and Kidder, Peabody &
Co. (jointly). Common stock will probably be offered
for subscription by stockholders.

Loeb

viz:

Gas & Electric Co.
Dec. 29 it was reported that the company plans some
new common stock financing in the near future.
Under¬
San Diego

Co., Los Angeles, Calif.

Seaboard Finance

9, Paul A. Appleby, President, announced plans for
offering an issue of non-convertible preferred stock (no

par). Proceeds — For working capital
Underwriter—The First Boston Corp.

and expansion.

Corp.;
Corp.

Harriman Ripley & Co. Inc.; The First Boston
(2) For bonds, Halsey, Stuart & Co. Inc.; Kuhn,
& Co., Lehman Brothers and Blyth & Co., Inc.

(jointly);

announced

was

proposes

company

Co. and Dominick & Domi-

May be Morgan Stanley &

nick, both of New York.

Bros.

Securities

Union

Hutzler;

&

MerrillfLynch, Pierce, Fenner & Beane (jointly);
If ©yes & Co. and Drexel & Co. (jointly). Bids
—Expected on April 13. Registartion—Tentatively sched¬
and

Hemphill,

uled for March 5.

it

15

Dec.

reported company

was

first

of

000,000

-

Power & Light Co.

Texas

sell about $11,-

Proceeds—For

Halsey, Stuart &
Kidder,

Probable bidders:

bidding.

petitive

may

bonds.

mortgage

new
Underwriters—To be determined by. com¬

construction.

Inc.; Kuhn, Loeb & Co., Blyth & Co., Inc.,

Co.

& Co. and Merrill Lynch, Pierce, Fenner &
(jointly); The First Boston Corp.; Union Secu¬

Peabody

Corp.; Hemphill, Noyes & Co. and

rities

Drexel & Co.

(jointly); White, Weld & Co.; Lehman Brothers.
ing—Tentatively expected in May.

Offer¬

Utilities Co.
it

15

Dec.

to offer
additional common stock to its common stockholders.
Stockholders will vote April 15 on plan. Underwritersit

16

Salomon

Corp.; The First Boston Corp.; Kidder, Peabody & Co.

Texas

(Alexander), Inc.

Smith

Underwriters—To be determined by com¬

construction.

Beane

Feb.

that

reported

was

following

completion

of

proposed financing by Dallas Power & Light Co., Texas
Electric Service Co. and Texas Power & Light Co., sub¬
sidiaries (which
common

see) the parent plans to offer additional
stockholders.
Underwriters — Union

to

stock

Securities Corp., New York.
i

it Southern California Gas Co.
Jan. 30 this company and Southern

Counties Gas

Co.'

construct

Underwriters—For

parent.

bonds,

to

determined.

be

by competitive bidding. Probable bidders for Southern
California
bonds:
Halsey, Stuart & Co. Inc.; White,
Weld & Co. and Union Securities Corp. (jointly); Blyth

Inc.
Probable bidders for Southern Counties
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane and Harris, Hall & Co., Inc. (jointly);
&

Co.,

bonds:

Blyth & Co., Inc.; The First Boston Corp.; White, Weld
&

Company.

was

May

share

7.

reported company plans offering of about

for each

shares held; rights to expire on

17

Price—Expected to be named by company on
Proceeds—To increase investments in subsid¬
Underwriters—To be determined by competitive

April 13.
iaries.

Oct.

3 it

reported company plans issue and sale of

was

$7,500,000 first mortgage bonds. Proceeds—For construc¬

Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable Securities Corp. and Salomon Bros. &
Hutzler (jointly); Carl M. Loeb, Rhoades & Co.; Kidder,
Peabody & Co.; The First Boston Corp. and Glore,

tion program.

Forgan & Co.
Barney &

(jointly); Union Securities Corp.; Smith,

Co.; White, Weld & Co. and Merrill Lynch,

Lehman

Pierce,' Fenner & Beane (jointly);
Offering—Probably early in 1953.

Brothers.

+ Trans-Northwest Gas, Inc., Spokane, Wash.
Feb. 4 sought FPC authority to construct and operate a
pipeline system to serve eastern Washington and north¬
Idaho to ccst an estimated $19,765,480. Underwriter

ern

May be Eastman, Dillon & Co., New

1,000,000 additional shares of common stock (par $5) to.
stockholders of record about April 15 on a basis of one
new

Toledo'Edison Co.

York.

(4/15)

Southern Co.
Jan. 28 it

of New

101,725 addi¬

on

shares of preferred stock (par $100).

the

Northern Natural Gas Co.

(par $10)

pects to raise about $24,000,000 in the next two years
through sale of bonds, and preferred and common stock,

cost, and the remainder of the proceeds to come from
sale of common stock to Pacific Lighting Corp., the.

issue

securities. Proceeds—To finance

capital stock

to expire Feb. 20.

Dec.

announced company ex¬

of

share for each three shares held Jan. 29; rights

new

Bros.

Albany, N. Y.

bank offered to its stockholders

shares

Texas

bonds or other debt
construction programs.

will

for

(2/20)

Inc.

announced that company and each of its

Peoples Gas Light & Coke Co.
subsidiaries

Loeb & Co. Bids—Had been tentatively
Jan. 22, but offering has been deferred

Co.; Kuhn,

scheduled

18.

applied to California P. U. Commission for authority to
a
73-mile pipe line and other facilities at anestimated cost of $7,482,194. Of the total, Southern Cali¬
fornia would spend $5,600,000, and Southern Counties the
balance.
Bonds would be sold to pay one-half of the,

Smith, Barney & Co.

Of

&

Bids

March

on

expire about March 16. Price—20 cents per share. Proceeds—For working capital, etc. Underwriter—None, but

Jan.

financing this year

rities

(jointly).

& Co.

received

1,449,374 additional shares of capital stock (par 10 cents)
at rate of one new share for each share held; rights to

The First

Pennsylvania Power & Light Co.

•

be

to

Feb. 6 it was announced company

Pennsylvania Electric Co.

new

Glore, Forgan

expected

writer—Blyth & Co., Inc., New Y'ork and San Francisco.

Feb. 11 it was reported company

Jan.

and

& Co.

Drexel

Nov. 12,

Mark

17

.Inc.; Kuhn, Loeb & Co.; The First Boston Corp., Blyth
& Co. Inc. and Kidder, Peabody & Co. (jointly). Afty
stock financing may be via stockholders.

Public Service

Dominion Secu¬

Canada.

Telephone & Telegraph Co.
R. Sullivan, President, announced

Pacific
Dec.

•.

Halsey, Stuart & Co.

due to market conditions.

received FPC permission to file a third
application proposing to construct a 1,466mile transmission line extending from the San Juan
Basin in New Maxico and Colorado to market areas in
the Pacific Northwest.
Estimated overall capital cost
substitute

the

bidders for bonds:

Jan. 20, George

Jan. 29 company

of

time. Probable

•

Boston Corp.

—Tentatively

Pipeline Corp.

Thursday, February 19, 1953

by the sale of additional first mortgage bonds or other
securities in such .amounts as -may be appropriate at the

::

bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and Lehman Brothers (jointly); Mor¬
gan Stanley & Co. and Drexel & Co. (jointly); The First

•

Oklahoma Gas & Electric Co.

bank loans and for new construc¬
be determined by competitive

repay

Underwriters—To

tion.

& Co.

•

.

(826)

it United Gas Corp.
Feb. 11 it was reported company may issue and sell in
May or June about $20,000,000 of common stock to com¬
mon stockholders on a l-for-15 basis and $30,000,000 of
debentures.'

Proceeds—For

Underwriters—For

stock,

competitive

determined-by

construction

1953

program.

debentures, to be

For

none.

Probable bidders:

bidding.

bidding.
Probable bidders: For bonds, Halsey, Stuart & Co. Inc.;
The First Boston Corp. and Coffin & Burr, Inc.
(jointly);
Kidder, Peabody & Co.; White, Weld & Co. For stock,
Kidder, Peabody & Co. and Blyth & Co., Inc. (jointly);
Harriman Ripley & Co. Inc.

bidding.

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.,-White,
Weld & Co. and Equitable Securities Corp.
(jointly);

First

The First Boston

• Public Service Co. of New Mexico

—Planned

Jan. 30 it

it Southern Counties Gas Co. of California
See Southern California Gas Co. above.

writers—To

be

determined

by

competitive

(3/17)
reported company plans to issue and sell
30,000 shares of cumulative preferred stock (par $100).
was

Price—To be named later.

Proceeds—For

new

Registration—Expected about Feb. 25.
writer—Allen & Co., New York.
Jan.

30

it

was

reported

company

Under¬

issue

and

sell

Stuart & Co. Inc.; Salomon Bros. &
Hutzler; White,

%

(jointly); Glore, Forgan

C°J *fajriman Ripley & Co., Inc.; The First
17.

Public Service Electric & Gas Co.
Jan. 12 it was reported company plans issuance and sale
m

May of $50,000,000 of first refunding mortgage bonds.




1

Southern Indiana Gas &
Jan. 30 it

was

Electric Co.

of

one

pire

on

new

Proceeds

—

For

Corp., Harriman Ripley & Co., Inc. and
& Co.

(jointly).

it Western Light & Telephone Co., Inc.
Feb. 2 it was announced the additional financing will be

been

(3/25)

worked

(Inc.),

-

out.

Chicago,
coln/Neb.

Underwriters—Harris.

111.,

and

The

March 25

on

the basis

Wisconsin Public

Price—To be supplied by amendment..
construction

program.

Underwriter

—

Nov. 26 it

was

Service

financing prior to June 1, 1953, which may include the
issuance and sale of between $7,030,000 and $8,000,000
of bonds and from

An

$2,000,000 to $3,000,000 of preferred

indeterminate

number of shares of common

fering in January, 1949.

stock" may be offered late in 1953 or

3

FPC

facilities
it

had

sell

Natural

been

to

announced

additional

financing,

Gas Co.

authorized

estimated

Co.

Corp.

stock.

Nov.

&

announced that company plans permanent

Smith, Barney & Co. handled the last common stock of¬
Southern

Hall

First Trust Co. of Lin¬

authority to issue 114,167 additional

share for each six shares held; rights to ex¬

April 10.

Sachs

required during the early part of this year to carry out
construction program.
Type of financing has not yet

announced company has applied to Indiana

to common stockholders of record

Boston

Corp.; Kuhn, Loeb & Co. and Union Securities Corp.
(jointly). Bids—Tentatively expected to be received on
March

for March 13.

Goldman,

shares of its common stock (no par), to be offered first

$6,000,000 of first mortgage bonds dim 1983
Prnc«mrt«J—
For construction
program. Underwriters—To be deter¬
mined by competitive
bidding. Probable bidders: HalWeld & Co. and Shields & Co.

Corp.; Lehman Brothers; Morgan Stanley
Co. and Merrill Lynch, Pierce,.
Fenner & Beane (jointly).
Bids—Tentatively expected
to be received at 11 a.m. (EST) on April 15. Registration

P. S. Commission for

(3/17)

may

Boston

& Co., Kidder, Peabody &

construc¬

tion, etc.

• Public Service Co. of Oklahoma

Probable bidders: Blyth & Co., Inc.; Equitable
Securities Corp. and Union Securities Corp. (jointly); !

company

cost

that

to

construct

$32,518,500.
the

On

company

expects

early in 1954. Stock

be handled by The First

15

Bostqn.jQorp. and Robert W. Baird & Co. Probable bid¬
ders for bonds: Halsey, Stuart & Co. Inc.; The First

to

Boston

pipeline
Sept.

if negotiated, may

bonds

&

Corp.; Union

Securities Corp.; Kidder, Peabody

Co.; Shields & Co.; Merrill Lynch. Pierce, Fenner &

during the first six months of
1953 in the amount then permissible under its mortgage

Beane; Harris. Hall & Co. (Inc.); Carl M. Loeb, Rhoades

indenture, and to provide for other permanent financing

&

Co.; Salomon Bros. & Hutzler.

Number 5196

Volume 177

.

.

The Commercial and Financial Chronicle

.

(827)

Join

Calif.

BEN1CIA,

Barkley

Arthur

and

L.

T.

Larson

ANGELES, Calif. — John
H. Kennedy is now affiliated with
E.

Merritt

South Sring Street.

Company, Inc.

Hutton

F.

&

Company,

lian H.
nected

with

-

Calif.—Lil¬

has become

Nicolosi

Douglass &

con¬

Co., 464

North Bedford Drive.

(Special to The Financial

LOS

A

210

West

bers

of

Seventh

the

Los

With Shearson, Hammill

of

divishare has

per

Bell,

Street,

mem¬

Angeles

Stock

($.50)

share

per

Corporation

PITTSBURGH

declared On the 2,658,230

was

New York, N. Y.,

February 17, 1953.

February 17. 1953.

PICTURES

THEATRES

•

The Board of Directors has declared

McVickar, Jr. has joined the staff

a

outstanding Common Stock of the

Hammill & Co., 9608

dividend of 20c per share on the

-Company,

66th

payable

March 31,

on

o(
will

1953, to stockholders of record at the closfe

Dividend

Reeves & Co.

business

to

shareholders of

„.c,ose of business

March

on

Checks

1953.

13,

Secretary-Treasurer

u

Johns-Manville
Corporation

m
hi 1

DIVIDEND

PRODUCTS

The Roard of Directors declarad
of

75c

per

payable

share

March

record March

the

on

a

dividend

Common

1953,

12.

of

2, 1953.

ROGER

CORPORATION

HACKNEY, Treasure

Vice Pres. & Treasurer

«>

With Taylor & Co.
The

(Special to The Financial Chronicle)

AMERICAN
BEVERLY

HILLS,

Calif.

Company,

Drive.

Camden

North

364

declared
The

Board

Export

ciated with Taylor and

13,

dividend

of

of

Directors

of

Lines,

February

Inc.,

at

and

stockholders

record

of

the

on

13,

COMMERCIAL SOLVENTS

Public Service Electric

Corporation

Com¬

1953,
2,

and Gas

to
DIVIDEND

1953.

No.

111

!

BEVERLY HILLS,

ald

Eisner

have joined
&

C. J. Kinney
Secretary-Treasurer

Calif.—Don¬

Hazel

and

M.

Rivett

February

13,

(25c)

the

on

stock of this

Reed, Inc., 8943 Wilshire Boule¬

March

31,

record

at

E.I. DU PONT DE NEMOURS & COMPANY

of

1953

twenty-five

outstanding

of

A. R.

LOS

ANGELES,

Sattler

seph
with

is

Calif.

—

on

Floyd A. Allen & Company,

650

Inc.,
Mr.

Grand

South

Sattler

Standard

Avenue.

previously with

was

Investment Co.

fornia and

Dividends of $1.02

share
and

the Preferred

on

87ViC

—$3.50

of Cali¬

share

a

Series,

of

16^ 1953

a

business
share

payable

10,

Common

April

$ 1.17Va

also

85(1

the

first

as

cents

close

of

(Special to The Financial Chronicle)

;

LOS

S.

has

L.

DU

P.

February 24,

on

been

added

to

dividend

NOTICES

of

SI.75

r,hare

per

StcCK

cf

upon

this

mm

the out¬
has

company

declared

jjend of
5x2.50

payable Apni 1, 1953, ana a d.v.37'zC per share upon the outstanding

par

pany has
to holders

March

value Common S.ccic
been declared payab c

12,

of

record

the

at

of

ss

B.

FLOOR

■■

me

GREEN

BAY

&

share and

The

of

Board

has

Directors

fixed

12*4

No

able
New

February 13, 1953;
■

Class

York,

-

•>

,

,*,

fix«d and declared as pay¬
Dch?ntures.
W. W. COX, Secretary.
New York, January 29, 1953.

payment
on

.

payable

March

record

February

17,

share

a

the Com¬

on

■■

on

Stock, payable March 3,
to

February 25, 1953.
G.

■■

W.

a

THORP, JR.

pay

Fehrwirv 17. 1953.

'■

of

■■

United

COMPANY

Walter A.

Cyanamid

today
dividend of

Company

one-half

and

(87 \'iv> per share on the outstand¬
ing shares of the Company's 3 Va'X

Peterson, Treasurer

February 11,1933.

Cumulative Preferred Stock.
A

Series

and

1953,
of

NOTICE

payable

B.

the holders

to

record

March

LIQUIDATION

cents

at

the

Series

April

such

of

close

of

1,

stock

business

1953.

3,

COMMON

No.

'Metuchen,
closing

its

Association

•

National

in

the

State

affairs.
are

Bank,
of

All

located

New

at

Jersey,

creditors

of

is

the

therefore

hereby notified
the undersigned, at 85
Rector Street, Metuchen, N. J.
to present claims to

Phil T.

Ruegger

Thomas D. AInslie
Louis H. Meade

Liquidating Committee
Dated:

January 20,

1953,




can

Cyanamid Company today

clared

a

standing
Stock

such
of

share

per

of

shares

of

March

de¬

quarterly dividend of fifty

(50<->

cents

the

27,

stock

business

to

March
R.

the

record

S.

3,

the

out¬

Common

Company,

1953.
of

on

the

payable

holders

at

the

pay

of

close

the

215

on

be

must

year

KYLE,

Secretary

31st

same

for

used

the

on

Stock

5% Preference Stock. All

received

in

London

on

be¬

or

February 27th will be in time for
dividends to

dividend

issued

transfers
before

Preference

6%

received

♦

(less

in

tax)

Stock.

London

All

on

or

April 7, 1953 will be in time for
of dividends to transferees.

payment

credit

by

the

United

under

States

Kingdom,

Section

Internal

application

Trust

to

131

of

Revenue

to

to

all

the

usual

dividend

half-yearly

the

Provincial

National

of

YALE & TOWN E

Savoy

Court,

Strand,

DECLARES

Code

mentioned

BRITISH-AMERICANTOBACCO COMPANY, LIMITED

259th

Limited,

London,

(excluding

Saturday)

before

500 PER SHARE

payment
On

DATED 10th

shore

1953,

per

declared

was

by the Board of Di¬

SECRETARY.

rectors

of

out

past

earnings, payable on
April lr 1953, to

r
may

virtue

be entitled by
Donble

of Article XIII (1) of the
Taxation
Treaty between the

stockholders -of
ord

United

Revenue

Code

at

1953.

March
■

rec¬

close of

the

business

States and the United Kingdom, to a tax
credit under Section 131 of the United
Internal

29,

fifty cents (50*)

BY ORDER

A. D. McCORMICK,

States

Jon.

dividend No. 259 of

February, 1953.

Stockholders who

DIVIDEND

W.C.2.,

is made.

Egham, Surrey.

Guaranty
York obtain

Bank

for examination five clear business days

the

dividends.

February 10, 1953

Boston, Mass., February 16, 1953

on

Rusham House,

the

above

EMERY N. LEONARD

Secretary and Treasurer

(excluding Saturday) before

.a

Company of New
certificates giving particulars of rates
of United Kingdom Income Tax
appro¬
priate

the capital stock oi

for examination five clear busi¬

the 5% Preference Stock (less
Income Tax) for the year ending 30th
September next will also be payable on
the 31st March, 1953.

may be entitled by
XIIl(l) of the Double
Taxation. Treaty
between the United

and

on

Company has been declared
payable April 15, 1953 to stock¬
holders of record March 13, 1953.

payment is made.

of Article

States

share

must

days

Stockholders who

virtue

deposit Coupon No. 215
Guaranty Trust Company of

dividend of seventy-five cents

per

Coupon No. 99 must be deposited with

transferees.

April 30, 1953

of 3%

March, 1953.

this

York, 32, Lombard Street, London,

E.C. 3.,

215tli
A

the

The

Ordinary

on

Holders of Bearer Stock to obtain this

2%%

the

on

dividend

interim

Ordinary Stock, free of United
Income Tax will be payable

dividend
with

1953.

New York. February 17, 1953.

of

Kingdom

Coupon No. 99 must be used for divi¬

can

Metuchen

£l

first

and

United

DIVIDEND

Consecutive Quarterly Dividend

ness

tax

The Board of Directors of Ameri¬

UNITED FRUIT COMPANY

half-yearly dividend of 2l/z% (less tax)
on
the issued 5% Preference Stock.

on

DIVIDEND

quarterly

a

eighty-seven

to

BEARER.

the

New

half-yearly

The Biiard of Directors of Ameri¬

decided

Shilling for each One

Also decided to pay on

A

was

Kingdom Income Tax.

payment of

can

^

'

Ordinary Stock for the year ending 30th
September 1953 of one shilling for each

day

Common Stock

declared

WARRANTS TO

ending September 30, 1953 on the issued
Ordinary Stock of the Company, free of

fore

of

EAST

THE

J. E. REEVES, Treasurer

February 16, 1953.

ORDINARY AND PREFERENCE STOCK

TOBACCO

Ordinary Stock for the

transfers

45

Stock

Company will not be closed;'

Secretary.

on

dend

PREFERRED

payable

stockholders

to

close of business

BRITISH-AMERICAN

One

Also decided

5,N. Y.

March 20, 1953. to holders of record
the close of business on February

REGNER,

March 31, 1953 first Interim

on

of

■■

Atlas Corporation

at

1953,

at the

of

1953.

10, 1953 in London it

Pound

■■liiBtaiBiaaiiiaiiiaiiHMMiasa
■BiBBiaaiiiBBiiiaiBiaaiiBiBBaiBBa

regular quarterly dividend of 40(1
per share has been declared, payable

13,

of record

1953,

G.

meeting of Directors held Febru¬

Dividend

ireujuie/

"J

OF

CROSSROADS

stock

A

At

Coupon

27, 1953 on the Common
Atlas Corporation.

share has been declared,
March

Corporation',

to stockholders

1953,

27,

fifteen

COMPANY, LIMITED

dividend

on

March 2, 1953.

NOTICE OF DIVIDENDS TO HOLDERS OF

AMERICAN

No.

the

of

BRITISH-AMERICAN

was

Dividend

16,

of

the capital

on

value)

February

dividend

de¬

"B"■

33 Pirte Street, New York

share,

per

par

quarterly dividend of

net

ness

15c)

'

TOBACCO COMPANY LIMITED

1953, to stockholders of record

bf $5.00

to he payable on the capital stock out
earnings for the year 1952, payable at
Room
No.
3400, No. 20 Exchange Place, NewYork 5, New York, on and after February 24,
4953.
The dividend on the stock will be paid
■to stockholders of record at the close of busi¬

<

■(without

ary

de¬

and

■■

Common

today

a

cents

mon

clared

of

on

PVBLIC SERVICE

a

Dividend
has

tors

RAILROAD

$50.60 the amount payable on Class "A"
Debentures
(Payment No. 57), and a dividend

"cents

extra

an

L.

clared

COMPANY
,

■■

COMPANY, INC.

declared

has

The Hoard of Direc¬

PETERS, Secretary.

WESTERN

ENCAUSTIC TILING

business

ss
*

Directors

of

NOTICE

quarterly dividend of 30c per

March 2, 1953. The transfer books

Stock

1953.
WM.

Beard

mm

of this Com¬
April 1, 1953,

close

of business

quarterly dividend of twenty-five cents (25c)

WALL &

DIVIDEND

record at the close

of the
The

American

Company

Wis., February 16, 1953

Preferred

holders of

DIVIDEND
Manufacturers of TTE

REEVES BROTHERS, «c.

before March 31, 1953

::::::::::::

(Incorporated)

A

on or

&

...

been

the Common Stock,

A

TBriggs & Stratton)

,psr

standing

on

President

n r

Racine,

Dividend

$1.40

GEORGE H. BLAKE

staff of Hemphill, Noyes
Co., 510 West Sixth Street.

J. I. Case

share

a

able

COPELAND, Secretary

the

on

to

the

DIVIDEND

the 4.70% Cu¬

on

ending March 31, 1953, all pay¬

1953.

Calif.—Justin

ANGELES,

Federman

business

share

have been declared for the quarter

CORPORATION

1953, payable March
14, 1953, to stockholders of record at the

Hemphill, Noyes

the

on

Preference Common Stock, and 40

interim dividend for

Joins

a

share

a

BRIGGS & STRATTON

25,

at the close

1953;
Stock

share

mulative Preferred Stock, 35 cents

a

the Preferred Stock

April

on

the

on

$1.12V?.

Stock—$4.50 Serffes

on

both

1953, to stockholders of record
of

Gross, Rogers & Co.

quarterly dividends

a

4.08% Cumulative Preferred Stock,

The Board of Directors has declared this
day

regular

DIVIDENDS

BERGEN,

February 16, 1953.

Wilmington, Delaware, February

connected

now

URQUHART,
Treasurer.

Secretary.

Jo¬

of record

February 13, 1953

QUARTERLY

Floyd A. Allen

stockholders

on

business

(Special to The Financial Chronicle)

f

to

M. W.

1953, to stockholders of
close

per

capital stock of this

common

Corporation, payable

the

the

February 25, 1953.

cents

March 4, 1953.

With

on

share has today been de¬

per

clared

1953

the staff of Waddell

vard.

dividend

A

share

(65<f)

Cents

Corporation, payable March 10,

Company

73
NEWARK. N. J.

(Special to The Financial Chronicle)

dividend

quarterly

a

Sixty-five

of

one-half

March

of Directors has

'

held

1953, declared a quarteily

Stock, payable March

mon

American

meeting

a

thirty-seven
($.37l/a)
per share

cents

Two With Waddell Reed

Board

EXPORT LINES, INC.

—

asso¬

DODGE

PHELPS

Stock

holders

to

C. M0SK0WITZ

CHARLES

Stock

Lorenz C. Evers has become

on

record

February 27.

on
1953. Checks will be mailed.

Charles E. Beachley,

be mailed.

COMMON

1953,

the Com¬

payable

MA3VILLI

Y.

RECORDS

MGM

•

February 18. 1953

previously with Daniel

12,

quarterly

a

on

Company,

March

'

v

NOTICES

Santa Monica Boulevard. Mr. Mc¬

dividend of 75 cents
per share
Stock of the

February 16,1953.
HS

LOEW'S INCORPORATED

COMPANY

meeting held today, declared

mon

WILLIAM T. SMITH, Treasurer

ATKINSON, Treasurer

a

iTtiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

MGM

DIVIDEND

it

1953 to stockholders of record at the close
of business March 2, 1953.

previously with

was

COAL

butstanding, payable March

now

-

CONSOLIDATION

dividend of Fifty Cents

a

13.

of Shearson,

was

The Board of Directors of

shares of the Capital Stock of Newmont Mining

on

E. V.

5

(Special to The Financial Chronicle)

Vickar

February 17, 1953,

The stock transfer books will remain open.

~

Edgerton, Wykoff & Co.

HILLS, Calif.—Noel

50d

the Capital Stock of this
ss
Company, payable March
17,
1953. to
jS stockholders of record February 28, 1953.

Chronicle)^

with Kerr &

now

rcqulnr quarterly

dend

been declared

j=

ANGELES, Calif.—Abie S.

Ohanian is

Exchange. He

BEVERLY

NOTICES

Dividend No. 98
On

With Kerr & Bell

(Special to The Financial Chronicle)

HILLS,

DIVIDEND

Corporation

623
~

„

NOTICES

Newmoiit Mining

MtOMPANittl

~

Douglass Adds to Staff
BEVERLY

DIVIDEND

LION OIL

LOS

have become affiliated with King
&

NOTICES

(Special to The--Financial Chronicle)

George

—

DIVIDEND

With E. F. Hutton

King Merritt

(Speci.il to The Financial Chronicle)

55

10,

.

by

F. DUNNING

application to Guaranty Trust Company
of New York obtain certificates giving
particulars of rates of United Kingdom
Income Tax appropriate to all the above

Executive Vice-President

mentioned dividends.

can

and

THE YALE &

Secretary

TOWNE MFG.

P-»ch HiuirloriWc nairf in

pvatv

venr

„d.

<?inrf> 1883

The Commercial and Financial Chronicle

(828)

56

This recalls an inci¬
early '30's, when the
Treasury, under President Hoo¬
ver was attempting
to wriggle

taxpayer.

BUSINESS BUZZ
"yi'K

Washington
A

Behind-the Seen*Interpretation*

•

'f,

i

./-'V'

'«W*. '*'v
' i.

l'"

y"

•

'.

.

'

■/+>».

■■■

^

..'J

\"?j;
-'fa
ft,, v>

•

' '

the

which

Mill II f-

market

money

f

-

ii\

box

short-term

the

of

out

;

k-Jkt—i

tfi 'Y

A. " 1A

dent in the

V* ;

\

*'.'&■

.

r-sK

>/k 'ft-

W'V 'V

fa <.

*<'\?
'

>'■*

XjLIS/U

from theiNition'iCapital
Nation'* Capital

-'y

•

Thursday, February 19, 1953

...

was

putting financing.
Although the longer-term is¬

Y'::* f

the Treasury offered at the

sue

time

was

although

virtually a failure, and
Treasury officials by

phone put the bite on big insti¬
tutions to take up quotas on

WASHINGTON, D. C.—Some
glay, a suitably discreet time
after the first session of the

But, Republicans are empha¬
tic in pointing out, they
will
wait to see what success they

Eighty-third Congress has van¬
ished into history, it is possible
to imagine most of the bigwigs
of the Republican party condaving to give the lovable old
Dan Reed a testimonial dinner.
For Dan has given the GOP

have

budget,
in

now

This outlook, as the

the

or

the notion of an

main

sources.

has become ob¬
power of the

the

with

years

of

out

profits

handsome

any

contractors.

the

Second,

Consequently, for the GOP, in

comes

pressure

The
the

it will look better if you buy the

course

theory

Over-Emphasized

agement to constantly higher
demands will be weak.

there is restiveness in Congress

,

The

vitiated its firm

stand

cess

course,

a

scheme would

the avoidance of

be

out

arisen

a

tax

of

the

attempt

by

legislate against a moral
concept that certain profits are

law to

the

balancing

This

no mere pose,
but the ardent belief

Reed

Dan

Profits Tax" would be

only in a war emer¬
gency. It wouldn't please Wal¬
ter Reuther and John Lewis, but

applied

majority of the Re¬
publicans on both ends of Penn¬
sylvania Avenue.
Chairman

special increment of new

"Excess

of the great

For

Profits Tax."

fantastic headaches which have

first is

budget
of

additional
of regular

"excess."

of

idea

The

an

like

burden but the avoidance of the

of

circumstances

promise if
did not permit.

have

five points

Virtue of such
not

20 years for a balanced budget,
and end up having to renege on

that

to

corporation income tax above a
certain base — maybe it would
be 47% or 50%—called an "Ex¬

promised tax relief, it would be
doubly ridiculous. It would have
both

to

is

scheme

new

something
three

prematurely

had

GOP

on

wage

Likewise it
is recognizing that outpayments
for price supports, or for a pos¬
sibly enlarged Korean war, or
for other unforeseen contingen¬
cies could preclude balancing
the budget in fiscal 1954. Then
the

EPT

the

it would raise the revenue

of

and

quiet others.

the

before

eserse

balanced

gun

has

budget-isbeen fired,

-

ganda break in years.

By issu¬

St. Paul, the Secretary's care¬
fully-composed, affirmative
statement of his philosophy re¬

ing statements every other day

of their very
•*ra
boys, the GOP has been
able to get across to even the
moron trade as it never could
have been done otherwise, the
Idea

one

Republicans

that

when

business

they

ceived only the most
attention.

it has been cur¬
what was good
for farmers was good for the
country, and no expense was too
great to maintain farm pros¬
perity.

they

Actually, assuming the retired
estimate of expendi¬

Truman's

1954

is

in

probability too high,

as

usual,

for

fiscal

Mr. Benson has enunciated

all

recission of existing expendi¬

and also assuming that
Charley Wilson at Defense can

tures,
crack

some

brass heads and

re¬

duce the proliferation and vari¬

ety of duplicating weapons the
military is ordering, there will
be

elbow

room

budget and
ft

is

pass

to

balance

eral bounty.

the

Neither

the Reed bill.

acknowledged

that

correspondent

the

summarize or

Seed bill is the logical political
device, for it affords some indi-

see

mme
m




nor

can

any

adequately

extract

,

precisely

what

the Sec¬

the

reported last week,

as

it
inquiry,
emphasized.

tions, the Farm Bureau or the
Grange, are criticizing Benson.
As a matter of fact, these organ¬
izations for a long time havefelt that ultimately mandatory
high price supports would de¬
feat the thing they and Benson
have in common—Treasury sup¬

this
ascertained
been over¬

prices,

farm

falling

restiveness,

was

upon

has

falling
cattle prices have come from
the Democrats, who
are
also
agitated about the price of cot¬
The chief yelps about

The

ton.

tinue

will

Democrats

prevent undue crashes

to

of farm commod¬

in the values

con¬

ities.

attack

of

drumfire

the

port

against Secretary Benson for
not using his discretion to sup¬
port cattle and other perish¬
ables, on the theory that if farm
prices continue to sag, they are
building up a record for cam¬
paign purposes. If prices, after
some
sagging, hold, as Benson
seems to expect, then the pub¬
lic will forget the Democratic

Finally,
spokesmen
clamor

cattle industry
responsible
has not joined the

the
its

through

own

for government buying
This industry by

of beef cattle.
and

large

new

philosophy is toward agricul¬
ture* the. ^statement * is - worth

both

opposed

has

price supports and price control.
Only

few individuals on the

a

fringe of this business are doing
the hollering.

yelps.

Boston

record

north

has

come

state

Con¬

—

central

After the Treasury has taken
first
small
step toward

its

talking primarily for home

across

wish

and

to

lengthening out the average ma¬
turity of the Federal debt, by

get

the point that so long as

peanuts,

cotton,

southern

crops

90%

—

offering

and

tobacco—

tificate

are

supported

bond,

they want
wheat, corn, and dairy product
prices also subsidized.
of

parity,

a

and

Wayne
Morse
going to be

what

is

attack

inevitable

left-wing

These north central Congress¬

a

Senator

heralded
the

2Yi% cer¬
5-year 10-month

1-year

the

on

new

of

debt

the

man¬

agement program.

however, do not intend to
follow through and put inten¬

ury was

sive heat upon Benson.

banks and insurance companies

men,

;

Wallace

Mors

P.

of

Bureau

—

Business

Research, Western Re-^
serve
University,
167
Public
Square,
Cleveland
14,
Ohio —
Paper—30c.
France, German and NATO: Outr

Problem—James P.

One

Number

Current Affairs Press,.
Vanderbilt Avenue, New York:

Warburg
25

—

17, N. Y.—Paper—50c.

Survival*:

Bank

Independent

Country Banks irt
New York State—New York State

The

Issue

for

Association,

Bankers

Liberty

33

Street, New York 5, N. Y.—paper,
International Shipping CartelsDaniel Marx,

versity Press,

Jr.—Princeton Unw
Princeton, N. J.—>

Cloth—$6.
Managing
Lasser

and

Henry

Holt

N.

New Lefty Line

These M C's, however,

consumption,

at

Morse Foreshadows

of complaints

source

the

gressmen.
are

6, Mass.

Consumer Credit Facts for Yoia

Madison

Another

implementing

regulations as revised up to Feb.
6,
1953—Foreign Division, The
First National Bank of Boston*

—

Second, by and large, neither
of the
major farm organiza¬

Your

Sylvia

Money—J. K>
F. Porter —

383

Company,

and

New

Avenue.

York

17*.

Y.—Cloth—$4.95.
Small Loan Laws of the Unitedi

of

States—Bureau

Business

Re¬

search, Western Reserve Univer¬
sity,

167

land 14,
Two

Public Square, Cleve-Ohio—Paper—30c,

Ways

to

Stop

Strikes

—

Leonard E. Read—Foundation for

Economic Education, Inc., Irving-

ton-on-Hudson, N. Y.-r-Paper—Nocharge for single copies; quantity
prices on request.

Morse observed that the Treas¬

paying

more money

to

at the expense of the poor little

Against the public clamor of

TRADING MARKETS
Caribe Stores
Gorton Pew Fisheries

George E. Keith Pfds,
Naumkeag Trust Co. (Mass.)
Middlesex Cy Nat Bk (Mass.)

/#

FOREIGN SECURITIES

National

Co.

Common

Norfolk Cy Trust Co

Firm Trading Markets

I

(Mass.)

Polaroid Co. Pfds.

i

Riverside Cement "B"

!

fARL MARKS & P.O. INC.

Rockwood

i

Foreign Securities Specialists

\

■

'

iDTesuwmt

Tel: Miner 2-0050

.

mm.

-

-

■

m

ma

m

m

mm

am

: :

.

mm

Me

Mi

mm

am

.

'

Telephone
•

'am^mm mk .mm mm am

Securities

10 Post Qffieo Sqaare. Boston 9. Mats*

Teletype NT 1-971

,

Pfd.

LERNER & CO.

50 Broad Street... Hew York 4, N.Y.

»

Co.

Southeastern Public Service

other

retary's statement briefly, how¬
ever.
For those who want to

ridua1 income tax relief at the

time It affords tax relief v
business.
~
■-

this

Benson's heels.

a

philosophy
that
while farm
prices do fall and there is some
need for governmental assist¬
ance, the main problem of farm¬
ers is to adjust their production
to demand, improve their busi¬
ness
themselves, and to get
along with a minimum of Fed¬

and assuming some success with
a

While,
over

For 20 years

want to balance the budget first.

tures

inadequate

rent dogma that

mean

say

Agriculture Secretary
stand
against price

supports got considerable atten¬
tion as a result of his address in

dves the GOP this best propa¬

Stopping down

While
Benson's

Congressional Restiveness Is

from

Benson Is Firm

to try to run the tax cut race-

how¬

Congressmen,

of

Translation

cen-

joined the pack nipping at Mr.

—for

the Ways and Means Committee,

state

north

ever, it is noted that not a single
Republican in Congress respon¬
sible for farm legislation has

elsewhere in this issue.

pears

and

Democrats

trol

icy," by Ezra Taft Benson, Sec¬
retary of Agriculture, and ap¬

unions

want

6, N. Y.—$25.
Brazilian Exchange Regulations.

sumed office, to hold forth has¬

that if the tax is high
enough the resistance of man¬

Report, 75 West Street, New York

'extras'!"

—

the

It is entitled "General
Statement on Agricultural Pol¬

reading.

tily the official promise of tax
relief, would be to give the

not falling for that.

••;

"Of

from the big labor unions.

Democratic opposition the most
wonderful opening. The GOP is

■

Black Market Yearbook: 1953—

Franz Pick—Pic's World Currency

the first few weeks after it as¬

if

coincide with
views.)

own

r

procurement agencies to "re¬
price" all defense contracts, even
those let on competitive bids,
every 90 days, and with the fur¬
ther power of the government
to renegotiate and recapture un¬
due profits of any defense con¬
tractor. Both devices can wring

the GOP has
heen harping at the unbalanced
budgets of the Roosevelt-Tru¬
man era.: For two decades the
GOP has been asserting the
need for balancing the budget.
20

"Chronicle's"

alleged excess.

solete

tax raise of 1951.

For

and may or may not

the

present

for this purpose

time wipe out the
final personal income

same

second

re¬

from
First, there
are those who fuzzily think that
such a tax can "take the profit
out of war." The need for a tax
two

Profits Tax on June 30 and

at the

(This column is intended to

"Excess Profits Tax" comes

and sincerely toot his
the Ex¬

gun

if Mellon hadn't

—

pretation from the nation's Capital

Pressure for

horn for the bill to end
cess

nothing

working on a new form of
Profits Tax."

to the

xrsfonsibles have stated it, is
that the Federal budget shall
fcrl!* balanced first. After that, tax
reduction can come. All Uncle
Dan has done has been to jump

would;

they

for three months for next

just been taking care of his pals„
as the lefties put it.

tax arbitrarily
assumes that any income above
an average of certain base years
is "excess" and applies the tax

other

nice juicy in¬

a

when

rate

flect the "behind the scene" inter¬

The

President

and Bob Taft and all the

to

"Excess

cut

tax

was

brighter boys are

Some of the

about whether
bill will or
will not pass, will be bottled up,
etc., etc., has not changed one
lota the fundamental outlook for
or against tax relief.
Reed

lend

EPT

Seek New Form of

All the palaver

the

terest

unforeseen

will be in
May or June. But with a decent
break, it will be the Reed bill.

recent history.

Mellon

Mr.

that
offering his;
yelling

from

press

financial clients

contingencies. That

propaganda break in

Its biggest

this:

issue, this did not stop the leftwing

a

avoiding

have

fa fayy'.

■

balanced
luck they

promoting
and what

in

CM

.
mm

•

•

mm mrn^mjm

HUbbard 2-1990
*

'

Teletype
BS 69